In accordance with the “Build America, Buy America” sourcing guidelines in the Infrastructure Investment and Jobs Act, contractors working on federally-funded infrastructure projects will be required to procure US manufactured construction materials.
The 17-page guidance also sets standards under which agencies may waive the requirement of purchasing US materials: (1) For public interest (2) if the required quantity or quality is unavailable in US, and (3) if the US materials will increase the cost of the overall project by more than 25%, as compared to using materials made from other countries.
JD Supra summarized the requirements as follows:
“Implementing the IIJA, the Guidance sets forth “Buy America” sourcing requirements for three key types of products that might be used in an infrastructure project:
1. Iron and Steel, requiring all manufacturing processes for the iron and steel – from the initial melting stage through the application of coatings – occur in the United States;
2. Manufactured Products, requiring: (a) the end product must be manufactured in the United States; and (b) more than 55% of the total cost of all components of the manufactured product must also be U.S.-origin;
3. Construction Materials, requiring that all manufacturing processes for the construction material occur in the United States (including both the final manufacturing step, as well the immediately preceding manufacturing stage for the construction material).”