The Federal Transit Administration (FTA) issued its final Buy America policy guidance advising transit agencies and transit vehicle manufacturers on implementing a phased increase from 60 percent to more than 70 percent in domestic content requirements for transit rolling stock procurements by the year 2020.
The increase is required by the Fixing America’s Surface Transportation (FAST) Act and is the first increase since 1991.
“Buy America provisions ensure that federally funded transportation projects are built with American-made products,” stated U.S. Transportation Secretary Anthony Foxx. “As a result, DOT investments support an entire supply chain of American companies and their employees.”
Under the final policy guidance, the Buy America domestic content requirements for transit rolling stock procurements for railcars and buses will be based on the scheduled delivery date of the first production vehicle. The domestic content minimum for fiscal years 2016 and 2017 is more than 60 percent; for fiscal years 2018 and 2019, more than 65 percent; and for fiscal year 2020 and beyond more than 70 percent.
The new Buy America requirements apply to third-party procurements by FTA grant recipients. Rolling stock is generally defined by the FTA as transit vehicles such as buses, vans, cars, railcars, locomotives, trolley cars and ferryboats. Rolling stock also includes train control, communication, traction power equipment and rolling stock prototypes.
FTA Acting Administrator Carolyn Flowers said, “The revised FTA Buy America policy addresses public transportation industry concerns and maintains the core goal of the program to preserve and create good-paying American jobs.”
FTA is also providing a limited public interest waiver for solicitations and contracts that were underway when the FAST Act was enacted in 2015.