Bill Overview
Title: RAMP Act
Description: This bill provides for enhanced domestic content requirements in federal procurement. Specifically, the bill requires that more than 60% (currently, 55%) of the value of the components of products that the federal government purchases be made in the United States. Such requirement increases to 65% at the start of 2024 and 75% at the start of 2029. Such requirements shall not apply to manufactured articles that consist wholly or predominantly of iron, steel, or a combination of iron and steel. Additionally, the bill establishes price preferences for domestic goods that the federal government designates as critical to U.S. supply chains.
Sponsors: Sen. Kennedy, John [R-LA]
Target Audience
Population: People in the manufacturing industry related to Federal procurement
Estimated Size: 800000
- The bill affects manufacturing industries, especially those supplying products to the federal government.
- It increases the domestic content requirement from 55% to 60% immediately, impacting manufacturers and suppliers by potentially increasing demand for US-made components.
- Exclusions for iron and steel mean this sector in particular will be less impacted by the increased requirements.
- The impact extends throughout the supply chain, including raw material suppliers producing inputs for affected articles.
- The price preference for critical goods will specifically affect industries designated critical by the government.
- Workers within the affected manufacturing industries are a subset of the impacted group.
Reasoning
- The RAMP Act impacts manufacturers, particularly those supplying the federal government, by mandating an increase in domestic content. This boosts demand for US-made components and potentially creates jobs within affected industries.
- Excluding iron and steel from the requirement likely shields certain sectors from immediate impact, keeping costs lower for infrastructure projects heavily reliant on those materials.
- The policy encourages expansion in the supply chain for sectors deemed critical to national security, promoting advancement in domestic capabilities.
- A budget of $50,000,000 USD in year 1 suggests a limited scope initially, so immediate impacts will more likely be felt at large suppliers with existing federal ties than at small manufacturers or those not currently involved in federal contracts.
- Long-term impacts, fueled by an increased budget to $663,000,000 USD over 10 years, suggest the potential for broader changes and trend-shifting towards increased US manufacturing, potentially benefiting labor in areas presently experiencing lower demand.
Simulated Interviews
Automotive Parts Manufacturer (Detroit, MI)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- This policy might increase demand for our components, but it also requires us to find or produce more locally sourced parts, potentially at a higher cost.
- If successful, long-term contracts with the government could stabilize our business.
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 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Electronics Supply Chain Manager (San Jose, CA)
Age: 32 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- The new domestic content requirements will increase operational costs, but it also enhances national security in our supply chains.
- Management expects clearer market commitments and potential expansion.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 5 |
Steel Mill Worker (Pittsburgh, PA)
Age: 50 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- Since iron and steel aren't included, I don't see much immediate change for us.
- I hope this means other jobs might grow and stabilize employment beyond our industry.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Textile Manufacturer (Raleigh, NC)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- We might see an increase in orders; however, domestic sourcing of raw materials may be challenging due to price constraints.
- A role in future critical goods supply chains would be a significant business opportunity.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Aerospace Components Engineer (Huntsville, AL)
Age: 39 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- This policy supports our current strategy as we mostly use domestic suppliers. Critical goods preference might push us further to top suppliers in our field.
- Long-term, it increases competitiveness and innovation within US borders.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 10 | 7 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Government Procurement Analyst (Chicago, IL)
Age: 47 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 12/20
Statement of Opinion:
- I foresee more detailed work on compliance and guiding contractors through the policy changes.
- This might increase my workload initially but also positions me as a critical advisory piece for businesses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Software Developer (Austin, TX)
Age: 26 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- Indirect benefits as more manufacturers may need advanced software to comply with domestic content audits.
- It presents an opportunity for new features in our product offerings.
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 | 6 | 6 |
| Year 20 | 6 | 6 |
Retired Steel Worker (Springfield, MO)
Age: 60 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- I see this as a push for revitalizing manufacturing jobs; however, our sector's exclusion means these changes won't directly affect old colleagues.
- It's too late for me career-wise, but my children might benefit.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Industrial Designer (Cleveland, OH)
Age: 40 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 8.0 years
Commonness: 9/20
Statement of Opinion:
- Collaborating with more domestic suppliers could streamline project execution and product market alignment.
- May see tighter competition among those able to meet federal standards, raising the bar for quality.
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 | 9 | 7 |
| Year 10 | 9 | 6 |
| Year 20 | 8 | 5 |
Student - Manufacturing Engineering (Phoenix, AZ)
Age: 22 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 11/20
Statement of Opinion:
- As an aspiring engineer, this policy could offer more domestic career options and influence curriculum towards innovative manufacturing methods.
- I'm optimistic about future job prospects when these policies fully mature.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 7 | 5 |
Cost Estimates
Year 1: $50000000 (Low: $30000000, High: $70000000)
Year 2: $52000000 (Low: $31000000, High: $73000000)
Year 3: $54000000 (Low: $32000000, High: $76000000)
Year 5: $60000000 (Low: $36000000, High: $84000000)
Year 10: $90000000 (Low: $54000000, High: $126000000)
Year 100: $120000000 (Low: $72000000, High: $168000000)
Key Considerations
- Transitioning to a higher domestic content requirement could raise costs immediately as manufacturers adjust supply chains, but it may foster long-term domestic production advantages.
- Ensuring effective enforcement and verification of domestic content could be resource-intensive and costly.
- Exemptions for iron and steel lessen immediate burdens but could distort industry competitiveness among different sectors.