Bill Overview
Title: Domestic Preferences for Building America Act
Description: This bill prioritizes U.S. contractors with respect to certain federally funded infrastructure projects. Specifically, amounts made available through a program for federal financial assistance may be obligated for an infrastructure project with a value of $100 million or more only if the recipient of such amounts certifies that, in obligating the amounts subject to the occurrence of adequate competition, the recipient shall award contracts only to U.S. persons and qualified U.S. joint ventures; and the recipient shall not award contracts to an entity that is owned or controlled by a corporation based in a country that has been identified as a nonmarket economy country, was included by the U.S. Trade Representative (USTR) on the priority watch list, and is subject to certain monitoring by the USTR.
Sponsors: Rep. Nehls, Troy E. [R-TX-22]
Target Audience
Population: People working in the construction and infrastructure sectors
Estimated Size: 950000
- The bill affects entities involved in federally funded infrastructure projects valued at $100 million or more.
- The primary requirement is that contracts should be awarded to U.S. persons or qualified U.S. joint ventures, affecting those entities eligible to bid.
- The stipulation against awarding contracts to entities based in nonmarket economy countries or those on the USTR priority watch list affects foreign entities and their U.S.-based subsidiaries.
- By prioritizing U.S. contractors, the bill can impact the job market within the construction and infrastructure industries, potentially increasing employment opportunities for U.S. workers.
Reasoning
- The policy primarily affects those directly involved in bidding for federal infrastructure contracts, particularly large-scale projects of $100 million or more.
- It prioritizes U.S. contractors, which can lead to increased domestic employment opportunities in the construction and infrastructure sectors.
- By excluding nonmarket economy entities and those on the USTR watch list from bidding, the policy may stabilize or increase project costs due to reduced competition.
- Indirectly, workers employed by infrastructure firms, support staff, and local economies around such projects may experience job security or new job openings.
- A range of perspectives should include large and small contractors, supporting occupations (e.g., engineers, laborers), potential indirect beneficiaries (e.g., local businesses), and those not impacted such as companies focusing on projects under $100 million.
Simulated Interviews
Project Manager at a Construction Firm (San Francisco, CA)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- This policy is a great opportunity for us to secure more contracts and ensure job stability for our team.
- It’ll likely lead to projects staying in the U.S., creating more jobs locally.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 6 |
Structural Engineer (Pittsburgh, PA)
Age: 32 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 12/20
Statement of Opinion:
- This act could secure more consistent projects for us, although I worry about potential cost increases due to less competition.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Welder (Dallas, TX)
Age: 29 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- More jobs mean more work for us, but I hope wages don’t get stalled or decreased due to high competition among workers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
CEO of a Construction Tech Startup (New York, NY)
Age: 40 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- Our innovation ties well with this push for domestic solutions, providing a growth opportunity if domestic preference fosters collaborations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Owner of a Small Construction Company (Los Angeles, CA)
Age: 55 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 14/20
Statement of Opinion:
- This policy doesn’t affect my work directly, but it might give bigger companies more incentive to stick to high-value federal projects, leaving smaller ones for us.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 6 |
City Planner (Miami, FL)
Age: 38 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- Prioritizing domestic firms might align with plans to enhance local businesses, adding diversified value to our projects.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 6 |
Import-Export Analyst at an International Company (Chicago, IL)
Age: 30 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 13/20
Statement of Opinion:
- It could slow down some supply chains but also push for more domestic sourcing. This policy might mean job shifts rather than job losses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Environmental Engineer (Houston, TX)
Age: 42 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- The focus might shift to include more green-friendly projects if domestic firms have the motivation to innovate sustainability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Material Supplier (Detroit, MI)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 7/20
Statement of Opinion:
- Higher demand for U.S. contractors means higher demand for local materials. It’s a potential boost for business.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 5 |
Retired Former Construction Worker (Seattle, WA)
Age: 60 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- I see potential for good here, but it must be measured. If higher costs transfer to consumers or reduce project quality, that's a concern.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $500000000 (Low: $400000000, High: $600000000)
Year 2: $525000000 (Low: $420000000, High: $630000000)
Year 3: $551250000 (Low: $441000000, High: $661500000)
Year 5: $605640625 (Low: $484512500, High: $726768750)
Year 10: $769687500 (Low: $615750000, High: $923625000)
Year 100: $1443353763 (Low: $1154683011, High: $1732024515)
Key Considerations
- Potential trade ramifications with countries identified as nonmarket economies could impact international relations and trade agreements.
- The requirement could drive innovation in U.S. construction technology due to increased demand for domestic capability.
- Impact on project costs might vary significantly based on geographic location and availability of domestic resources.