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2 CFR Part 184 — Buy America Preferences for Infrastructure Projects

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PART 184—BUY AMERICA PREFERENCES FOR INFRASTRUCTURE PROJECTS Authority: Pub. L. 117-58, 135 Stat. 429. Source: 88 FR 57787, Aug. 23, 2023, unless otherwise noted. § 184.1 Purpose and policy. (a) Purpose. (b) Policy. See § 184.2 Applicability, effective date, and severability. (a) Non-applicability of this part to existing Buy America Preferences. (b) Effective date of this part. (c) Modified effective date of this part for certain infrastructure projects. (d) Severability. § 184.3 Definitions. Acronyms used in this part have the same meaning as provided in 2 CFR 200.0. Terms not defined in this part have the same meaning as provided in 2 CFR 200.1, except for the terms “equipment,” “expenditures,” and “supplies,” which are not specifically defined for this part. As used in this part: Build America, Buy America Act Buy America Preference Component Construction materials (1) The listed items are: (i) Non-ferrous metals; (ii) Plastic and polymer-based products (including polyvinylchloride, composite building materials, and polymers used in fiber optic cables); (iii) Glass (including optic glass); (iv) Fiber optic cable (including drop cable); (v) Optical fiber; (vi) Lumber; (vii) Engineered wood; and (viii) Drywall. (2) Minor additions of articles, materials, supplies, or binding agents to a construction material do not change the categorization of the construction material. Infrastructure project See also Iron or steel products Manufactured products (1) Articles, materials, or supplies that have been: (i) Processed into a specific form and shape; or (ii) Combined with other articles, materials, or supplies to create a product with different properties than the individual articles, materials, or supplies. (2) If an item is classified as an iron or steel product, a construction material, or a section 70917(c) material under § 184.4(e) and the definitions set forth in this section, then it is not a manufactured product. However, an article, material, or supply classified as a manufactured product under § 184.4(e) and paragraph (1) of this definition may include components that are construction materials, iron or steel products, or section 70917(c) materials. Manufacturer Predominantly of iron or steel or a combination of both Produced in the United States (1) In the case of iron or steel products, all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States. (2) In the case of manufactured products: (i) The product was manufactured in the United States; and (ii) 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 that meets or exceeds this standard has been established under applicable law or regulation for determining the minimum amount of domestic content of the manufactured product. See (3) In the case of construction materials, all manufacturing processes for the construction material occurred in the United States. See Section 70917(c) materials See [88 FR 57787, Aug. 23, 2023, as amended at 89 FR 79732, Oct. 1, 2024] § 184.4 Applying the Buy America Preference to a Federal award. (a) Applicability of Buy America Preference to infrastructure projects. (b) Including the Buy America Preference in Federal awards. (c) Infrastructure in general. (d) Interpretation of infrastructure. (e) Categorization of articles, materials, and supplies. (i) Iron or steel products; (ii) Manufactured products; (iii) Construction materials; or (iv) Section 70917(c) materials. (2) An article, material, or supply should not be considered to fall into multiple categories. In some cases, an article, material, or supply may not fall under any of the categories listed in paragraph (e)(1) of this section. The classification of an article, material, or supply as falling into one of the categories listed in paragraph (e)(1) must be made based on its status at the time it is brought to the work site for incorporation into an infrastructure project. In general, the work site is the location of the infrastructure project at which the iron, steel, manufactured products, and construction materials will be incorporated. (f) Application of the Buy America Preference by category. § 184.5 Determining the cost of components for manufactured products. In determining whether the cost of components for manufactured products is greater than 55 percent of the total cost of all components, use the following instructions: (a) For components purchased by the manufacturer, the acquisition cost, including transportation costs to the place of incorporation into the manufactured product (whether or not such costs are paid to a domestic firm), and any applicable duty (whether or not a duty-free entry certificate is issued); or (b) For components manufactured by the manufacturer, all costs associated with the manufacture of the component, including transportation costs as described in paragraph (a) of this section, plus allocable overhead costs, but excluding profit. Cost of components does not include any costs associated with the manufacture of the manufactured product. § 184.6 Construction material standards. (a) The Buy America Preference applies to the following construction materials incorporated into infrastructure projects. Each construction material is followed by a standard for the material to be considered “produced in the United States.” (1) Non-ferrous metals. (2) Plastic and polymer-based products. (3) Glass. (4) Fiber optic cable (including drop cable). (5) Optical fiber. (6) Lumber. (7) Drywall. (8) Engineered wood. (b) Except as specifically provided, only a single standard under paragraph (a) of this section should be applied to a single construction material. § 184.7 Federal agency's issuance of a Buy America Preference waiver. (a) Justification of waivers. (1) Applying the Buy America Preference would be inconsistent with the public interest (a “public interest waiver”); (2) Types of iron, steel, manufactured products, or construction materials are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality (a “nonavailability waiver”); or (3) The inclusion of iron, steel, manufactured products, or construction materials produced in the United States will increase the cost of the overall infrastructure project by more than 25 percent (an “unreasonable cost waiver”). (b) Requesting a waiver. (c) Before issuing a proposed waiver. (d) Before issuing a final waiver. (1) Make the proposed waiver and the detailed written explanation publicly available in an easily accessible location on a website designated by the Federal agency and the Office of Management and Budget; (2) Except as provided in paragraph (e) of this section, provide a period of not less than 15 calendar days for public comment on the proposed waiver; and (3) Unless the Director of OMB provides otherwise, submit the waiver determination to the Made in America Office in OMB for final review pursuant to Executive Order 14005 and section 70923(b) of the Build America, Buy America Act. (e) Waivers of general applicability. § 184.8 Exemptions to the Buy America Preference. (a) The Buy America Preference does not apply to expenditures for assistance authorized under section 402, 403, 404, 406, 408, or 502 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170a, 5170b, 16 5170c, 5172, 5174, or 5192) relating to a major disaster or emergency declared by the President under section 401 or 501, respectively, of such Act (42 U.S.C. 5170, 5191) or pre and post disaster or emergency response expenditures. (b) “Pre and post disaster or emergency response expenditures” consist of expenditures for financial assistance that are: (1) Authorized by statutes other than the Stafford Act, 42 U.S.C. 5121 et seq.; (2) Made in anticipation of or response to an event or events that qualify as an “emergency” or “major disaster” within the meaning of the Stafford Act, 42 U.S.C. 5122(1), (2).

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