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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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BUY AMERICAN ACT
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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BUY AMERICAN ACT
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).
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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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BUY AMERICAN ACT
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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BUY AMERICAN ACT
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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BUY AMERICAN ACT
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!
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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.
Points of discussion:
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.
Points of discussion:
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?
BUY AMERICAN ACT