‘Buy American’ Doesn’t Apply to Construction Equipment
April 7, 2009 – The Associated Equipment Distributors, Oak Brook, Ill., reports that the Buy American provision included in the American Recovery and Reinvestment Act does not apply to construction equipment.
On March 31, the federal government issued an interim final rule amending the Federal Acquisition Regulations to implement the “Buy American†provision included in the American Recovery and Reinvestment Act. The provision requires that "all of the iron, steel, and manufactured goods used in projects funded by the stimulus bill must be "produced in theUnited States
During the stimulus debate, AED lobbied Congress to prevent construction equipment from being covered by the Buy American requirements. Since the enactment of the stimulus bill, AED has worked with the Department of Transportation and the Environmental Protection Agency (EPA) to ensure that the law is not misinterpreted to apply to the equipment industry.
The interim rule, which was issued by the Civilian Agency Acquisition and Defense Acquisition Regulations Councils, places construction projects in the public works†classification and makes them officially subject to the “Buy American†language. However, the rule states that the law will apply only to building materials, articles or supplies incorporated into the project. Equipment used in the construction process will not be subject to the “Buy American†language. The provision applies only to building materials incorporated into the projects, not to equipment and tools used on projects that are not permanently affixed and which the state will not own when the project is complete.
To read the rule in its entirety, visit http://edocket.access.gpo.gov/2009/E9-7031.htm.
On March 31, the federal government issued an interim final rule amending the Federal Acquisition Regulations to implement the “Buy American†provision included in the American Recovery and Reinvestment Act. The provision requires that "all of the iron, steel, and manufactured goods used in projects funded by the stimulus bill must be "produced in the
During the stimulus debate, AED lobbied Congress to prevent construction equipment from being covered by the Buy American requirements. Since the enactment of the stimulus bill, AED has worked with the Department of Transportation and the Environmental Protection Agency (EPA) to ensure that the law is not misinterpreted to apply to the equipment industry.
The interim rule, which was issued by the Civilian Agency Acquisition and Defense Acquisition Regulations Councils, places construction projects in the public works†classification and makes them officially subject to the “Buy American†language. However, the rule states that the law will apply only to building materials, articles or supplies incorporated into the project. Equipment used in the construction process will not be subject to the “Buy American†language. The provision applies only to building materials incorporated into the projects, not to equipment and tools used on projects that are not permanently affixed and which the state will not own when the project is complete.
To read the rule in its entirety, visit http://edocket.access.gpo.gov/2009/E9-7031.htm.
