81 FR 15406 - Notice of Proposed Buy America Waiver for Special Trackwork Turnout Switch Components

DEPARTMENT OF TRANSPORTATION
Federal Transit Administration

Federal Register Volume 81, Issue 55 (March 22, 2016)

The Federal Transit Administration (FTA) received a request from the Detroit Transportation Corporation (DTC) for a Buy America non-availability waiver for the procurement of two special trackwork turnout switch components (switch). The existing switches were installed as original equipment in 1987 and designed to European standards, using AREMA 115RE rail throughout the turnout with a special 60E1A1 switch point section. The proper operation of the switch is essential for the continued, safe operations of DTC vehicles. DTC seeks a waiver for the switch because there are no domestic manufacturers of the switch. In addition, European design and the proprietary nature of the equipment means that alternative proposers would need to first familiarize themselves with European standards, design, construction, and installation procedures to provide a replacement switch. DTC issued two requests for proposals (RFPs) for procurement of the switch, and received only one proposal, which was not Buy America-complaint. 49 U.S.C. 5323(j)(2) and 49 CFR 661.7(c)(2). In accordance with 49 U.S.C. 5323(j)(3)(A), FTA is providing notice of the non-availability waiver request and seeks public comment before deciding whether to grant the request. If granted, the waiver would apply for the switch identified in the waiver request.

[Federal Register Volume 81, Number 55 (Tuesday, March 22, 2016)]
[Notices]
[Pages 15406-15407]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-06375]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

[Docket No. FTA-2016-0005]


Notice of Proposed Buy America Waiver for Special Trackwork 
Turnout Switch Components

AGENCY: Federal Transit Administration, DOT.

ACTION: Notice of Proposed Buy America waiver and request for comment.

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SUMMARY: The Federal Transit Administration (FTA) received a request 
from the Detroit Transportation Corporation (DTC) for a Buy America 
non-availability waiver for the procurement of two special trackwork 
turnout switch components (switch). The existing switches were 
installed as original equipment in 1987 and designed to European 
standards, using AREMA 115RE rail throughout the turnout with a special 
60E1A1 switch point section. The proper operation of the switch is 
essential for the continued, safe operations of DTC vehicles. DTC seeks 
a waiver for the switch because there are no domestic manufacturers of 
the switch. In addition, European design and the proprietary nature of 
the equipment means that alternative proposers would need to first 
familiarize themselves with European standards, design, construction, 
and installation procedures to provide a replacement switch. DTC issued 
two requests for proposals (RFPs) for procurement of the switch, and 
received only one proposal, which was not Buy America-complaint. 49 
U.S.C. 5323(j)(2) and 49 CFR 661.7(c)(2). In accordance with 49 U.S.C. 
5323(j)(3)(A), FTA is providing notice of the non-availability waiver 
request and seeks public comment before deciding whether to grant the 
request. If granted, the waiver would apply for the switch identified 
in the waiver request.

DATES: Comments must be received by March 29, 2016. Late-filed comments 
will be considered to the extent practicable.

ADDRESSES: Please submit your comments by one of the following means, 
identifying your submissions by docket number FTA-2016-0005:
    1. Web site: http://www.regulations.gov. Follow the instructions 
for submitting comments on the U.S. Government electronic docket site.
    2. Fax: (202) 493-2251.
    3. Mail: U.S. Department of Transportation, 1200 New Jersey Avenue 
SE., Docket Operations, M-30, West Building, Ground Floor, Room W12-
140, Washington, DC 20590-0001.
    4. Hand Delivery: U.S. Department of Transportation, 1200 New 
Jersey Avenue SE., Docket Operations, M-30, West Building, Ground 
Floor, Room W12-140, Washington, DC 20590-0001 between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays.
    Instructions: All submissions must make reference to the ``Federal 
Transit Administration'' and include docket number FTA-2016-0005. Due 
to the security procedures in effect since October 2011, mail received 
through the U.S. Postal Service may be subject to delays. Parties 
making submissions responsive to this notice should consider using an 
express mail firm to ensure the prompt filing of any submissions not 
filed electronically or by hand. Note that all submissions received, 
including any personal information therein, will be posted without 
change or alteration to http://www.regulations.gov. For more 
information, you may review DOT's complete Privacy Act Statement in the 
Federal Register published April 11, 2000 (65 FR 19477), or you may 
visit http://www.regulations.gov.

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 provide

[[Page 15407]]

notice and seek public comment on whether the FTA should grant a Buy 
America non-availability waiver for the Detroit Transportation 
Corporation (DTC) for the procurement of replacement special trackwork 
turnout switch components. On July 13, 2015, DTC requested a Buy 
America waiver for the switch because it is not produced in the United 
States in sufficiently and reasonably available quantities or of a 
satisfactory quality. 49 U.S.C. 5323(j)(2)(A); 49 CFR 661.7(c).
    By way of background, DTC is the owner and operator of the Detroit 
People Mover, which is the largest municipal rail system in Michigan. 
It is a fully automated light rail system that operates twelve (12) 
rail cars between thirteen (13) passenger stations on an elevated 
single track in a 2.9 mile loop in Detroit's central business district. 
In March 2015, DTC solicited bids to procure special trackwork switch 
point for Turnout 3, which is located adjacent to the Maintenance 
Facility Building and provides access to the building. The special 
trackwork of concern was originally procured from Germany (by Krupp 
Stahl AG) and is of European standards, using AREMA 115RE rail 
throughout the turnout with special 60E1A1 (formerly Zu-160) track 
point section. The project includes replacing stock rails that connect 
the switch point section to the original running rails, as well as 
rubber pads; both the rails and pads will be sourced domestically. The 
waiver only applies to the switch component of the project.
    DTC issued the first RFP in March 2015 to thirteen (13) companies: 
Atlantic Track & Turnout Co.; LB Foster Co.; Cleveland Track Materials 
(Vossioh); Progress Rail Services Corp.; Unitrac Railroad Materials, 
Inc.; London Trackwork, Inc.; Skelton; Voestalpine Nortrak, Inc.; 
RailWorks Projects, Inc.; All American Track; Construction Data 
Company; IntegriCo Composites; and Delta Railroad Construction, Inc. 
DTC received no responses. It contacted all the companies, and reissued 
the RFP in May 2015 to six (6) firms that expressed an interest in the 
project. From this RFP, DTC only received one proposal, from Delta 
Railroad Construction, Inc. (Delta). Delta, however, cannot comply with 
Buy America requirements because the only manufacturer of the switch is 
a German company. To change the manufacturer, Delta would need to re-
engineer the switch and modify the ``frog'' section and guideway 
elements; this design would need to be certified. Delta would then need 
to locate a domestic source to manufacture the re-engineered switch. 
Upon installation, the proprietary software designer of the automated 
control train system would need to certify the switch's performance in 
order to ensure it could be safely used with the existing guideway 
switch machines. Moreover, DTC believes there is inadequate competition 
for the project and needs to move forward with this important 
maintenance project. Thus, DTC is seeking a Buy America non-
availability waiver under 49 CFR 661.7(c)(1) for the switch.
    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 waiver (non-availability 
waiver). 49 U.S.C. 5323(j)(2)(B); 49 CFR 661.7(c). Under 49 CFR 
661.7(c)(1), ``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.'' In addition, 
``If the Secretary denies an application for a waiver . . . the 
Secretary shall provide to the applicant a written certification that--
the steel, iron, or manufactured goods, as applicable, (referred to in 
this subparagraph as the `item') is produced in the United States in a 
sufficient and reasonably available amount; (i) the item produced in 
the United States is of a satisfactory quality; and (ii) includes a 
list of known manufacturers in the United States from which the item 
can be obtained.'' 49 U.S.C. 5323(j)(6).
    The purpose of this notice is to publish DTC's request and seek 
public comment from all interested parties in accordance with 49 U.S.C. 
5323(j)(3)(A). Comments will help FTA understand completely the facts 
surrounding the request, including the merits of the request. A full 
copy of the request has been placed in docket number FTA-2016-0005.

    Issued on March 16, 2016.
Dana Nifosi,
Deputy Chief Counsel.
[FR Doc. 2016-06375 Filed 3-21-16; 8:45 am]
 BILLING CODE 4910-57-P