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116

M

ARCH

2016

G LOBA L MARKE T P L AC E

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März_mit Messeeindruck_Tube&Pipe_125x180_4c.indd 1

10.12.2015 11:02:29

This end-run around the plain intent of the Buy American Act

was not in itself very remarkable. (Noel Brinkerhoff reported

on

AllGov.com

[14 September] that the inspector general of

the Department of Defense found procurement violations in

fully one-third of federal contracts in a sample batch examined

by the agency.) But the two exemptions from the policy of

using American steel exclusively led to a lawsuit against the

FHWA in which manufacturers were joined by a labour union

and a trade group.

Granting summary judgment to the plaintiffs, Judge Mehta

found that the FHWA regulators had improperly dealt

themselves the exemptions and moreover apparently pulled

the rationale for one of them “out of thin air”. He harked back

to the 1997 FHWA memorandum that declared the iron and

steel content necessary to warrant an exemption. In his view,

neither then nor in the present case has that percentage

been explained – still less justified. “The [FHWA] says nary

a word about why 90 per cent was chosen as the threshold

value to mean ‘predominately,’” wrote Judge Mehta, who was

nominated to the bench by President Barack Obama. “Not a

single word. And defendants’ post-hoc efforts to rationalise the

choice of that number ring hollow.”

Whether the ruling in this case will revive anti-protectionist

sentiment against the Buy American Act remains to be

seen. But the title of Mr Brinkerhoff’s article in

AllGov – “

Half of

Navy Contracts Violate Buy American Rules

” –

suggests that,

at the very least, notice has been taken of dubious compliance

with the strictures of the law, even at quite high levels.

Elsewhere in steel . . .

A former Wheeling-Pittsburgh Steel Co site in Benwood,

West Virginia, has been repurposed as a facility for

inspecting and threading pipe for the natural gas industry.

The

Intelligencer and Wheeling News-Register

reported on

7 December that JLE Industries (Dunbar, Pennsylvania)

invested over $6mn in refurbishing the 80,000-square-foot

plant. Closed for 20 years before JLE began the conversion in

July of last year, it was set for a January opening. The pipe is

to be retrieved from drilling sites. Before processing it will be

scanned for defects by magnetic resonance imaging.

Rules on Drones

Federal reasser tion of command of US

airspace opens a rift with local authorities on

the regulation of recreational drones

“New York City is different from the cornfields of Iowa. That

should be obvious to everyone, but it isn’t reflected in FAA

rules.” It was only a matter of time before someone – in this

case, New York City Council member Daniel R Garodnick

– joined the issue of differences between the US Federal