Contract Expenditures — Construction Projects
Required use of iron and steel products produced in the United States

Required use of iron and steel products produced in the United States

Effective Sept. 1, 2017, contracts and bid documents for a project in which iron or steel products will be used must include a requirement that any iron or steel product produced through a manufacturing process and used in the project be produced in the United States.

This requirement does not apply to a project if the governing body of the state agency responsible for the project determines that:

• Use of iron or steel products produced in the U.S. will increase the total cost of the project by more than 20 percent;
• Compliance with this requirement is inconsistent with public interest; or,
• Iron or steel products produced in the United States are not:
  • Produced in sufficient quantities;
  • Reasonably available; or,
  • Of satisfactory quality.

This requirement does not apply to a contract subject to Transportation Code Section 223.045 or 23 C.F.R. Section 635.410.

Electrical components, equipment, systems and appurtenances, including supports, covers, shielding and other appurtenances related to an electrical system, necessary for operation or concealment are not considered iron or steel products for the purpose of this requirement. An electrical system includes all equipment, facilities and assets owned by an electric utility as that term is defined in Utilities Code, § 31.002.

Definitions:

Manufacturing process

The application of a process to alter the form or function of materials or elements of a product in a manner that adds value and transforms the materials or elements into a new finished product that is functionally different from a finished product produced merely from assembling the materials or elements into a product.

Produced in the United States

An iron or steel product for which all manufacturing processes, from initial melting through application of coatings, occur in the United States, other than metallurgical processes to refine steel additives.

Project

A contract between a state agency and another person to:

• Construct, remodel or alter a building, a structure or infrastructure;
• Supply a material for a project to construct, remodel or alter a building, a structure or infrastructure; or,
• Finance, refinance or provide money from funds administered by a governmental entity for a project to construct, remodel or alter a building, a structure or infrastructure.

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