Foreign Source Procurement Funded Through Federal Programs by States and Organizations

GAO was asked to report on foreign-source procurement in six selected Federal grant and loan assistance programs. GAO reviewed: (1) Federal and State domestic preference legislation; and (2) foreign-source procurement in Federal assistance programs involving highways, municipal wastewater treatment, airports, urban mass transportation, railroads, rural electrification, and local public works.

GAO found that, at the Federal level, few changes have been made in Buy American legislation since the last GAO report; at the State level, five more States have enacted domestic preference for certain programs. In its review of foreign-source procurement by State and organizations for six of the identified programs, GAO found that the amount of foreign-source procurement identified was small compared with total funds expended. Domestic sourcing does not appear to have lost ground and may have gained some from foreign competition. Clearly, Federal and State domestic preference legislation contributed to this result.