IMPLEMENTING BUY AMERICA PROVISIONS IN TEXASprocess under which each handler (supplier, fabricator, manufacturer, processor, etc) of the iron and steel products certifies that their

Texas Department of Transportation, ROW Division

IMPLEMENTING BUY AMERICA PROVISIONS IN TEXAS

- Prepared by MSU Section


Overview

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Who made these requirements?

It is a Law.

U.S. Congress passed the law requiring that Secretary of Transportation shall not obligate any funds authorized to be appropriated to carry out the Surface Transportation Assistance Act of 1982 (96 Stat. 2097) or this title and administered by the Department of Transportation, unless steel and iron used in such project are produced in the United States.

Laws – The FHWA's statutory provisions for Buy America are found in Title 23

United States Code, Section 313.

Regulations – Title 23 C.F.R. 635.410 provides the FHWA's regulatory policy regarding Buy

America.

http://www.fhwa.dot.gov/programadmin/contracts/bas182.cfm

http://www.fhwa.dot.gov/programadmin/contracts/bas182.cfm

http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=23&PART=635&SECTION=410&YEAR=2001&TYPE=TEXT


Overview

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U.S. Federal surface transportation spending is governed by “Moving Ahead for Progress” (MAP 21) – Passed by Congress on June 29, 2012 – Section 1518 implemented on October 1, 2012

Buy America provisions created to ensure U.S. made goods and materials had preference over imports – Taxpayer dollars used to create and maintain

manufacturing jobs in the United States


Overview

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Provisions apply to infrastructure projects and governmental procurements – Federal funds used for any activity within the scope of NEPA decision or

construction, Buy America applies to entire project – Contracts or agreements executed after October 1, 2012 are subject to Buy

America provisions

Buy America law and/or policies – Require that all steel or iron products permanently used on a Federal-aid

highway project be manufactured domestically. • Regardless of funding source used to purchase products


Overview

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What materials covered under BA requirements?

Steel and Iron products and application of their coatings.


Iron & Steel Products

The FHWA deems a product to be manufactured predominantly of steel or iron if the product consists of at least 90% steel or iron as delivered.

Examples: –Fabricated structural/reinforcing steel –Bolts, tensioning wire –Guardrail, steel fencing –Steel or Iron pipe, mast arms/poles

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Exclusions

Miscellaneous steel or iron components and hardware necessary to assemble various components not predominantly iron or steel

Examples – Cabinets, Covers, Shelves – Fittings, sleeves, washers, bolts/nuts – Chairs, faucets, door hinges

Aluminum products are excluded as well

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Exclusions

Temporary installations –Buy America only applies to materials that are

permanently installed

Utility Permits –UIR System

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How to comply with BA Requirements?

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Enforcement & Oversight:

State DOTs are responsible for enforcement of Buy America provisions.

Adequate material certification process is acceptable for compliance.

In 1989, AASHTO approved a resolution supporting the use of step-step (i.e. step) certification for BA compliance.

FHWA endorsed step certification process as a method to provide greater awareness of and adherence to BA requirements. The process would also establish accountability and better enable States to take enforcement actions against intentional violators.


Step Certification

Step certification = process under which each handler (supplier, fabricator, manufacturer, processor, etc) of the iron and steel products certifies that their step in the process was domestically performed.

Step certification creates a paper trail documenting the location of the manufacturing process involved with the production of steel and iron materials.

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TxDOT Specs & Documentation

Review Specs 426 & 465 for rules regarding precast or manufactured products

Items such as ring covers, SETs, manholes must comply with Buy America

Form D-9-USA-1 (Form 181) must be maintained by the utility and the construction division also maintains a material producer list (MPL).

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Construction Division Resources

TxDOT Construction Division maintains a Materials Producer List (MPL) that lists domestic sourced iron/steel suppliers throughout the nation

Annually compile a list that lists approved suppliers for precast items used

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What happens when BA requirements were not met?

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Remove the excess foreign iron and steel products and replace with domestic iron and steel products.

Otherwise, the entire project will be classified as non-compliance and costs for the entire project will become ineligible.


Buy America-Utility Work

Can foreign steel be allowed in utility work using FAHP funding if the foreign items are made non-participating?

No - All materials permanently incorporated into a project using FAHP funding must meet the Buy America requirements (as specified in 23 U.S.C. 313 and 23 CFR 635.410).

Example – It is not acceptable to allow foreign steel as a permanent component of an FAHP project by using State or local funds for the non-conforming items. It is generally not acceptable for non- conforming materials to be donated to a project using FAHP funding.

Additional info. on Buy America requirements available in the FHWA Construction Program Guide:

http://www.fhwa.dot.gov/construction/cqit/buyam.cfm

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Buy America-Utility Work

What Buy America and utility issues should be considered when developing agreements to relocate utilities that utilize FAHP funding?

Utility contracts or agreements for utility work that utilize FAHP funding must include the provisions to meet the Buy America requirements (as specified in 23 U.S.C. 313 and 23 CFR 635.410). The contract or agreement shall require the contractor to provide a definitive statement about the origin of all products, permanently incorporated into the project, covered under the Buy America requirements. Additional information on the Buy America requirements to include in utility contracts and agreements is available in the FHWA Construction Program Guide at: http://www.fhwa.dot.gov/construction/cqit/buyam.cfm, and in the FHWA Contract Administration Core Curriculum Participant’s Manual and Reference Guide 2006 at: http://www.fhwa.dot.gov/programadmin/contracts/core02.cfm#s2B01.

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http://www.fhwa.dot.gov/programadmin/contracts/core02.cfm

http://www.fhwa.dot.gov/programadmin/contracts/core02.cfm


Additional Valuable Information

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Construction Program Guide: Buy America Laws and Regulations: http://www.fhwa.dot.gov/construction/cqit/buyam.cfm

Buy America Waiver information: http://www.fhwa.dot.gov/construction/contracts/waivers.cfm

Buy America Q and A: http://www.fhwa.dot.gov/construction/contracts/buyam_qa.cfm


http://www.fhwa.dot.gov/construction/contracts/waivers.cfm

http://www.fhwa.dot.gov/construction/contracts/waivers.cfm

http://www.fhwa.dot.gov/construction/contracts/buyam_qa.cfm


MAP, SURVEY & UTILITY PROJECT DELIVERY


Project Delivery – Map, Survey, & Utility (MSU)

Problem: Untimely utility accommodations completions delay delivery

Goal: Complete pre-construction

–All required property interests –Accommodate all impacted utility

facilities

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Pre-Modernization Process

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Post-Modernization Project Life Cycle

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Modernization Goals

Move utility work to preliminary project stage Active initiation & management Concurrent process instead of sequential Cultivate efficiency & effectiveness On-time & on-budget project delivery

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Identify Potential Projects

Monitor Transportation Commission for future projects Collaborate on needs with:

–District advanced planning –TP&D personnel Conduct annual utility coordination meetings

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Preliminary Investigations

Assess utility impact Identify utilities on projects Locate utilities on project limits Define compensable R/W interests Perform SUE work

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Conflict Analysis: Avoid, Minimize, & Accommodate

Determine utility impacts Exception to policy conflict resolution Consult engineers regarding re-design Minimize impact via detail investigation

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Avoid- Exception to Policy

TAC Rule 21.40 (a) – “Underground utilities crossing the highway shall be encased in the

interest of safety, protection of the utility, protection of the highway”

TAC Rule 21.40 (d) 3 – “In no case shall a manhole be placed or permitted to remain in the

pavement or shoulder of the highway”

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Existing Waterline @ Loop 335

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Exception to Policy

Exception was approved as: – The 10’ to 12’ depth ensured there were no other utility conflicts – Does not affect the safety, design, operation, maintenance – Accommodation would not impair future expansion – Relocation costs of $80,000-$100,000 – Avoid project delays

It was recommended and approved by the District Engineer

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Minimize- Redesign Intersection

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QA/QC Utility Accommodation

Estimate & schedule internally Review funding agreements & eligibility Review utility agreements Review PS&E packages

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Active Inspection

Conduct utility kickoff & status meetings Monitor project completion Review payment requests Get as built drawings & final specifications

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Thank You

Questions?

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Documents

IMPLEMENTING BUY AMERICA PROVISIONS IN TEXASprocess under which each handler (supplier, fabricator, manufacturer, processor, etc) of the iron and steel products certifies that their