[Federal Register Volume 81, Number 75 (Tuesday, April 19, 2016)]
[Notices]
[Pages 23076-23077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-08989]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA-2016-0002]
Notice of Buy America Waiver for a Radio Communications System
AGENCY: Federal Transit Administration, DOT.
ACTION: Notice of Buy America waiver.
-----------------------------------------------------------------------
SUMMARY: In response to the request of the Kansas City Area
Transportation Authority (KCATA) for a Buy America waiver for a DMR
Tier III Trunked UHF Voice radio system that is compatible with its
current system, the Federal Transit Administration (FTA) hereby waives
its Buy America requirements finding that the materials for which a
waiver is requested are not produced in the United States in sufficient
and reasonably available quantities and of a satisfactory quality. This
waiver is limited to a single procurement by KCATA for the DMR Tier III
Trunked UHF Voice radio system.
DATES: This waiver is effective immediately.
FOR FURTHER INFORMATION CONTACT: Laura Ames, FTA Attorney-Advisor, at
(202) 366-2743 or [email protected].
SUPPLEMENTARY INFORMATION: The purpose of this notice is to announce
that FTA has granted a Buy America non-availability waiver for KCATA's
procurement of a DMR Tier III Trunked UHF radio system under 49 U.S.C.
5323(j)(2)(B) and 49 CFR 661.7(c).
With certain exceptions, FTA's Buy America requirements prevent FTA
from obligating an amount that may be appropriated to carry out its
program 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). A manufactured product is considered 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. A component is considered of U.S. origin if
it is manufactured in the United States, regardless of the origin of
its subcomponents. 49 CFR 661.5(d). 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.
49 U.S.C. 5323(j)(2)(B); 49 CFR 661.7(c).
KCATA provides public transportation services in the Kansas City,
Missouri, metropolitan area, operating in seven counties. KCATA's
current radio system was purchased in 2002 and fully activated in 2005.
The radio system is analog and operates on two separate channels. It
has limited growth capabilities, issues with ``talk over,''
inaccessible voice connections, and escalating maintenance costs. KCATA
is in the process of upgrading its radio system.
As part of its plan to upgrade the radio system, KCATA issued a
Request for Proposals (RFP) on December 16, 2014, seeking a ``turnkey
project that includes a DMR Tier III Trunked UHF Voice radio system,
full integration of the radio system with the Trapeze TransitMaster
CAD/AVL system, and extended maintenance and support.'' KCATA only
received one response to the RFP. Tait North America (Tait) expressed
interest in the project but noted that it is headquartered in New
Zealand and that a majority of the products supplied for the project
would be assembled in New Zealand, making them non-compliant with Buy
America.
Neither KCATA nor FTA has identified any companies in the United
States that can meet the Buy America requirements for this project. FTA
also conducted a scouting search for a U.S. manufacturer of a
comparable radio system through its Interagency Agreement with the U.S.
Department of Commerce's National Institute of Standards and Technology
(NIST). The scouting search did not result in identifying any domestic
manufacturers who could provide the equipment required by KCATA.
On Wednesday, March 22, 2016, and in accordance with 49 U.S.C.
5323(j)(3)(A), FTA published a notice in the Federal Register (81 FR
15410) requesting public comment on, among other topics, the merits of
KCATA's waiver request and potential effects of granting the waiver.
The public comment period closed on March 29, 2016. FTA received only
once comment.
Selex ES, a subsidiary of an Italian company with its North America
headquarters in Overland Park, Kansas, commented that although it did
not submit a proposal to KCATA's RFP, it can supply a DMR Tier III
Trunked Radio Systems similar to the system proposed by Tait, arguing
that Selex ES is a ``local'' option for KCATA. Although Selex ES
markets, designs, stages, ships, and services DMR Tier III Trunked
Radio Systems and is based in Kansas, Selex ES does not provide a
system that is compliant with FTA's Buy America requirement for
manufactured goods. As noted above, Buy America applies to manufactured
[[Page 23077]]
goods, not services. Additionally, Selex ES did not participate in the
initial RFP offered by KCATA. If Selex ES had bid on KCATA's RFP it too
would have needed a non-availability waiver of the Buy America
requirements.
Therefore, based on the information supplied in support of KCATA's
request for a Buy America waiver for the DMR Tier III Trunked UHF Voice
radio system that is compatible with its current system, including
NIST's inability to locate a domestic manufacturer that currently
produces a similar system and that no other entity was able to
establish that it makes a Buy America complaint system, FTA hereby
waives its Buy America requirements for the DMR Tier III Trunked UHF
Voice radio system on the grounds that the manufactured product is not
available in the U.S. This waiver is limited to a single procurement
for the DMR Tier III Trunked UHF Voice radio system by KCATA.
Issued on April 14, 2016.
Dana Nifosi,
Deputy Chief Counsel.
[FR Doc. 2016-08989 Filed 4-18-16; 8:45 am]
BILLING CODE 4910-57-P