80_FR_34602 80 FR 34487 - Buy America Handbook; Conducting Pre-Award and Post-Delivery Audits for Rolling Stock Procurements

80 FR 34487 - Buy America Handbook; Conducting Pre-Award and Post-Delivery Audits for Rolling Stock Procurements

DEPARTMENT OF TRANSPORTATION
Federal Transit Administration

Federal Register Volume 80, Issue 115 (June 16, 2015)

Page Range34487-34489
FR Document2015-14711

The Federal Transit Administration (FTA) has placed in the docket and on its Web site proposed guidance, in the form of a handbook, on complying with FTA's Buy America pre-award and post- delivery audit requirements for rolling stock procurements, from the solicitation phase through final acceptance of the rolling stock. This proposed guidance explains and illustrates how to calculate domestic content of rolling stock, and it is intended for use by recipients of Federal funding, auditors, manufacturers, and suppliers (including subcontractors). This proposed guidance explains to recipients how to verify and document their compliance with FTA's Buy America pre-award and post- delivery audit requirements. In addition, this proposed guidance encourages recipients, manufacturers, and suppliers to adopt certain best practices to ensure compliance with the pre-award and post- delivery audit requirements. By this notice, FTA invites public comment on this proposed guidance.

Federal Register, Volume 80 Issue 115 (Tuesday, June 16, 2015)
[Federal Register Volume 80, Number 115 (Tuesday, June 16, 2015)]
[Notices]
[Pages 34487-34489]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-14711]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

[Docket No. FTA-2015-0020]


Buy America Handbook; Conducting Pre-Award and Post-Delivery 
Audits for Rolling Stock Procurements

AGENCY: Federal Transit Administration, DOT.

ACTION: Notice of Availability of Proposed Handbook and Request for 
Comments.

-----------------------------------------------------------------------

SUMMARY: The Federal Transit Administration (FTA) has placed in the 
docket and on its Web site proposed guidance, in the form of a 
handbook, on complying with FTA's Buy America pre-award and post-
delivery audit requirements for rolling stock procurements, from the 
solicitation phase through final acceptance of the rolling stock. This 
proposed guidance explains and illustrates how to calculate domestic 
content of rolling stock, and it is intended for use by recipients of 
Federal funding, auditors, manufacturers, and suppliers (including 
subcontractors).
    This proposed guidance explains to recipients how to verify and 
document their compliance with FTA's Buy America pre-award and post-
delivery audit requirements. In addition, this proposed guidance 
encourages recipients, manufacturers, and suppliers to adopt certain 
best practices to ensure compliance with the pre-award and post-
delivery audit requirements. By this notice, FTA invites public comment 
on this proposed guidance.

DATES: Comments must be submitted by August 17, 2015. Late-filed 
comments will be considered to the extent practicable.

ADDRESSES: Please submit your comments by only one of the following 
methods, identifying your submission by DOT Docket Number FTA-2015-
0020. All electronic submissions must be made to the U.S. Government 
electronic site at http://www.regulations.gov.
    (1) Federal e-Rulemaking Portal: Go to http://www.regulations.gov 
and follow the online instructions for submitting comments.
    (2) Mail: Docket Management Facility: U.S. Department of 
Transportation, 1200 New Jersey Avenue SE., West Building, Ground 
Floor, Room W12-140, Washington, DC 20590-0001.
    (3) Hand Delivery or Courier: West Building Ground Floor, Room W12-
140, 1200 New Jersey Avenue SE., between 9 a.m. and 5 p.m. Eastern 
time, Monday through Friday, except Federal holidays.
    (4) Fax: 202-493-2251.
    Instructions: You must include the agency name (Federal Transit 
Administration) and Docket number (FTA-2015-0020) for this notice at 
the beginning of your comments. Submit two copies of your comments if 
you submit them by mail. For confirmation that FTA received your 
comments, include a self-addressed stamped postcard. All comments 
received will be posted without change to www.regulations.gov including 
any personal information provided and will be available to internet 
users. You may review DOT's complete Privacy Act Statement published in 
the Federal Register on April 11, 2000 (65 FR 19477) or http://DocketsInfo.dot.gov.
    Docket: For access to the docket to read background documents and 
comments received, go to www.regulations.gov at any time or to the U.S. 
Department of Transportation, 1200 New Jersey Avenue SE., Docket 
Operations, M-30, West Building Ground Floor, Room W12-140, Washington, 
DC 20590 between 9:00 a.m. and 5:00 p.m. Eastern Standard Time, Monday 
through Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT: For program questions, contact Patrick 
Centolanzi, FTA Office of Program Management, at (202) 366-0234 or 
Patrick.Centolanzi@dot.gov. For legal questions, contact Richard L. 
Wong, FTA Attorney-Advisor, at (202) 366-4011 or Richard.Wong@dot.gov.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Overview
II. Section-by-Section Summary
    A. Section 1--Introduction
    B. Section 2--Pre-Award Audit
    C. Section 3--Post-Delivery Audit
    D. Section 4--Domestic Content Calculations
    E. Section 5--Frequently Asked Questions
    F. Appendices

I. Overview

    The FTA's objective in implementing 49 CFR part 661 (Buy America 
Requirements) and 49 CFR part 663 (Pre-Award and Post-Delivery Audits 
of Rolling Stock Purchases) is to support and promote the United States 
(U.S.) manufacturing industry and U.S. jobs. As guidance on the pre-
award and post-delivery audit requirements for rolling stock 
procurements, FTA published two separate Buy America handbooks in May 
1995--i.e., one for rail vehicle procurements and one for bus 
procurements.
    Over the past three years, FTA has conducted Buy America Compliance 
Reviews, where they observed and monitored the pre-award and post-
delivery audit processes for fourteen capital grants. One primary 
finding was that FTA should provide more guidance and clarity on 
conducting pre-award and post-delivery Buy America audits required in 
FTA's Buy America regulations (49 CFR parts 661 and 663).
    The FTA is proposing to publish a new Buy America handbook, 
entitled Conducting Pre-Award and Post-Delivery Audits for Rolling 
Stock Procurements (Handbook), which would replace FTA's two Buy 
America handbooks on this subject from 1995. The proposed Handbook 
would apply comprehensively to rolling stock procurements that are 
subject to the pre-award and post-delivery audit requirements set forth 
in 49 CFR part 663.
    This notice provides a section-by-section summary of the proposed 
Handbook. The proposed Handbook itself is not included in this notice; 
instead, an electronic version may be found on FTA's Web site, at 
www.fta.dot.gov, and in the docket, at www.regulations.gov. Paper 
copies of the proposed Handbook may be obtained by contacting FTA's 
Administrative Services Help Desk at (202) 366-4865. The FTA seeks 
comment on the proposed Handbook.

II. Section-by-Section Summary

A. Section 1--Introduction

    Section 1 of the proposed Handbook is an introductory chapter that 
provides a brief overview of the pre-award and post-delivery audit 
requirements set forth in 49 CFR parts 661 and 663, summarizes the 
contents of each subsequent section, and includes lists of relevant 
legal references, definitions, and acronyms.
    This section states that the purpose of the proposed Handbook is to 
assist

[[Page 34488]]

recipients,\1\ auditors, manufacturers, and suppliers (including 
subcontractors) in understanding and correctly applying FTA's Buy 
America pre-award and post-delivery audit requirements for rolling 
stock procurements. This section sets forth the scope of the proposed 
Handbook, explaining that FTA's Buy America regulations and rulings 
shall take precedence over the contents of the proposed Handbook in the 
event of a conflict, and specifying that this new comprehensive 
Handbook would replace FTA's two handbooks on this subject, one for 
rail vehicles and one for buses, which FTA published in 1995.
---------------------------------------------------------------------------

    \1\ That is, recipients ``purchasing rolling stock to carry 
passengers in revenue service with funds made available under 
sections 3, 9, 18, and 16(b)(2) of the Federal Mass Transit Act, as 
amended; 23 U.S.C. 103(e)(4); and section 14 of the National Capital 
Transportation Act of 1969, as amended.'' See 49 CFR 663.3.
---------------------------------------------------------------------------

    The FTA seeks comment on the content of this section.

B. Section 2--Pre-Award Audit

    Section 2 describes the pre-award audit requirements set forth in 
49 CFR 663.21-27 and explains that the recipient must ensure that the 
pre-award audit is complete before the recipient enters into a formal 
contract for the purchase of rolling stock. Pursuant to 49 CFR 663.23, 
the pre-award audit must include: A Pre-Award Buy America 
Certification, a Pre-Award Purchaser's Requirements Certification, and, 
where appropriate, a Pre-Award Certification of Compliance with or 
Inapplicability of Federal Motor Vehicle Safety Standards (FMVSS).
    This section outlines what responsibilities the recipient, 
manufacturer, and/or the supplier each bear with respect to the pre-
award audit certifications. For example, this section explains that the 
recipient is required to obtain the pre-award Buy America certification 
of compliance from the bidder (i.e., the manufacturer or supplier), and 
the recipient must keep the certification on file. This section also 
describes the documentation that recipients must review in determining 
whether or not the rolling stock to be purchased meets FTA's Buy 
America requirements.
    This section describes best practices for ensuring compliance with 
the Pre-Award Buy America Certification requirements, including key 
steps that recipients should take early in the solicitation process, as 
well as procedures recipients and manufacturers should adopt for 
verifying compliance with the domestic content and U.S. final assembly 
requirements during the pre-award audit stage.
    Moreover, this section explains that FTA, at its discretion, may 
grant a waiver of the Buy America requirements under certain enumerated 
circumstances.
    Furthermore, this section describes recipients' obligations with 
respect to the Pre-Award Purchaser's Requirements Certification, 
including the documentation requirements set forth in 49 CFR 663.27. 
This section outlines various best practices that recipients should 
utilize to ensure compliance with 49 CFR 663.27, including procedures 
for verifying that the proposed manufacturer's bid complies with the 
recipient's solicitation specifications and that the proposed 
manufacturer has the capacity and capability to produce the transit 
vehicles the recipient is seeking to procure.
    Finally, this section describes recipients' obligations with 
respect to completing a Pre-Award Certification of FMVSS Compliance or 
Inapplicability, if the procurement is for a motor vehicle(s), and this 
section explains what documentation the recipient must obtain from the 
manufacturer regarding FMVSS compliance or inapplicability.
    The FTA seeks comment on the content of this section.

C. Section 3--Post-Delivery Audit

    Section 3 describes the post-delivery audit requirements set forth 
in 49 CFR 663.31-39 and explains that the recipient must ensure that 
the post-delivery audit is complete after the formal contract has been 
signed but before title to the rolling stock is transferred to the 
recipient. Pursuant to 49 CFR 663.33, the post-delivery audit must 
include: a Post-Delivery Buy America Certification, a Post-Delivery 
Purchaser's Requirements Certification (based upon a review of the 
Resident Inspector's Report pursuant to 49 CFR 663.37), and a Post-
Delivery Certification of FMVSS Compliance or Inapplicability, where 
appropriate. This section explains the requisite processes and 
documentation requirements for each of the post-delivery audit 
certifications listed above.
    This section specifies that a post-delivery audit, as distinguished 
from a pre-award audit, must be based on actual production data from 
the manufacturer, including information provided by the supplier to the 
manufacturer, and the production data must demonstrate Buy America 
compliance.
    This section explains that while the manufacturer can provide its 
domestic content calculations in terms of percentages rather than 
dollar figures, the recipient or the third-party auditor must review 
documentation of the actual costs in order to verify compliance during 
the post-delivery audit. This section notes, however, that the post-
delivery audit report should not include the confidential data that was 
provided to the recipient or auditor.
    This section also describes best practices to aid recipients, 
manufacturers, and suppliers in achieving compliance with the post-
delivery audit requirements, including guidance on how to prepare the 
requisite Resident Inspector's Report and supporting documentation, in 
accordance with 49 CFR 663.37, and procedures for effectively verifying 
compliance with the domestic content and U.S. final assembly 
requirements.
    Also, as a best practice, this section recommends that 
manufacturers should require their suppliers to provide sufficient 
documentation that demonstrates Buy America compliance (such as a 
signed and dated certification), and manufacturers should then ensure 
that the suppliers' documentation is valid. This section also 
recommends that the manufacturer should be prepared to provide relevant 
supplier information to the recipient or third-party auditors.
    The FTA seeks comment on the content of this section.

D. Section 4--Domestic Content Calculations

    This section provides proposed guidance and clarification on how to 
calculate domestic content correctly for rolling stock procurements in 
accordance with 49 CFR 661.11, providing guidance relevant to both the 
pre-award audit and the post-delivery audit.
    In order to assist recipients, auditors, manufacturers, and 
suppliers in calculating domestic content, this section defines and 
clarifies the distinctions between components and subcomponents and 
between manufacturing and final assembly. Also, this section instructs 
Handbook readers to refer to Appendices B and C to 49 CFR 661.11 for 
lists of typical major vehicle components. These lists are intended to 
be illustrative, although non-exhaustive.
    This section explains that calculation of domestic content is 
conducted at two levels--i.e., at the vehicle level (which requires 
that the cost of the components produced in the U.S. must be more than 
60 percent of the cost of all components) and at the component level 
(which requires that more than 60 percent of

[[Page 34489]]

the subcomponents, by cost, must be of domestic origin for a component 
to be of domestic origin).
    Importantly, this section provides a sample Domestic Content 
Worksheet with detailed step-by-step instructions for how to fill out 
the worksheet and calculate domestic content.
    Moreover, this section describes best practices for handling 
special considerations that arise in domestic content calculations. For 
example, this section identifies typical non-recurring expenses (NREs) 
and instructs manufacturers to maintain evidence of the NREs for the 
pre-award and post-delivery audits. Also, this section provides 
guidance on exchange rates, transportation costs to the U.S. final 
assembly location, and tariff exemptions.
    In addition, this section provides a sample Buy America 
certification form to be used by suppliers, with accompanying step-by-
step instructions for completing the certification form.
    The FTA seeks comment on the content of this section.

E. Section 5--Frequently Asked Questions

    Section 5 addresses some of the most frequently asked questions 
(FAQs) about pre-award and post-delivery audits. Among numerous other 
topics, the FAQs concern what types of rolling stock are not subject to 
the pre-award and post-delivery audit requirements; how to calculate 
domestic content; and the responsibilities of the resident inspector.
    The FTA seeks comment on the content of this section.

F. Appendices

    The proposed Handbook contains four appendices. Appendix A contains 
domestic content calculation worksheets, including one worksheet for 
rail vehicles and one worksheet for buses.
    Appendix B contains sample compliance checklists for recipients, 
manufacturers, and suppliers to use in order to ensure that the Pre-
Award and Post-Delivery Buy America Certifications and Purchaser's 
Requirements Certifications are properly completed. This appendix also 
contains a sample Resident Inspector's Report, which the recipient must 
review before completing its Post-Delivery Purchaser's Requirements 
Certification.
    Appendix C contains sample pre-award and post-delivery certificates 
and forms. These samples are intended to aid recipients, manufacturers, 
and suppliers in complying with the 49 CFR parts 661 and 663 
requirements, and these samples may be utilized and filled out by these 
parties, where appropriate.
    Appendix D contains a sample pre-award audit report and a sample 
post-delivery audit report, including necessary certifications and 
recommended supporting documentation.
    The FTA seeks comment on the content of the appendices.

Therese W. McMillan,
Acting Administrator.
[FR Doc. 2015-14711 Filed 6-15-15; 8:45 am]
 BILLING CODE 4910-57-P



                                                                                   Federal Register / Vol. 80, No. 115 / Tuesday, June 16, 2015 / Notices                                            34487

                                                    and Agreement and to that end, may                      electronic site at http://                             I. Overview
                                                    consider matters properly before the                    www.regulations.gov.
                                                    Board.                                                                                                            The FTA’s objective in implementing
                                                                                                              (1) Federal e-Rulemaking Portal: Go to               49 CFR part 661 (Buy America
                                                    FOR FURTHER INFORMATION CONTACT: Mr.                    http://www.regulations.gov and follow                  Requirements) and 49 CFR part 663
                                                    Avelino Gutierrez, Chair, Unified                       the online instructions for submitting                 (Pre-Award and Post-Delivery Audits of
                                                    Carrier Registration Board of Directors at              comments.                                              Rolling Stock Purchases) is to support
                                                    (505) 827–4565.                                           (2) Mail: Docket Management Facility:                and promote the United States (U.S.)
                                                      Issued on: June 9, 2015.                              U.S. Department of Transportation, 1200                manufacturing industry and U.S. jobs.
                                                    Larry W. Minor,                                         New Jersey Avenue SE., West Building,                  As guidance on the pre-award and post-
                                                    Associate Administrator, Office of Policy,              Ground Floor, Room W12–140,                            delivery audit requirements for rolling
                                                    Federal Motor Carrier Safety Administration.            Washington, DC 20590–0001.                             stock procurements, FTA published two
                                                    [FR Doc. 2015–14919 Filed 6–12–15; 4:15 pm]               (3) Hand Delivery or Courier: West                   separate Buy America handbooks in
                                                    BILLING CODE 4910–EX–P                                  Building Ground Floor, Room W12–140,                   May 1995—i.e., one for rail vehicle
                                                                                                            1200 New Jersey Avenue SE., between                    procurements and one for bus
                                                                                                            9 a.m. and 5 p.m. Eastern time, Monday                 procurements.
                                                    DEPARTMENT OF TRANSPORTATION                            through Friday, except Federal holidays.                  Over the past three years, FTA has
                                                                                                              (4) Fax: 202–493–2251.                               conducted Buy America Compliance
                                                    Federal Transit Administration                                                                                 Reviews, where they observed and
                                                                                                              Instructions: You must include the
                                                    [Docket No. FTA–2015–0020]                              agency name (Federal Transit                           monitored the pre-award and post-
                                                                                                            Administration) and Docket number                      delivery audit processes for fourteen
                                                    Buy America Handbook; Conducting                                                                               capital grants. One primary finding was
                                                                                                            (FTA–2015–0020) for this notice at the
                                                    Pre-Award and Post-Delivery Audits                                                                             that FTA should provide more guidance
                                                                                                            beginning of your comments. Submit
                                                    for Rolling Stock Procurements                                                                                 and clarity on conducting pre-award
                                                                                                            two copies of your comments if you
                                                    AGENCY:    Federal Transit Administration,              submit them by mail. For confirmation                  and post-delivery Buy America audits
                                                    DOT.                                                    that FTA received your comments,                       required in FTA’s Buy America
                                                    ACTION:Notice of Availability of                        include a self-addressed stamped                       regulations (49 CFR parts 661 and 663).
                                                    Proposed Handbook and Request for                       postcard. All comments received will be                   The FTA is proposing to publish a
                                                    Comments.                                               posted without change to                               new Buy America handbook, entitled
                                                                                                            www.regulations.gov including any                      Conducting Pre-Award and Post-
                                                    SUMMARY:   The Federal Transit                          personal information provided and will                 Delivery Audits for Rolling Stock
                                                    Administration (FTA) has placed in the                  be available to internet users. You may                Procurements (Handbook), which would
                                                    docket and on its Web site proposed                     review DOT’s complete Privacy Act                      replace FTA’s two Buy America
                                                    guidance, in the form of a handbook, on                 Statement published in the Federal                     handbooks on this subject from 1995.
                                                    complying with FTA’s Buy America                        Register on April 11, 2000 (65 FR                      The proposed Handbook would apply
                                                    pre-award and post-delivery audit                       19477) or http://DocketsInfo.dot.gov.                  comprehensively to rolling stock
                                                    requirements for rolling stock                            Docket: For access to the docket to                  procurements that are subject to the pre-
                                                    procurements, from the solicitation                     read background documents and                          award and post-delivery audit
                                                    phase through final acceptance of the                   comments received, go to                               requirements set forth in 49 CFR part
                                                    rolling stock. This proposed guidance                   www.regulations.gov at any time or to                  663.
                                                    explains and illustrates how to calculate               the U.S. Department of Transportation,                    This notice provides a section-by-
                                                    domestic content of rolling stock, and it               1200 New Jersey Avenue SE., Docket                     section summary of the proposed
                                                    is intended for use by recipients of                    Operations, M–30, West Building                        Handbook. The proposed Handbook
                                                    Federal funding, auditors,                              Ground Floor, Room W12–140,                            itself is not included in this notice;
                                                    manufacturers, and suppliers (including                 Washington, DC 20590 between 9:00                      instead, an electronic version may be
                                                    subcontractors).                                        a.m. and 5:00 p.m. Eastern Standard                    found on FTA’s Web site, at
                                                       This proposed guidance explains to                                                                          www.fta.dot.gov, and in the docket, at
                                                                                                            Time, Monday through Friday, except
                                                    recipients how to verify and document                                                                          www.regulations.gov. Paper copies of
                                                                                                            Federal holidays.
                                                    their compliance with FTA’s Buy                                                                                the proposed Handbook may be
                                                    America pre-award and post-delivery                     FOR FURTHER INFORMATION CONTACT:   For
                                                                                                                                                                   obtained by contacting FTA’s
                                                    audit requirements. In addition, this                   program questions, contact Patrick
                                                                                                                                                                   Administrative Services Help Desk at
                                                    proposed guidance encourages                            Centolanzi, FTA Office of Program
                                                                                                                                                                   (202) 366–4865. The FTA seeks
                                                    recipients, manufacturers, and suppliers                Management, at (202) 366–0234 or
                                                                                                                                                                   comment on the proposed Handbook.
                                                    to adopt certain best practices to ensure               Patrick.Centolanzi@dot.gov. For legal
                                                    compliance with the pre-award and                       questions, contact Richard L. Wong,                    II. Section-by-Section Summary
                                                    post-delivery audit requirements. By                    FTA Attorney-Advisor, at (202) 366–
                                                                                                                                                                   A. Section 1—Introduction
                                                    this notice, FTA invites public comment                 4011 or Richard.Wong@dot.gov.
                                                    on this proposed guidance.                              SUPPLEMENTARY INFORMATION:                                Section 1 of the proposed Handbook
                                                    DATES: Comments must be submitted by                                                                           is an introductory chapter that provides
                                                    August 17, 2015. Late-filed comments                    Table of Contents                                      a brief overview of the pre-award and
asabaliauskas on DSK5VPTVN1PROD with NOTICES




                                                    will be considered to the extent                        I. Overview                                            post-delivery audit requirements set
                                                    practicable.                                            II. Section-by-Section Summary                         forth in 49 CFR parts 661 and 663,
                                                    ADDRESSES: Please submit your
                                                                                                               A. Section 1—Introduction                           summarizes the contents of each
                                                                                                               B. Section 2—Pre-Award Audit                        subsequent section, and includes lists of
                                                    comments by only one of the following                      C. Section 3—Post-Delivery Audit
                                                    methods, identifying your submission                                                                           relevant legal references, definitions,
                                                                                                               D. Section 4—Domestic Content                       and acronyms.
                                                    by DOT Docket Number FTA–2015–                               Calculations
                                                    0020. All electronic submissions must                      E. Section 5—Frequently Asked Questions                This section states that the purpose of
                                                    be made to the U.S. Government                             F. Appendices                                       the proposed Handbook is to assist


                                               VerDate Sep<11>2014   17:18 Jun 15, 2015   Jkt 235001   PO 00000   Frm 00125   Fmt 4703   Sfmt 4703   E:\FR\FM\16JNN1.SGM   16JNN1


                                                    34488                           Federal Register / Vol. 80, No. 115 / Tuesday, June 16, 2015 / Notices

                                                    recipients,1 auditors, manufacturers,                   requirements during the pre-award                      content calculations in terms of
                                                    and suppliers (including subcontractors)                audit stage.                                           percentages rather than dollar figures,
                                                    in understanding and correctly applying                    Moreover, this section explains that                the recipient or the third-party auditor
                                                    FTA’s Buy America pre-award and post-                   FTA, at its discretion, may grant a                    must review documentation of the
                                                    delivery audit requirements for rolling                 waiver of the Buy America requirements                 actual costs in order to verify
                                                    stock procurements. This section sets                   under certain enumerated                               compliance during the post-delivery
                                                    forth the scope of the proposed                         circumstances.                                         audit. This section notes, however, that
                                                    Handbook, explaining that FTA’s Buy                        Furthermore, this section describes                 the post-delivery audit report should
                                                    America regulations and rulings shall                   recipients’ obligations with respect to                not include the confidential data that
                                                    take precedence over the contents of the                the Pre-Award Purchaser’s                              was provided to the recipient or auditor.
                                                    proposed Handbook in the event of a                     Requirements Certification, including                    This section also describes best
                                                    conflict, and specifying that this new                  the documentation requirements set                     practices to aid recipients,
                                                    comprehensive Handbook would                            forth in 49 CFR 663.27. This section                   manufacturers, and suppliers in
                                                    replace FTA’s two handbooks on this                     outlines various best practices that                   achieving compliance with the post-
                                                    subject, one for rail vehicles and one for              recipients should utilize to ensure                    delivery audit requirements, including
                                                    buses, which FTA published in 1995.                     compliance with 49 CFR 663.27,                         guidance on how to prepare the
                                                      The FTA seeks comment on the                          including procedures for verifying that                requisite Resident Inspector’s Report
                                                    content of this section.                                the proposed manufacturer’s bid                        and supporting documentation, in
                                                                                                            complies with the recipient’s                          accordance with 49 CFR 663.37, and
                                                    B. Section 2—Pre-Award Audit                            solicitation specifications and that the               procedures for effectively verifying
                                                      Section 2 describes the pre-award                     proposed manufacturer has the capacity                 compliance with the domestic content
                                                    audit requirements set forth in 49 CFR                  and capability to produce the transit                  and U.S. final assembly requirements.
                                                                                                            vehicles the recipient is seeking to                     Also, as a best practice, this section
                                                    663.21–27 and explains that the
                                                                                                            procure.                                               recommends that manufacturers should
                                                    recipient must ensure that the pre-
                                                                                                               Finally, this section describes                     require their suppliers to provide
                                                    award audit is complete before the
                                                                                                            recipients’ obligations with respect to                sufficient documentation that
                                                    recipient enters into a formal contract
                                                                                                            completing a Pre-Award Certification of                demonstrates Buy America compliance
                                                    for the purchase of rolling stock.
                                                                                                            FMVSS Compliance or Inapplicability,                   (such as a signed and dated
                                                    Pursuant to 49 CFR 663.23, the pre-
                                                                                                            if the procurement is for a motor                      certification), and manufacturers should
                                                    award audit must include: A Pre-Award
                                                                                                            vehicle(s), and this section explains                  then ensure that the suppliers’
                                                    Buy America Certification, a Pre-Award
                                                                                                            what documentation the recipient must                  documentation is valid. This section
                                                    Purchaser’s Requirements Certification,
                                                                                                            obtain from the manufacturer regarding                 also recommends that the manufacturer
                                                    and, where appropriate, a Pre-Award
                                                                                                            FMVSS compliance or inapplicability.                   should be prepared to provide relevant
                                                    Certification of Compliance with or
                                                                                                               The FTA seeks comment on the                        supplier information to the recipient or
                                                    Inapplicability of Federal Motor Vehicle
                                                                                                            content of this section.                               third-party auditors.
                                                    Safety Standards (FMVSS).                                                                                        The FTA seeks comment on the
                                                      This section outlines what                            C. Section 3—Post-Delivery Audit
                                                                                                                                                                   content of this section.
                                                    responsibilities the recipient,                            Section 3 describes the post-delivery
                                                    manufacturer, and/or the supplier each                  audit requirements set forth in 49 CFR                 D. Section 4—Domestic Content
                                                    bear with respect to the pre-award audit                663.31–39 and explains that the                        Calculations
                                                    certifications. For example, this section               recipient must ensure that the post-                     This section provides proposed
                                                    explains that the recipient is required to              delivery audit is complete after the                   guidance and clarification on how to
                                                    obtain the pre-award Buy America                        formal contract has been signed but                    calculate domestic content correctly for
                                                    certification of compliance from the                    before title to the rolling stock is                   rolling stock procurements in
                                                    bidder (i.e., the manufacturer or                       transferred to the recipient. Pursuant to              accordance with 49 CFR 661.11,
                                                    supplier), and the recipient must keep                  49 CFR 663.33, the post-delivery audit                 providing guidance relevant to both the
                                                    the certification on file. This section                 must include: a Post-Delivery Buy                      pre-award audit and the post-delivery
                                                    also describes the documentation that                   America Certification, a Post-Delivery                 audit.
                                                    recipients must review in determining                   Purchaser’s Requirements Certification                   In order to assist recipients, auditors,
                                                    whether or not the rolling stock to be                  (based upon a review of the Resident                   manufacturers, and suppliers in
                                                    purchased meets FTA’s Buy America                       Inspector’s Report pursuant to 49 CFR                  calculating domestic content, this
                                                    requirements.                                           663.37), and a Post-Delivery                           section defines and clarifies the
                                                      This section describes best practices                 Certification of FMVSS Compliance or                   distinctions between components and
                                                    for ensuring compliance with the Pre-                   Inapplicability, where appropriate. This               subcomponents and between
                                                    Award Buy America Certification                         section explains the requisite processes               manufacturing and final assembly. Also,
                                                    requirements, including key steps that                  and documentation requirements for                     this section instructs Handbook readers
                                                    recipients should take early in the                     each of the post-delivery audit                        to refer to Appendices B and C to 49
                                                    solicitation process, as well as                        certifications listed above.                           CFR 661.11 for lists of typical major
                                                    procedures recipients and                                  This section specifies that a post-                 vehicle components. These lists are
                                                    manufacturers should adopt for                          delivery audit, as distinguished from a                intended to be illustrative, although
                                                                                                            pre-award audit, must be based on                      non-exhaustive.
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                                                    verifying compliance with the domestic
                                                    content and U.S. final assembly                         actual production data from the                          This section explains that calculation
                                                                                                            manufacturer, including information                    of domestic content is conducted at two
                                                      1 That is, recipients ‘‘purchasing rolling stock to   provided by the supplier to the                        levels—i.e., at the vehicle level (which
                                                    carry passengers in revenue service with funds          manufacturer, and the production data                  requires that the cost of the components
                                                    made available under sections 3, 9, 18, and 16(b)(2)    must demonstrate Buy America                           produced in the U.S. must be more than
                                                    of the Federal Mass Transit Act, as amended; 23
                                                    U.S.C. 103(e)(4); and section 14 of the National        compliance.                                            60 percent of the cost of all components)
                                                    Capital Transportation Act of 1969, as amended.’’          This section explains that while the                and at the component level (which
                                                    See 49 CFR 663.3.                                       manufacturer can provide its domestic                  requires that more than 60 percent of


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                                                                                   Federal Register / Vol. 80, No. 115 / Tuesday, June 16, 2015 / Notices                                                  34489

                                                    the subcomponents, by cost, must be of                  these samples may be utilized and filled               Avenue SE., Room W23–453,
                                                    domestic origin for a component to be                   out by these parties, where appropriate.               Washington, DC 20590. Telephone 202–
                                                    of domestic origin).                                      Appendix D contains a sample pre-                    366–0903, Email Linda.Williams@
                                                       Importantly, this section provides a                 award audit report and a sample post-                  dot.gov.
                                                    sample Domestic Content Worksheet                       delivery audit report, including
                                                                                                                                                                   SUPPLEMENTARY INFORMATION:     As
                                                    with detailed step-by-step instructions                 necessary certifications and
                                                                                                                                                                   described by the applicant the intended
                                                    for how to fill out the worksheet and                   recommended supporting
                                                                                                                                                                   service of the vessel BLACK STRAP is:
                                                    calculate domestic content.                             documentation.
                                                                                                                                                                      Intended Commercial Use of Vessel:
                                                       Moreover, this section describes best                  The FTA seeks comment on the
                                                                                                                                                                   ‘‘Sightseeing sailing charter boat’’.
                                                    practices for handling special                          content of the appendices.
                                                                                                                                                                      Geographic Region: ‘‘New Jersey, New
                                                    considerations that arise in domestic                   Therese W. McMillan,                                   York, Connecticut’’.
                                                    content calculations. For example, this
                                                                                                            Acting Administrator.                                     The complete application is given in
                                                    section identifies typical non-recurring
                                                                                                            [FR Doc. 2015–14711 Filed 6–15–15; 8:45 am]            DOT docket MARAD–2015–0072 at
                                                    expenses (NREs) and instructs
                                                                                                            BILLING CODE 4910–57–P                                 http://www.regulations.gov. Interested
                                                    manufacturers to maintain evidence of
                                                                                                                                                                   parties may comment on the effect this
                                                    the NREs for the pre-award and post-
                                                                                                                                                                   action may have on U.S. vessel builders
                                                    delivery audits. Also, this section
                                                                                                            DEPARTMENT OF TRANSPORTATION                           or businesses in the U.S. that use U.S.-
                                                    provides guidance on exchange rates,
                                                                                                                                                                   flag vessels. If MARAD determines, in
                                                    transportation costs to the U.S. final                  Maritime Administration                                accordance with 46 U.S.C. 12121 and
                                                    assembly location, and tariff
                                                                                                            [Docket No. MARAD–2015–0072]                           MARAD’s regulations at 46 CFR part
                                                    exemptions.
                                                                                                                                                                   388, that the issuance of the waiver will
                                                       In addition, this section provides a
                                                                                                            Requested Administrative Waiver of                     have an unduly adverse effect on a U.S.-
                                                    sample Buy America certification form
                                                                                                            the Coastwise Trade Laws: Vessel                       vessel builder or a business that uses
                                                    to be used by suppliers, with
                                                                                                            BLACK STRAP; Invitation for Public                     U.S.-flag vessels in that business, a
                                                    accompanying step-by-step instructions
                                                                                                            Comments                                               waiver will not be granted. Comments
                                                    for completing the certification form.
                                                       The FTA seeks comment on the                                                                                should refer to the docket number of
                                                                                                            AGENCY: Maritime Administration,                       this notice and the vessel name in order
                                                    content of this section.                                Department of Transportation.                          for MARAD to properly consider the
                                                    E. Section 5—Frequently Asked                           ACTION: Notice.                                        comments. Comments should also state
                                                    Questions                                               SUMMARY:   As authorized by 46 U.S.C.                  the commenter’s interest in the waiver
                                                       Section 5 addresses some of the most                 12121, the Secretary of Transportation,                application, and address the waiver
                                                    frequently asked questions (FAQs) about                 as represented by the Maritime                         criteria given in § 388.4 of MARAD’s
                                                    pre-award and post-delivery audits.                     Administration (MARAD), is authorized                  regulations at 46 CFR part 388.
                                                    Among numerous other topics, the                        to grant waivers of the U.S.-build                     Privacy Act
                                                    FAQs concern what types of rolling                      requirement of the coastwise laws under
                                                    stock are not subject to the pre-award                  certain circumstances. A request for                     Anyone is able to search the
                                                    and post-delivery audit requirements;                   such a waiver has been received by                     electronic form of all comments
                                                    how to calculate domestic content; and                  MARAD. The vessel, and a brief                         received into any of our dockets by the
                                                    the responsibilities of the resident                    description of the proposed service, is                name of the individual submitting the
                                                    inspector.                                              listed below.                                          comment (or signing the comment, if
                                                       The FTA seeks comment on the                                                                                submitted on behalf of an association,
                                                                                                            DATES: Submit comments on or before
                                                    content of this section.                                                                                       business, labor union, etc.). You may
                                                                                                            July 16, 2015.
                                                                                                                                                                   review DOT’s complete Privacy Act
                                                    F. Appendices                                           ADDRESSES: Comments should refer to                    Statement in the Federal Register
                                                       The proposed Handbook contains four                  docket number MARAD–2015–0072.                         published on April 11, 2000 (Volume
                                                    appendices. Appendix A contains                         Written comments may be submitted by                   65, Number 70; Pages 19477–78).
                                                    domestic content calculation                            hand or by mail to the Docket Clerk,
                                                                                                            U.S. Department of Transportation,                       By Order of the Maritime Administrator.
                                                    worksheets, including one worksheet for                                                                          Dated: June 8, 2015.
                                                    rail vehicles and one worksheet for                     Docket Operations, M–30, West
                                                                                                            Building Ground Floor, Room W12–140,                   Thomas M. Hudson, Jr.,
                                                    buses.
                                                       Appendix B contains sample                           1200 New Jersey Avenue SE.,                            Acting Secretary, Maritime Administration.
                                                    compliance checklists for recipients,                   Washington, DC 20590. You may also                     [FR Doc. 2015–14793 Filed 6–15–15; 8:45 am]
                                                    manufacturers, and suppliers to use in                  send comments electronically via the                   BILLING CODE 4910–81–P

                                                    order to ensure that the Pre-Award and                  Internet at http://www.regulations.gov.
                                                    Post-Delivery Buy America                               All comments will become part of this
                                                    Certifications and Purchaser’s                          docket and will be available for                       DEPARTMENT OF TRANSPORTATION
                                                    Requirements Certifications are properly                inspection and copying at the above
                                                                                                            address between 10 a.m. and 5 p.m.,                    Maritime Administration
                                                    completed. This appendix also contains
                                                    a sample Resident Inspector’s Report,                   E.T., Monday through Friday, except                    [Docket No. MARAD–2015 0075]
                                                    which the recipient must review before                  federal holidays. An electronic version
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                                                    completing its Post-Delivery Purchaser’s                of this document and all documents                     Requested Administrative Waiver of
                                                    Requirements Certification.                             entered into this docket is available on               the Coastwise Trade Laws: Vessel
                                                       Appendix C contains sample pre-                      the World Wide Web at http://                          SASSY; Invitation for Public
                                                    award and post-delivery certificates and                www.regulations.gov.                                   Comments
                                                    forms. These samples are intended to                    FOR FURTHER INFORMATION CONTACT:                       AGENCY: Maritime Administration,
                                                    aid recipients, manufacturers, and                      Linda Williams, U.S. Department of                     Department of Transportation.
                                                    suppliers in complying with the 49 CFR                  Transportation, Maritime
                                                                                                                                                                   ACTION: Notice.
                                                    parts 661 and 663 requirements, and                     Administration, 1200 New Jersey


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Document Created: 2018-02-22 10:22:48
Document Modified: 2018-02-22 10:22:48
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of Availability of Proposed Handbook and Request for Comments.
DatesComments must be submitted by August 17, 2015. Late-filed comments will be considered to the extent practicable.
ContactFor program questions, contact Patrick Centolanzi, FTA Office of Program Management, at (202) 366-0234 or [email protected] For legal questions, contact Richard L. Wong, FTA Attorney-Advisor, at (202) 366-4011 or [email protected]
FR Citation80 FR 34487 

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