1. Buy America and Utility Work
Gail Lee
Highway Utility Engineer, INDOT
February 1, 2017
We have received many questions about the Buy America laws with respect to utility relocations for roadway projects. This presentation will not attempt to justify the Buy America law but to provide guidance for both INDOT and utilities to comply with the law.

2. What is Buy America?
Buy America comprises the requirements to utility work accomplished as part of a Federal-aid highway program(FAHP) funded project as defined by the National Environmental Protection Act (NEPA).

3. BUY AMERICA REGULATIONS
Federal Codes
23 U.S.C 313
23CFR
23 CFR
49 US CODE 5323j
INDIANA CODE IC
The Indiana Code and any state code can be more rigorous than the federal codes.

4. Buy America vs Buy American
Buy America – Project iron and steel products are produced only in the United States.
Buy American – Project iron and steel products are produced in the United States OR by an American owned company abroad

5. What is covered under Buy America?
“Predominantly”
Iron and steel products and materials
Permanently incorporated into Federal Aid Funded projects
Previous Guidance has been discarded through a court case.

6. “Made in America” means ?
A. 90% or more iron or steel
B. 50% or more iron and steel
C. What ever is decided by the utility coordinator to be predominantly iron or steel on a case by case basis
predominantly

7. “ C ” is the correct answer
A court case ruled that 90% was arbitrary and could not longer be used to define predominantly iron or steel
Logic deems that predominantly cannot be less than 50%
The utility coordinator must decide on a case by case basis

8. Minimum Threshold to apply BA
Whichever of the following is greater:
$2, total amount of iron and steel products as delivered to the project
0.1% of the total contract amount

9. Individually, Lotsa Power CO and Roaring Water CO
Have not used more than $2,500 worth of foreign steel each AND
Individually, Lotsa Power and Roaring Water ‘s Power’s use of foreign steel does not exceed 0.1% of the total contract amount
However, together they used $4, of foreign steel.
Has the threshold amount been exceeded?
The iron and steel include the entire contract – not just utility work. INDOT construction is handling the calculations.

10. YES
“ A state DOT must track the amount of incorporated foreign steel and iron as the work proceeds to ensure that the minimal use threshold amount is not exceeded at any point in the contract ( 0.1% of the total contract amount or $2, whichever is greater).

11. TEMPORARY CONSTRUCTION?NO
Buy America does not apply to temporary construction such as scaffolding and sheet piling.

12. TEMPORARY CONSTRUCTION?NO
“Temporary use means that the contract specifications provide that the iron and steel products used on the project either must be removed at the end of the project or may be removed at the contractor’s convenience.”

13. Domestic Steel Leaves the Country
USA Abroad to Manufacture
Entire steel product becomes foreign steel

14. Steel is purchase abroad and brought to US
TO USA Foreign Steel For Fabrication
Only the value of foreign materials as delivered to the project is counted as foreign.

15. Recycled Steel
Recycled Steel is not covered under Buy America

16. Reimbursable Utilities
If a utility is reimbursable under federal and Indiana law, but chooses not to be reimbursed, are they bound to comply with Buy America?
Yes

17. Coatings
Buy America applies to Coatings of iron and steel

18. Galvanizing
Buy America applies to the galvanizing of steel

19. Welding
Buy America Applies to welding of iron and steel

20. Certification
Use the INDOT Buy America Form Found on INDOT public site

21. INDOT Utility Buy America Certificate
This form was developed by Lavon Marshall, Greenfield Utility RR Engineer.

22. What is Step Certification?
“ A step certification is a 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.”
For utility relocation work, FHWA is looking for a cert from both the manufacturer and the utility.

23. Step Certification for utilities
1. The iron or steel product manufacturer signs a certification
2. The utility signs a certification that states that the materials and manufacturing were done in the United States

24. Who receives the Buy America Cert?
The utility gives the cert to the Utility coordinator
The utility coordinator gives the cert to INDOT construction even for LPA projects.
In LPA projects the area engineer has oversight.

25. What about a Waiver? The utility may request a waiver.
On the utility’s behalf, INDOT may submit a request for a waiver to the FHWA Indiana Division Office.
The FHWA Division office will forward the request to the FHWA Office of Program Administration.
Waivers are seldom granted.

26. QUESTIONS ?