The increasing requirements of Buy American standards create hidden compliance risks for enterprise manufacturers because they clash with actual operations of global supply chains. Organizations that use multi-tier international sourcing will face more risk from bid rejections and contract penalties and reputational harm because federal audits will intensify and domestic content standards will increase. The procurement requirement that used to function as a checkbox now operates as a critical business risk for organizations. The absence of complete country-of-origin information together with differing supplier certification standards and manual methods for measuring domestic content creates compliance risks for teams during federal assessments. Buy American compliance has developed into a financial issue which affects revenue forecasts and market access and future federal funding eligibility for CEOs and CFOs and regulatory executives.
