The U.S. Department of Transportation (USDOT) issued notifications of the expiration of two key "Buy America" waivers on November 4. The first one was for construction material contracts and the other for ‘de minimis’ costs, small grants, and minor components, while also giving proposals for their replacements.
Those waivers relate to Executive Order 14005, issued by Biden in January 2021. The Executive Order directed federal agencies to maximize the use of goods, products, and materials produced in the United States via financial assistance awards and procurements.
USDOT is now proposing to alter “Buy America” waiver requirements in the two distinct categories.
In the first notice, USDOT is proposing to waive “Buy America” preferences for iron and steel, manufactured products, and construction materials used in infrastructure projects funded under USDOT-administered financial assistance programs.
There are three distinct conditions for application of the new waiver:
- The total value of the non-compliant products is no more than the lesser of $1 million or 5 percent of total allowable costs under the federal financial assistance award.
- The size of the federal financial assistance award is below $500,000.
- The non-domestically produced miscellaneous minor components comprise no more than 5 percent of the total material cost of an otherwise domestically produced iron or steel product.
In its second notice, USDOT is waiving the “Buy America” preferences awards obligated on or after November 10, as well as projects solicited before May 14, 2022, and entered into contract before March 10, 2023.
The USDOT noted that comments on its new waiver proposals are due by November 20.
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Source: USDOT
