Get the Facts on BAA & ARRA

“When offshore is cheaper can it be used on projects? What about NAFTA, do these  products qualify?”  The law is very clear.  Penalties, project tear-outs & rejected shipments are costly! Removal from all future Government work with severe penalties and backcharges have occurred to contractors, manufacturers and suppliers.

Rewritting or  Ignoring Specifications for an Economic Advantage is Breaking the Law!

FACT:  The Buy America provision of the ARRA mandates “none of the funds appropriated or otherwise made available may be used for any project for the construction, alteration, maintenance, or repair of a public building or public work unless all of the iron, steel, and manufactured goods used in the project are produced in the United States.”

Purchasing Tip:  Know Before You Buy,

” Ask Are These Products MANUFACTURED in The USA?”  and ALWAYS  ask for THEIR Certificate of Compliance. Be Cautious When the Box Does Not State  MADE IN THE USA. Ask for the MANUFACTURERS CERTIFICATE OF COMPLIANCE.  You should always ask this BEFORE you buy.

Question: When “Lower Costs are Available on Buy American Projects,  What’s the Law”?

WhenYou Hear Off-Shore Products Are Cheaper!!”  Understand the “Twenty Five Percent Cost Waiver”

The ARRA contains an exception allowing a project to use foreign products only if the use of  products produced in the United States will increase the cost of the “overall project” by more than 25%. This does not mean that the exception applies if the cost of the product will be 25%
greater than foreign products; rather the cost of U.S. made product must increase the cost of the entire project by more that 25%. Indeed, it is longstanding precedent of the FHWA’s Buy America provision – upon which the ARRA’s Buy America provision is based – that “the 25  percent differential applies to the total bid for the entire project, not just the bid prices for the steel or iron products.” Both the interim regulation and the OMB guidance replicate this requirement and apply the 25 % differential to the entire construction project NOT a single purchase order. 

Question: “What About NAFTA Products” ?

The Buy America provision of the ARRA mandates that “none of the funds appropriated or otherwise made available by this Act may be used for a project for the construction, alteration, maintenance, or repair of a public building or public work unless all of the iron,
steel, and manufactured goods used in the project are produced in the United States.”


Additional Useful Buy American Information for Your Purchases and Projects:

Take a look at the facts regarding Buy American and how an incorrect choice could impact your business.  Federal, State and Local projects may require the correct application of these rules and regulations.

Quick Links to Learn More:

View a Short Video on How We Comply →

 


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