[Federal Register Volume 82, Number 161 (Tuesday, August 22, 2017)]
[Notices]
[Pages 39947-39949]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-17606]


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DEPARTMENT OF TRANSPORTATION

Federal Transit Administration


Pilot Program for Nonprofit Cooperative Procurements

AGENCY: Federal Transit Administration, DOT.

ACTION: Notice; request for expressions of interest to participate.

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SUMMARY: The Federal Transit Administration (FTA) announces the 
establishment of the Pilot Program for Nonprofit Cooperative 
Procurements (Pilot Program) and solicits expressions of interest from 
eligible nonprofit entities to participate. The Pilot Program is aimed 
at increasing innovation, promoting efficiency, and demonstrating the 
effectiveness of cooperative procurement contracts for rolling stock 
and related equipment administered by eligible nonprofit entities.

DATES: Expressions of interest to become one of the selected nonprofit 
entities in the Pilot Program for Nonprofit Cooperative Procurements 
must be received by October 23, 2017.

ADDRESSES: Expressions of interest may be submitted via U.S. mail, 
electronic mail, or fax. Mail submissions must be addressed to the 
Office of Acquisition Management, Federal Transit Administration, 1200 
New Jersey Avenue SE., Room E42-332, Washington, DC 20590. Email 
submissions must be sent to [email protected]. Facsimile 
submissions must be submitted to the attention of Nonprofit Pilot 
Program at 817-978-0575. If there is an insufficient number of eligible 
nonprofit entities that meet the requirements of the Pilot Program, FTA 
may solicit additional interest in the future.

FOR FURTHER INFORMATION CONTACT: For program matters, James Harper, FTA 
Office of Acquisition Management, telephone (202) 366-1127 or email 
[email protected]. For legal matters, Eldridge Onco, FTA Office of 
Chief Counsel, telephone (817) 978-0557 or email [email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background
II. Pilot Program Description
III. Eligibility Information
IV. Expression of Interest Submission Process
V. Application Review
VI. Pilot Program Administration

I. Background

    Section 3019 of the Fixing America's Surface Transportation (FAST) 
Act, Public Law 114-94, permits FTA grantees to purchase rolling stock 
and related equipment from cooperative procurement contracts entered 
into by either a State government or an eligible nonprofit entity and 1 
or more vendors. Section 3019 was designed to address the high 
purchasing costs attributable to the relatively small size of the 
procurements for rolling stock and related equipment, particularly for 
small and rural public transportation providers. Many States currently 
have authority to enter into cooperative purchasing contracts, also 
known as ``state schedules.'' However, such authority was not 
previously extended to nonprofit entities.
    The statute creates a pilot program to demonstrate the 
effectiveness of cooperative procurement contracts administered by 
nonprofit entities. These contracts are intended to be separate from 
State cooperative purchasing contracts and provide another opportunity 
for public transportation systems of all sizes to enhance their 
purchasing options.

II. Pilot Program Description

    Section 3019(b)(3) establishes a Pilot Program to demonstrate the 
effectiveness of cooperative procurement contracts administered by 
eligible nonprofit entities. The objective of this innovative 
procurement approach is to enhance the purchasing options for all 
public transportation systems. FTA plans to assess the benefits and 
effectiveness of the Pilot Program to assist grantees in developing 
more efficient and innovative approaches to acquiring rolling stock and 
related equipment.
    A cooperative procurement contract in the Pilot Program means a 
contract between an eligible nonprofit entity and 1 or more vendors 
under which the vendors agree to provide an option to purchase rolling 
stock and related equipment to multiple grantee participants. Where 
permitted by State

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law, a grantee may participate in a cooperative procurement contract 
under the Pilot Program without regard to whether the grantee is 
located in the same State as the lead nonprofit entity. Participation 
by FTA grantees in a nonprofit cooperative procurement under the Pilot 
Program is voluntary.
    Nonprofit entities selected for the Pilot Program may enter into a 
cooperative procurement contract for an initial term of not more than 2 
years. The contract may include not more than 3 optional extensions for 
terms of not more than 1 year each. Thus, the contract may be in effect 
for a total period of not more than 5 years, including each extension.
    A lead nonprofit entity selected for the Pilot Program shall 
develop the terms of the contract and the contract must be solicited 
and awarded in accordance with all applicable FTA and Federal 
standards, requirements, and policies. The applicable FTA and Federal 
procurement standards, requirements, and policies, including FTA's Buy 
America requirements, are set forth in 49 U.S.C. chapter 53, FTA's 
implementing regulations, FTA's Master Agreement, 2 CFR parts 200 and 
1201, and FTA Circular 4220.1F.

III. Eligibility Information

    Section 3019 specifies that FTA must select no fewer than 3 
eligible nonprofit entities for the Pilot Program. Per the FAST Act, an 
eligible nonprofit entity for the Pilot Program may be either a 
nonprofit cooperative purchasing organization that is not an FTA 
grantee or subgrantee, or a consortium of eligible nonprofit 
cooperative purchasing organizations. A local government or a tribal 
government is not an eligible nonprofit entity under the Pilot Program.
    Successful entities are expected to develop and issue a 
solicitation for a cooperative procurement contract within 60 days of 
their selection into the Pilot Program. The solicitation of a contract 
must be conducted through a competitive process that will comply with 
FTA's full and open competition standard and Federal and FTA 
procurement requirements and policies. To promote the fullest 
opportunity for grantees to participate in the Pilot Program, FTA 
anticipates that cooperative procurement contracts will be open and 
available to all FTA grantees. To address special circumstances, 
however, FTA may consider a cooperative procurement contract in the 
Pilot Program which may be limited only to recipients in one or more of 
FTA's grant programs.
    A lead nonprofit entity in the Pilot Program may charge 
participants in the contract for the cost of administering, planning, 
and providing technical assistance for the contract in an amount that 
is not more than 1 percent of the total value of the participant's 
order placed on the contract. The 1 percent charge may either be 
incorporated into the price of the rolling stock and related equipment 
offered under the cooperative procurement program or directly charge 
the grantee participants for the costs, but not both. If the nonprofit 
directly charges the grantee participants for the costs, it cannot 
charge any individual grantee more than 1 percent of the total value of 
the grantee's order.

IV. Expression of Interest Submission Process

    Interested nonprofit entities for the Pilot Program must submit the 
required information by U.S. mail, email or facsimile by October 23, 
2017, as specified in the DATES section of this notice, above. FTA 
reserves the right to request additional clarifying information from 
any and all applicants before making a selection to participate in the 
Pilot Program. Nonprofit entities wishing to participate in the Pilot 
Program must submit an expression of interest to FTA no longer than 10 
pages in length including any supporting documentation.
    Interested nonprofit entities must provide the following 
information to FTA in narrative format or as otherwise instructed:
    a. A description of the procurement experience held by the 
personnel in the applicant's organization, including sufficient 
information to demonstrate the ability to successfully carry out and 
administer a cooperative procurement contract or contracts;
    b. A description of the familiarity of the applicant's personnel 
with Federal and FTA procurement standards, requirements, and policies;
    c. A description to show how the applicant's program will be 
administered. This description should include, but not be limited to, 
the process by which vendors will be selected for the cooperative 
procurement contract, the process by which grantee participants will be 
registered in the program and the process for grantee participants to 
place orders on a cooperative procurement contract.
    d. The articles of incorporation of the applicant to demonstrate 
that the purpose of the nonprofit organization is consistent with the 
purpose of the Pilot Program;
    e. Evidence that the applicant possesses adequate financial 
capacity to successfully administer a cooperative procurement contract 
or contracts;
    f. Documentation that the applicant is a nonprofit entity in good 
standing in the State of incorporation; and,
    g. Certification that the applicant is not indebted to a Federal or 
State taxing authority.

V. Application Review

    FTA will evaluate the submissions to determine which applicants 
demonstrate they have the capability to effectively enter into and 
administer a cooperative procurement contract. FTA will select no fewer 
than three geographically diverse applicants from the submitted 
expressions of interest to be part of the Pilot Program, except that if 
there are less than three applicants able to meet the requirements of 
the Pilot Program, FTA may solicit additional interest in the future. 
FTA will evaluate the experience, legal, technical, and financial 
capacity of interested nonprofit entities to implement the Pilot 
Program successfully.

VI. Pilot Program Administration

1. Notice

    After an announcement by the FTA Administrator or designee of the 
final selection(s) posted on the FTA Web site, FTA may publish final 
selections for the Pilot Program in the Federal Register.
    All information submitted as part of or in support of the Pilot 
Program application shall be publicly available data or data that can 
be made public and methodologies that are accepted by industry practice 
and standards, to the extent possible. If the submission includes 
information the applicant considers to be a trade secret or 
confidential commercial or financial information, the applicant should 
do the following: (1) Note on the front cover that the submission 
``Contains Confidential Business Information (CBI);'' (2) mark each 
affected page ``CBI;'' and (3) highlight or otherwise denote the CBI 
portions. FTA protects such information from disclosure to the extent 
allowed under applicable law. If FTA receives a Freedom of Information 
Act (FOIA) request for the information, FTA will follow the procedures 
described in the U.S. DOT FOIA regulations at 49 CFR 7.17. Only 
information that is ultimately determined to be confidential under that 
procedure will be exempt from disclosure under FOIA. Should FTA receive 
an order from a court of competent jurisdiction ordering the

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release of the information, FTA will provide the applicant timely 
notice of such order to allow the applicant the opportunity to 
challenge such an order. FTA will not challenge a court order on behalf 
of an applicant.

2. Pilot Program Administration and Reporting Requirements

    The Pilot Program is not funded with Federal funds; selected 
nonprofit entities may charge the grantee participants in the 
cooperative procurement contract for the cost of administering, 
planning, and providing technical assistance for the contract in an 
amount that is not more than 1 percent of the contract price. The 
selected nonprofit entity may incorporate the cost into the price of 
the contract or directly charge the grantee participants for the cost, 
but not both.
    To achieve a comprehensive understanding of the utility and 
effectiveness of the Pilot Program, FTA, or its designated independent 
evaluator, will require access to project data. Selected nonprofit 
entities should be prepared to collect and maintain data related to 
participating vendors, participating grantees, and the quantity and 
price of rolling stock and related equipment procured by grantees 
through the cooperative procurement.

3. Expiration of Pilot Program

    After selection of eligible nonprofit entities for the Pilot 
Program, the Pilot Program will expire six years from the publication 
of this notice in the Federal Register or when the contract with the 
longest term, including option periods, awarded by a nonprofit entity 
in the Pilot Program expires, whichever date is earlier.

Matthew J. Welbes,
Executive Director.
[FR Doc. 2017-17606 Filed 8-21-17; 8:45 am]
 BILLING CODE P