US President I signed an administrative order on January 26, 2021, requiring federal government agencies to increase their efforts to increase procurement for manufacturing products in the United States. This administrative order reflects the policies of the Biden government, namely federal financial assistance rewards and procurement should maximize the use of goods, products and materials and materials from the United States.
The administrative order indicates a federal agency to review actions; considering suspending, modification, and revoke institutional behaviors that do not meet policies; and put forward any changes required to implement the policy. In addition, the administrative order has also developed procedures for updating the application for “buying US goods” policy exemption, including the establishment of “American Manufacturing Office” under the management and budget office (OMB).
This command also requires an increase in transparency of the application for exemption, including creating a public website to post all exemption requests. Biden said in the speech, which is to ensure that if the US supplier thinks yourself, it should know that the exemption requirements and suggestions.
The command also requires that if it is possible, if it is exempted for cost advantage, the agency should evaluate whether the cost advantage is due to the use of dumping steel or related finished products.
Biden also made some other efforts to support the previous “American Manufacturing Act”, and revoke some administrative orders related to infrastructure and US postal services, and those relax procurement restrictions and make Exemption for administrative orders that are easier to get.
Although the administrative order does not specify the goal of federal government procurement electric vehicles. However, in a statement announced the administrative order, Biden talked about the policy of electric vehicles.
Biden said in the statement: “The federal government has a large-scale team, we will use the clean electric vehicles manufactured by American workers in the United States to create these vehicles, which will create 1 million in the universal cleaning energy and zero emissions. employment position.
Overall, this will be mobilized by the largest public investment in procurement, infrastructure and research and development since World War II. “Biden also said that he will block the vulnerability of the existing” purchase of American goods “; he added, currently on the federal government’s purchase of at least 50% of the parts of the native manufacturing requires too low, and It is pointed out that the current measurement method does not evaluate the impact.
His goal is to change the measurement method to reflect the contribution of each component to the US economy, should be “measured in the United States to measure how much employment positions.” Although Biden said that 50% of the requirements were too low, there was no clear new requirements in his statement and the publication of administrative orders.
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Although this administrative order has a policy and direction, it may have an impact on the procurement decisions of the federal government level, but it does not have a detailed and clear request, nor does it indicate how the rules given the exemption will change. Biden did not turn to the government team to the electric vehicle to set any specific timetable. An obstacle to fast replacement electric cars is that some models in the current federal government team have no mature electric models to replace.
In 2015, former US President Barak Obama signed an administrative ordered, requiring at least 50% of the federal team to zero emissions by 2025. According to the 2019 Federal Team Report, as of the end of 2019, the federal government only has 3,215 electric vehicles, 1,260 plug-in mixing cars (PHEV) and 25,738 gasoline hybrid cars, indicating that the administrative orders signed by Obama in 2015 did not actually any progress. This is to a certain extent due to the lack of mature electric models to meet the requirements of administrative orders, and this is still a problem. As electric vehicles enter more segmented markets at different prices, this issue may be resolved, but progress will not be very fast. In government reports, about 38% of government passenger cars are light or medium-sized sports versions (SUV).