Buy American Act- Rev 3

7/29/2019 Buy American Act- Rev 3

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BECHTEL PARSONS BLUE GRASS TEAM

Buy AmericanAct

Glenn Franklin

Bechtel Parsons Blue

Grass


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OBJECTIVES:

At the end of this session the participantwill be able to:

1. Understand the basic requirements of the BuyAmerican Act.

2. Have the ability to apply these requirements totheir day to day conduct of business for theBGCAPP.

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OBJECTIVES:

3. Ensure that the Suppliers\Subcontractorsunderstand that it is their responsibility to ensure

that they are in compliance with BAA.

4. The Suppliers\Subcontractors need to know anddocument the origin of materials and products

that they are supplying.

5. Understand the impact onSuppliers\Subcontractors and the Project

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GROUP DISCUSSION:

For the Participants here today, what have

they supplied to the BGCAPP.

Explore and discuss the responses

throughout the presentation.

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BUY AMERICAN ACT - Part of the FederalAcquisition Regulations System (FAR), Part 52,Subpart 2, Section 25, identified as FAR 52.225

During this session we will work through thefollowing topics:

Construction Materials

Trade Agreements

Basic Scenarios & Discussions

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52.225.2 : CONSTRUCTION MATERIALS - For thepurposes of this discussion, construction materials aredefined as permanent plant equipment, materials, orsupplies.

APPLICATION: Contracts for the construction, alteration,or repair of any public building or work in the U.S..

RESTRICTIONS: Incorporation of any construction

materials NOT considered domestic.

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DOMESTIC CONSTRUCTION MATERIALSare defined as:

An unmanufactured construction materialmined or produced in the U.S.

OR

Manufactured product when cost of domesticcomponents exceeds 50% of the cost of allof its components.

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SCENARIO #1

An A/C unit (skid mounted) arrives onsite forinstallation.

Points of discussion:

How does BGCAPP know its origin?

What percentage of the assembly is required to bemade in US?

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FAR 52.225-12 Trade Agreements Act - Waives theBuy American Act for eligible products

purchased from countries that have signed aninternational trade agreement with the U.S..



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APPLICATION OF TRADE AGREEMENTS:

Construction Materials may be purchased from the

United States, Designated Countries (DCs) andsignatories to the North American Free Trade

Agreement (NAFTA).



DESIGNATED COUNTRY CONSTRUCTIONMATERIALS are defined as:

Wholly the growth, product or manufacture from a

designated country.

In the case of a construction material that consists inwhole or in part of materials from another country, has

been substantially transformed in a designated countryinto a new and different construction material distinctfrom the materials from which it was transformed.

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United States 50 states

District of Columbia

Territories and possessions

Puerto Rico Northern Mariana Islands

Any other place subject to US jurisdiction

NAFTA Countries

Canada

Mexico



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Aruba

Austria

Bangladesh

Belgium

Benin

Bhutan

Botswana

Burkina

Faso

Burundi

Canada

Cape Verde

Central African Rep.

Chad

Comoros

Denmark

Djibouti

Equatl Guinea

Finland

France

Gambia

Germany

Greece

Guinea

Guinea-Bissau

Haiti

Hong Kong

Ireland

Israel

Italy

Japan

Kiribati

Korea

Lesotho

Liechtenstein

Luxembourg

Malawi

Maldives

Mali

Mozambique

Nepal

Netherlands

Niger

Norway

Portugal

Republic of Korea

Rwanda

Sao Tome/PrincipeSierra Leone

SingaporeSomalia

Spain

Sweden

Switzerland

Tanzania

U.R. Togo

Uganda

United Kingdom

Vanuatu

Western Samoa

Yemen

Designated Countries



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Restricted Countries:BGCAPP cannot purchase or use supplies, material, orservices originating in, transported from or through the

following countries or entities:

Cuba

Iran

Iraq

Libya

North Korea

SudanThe territory of Afghanistan controlled by the Taliban

Serbia (excluding Kosovo)

Entities controlled by the government of Iraq

There are no exceptions to the requirement!



SCENARIO #2A maintenance subcontractor is working to installbarriers around the transformers located at theJobsite. The fence fabric they are installing is

labeled Made in Sudan.


Is this fabric allowed to be used since it has beenreceived?

What will the BGCAPP Project upon discovery?

How is the problem properly resolved?

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SCENARIO #3Fire sprinkler heads are required at the jobsite. TheOfferors are only able to find the specified pipingcomponents that meet drawing specs which are

Made in China.


What is the proper course of action by the Offeror?

How long may this take to be resolved by the Buyer? What are the other possibilities to resolve?

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PRIOR APPROVAL IS REQUIRED IF WE CANPROVE THAT:

1. Public Interest -Requires HEAD OF AGENCYapproval and foreign government agreements.

2. Non-availability - ONLY if articles, materials, orsupplies of the class or kind to be acquired are notmined, produced or manufactured inUS/NAFTA/Designated Countries in sufficient and

reasonably available commercial quantities.Determination by Contracting Officer is REQUIRED.

3. Unreasonable Cost - Determination by ContractingOfficer is REQUIRED.

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Questions?

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Documents

Buy American Act- Rev 3