CLPHA Expresses Concerns about Domestic Materials Sourcing, Timing, Project Cost Impacts in Comments about BABA

CLPHA has submitted comments on the Build America, Buy America (BABA) Request for Information Regarding Iron, Steel, Construction Materials, and Manufactured Products. Chief among CLPHA’s concerns is the general lack of market readiness to meet the demand for certain products, capacity constraints of contractors and PHAs, the potential for projects to be delayed, and the cost impacts on projects.  

CLPHA estimates that Total Development Costs (TDC) may increase by as much as 30-40% during the project planning and predevelopment phase; nearly 73% of construction contractor firms have already “passed on some or all of [their] additional costs.” Moreover, 86% of firms experienced delays due to longer lead times or shortage of materials and 68% of firms experienced delivery delays, including BABA-compliant materials.  

Materials unlikely to be available in sufficient domestic quantities to meet the BABA requirements or that will incur unreasonable cost increases will include: mechanical systems including HVAC and ventilation systems with motors, plumbing fixtures such as faucets, plumbing supplies such as pipes and fittings, electrical components such as switch gears, fixtures and fittings, transformers, wiring and cabling, lumber, appliances such as water heaters, refrigerators, ranges, range hoods, and dishwashers, windows and doors, glass, and systems with integrated technology.  

CLPHA’s recommendations for HUD at this phase of BABA rulemaking include, among others: 

• Create a standardized American-Made label indicating the product complies with BABA; 
• Create standardized contractual provisions for use in RFPs; 
• Amend the 25% Unreasonable Cost waivers for redevelopment projects; 
• Adopt a temporary categorical waiver for technology systems; 
• Grandfather pre-existing, ongoing projects into compliance with BABA; 
• Provide contractors with clarity on bid bonds. 

If your organization plans to submit comments on this RFI, please send a copy to Malcolm Guy (mguy@clpha.org).