As you should be fully aware MDOT implemented a new Special Provision for Buy America in all FHWA federally funded projects starting with those in the February 2012 bid lettings. Although the “Buy America” regulations have not changed, the product coverage and level of certification the new Special Provision requires are drastic and significant changes from past years practices.
The Buy America regulations require that 100% of the steel and iron products permanently incorporated in the work be from domestic sources and that all of the manufacturing processes for the product take place in the United States. This regulation does however, allow a minor amount of non-domestic steel and iron in the project at a total cumulative maximum value of 0.10% of the project cost or $2,500, whichever is greater.
Conversely there are Buy American (with an “n”) regulations used by many other federal agencies on their projects that require only 60% of the steel and iron products incorporated in the work be from domestic sources.
To be clear, all federally funded projects let through MDOT are under the Buy America regulations and provisions as described above.
Since first learning about the pending changes and new certification requirements being incorporated in the new Special Provision for Buy America, MITA has been aggressively engaged with the FHWA and MDOT leadership pressing hard for answers and resolutions to several industry concerns that include clarification of the “step certification” requirement, and identification of the specific steel and iron products included under the provision.
Currently there are no specific waivers for steel and iron products that would be exempt from the Buy America provision, all steel and iron products permanently incorporated in the work are included, and must have the appropriate certification. This includes steel and iron products not historically certified like reinforcement tie wire, all screws, bolts, and fasteners, threaded inserts (whether for contractor convenience or not), expansion joint devices, castings, downspouts, concrete pipe reinforcement, signal components, traffic controller components, etc. The FHWA has told us, “if a magnet sticks to it, it must meet the Buy America provisions”…..
If, as the prime contractor, you or your subs are accepting and plan to incorporate non-domestic steel or iron products under the minimal allowance the regulation provides for (total project allowance of 0.10% of the project cost or $2,500, whichever is greater), you must document to MDOT the total cumulative costs of ALL of the non-domestic products (used by the prime, all subs, and all suppliers) to ensure the total project allowance is not exceeded. We suggest you monitor and track this number very closely as it is amazing how quickly the costs of these products will add up and exceed the total project allowance.
In closing, it is certainly not business as usual on FHWA federally funded projects. As prime contractors, subcontractors, and suppliers you must be very attentive to the Buy America requirements for any and all steel and iron products you provide for permanent incorporation in a project.
MITA will continue a strong and aggressive advocacy for palatable resolution of the various industry concerns related to the current product coverage and level of certification the Special Provision requires.
If you have any questions on this matter, contact Glenn Bukoski at glennbukoski@mi-ita.com or Doug Needham at douglasneedham@mi-ita.com or call them at the MITA office at 517-347-8336.
