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projects started before completion of the EHP review process and receipt of approval by
<br />the Subrecipient will not be reimbursed.
<br />7. PROCUREMENT
<br />The Subrecipient shall comply with all procurement requirements of 2 CFR Part 200.317 through
<br />200.327 and as specified in the General Terms and Conditions (Attachment B, A.10).
<br />a. For all contracts expected to exceed the simplified acquisition threshold, per 2 CFR 200.1,
<br />the Subrecipient must notify the Department. The Department may request pre -
<br />procurement documents, such as request for proposals, invitations for bids and
<br />in epen en cos estimates. This requirement must be pas ed on to any-non=federal-entity
<br />to which the Subrecipient makes a subaward, at which point the Subrecipient will be
<br />responsible for requesting and reviewing pre -procurement documents.
<br />b. For all sole source contracts expected to exceed the micro -purchase threshold per 2 CFR
<br />200.1, the Subrecipient must submit justification to the Department for review and
<br />approval. This requirement must be passed on to any non-federal entity to which the
<br />Subrecipient makes a subaward, at which point the Subrecipient will be responsible for
<br />reviewing and approving sole source justifications to any non-federal entity to which
<br />Subrecipient 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 Infrastructure
<br />Investment and Jobs Act §§ 70901-70297, Pub. L. No. 117-58 (2021); and Executive
<br />Order 14005, Ensuring the Future is Made in All of America by All of America's Workers.
<br />BABAA requires any infrastructure project receiving federal funding must ensure:
<br />i. All iron and steel used in the project are produced in the United States. This means
<br />all manufacturing processes, from initial melting stage through the application of
<br />coatings, occurred in the United States.
<br />ii. All manufactured products must be produced in the United States. For a
<br />manufactured product to be considered produced in the United States, the cost of
<br />the components of the manufactured product that are mined, produced, or
<br />manufactured in the United States must be greater than 55% of the total cost of all
<br />minimum amount of domestic content of manufactured product, unless subject to
<br />another standard.
<br />iii. All construction materials are manufactured in the United States. This means that
<br />all manufacturing processes for construction material occurred in the United States.
<br />Additionally, applicable infrastructure projects are subject to domestic preference
<br />requirements. A domestic preference does not apply to non -infrastructure spending under
<br />an award that also includes a covered project. A domestic preference applies to an entire
<br />infrastructure project, even if it is funded by both federal and non-federal funds under one
<br />or more awards.
<br />i. Domestic preferences under BABAA only apply to articles, materials, and supplies
<br />that are consumed in, incorporated into, or affixed to an infrastructure project. As
<br />such, it does not apply to tools, equipment, and supplies, such as temporary
<br />scaffolding, brought to the construction site and removed at or before the
<br />completion of the infrastructure project. Nor does a domestic preference apply to
<br />equipment and furnishings, such as movable chairs, desks, and portable computer
<br />equipment, that are used at or within the finished 'infrastructure project but are not
<br />an integral part of or permanently affixed to the structure.
<br />ii. Infrastructure, for the purposes of BABAA, includes, at a minimum, the structures,
<br />facilities, and equipment for, in the United States, roads, highways and bridges;
<br />public transportation; dams, ports, harbors and other maritime facilities; intercity,,.
<br />passenger and freight railroads; freight and intermodal facilities; airports; water
<br />systems, including drinking water and wastewater systems; electrical transmission
<br />facilities and systems; utilities; broadband infrastructure; and buildings and real
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