81 FR 89570 - Notice of Buy America Waiver for Replacement Parts on Diesel Multiple Unit Rail Vehicles

DEPARTMENT OF TRANSPORTATION
Federal Transit Administration

Federal Register Volume 81, Issue 238 (December 12, 2016)

Page Range89570-89571
FR Document2016-29707

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.

Federal Register, Volume 81 Issue 238 (Monday, December 12, 2016)
[Federal Register Volume 81, Number 238 (Monday, December 12, 2016)]
[Notices]
[Pages 89570-89571]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-29707]


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

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.

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

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]
 BILLING CODE P


Current View
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 Buy America waiver.
DatesThe waiver is effective immediately.
ContactCecelia Comito, Assistant Chief Counsel, at (202) 366-2217 or [email protected]
FR Citation81 FR 89570 

2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR