81 FR 89573 - Notice of Buy America Waiver for Ultrastraight Rail

DEPARTMENT OF TRANSPORTATION
Federal Transit Administration

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

The Federal Transit Administration (FTA) received a request from the Central Puget Sound Transit Authority (Sound Transit) for a Buy America non-availability waiver for the procurement of ultrastraight rail. Sound Transit seeks to procure approximately 15,100 feet ultrastraight rail for a portion of its Northgate Link light rail extension to avoid exceedance of contractually-mandated vibration thresholds. 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 a single procurement by Sound Transit.

[Federal Register Volume 81, Number 238 (Monday, December 12, 2016)]
[Notices]
[Pages 89573-89574]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-29684]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

[Docket No. FTA-2016-0037]


Notice of Buy America Waiver for Ultrastraight Rail

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 Central Puget Sound Transit Authority (Sound Transit) for a 
Buy America non-availability waiver for the procurement of 
ultrastraight rail. Sound Transit seeks to procure approximately 15,100 
feet ultrastraight rail for a portion of its Northgate Link light rail 
extension to avoid exceedance of contractually-mandated vibration 
thresholds. 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 a single 
procurement by Sound Transit.

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 Sound 
Transit for the procurement of approximately 15,100 feet of 
ultrastraight rail 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 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).
    Sound Transit's Northgate Link extension is a $1.9 billion rail 
project that consists of 4.3 miles and 3 new stations, and runs through 
residential and employment areas, including the University of 
Washington. Approximately 15,100 feet of that extension will run under 
the University of Washington's Health Sciences and Physics-Astronomy 
buildings, which house precision-measurement laboratories and 
experiments conducted by Nobel Prize winning faculty. The project's 
potential impact on the University's buildings was considered as part 
of the environmental review process required by the National 
Environmental Policy Act (NEPA). In 2006, FTA issued a final Record of 
Decision (ROD) for the project, and required implementation of 
mitigation measures, including a measure that would minimize vibration 
under the University buildings. Sound Transit then executed a 2007 
agreement with the University of Washington in which Sound Transit 
agreed to not exceed specified vibration thresholds, which could be met 
through use of ultrastraight rail, with parameters for that 
ultrastraight rail based on American Railway Engineers Maintenance-of-
Way Association (``AREMA'') standards.
    Sound Transit contacted domestic rail manufacturers regarding their 
ability to produce ultrastraight rail within the agreed upon AREMA 
specifications for the rail. Two leading manufacturers, Steel Dynamics, 
Inc. (SDI) and EVRAZ North America (EVRAZ), stated unequivocally that 
they are unable to fabricate rail that meets the specification. Sound 
Transit subsequently explored using domestically-sourced, milled rail. 
However, testing of the as-installed milled rail found that the rail 
failed to meet the applicable vibration thresholds. Due to its 
unsuccessful

[[Page 89574]]

efforts to procure domestically-sourced ultrastraight rail within the 
vibration thresholds, Sound Transit seeks a non-availability waiver of 
the Buy America requirements for domestically-sourced steel. FTA 
published a notice in the Federal Register announcing the Buy America 
waiver request (Docket No. FTA-2016-0037) and sought comments from all 
interested parties, including potential vendors and suppliers. The 
comment period closed on November 8, 2016, and no comments were 
received.
    Therefore, based on the information supplied in support of Sound 
Transit's request for a Buy America waiver and the lack of any 
comments, FTA hereby waives its Buy America requirements for the 
procurement of ultrastraight rail on the grounds that the manufactured 
product is not available in the U.S. This waiver is limited to a single 
procurement by Sound Transit for the procurement of approximately 
15,100 feet of ultrastraight rail.

Ellen Partridge,
Chief Counsel.
[FR Doc. 2016-29684 Filed 12-9-16; 8:45 am]
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