Third Party Procurement
Frequently Asked Questions
Q = Question; A = Answer
Q. Clean Air Act Requirements: Are there “Clean Air” standards that apply to the procurement of vehicles under FTA Guidelines?
A. The Clean Air requirements apply to all contracts exceeding $100,000, including indefinite quantities where the amount is expected to exceed $100,000 in any year. The “clean air” requirements for grantee contracts are discussed in the Best Practices Procurement Manual (BPPM), Appendix A1, Clause No. 14 - Clean Air. (Revised: September, 2010)
Q. Drug and Alcohol Testing: What requirements are there for drug testing for vendors out of the country when purchasing rolling stock with Federal Funds?
A. Guidance and contract language concerning the Drug and Alcohol Testing regulations may be found in the BPPM, Appendix A.1, Clause No. 31. The Drug and Alcohol provisions apply to Operational Service Contracts. These provisions do not apply to vendors from whom a grantee is purchasing rolling stock. (Revised: September, 2010)
Q. Fly America: Where can one find language for the Fly America Clause?
A. Guidance and contract language concerning the Fly America clause can be found in the BPPM, Appendix A.1, Clause No. 1. (Revised: September, 2010)
Q. Is the Certificate of Compliance, mentioned in the Fly America Clause, similar to the Buy America certification which one has to submit with the proposals or is it a certification which needs to be submitted only when and if air transportation is used?
A. The Best Practices Procurement Manual (BPPM), Section 8.1.5 - Fly America, discusses the required clause and Appendix A.1, Clause No. 1 contains suggested clause language. The BPPM states, "If there is no possibility of international shipments or travel under the contract, these provisions are not required." We conclude that a certification from the contractor is only required when and if international air transportation will be involved in the performance of the contract. (Revised: September, 2010)
Q. Time and Material Contracts: In a time and material contract can one stipulate the wage rates for various positions as being maximum wage rates that are adjustable downward if lower paid individuals are actually assigned to do the work?
A. You can structure an advance agreement with the contractor for all the various labor categories stipulating a maximum billing rate for each category, which is negotiable downward only, based on the actual salary of the specific individual that is eventually assigned to the job. For information purposes you may want to note in the advance agreement the labor rate that was assumed to be valid in the billing rate you originally established and then you will have a baseline from which to make adjustments in the future. (Revised: September, 2010)