Applicability of Buy American Act to Bureau of Mint Purchases

The Bureau of the Mint has been authorized to produce coinage for foreign countries for over a century, charging the contracting nation only for the cost of the metal, labor, and use of equipment. The Mint usually competes with the mints of other countries and with private mints for these contracts. Mint equipment and personnel are assigned to foreign coinage projects during slack periods in domestic coin demand, reducing idleness of machinery and increasing cost effectiveness. In June 1978, after competitive bidding, the Mint was awarded a coinage contract by the Central Bank of the Dominican Republic, agreeing to buy the necessary metal (nickel) at the best market price and bill the Dominican Republic at cost. Accordingly, the Mint issued an invitation for bids to purchase 38,000 pounds of nickel. During the procurement, AMAX Nickel, Inc. questioned the Mint as to the application of the Buy American preference for domestic over foreign suppliers. The Mint then canceled the bid invitation pending resolution of the question. Since such purchases are not for public use under the terms of the Buy American Act, the Mint is not bound by the Act in contracting for foreign coinage and may consider domestic and foreign bids equally.