In accordance with guidance provided by OMB in Memorandum M-24-02, the Buy America Requirement is applicable to the mandatory Cooperative Agreements used to fund the Army and Air National Guard within the 50 states and the territories of Guam, the Virgin Islands, Puerto Rico, and the District of Columbia.
The Cooperative Agreement Award recipient is responsible for following the Buy America requirement down to all sub-awards, all contracts, subcontracts, and purchase orders for work performed under the proposed infrastructure project.
Recipients of awards containing the Buy America Requirement must ensure that absent a waiver, none of the funds provided under their award (federal share or recipient cost-share) may be used for a project for infrastructure unless:
- All iron and steel used in the project is produced in the United States—this means all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States;
- All manufactured products used in the project are produced in the United States—this means the manufactured product was manufactured in the United States; and the cost of the components of the manufactured product that are mined, produced, or manufactured in the United States is greater than 55 percent of the total cost of all components of the manufactured product, unless another standard for determining the minimum amount of domestic content of the manufactured product has been established under applicable law or regulation; and
- All construction materials are manufactured in the United States—this means that all manufacturing processes for the construction material occurred in the United States.
The Buy America Requirement only applies to articles, materials, and supplies that are consumed in, incorporated into, or permanently affixed to an infrastructure project. As such, it does not apply to tools, equipment, and supplies, such as temporary scaffolding, brought into the construction site and removed at or before the completion of the infrastructure project. Nor does a Buy America Requirement apply to equipment and furnishings, such as movable chairs, desks, and portable computer equipment, that are used at or within the finished infrastructure project but are not an integral part of the structure or permanently affixed to the infrastructure project.
This requirement must flow down to all sub-awards, all contracts, subcontracts and purchase orders for work performed under the infrastructure project.
Recipients must maintain certifications or equivalent documentation for proof of compliance that those articles, materials, and supplies that are consumed in, incorporated into, affixed to, or otherwise used in the infrastructure project, not covered by a waiver or exemption, are produced in the United States. The certification or proof of compliance must be provided by the suppliers or manufacturers of the iron, steel, manufactured products and construction materials and flow up from all sub-awardees, contractors and vendors to the recipient. Recipients must keep these certifications with the award/project files and be able to produce upon request from DOD, auditors or Office of Inspector General.