Overview
Buy America requires the use of domestic steel and iron in Title 23 funded highway contracts. The use of foreign steel or iron materials or products in a Federal-aid project is prohibited with few exceptions (e.g., temporary basis; manufactured products that are not predominantly steel and iron; minimal use; nationwide or individual waivers; etc.). Section 1518 of MAP-21 has modified 23 U.S.C. 313 to require Buy America on the basis of a contract's associated NEPA document. All contracts, irrespective of funding source, are subject to Buy America compliance if any contract to construct a portion of the NEPA project is or has been funded under Title 23. If a non-federal aid contract is awarded without the Buy America provisions on or after December 31, 2013, all subsequent contracts within the scope of the NEPA document would become ineligible for federal aid participation.
On federal-aid projects, utility facility owners will use domestically manufactured products that are composed predominately of steel and/or iron to incorporate into the permanent installation of the utility facility - in compliance with the Buy America provisions of 23 CFR 635.410 as amended. Examples of such products may include poles, cross arms, and structural support members; towers and girders used to comprise transmission towers and stand-alone structures; conductor support cables; high-strength bolts used as anchor bolts and anchor rods; iron or steel baseplates; encasement pipes, pipes and valves; rebar and other reinforcing iron/steel for all cast-in-place and precast installations; conduit and ducting; fire hydrants; manhole covers, rims, and drop-inlet grates.
According to FHWA (memo dated July 6, 1989), all manufacturing processes of the steel material in a project (i.e., smelting and any subsequent process which alters the steel material's physical form or shape or changes its chemical composition) must occur within the United States to be considered of domestic origin. “Domestically manufactured products” are those products manufactured in the United States that have not undergone any manufacturing process outside of the United States that modified the chemical content, physical shape or size, or final finish of the product, beginning with the initial melting and continuing through final shaping and coating. For example, the creation of steel in any fashion from the iron ore is considered a manufacturing process, and if that process is performed outside the US, the steel is non-compliant, even if the final product was manufactured domestically. Raw materials were originally included in Buy America; however, lack of adequate domestic supply resulted in a 1995 nationwide waiver for pig iron and reduced/processed/pelletized iron ore.
Utility agreements executed before Dec. 31, 2013, are not subject to Buy America requirements.
The date of the original Utility agreement will be used as the date to determine Buy America compliance if the Utility Agreement is amended after December 31, 2013, unless the amendment includes major changes in the scope of work.
Non-domestic iron and steel materials may be used provided the cost of such materials does not exceed one-tenth of one percent (0.1 %) of the individual Utility Agreement amount, or $2,500.00 whichever is greater, per 23 CFR 635.410 (b)(4). The De Minimis equation is calculated by the following formula: Combined Cost of Only those Materials that are subject to Buy America and are Non-Compliant (limited to the individual Utility Agreement) divided by the Total Utility Relocation Cost (cited in the individual Utility Agreement).