When construction has begun on your Federal-aid project, it is critical to ensure
the contractor complies with the Buy America contract provisions.
All steel and iron products permanently incorporated into your project
must be domestically produced
and have appropriate certification statements
provided by the contractor.
Domestically produced means that manufacturing the fabrication of steel or
iron products
and the application of coatings are performed within the United States or its
territories.
Products used temporarily during the construction
are not subject to this requirement.
Manufacturing or fabrication performed outside of the US
on a domestic iron or steel product
makes the entire product a foreign source material that does not conform to the Buy
America provisions.
For example,
100 pieces of steel guardrail that are rolled to shape in Detroit,
and hot-dip galvanized in the Canadian city of Toronto
does not constitute conformance with the Buy America requirements.
Such products should not be installed on a Federal-aid project.
As the Local Public Agency or LPA, you must confirm that all steel and
iron products meet the Buy America requirements
before the contractor installs the products into your Federal-aid highway
project.
Contractors must provide a signed certification statement
regarding the manufacture of the iron and steel products to meet Buy America
requirements.
Although there is no "standard" format,
the intent of requiring a Buy America certification statement
is to make the contractor liable for meeting contract requirements for steel
or iron materials installed.
As such, having traceable records for the products installed is a critical
component of any Buy America certification.
The FHWA endorses a concept called "step certification" to meet the
Buy America requirements.
This type of certification creates a paper trail that documents the location
of each manufacturing step
for every piece of steel or iron material used on a project.
For instance, in the case of a shipment of reinforcing steel, each bundle of steel
that is delivered
is accompanied by a series of certification statements including: a
description that identified the location of the rebar manufacturing plant,
and a separate statement that addresses where the rebar is cut to length and bent to
final dimensions.
A third certification may be needed if any epoxy coating
has been applied to the reinforcing steel.
The company responsible for each separate process that changes the steel
or iron product
not the contractor who installs the product
certifies that each step was completed domestically.
There are many ways to prepare acceptable certification statements.
The prime contractor may certify all materials for the entire project at once
or suppliers can certify each individual step for separate production process.
A variation that uses elements of these two extremes is commonly used.
The most common method of tracing steel or iron material is by the "heat number."
A heat number is an identification stamped on a steel piece or iron casting
at the production location.
It identifies a specific amount of material produced and the associated quality
testing performed.
Every certification should clearly reference the heat number.
When reviewing certifications, compare the heat numbers or other tracing
method on delivered material to the certification document to ensure that
the information is the same.
One piece of documentation you should expect to receive for all steel and iron
is the mill certification.
The steel producer prepares the mill certification
to prove that the raw steel or iron was smelted and formed in the United
States.
The certification can be a signed letter or a signed statement
included on delivery tickets.
Fabricated, structural steel shapes must have a certification statement
showing the location of the fabrication plant and information about the
originating mill work.
Fabrication includes cutting,
welding and even drilling
holes.
Bolts, nuts, and washers used as connectors
require separate certification statements
since these are produced at different locations and use different
manufacturing methods
than the structural elements.
The location of the final step where a product was coated with paint, or
galvanized, must also conform to the Buy America provisions.
However,
Buy American material requirements do not apply to the coating material
because it is neither steel
nor iron.
Verify certification statements at the time of material delivery to the project
site.
Certification statements are usually printed directly on the shipment
bill of lading
and must be signed.
Documentation
supporting the certification statements
should include enough detail to trace the steel or iron from the mill
producing the raw materials
through all manufacturing processes and coating activities.
The Buy America provisions specifically address
pre-assembled
manufactured products
that contain steel or iron components.
Your contractor should identify steel or iron components
of any pre-assembled, manufactured product.
When this is the case, the company who completed the assembly should provide
appropriate certification statement of conformance with the Buy America
regulation.
You need to track the value of those components in contract administration
records if certification statements are not provided
to avoid exceeding the minimum use threshold.
Steel or iron products without certification statements confirming
domestic manufacturing are non- conforming to the Buy America requirements.
Obvious evidence of foreign manufacturing might include
foreign language script on products, and foreign country names stamped on an item
or on invoices.
Non-conforming materials also include items with improper, or incomplete,
certification statements.
Confirm that the cumulative value of non-conforming material does not exceed
0.1%
of the total contract amount or
$2,500, whichever is greater.
If this cumulative value exceeds the minimum threshold limit,
then additional installed material must be a
domestic origin.
Many State Departments of Transportation, or DOTs,
have developed required certification processes for use on
Federal-aid projects in their state.
So check with your State DOT for guidance in administering the certification
process on your project.
Your responsibility is to ensure the steel or iron is certified to meet Buy America
contract provisions.