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. `' PENCE/KELLY ~,~~~~N~•.,~o~ CONSTRUCTION, INC. _ ~~ ~ P.O. Box 4109 (503) 399-7223 '~~ ~~Il\~~ ~a 2747 Pence Loop SE (503) 585-7477 Fax Salem, OR 97302-8109 (503) 224-8681 Portland ccs ~aas ist 25, 1999 lohn Whittington, Salem Area Transit 3140 Del Webb Avenue NE Salem, OR 97303-4165 Dear John, Pursuant to the letter I received from you and Billy Wasson regarding foreign reinforcing steel, I offer the following information: l. Harris Rebar Seattle, Inc. who is a subcontractor to our subcontractor, supplies the reinforcing steel for this project. 2. When Harris Rebar reviewed the bid documents for a"Buy America" clause, they looked to specification section 1600, material and equipment, where there was no mention of the "Buy America" requirement. Section 1600 states under 2.1.D that "materials manufactured within a 300 mile radius of the project is preferred over materials procured from a greater distance." The mistake occurred due to the materiat specification section not stating the "Buy America" requirements and Harris Rebar being unaware of the contract obligations Pence/Kelly's subcontractors have. 3. Please review the attached letter from Harris Rebar addressing the quantity and value of foreign steel delivered and used on this project. 4. Apparently, a rebar installer discovered the foreign steel. • 5. The rebar installer reported the discovery to his union business representative and he, in turn, informed Pence/Kelly's on site superintendent. 6. Immediately, upon confirming that there was foreign steel on the project, I contacted the subcontractor supplying the rebar and ordered them to stop the supply of material not in compliance with the "Buy America" requirements. The subcontractor was also ordered to remove any non-conforming material from the project. 7. Pence/Kelly has sent a memo to all our subcontractor's and suppliers to make sure they know the "Buy America" requirements of this project. The material specification section rypically states any "Buy America" requirements. Pence/Kelly was unaware that the project specifications did not include any "Buy America" statement. Pence/Kelly will continue to inform our subcontractors of their contract requirements and become more aggressive in reviewing material before and as it comes on site. There are some foreign products specified on this project. We are in the process of requesting the architect to specify substitute products that comply with the "Buy America" requirements. se don't si e t contact me if I can answer any more questions or can aid in resolving this issue. ~ Si cere , ~ Dav ays, Project Manage Courthouse Square Cc: Bob Hill Bilty Wasson u "Creating Landmarks of Excellence"