[Federal Register Volume 81, Number 238 (Monday, December 12, 2016)]
[Notices]
[Pages 89570-89571]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29707]
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
[Docket No. FTA-2016-0036]
Notice of Buy America Waiver for Replacement Parts on Diesel
Multiple Unit Rail Vehicles
AGENCY: Federal Transit Administration, DOT.
ACTION: Notice of Buy America waiver.
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SUMMARY: The Federal Transit Administration (FTA) received a request
from the North County Transit District (NCTD) in California for a Buy
America non-availability waiver for the procurement of replacement
parts for Diesel Multiple Unit (DMU) rail vehicles. The 12 DMU rail
vehicles were manufactured by Siemens as a part of their Desiro series
and were placed in revenue service in 2008. Mid-life maintenance and
replacement overhauls of vehicle parts are now required in order to
ensure safe and continuous transit service. The FTA hereby waives its
Buy America requirements, finding that the materials for which the
waiver is requested are not produced in the United States in sufficient
and reasonably available quantities and of satisfactory quality. This
waiver is limited to the purchase of the replacement parts by NCTD over
several phases from 2018 through 2026.
DATES: The waiver is effective immediately.
FOR FURTHER INFORMATION CONTACT: Cecelia Comito, Assistant Chief
Counsel, at (202) 366-2217 or [email protected].
SUPPLEMENTARY INFORMATION: The purpose of this notice is to announce
that FTA has granted a Buy America non-availability waiver for the
NCTD's purchase of replacement parts on their Siemens-manufactured
Desiro series DMU rail vehicles, including, but not limited to, Power
Pack Assembly, Power Truck Assembly, Jakobs Truck Assembly,
Transmission, Primary Suspension, Secondary Suspension, Power Wheelset
Assembly, Power Truck Brake Rotors, Jakobs Truck Brake Rotors, Power
Truck Wheels, Jakobs Truck Wheels, A/C Compressors, Carbody Brake
Components, Automatic Train Couplers, and HVAC Roof Mounted Units (the
``Replacement Parts'') pursuant to 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
[[Page 89571]]
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). ``It
will be presumed that the conditions exist to grant this non-
availability waiver if no responsive and responsible bid is received
offering an item produced in the United States.'' 49 CFR 661.7(c)(1).
NCTD provides transit service to the entire North San Diego County,
serving more than 12 million riders annually. In 2003, NCTD requested
and received from FTA a non-availability Buy America waiver for the
procurement of 12 DMU vehicles for use on NCTD's Sprinter line, with 15
light rail stations between the cities of Escondido and Oceanside. NCTD
purchased the 12 DMU vehicles in 2004 and placed the vehicles into
revenue service in 2008 on NCTD's Sprinter line. The useful life of the
vehicles is 25 years.
According to NCTD, the Replacements Parts for the DMU vehicles are
nearing the end of their useful service lives and showing signs of wear
and fatigue. Without periodic capital equipment replacement and/or
rebuild, the likelihood of mechanical downtime increases significantly,
equating to prolonged service outages for riders. In March 2013, NCTD
removed the Sprinter service from revenue service for more than two
months due to premature wear of one of the three braking systems and
unavailability of domestic replacement parts. NCTD intends to replace
the components over several phases during the coming years, from 2018
through 2026. The last phase is anticipated to be procured over a
subsequent seven-year period. Any non-availability waiver granted would
be effective for all phases of these projects and will expire upon
completion of these projects.
As a part of its search for domestic Replacement Parts, NCTD issued
a Request for Information (RFI) on November 12, 2013 to maintenance and
engineering communities to determine if any firms existed that could
either supply Buy America compliant parts and components, or reverse
engineer the parts and components utilizing plans and specifications
provided. More than 300 vendors received the RFI; 19 downloaded the
RFI. One vendor responded that ``with proper specifications, drawings,
and samples, we may be able to design and supply Buy America Compliant,
OE equivalent, air bellows, primary suspension, and passenger
bellows.'' However, the original equipment manufacturer (``OEM'') would
not provide the requested proprietary information. NCTD undertook three
additional procurements for the Replacement Parts. Three responses were
received; none could certify to Buy America compliance.
NCTD's 12 vehicles are the only Siemens Sprinter vehicles in the
United States. Additionally, since these vehicles were specifically
designed to meet California Public Utilities Commission rail safety
requirements, Sprinter is the only vehicle of its kind internationally.
NCTD's multiple procurement efforts have demonstrated that there are no
suppliers willing to invest in infrastructure to manufacture parts that
are suitable only for NCTD's 12 vehicles.
Under 49 U.S.C. 5323(j)(6), FTA cannot deny an application for a
waiver based on non-availability unless FTA can certify that (i) the
steel, iron, or manufactured good (the ``item'') is produced in the
United States in a sufficient and reasonably available amount; and (ii)
the item produced in the United States is of a satisfactory quality.
Additionally, FTA must provide a list of known manufacturers in the
United States from which the item can be obtained. FTA is not aware of
any manufacturers who produce the Replacement Parts in the United
States.
The 12 DMUs purchased by NCTD were granted a waiver from Buy
America, and Replacement Parts are necessary for mid-life maintenance
of the rail vehicles. Due to its unsuccessful efforts to identify
domestic manufacturers, NCTD seeks a non-availability waiver of the Buy
America requirements for the various Replacement Parts. FTA published a
notice in the Federal Register announcing the Buy America waiver
request (Docket No. FTA-2016-0036) and sought comments from all
interested parties, including potential vendors and suppliers. The
comment period closed on November 14, 2016, and no comments were
received.
Therefore, based on the information provided in support of NCTD's
request for a Buy America waiver and the lack of any comments, FTA
hereby waives its Buy America requirements for the procurement of the
various Replacement Parts on the grounds that the manufactured product
is not available in the U.S. This waiver is limited to the purchase of
replacement parts for the 12 DMUs which will be acquired for the
replacement of the components over several phases from 2018 through
2026. The waiver is effective for all phases of these projects.
Ellen Partridge,
Chief Counsel.
[FR Doc. 2016-29707 Filed 12-9-16; 8:45 am]
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