National Association of Government Contractors

Buy American, Hire American Will Require Changes

During a ceremony held in Wisconsin this past week, President Trump signed yet another executive order, this one entitled, “Buy American and Hire American.”

While it remains unclear what the order may mean for contractors, there has been extensive conjecture on the subject.

The “Hire American” portion of the President’s latest Executive Order is focused on revamping the H1-B visa program.  For contractors this will impact the pool of employees for contractors who rely on the program to help meet their staffing needs.  As a result, the executive order could possibly necessitate a change to recruiting strategies for contractors.

Some are concerned that the EO will create additional headaches for federal contractors, increasing compliance costs, potentially restricting their choice of suppliers, and likely leading to increased bid protests and False Claims Act disputes. 

As we wait for further word on the enactment of the order, contractors are advised to prepare for changes in their hiring and staffing practices, as well as examine possible supply chain alternatives.

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