[Federal Register Volume 80, Number 166 (Thursday, August 27, 2015)]
[Notices]
[Pages 52081-52083]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-21220]
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA-2014-0025]
Notice of Buy America Waiver for Track Turnout Component
AGENCY: Federal Transit Administration, DOT.
ACTION: Notice of Buy America Waiver.
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SUMMARY: In response to a Buy America waiver request from the Long
Island Rail Road (LIRR), a subsidiary of the New York Metropolitan
Transportation Authority (MTA), the Federal Transit Administration
(FTA) hereby waives its Buy America requirements for the movable point
frog component of one track turnout that LIRR needs for Stage 1.1 of
its Jamaica Station Capacity Improvements Project, Phase I (JCI-Phase 1
Project). The turnout itself, however, is subject to FTA's Buy America
requirements and, accordingly, the turnout must be manufactured in the
United States.
This Buy America waiver does not apply to track turnout components
for Stages 2.0.1, 2.0.2, 2.0.3, and any other stages of LIRR's JCI-
Phase I Project, or for LIRR's State of Good Repair Program, as LIRR
has withdrawn such waiver
[[Page 52082]]
requests through correspondence dated February 9, 2015, February 13,
2015, and June 25, 2015. Moreover, this Buy America waiver does not
apply to track turnout components needed for the Northeast Corridor
Congestion Relief Project at Harold Interlocking, for which the Federal
Railroad Administration (FRA) granted a Buy America waiver on May 15,
2015, as FRA funds are being used for that project.
DATES: This waiver is effective immediately.
FOR FURTHER INFORMATION CONTACT: Richard L. Wong, FTA Attorney-Advisor,
at (202) 366-4011 or [email protected].
SUPPLEMENTARY INFORMATION: The purpose of this notice is to announce
that FTA is granting a non-availability Buy America waiver for the
movable point frog component (also known and referred to as a ``vee
point'') on one track turnout that LIRR needs for Stage 1.1 of LIRR's
JCI-Phase I Project.
FTA is providing LIRR with Federal funds to support its JCI-Phase I
Project, the total cost of which is approximately $301,653,240. With
certain exceptions, FTA's Buy America requirements prevent FTA from
obligating Federal funds for a project unless ``the steel, iron, and
manufactured goods used in the project are produced in the United
States.'' 49 U.S.C. 5323(j)(1) (2012). All ``manufactured end
products'' must be produced in the United States, and FTA considers a
manufactured product to be produced in the United States if: (1) All of
the manufacturing processes for the product take place in the United
States, and (2) all of the components of the product are of U.S.
origin. 49 CFR 661.5(d) (2014). FTA considers a component to be of U.S.
origin if it is manufactured in the United States, regardless of the
origin of its subcomponents. 49 CFR 661.5(d)(2). If, however, FTA
determines that ``the steel, iron, and goods produced in the United
States are not produced in a sufficient and reasonably available amount
or are not of a satisfactory quality,'' then FTA may issue a non-
availability waiver of these requirements. 49 U.S.C. 5323(j)(2)(B); 49
CFR 661.7(c).
Through the JCI-Phase I Project, LIRR will reconfigure its tracks
in Jamaica Station, construct a new passenger platform to facilitate
LIRR service to Atlantic Terminal, and increase capacity for LIRR train
service into the new Grand Central Terminal following completion of the
East Side Access Project. Currently, Jamaica Station is one of the
busiest stations in LIRR's system, with over 250,000 customers and 500
trains passing through the station each weekday. Phase 1 of the project
is divided into Stages 1 and 2.
The scope of work for the project involves the installation of new
track turnouts. In June 2013, LIRR issued a solicitation for two
turnouts containing rail bound magnesium frogs in connection with Stage
1 of the JCI-Phase I Project. On May 16, 2014, LIRR awarded Contract
Number 6121 to Picone Schiavone II, which certified its compliance with
FTA's Buy America requirements for the track turnouts. Following the
award, LIRR determined that these turnouts would be insufficient to
meet LIRR's operational needs. Accordingly, LIRR revised its
specifications for the project to include two turnouts with movable
point frogs, which is the component type that is the subject of this
waiver.
The movable point frogs are essential components of track turnouts,
and LIRR indicated that it needs them for the following operational
reasons: (1) They are necessary to withstand the frequent and heavy use
by passenger and freight trains traveling along LIRR's right of way;
(2) they allow trains to travel through the turnouts at higher speeds,
ultimately providing more throughput during rush hour; (3) they reduce
impact loading to the turnouts; and (4) they provide for less wear and
tear, thereby requiring less overall maintenance, extending the useful
lives of the turnouts, and resulting in fewer outages and negative
impacts on LIRR's operations. Picone Schiavone II advised LIRR that it
was unable to certify compliance with FTA's Buy America requirements
based upon LIRR's new specifications requiring movable point frogs as
components of the track turnouts.
By letter dated September 19, 2014, LIRR requested a non-
availability Buy America waiver for four components that LIRR needs for
ten track turnouts on Stages 1.1, 2.0.1, 2.0.2, and 2.0.3 of its JCI-
Phase I Project. Those four components are the Schwihag roller
assemblies, Schwihag plates, ZU1-60 steel switch point rail sections,
and the movable point frogs. At the time that LIRR submitted its waiver
request, none of these turnout components were manufactured in the
United States. The roller assemblies and plates were manufactured in
Switzerland, the ZU1-60 steel switch point rail sections were
manufactured in Austria, and the movable point frogs were manufactured
in Germany.
Based on previous solicitations, LIRR concluded that it was unable
to identify a domestic source for these four track turnout components.
LIRR also pointed to market research and manufacturer outreach that it
had conducted for a prior Buy America waiver request related to the
East Side Access Project.\1\ In conducting that research, LIRR utilized
the National Railroad Passenger Corporation's (Amtrak) market research,
which Amtrak had conducted at the request of FRA in connection with a
separate Buy America waiver request. This research included outreach to
manufacturers that were previously identified by the U.S. Department of
Commerce's National Institute of Standards and Technology (NIST) in a
December 2012 Supplier Scouting Report. LIRR's market research
indicated that there was no known company presently manufacturing, or
able to domestically manufacture, the Schwihag roller assemblies,
Schwihag plates, ZU1-60 steel switch point rail sections, and movable
point frogs. LIRR also contacted seven additional potential
manufacturers, none of whom were willing and capable of domestically
producing these components.
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\1\ On February 18, 2015, FTA published a Federal Register
notice waiving its Buy America requirements for the Schwihag roller
assemblies, Schwihag plates, ZU1-60 steel switch point rail
sections, and movable point frogs that LIRR needed in connection
with nine turnouts for VHL03 LIRR Stage 3 of the East Side Access
Project and one turnout for VHL04 LIRR Stage 4. 80 FR 8753.
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Given LIRR's extensive market research, on December 19, 2014 FTA
published a Federal Register notice requesting comment on LIRR's waiver
request pursuant to 49 CFR 661.7. 79 FR 75857. The docket closed on
January 20, 2015, and to date, FTA has received no comments regarding
the notice.
After the docket closed, by letter dated February 13, 2015, LIRR
indicated to FTA that it had become aware of alternate turnout designs
that would be compatible with LIRR's infrastructure and available from
a domestic manufacturer. LIRR indicated its intention to use this
alternate turnout design for its programs and projects, including the
JCI-Phase I Project. LIRR specified that the alternate turnout design
required modification to meet LIRR's operational requirements and to
ensure adequate performance and reliability, considering that over
250,000 customers and 500 trains pass through Jamaica Station each
weekday.
Given the alternate design and the potential availability of the
turnout components from a domestic manufacturer, LIRR narrowed its
waiver request from the ten turnouts needed for Stages 1.1, 2.0.1,
2.0.2, and 2.0.3, to only two turnouts needed for Stage 1.1.
[[Page 52083]]
LIRR indicated that it needs the waiver for Stage 1.1 because the
procurement of the turnouts in that stage is on a critical path. LIRR
calculated that, absent a non-availability waiver for the components of
these two turnouts, LIRR's JCI-Phase I Project would be delayed by
approximately one year, based on the extended lead times for design
modifications, fabrication, and delivery of the alternate turnout
design. LIRR withdrew its waiver request with respect to the components
of eight turnouts needed for Stages 2.0.1, 2.0.2, and 2.0.3 because the
procurement of those turnouts is not on a critical path and LIRR
believes that it has enough time to design, fabricate, manufacture,
deliver, and install the domestic alternates without causing delays to
those stages of the project.
Following LIRR's letter dated February 13, 2015, LIRR engaged in
additional efforts to utilize domestic manufacturers for the project.
By electronic mail dated June 25, 2015, LIRR further narrowed its
waiver request to apply to only one turnout needed for Stage 1.1 of its
JCI-Phase I Project. LIRR also withdrew its request for a Buy America
waiver with respect to the Schwihag roller assemblies, Schwihag plates,
and the ZU1-60 steel switch point rail sections for that turnout. LIRR
determined that, based on the project's redesign, LIRR could use
domestically manufactured components as alternatives. LIRR limited its
waiver request to just the movable point frog needed for a single
turnout in Stage 1.1.
Based upon LIRR's good faith efforts to identify domestic
manufacturers for the turnout components and redesign the project,
LIRR's informed conclusion that there are presently no U.S.
manufacturers that are willing and capable of producing the movable
point frog critically needed for the project, and the lack of responses
to FTA's Federal Register notice, FTA hereby issues a non-availability
waiver to LIRR, pursuant to 49 CFR 661.7(c), for the movable point frog
component needed for one turnout in Stage 1.1 of the JCI-Phase I
Project. This waiver does not apply to the turnout itself, and
accordingly, the turnout must be manufactured in the United States
pursuant to FTA's Buy America requirements.
This Buy America waiver does not apply to track turnout components
for Stages 2.0.1, 2.0.2, 2.0.3, and any other stages of LIRR's JCI-
Phase I Project, or for LIRR's State of Good Repair Program, as LIRR
has withdrawn such waiver requests. Furthermore, this Buy America
waiver does not apply to track turnout components needed for the
Northeast Corridor Congestion Relief Project at Harold Interlocking,
for which FRA granted a Buy America waiver on May 15, 2015, as FRA
funds are being used for that project.
Issued on August 21, 2015.
Dana Nifosi,
Acting Chief Counsel.
[FR Doc. 2015-21220 Filed 8-26-15; 8:45 am]
BILLING CODE 4910-57-P