Buy American Act Glenn Franklin Bechtel Parsons Blue

Buy American Act Glenn Franklin Bechtel Parsons Blue Grass BECHTEL PARSONS BLUE GRASS TEAM

“BUY AMERICAN ACT” OBJECTIVES: At the end of this session the participant will be able to: 1. Understand the basic requirements of the “Buy American Act”. 2. Have the ability to apply these requirements to their day to day conduct of business for the BGCAPP. BECHTEL PARSONS BLUE GRASS TEAM

“BUY AMERICAN ACT” OBJECTIVES: 3. Ensure that the Supplier’sSubcontractor’s understand that it is their responsibility to ensure that they are in compliance with BAA. 4. The SuppliersSubcontractor’s need to know and document the origin of materials and products that they are supplying. 5. Understand the impact on SuppliersSubcontractor’s and the Project BECHTEL PARSONS BLUE GRASS TEAM

“BUY AMERICAN ACT” GROUP DISCUSSION: ¡ For the Participants here today, what have they supplied to the BGCAPP. ¡ Explore and discuss the responses throughout the presentation. BECHTEL PARSONS BLUE GRASS TEAM

“BUY AMERICAN” ACT BUY AMERICAN ACT - Part of the Federal Acquisition Regulations System (FAR), Part 52, Subpart 2, Section 25, identified as FAR 52. 225 During this session we will work through the following topics: ¡ ¡ ¡ Construction Materials Trade Agreements Basic Scenarios & Discussions BECHTEL PARSONS BLUE GRASS TEAM

“BUY AMERICAN” ACT ¡ 52. 225. 2 : CONSTRUCTION MATERIALS - For the purposes of this discussion, construction materials are defined as permanent plant equipment, materials, or supplies. ¡ APPLICATION: Contracts for the construction, alteration, or repair of any public building or work in the U. S. . ¡ RESTRICTIONS: Incorporation of any construction materials NOT considered domestic. BECHTEL PARSONS BLUE GRASS TEAM

“BUY AMERICAN” ACT DOMESTIC CONSTRUCTION MATERIALS are defined as: ¡ An unmanufactured construction material mined or produced in the U. S. OR ¡ Manufactured product when cost of domestic components exceeds 50% of the cost of all of it’s components. BECHTEL PARSONS BLUE GRASS TEAM

“BUY AMERICAN” ACT SCENARIO #1 An A/C unit (skid mounted) arrives onsite for installation. Points of discussion: § How does BGCAPP know it’s origin? § What percentage of the assembly is required to be made in US? BECHTEL PARSONS BLUE GRASS TEAM

“BUY AMERICAN” ACT FAR 52. 225 -12 Trade Agreements Act - Waives the “Buy American Act” for eligible products purchased from countries that have signed an international trade agreement with the U. S. . BECHTEL PARSONS BLUE GRASS TEAM

“BUY AMERICAN” ACT APPLICATION OF TRADE AGREEMENTS: Construction Materials may be purchased from the United States, Designated Countries (DC’s) and signatories to the North American Free Trade Agreement (NAFTA). BECHTEL PARSONS BLUE GRASS TEAM

“BUY AMERICAN” ACT “DESIGNATED COUNTRY” CONSTRUCTION MATERIALS are defined as: ¡ Wholly the growth, product or manufacture from a designated country. ¡ In the case of a construction material that consists in whole or in part of materials from another country, has been substantially transformed in a designated country into a new and different construction material distinct from the materials from which it was transformed. BECHTEL PARSONS BLUE GRASS TEAM

“BUY AMERICAN” ACT United States ¡ ¡ ¡ 50 states District of Columbia Territories and possessions Puerto Rico Northern Mariana Islands Any other place subject to US jurisdiction NAFTA Countries ¡ Canada ¡ Mexico BECHTEL PARSONS BLUE GRASS TEAM

“BUY AMERICAN” ACT “Designated Countries” Aruba Austria Bangladesh Belgium Benin Bhutan Botswana Burkina Faso Burundi Canada Cape Verde Central African Rep. Chad Comoros BECHTEL PARSONS BLUE GRASS TEAM Denmark Djibouti Equat’l Guinea Finland France Gambia Germany Greece Guinea-Bissau Haiti Hong Kong Ireland Israel Italy Japan Kiribati Korea Lesotho Liechtenstein Luxembourg Malawi Maldives Mali Mozambique Nepal Netherlands Niger Norway Portugal Republic of Korea Rwanda Sao Tome/Principe Sierra Leone Singapore Somalia Spain Sweden Switzerland Tanzania U. R. Togo Uganda United Kingdom Vanuatu Western Samoa Yemen

“BUY AMERICAN” ACT Restricted Countries: BGCAPP cannot purchase or use supplies, material, or services originating in, transported from or through the following countries or entities: §Cuba §Iran §Iraq §Libya §North Korea §Sudan §The territory of Afghanistan controlled by the Taliban §Serbia (excluding Kosovo) §Entities controlled by the government of Iraq There are no exceptions to the requirement! BECHTEL PARSONS BLUE GRASS TEAM

“BUY AMERICAN” ACT SCENARIO #2 A maintenance subcontractor is working to install barriers around the transformers located at the Jobsite. The fence fabric they are installing is labeled “Made in Sudan”. Points of discussion: § Is this fabric allowed to be used since it has been received? § What will the BGCAPP Project upon discovery? § How is the problem properly resolved? BECHTEL PARSONS BLUE GRASS TEAM

“BUY AMERICAN” ACT SCENARIO #3 Fire sprinkler heads are required at the jobsite. The Offeror’s are only able to find the specified piping components that meet drawing specs which are “Made in China”. Points of discussion: § What is the proper course of action by the Offeror? § How long may this take to be resolved by the Buyer? § What are the other possibilities to resolve? BECHTEL PARSONS BLUE GRASS TEAM

“BUY AMERICAN” ACT PRIOR APPROVAL IS REQUIRED IF WE CAN PROVE THAT: 1. Public Interest - Requires “HEAD OF AGENCY” approval and foreign government agreements. 2. Non-availability - ONLY if articles, materials, or supplies of the class or kind to be acquired are not mined, produced or manufactured in US/NAFTA/Designated Countries in sufficient and reasonably available commercial quantities. Determination by Contracting Officer is REQUIRED. 3. Unreasonable Cost - Determination by Contracting Officer is REQUIRED. BECHTEL PARSONS BLUE GRASS TEAM

“BUY AMERICAN” ACT Questions? BECHTEL PARSONS BLUE GRASS TEAM