The New Buy US Rule Could Benefit Small Businesses

Wouldn’t you like to land a government contract? You know, a nice order from the Federal General Service or the Department of Defense?

The Feds have changed a rule in the procurement process that could also apply to small businesses.

The Biden Administration’s New Buy US Rule

The Buy American rule guideline has been changed. Under the previous federal procurement guideline, 55% of the components used to make a product had to be made in the US.

Now that has changed. Under the new rule, 75% of the components used to make a product must be made in the US.

How can you contract to sell your product in this way? First, you need to register, because government agencies search a database of registered companies when they need to find a product.

In other words, you will not find these contracts. They will find you. And they won’t find you unless you take the steps to register.

How to Register for the Buy US Rule

Certification for an approved business comes through the Small Business Administration, as required by federal acquisition regulations.

In fact, the SBA has a federal contract division to help small businesses “access federal contracts, financing, and business development.

To learn more about that division, start with the federal contract division of the Small Business Administration. From that page, you can choose the tabs best suited to the specific information you need for your small business.

The SBA’s Federal Contracts Department page is a source of information, such as details on regulations to follow.

Ready to get your foot in the door? There are only 5 steps, and they are relatively easy. Once you complete these steps, you will be eligible for an SBA certification that your business is approved under federal takeover regulations.

All steps are about your time, not your money. All you need to take these steps is access to the Internet. To be in with a chance of winning a federal contract, here are the steps to take:

Provide your correct registration and identification numbers. You need a UEI (Unique Entity Identifier) ​​number. You can get that by registering with SAM (System for Award Management) on You will need NAICS (North American Industry Classification System) numbers. You need to match your product to existing classifications and numbers. You can find them at Meet Small Business Standards. There are sizing standards that are unique to each NAICS code. In general, small businesses meet the size standard if they have 500 or fewer employees and annual sales of less than $7.5 million. Register with SAM (System for Award Management). You complete the registration by entering the products you create that meet the 75% requirement. Government agencies use the SAM database to find products. Maintain compliance with small business standards. If anything changes in your number of employees or earnings, you should exit the program. Comply with cybersecurity requirements. Individual contracts have different requirements for the level of cybersecurity the seller must have. It is called the Cybersecurity Maturity Model Certification (CMMC) level.

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