AGC Supports FHWA’s Buy America Waivers

AGC submitted comments 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. 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 also asked for comments on its policy allowing the minimal use of foreign steel products if their cost does not exceed $2,500 or .1 percent of the project cost, whichever is greater. AGC’s comments support FHWA, indicating that these are reasonable interpretations and should continue to be implemented. AGC also raised concern about implementation of a MAP-21 Buy America provision that FHWA has interpreted as applying to utility relocation in conjunction with a highway improvement project.