Sewer Improvements Project Manual.pdf

The Power of Commitment

12671070 | Project Manual 1

CITY OF MIDWAY, TEXAS

CITY OF MIDWAY

TDA SEWER IMPROVEMENTS

PROJECT

CDV23-0164

PROJECT MANUAL

12671070 | Project Manual 2

PROJECT MANUAL

CITY OF MIDWAY

MIDWAY, TEXAS

CDV23-0164

Prepared by:

GHD, Inc.

11451 Katy Fwy, Suite 400 Houston, Texas 77079 www.ghd.com

Issue For Bid 2 September 2026 http://www.ghd.com/

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TABLE OF CONTENTS

CITY OF MIDWAY

MIDWAY, TEXAS

CDV23-0164

1. CONSTRUCTION ADVERTISEMENT AND INVITATION FOR BIDS 6

2. INSTRUCTION TO BIDDERS 7

3. SECTION 3 POLICY ISSUANCE FOR CONSTRUCTION CONTRACTS 12

4. BUILD AMERICA, BUY AMERICA INSTRUCTIONS AND FORMS 15

5. STATEMENT OF BIDDER’S QUALIFICATIONS 28

6. CONFLICT OF INTEREST QUESTIONNAIRE 31

7. NON-COLLUSION AFFIDAVIT OF PRIME BIDDER 31

8. BID FORM 33

9. BID BOND 36

10. CERTIFICATE AS TO CORPORATE PRINCIPAL 37

11. CERTIFICATION OF BIDDER REGARDING CIVIL RIGHTS LAWS AND

REGULATIONS 38

12. CONTRACTOR’S LOCAL OPPORTUNITY PLAN 39

13. PROPOSED CONTRACTS BREAKDOWN 41

14. CERTIFICATION REGARDING LOBBYING 43

15. DISCLOSURE OF LOBBYING ACTIVITIES AND INSTRUCTIONS 44

16. DISCLOSURE OF LOBBYING ACTIVITIES 46

17. DAVIS-BACON LABOR STANDARDS REQUIREMENTS FOR TXCDBG

PROJECTS 47

18. FEDERAL LABOR STANDARDS PROVISION 48

19. TITLE 29: LABOR 58

20. MINORITY/FEMALE GOALS AND TIMETABLES 62

21. LABOR STANDARDS AND PREVAILING WAGE REQUIREMENTS 64

22. PROJECT-SPECIFIC GENERAL WAGE DECISION 66

23. PROJECT-SPECIFIC ENVIRONMENTAL MITIGATION MEASURES 67

24. TEMPORARY SIGNAGE REQUIREMENTS 68

25. PROJECTS REQUIRING PERMANENT SIGNAGE 69

26. SAMPLE CONSTRUCTION CONTRACT 70

27. GENERAL CONDITIONS FOR CONSTRUCTION CONTRACTS 72

28. SECTION 504 CERTIFICATION 88

29. PAYMENT BOND 89

30. PERFORMANCE BOND 91

31. CERTIFICATE OF LIABILITY INSURANCE 93

32. CERTIFICATE OF INTERESTED PARTIES FORM 1295 AND INSTRUCTIONS 94

33. ATTORNEY'S REVIEW CERTIFICATION 96

34. REQUIRED CONTRACT PROVISIONS 98

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35. CHANGE ORDER FORM 113

36. CERTIFICATE OF CONSTRUCTION COMPLETION (COCC) 116

37. CONTRACTOR’S FINAL PAYMENT AFFIDAVIT 117

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BIDDING AND CONTRACTING REQUIREMENTS

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1. CONSTRUCTION ADVERTISEMENT AND INVITATION FOR BIDS

The City of Midway will receive bids for TDA CDV23-0164 Sewer Improvements Project until 5:00 PM (CST) on September 17, 2026, at 12250 Highway 21E, Midway, TX 75852. Bids must be addressed to Debra Newkirk, City Secretary/Administrator. The bids will be publicly opened and read aloud 10:00 AM (CST) on September 21, 2026, at 12250 Highway 21E, Midway, TX 75852.

Bids are invited for several items and quantities of work as follows:

1. Rehabilitate four (4) lift stations and all associated appurtenances

2. Rehabilitate five (5) manholes, and all associated appurtenances

3. Furnish one (1) recirculation pump and one (1) discharge flow meter at the wastewater treatment plant

Complete digital project bidding documents may be reviewed and obtained from www.CivcastUSA.com:

search “City of Midway TxCDBG Sewer Improvements.” Contractors may also review the bidding documents at Midway City Hall, 12250 Highway 21E, Midway, TX 75852. Bidders must register on this website to view and/or download documents for this Project. There is NO charge to view or download documents. Please contact CivcastUSA.com for assistance with free membership registration, downloading, and working with this digital platform.

A bid bond in the amount of 5 percent of the bid issued by an acceptable surety shall be submitted with each bid [for those contracts that exceed $100,000]. A certified check or bank draft payable to the City of Midway or negotiable U.S. Government Bonds (as par value) may be submitted in lieu of the Bid Bond.

Attention is called to the fact that not less than the federally determined prevailing (Davis-Bacon and Related Acts) wage rate, as issued by the Texas Department of Agriculture Office of Rural Affairs and contained in the contract documents, must be paid on this project. In addition, the successful bidder must ensure that employees and applicants for employment are not discriminated against because of race, color, religion, sex, sexual identity, gender identity, or national origin. All contractors and subcontractors must be cleared (not suspended or debarred) prior to any formal action authorizing the award of a contract to the contractor. Minority Business Enterprises, Small Business Enterprises, Women Business Enterprises, Veteran-Owned Businesses, and Section 3 Businesses are encouraged to submit bids.

This solicitation is for services related to a project that is subject to the Build America, Buy America Act (BABA) requirements under Title IX of the Infrastructure Investment and Jobs Act. Absent an approved waiver, all iron, steel, manufactured products, and construction materials used in this project must be produced in the United States.

The City of Midway reserves the right to reject any or all bids or to waive any informalities in the bidding.

Bids may be held by City of Midway for a period not to exceed 30 days from the date of the bid opening for the purpose of reviewing the bids and investigating the bidder’s qualifications prior to the contract award.

City of Midway Randal Dorman, City of Midway Mayor 1 September http://www.civcastusa.com/

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2. INSTRUCTION TO BIDDERS

1. Use of Separate Bid Forms

These contract documents include a complete set of bid and contract forms which are for the convenience of the bidders and are not to be detached from the contract document, completed or executed. Separate bid forms are provided for your use.

2. Interpretations or Addenda

No oral interpretations will be made to any bidder. Each request for clarification shall be made in writing to the Grant Recipient or engineer no less than seven (7) days prior to the bid opening. Each interpretation made will be in the form of an Addendum to the contract documents and will be distributed to all parties holding contract documents no less than seven (7) days prior to the bid opening. It is, however, the bidder's responsibility to make inquiry as to any addenda issued. All such addenda shall become part of the contract documents and all bidders shall be bound by such addenda, whether or not received by the bidders.

If an addendum to the bid package is necessary, it must be distributed to each potential bidder. The distribution of an addendum shall be verified either by statements of receipt or registered/certified mail receipts, which shall be included in the public works construction file. The addendum shall allow adequate time for consideration in bid preparation (usually at least one week). If adequate time is not available, the bid opening date must be extended and the Grant Recipient must republish the invitation for bids containing the place, time, and date for the new bid opening. Note that any change to the original bid opening date will require republication of the invitation for bids at least once in a locally published newspaper. The republished notice will include the place, time and date for the new bid opening and must be published at least seven days prior to the new bid opening date.

3. Inspection of Site

Each bidder should visit the site of the proposed work and should become acquainted with the existing conditions and facilities, the difficulties and restrictions pertaining to the performance of the contract. The bidder should thoroughly examine and become familiar with the drawings, technical specifications and all other contract documents. The contractor by the execution of the contract shall in no way be relieved of any obligation under it due to failure to receive or examine any form or legal document or to visit the site or the conditions existing at the site. The City will be justified in rejecting any claim based on lack of inspection of the site prior to the bid.

4. Alternate bid items

No alternate bids or bid items will be considered unless they are specifically requested by the technical specifications.

OR

If Alternate A is selected, bid items 1 and 2 will be removed entirely from the base bid and replaced with alternate bid items A1 and A2 prior to determining the low bidder.

OR

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If Deductive Alternate A is selected, the unit price for each corresponding base bid item will be applied to each deductive bid item. Do not alter the unit price in calculating the Deductive Alternate.

5. Bids

a. All bids must be submitted on the forms provided and are subject to all requirements of the Contract Documents, including the Drawings.

b. All bids must be regular in every respect and no interlineation, excisions or special conditions may be made or included by the bidder.

c. Bid documents, including but not limited to the bid, the bid bond(s), the contractor’s certifications, local opportunity plan, and the statement of the bidder’s qualifications, shall be sealed in an envelope and clearly labeled with the words "Bid Documents”, the project number, name of bidder and the date and time of bid opening.

d. The City may consider as irregular any bid on which there is an alteration of or departure from the bid form and, at its option, may reject any irregular bid.

e. If a contract is awarded, it will be awarded to a responsible bidder on the basis of the lowest/best bid and the selected alternate bid items, if any. The contract will require the completion of the work in accordance with the contract documents.

6. Bid Modifications Prior to Bid Opening

a. Any bidder may modify its bid by submitting a modification or supplemental bid at any time prior to the scheduled closing time for receipt of bids, provided such modification or supplemental bid is received by the locality prior to the closing time. The modification or supplemental bid should not reveal the original bid price but should provide only the addition, subtractions or other modifications to the original bid so that the final prices or terms will not be known by the locality until the sealed bid is open.

7. Bid Bond

a. A bid bond in the amount of 5% of the bid issued by an acceptable surety shall be submitted with each bid [for contracts greater than $100, 000,]. A certified check or bank draft payable to the locality or negotiable U.S. Government Bonds (as par value) may be submitted in lieu of the Bid Bond.

b. The bid bond or its comparable will be returned to the bidder as soon as practical after the opening of the bids.

8. Statement of Bidders Qualifications

Each bidder shall submit on the form furnished for that purpose a statement of the bidder's qualifications.

The Grant Recipient shall have the right to take such steps as it deems necessary to determine the ability of the bidder to perform its obligations under the contract, and the bidder shall furnish the Grant Recipient

12671070 | Project Manual 9 all such information and data for this purpose as it may request. The right is reserved to reject any bid where an investigation of the available data does not satisfy the Grant Recipient that the bidder is qualified to carry out properly the terms of the contract.

9. Unit Price

The unit price for each of the several items in the bid shall include its pro rata share of overhead so that the sum of the products obtained by multiplying the quantity shown for each item by the unit price bid represents the total bid. Any bid not conforming to this requirement may be rejected as informal.

The Department will sum the products of the quantities and the unit prices bid in the proposal form, including any selected alternates, to determine the official total bid amount. The official total bid amount is the basis for determining the apparent low Bidder. The total bid amounts will be compared and the results made public.

Special attention is drawn to this condition, as the unit prices will be used to determine the total bid price and the amount of any change orders resulting from an increase or decrease in quantities.

10. Corrections

Erasures or other corrections in the bid must be noted over the signature of the bidder.

11. Time for Receiving Bids

Bids received prior to the advertised hour of opening shall be kept securely sealed. The officer appointed to open the bids shall decide when the specified time has arrived and no bid received thereafter will be considered; except that when a bid arrives by mail after the time fixed for opening, but before the reading of all other bids is completed, and it is shown to the satisfaction of the Grant Recipient that the late arrival of the bid was solely due to delay in the mail for which the bidder was not responsible, such bid will be received and considered.

12. Opening of Bids

The City shall, at the time and place fixed for the opening of bids, open each bid and publicly read it aloud, irrespective of any irregularities therein. Bidders and other interested individuals may be present.

13. Withdrawal of Bids

Bidder may withdraw the bid before the time fixed for the opening of bids, by communicating its purpose in writing to the Grant Recipient. Upon receipt of such notice, the unopened bid will be returned to the bidder.

The bid guaranty of any bidder withdrawing his bid will be returned promptly.

14. Award of Contract/Rejection of Bids

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a. The contract will be awarded to the responsive, responsible Bidder submitting the lowest/best bid.

The bidder selected will be notified at the earliest possible date. The locality reserves the right to reject any or all bids and to waive any informality in bids received where such rejection or waiver is in its interest.

b. The Grant Recipient reserves the right to consider as unqualified to do the work any bidder who does not habitually perform with his own forces the major portions of the work involved in construction of the improvements embraced in this contract.

15. Execution of Agreement/Performance and Payment Bonds

a. Performance Bonds - Requires all prime contractors which enter into a formal contract in excess of $100,000 with the State, a county, or a municipality; a department, board, or agency of the state, a county, or a municipality; and a school district or a subdivision thereof, to obtain a Performance Bond in the amount of the contract before commencing with work

b. Payment Bonds - Requires all prime contractors which enter into a formal contract with the State, a county, or a municipality; a department, board, or agency of the state, a county, or a municipality; and a school district or a subdivision thereof, to furnish to the governmental entity a payment bond in the amount of the contract. The payment bond must be filed within 30 days from the date of the Notice of Award:

o Municipalities: If the contract is in excess of $50,000, a payment bond is required.

o Counties: If the contract is in excess of $25,000, a payment bond is required.

c. The failure of the successful bidder to execute the agreement and supply the required bonds within thirty (30) days from the date of the notice of award-or within such extended period as the locality may grant, shall constitute a default and the locality may, at its option, either award the contract to the next lowest responsible bidder, or re-advertise for bids. In either case, the locality may charge against the bidder the difference between the amount of the bid, and the amount for which a contract is subsequently executed irrespective of whether this difference exceeds the amount of the bid bond. If a more favorable bid is received through re-advertisement, the defaulting bidder shall have no claim against the locality for a refund.

16. Wages and Salaries

Attention is particularly called to the requirement of paying not less than the prevailing Davis Bacon Related Acts (DBRA) wage rates specified in the Contract Documents. These rates are minimums to be paid during the life of the contract. It is therefore the responsibility of the Bidder to inform themselves as to local labor conditions.

17. Equal Employment Opportunity

Attention is called to the requirements for ensuring that employees and applicants for employment are not discriminated against because of race, color, religion, sex, sexual identity, gender identity, or national origin, and other civil rights requirements.

18. Certification Regarding Lobbying

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Contractors who apply or bid for an award of $100,000 or more shall provide the required certification that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer of employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining a Federal contract, grant or any other award covered by 31 USC § 1352.

19. Build America, Buy America (BABA) – Domestic Preference

Pursuant to the Buy America Build America Act (BABA), Grant Recipients that receive funding for infrastructure project must ensure that:

(1) all iron and steel used in the project are produced in the United States - this means all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States;

(2) specifically listed manufactured products - this means the manufactured product was manufactured in the United States; or the cost of the components of the manufactured product that are mined, produced, or manufactured in the United States is greater than 55 percent of the total cost of all components of the manufactured product, unless another standard for determining the minimum amount of domestic content of the manufactured product has been established under applicable law or regulation; and All manufacturing processes occurred in the United States:

a. Metals other than iron or steel (non-ferrous metals),

b. Lumber,

c. Composite building materials, and

d. Plastic and polymer-based pipe and tube materials, including PVC pipe.

The Buy America preference only applies to articles, materials, and supplies that are consumed in, incorporated into, or affixed to an infrastructure project. As such, it does not apply to tools, equipment, and supplies, such as temporary scaffolding, brought to the construction site and removed at or before the completion of the infrastructure project. Nor does a Buy America preference apply to equipment and furnishings, such as movable chairs, desks, and portable computer equipment, that are used at or within the finished infrastructure project but are not an integral part of the structure or permanently affixed to the infrastructure project.

Documentation of BABA compliance must be provided for a minimum of 95% of all iron, steel, manufactured products, and construction materials used in the project. The bidder must provide an itemization to identify the products, quantities, and costs as support documentation using Form A400 included in this solicitation. The bid tab is generally not sufficiently detailed to itemize each separate product or material.

All contractors must provide written evidence from the manufacturer or supplier that:

o Identifies the item purchased;

o Affirms the location of manufacture as within the United States; and o If signed by an authorized company representative.

A form, A400 and its instructions (form A401), along with BABA Contractor Certification (Form A402) and BABA Manufacturer Certification (Form A403) are provided with this packet to assist in compliance with these requirements.

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3. SECTION 3 POLICY ISSUANCE FOR CONSTRUCTION CONTRACTS

Federal Revisions for Section 3 Requirements – TDA Policy Issuance CDBG 20-01

Effective Date: July 1, 2021

Applicability:

Section 3 of the Housing and Urban Development Act of 1968 requires that, to the greatest extent feasible, economic opportunity generated by CDBG funds and other HUD assistance, most importantly employment, is directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing, as well as residents of the community in which the federal funds are spent.

o The requirements apply to the entire project that is funded with Section 3 covered financial assistance, regardless of whether the Section 3 project is fully- or partially-funded with CDBG assistance.

o All construction and administrative services contracts must comply with the requirements below.

o Section 3 goals and data reporting requirements generally do not apply to contracts for materials, planning, and professional services. Professional services include non-construction services that require an advanced degree or professional licensing (e.g., engineering, architecture, land surveying, accounting).

Construction Contractor Compliance Overview:

Please note that Federal rules do not require Grant Recipients to contract or subcontract with a Section 3 business concern, nor do the rules require hiring of Section 3 workers. However, Grant Recipients must be able to demonstrate that, where possible, contracting, employment, and training opportunities were made available to workers and businesses meeting Section 3 designation criteria.

Under the revised Section 3 Policy, Construction Contractors are required to complete the following. Please return all completed forms to your GrantWorks Project Manager or Labor Standards Specialist.

Include required contract clauses in all construction contracts and subcontracts. See Required Contract Clause- Section 3 Compliance Terms and Conditions

Complete the Certification of Bidder Regarding Civil Rights Laws and Regulations

Demonstrate outreach efforts to recruit Section 3 residents for employment. See Section 3 Requirements for Outreach and Reporting

Confirm the Section 3 Status of your business by doing ONE of the following:

o Completing Form A1023 Certification as Section 3 Business Concern o Providing documentation (e.g. screenshot, print out) of your business’ inclusion on any list or database published by HUD reporting Section 3 Status, such as HUD’s Section 3 Business Registry - https://portalapps.hud.gov/Sec3BusReg/BRegistry/BRegistryHome

Confirm the Section 3 Status of all employees by doing ONE of the following:

o Complete Form A1022- Employer Certification Form for Section 3 listing all employees and their Section 3 Status (to be completed by prime contractor) -OR-o Have each employee complete Form GW1022- Employee Self-Certification Form for Section 3 and submit that form with their first payroll

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Section 3 Definitions:

Section 3 is a provision of the Housing and Urban Development Act of 1968 for the purpose of ensuring that employment and other economic opportunities generated by certain HUD financial assistance shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing, and to business concerns which provide economic opportunities to low- and very low-income persons.

Section 3 status may be applied to individuals designated by HUD as either SECTION 3 WORKERS or TARGETED SECTION 3 WORKERS and to businesses identified as SECTION 3 BUSINESS CONCERNS:

Section 3 Worker:

A Section 3 Worker is any worker who currently fits, or when hired within the past five years fit, at least one

(1) of the following categories, as documented:

1) The worker’s income for the previous or annualized calendar year is below the income limit established by HUD

2) The worker is employed by a Section 3 business concern; or

3) The worker is a YouthBuild participant

Targeted Section 3 Worker:

A Targeted Section 3 Worker for Housing and Community Development Financial Assistance Projects is a Section 3 Worker who:

1) Is employed by a Section 3 Business Concern; or

2) Currently fits or when hired fit at least one of the following categories, as documented within the past five (5) years:

a. Living within the service are or the neighborhood of the project; or

b. A YouthBuild participant

Residents based outside the project Service Area DO NOT qualify as Targeted Section 3 Workers. See attached Project Service Area Map for exact boundaries.

Section 3 Business Concern:

A Section 3 Business Concern is a business that meets at least one of the following criteria, documented within the last six (6) month period:

1) At least 51% owned and controlled by low- or very low-income persons;

2) Over 75% of the labor hours performed for the business over the prior three-month period are performed by Section 3 workers; or

3) A business at least 50% owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing.

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Reporting of labor hours for Section 3 Compliance will be determined by employee hours on Payroll Reports. The Section 3 status of each employee must be documented on the following forms and submitted to the GrantWorks Labor Standards Specialist within 30 days of construction completion.

Section 3 Requirements for Outreach and Reporting

Contractors are required to access the following resources to identify potential Section 3 employees IF any new employees are needed, OR if vacancies exist for work on the project:

o Texas Workforce Solutions - https://www.workintexas.com; or o Local Workforce Solutions Office (WIOA One Stop Shop), if applicable -https://www.twc.texas.gov/directory-workforce-solutions-offices-services

Job vacancies posted at https://www.workintexas.com should include the notation Sec3 in the job title and job description. Instructions are attached. A copy of the posting must be provided for the project file.

While contractors are not required to employ Section 3 Workers, they must demonstrate an effort to identify potential employees as appropriate, including documentation for any applicants that are Section 3 Workers.

Similarly, all outreach efforts and attempts to comply with Section 3 guidelines, as well as any impediments encountered despite the efforts undertaken, as applicable.

Documentation of outreach efforts must be maintained and submitted to the GrantWorks Project Manager or Labor Standards Specialist.

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A401

Build America, Buy America (BABA) Implementation Procedures for the Texas Community Development Block Grant Program (TxCDBG)

Overview

The following checklist, instructions, definitions, and frequently asked questions (FAQs) are for projects funded by the Texas Department of Agriculture with funds allocated by the U.S. Department of Housing and Urban Development (HUD) through the Community Development Block Grant Program. The information provided in this document is based on the Build America, Buy America Act (BABA), Office of Management and Budget (OMB) guidance, and HUD guidance, among other resources.

This document will be added to or updated as necessary, including if subsequent guidance is proposed and finalized by HUD or OMB. This document is designed to assist Grant Recipients with navigating BABA requirements as they apply to the TxCDBG Program. Grant Recipients are encouraged to reach out to their Grant Specialist or TDA’s BABA Subject Matter Expert with general questions not covered in this document or any project-specific questions.

Table of Contents

Section 1: BABA Activities Checklist Section 2: BABA Instructions Documenting Materials for BABA Compliance Payment Request Procedures Project Completion Waiver Status Option Meanings Section 3: BABA Definitions Materials vs Components Iron and Steel Products Section 70917(c) Materials Construction Materials Manufactured Products Section 4: BABA FAQs If a material complies with the Buy American Act, does it also comply with BABA?

How should materials be classified for BABA reporting purposes?

What documents will TDA accept as proof of BABA compliance?

Will TDA accept a fillable certification letter for materials?

What happened to the A400 BABA Compliance Form?

Why would TDA and manufacturers classify certain materials under different categories?

What happens if I don’t comply with BABA requirements?

Are there any resources available to help locate BABA-compliant products?

Are there any waivers available?

Appendix 1: Waiver Request Process Step-by Step Waiver Process Required Information to Submit a Waiver Request Appendix 2: Project Material List

Certification of Bidder Regarding BABA Requirements for TxCDBG Projects

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Section 1: BABA Activities Checklist

ACTIVITY Consultant Engineer/ Architect Contractor

A. Pre-Award While preparing the bid packet, identify bid items that will, or are likely to include BABA Applicable Materials.

Include BABA Requirements when advertising for bids to ensure responsible bid responses. Best Practice: include the Certification of Bidder Regarding BABA Requirements for TxCDBG Projects (on page 12) in the bid packet

B. Post-Award At the Pre-Construction meeting, finalize list of all materials to be used for the project based on the bid awarded and provide to the Grant Administrator.

Enter list of all permanently installed materials to be used for the project into the BABA Reporting page under the Group B Performance Report in TDA-GO.

As materials are ordered, request a Manufacturer’s Certification for all BABA-applicable materials for which a waiver is not being claimed and upload them to the correct material row on the BABA Reporting page.

Review and update the BABA Reporting page throughout the life of the grant with each submitted Change Order or Construction MSR.

C. Payment Requests Review BABA Reporting page prior to submitting each payment request and ensure the necessary Manufacturer’s Certifications are uploaded. TDA will not release funds for materials that require BABA certification unless the certification is uploaded to the BABA Reporting page.

D. Project Completion On the BABA Reporting Page, select “Print Document” in the left navigation menu. Have the Authorized Official initial and upload to the Project Completion Report (and Grant Overview page if applicable).

Section 2: BABA Instructions

Documenting Materials for BABA Compliance:

The purpose of the BABA Reporting page in TDA-GO is to document ALL permanently installed materials being used in a project to ensure BABA compliance. ALL permanently installed materials, including materials that are not BABA Applicable, must be listed on this page so TDA can ensure all compliance requirements are met and provide appropriate technical assistance to help prevent potential findings.

The BABA Reporting page requires each material to be listed along with each corresponding bid item #.

However, this is a list of materials, not a list of bid items.

• Some materials (such as Rebar) may be used for multiple bid items. For ease of reporting, a material should be listed in one row with all associated Bid Item #(s) noted rather than listing the same material multiple times if it is used for multiple bid items.

• Some bid items (such as Curb & Gutter) may use multiple different materials (Cement Aggregate & Rebar). Each material should be listed separately (to the extent feasible).

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When submitting Group B Performance Report, the Material Cost may not yet be known. At this point, TDA will primarily be reviewing the BABA Reporting page for the Material Description, Related Bid Item #(s), and Waiver Status. If the material listed is not BABA Applicable or if a waiver will be claimed, please indicate that using the dropdown menu under Waiver Status.

Any change to the materials being used (such as on a Change Order to add new bid items or change the quantity of existing materials, or when awarding a second Construction Contract), please answer “Yes” to the BABA question on the Change Order page in TDA-GO and update the BABA Reporting page.

Payment Request Procedures:

Each time a Payment Request is submitted for Construction funds, the BABA Reporting page must be reviewed for accuracy and updated as necessary.

Before Construction funds are requested for a specific bid item, the BABA Compliance Certification for each associated material must be uploaded to the BABA Reporting page in the field for those materials. TDA will review the certifications and, if acceptable, check the “Reviewed by TDA” box. For materials that are “Not BABA Applicable” or if a waiver is applied, leave that row’s upload field blank. As a note: TDA will not release funds for a bid item until each of the associated materials have all required certifications uploaded to the BABA Reporting page. Prior to uploading a BABA Compliance Certification, the Contractor and Grant Administrator should cross-reference each certification with TDA’s BABA Certification Checklist to ensure it meets the requirements for acceptance.

Project Completion:

After the final payment request for 100% of construction funds is submitted, navigate to the BABA Reporting page in TDA-GO. In the left navigation menu, scroll to the Tools section and select “Print Document”. Select “Include with Attachments” for the BABA Reporting page only. Have the Authorized Official initial the document and upload it to the Project Completion Report in the appropriate field. If a grant includes the BABA Special Condition on the Grant Overview page, upload the same document to that field and notify the assigned TDA Grant Specialist via email.

Waiver Status Option Meanings:

OPTION Meaning Certification Required This material is BABA Applicable and a Manufacturer’s Certification or other acceptable BABA documentation will be provided.

De Minimis Waiver Claimed

This material is BABA Applicable, but the cost is less than 5% of the cumulative cost of all BABA Applicable materials. No BABA documentation will be provided. *

Phased Implementation Waiver Claimed

This material is BABA Applicable, but BABA documentation is not required to be provided under the current Implementation Phase. No BABA documentation will be provided.

Not BABA Applicable This material is Not BABA Applicable and not subject to any BABA documentation requirements. No BABA documentation will be provided.

Other Waiver Submitted for Review

This material is BABA Applicable, but the Grant Recipient will be submitting a waiver request to exempt it from BABA reporting requirements.

*HUD has waived the application of the Buy America Preference for a De Minimis portion of an infrastructure project, (a cumulative total of no more than 5% of the total cost of the iron, steel, manufactured products, and construction materials used in and incorporated into the project, up to a maximum of $1 million). Grant Recipients are not required to submit BABA documentation for materials claimed as part of the De Minimis. Use the BABA Compliance Metrics section of the BABA Reporting page to determine if a material may be included in the De Minimis. The total % of all materials claimed as part of the De Minimis must be less than or equal to 5%. Only BABA Applicable materials are used to calculate the De Minimis.

https://texasagriculture.gov/Portals/0/Publications/RED/CDBG/2025%20Imp%20Man/BABA%20Certification%20Checklist.pdf?ver=0BcylncByYzpyBMOkIcdGA%3d%3d

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Section 3: BABA Definitions

Materials vs Components:

Materials: The term “Materials” is used by TDA to describe all iron and steel products, section 70917(c) materials, construction materials, and manufactured products that are permanently installed within a TxCDBG-funded infrastructure project.

Components: The term “Component” is defined in the Code of Federal Regulations as an “article, material, or supply, whether manufactured or unmanufactured, incorporated directly into: a manufactured product; or, where applicable, an iron or steel product.”

Iron and Steel Products:

The term “iron and steel products” is defined in 2 CFR 184.3 as materials that consists wholly or predominantly of iron or steel, or a combination of both.

Predominantly iron or steel or a combination of both means that the cost of the iron and steel content is more than 50 percent of the total cost of all its components. The cost of iron and steel is the cost of the mill products (such as bar, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the product. This information should be provided by the manufacturer.

For an iron and steel product to be BABA compliant, all manufacturing processes, from the initial melting stage through the final application of coatings, must occur in the United States. Specifically, the iron and steel must be melted and poured in the United States and all subsequent manufacturing processes (such as grinding, rolling, bending, reheating, casting, and coating) must also occur in the United States.

Section 70917(c) Materials:

The term “section 70917(c) materials” is defined in 2 CFR 184.3 as cement and cementitious materials;

aggregates such as stone, sand, or gravel, or aggregate binding agents or additives.

Section 70917(c) materials do not have to be produced in the United States. However, these materials must be listed on the BABA Reporting page in TDA-GO as “Not BABA Applicable”.

Construction Materials:

The term “construction materials" is defined in 2 CFR 184.3 as materials that consist of only one of the items listed below. Construction Materials are broken into two separate categories based on the Phased Implementation Waiver.

• Specifically Listed Construction Materials include:

o Non-ferrous metals;

o Lumber;

o Composite building materials; and o Plastic and polymer-based pipe and tube.

• Not Listed Construction Materials include:

o Plastic and polymer-based products other than composite building materials or plastic and polymer-based pipe or tube;

o glass (including optic glass); and o drywall.

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As a note: minor additions of articles, materials, supplies or binding agents to a construction material do not change the categorization of the construction material.

For a construction material to be BABA compliant, it must meet the specific standards listed in the table below for the material to be considered “produced in the United States”.

Construction Material “Produced in the U.S.” means all manufacturing processes occurred in the U.S.

Non-ferrous metals From initial smelting or melting through final shaping, coating, and assembly Lumber From initial debarking through treatment and planing

Plastic and polymer-based products

From initial combination of constituent plastic or polymer-based inputs, or, where applicable, constituent composite materials, until the item is in its final form

Glass From initial batching and melting of raw materials through annealing, cooling, and cutting

Fiber optic cable (including drop cable)

From the initial ribboning (if applicable), through buffering, fiber stranding and jacketing, occurred in the United States. All manufacturing processes also include the standards for glass and optical fiber, but not for non-ferrous metals, plastic and polymer-based products, or any others

Optical fiber From the initial preform fabrication stage through the completion of the draw

Drywall From initial blending of mined or synthetic gypsum plaster and additives through cutting and drying of sandwiched panels

Engineered Wood From the initial combination of constituent materials until the wood product is in its final form

Manufactured Products:

The term “manufactured products” is defined in 2 CFR 184.3 as materials that have been:

• Processed into a specific form and shape; or

• Combined with other materials to create a product with different properties than the individual materials.

As a note: If an item is classified as an iron or steel product, a construction material, or a section 70917(c) material, then it is not a manufactured product. However, a material classified as a manufactured product may include components that are construction materials, iron or steel products, or section 70917(c) materials.

For a manufactured product to be BABA compliant, the product must be manufactured in the United States;

and the cost of the components of the manufactured product that are mined, produced, or manufactured in the United States must be greater than 55 percent of the total cost of all components of the manufactured product.

Section 4: BABA FAQs

If a material complies with the Buy American Act, does it also comply with BABA?

The Buy American Act, and other domestic preference requirements, often differ from BABA requirements.

Manufacturers and Grant Recipients should ensure the material complies with BABA requirements as outlined in 2 CFR Part 184.

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How should materials be classified for BABA reporting purposes?

Materials should only be classified into one of the following categories to determine when BABA requirements apply:

• BABA Applicable Materials:

o Iron or steel products;

o Construction materials; or o Manufactured products.

• Not BABA Applicable Materials:

o Section 70917(c) materials.

Each material should be classified in only one of the categories listed above. In rare cases, a material may not fall under any of the categories listed here (contact TDA’s BABA Subject Matter Expert for guidance). Use the TxCDBG BABA Material Classification Tool to assist with classifying materials.

HUD has provided clarification regarding when materials should be categorized. The classification of a material must be made based on its status at the time it is brought to the work site. Section 70917(c) materials that are used at the work site, such as wet concrete or hot asphalt, are not subject to BABA requirements. However, Section 70917(c) materials may be components of manufactured products if, for example, they are used to produce precast concrete products before being transported to the work site. In this case, the concrete is a component of a manufactured product and BABA requirements apply.

What documents will TDA accept as proof of BABA compliance?

TDA will accept the following as proof of BABA compliance.

• A copy of the product description or technical specifications provided by the manufacturer that:

o Identifies the item purchased, and o Provides sufficient detail to conclude that the materials comply with BABA.

• A certificate, letter, or other documentation provided by the manufacturer that:

o Identifies the item purchased, o Provides sufficient detail to conclude that the materials comply with BABA, and o Signed by an authorized company representative OR issued by a verified regulatory compliance office within the company.

• A signed certification from the contractor of a project certifying compliance with BABA.

o If a contractor is certifying BABA compliance, please use TDA’s Form A402.

TDA’s optional Manufacturer’s BABA Compliance Certification Form A403 meets the requirements outlined above. For other certifications provided by the manufacturer, use TDA’s BABA Certification Checklist to ensure all requirements are met. TDA reserves the right to request additional documentation at any time.

Will TDA accept a fillable certification letter for materials?

No. While manufacturers may use forms to internally develop letters within their company, a fillable certification letter that can be changed by someone besides the manufacturer after signature does not demonstrate compliance. Only signed non-manipulable certification letters will be accepted by TDA.

What happened to the A400 BABA Compliance Form?

TDA no longer accepts the A400 BABA Compliance Form. That form was discontinued for all new grants in August 2025 and fully phased out for all grants in January 2026. The BABA Reporting page in TDA-GO replaced the A400. Appendix 2 of this document (the Project Material List) should be used by the Contractor and Engineer to provide a list of materials to the Grant Administrator for upload to the BABA Reporting page.

https://texasagriculture.gov/Portals/0/Publications/RED/CDBG/Training%20Page/TxCDGB%20BABA%20Material%20Classification%20Tool.png?ver=byURNKRx7Nmt5YwGcLS-ow%3d%3d https://texasagriculture.gov/Portals/0/Publications/RED/CDBG/2025%20Imp%20Man/Form%20A402%20-%20BABA%20Contractor%20Certification%20-%201_23_2025.pdf?ver=dLa_KtKBFkfoZnq4ggeAnw%3d%3d https://texasagriculture.gov/Portals/0/Publications/RED/CDBG/2025%20Imp%20Man/Form%20A403%20-%20BABA%20Manufacturer's%20Certification%20-%2010_21_2025.pdf?ver=eL_pMgg07hLYki8SiE1jSg%3d%3d https://texasagriculture.gov/Portals/0/Publications/RED/CDBG/2025%20Imp%20Man/BABA%20Certification%20Checklist.pdf?ver=0BcylncByYzpyBMOkIcdGA%3d%3d https://texasagriculture.gov/Portals/0/Publications/RED/CDBG/2025%20Imp%20Man/BABA%20Certification%20Checklist.pdf?ver=0BcylncByYzpyBMOkIcdGA%3d%3d

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Why would TDA and manufacturers classify certain materials under different categories?

When BABA was signed into law in November 2021, it contained a “savings provision” in Section 70917(b) which states that BABA does not affect existing domestic content procurement preferences for infrastructure projects funded by federal assistance programs that meet the requirements of Section 70914. This provision was intended to allow the continued use of older, agency-specific requirements (such as the longstanding American Iron and Steel provisions specific to the EPA and DOT) without disruption by the new domestic content procurement preferences established by BABA. However, agencies without a pre-existing domestic procurement preference (such as HUD) must implement BABA requirements as written in 2 CFR Part 184.

Due to discrepancies between AIS provisions and BABA requirements, some materials would be classified differently depending on which agency the federal financial assistance originated from. For example:

• HUD-Funded Projects: Classification of a pump would depend on its total component cost. It would be classified as either a predominantly iron or steel product or a manufactured product based on the percentage of its iron and steel content (see Section 3: BABA Definitions).

• EPA-Funded Projects: A pump is always classified as a manufactured product. The EPA categorizes pumps as “mechanical and electrical equipment” under AIS, exempting them from domestic iron and steel requirements.

Iron and steel products and manufactured products have different requirements to be considered BABA compliant. As a result, it is the Grant Recipient’s responsibility to communicate with manufacturers that all materials incorporated in the project must comply with HUD’s BABA requirements even if they differ from existing industry standards established under prior AIS requirements.

What happens if I don’t comply with BABA requirements?

Grant Recipients are responsible for ensuring all permanently installed materials are compliant with BABA requirements. If a Grant Recipient fails to comply with BABA requirements, TDA will take appropriate action depending on the severity of the situation; up to and including: finding of non-compliance and corrective action plan, disallowed costs, administrative penalties, required BABA trainings for administrator and/or local officials, administrator sanction, and/or grant termination and return of previously disbursed funds.

TDA may adjust these options at any time based on additional guidance from HUD or OMB.

Are there any resources available to help locate BABA-compliant products?

Yes, the National Institute of Standards and Technology (NIST) Manufacturing Extension Partnership (MEP) provides a supplier scouting service (linked HERE) that Grant Recipients and Contractors may use to conduct market research and identify manufacturers who can meet demand for American-made products.

Are there any waivers available?

There are two waivers currently in effect for HUD programs which are applicable to TxCDBG projects and one waiver which may be requested. These waivers include:

• Phased Implementation Waiver o HUD has established a Phased Implementation Waiver which automatically applies to all CDBG Formula Grants. This waiver allows TxCDBG Grant Recipients to delay BABA reporting on categories of materials based on the schedule below:

Iron and Steel Products – BABA reporting required for all grants.

Specifically Listed Construction Materials – BABA reporting required for all grants awarded after 9/1/2024.

Not Listed Construction Materials – BABA reporting required for all grants awarded after 9/1/2025.

Manufactured Products – BABA reporting required for all grants awarded after

9/1/2025.

o The TxCDBG BABA Material Classification Tool includes these reporting dates.

https://www.nist.gov/mep/supply-chain/supplier-scouting https://texasagriculture.gov/Portals/0/Publications/RED/CDBG/Training%20Page/TxCDGB%20BABA%20Material%20Classification%20Tool.png?ver=byURNKRx7Nmt5YwGcLS-ow%3d%3d

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• De Minimis Waiver o HUD has established a De Minimis Waiver which automatically applies to all HUD-administered infrastructure projects. TxCDBG Grant Recipients may apply this waiver to a maximum cumulative total of 5% of the total cost of BABA Applicable materials used in the project. Only BABA Applicable materials are used to calculate the De Minimis.

o The total cost of BABA Applicable materials can be determined by adding the following together:

Total cost of all Iron and Steel Products Total cost of all Construction Materials (Both Specifically Listed and Not Listed) Total cost of all Manufactured Products o Once the above amounts are combined, multiply by 0.05 to determine the maximum De Minimis amount that may be claimed. The total % of all materials claimed as part of the De Minimis must be less than or equal to 5%.

o The BABA Compliance Metrics section on the BABA Reporting Page in TDA-GO calculates this automatically.

o TxCDBG Grant Recipients are not required to submit BABA documentation for materials claimed as part of the De Minimis.

• Project-/Product-Specific Waiver o If a Grant Recipient has applied both above waivers to their project and still wishes to not provide

BABA reporting for additional materials, one of the three Project-/Product-Specific Waivers may be requested by following the process outlined in Appendix # below.

o Types of Project-/Product-Specific Waivers:

Nonavailability Waiver:

• May be requested if the types of iron, steel, manufactured products, or construction materials required for the project are not produced in the United States in…