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Date Issued
Submitting OIG
Department of Transportation OIG
Agencies Reviewed/Investigated
Department of Transportation
Components
Federal Highway Administration
Report Number
FI2025037
Report Description

Our Objective(s)To assess FHWA's processes and procedures for overseeing grant recipient compliance with Federal Buy America requirements. Our assessment included reviews of FHWA's (1) guidance on Buy America requirements and (2) oversight of Federal-aid recipients' compliance.
Why This AuditFHWA's Buy America law and regulations require highway projects funded under Title 23 of United States Code to use only iron, steel, and manufactured products produced in the United States. Due to the high level of investment in surface transportation, we initiated this audit.
What We FoundFHWA provided insufficient guidance on Buy America requirements to its Federal-aid recipients.

FHWA's guidance to State Departments of Transportation (State DOTs) and local agencies lacks detail on how to certify highway project materials' compliance with Buy America requirements.
Because there were gaps in FHWA Buy America guidance, we found weaknesses in the procedures developed by the State DOTs and local agencies that we reviewed-Texas, Washington, and Seattle-and issues concerning Buy America compliance in their projects.
FHWA also did not provide adequate guidance on its minimal use threshold for foreign materials.

FHWA did not perform adequate oversight of Federal-aid recipients' Buy America compliance.

Neither FHWA Headquarters nor its Divisions' periodic reviews, such as Compliance Assessment Program reviews, consistently address Buy America requirements.
The Division Offices' risk-based project-level reviews may overlook Buy America compliance.

RecommendationsWe made six recommendations to improve FHWA's oversight of Federal-aid recipients' compliance with Buy America requirements.

Report Type
Audit
Agency Wide
Yes
Number of Recommendations
6
Questioned Costs
$754,336
Funds for Better Use
$0
Report updated under NDAA 5274
No
External Link
https://www.oig.dot.gov/library-item/46885

Open Recommendations

This report has 6 open recommendations.
Recommendation Number Significant Recommendation Recommended Questioned Costs Recommended Funds for Better Use Additional Details
1 Yes $0 $0

Issue best practices for Buy America materials certification, including standardized templates which detail required data fields, such as identifying project information.

2 Yes $0 $0

Update guidance for FHWA's minimal use threshold, including the definition of "total contract cost."

3 Yes $594,000 $0

For the $594,000 in questioned costs relating to Seattle Department of Transportation's West Seattle Bridge project, review materials certification documents relating to cathodic protection system and clamp straps incorporated into the project without adequate documentation at the time of our audit. Should any amount be found to be unsupported or unallowable, provide justification for accepting the costs or take appropriate corrective actions.

6 Yes $160,336 $0

For the $160,336 in questioned costs related to Texas Department of Transportation's (TxDOT) I-10 and I-35 projects, work with TxDOT to confirm Buy America compliance for those foreign materials and determine if any amount is unsupported or unallowable under Buy America rules. Should any amount be found unsupported or unallowable, provide a justification for accepting the costs or take appropriate corrective actions.

4 Yes $0 $0

Enhance oversight reviews to include greater focus on Buy America compliance.

5 Yes $0 $0

Increase awareness of Buy America requirements to include documenting certification of shop and field welding consumables and processes.

Department of Transportation OIG

United States