FTA Oversight Procedures - Federal Transit Administration - U.S. ...

US DOT Federal Transit Administration
TPM-20 Office of Engineering
Project Management Oversight
Oversight Procedure 26A- Buy America Review
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1.0 PURPOSE
The purpose of this Oversight Procedure is to guide FTA staff and its Project Management
Oversight Contractor (PMOC) as they monitor compliance with FTA’s Buy America
requirements.
2.0 BACKGROUND
2.1 Overview
A number of public transit agencies fail to appreciate the nuance and complexity of
FTA’s Buy America Requirements. This section provides a concise overview of these
requirements and the exceptions thereto.
According to Federal law, FTA may not obligate funds for a project unless the steel, iron,
and manufactured goods used in the project are produced in the United States. 1 For steel
and iron end products to be considered produced in the United States, all manufacturing
processes must take place in the United States, except metallurgical processes involving
refinement of steel additives. 2 For manufactured end products to be considered produced
in the United States, all of the manufacturing processes for the product must take place in
the United States, and all of the components of the product must be 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). 3 For buses and other rolling stock
(including train control, communication, and traction power equipment) to be considered
produced in the United States, the cost of components produced in the United States must
be more than 60 percent of the cost of all components and final assembly must take place
in the United States.
FTA’s Buy America requirements do not apply to purchases of less than $100,000, to
microprocessors, computers, microcomputers, software, or other such devices which are
used solely for the purpose of processing or storing data; or to articles, materials, and
supplies excepted by the Buy American Act of 1933 through its implementing regulations
at 48 CFR 25.108, as amended from time to time.
FTA may waive its Buy America requirements if the FTA Administrator finds that their
application would be inconsistent with the public interest, that the materials for which a
1 49 U.S.C. Section 5323(j)(2)(C)
2 49 CFR 661.5(b).
3 49 CFR 661.5(c).
OP26A Buy America Review
Revision 0, June 2008
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