[Federal Register Volume 77, Number 38 (Monday, February 27, 2012)]
[Notices]
[Pages 11595-11596]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-4460]



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NATIONAL SCIENCE FOUNDATION


Notice of Buy American Waiver under the American Recovery and 
Reinvestment Act of 2009

AGENCY: National Science Foundation (NSF).

ACTION: Notice.

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SUMMARY: NSF is hereby granting a limited exemption of section 1605 of 
the American Recovery and Reinvestment Act of 2009 (Recovery Act), 
Public Law 111-5, 123 Stat. 115, 303 (2009), with respect to the 
purchase of the quiet seawater system balancing valves that will be 
used in the Alaska Region Research Vessel (ARRV). These valves regulate 
the proper flow of cooling water to the ship's major machinery.

DATES: February 27, 2012.

ADDRESSES: National Science Foundation, 4201 Wilson Blvd., Arlington, 
Virginia 22230.

FOR FURTHER INFORMATION CONTACT: Mr. Jeffrey Leithead, Division of 
Acquisition and Cooperative Support, 703-292-4595

SUPPLEMENTARY INFORMATION: In accordance with section 1605(c) of the 
Recovery Act and section 176.80 of Title 2 of the Code of Federal 
Regulations, the National Science Foundation (NSF) hereby provides 
notice that on February 15, 2012, the NSF Chief Financial Officer, in 
accordance with a delegation order from the Director of the agency, 
granted a limited project exemption of section 1605 of the Recovery Act 
(Buy American provision) with respect to the quiet seawater system 
balancing valves that will be used in the ARRV. The basis for this 
exemption is section 1605(b)(2) of the Recovery Act, in that balancing 
valves of satisfactory quality are not produced in the United States in 
sufficient and reasonably available commercial quantities. The total 
cost of the three (3) required balancing valves (~$43,500) represents 
less than 0.1% of the total $148 million Recovery Act award provided 
for construction of the ARRV.

I. Background

    The Recovery Act appropriated $400 million to NSF for several 
projects being funded by the Foundation's Major Research Equipment and 
Facilities Construction (MREFC) account. The ARRV is one of NSF's MREFC 
projects. Section 1605(a) of the Recovery Act, the Buy American 
provision, states that none of the funds appropriated by the Act ``may 
be used for a project 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.''
    The ARRV has been developed under a cooperative agreement awarded 
to the University of Alaska, Fairbanks (UAF) that began in 2007. UAF 
executed the shipyard contract in December 2009 and the project is 
currently under construction. The purpose of the Recovery Act is to 
stimulate economic recovery in part by funding current construction 
projects like the ARRV that are ``shovel ready'' without requiring 
projects to revise their standards and specifications, or to restart 
the bidding process again.
    Subsections 1605(b) and (c) of the Recovery Act authorize the head 
of a Federal department or agency to waive the Buy American provision 
if the head of the agency finds that: (1) Applying the provision would 
be inconsistent with the public interest; (2) the relevant goods are 
not produced in the United States in sufficient and reasonably 
available quantities and of a satisfactory quality; or (3) the 
inclusion of the goods produced in the United States will increase the 
cost of the project by more than 25 percent. If the head of the Federal 
department or agency waives the Buy American provision, then the head 
of the department or agency is required to publish a detailed 
justification in the Federal Register. Finally, section 1605(d) of the 
Recovery Act states that the Buy American provision must be applied in 
a manner consistent with the United States' obligations under 
international agreements.

II. Finding That Relevant Goods are Not Produced in the United States 
in Sufficient and Reasonably Available Quality

    Cavitation, which is the formation of small bubbles due to a vacuum 
being created when the flow of water is not smooth, is an important 
factor to control for underwater radiated noise. Cavitation is most 
prevalent on propellers, but can occur whenever an improperly designed 
part of the hull moves through the water or water flows through an 
improperly designed portion of a system. The ARRV is specifically 
designed to meet a low underwater radiated noise standard that relates 
to fish hearing (Specification Section 073.2). This standard is 
critical to science operations in that if the noise from the vessel is 
too high, the behavior of the species being studied will be changed, 
which negatively impacts the population data being collected. If the 
vessel does not meet this low underwater radiated noise standard, the 
science mission requirements will not be met. All modern research 
vessels are being built with low underwater noise in mind not only 
because of improved science capabilities but also because of the 
growing understanding of the negative environmental effects of noise in 
the water, particularly for marine mammals.
    The balancing valves are part of the seawater cooling system on the 
ARRV and are necessary to adjust proper flow rates to major equipment 
so that they operate at the proper temperature. The valves are 
installed in the system piping, and the intake for this system connects 
directly to the sea through an opening in the hull. Any cavitation 
noise quickly travels through the water in the pipes and then radiates 
out into the water. The ARRV specification Section 523 specifies that 
the seawater cooling system is a ``noise critical'' system. This 
particular system is always in operation, and the design and 
installation of the system and its components affects the vessel's 
underwater radiated noise signature (noise emitting into the open water 
from the vessel). Orifice plates, flat plates with the correctly-sized 
hole are commonly used for balancing seawater systems in vessels, but 
they cause significant cavitation. Orifice plates are only suitable for 
vessels that are not designed to reduce underwater radiated noise. 
Therefore, technical requirements for selecting the quiet seawater 
system balancing valves used in the ARRV include:
    1. Developed from materials suitable for use in seawater;
    2. Designed for ``Quiet Type'': Valve body and internal components 
specifically designed for smooth flow and low cavitation;
    3. Sized the same as the nominal pipe size in which they are 
installed (smaller size increases the chances of cavitation).
    Failure to meet any of these technical requirements would have 
severe negative consequences for the project by preventing the vessel 
from meeting the specified low underwater radiated noise standard 
described above.
    If the valves are not suitable for use in seawater, then they will 
prematurely fail, which could in turn cause overheating of the 
machinery or require operating the vessel at reduced performance until 
repairs can be made. Also, if not made for seawater, the body and 
internal component will erode, change the shape, and in turn cause 
cavitation.
    If the valves are not specifically designed and sized for smooth 
water flow, cavitation will occur and the vessel's low underwater 
radiated noise

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requirement will not be met. The underwater radiated noise limit is 
being achieved through a material specification (specifically calling 
out hardware requirements to the shipyard) as opposed to a performance 
specification where the shipyard has responsibility for meeting the 
requirement any way they see fit. Therefore, UAF bears full 
responsibility for this capability, which makes any deviation from the 
specifications an even greater risk to project success.
    The ``quiet'' seawater system balancing valves are larger than 
conventional balancing valves, and future replacement of non-compliant 
valves would entail costly re-design and re-work of the entire cooling 
system. Because of the piping size, type, and location, this would cost 
between $300,000 and 500,000 or roughly 10 times the cost of the 
compliant valves.
    The market research included trade publication and Web based 
searches for balancing valves of all types. Approximately thirty (30) 
companies were identified that manufacture balancing valves. Of these, 
only five (5) appeared to produce valves that would meet specification 
requirements (based on the information found on company Web sites) and 
therefore warranted additional investigation (via telephone and email) 
by the shipyard. Of the five, only two (2) companies were identified 
that could produce low cavitation, marine-grade seawater system 
balancing valves; one was both foreign-owned and manufactured, while 
the other was U.S.-owned and foreign-manufactured. The shipyard decided 
to pursue the U.S.-owned valve company as the best option, but this 
purchase would still require an exemption due to foreign manufacture.
    The project's conclusion is that there are no U.S. manufacturers 
who produce a suitable seawater system balancing valves that meet all 
of the ARRV requirements, so an exemption to the Buy American 
requirements is necessary.
    In the absence of a U.S. manufacturer that could provide 
requirements-compliant quiet seawater system balancing valves, UAF 
requested that NSF issue a Section 1605 exemption determination with 
respect to the purchase of a foreign-supplied, requirements-compliant 
quiet seawater system balancing valves, so that the vessel will meet 
the specific design and technical requirements that, as explained 
above, are necessary for this vessel to be able to perform its mission 
successfully. Furthermore, the shipyard's market research indicated 
that quiet seawater system balancing valves compliant with the ARRV's 
technical specifications and requirements are commercially available 
from a U.S. company within their standard product lines, but are 
manufactured overseas, which necessitates an exemption.
    NSF's Division of Acquisition and Cooperative Support (DACS) and 
other NSF program staff reviewed the UAF exemption request submittal, 
found that it was complete, and determined that sufficient technical 
information was provided in order for NSF to evaluate the exemption 
request and to conclude that an exemption is needed and should be 
granted.

III. Exemption

    On February 15, 2012, based on the finding that no domestically 
produced quiet seawater system balancing valves met all of the ARRV's 
technical specifications and requirements and pursuant to section 
1605(b), the NSF Chief Financial Officer, in accordance with a 
delegation order from the Director of the agency signed on May 27, 
2010, granted a limited project exemption of the Recovery Act's Buy 
American requirements with respect to the procurement of quiet seawater 
system balancing valves.

    Dated: February 17, 2012.
Lawrence Rudolph,
General Counsel.
[FR Doc. 2012-4460 Filed 2-24-12; 8:45 am]
BILLING CODE 7555-01-P