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a, For all contracts expected to exceed the simplified acquisition threshold, per 2CFR200.1, the
<br />Subrecipient must notify the Department. The Department may request pre-procurement
<br />documents, such as request for proposals, invitations for bids and indopendent cost estimates,
<br />This requirement must be passed on to any non-federal entity to which the Subrecipient makes
<br />a subaward, at which point the Subrecipient will be responsible for reviewing and approving sole
<br />source justifications to any non-federal entity to which Subrecipient makes any award.
<br />b. For all sole source contracts expected to exceed the micro-purchase threshold per 2 CFR 200.1,
<br />the Subrecipient must submit justification to the Department for review and approval. This
<br />requirement must be passed on to any non-federal entity to which the $ubrecipient makes a
<br />subaward, at which point the Subrecipient will be responsible for reviewing and approving sole
<br />source justifications to any non-federal entity to which $ubrecipient makes any award,
<br />c. The Subrecipient as well as its contractors and subcontractors must comply with the Build
<br />America, Buy America Act (BABAA), which was enacted as a part of the lnfrashucture
<br />lnvestment and Jobs Act SS 70901-70297, Pub. L, No. 117-58 (2021); and Executive Order
<br />14005, Ensuring the Future is Made in All of America by All of America's Workers. BABAA
<br />requires any infrastructure project receiving federalfunding must ensure:
<br />i. All iron and steel used in the project are produced in the United States. This means all
<br />manufacturing processes, from initial melting stage through the application of coatings,
<br />occurred in the United States.
<br />ii. All manufactured products must be produced in the United States. For a manufactured
<br />product to be considered produced in the United States, the cost of the components of the
<br />manufactured product that are mined, produced, or manufactured in the United States must
<br />be greater than 55% of the total cost of all minimum amount of domestic content of
<br />manufactured product, unless subject to another standard,
<br />iii. All construction materials are manufactured in the United States. This means that all
<br />manufacturing processes for construction material occurred in the United States.
<br />Additionally, applicable infrastructure projects are subject to domestic preference requirements,
<br />A domestic preference does not apply to non-infrastructure spending under an award that also
<br />includes a covered project. A domestic preference applies to an entire infrastructure project,
<br />even if it is funded by both federal and non-federal funds under one or more awards.
<br />i. Domestic preferences under BABAA only apply to articles, materials, and supplies that are
<br />consumed in, incorporated into, or affixed to an infrastructure project. As such, it does not
<br />apply to tools, equipment, and supplies, such as temporary scaffolding, brought to the
<br />construction site and removed at or before the completion of the infrastructure project. Nor
<br />does a domestic preference apply to equipment and furnishings, such as movable chairs,
<br />desks, and portable computer equipment, that are used at or within the finished
<br />infrastructure project but are not an integral part of or permanently affixed to the structure.
<br />ii. lnfrastructure, for the purposes of BABAA, includes, at a minimum, the structures, facilities,
<br />and equipment for, in the United States, roads, highways and bridges; public transportation;
<br />dams, ports, harbors and other maritime facilities; intercity passenger and freight railroads;
<br />freight and intermodal facilities; airports; water systems, including drinking water and
<br />wastewater systems; electrical transmission facilities and systems; utilities; broadband
<br />infrastructure; and buildings and real property. lnfrastructure includes facilities that
<br />generate, transport, and distribute energy.
<br />iii, The Subrecipient's contractors and their subcontractors who apply or bid for an award for
<br />an infrastructure project subject to the domestic preference requirement in the BABAA shall
<br />file a required certification io the $ubrecipient with each bid or offer for an infraslructure
<br />project unless a domestic preference requirement is waived by FEMA. Contractors and
<br />subcontractors must certify that no federal financial assistance funding for infrastructure
<br />projects will be provided unless all the iron, steel, manufactured projects, and construction
<br />materials used in the project are produced in the United States. BABM, Pub. L. No. 117-
<br />58, $$ 7AgAl52, Contractors and subcontractors shall also disclose any use of federal
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