Buy America Manufactured Products Requirements Now in Effect

VDOT contractors working on federally funded transportation projects are reminded that the first phase transitioning to the updated Buy America requirements for manufactured products took effect on October 1, 2025.

For years, the FHWA has utilized its waiver authority to exempt various items from a mandate that they be manufactured domestically. The elimination of the broadly applied waiver marks the first phase of stricter domestic content requirements under the Build America, Buy America Act, introduced with IIJA.

Phased Implementation for FHWA-Funded Projects

October 1, 2025: The first part of the domestic content test takes effect for projects obligated on or after this date. This is the "final assembly requirement," which mandates that the manufactured product must be manufactured in the United States. The percentage criteria does not yet apply at this stage.

October 1, 2026: The second part of the domestic content test takes effect for projects obligated on or after this date. This is the percentage criteria, which is the 55% domestic components requirement. For these projects, the manufactured product must:

• Be manufactured in the United States (final assembly requirement).
• Have the cost of components mined, produced, or manufactured in the United States be greater than 55% of the total cost of all components.

Calculating Component Costs

The 55% domestic content calculated threshold is based on:

• For purchased components: acquisition costs, transportation costs to the place of incorporation, and applicable duties
• For self-manufactured components: all manufacturing costs, transportation costs, and allocable overhead (excluding profit)

New VDOT Provision Combines Compliance Requirements

VDOT has issued Special Provision SP107-003200-01 (dated October 3, 2025) for Made in the USA Requirements.  The new provision combines the latest Buy America requirements for Manufactured Products, including changes for Iron and Steel products, and combines it with current Special Provisions for Use of Domestic Material [iron and steel] (SP102-000510-00) and the Buy America Preference Requirements for Construction Materials (SP107-003000-00).

Key Provision Requirements

• You must buy American for just about everything that stays in the project. This rule is based on both the old Buy America Act and the newer BABA requirements
• Materials fall into four groups (Iron/Steel, Manufactured Products, BABA Construction Materials, and Excluded Materials), and each has its own "Made in the USA" rules
• Materials like cement, stone, sand, gravel, and binding agents are exempt from these requirements
• Watch your limits! You can only use a tiny bit of foreign material:
  • For Iron or Steel, the limit is the greater of 0.1% of the contract or $2,500.
  • For Manufactured Products and BABA Construction Materials combined, the non-compliant total can't exceed the lesser of $1,000,000 or 5% of all applicable costs
• Contractor Burden of Proof -  Before putting in any covered items, you need to sign a Certificate of Compliance (Forms C-76, C-76A, C-76B). You also must keep all the supporting documents, like mill reports, for five years after the project is done
• Waivers may only be issued by FHWA and you should not rely on a waiver to be granted

VTCA’s members are encouraged to closely review VDOT’s requirements and maintain open communication with suppliers and manufacturers to ensure they can provide the necessary supporting compliance documentation. With the 55% domestic content for manufactured products requirement coming into full effect in less than a year, contractors, suppliers, and manufacturers are encouraged to review the requirements and start preparing for the more stringent rule.

VDOT contract requirements and references to Federal provisions can be found in VDOT’s Special Provision SP107-003200-01.