[Federal Register Volume 81, Number 75 (Tuesday, April 19, 2016)]
[Notices]
[Page 23077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-08988]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration

[Docket No. FTA-2016-0005]


Notice of Buy America Waiver for Special Trackwork Turnout Switch 
Components.

AGENCY: Federal Transit Administration, DOT.

ACTION: Notice of Buy America waiver.

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SUMMARY: In response to the request of the Detroit Transportation 
Corporation (DTC) for a Buy America non-availability waiver for the 
procurement of two special trackwork turnout switch components 
(switch), the Federal Transit Administration (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 procurement by DTC for the switch.

DATES: This waiver is effective immediately.

FOR FURTHER INFORMATION CONTACT: Laura Ames, FTA Attorney-Advisor, at 
(202) 366-2743 or [email protected].

SUPPLEMENTARY INFORMATION: The purpose of this notice is to announce 
that FTA has granted a Buy America non-availability waiver for DTC for 
the procurement of the switch, under 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).
    DTC is the owner and operator of the Detroit People Mover, which is 
the largest municipal rail system in Michigan. It is a fully automated 
light rail system that operates twelve rail cars between thirteen 
passenger stations on an elevated single track in a 2.9 mile loop in 
Detroit's central business district. In March 2015, DTC solicited bids 
to procure special trackwork switch point for Turnout 3, which is 
located adjacent to the Maintenance Facility Building and provides 
access to the building. The special trackwork of concern was originally 
procured from Germany (by Krupp Stahl AG) and is of European standards, 
using AREMA 115RE rail throughout the turnout with special 60E1A1 
(formerly Zu-160) track point section. The project includes replacing 
stock rails that connect the switch point section to the original 
running rails, as well as rubber pads; both the rails and pads will be 
sourced domestically. The waiver only applies to the switch component 
of the project.
    DTC issued the first RFP in March 2015 to thirteen companies. DTC 
received no responses. It contacted all the companies, and reissued the 
RFP in May 2015 to six firms that expressed an interest in the project. 
From this RFP, DTC only received one proposal, from Delta Railroad 
Construction, Inc. (Delta). Delta, however, cannot comply with Buy 
America requirements because the only manufacturer of the switch is a 
German company. To change the manufacturer, Delta would need to re-
engineer the switch and modify the ``frog'' section and guideway 
elements; this design would need to be certified. Delta would then need 
to locate a domestic source to manufacture the re-engineered switch. 
Upon installation, the proprietary software designer of the automated 
control train system would need to certify the switch's performance in 
order to ensure it could be safely used with the existing guideway 
switch machines.
    On March 22, 2016, and in accordance with 49 U.S.C. 5323(j)(3)(A), 
FTA published a notice in the Federal Register announcing the DTC Buy 
America waiver request (81 FR 15406), seeking comment from all 
interested parties, including potential vendors and suppliers. The 
comment period closed on March 29, 2016, and no comments were received.
    Based on the representations of DTC and the lack of any comments, 
FTA is granting a non-availability waiver for the procurement of the 
switch described above, on the grounds that the manufactured product is 
not available in the U.S. This waiver is limited to a single 
procurement of the switch described above by DTC.

    Issued on April 14, 2016.
Dana Nifosi,
Deputy Chief Counsel.
[FR Doc. 2016-08988 Filed 4-18-16; 8:45 am]
 BILLING CODE 4910-57-P