Thursday, May 17, 2012

Buying American may hike costs of road projects

The Utah Department of Transportation warned state lawmakers Wednesday that tough new enforcement of a federal law requiring that only U.S. iron and steel be used in federally funded highway projects could bring significant delays and cost increases locally.

"If one piece of iron or steel does not meet Buy America [Act] requirements, it eliminates the option to be reimbursed for the entire project, not just for that one item," Randy Park, UDOT project development director, told the Legislature’s Interim Transportation Committee.
He said the problem is not so much with large bridge girders or rebar in cement — which UDOT has plenty of experience in obtaining from certified U.S. sources — but with small items like nails and screws, whose origin may be murky. Also, utility companies are having trouble finding U.S. makers of poles, wire and some pipe they use in highway corridors, which may disqualify an entire highway project.

Park said in the past, the Federal Highway Administration allowed contractors to self-certify that smaller items they used were manufactured in the United States, but now is requiring more lengthy certification by UDOT that will increase costs and may bring delays. 

Park said UDOT is looking for ways to solve the problem. One possibility is to seek a waiver from federal authorities when essential items cannot be found from American sources — and it is doing that in some cases. However, he said that takes time and delays projects. Salt Lake Tribune