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PA Bulletin, Doc. No. 13-234

STATEMENTS OF POLICY

DEPARTMENT OF GENERAL SERVICES

[ 4 PA. CODE CH. 67a ]

Steel Products Procurement

[43 Pa.B. 877]
[Saturday, February 9, 2013]

 The Department of General Services (Department) adopts a statement of policy in Chapter 67a (relating to steel products procurement—statement of policy) to read as set forth in Annex A. Chapter 67a implements the act of October 24 (P. L. 1284, No. 159) (Act 159), which amended section 4 of the Steel Products Procurement Act (act) (73 P. S. § 1884(b)).

Background

 The act requires that every public agency require every contract document for the construction, reconstruction, alteration, repair, improvement or maintenance of public works contain a provision that, if steel products are to be used or supplied in the performance of the contract, only steel products as defined by the act shall be used or supplied in the performance of a contract or subcontracts thereunder. Section 6 of the act (73 P. S. § 1886) defines a ''steel product'' as:

Products rolled, formed, shaped, drawn, extruded, forged, cast, fabricated or otherwise similarly processed, or processed by a combination of two or more of such operations, from steel made in the United States by the open hearth, basic oxygen, electric furnace, Bessemer or other steel making process and shall include cast iron products and shall include machinery and equipment listed in United States Department of Commerce Standard Industrial Classification 25 (furniture and fixture), 35 (machinery, except electrical) and 37 (transportation equipment) and made of, fabricated from, or containing steel components. . . .

 However, this section does not apply when the head of the public agency, in writing, determines that steel products are not produced in the United States in sufficient quantities to meet the requirements of the contract. Act 159 expands upon this exception by eliminating the need for the written determination if a steel product that is not produced domestically in sufficient quantities to meet contract requirements is identified on a preapproved list created by the Department. The contractor is not required to complete a waiver form if the steel product to be utilized on the project is on the list of exempt machinery and equipment steel products. Act 159 charges the Department with creating a list of exempt machinery and equipment steel products that have been identified by the Department as not domestically produced in sufficient quantities to meet contract requirements. If the product is identified on the list, it is exempt from the act.

Purpose

 Chapter 67a outlines the procedure for creating the list of exempt products and establishes a procedure for resolving disputes regarding steel products on the list. The Department does not intend to give the policies or procedures the weight or deference of adjudications or regulations.

Fiscal Impact

 The implementation of this statement of policy does not present significant fiscal impact to the Department.

Effective Date

 This statement of policy shall take effect immediately upon publication in the Pennsylvania Bulletin.

Contact Person

 Specific questions relating to information provided in this statement of policy may be directed to the Department of General Services, Office of Chief Counsel, 603 North Office Building, Harrisburg, PA 17125.

SHERI PHILLIPS, 
Secretary

 (Editor's Note: For a notice relating to this statement of policy, see 43 Pa.B. 940 (February 9, 2013).)

 (Editor's Note: Title 4 of the Pennsylvania Code is amended by adding a statement of policy in § 67a.1 to read as set forth in Annex A.)

 Fiscal Note: 8-18. No fiscal impact; (8) recommends adoption.

Annex A

TITLE 4. ADMINISTRATION

PART III. DEPARTMENT OF GENERAL SERVICES

Subpart C. CONSTRUCTION AND PROCUREMENT

ARTICLE II. CONSTRUCTION

CHAPTER 67a. STEEL PRODUCTS PROCUREMENT—STATEMENT OF POLICY

Sec.

67a.1.Exempt machinery and equipment steel products.

§ 67a.1. Exempt machinery and equipment steel products.

 (a) The initial list of exempt steel products will be compiled by the Deputy Secretary for Public Works or a designee from waiver forms submitted and approved in the previous 2 calendar years. The list will be published in the Pennsylvania Bulletin and the public will have 30 days to submit written comments as to the domestic availability of a steel product on the list.

 (b) Written comments shall be submitted in writing to the Deputy Secretary for Public Works, Department of General Services, 18th and Herr Streets, Harrisburg, Pennsylvania 17125, or submitted to ra-steel@pa.gov. The writing must be supported with a mill certification indicating that the steel was melted in the United States of America or an executed Steel Origin Certification form, found on the Department's web site, indicating the disputed product is produced domestically.

 (c) The Deputy Secretary for Public Works or a designee will review the comments and supporting evidence and may request additional information required to make a determination as to whether the product is produced domestically in sufficient quantities to meet contract requirements. If the disputed steel product is found to be produced domestically in sufficient quantities, the steel product may be removed from the list prior to publication on the Department's publicly accessible web site.

 (d) Following the 30-day public comment period and the Department of General Services' (Department) review of disputed steel products, if any, the official annual list will be posted to the Department's publicly accessible web site. The Department will not make changes to the official annual list for 1 year from the date of publication on the web site. The Department will solicit comments and publish an updated annual list in the Pennsylvania Bulletin in the next calendar year.

 (e) For each subsequent annual list, the Department will identify specific machinery and equipment steel products that have been recognized as not being produced in the United States in sufficient quantities to meet the previous year's contract requirements. The Department will utilize the previous annual list and add steel products from ''not domestically manufactured'' forms submitted and approved by the Department during the previous calendar year. The list will be published in the Pennsylvania Bulletin and the public will have 30 days to comment on the list. Disputed steel products will be resolved as stated in this section.

 (f) The Department will update the list of exempt steel products on or about January 31st of each calendar year.

 (g) Contractors, subcontractors, suppliers, bidders, offerors and public agencies may rely on the list of exempt steel products in preparing bids and contracts for any project that is subject to the Steel Products Procurement Act (73 P. S. §§ 1881—1887).

 (h) Chapter 5, Subchapter A of 2 Pa.C.S. (relating to practice and procedure of Commonwealth agencies) does not apply to this chapter.

[Pa.B. Doc. No. 13-234. Filed for public inspection February 8, 2013, 9:00 a.m.]


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