Notice of Modifications to U.S. Commitments Under the World Trade Organization Government Procurement Agreement To Implement Agreement With Canada Regarding Section 1605 of the Recovery Act (Buy American Requirement) Applicable to Community Development Block Grant Recovery Funds, 16824-16825 [2010-7485]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 75, Number 63 (Friday, April 2, 2010)]
[Notices]
[Pages 16824-16825]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-7485]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5401-N-01]


Notice of Modifications to U.S. Commitments Under the World Trade 
Organization Government Procurement Agreement To Implement Agreement 
With Canada Regarding Section 1605 of the Recovery Act (Buy American 
Requirement) Applicable to Community Development Block Grant Recovery 
Funds

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, HUD.

ACTION: Notice.

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DATES: Effective Date: February 16, 2010 through September 30, 2011.
SUMMARY: The domestic purchasing requirement of section 1605(a) of the 
American Reinvestment and Recovery Act of 2009 (Recovery Act) will not 
be applied as a condition of Recovery Act financing in the Community 
Development Block Grants Recovery (CDBG-R) Program with respect to 
Canadian iron, steel, and manufactured products in procurement above 
$7,804,000 for construction services through September 30, 2011.

FOR FURTHER INFORMATION CONTACT: For CDBG-R: Stanley Gimont, Director, 
Office of Block Grant Assistance, Department of Housing and Urban 
Development, 451 Seventh Street, SW., Room 7286, Washington, DC 20410, 
telephone number 202-708-3587. Persons with hearing or speech 
impairments may access this number via TTY by calling the Federal 
Information Relay Service at 800-877-8339. FAX inquiries may be sent to 
Mr. Gimont at 202-401-2044. Except for the ``800'' number, these 
telephone numbers are not toll-free.

SUPPLEMENTARY INFORMATION: The Recovery Act appropriated $980 million 
out of the $1 billion in CDBG-R funds to state and local governments to 
carry out eligible activities on an expedited basis. Section 1605(a) of 
the Recovery Act, the ``Buy American'' provision, states that for 
Recovery Act funds used for a project for the construction, alteration, 
maintenance, or repair of a public building or public work, all of the 
iron, steel, and manufactured goods used in the project must be 
produced in the United States. Interim final guidance (2 CFR Part 176) 
for implementing the Buy American provision was issued by the Office of 
Management and Budget (OMB) on April 23, 2009 at 74 Federal Register 
18449, and applies to CDBG-R grants. HUD issued Buy American guidance 
in CPD Notice 2009-5, issued October 7, 2009, see https://portal.hud.gov/portal/page/portal/HUD/program_offices/administration/hudclips/notices/cpd. OMB is issuing Amendments of Interim Final 
Guidance to reflect changes with respect to U.S. international 
obligations.
    Section 1605(d) of the Recovery Act provides that the Buy American 
requirement in section 1605 shall be applied in a manner consistent 
with U.S. obligations under international agreements. The OMB guidance 
provides that the Buy American requirement shall not be applied where 
the iron, steel, or manufactured goods used in the project are from a 
Party to an international agreement, listed in 2 CFR 176.90(b) and the 
recipient is required under an international agreement, described in 
the Appendix to subpart B of 2 CFR 176, to treat the goods and services 
of that Party the same as domestic goods and services. As of January 1, 
2010, this obligation shall only apply to projects with an estimated 
value of $7,804,000 or more and projects that are not specifically 
excluded from the application of those agreements. Based on the 
recently concluded

[[Page 16825]]

Agreement between the Government of the United States of America and 
the Government of Canada on Government Procurement (Canada-U.S. 
Agreement), the Buy American requirement in section 1605(a) of the 
Recovery Act will not be applied as a condition of Recovery Act 
financing in the CDBG-R Program with respect to Canadian iron, steel, 
or manufactured goods in projects above $7,804,000. This is effective 
February 16, 2010 through September 30, 2011. This means that with 
respect to CDBG-R grantees, Canadian iron, steel, or manufactured goods 
in procurement above the $7,804,000 threshold for construction projects 
shall be treated the same as U.S. iron, steel, or manufactured goods 
for purposes of the Buy American requirement of section 1605 of the 
Recovery Act.
    The United States is not undertaking any other commitments with 
respect to the CDBG-R grants, which means that the CDBG-R grantees can 
continue to apply their own procurement procedures that are consistent 
with HUD requirements. State and local governments receiving CDBG-R 
assistance must continue to follow all other requirements including 
obligation and expenditure requirements. In summary, if a CDBG-R 
grantee has a construction project involving a public work/building, 
and is using CDBG-R as a source of funding for this construction 
project, and the total construction project has an estimated value of 
more than $7,804,000, Canadian-sourced iron, steel and manufactured 
goods may be used and no additional HUD exception will be required.

    Dated: March 29, 2010.
Mercedes M. M[aacute]rquez,
Assistant Secretary for Community Planning and Development.
[FR Doc. 2010-7485 Filed 4-1-10; 8:45 am]
BILLING CODE 4210-67-P