(1) The Congress had high expectations for
commercial benefits from the Government Procure-
ment Code (in this section referred to as the
‘‘Code’’) enacted as part of the Trade Agreements
Act 
of 
1979, 
with 
a 
potential 
opening 
of
$20,000,000,000 to $25,000,000,000 in trade op-
portunities for United States export sales to foreign
government procurement entities.
(2) According to the Comptroller General of the
United States, in each year since implementation of
the Code on January 1, 1981, the United States has
spent approximately $18,000,000,000 in foreign
source procurement while in each such year United
States suppliers took in only $4,000,000,000 from
sales to overseas governments, for a total imbalance
in each such year of an estimated $14,000,000,000.
(3) Federal Government agencies have con-
firmed that—
(A) the Code has had less overall commer-
cial value than originally anticipated; and
(B) of the markets opened, the benefits
were disproportionately in favor of foreign sup-
pliers.
(4) The Congress has concerns about—
(A) inadequate monitoring of foreign gov-
ernment compliance with the Code;
(B) inadequate efforts to enforce the rights
of the United States;
(C) the lack of United States Government
assistance to firms wishing to take advantage of
opened markets; and
(D) the continued lack of progress to open
foreign markets.
(5) The United States economy over the past
months has been in a condition of relative instabil-
ity, with negative growth resulting in lost jobs and
lost sales for both small and large businesses.
(6) After 13 years of limited opportunities for
United States companies overseas under the Code,
the time has come to address the matter of imbal-
ance with respect to the government procurement
practices of the United States’ trading partners and
to refocus United States Federal procurement policy
during this period of economic adjustment, in order
to enhance opportunities for small businesses and
areas of high unemployment.
(7) The use of United States Federal procure-
ment dollars to assist small businesses and preserve
the jobs of workers who traditionally have the fewest
resources to withstand economic recession is a sound
practice and policy for the Government.
(8) The policy established by this Act will serve
to reduce the imbalance in government purchases
and thereby put domestic companies on an equitable
basis and help alleviate the United States balance of
payments problem.
(b) PURPOSE.—The purpose of this Act is to promote
fairness in Federal procurement by creating greater access
to Federal procurement funds for small businesses and
areas of high unemployment during economic downturns.
SEC. 3. REQUIREMENT THAT FEDERAL AGENCIES IN-
CREASE DOMESTIC PROCUREMENT AND PRO-
CUREMENT 
FROM 
SMALL-BUSINESS 
CON-
CERNS DURING ECONOMIC RECESSIONS.
(a) IN GENERAL.—Title III of the Act of March 3,
1933, commonly known as the Buy American Act (41
U.S.C. 10a–10c), is amended—
(1) by redesignating sections 5 and 6 as sec-
tions 6 and 7, respectively; and
(2) by inserting after section 4 the following
new section:
‘‘SEC. 5. REQUIREMENT THAT FEDERAL AGENCIES IN-
CREASE DOMESTIC PROCUREMENT AND PRO-
CUREMENT 
FROM 
SMALL-BUSINESS 
CON-
CERNS DURING ECONOMIC RECESSIONS.
‘‘(a) GENERAL REQUIREMENT.—(1) Subject to para-
graph (2), upon the 1st occurrence after the date of the
enactment of the Fairness in Federal Purchases Act of
1993 of the notification described in subsection (b)(1), the
following requirements shall take effect:
‘‘(A) Each head of a Federal agency shall de-
termine the amount of any difference between—
‘‘(i) the amount such agency spent on pro-
curement of goods and services from foreign
government sources during the preceding fiscal
year; and
‘‘(ii) the amount such foreign governments
spent on procurement of similar goods and
services from domestic sources during the pre-
ceding fiscal year, and
if the amount described in clause (i) exceeds the
amount described in clause (ii), shall decrease the
amount such agency spends on procurement from
foreign government sources and increase the amount
such agency spends on procurement from domestic
sources in order to eliminate the disparity between
the amount spent on procurement from foreign gov-
ernment sources and the amount spent on procure-
ment from domestic sources.
‘‘(B) Each head of a Federal agency shall de-
termine whether the amount such agency spent on
procurement of goods and services from small-busi-
ness concerns during the preceding fiscal year was
less than 35 percent of the total amount such agen-
cy spent on procurement of goods and services, and
if necessary, shall increase the amount such agency
spends on procurement of goods and services from
small-business concerns so that such amount equals
or exceeds 35 percent of such total amount.
‘‘(C) In the case of any procurement contract,
the offered price of a domestic end product shall be
considered unreasonable only if the lowest acceptable
domestic offer exceeds the lowest acceptable foreign
offer, inclusive of duty—
‘‘(i) by more than 6 percent, in the case of
a domestic offer from a large business that is
not a labor surplus area concern; or
‘‘(ii) by more than 15 percent, in the case
of a domestic offer from a small-business con-
cern or from a labor surplus area concern.
‘‘(2)(A) Except as provided in subparagraph (B), the
requirements of paragraph (1) shall cease to apply upon
the expiration of the 36-month period beginning on the
date that the notification described in subsection (b)(1)
occurs.
‘‘(B) The requirements of paragraph (1) shall cease
to apply upon the expiration of any of the following peri-
ods if during such period both the notifications described
in subsection (b)(2) occur:
‘‘(i) The 18-month period beginning on the date
that the publication described in subsection (b)(1)
occurs.
‘‘(ii) The 6-month period following the 18-
month period described in clause (i).
‘‘(iii) The 6-month period following the 6-month
period described in clause (ii).
‘‘(3) The Administrator for Federal Procurement
Policy shall provide to each head of a Federal agency the
information necessary to carry out paragraphs (1) and
(2).
‘‘(b) NOTIFICATION.—(1) The notification described
in this paragraph is either—
‘‘(A) the publication in the Federal Register by
the Secretary of Labor of an unemployment rate
equal to or in excess of 5 percent for the preceding
fiscal year quarter; or