HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 779 United States-produced Iron and Steel in Public Works Projects
SPONSOR(S): Griffitts
TIED BILLS: IDEN./SIM. BILLS: SB 674
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Constitutional Rights, Rule of Law & 14 Y, 0 N Poreda Miller
Government Operations Subcommittee
2) State Administration & Technology 8 Y, 2 N Helpling Topp
Appropriations Subcommittee
3) State Affairs Committee 20 Y, 0 N Poreda Williamson
SUMMARY ANALYSIS
Florida law specifies the process for procuring construction services on public property and public owned
buildings and directs the Department of Management Services (DMS) to establish certain applicable
procedures.
Federal law and regulations impose numerous restrictions requiring federal agencies to procure domestic end
products and construction materials produced or manufactured in the United States and require the use of
specific U.S. made construction materials in certain federally funded infrastructure-related projects. Such laws
and regulations permit waivers under specific circumstances.
The bill requires a government entity, as defined by the bill, entering into a contract for a public works project
(project), or for the purchase of materials for a project, to include a requirement that any iron or steel product
permanently incorporated in the project be produced in the U.S. The bill waives the required contract term if
the governmental entity administering the funds for a project or the purchase of materials for a project
determines that any of the following apply:
 Iron or steel products produced in the U.S. are not produced in sufficient quantities, reasonably
available, or of satisfactory quality;
 The use of iron or steel products produced in the U.S. will increase the total cost of the project by more
than 20 percent; or
 Compliance is inconsistent with the public interest.
The bill specifies circumstances where the minimal use of foreign steel and iron materials are permitted and
exempts certain electrical components. The bill further provides that it must be applied in a manner consistent
with the state’s obligations under any international agreement and may not be construed to impair any such
obligations.
Finally, the bill grants rulemaking authority to DMS and the Department of Transportation to implement the bill.
The bill has an indeterminate, but likely significant, negative fiscal impact on state and local government
expenditures. See Fiscal Comments.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Procurement of Construction Services
Florida Law specifies the process for procuring construction services for public property and public
owned buildings.1 The Department of Management Services (DMS) is responsible for establishing by
rule:
 Procedures for determining the qualifications and responsibility of potential bidders prior to
advertising and receiving bids for building construction contracts.
 Procedures for awarding each state agency construction projects to the lowest qualified bidder.
 Procedures to govern negotiations for construction contracts and contract modifications when
such negotiations are determined to be in the best interest of the state.
 Procedures for entering into performance-based contracts for the development of public
facilities when those contracts are determined to be in the best interest of the state. These
procedures include prequalification of bidders, criteria for developing requests for proposals,
accelerated scheduling, and evaluating proposals and awarding contracts using factors such as
price, quality, and concept of the proposal.2
State contracts for construction projects estimated to cost in excess of $200,000 must be competitively
bid.3 A county, municipality, special district, or other political subdivision seeking to construct or improve
a public building must competitively bid the project if the estimated cost exceeds $300,000.4
Current law requires the solicitation of competitive bids or proposals for any state construction project
estimated to cost more than $200,000 to be publicly advertised in the Florida Administrative Register
(FAR) at least 21 days prior to the established bid opening. If the cost of the construction project is
estimated to exceed $500,000, the advertisement must be published in the FAR at least 30 days prior
to the bid opening, and at least once in a newspaper of general circulation in the county where the
project is located at least 30 days prior to the bid opening. 5
In contrast, construction projects under the Department of Transportation (DOT) are governed by ch.
337, F.S. Any person who wants to bid for a construction contract in excess of $250,000 must be
certified by DOT as qualified.6 Certification is also required to bid on a road, bridge, or public
transportation construction project of more than $250,000. 7 The purpose of certification is to ensure
professional and financial competence relating to the performance of construction contracts by
evaluating bidders “with respect to the equipment, past record, experience, financial resources, and
organizational personnel of the applicant necessary to perform the specific class of work for which the
person seeks certification.”8
1 Ch. 255, F.S.
2 S. 255.29, F.S.
3 See s. 255.0525, F.S.; see also R. 60D-5.002 and 60D-5.0073, F.A.C.
4 S. 255.20(1), F.S. For electrical work, local governments must competitively bid projects estimated to cost over $75,000.
5 For counties, municipalities, and political subdivisions, similar publishing provisions apply. See s. 255.0525(2), F.S.
6 S. 337.14(1), F.S. and Ch. 14-22, F.A.C
7 S. 337.14(2), F.S.
8 S. 337.14(1), F.S.
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 Public Works Projects
Current law prohibits the state and political subdivisions from taking certain actions when procuring for
public works projects except as required by federal or state law. The state and political subdivisions
may not:
 Prevent a certified, licensed, or registered contractor, subcontractor, or material supplier or
carrier, from participating in the bidding process based on the geographic location of the
company, offices, or residences of employees;
 Require the contractor, subcontractor, or material supplier or carrier to pay employees a
predetermined amount of wages or prescribe any wage rate; provide a specified type, amount,
or rate of employee benefits to employees; control, limit, or expand staffing; or employ
individuals from a designated, restricted, or single source; or
 Prohibit a contractor, subcontractor, or material supplier or carrier who is able, qualified,
licensed, or certified to perform such work from receiving information about public works
opportunities or from submitting such bids.9
DMS manages projects throughout the state, including new construction, renovations, and consulting
services for various public works projects. Currently, DMS follows guidelines established by The
Leadership in Energy and Environmental Design (LEED) Green Building Rating System, which
recommends that steel and iron be purchased from within a 100-mile radius.10
Federal Laws and Regulations
Federal law and regulations impose numerous restrictions (domestic preference restrictions) requiring
federal agencies to procure, in certain circumstances, domestic end products and construction
materials produced or manufactured in the United States 11 and requires the use of specific U.S. made
construction materials in certain federally funded infrastructure-related projects.12
Buy American Act of 1933: Restrictions on Federal Agency Procurement
The Buy American Act of 193313 (BAA) generally requires federal agencies to purchase “domestic end
products”14 and use “domestic construction materials” 15 for public use16 and contracts above the micro-
purchase threshold (typically $10,000).17 The standard for what is considered a domestic end product
or domestic construction material differs depending on whether the product in question is
unmanufactured or manufactured and whether it consists predominantly of iron or steel. In order to
qualify as domestic for BAA purposes, unmanufactured end products or construction materials not
consisting primarily of iron or steel must be mined or produced in the U.S. Non-iron/steel manufactured
end products and construction materials qualify as domestic if manufactured in the U.S. and either the
cost of the components mined, produced, or manufactured in the U.S. exceeds 60 percent of the cost
of all components or the materials are commercially available off-the-shelf.18 Manufactured end
products or construction materials predominantly comprised of iron or steel are considered domestic if
the domestic iron or steel constitutes at least 95 percent of the cost of all components used in the
product.19
9 S. 255.0992, F.S.
10 S. 255.253(7), F.S. and U.S. Green Building Council, Local Valuation Factor, available at www.usgbc.org/guide/bdc (last visited
February 8, 2024).
11 The Buy American Act and Other Federal Procurement Domestic Content Restrictions, Congressional Research Service, available
at https://crsreports.congress.gov/product/pdf/R/R46748 (last visited February 8, 2024).
12 Congress Expands Buy America Requirements in the Infrastructure Investment and Jobs Act , Congressional Research Service,
available at https://crsreports.congress.gov/product/pdf/IF/IF11989 (last visited February 8, 2024).
13 41 U.S.C. §§ 8301–8305.
14 48 CFR §25.003 (definition of “domestic end products”).
15 48 CFR §25.003 (definition of “domestic construction materials”).
16 41 U.S.C. s. 8302.
17 41 U.S.C. § 8302(a)(2)(C); See also 41 U.S.C. § 1902(a)(1).
18 The Buy American Act, supra n. 12, p. 3. See generally 48 C.F.R. s. 2.101.
19 For domestic end products, this excludes commercially available off-the-shelf fasteners. 48 CFR §25.003 (definition of “Domestic
end product”).
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 Determining whether a product is “manufactured” is a fact-specific question as this term has not been
defined for BAA purposes. However, manufactured articles and materials of iron and steel are deemed
manufactured in the U.S. only if all manufacturing processes involved in the production of such iron and
steel, from initial melting stage to application of coatings, occurs in the U.S. 20 Determining the cost of
components is generally based upon certain costs the contractor incurs when purchasing or
manufacturing the components. The BAA generally requires that a construction contract for public
buildings or public works include a requirement that the contractor acquire domestic construction
materials. The methodology for considering whether an end product is domestic under the BAA applies
to construction materials.21
Federal law provides exceptions to the BAA where a federal agency may waive the BAA requirements
and purchase non-domestic end products or allow the use of non-domestic construction materials.
These exceptions apply when:
 Compliance would be impracticable or inconsistent with public interest;
 Domestic end products or construction materials are not available “in sufficient and reasonably
available commercial quantities and of a satisfactory quality;”
 The goods are acquired specifically for commissary resale;
 The agency procures information technology that is a commercial item;
 The value of the procurements is at or below the micro-purchase threshold;22
 The items are procured for use outside the U.S.; or
 The procuring agency determines that the cost of domestic end products or construction
materials would be “unreasonable.”23
The “unreasonable” standard under BAA is determined by the procuring agency applying a price
preference for domestic construction materials and end products.24 If the domestic offer is not the
lowest offer and BAA restrictions apply to the lowest offer, the procuring agency must determine the
reasonableness of the cost of the domestic offer by adding to the price of the low offer (non-domestic
offer):
 If it is an end product, 20 percent of the low offer, if the lowest domestic offer is from a large
business;
 If it is an end product, 30 percent of the low offer, if the lowest domestic offer is from a small
business; or
 If it is a construction material, 20 percent of the low offer. 25
The domestic offer’s price is considered reasonable if it does not exceed the price of the low offer
following the calculation with the appropriate percentage. 26
BAA requirements may also be waived under the Trade Agreements Act of 1979 (TAA). The TAA
generally authorizes the waiver of the application of any law, regulation, procedure, or practice
regarding government procurement that would result in eligible products from countries with a U.S.
trade agreement, or that meet certain other criteria, being treated less favorably than domestic products
and suppliers.27
20 41 U.S.C. §8303(c)(1).
21 The Buy American Act, supra n. 12, at p. 5.
22 41 U.S.C. §8302(a)(2)(C); See also 41 U.S.C. §1902(a)(1).
23 See, generally, 41 U.S.C. §§8302, 8303. See also The Buy American Act, supra n. 12, at p. 6.
24 48 C.F.R. §25.105(b).
25 48 C.F.R. §25.204.
26 48 C.F.R. §25.105(c).
27 The Buy American Act – Preferences for “Domestic” Supplies: In Brief, Congressional Research Service, available at
https://sgp.fas.org/crs/misc/R43140.pdf (last visited February 8, 2024).
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 Buy America
Buy America, in contrast to the BAA, does not refer to one specific law but pertains to several statutes
and regulations applicable to federal financial assistance used to support certain infrastructure-related
projects carried out by state and local governments.28 Recipients of federal funds are responsible for
complying with Buy America statutes and regulations. 29 Historically, Buy America has generally
required the procurement and use of U.S. made iron and steel and the domestic production and
assembly of certain other manufactured goods in covered federally funded projects. Traditionally, this
has applied to airports, aviation, highways, intercity passenger rail, public transportation, and certain
water-related infrastructure projects.
Under the Infrastructure Investment and Jobs Act (IIJA),30 Buy America requirements have expanded to
apply to other federally-funded infrastructure projects, including broadband infrastructure, real property
and buildings, structures and equipment of electric utilities, and transmission facilities. The IIJA also
expanded requirements to apply not only to iron, steel, and certain manufactured goods, but to other
construction materials, such as nonferrous metals, plastic and polymer-based products, glass, lumber,
and drywall.31
Laws and regulations governing Buy America requirements differ depending on the specific federal
funding program and administering agency.32 Waivers may be granted in limited circumstances at the
discretion of the administering agency. Waivers authorized under previous Buy America laws are also
authorized under the IIJA, including waiving Buy America requirements when such requirements are
inconsistent with the public interest, when domestic end products and materials are not available in
sufficient quantities or of satisfactory quality, and if the use of domestic products will increase the
project cost by a specific threshold.33
Several Buy America laws and regulations prohibit the administering agency from imposing funding
restrictions on federal assistance that restricts a state’s ability to impose stricter requirements on the
federal financial assistance.34 In addition, several states have enacted their own Buy America laws.
State Revolving Fund American Iron and Steel (AIS) Requirement
The Clean Water State Revolving Fund (CWSRF) is a federal-state partnership that provides
communities low-cost financing for a wide range of water quality infrastructure projects. The United
States Environmental Protection Agency (EPA) provides grants to all states to capitalize the loan
programs. The states then contribute an additional 20 percent to match the federal grants. States are
responsible for operating their program and may provide various types of assistance, includin