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

Although closely related to the Buy American Act of 1933, FTA’s Buy America
requirements are separate and distinct. The Buy American act is applicable only to
purchases by Federal agencies and departments and not to grants made by Federal
agencies and departments. Purchases by state and local governments with Federal funds
are not subject to the Buy American Act. In 1964, Congress passed the Urban Mass
Transportation Act of 1964, 7 which authorized Federal assistance for up to 80 percent of
the cost of transit equipment through the Urban Mass Transit Administration (UMTA).
However, while Section 9(c) of the Urban Mass Transportation Act of 1964 originally
mirrored the intent of the Buy American Act and provided for use by contractors of
domestically manufactured articles, this provision was repealed by the Housing and
Urban Development Act of 1965. 8
Since the Surface Transportation Assistance Act of 1978, Federal Transit Law has
included a Buy America provision. Currently located at 49 U.S.C. 5323(j), with certain
exceptions, this provision prohibits FTA from obligating funds for a project unless the
steel, iron, and manufactured goods used in the project are produced in the United States.
FTA has published its Buy America Requirements in the Code of Federal Regulations at
49 CFR Part 661.
3.0 OBJECTIVES
3.1 The primary objective of the procedure is to provide clear, consistent instructions to
PMOCs engaged in overseeing Grantee’s audits of Buy America content. These
instructions reflect FTA’s goals of economy of effort in providing dependable and
accurate oversight of Sponsors, improving the quality of services and deliverables
provided by PMOCs to the FTA
3.2 Other objectives of the procedure include:
(1) To provide PMOCs with clear and practical directions and tools that can be used to
evaluate a Sponsor’s Buy America and related certifications, as they relate to bus and
rail vehicle procurements.
(2) To provide PMOCs with clear-cut and effective recommendations for how to
effectively evaluate data provided to Sponsors (Grantee’s) by manufacturers.
(3) To provide PMOCs with recommendations for how to proactively monitor Buy
America and related provisions before vehicles are delivered and placed into revenue
service.
(4) To provide PMOCs with recommendations for how and what to check in a Sponsor’s
files and records that will assure early detection of any deficiencies in procurement
regulations.
7 Urban Mass Transportation Act of 1964 (now known as the Federal Transit Act), P.L. 88-365, 78 Stat. 302 (1964)
(codified at 49 U.S.C. Chapter 53).
8 P.L. 89-117, § 1109 (1965).
OP26A Buy America Review
Revision 0, June 2008
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