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subaward, at which point the Subrecipient will be responsible for requesting and reviewing pre -
<br />procurement documents.
<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 subrecipient to which the Subrecipient makes a subaward,
<br />at which point the Subrecipient will be responsible for reviewing and approving sole source
<br />justifications to any subrecipient to which 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 Investment
<br />and Jobs Act §§ 70901-70297, Pub. L. No. 117-58 (2021); and Executive Order 14005, Ensuring
<br />the Future is Made in All of America by All of America's Workers. BABAA requires any
<br />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 all
<br />manufacturing processes, from initial melting stage through the application of coatings,
<br />occurred in the United States.
<br />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, even
<br />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. Infrastructure, 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. Infrastructure 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 to the Subrecipient with each bid or offer for an infrastructure
<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. BABAA, Pub. L. No. 117-
<br />58, §§ 70901-52. Contractors and subcontractors shall also disclose any use of federal
<br />financial assistance for infrastructure projects that does not ensure compliance with BABAA
<br />domestic preference requirement. Such disclosures shall be forwarded to the Subrecipient
<br />who will forward them to the Department who, in turn, will forward the disclosures to FEMA.
<br />DHS-FEMA-HSGP-SHSP-FY25 Page 9 of 55 Kittitas County, E26-360
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