[Federal Register Volume 81, Number 52 (Thursday, March 17, 2016)]
[Pages 14524-14525]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-06012]



Office of the Secretary

Contracting Initiative

AGENCY: Office of the Secretary (OST), Department of Transportation 

ACTION: Notice.


SUMMARY: The DOT has extended the contracting initiative pilot program 
for a period of 1 year until March 6, 2017.

DATES: This pilot program became effective on March 6, 2015.

FOR FURTHER INFORMATION CONTACT: For technical information: Mr. Michael 
Harkins, Deputy Assistant General Counsel for General Law, Office, U.S. 
Department of Transportation, 1200 New Jersey Avenue SE., Washington, 
DC 20590, 202-366-0590 (telephone), [email protected] (email).


Electronic Access

    An electronic copy of this document may also be downloaded from the 
Office of the Federal Register's home page at http://www.archives.gov/federal_register and the Government Printing Office's Web page at 


    On March 6, 2015, DOT published a notice in the Federal Register 
(80 FR 12257) establishing a contracting initiative pilot program under 
which, Federal Highway Administration (FHWA) and Federal Transit 
Administration (FTA) recipients and subrecipients could utilize various 
contracting requirements that generally have been disallowed due to 
concerns about adverse impacts on competition. The purpose of the pilot 
program is to determine whether the use of such requirements ``unduly 
limit competition,'' as provided in an August 23, 2013, opinion from 
the Department of Justice's Office of Legal Counsel (OLC). DOT 
established the pilot program for a period of 1 year unless extended. 
DOT has decided to extend this pilot program for a period of 1 
additional year until March 6, 2017. The extension of this pilot 
program will provide FHWA and FTA recipients and subrecipients 
flexibility to continue operating under the pilot program while DOT 
conducts its evaluation as well as provide DOT with additional projects 
to consider in evaluating the impacts on competition. The Department 
extended the pilot program on March 4, 2016. A notice of extension was 
posted on the Department's Web site at https://www.transportation.gov/regulations/whats-new.
    Please note that Section 415 of the Consolidated Appropriations 
Act, 2016,

[[Page 14525]]

Public Law 114-113 (FY 2016 Appropriations Act), continues the 
restriction on the Federal Transit Administration (FTA) from using FY 
2016 funds to implement, administer or enforce 49 CFR 18.36(c)(2) for 
construction hiring. Accordingly, FTA recipients and subrecipients do 
not need to submit applications for participation in the pilot program 
for contracts awarded or advertised on or before September 30, 2016.
    Additionally, we note that Section 192 of the FY 2016 
Appropriations Act expressly authorizes DOT-assisted contracts under 
titles 49 and 23 of the United States Code utilizing geographic, 
economic, or other hiring preferences not otherwise authorized by law 
if the grant recipient certifies the following:
    (1) That except with respect to apprentices or trainees, a pool of 
readily available but unemployed individuals possessing the knowledge, 
skill, and ability to perform the work that the contract requires 
resides in the jurisdiction;
    (2) That the grant recipient will include appropriate provisions in 
its bid document ensuring that the contractor does not displace any of 
its existing employees in order to satisfy such hiring preference; and
    (3) That any increase in the cost of labor, training, or delays 
resulting from the use of such hiring preference does not delay or 
displace any transportation project in the applicable Statewide 
Transportation Improvement Program or Transportation Improvement 
    Accordingly, recipients and subrecipients should follow the 
application process described in the March 6, 2015, Federal Register 
notice (80 FR 12257) except that recipients and subrecipients must also 
include the required certifications from Section 192 of the FY 2016 
Appropriations Act as discussed above.

    Issued in Washington, DC, on March 8, 2016.
Anthony R. Foxx,
Secretary of Transportation.
[FR Doc. 2016-06012 Filed 3-16-16; 8:45 am]