This message is to inform you of two proposed Buy America waivers by the US Department of Transportation (USDOT or Department). The comment period for these waivers ends on November 20, 2022. The waivers can be viewed here under the posts dated November 4, 2022: https://www.transportation.gov/office-policy/transportation-policy/made-in-america.
The Department is taking three concurrent actions: (1) USDOT is not extending its temporary waiver for construction materials, making that requirement applicable effective November 10, 2022; (2) in one notice, DOT is proposing a narrow waiver for de minimis costs, small grants, and minor components; and (3) in a second notice, DOT is proposing to take two actions to help transition to the new construction materials standard.
What does this mean?
1. USDOT awards obligated on or after November 10, 2022 from financial assistance programs for infrastructure projects, will be subject to the Build America, Buy America Act (BABA) requirement that construction materials used on those projects be produced in the United States.
2. In one waiver, USDOT is proposing to waive the BABA Buy America preferences for iron and steel, manufactured products, and construction materials used in infrastructure projects funded under USDOT-administered financial assistance programs under a single financial assistance award for which:
a. The total value of the non-compliant products is no more than the lesser of $1,000,000 or 5% of total allowable costs under the Federal financial assistance award;
b. The size of the Federal financial assistance award is below $500,000; or
c. The non-domestically produced miscellaneous minor components comprise no more than 5% of the total material cost of an otherwise domestically produced iron or steel product.
3. In the other waiver, USDOT is waiving two conditions for certain contracts and solicitations. First, for USDOT awards obligated on or after the effective date of the final waiver, USDOT is proposing to waive the construction materials requirements for any contracts executed before November 10, 2022. Second, USDOT is proposing to waive the construction materials requirements for any projects that were advertised before May 14, 2022 and entered into contract before March 10, 2023.
To comment on narrow waiver for de minimis costs, small grants, and minor components please click here.
To comment on the two actions to help transition to the new construction materials standard click here.
Should you have questions on the waivers, please remit them to Edwin Okonkwo or Brian Hogge.