US Code

Public Law 119-87 (04/30/2026)

49 U.S.C. § 50103

Contract preference for domestic firms

(a)

Definitions .—

In this section—
(1)
“domestic firm” means a business entity incorporated, and conducting business, in the United States.
(2)
“foreign firm” means a business entity not described in clause (1) of this subsection.
(b)

Preference .—

Subject to subsections (c) and (d) of this section, the Administrator of the Federal Aviation Administration may make, with a domestic firm, a contract related to a grant made under section 44511, 44512, or 44513 of this title that, under competitive procedures, would be made with a foreign firm, if—
(1)
the Administrator decides, and the Secretary of Commerce and the United States Trade Representative concur, that the public interest requires making the contract with the domestic firm, considering United States international obligations and trade relations;
(2)
the difference between the bids submitted by the foreign firm and the domestic firm is not more than 6 percent;
(3)
the final product of the domestic firm will be assembled completely in the United States; and
(4)
at least 51 percent of the final product of the domestic firm will be produced in the United States.
(c)

Nonapplication .—

Subsection (b) of this section does not apply if—
(1)
compelling national security considerations require that subsection (b) of this section not apply; or
(2)
section 3501(4) of title 19 the Trade Representative decides that making the contract would violate the multilateral trade agreements (as defined in ) or an international agreement to which the United States is a party.
(d)

Application to Certain Grants .—

This section applies only to a contract related to a grant made under section 44511, 44512, or 44513 of this title for which—
(1)
an amount is authorized by section 48102(a), (b), or (d) of this title to be made available for the fiscal years ending , and ; and
(2)
a solicitation for bid is issued after .
(e)

Report .—

The Administrator shall submit a report to Congress on—
(1)
contracts to which this section applies that are made with foreign firms in the fiscal years ending , and ;
(2)
section 3501(4) of title 19 the number of contracts that meet the requirements of subsection (b) of this section, but that the Trade Representative decides would violate the multilateral trade agreements (as defined in ) or an international agreement to which the United States is a party; and
(3)
the number of contracts made under this section.

Pub. L. 103–272, § 1(e)108 Stat. 1298 Pub. L. 104–287, § 5(88)(D)110 Stat. 3398 Pub. L. 106–36, title I, § 1002(i)113 Stat. 134 (, , , § 49103; renumbered § 50103, , , ; amended , , .)

Historical and Revision Notes

Revised

Section

Source (U.S. Code)

Source (Statutes at Large)

49103(a)

49 App.:2226d(e).

Nov. 5, 1990, Pub. L. 101–508, § 9207, 104 Stat. 1388–375.

49103(b)

49 App.:2226d(a).

49103(c)

49 App.:2226d(b).

49103(d)

49 App.:2226d(c).

49103(e)

49 App.:2226d(d).

In subsection (a), the text of 49 App.:2226d(e)(1) is omitted because the complete name of the Administrator of the Federal Aviation Administration is used the first time the term appears in a section.

In subsection (b), before clause (1), the words “Subject to subsections (c) and (d) of this section” are added to alert the reader to the limitations in those subsections. In clause (1), the words “requires making the contract with the domestic firm” are substituted for “so requires” for clarity. The words “considering United States international obligations and trade relations” are substituted for “In determining under this subsection whether the public interest so requires, the Administrator shall take into account United States international obligations and trade relations” to eliminate unnecessary words. In clause (4), the words “when completely assembled” are omitted as surplus. The words “produced in the United States” are substituted for “domestically produced” for consistency with clause (3).

In subsection (c), the words “(1) such applicability would not be in the public interest” are omitted as redundant to subsection (b)(1) of the revised section.

In subsection (e)(1), the words “foreign firms” are substituted for “foreign entities” for consistency in the revised section.

Subsection (e)(3) is substituted for “the number of contracts covered under this subtitle (including the amendments made by this subtitle) and awarded based upon the parameters of this section” to eliminate unnecessary words.

Editorial Notes

Amendments

Pub. L. 106–36section 3501(4) of title 191999—Subsecs. (c)(2), (e)(2). substituted “multilateral trade agreements (as defined in )” for “General Agreement on Tariffs and Trade”.

Pub. L. 104–287section 49103 of this title1996— renumbered as this section.