Laserfiche WebLink
September 16, 1999 <br />A JOINT PROJECT BY <br />Marion County Dave Hays <br />Board of Commissione~ Project Manager, Courthouse Square <br />(503) 588-5212 PencelKelly Consttuction, Inc. <br />Randall Franke P.O. Box 4109 <br />Patti Mine 2747 Pence Loop <br />Mike Ryan Salem, OR 97302 <br />Salem Area Mass D~ Dave, <br />Transit District <br />Board of Directo[s ~~ ou for our letter of August 25, 1999, in which you provided responses <br />(503) 588-2424 y y <br />~~~5 c~~a~uo to our Buy America inquiries concerning the foreign rebar that was <br />~eo~e seu inadvertently used in the Courthouse Square project. I also received yow <br />~'"'~''~Of'"SO" attachment from Harris Rebar. <br />Marcia Kelley • <br />Dennis Koho <br />E"0 T~,p ~ It appears that, despite the "flow down" requirement of the FTA clauses that <br />~ were a part of the Courthouse Square contract, the Buy America requirement <br />was not fully communicated through the ranks from contractor to <br />subcontractors, and that Harris Rebar did not ascertain that such a requirement <br />did exist on this project. There does not seem to be any willful disregard of the <br />Federal provisions. From that standpoint, the District and County are <br />comfortable that the steps that have been taken to preclude any further <br />breaches of the Buy America are appropriate and will be effective. <br />However, Federal regulations are clear that grant-funded projects cannot use <br />project funds to pay for foreign steel or other manufactured products under the <br />Buy ~nerica provisions. And, clearly, there is some foreign rebar buried in <br />cement in the project. Neither the District nor the County, therefore, may use <br />any of the project's funds to cover the cost of the foreign rebar that may have <br />been used in the consttuction, prior to discovery and cessation of use. <br />Reviewing the Harris letter of August 13, we have concluded that the <br />maximum tonnage of foreign steel that could have been used in the project is <br />20 tons, which would have a value of $5,200. We will be initiating a change <br />order to the contract in this amount. If you or your subcontractors have clear, <br />compelling documentation which indicates a different amount of foreign rebar <br />being used in the project tban that shown above, you should provide that <br />information as we proceed through the change order process. <br />• <br />