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9/25/2018Talk AboutBuy AmericaMegan Hall and Susan WimberlyFHWA Washington Division1

9/25/2018Buy America v. Buy AmericanRequirementBuy AmericaStatute/Regulation23 USC 31323 CFR 635.41041 USCBuy American10a-10d48 CFR 25ApplicabilityCoverageThresholdAll projects fundedunder Title 23ManufacturingNoneprocess for steelNAFTA and otherand ironinternational tradematerials,agreements haveapplication of ano effectcoatingDirect FederalProcurementAll constructionmaterials withexceptionsThresholdsidentified inNAFTA and othertrade agreementsBuy America Requirements Buy America requires the use ofdomestic steel and iron materialspermanently incorporated inFederal-aid projects.2

9/25/2018San Francisco-Oakland Bay Bridge”The “Poster-Child for Buy America Issues2012 - “The Mother of MAP-21 Section 1518”NEPA Defines Buy America The scope of the NEPA Document defines yourproject. Buy America applies to all contracts eligible forassistance under title 23 within the scope ofNEPA document– If a dollar of federal-aid expended on any phaseor contract then Buy America applies to allcontracts under that NEPA document,regardless of funding source.3

9/25/2018Buy America Requirements Utilities (Where and When Buy America Applies)Items in the FHWA Buy America Memo 2012Manufactured ProductsExamples of items that need to meet BuyAmerica Required DocumentationBuy America and Utilities4

9/25/2018Buy America and Utilities Applies to:– Utility relocation work incorporated into a federally fundedconstruction contract and– Stand alone federally funded utility relocation work All materials must meet Buy America. Cannot make materials non-participating. Cannot make component plans locally funded tocircumvent Buy America. Cannot donate foreign steel materials.Buy America and Utilities Franchise (BA does not apply)– Not eligible for reimbursement– It’s the utilities responsibility to move Non Franchise (BA does apply)– Eligible5

9/25/2018Buy America Requirements All manufacturing processes musttake place domestically. Any process which modifies thechemical content, the physical size orshape, or the final finish isconsidered a manufacturing process. Manufacturing processes includerolling, extruding, machining,bending, grinding, drilling andcoating.Manufactured ProductsBuy America covers manufactured products thatare predominantly steel or iron products.Stand-alone Products Steel rebar Structural steelComposite Products Bridge bearings Signal heads and controllers Precast concrete items6

9/25/2018Rescinded 2012 Memo FHWA Buy America Memo 2012 Manufactured products that are not steel oriron (total iron and steel content 90% byweight) Miscellaneous steel or iron components,subcomponents, and hardware necessary toencase, assemble, and construct steelcomponentsExamples of Items that Need to Meet BASteel or iron products used in pavements, bridges, tunnels orother structures, which include, but are not limited to, thefollowing: fabricated structural steel, reinforcing steel, piling, highstrength bolts, anchor bolts, dowel bars, permanentlyincorporated sheet piling, bridge bearings, cable wire/strand,pre-stressingI post tensioning wire, motor/machinery brakesand other equipment for moveable structures; guardrail, guardrail posts, end sections, terminals, cableguardrail; steel fencing material, fence posts;7

9/25/2018Examples of Items that Need to Meet BA steel or iron pipe, conduit, grates, manholecovers, risers; mast arms, poles, standards, trusses, orsupporting structural members for signs,luminaires, or traffic control systems; steel or iron components of precast concreteproducts, such as reinforcing steel, wire meshand pre-stressing or post-tensioning strands orcables.Made in America?8

9/25/2018Made in America?Does this meet Buy America?9

9/25/2018What you should be looking forBuy America Compliance Steel mill testreport fromMoscowD’oh!10

9/25/2018Not Buy America DocumentationMaterials Certification Process Contractor should submit documentationwith origin of all the materials/productscovered by Buy America to the OwnerAgency prior to payment for the item(s), orinstallation.11

9/25/2018Very Few Foreign Steel Exceptions Minimal useTemporary useAlternate bid proceduresBuy America waiversMinimal Use The cost of foreign steel/iron materials used can notexceed one-tenth of one percent (0.1 percent) of thetotal contract cost (including change orders) or 2,500whichever is greater. The cost is based on the value of the steel and ironproducts as they are delivered to the project. In composite products it applies to cost of the steeland iron components.12

9/25/2018Temporary Use Foreign steel/iron is used on a temporary basis, butnot permanently installed, e.g. temporary detourbridges, temporary falsework. Temporary use means that the it must be removed. Permanent incorporation includes items that areimpractical and impossible to remove.Alternate Bidding Procedures The total project is bid with two alternatives; one which isbased on domestic source steel/iron materials, and onewhich is based on foreign source steel/iron materials. All bidders must submit a bid for each alternative. The use of foreign steel/iron is justified only if the lowesttotal bid for the entire project with domestic steel/ironmaterials is at lease 25 percent more than the lowesttotal bid with foreign steel/iron materials.13

9/25/2018Buy America Waivers An agency must prove that furnishing domesticsteel/iron materials and products would beinconsistent with the public interest. Must prove sufficient quantities of quality domesticsteel/iron materials and products are not available. FHWA strongly recommends that agencies considerre-design with domestic products to avoid the lengthywaiver process.Which ones need to complywith Buy America14

9/25/2018Must Comply with Buy AmericaSuccessful Practices LPAs should consider Buy America duringpreliminary engineering phase to avoid delaysduring construction, and explore the use ofalternate domestic products. Review of the material certification procedurescurrently in place to ensure compliance.15

9/25/2018Successful Practices Develop a list of materials that need to meet anddon’t need to meet Buy America Use a standardized form contractors need tosubmit with BA documentation. Use a Buy America field guide for inspectionpersonnel, material testers, and lab staff.Consequences Remove any foreign iron and steelproducts and replace with domestic ironand steel products.– Otherwise, the entire project will be classifiedas non-compliant and costs for the entireproject will become ineligible.16

9/25/2018Buy America Resources fm FHWA Buy America Web Site covering laws,regulations, policies, guidance, general information,training and archives. FHWA's Buy America Q and A for Federal-aidProgram Page 86 Contract Admin. Core Curriculum ManualTop Ten Take Aways Whose Buy America?Buy America Starts with NEPABuy America Applies to Utility RelocationWaivers Don’t Exist - Need to Re-designMinimal Use of Foreign SteelAlternate Bid ProceduresTemporary versus PermanentConsequence for Being Out of Compliance with BADocument, Document, t/buyam.cfm17

9/25/2018Questions?Buy America Contacts:WSDOT Region Local Programs EngineerHELP WANTED!Please take a few minutes to use theevaluation form on the mobile app andprovide your feedback on this session!Evaluations help us select sessions forfuture conferences and provide valuablefeedback for conference planners &speakers.Thank you!18

Talk About Buy America Megan Hall and Susan Wimberly FHWA Washington Division. 9/25/2018 2 Buy America v. Buy American Requirement Statute/ Regulation Applicability Coverage Threshold Buy America 23 USC 313 23 CFR 635.410 All projects funded under Title 23 Manufacturing process for steel and iron materials,