AGC Comments on FHWA’s Buy America Waivers

AGC has prepared draft comments to submit to the Federal Highway Administration (FHWA) concerning the continuation of waivers from Buy America requirements for manufactured products that are not substantially made of steel or iron and for the minimal use of foreign steel products. Comments are due Friday, Aug. 9 and AGC chapters and members are urged to submit comments. The Federal Register Notice can be viewed here. Current FHWA regulations require that steel and iron products permanently incorporated into Federal-aid highway construction projects must be domestically produced. Starting in 1983, FHWA waived this requirement for manufactured products that are not substantially steel (traffic signals, its equipment, etc.), even if some components of the manufactured product are made of steel. In December 2012, FHWA issued a clarification, indicating that “substantially” means that a manufactured product must be 90 percent steel or iron. FHWA has been challenged in court on this interpretation and is seeking support for the clarification. FHWA currently allows the minimal use of foreign steel products as their cost does not exceed $2,500 or .01 percent of the project cost, whichever is greater. The agency is also seeking comments on this waiver. AGC’s comments support FHWA, indicating that these are reasonable interpretations and should continue to be implemented. For more information, please contact Brian Deery at (703) 837-5319 or deeryb@agc.org.