Understanding Buy American Feb 2011 I need a letter stating that the fiber patch panels etc everything on the quote is made in the US I need a statement on OCC letter head that these products are made in America The distributor specified that the requirement is for the cable to ID: 759734
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Presentation Title Goes Here
Understanding “Buy
American”
Feb 2011
Slide2I need a letter stating that the fiber, patch panels etc. everything on the quote is made in the US. I need a statement on OCC letter head that these products are made in America. The distributor specified that the requirement is for the cable to be made in America. There is no requirement for where the materials came from.I have a new requirement for a letter that states we are 100% made in America or at the very least we adhere to the “made in America act” I have a customer that is requiring documentation that the following cables are “Made in the USA” before they issue a PO.They need a letter from you stating that the part numbers I’m requesting are made in America. Can you please Provide that? Actual Requests – Simple, Right?
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Slide3Some Similar But Different Terms
Buy American ActBuy America ActARRA Section 1605 Buy American ClauseMade In USACountry of OriginDomestic End Product
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Slide4Is it “Made In USA”?
A marketing term not usually seen in contract languageUsually not sufficient for a certificationFind out the real certification requirementFTC language is somewhat vague on what it means and open to interpretation
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Slide5Buy American Act
Buy American FARs and DFARsPart of the Federal Acquisition Regulations System (FAR), Part 52, Subpart 2, Section 25, identified as FAR 52.225Used on many federal contracts often with flow-down to suppliersAmendments, treaties, and trade agreements create a complicated list of exceptions
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Slide6Buy American Act
Buy American Act requires or creates a preference for "domestic end products" on U.S. federal government contracts, including:Manufactured products in which: The product is manufactured in the USA, and The cost of its U.S. components exceeds 50% of the cost of all components of the itemExcludes components of certain COTS items
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Slide7Buy American Act for COTS Items
The component test is waived for a COTS item manufactured in the US if it is:A commercial item (as defined in FAR 2.101), andSold in substantial quantities in the commercial marketplace, and Offered to the Government under a contract or subcontract, without modification, in the same form in which it is sold in the commercial marketplace (GSA, IDIQ, etc.)
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Slide8Buy America Act, AAFI Act
Buy America (no n) Act is applied to transit-related procurements grantsFederal Transit Authority (FTA) Federal Highway Administration (FHWA)Airport and Airways Facilities Improvement Act grants administered by the FAABoth Acts require specific % content of certain construction suppliesNot often used for our product sets
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Slide9ARRA Section 1605 Buy American
American Recovery and Reinvestment Act of 2009 (the Stimulus Bill) requires use of domestic end productsUsed on current infrastructure projects Domestic manufactured goods may contain materials from another country if:Substantially transformed in the US into new and different goods distinct from the materials from which it was transformed
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Slide11Qualifies as substantial transformation:
Yes to Q 1, orYes to any of Q 2a, 2b, 2c, orYes to at least two of Q 3a, 3b, 3c, 3d, 3eMost OCC products qualify!
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Slide12Sample Certification Letter
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Slide13ARRA Buy American Certification
A few OCC products may not pass the ARRA substantial transformation test, so if certification is needed always ask before orderingOften customers do not request certification until after the product is shipped or installed! So be on the lookout for typical ARRA Certs candidates and ask if it might be needed:Water Projects: WTP, WWTP, DamsBTOP-Broadband Technology Opportunities ProgramTransportation: Mass Transit, Traffic Control, Airports
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Slide14Look for ARRA Clues
Is this order a candidate for ARRA Certification?
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Slide15How Requests are Handled
Buy American Act representations are handled just like any other special Terms and Conditions during the bid processCertification to ARRA Section 1605 Buy American are handled like any other customer requested CertificationAppropriate company resources are assigned to each T&C or Certification as needed
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Slide16Summary
Things you can do to help:Provide basic information: Quote or order? Shipped yet? Installed yet? Part number? Order number?Ask for specific contract flow-down requirementsAlways alert Manufacturing before items are madeAllow QC to keep a record of all customer certificationsArriving at correct answers can sometimes be complicated, requiring advice from outside experts which can take time, so please help manage our customer’s expectations
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