[Federal Register Volume 76, Number 115 (Wednesday, June 15, 2011)]
[Notices]
[Pages 34962-34963]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-14738]


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

DEPARTMENT OF AGRICULTURE

Rural Housing Service


Project Waiver of Section 1605 (Buy American Requirements) of the 
American Recovery and Reinvestment Act of 2009 (ARRA) for the Haywood 
County, North Carolina, Social Services, Adaptive Renovation Project

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

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

SUMMARY: The United States Department of Agriculture (USDA) grants a 
project waiver of the Buy American Requirements [manufactured goods are 
not produced in the United States in sufficient and reasonably 
available quantities and of a satisfactory quality] of ARRA, to Haywood 
County, North Carolina, (County) for the purchase of foreign-
manufactured Heating,Ventilation, Air Conditioning (HVAC) equipment for 
an adaptive reuse renovation project for the Haywood County Department 
of Social Services. This is a project-specific waiver under section 
1605(b)(2) of ARRA. This waiver only applies to the use of the 
specified product for the ARRA project being proposed. Any other ARRA 
recipient that wishes to use the same product must apply for a separate 
waiver based on project-specific circumstances. The County-proposed 
HVAC improvements were selected to address the unique conditions 
presented by the existing building. Based upon information submitted by 
the County and its consultants, it was determined that the HVAC 
equipment that will meet the County's design and performance 
specifications is manufactured only by Daikin of Japan and Thailand. 
This determination is based on the review and recommendations of the 
Rural Development Buy American Coordinator. The County, through its 
design engineer, has provided sufficient documentation to support its 
request. The Under Secretary for Rural Development has concurred in 
this decision to waive section 1605 of ARRA. This action permits the 
purchase of a Daikin VRV III HVAC unit. This unit addresses the 
operational requirements to heat and cool simultaneously, perform very 
efficiently, and is compatible and adaptable to the space restrictions 
created by the existing facility.

DATES: June 15, 2011.

ADDRESSES: Dallas Tonsager, Under Secretary, Rural Development, U.S. 
Department of Agriculture, 1400 Independence Avenue, SW., Room 205-

[[Page 34963]]

W, Washington, DC 20250-0107, (202) 720-4581.

FOR FURTHER INFORMATION CONTACT: William Downs, Senior Architect, 
Program Support Staff, (202) 720-1499, Rural Housing Service, Stop 
0761, U.S. Department of Agriculture, 1400 Independence Avenue, SW., 
Washington, DC 20250-0761.

SUPPLEMENTARY INFORMATION: In accordance with ARRA section 1605(c) and 
pursuant to section 1605(b)(2), USDA hereby provides notice that it is 
granting a project-specific waiver of the Buy American Requirements of 
ARRA, to Haywood County, North Carolina, for the purchase of HVAC 
equipment, manufactured by Daikin of Japan for the Haywood County 
Department of Social Services Adaptive Reuse, Renovation Project.

I. Background

    Section 1605(a) of ARRA requires that none of the appropriated 
funds may be used for the construction, alteration, maintenance, or 
repair of a public building or public work unless all of the iron, 
steel, and manufactured goods used in the project are produced in the 
United States, or unless a waiver is provided to the recipient by the 
head of the appropriate department or agency, here, the Secretary of 
USDA. According to section 1605(b) of ARRA, a waiver may be granted if 
the Secretary determines that (1) applying these requirements would be 
inconsistent with public interest; (2) iron, steel, and manufactured 
goods are not produced in the United States in sufficient and 
reasonably available quantities and of a satisfactory quality; or (3) 
inclusion of iron, steel, and manufactured goods produced in the United 
States will increase the cost of the overall project by more than 25 
percent. The County has requested a waiver from the Buy American 
Requirement for the purchase of HVAC equipment suitable for the 
conditions of the existing facility.
    The purchase of the new HVAC equipment is intended to provide the 
specified conditioning for the Haywood County Department of Social 
Services Adaptive Reuse, Renovation project. The estimated cost of the 
overall improvements to the County's Social Services building project 
is $5.2 million. In designing the HVAC equipment, the designers of 
record evaluated the various technologies based on the following 
factors:
     The project requirements include addressing the 
limitations of space for HVAC equipment and the associated accessories.
     The project requires a very high-efficiency performance 
for the conditions presented by the region and the requirement for 
simultaneous heating and cooling with the added benefit of using non-
ozone depleting refrigerant.
     The project requires a system that uses inverter 
technology.
    As part of an exhaustive review and search for potentially viable 
HVAC units, the County and their consultants determined that there is 
no domestic manufacturer of HVAC equipment that provides the specified 
performance and technical features required for this project.
    According to the County, the only HVAC equipment that meets the 
technical specifications is not manufactured in the United States. As a 
result, the County requested a waiver of the ARRA Buy American 
provisions on the basis of nonavailability of a United States 
manufactured product that will meet the design and performance criteria 
specified for this HVAC system.

II. Nonavailability Finding

    The evaluation by USDA's technical review team and architect 
supports the County's claim that a suitable HVAC system that meets the 
specifications for this project is not available in sufficient and 
reasonably available commercial quantities of a satisfactory quality 
that are manufactured in the United States. USDA's technical review 
team and architects reviewed a memorandum submitted by the County 
describing the foreign equipment that fits the technical specifications 
for the HVAC equipment and the process the County followed in adopting 
the HVAC design. USDA's technical review team and architects conducted 
a nationwide review of equipment vendors, manufacturers' 
representatives, and associated resources typically relied on by 
designers of HVAC equipment. The purpose of USDA's review process was 
to determine whether there was any HVAC equipment manufactured in the 
United States that meets the County's design specifications and 
performance requirements. As a result of this review, the Secretary has 
determined that, based on the available information, and to the best of 
USDA's knowledge, there is no HVAC equipment manufactured in the United 
States that meets the County's design specifications and performance 
requirements for the County's Social Services Adaptive Reuse, 
Renovation Project.
    The Rural Development Buy American Coordinator has reviewed this 
waiver request and has determined that the supporting documentation 
provided by the County established a proper basis that the manufactured 
good was not available from a producer in the United States able to 
meet the design specifications and performance requirements for the 
proposed project.

III. Waiver

    Having established a proper basis that this manufactured good was 
not available from a producer in the United States, the County is 
hereby granted a waiver from the Buy American requirements. This waiver 
permits use of ARRA funds for the purchase of the specified Daikin VRV 
III heat recovery system documented in the County's waiver request 
submittal dated February 18, 2011, as part of its Social Services 
Adaptive Reuse, Renovation Project. This supplementary information 
constitutes the detailed written justification required by section 
1605(c) of ARRA for waivers ``based on a finding under subsection 
(b).''

IV. Equal Opportunity and Non-Discrimination Requirements

    USDA prohibits discrimination in all of its programs and activities 
on the basis of race, color, national origin, age, disability, and, 
where applicable, sex, marital status, parental status, religion, 
sexual orientation, genetic information, political beliefs, reprisal, 
or, because all or part of an individual's income is derived from any 
public assistance program. (Not all prohibited bases apply to all 
programs.) Persons with disabilities who require alternative means for 
communication of program information (braille, large print, audiotape, 
etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and 
TDD). To file a complaint of discrimination, write to USDA, Director, 
Office of Civil Rights, 1400 Independence Avenue, SW., Washington, DC 
20250-9410, or call (800) 795-3272 (voice), or (202) 720-6382 (TDD). 
``USDA is an equal opportunity provider, employer, and lender.''

    Authority: Public Law 111-5, Section 1605.

    Signed in Washington, DC on June 8, 2011.
Thomas J. Vilsack,
Secretary of Agriculture.
[FR Doc. 2011-14738 Filed 6-14-11; 8:45 am]
BILLING CODE 3410-XV-P