Buy American Act of 1987

(Reported to House from the Committee on Government Operations with amendment, H. Rept. 100-50 (Part I))

Buy American Act of 1987 - Amends the Buy American Act to prohibit a Federal agency from awarding a contract for the procurement of materials mined or produced in a foreign country whose government discriminates in awarding such contracts against U.S. products or services. Provides that such prohibition shall not apply: (1) if the materials have been assembled or manufactured in the United States and a substantial portion of the cost of such materials is allocable to materials mined or produced in the United States or to labor performed in the United States; and (2) to a country that is a signatory of the Agreement on Government Procurement (Agreement) and is not subject to a presidential waiver revocation under the Trade Agreements Act of 1979, or is not a signatory of such Agreement but is a least developed country.

Allows the President or the head of an agency to award a contract for the procurement of materials mined or produced in a foreign country to which such prohibition applies if the President or the head of an agency: (1) determines that such action is necessary in the public interest or to avoid the monopolistic restriction of competition; and (2) notifies the Congress of such determination. Provides that the authority of an agency to award a contract for the procurement of materials or services shall not apply to procurements subject to memorandums of understanding entered into by the Department of Defense and a representative of a foreign country. Requires determinations and notice with respect to such procurements to be made by the President or, if delegated, by the United States Trade Representative (USTR). Prohibits the denial of the award of a contract when such denial would limit the procurement of goods or would establish preference for the products or services of a single U.S. manufacturer.

Amends the Trade Agreements Act of 1979 to require the President, by no later than December 31, 1988, and annually thereafter, to submit to the Congress a report on the extent to which foreign countries, whose products are acquired by the Government, discriminate against U.S. products or services in making Government procurements. Requires the President, in such report, to: (1) certify the signatories to the Agreement which are not in compliance with such Agreement; (2) certify other countries which discriminate in awarding contracts against U.S. products or services; (3) take into account the relative impact of noncompliance with the Agreement or other discrimination by nonsignatories on U.S. commerce and the extent to which such noncompliance or discrimination has impeded the ability of U.S. suppliers to participate in procurements covered by the Agreement; and (4) include an analysis of the impact of presidential waiver revocations and procurement limitations on Government procurement costs.

Directs the President to initiate, within 60 days, consultations in accordance with the Agreement's dispute settlement procedures to correct problems with those signatories to the Agreement certified in the annual report as not meeting the obligations of such Agreement. Provides for the revocation of the waiver of discriminatory purchasing requirements for those countries considered not in good standing with the Agreement where a dispute settlement procedure is not concluded within one year, with certain exceptions. Requires the President to take no action to limit Government procurement from the other participant in such procedures if, before the end of the year following the initiation of such procedures: (1) such participant eliminates the discrimination to the satisfaction of the President or takes the action recommended as a result of the procedures to the satisfaction of the President; or (2) the procedures result in a determination requiring no action by the other participant to the procedures. Authorizes the President to reinstate a revoked waiver of discriminatory purchasing requirements if such conditions are satisfied.

Requires the President, if he determines that a certification of discrimination by a foreign country which is not a signatory to the Agreement and is not a least developed country would harm the U.S. public interest, to certify such country as discriminatory and to take such actions to impose appropriate limitations on Government procurements of products, services, and suppliers of such country.

Prohibits the President from taking action that would limit the procurement to, or would establish a preference for, the products or services of a single supplier.

Directs the President to instruct the USTR, in conducting renegotiations of the Agreement, to seek improvements in the Agreement that will secure full and open competition in the award of procurement contracts. Requires the President to submit to the Congress a report on actions taken with respect to the annual report and dispute settlement procedures under this Act.