When Should Domestic Manufacturers Be Given Preference?

NIH encourages grant recipients to give preference to domestic manufacturers when purchasing goods and services.

Grant recipients may acquire a variety of goods or services in connection with a grant-supported project. Recipients should, when allowed by law and practical for their NIH-funded project, give preference to the purchase, acquisition, or use of goods, products, and materials produced in the U.S. These purchases can range from routine goods and services to those involving substantive programmatic work. These requirements must be included in all subawards, contracts, and purchase orders for work or products under the award (see 2 CFR 200.322). For additional information, see the NIH Grants Policy Statement section on Procurement System Standards and Requirements.

Organizations receiving Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) awards are generally subject to the same public policy requirements. Consistent with Small Business Administration program policy directives, the small business concern should purchase American-made items whenever possible (see this section of the NIH Grants Policy Statement).

We also require recipients to comply fully with the U.S. industry preference requirements of the Bayh-Dole Act (see this section of the NIH Grants Policy Statement). The Bayh-Dole Act gives ownership of any invention developed or advanced to commercial use with federal funding to the institution that received the funding. However, the law also requires that any product based on a federally funded invention be manufactured substantially in the U.S.