The Office of Management and Budget April 3 issued an interim final guidance document on the Buy American provisions contained in the $787 billion American Recovery and Reinvestment Act of 2009 (H.R. 1).
Section 1605 of the Recovery Act requires all iron, steel and manufactured goods used in the construction, alteration, maintenance or repair of public buildings or public works projects to be produced in the United States. In addition, this prohibition must be applied in a manner consistent with U.S. obligations under international agreements.
The law specifies only three circumstances that would trigger a waiver for the Buy American provision: when iron, steel or relevant manufactured goods are not produced in the U.S. in sufficient and reasonable quantities or quality; when use of U.S. iron, steel or manufactured goods would increase the overall cost of the project by more than 25 percent; or when applying the domestic preference would be inconsistent with the public interest.
The guidance document offers definitions of manufactured goods, steel and what constitutes a public building or public work, among other clarifications. In addition, the document advises contractors on the financial reporting requirements and whistleblower provisions contained in the Recovery Act.
The Recovery Act includes $27.5 billion for highway and bridge construction and repair; $8.4 billion for mass transit; $9.3 billion for high-speed railways and Amtrak; and $20 billion for "green" jobs to make wind turbines, solar panels and improve energy efficiency in schools and federal buildings, all of which would be subject to the Buy American provision.
To read the guidance document, visit
http://www.whitehouse.gov/omb/assets/memoranda_fy2009/m09-15.pdf.