Chapter 02. Implementation of the “Buy American Steel” Act
Regulation .01 General.LinkCopy Citation
A.
The procedures set forth in this chapter apply to all contracts for the:
(1)
Construction or maintenance of public works; or
(2)
Purchase or manufacture of any item of machinery or equipment which:
(a)
Contains at least 10,000 pounds of steel products, and
(b)
Is to be installed at a public works site.
B.
These procedures do not apply, however, when they are in conflict with any federal grants or federal regulations affecting a contract.
Regulation .02 Definitions.LinkCopy Citation
A.
In this chapter, the following words have the meanings indicated.
B.
Terms defined.
(1)
“Steel product” means a product rolled, formed, shaped, drawn, extruded, forged, cast, fabricated, or otherwise similarly processed, or processed by a combination of two or more of these operations, for steel made in the United States by open hearth, basic oxygen, electric furnace, Bessemer, or other steel making process.
(2)
“Public Works” means all buildings, bridges, roads, streets, alleys, ditches, sewage disposal plants, waterworks, and all other structures or works, constructed for public use or benefit or paid for wholly or in part out of public funds, except work done by any public utility company pursuant to an order of the Public Service Commission or other public authority, whether done under public supervision or direction or paid for wholly or in part out of public funds, unless let to contract.
(3)
“Install” means to make a part of, although not necessarily a permanent part of. For example, equipment installed at a public works site is equipment made a part of the site but capable of being moved from the site without extensive injury to the site or to the equipment, but which, nevertheless, is anticipated to be kept as a part of the site. Examples include but are not limited to a subway car or a gantry-mounted container crane.
Regulation .03 Applicability.LinkCopy Citation
Every contract of the type described in Regulation .01 shall require the use or supply of steel products as defined in these regulations for all steel that is to be incorporated into the work to be performed under the contract, unless the agency head determines that the cost of steel products is unreasonable or the use of these products is inconsistent with the public interest.
Regulation .04 Price of Steel Products.LinkCopy Citation
The price of any steel product of domestic origin is not unreasonable if:
A.
The price does not exceed the sum of the bid or offered price of a similar steel product of foreign origin, plus a differential of 20 percent of the bid or offered price of the steel product of foreign origin; or
B.
The steel product is produced in a “substantial labor surplus area” as defined by the United States Department of Labor and the price does not exceed the sum of the bid or offered price of a similar steel product of foreign origin, plus a differential of 30 percent of the bid or offered price of the steel product of foreign origin.
Regulation .05 Exceptions.LinkCopy Citation
At any time before the award of a contract, the agency head or designee may make a determination, that these regulations do not apply to that contract if:
A.
There are reasons to believe that the specified steel products are not produced in the United States in sufficient quantities to meet the requirements of the contract; or
B.
There are reasons to believe that the purchase of domestic steel products for that contract would be inconsistent with the public interest.
Regulation .06 Identification of Origin.LinkCopy Citation
If all steel products are not of domestic origin, each bidder or offeror submitting a bid or proposal in response to solicitations for a contract pursuant to Regulation .03 shall identify by name, type, or otherwise, those steel products that are proposed to be of foreign origin, the proposed source of supply, and certify that the bid or offered price of similar domestic steel products is unreasonable pursuant to these regulations.
Regulation .07 Proof of Unreasonable Domestic Steel Price.LinkCopy Citation
When the bidder or offeror proposes to use steel products of foreign origin and that bid or offer is the apparent most favorable bid or most advantageous offer:
A.
Within a reasonable time after bid opening, the bidder or offeror shall submit to the procurement officer, information in support of the claim that the bid or offered price of similar domestic steel products is unreasonable;
B.
The procurement officer may undertake independent investigation of the bid or offered price of similar foreign and domestic steel products.
Regulation .08 Rejection of Unsupported Bids.LinkCopy Citation
If a bidder or offeror fails to prove to the satisfaction of the procurement officer that the bid or offered price of domestic steel products is unreasonable, that bid or offer shall be rejected and the procurement officer may award the contract to the responsible bidder or offeror submitting the next most favorable responsive bid or next most advantageous offer.
Regulation .09 Verification of Steel Supply Sources.LinkCopy Citation
After award of the contract, the procurement officer is authorized to verify the sources of supply of steel products that are to be incorporated into the work to be performed under that contract.
Chapter annotations
Authority: State Finance and Procurement Article, §§12-101 and 17-301—17-306, Annotated Code of Maryland
History: Effective date: July 1, 1981 (8:13 Md. R. II-5)
History: Regulation .01 amended as an emergency provision effective July 1, 1981 (8:13 Md. R. II-3); emergency status expired October 1, 1981 (Emergency provisions are temporary and not printed in COMAR)
History: Regulations .01 and .02 amended effective May 10, 1982 (9:9 Md. R. 912)
History: Regulations .02, .04--.08 amended effective January 9, 1989 (15:27 Md. R. 3138)
History: Annotation: COMAR 21.11.02.02B cited in Attorney General Opinion No. 81-001 (January 15, 1981) (cited to the previous codification at COMAR
History:
11.01.12.02B