Insights

DOD Rule Change: DOD to Require American-Made Solar Devices in Contracts

As of Tuesday, December 20, 2011, pursuant to an interim rule, the Department of Defense ("DOD") now requires that certain photovoltaic devices be American-made and comply with the provisions of the Buy American Act. Contracts subject to this restriction include energy savings performance contracts, utility service contracts, and private housing contracts that will result in the photovoltaic devices ultimately being owned by the DOD or being installed on a DOD property/facility and reserved for the exclusive use of the DOD for the full economic life of the device. The interim rule provides exceptions for: (1) devices made in qualifying countries or countries covered under free trade agreements; (2) devices valued at less than $203,000, as long as the cost of the domestic device exceeds the cost of the foreign device by 50 percent; and (3) devices provided under contracts below the simplified acquisition threshold (subject to further evaluation by the DOD). There is no exception for commercial items contracts.

This rule affects contractors and subcontractors that provide photovoltaic devices and could especially affect small business. Comments on the DOD's interim rule may be submitted through February 21, 2012, at which point the DOD will begin finalizing the rule.

Lawyer Contacts

For further information regarding compliance with the new DOD restrictions, please contact your principal Firm representative or one of the lawyers listed below. General email messages may be sent using our "Contact Us" form, which can be found at www.jonesday.com.

Peter F. Garvin III
Washington
+1.202.879.5436
pgarvin@jonesday.com

Grant H. Willis
Washington
+1.202.879.3847
ghwillis@jonesday.com

Jones Day publications should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information purposes only and may not be quoted or referred to in any other publication or proceeding without the prior written consent of the Firm, to be given or withheld at our discretion. To request reprint permission for any of our publications, please use our "Contact Us" form, which can be found on our web site at www.jonesday.com. The mailing of this publication is not intended to create, and receipt of it does not constitute, an attorney-client relationship. The views set forth herein are the personal views of the authors and do not necessarily reflect those of the Firm.

We use cookies to deliver our online services. Details of the cookies and other tracking technologies we use and instructions on how to disable them are set out in our Cookies Policy. By using this website you consent to our use of cookies.