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H 4heading 1heading 1&    XXXW\  `*Times New RomanTTW        W\  `*Times New RomanTTW'    H 4heading 2heading 2&    #DL!#XXXW\  `*Times New RomanTTW        W\  `*Times New RomanTTW>4X` hp x (#>'    H 4heading 3heading 3&    L!XXXW\  `*Times New RomanTTW        W\  `*Times New RomanTTW>4X` hp x (#>'    h:Default ParaDefault Paragraph FontXXXW\  `*Times New RomanTTW        W\  `*Times New RomanTTWT} :Document MapDocument Map  C %2A`ArialTTC        W\  `*Times New RomanTTW  %2A`ArialTTH 4Body TextBody Text  XXXW\  `*Times New RomanTTW        W\  `*Times New RomanTTW  P 8Body Text 2Body Text 2  5+ 4 <DL!5XXXW\  `*Times New RomanTTW        W\  `*Times New RomanTTW>4X` hp x (#>  ` :Body Text InBody Text Indent 2  XXXW\  `*Times New RomanTTW        W\  `*Times New RomanTTW  J $1Body Text Indent 3  5+ 4 <DL!5XXXW\  `*Times New RomanTTW        W\  `*Times New RomanTTW>4X` hp x (#>  <5T .headerheader   !        >4X` hp x (#>  <5T .footerfooter   !        >4X` hp x (#>  P8page numberpage numberXXXW\  `*Times New RomanTTW        W\  `*Times New RomanTTW, &H3H3&    W\  `*Times New RomanTTW        W\  `*Times New RomanTTW'    < $2Body Text 2  XXXW\  `*Times New RomanTTW        W\  `*Times New RomanTTW  _Hlt467489332$35;AGMSY_31.1.1.1.1.1.1.1.\  `*Times New RomanTT3|x\  `*Times New RomanTTC\  P6QP\  `*Times New RomanTTXXP\  P6QXP%2A`ArialTTomanTTJ2PQP\  `*Times New RomanTT^\  P6QP\  `*Times New RomanTT<\  P6QP\  `*Times New RomanTTy\  P6QP\  `*Times New RomanTT&&J\  P6Q&P\  `*Times New RomanTT,,)\  P6Q,P(JA$;;;  i)3#37=CIQYag1.a.i.(1)(a)(i)1)a)q0~U 1  y'777   _A+!)bxdEbxABestPracticesProcurementManual"AppendixA.2DearColleagueLettersf!f!f!(#Page  1  (f3y$ A!777   #$ WPCeYzYz"51390! 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H!  ThisinformationwillalsobemadeavailableontheFTApublicwebsite,andIencourageyouto (#" shareitwithyourprocurementstaff.Ialsowanttothankthemanytransitagenciesthathave $# offeredcommentsonhowtoimproveprocurementpractices,andparticularlythosewho %$ respondedtoourrecentsurvey. %%  POLICYCHANGESANDCLARIFICATIONS  '!' A.FTAC4220.1D,Paragraph7(m)ContractTermLimitation )x#) ThefiveyearcontracttermlimitationforFTAfundedcontracts,including"revenuecontracts," +X%+ awardedbygrantrecipientsisherebyrescinded.RevenuecontractsarethosethatutilizeFTA ,H&, fundedrealestate,equipmentandfacilitiestogeneraterevenue.Withthisrescission,grant x-8'- recipientsnolongerneedtoobtainFTAapprovalforcontracttermsexceedingfiveyears.Please h.((. _note,however,thatcontractsforrollingstockandreplacementpartsarestilllimitedtonotmore @ thanfiveyears,asrequiredbystatute.(49UnitedStatesCodeSection5326(b)) 0 Granteesareexpectedtocontinuetobejudiciousinestablishingandextendingtheircontract   terms.Goodprocurementpracticedictatesthatgranteesenterintocontracttermsnolongerthan   minimallynecessarytoaccomplishthepurposeofthecontract.   B.ECommerce   ECommercehasbeenandcontinuestobeanallowablemeanstoconduct_procurements_.Ifa p  granteechoosestoutilizeECommerce,writtenproceduresmustbedevelopedandall `  requirementsforfullandopencompetitionmustbemet. P  C.FTAC4220.1D,Paragraph12.a.AdvancePayments p0  TherecontinuestobesomeconfusionaboutFTApolicywithrespecttoadvancepayments, P stemmingfromtheinterpretationofAmericanPublicTransportationAssociationsStandardBus @ ProcurementGuidelinesandsubsequentFTADearColleagueLetters.Theclarificationof 0 requirementsregardingadvancepaymentsprovidedintheDearColleagueLetterofJune15,   2001,remainsaccurate,butisfurtherclarifiedasfollows:  FTAC4220.1D,Paragraph12,"PaymentProvisioninThirdPartyContracts,"states:"FTAdoes  notauthorizeandwillnotparticipateinfundingpaymentstoacontractorpriortotheincurrence  ofcostsbythecontractorunlesspriorwrittenconcurrenceisobtainedfromFTA."Thispolicy  remainsunchanged:FTAfundsmaynotbeusedtomakeadvancepaymentsunlesspriorwritten  concurrenceisobtainedfromFTA.Thereisnoprohibitiononagrantrecipientsuseoflocal p fundsforadvancepayments.However,advancepaymentsmadewithlocalfundsbeforeagrant ` hasbeenawarded,orbeforetheissuanceofaletterofnoprejudiceorotherpreawardauthority, P areineligibleforreimbursement.  @ D.FTAC4220.1D,Paragraph4!Applicability(RegardingOperatingAssistanceand `"  PreventiveMaintenance) P# FTAgrantrecipientswhoutilizeFTAformulafundsforoperatingassistancearerequiredto 0%! followtherequirementsoftheFTAC4220.1Dforalloperatingcontracts.SinceFTAformula  &" fundspayapercentageofthenetoperatingdeficit,suchcontractscannotbesegregatedandFTA ' # C4220.1Dmustbeapplied. (!$ CongestionMitigationandAirQuality(_CMAQ_)andJobAccess/ReverseCommute(_JARC_) )#& projectfundsmaybeusedforoperations.GranteesmustfollowtheCircularrequirementsforany *$' specificcontractsthatutilize_CMAQ_Ԁor_JARC_Ԁfunds.However,theuseof_CMAQ_Ԁand_JARC_ +%( fundsforoperationsdoesnottriggertheapplicabilityoftheCirculartoallotheroperating ,p&) contracts. -`'* ЇGranteeswhoutilizeformulacapitalfundsforpreventivemaintenancecontractsaresubjectto @ thefollowingrequirementsundertheCircular.IftheFTAformulafundsareallocatedtodiscrete 0 contractsidentifiedinthegrantapplicationforpreventivemaintenance,thenFTAC4220.1D   willapplyonlytothosespecificcontracts.IftheFTAformulafundsarenotallocatedtodiscrete   contractsinthegrantapplication,thenallpreventivemaintenancecontractsaresubjecttothe   requirementsoftheCircular.    BESTPRACTICESINITIATIVES    A.BestPracticesContest p  WhiletheBestPracticesProcurementManual(_BPPM_)containssomeexcellentexamplesof P  grantee"bestpractices,"weareeagertoencouragethesharingofmanymoreofthesepractical @  ideasamonggrantees.EveryonewhosubmitsabestpracticethatisincorporatedintotheManual p0  willbepubliclyrecognizedatAmericanPublicTransitAssociationsAnnualMeeting.In `  addition,oneindividual/agencywillberecognizedattheannualAwardsCeremony,and_APTA_ P willwaivetheconferenceregistrationfeeforthepersonwhosubmitsthewinning"best @ practice." 0 B.ExperimentalProcurementLaboratory  FTAalsoiscreatinganexperimental"procurementlaboratory."Thegoalofthisinitiativeisto  allowandencouragegranteestoimproveorstreamlinetheircontractingprocessesthrough  innovativeapproaches.Granteesareinvitedtoproposeprocurementinnovationsfor  considerationandapprovalbyFTA.Iftheexperimentissuccessful,thepracticewillbe  publishedintheBestPracticesProcurementManual. p MoreinformationabouttheBestPracticesContestandtheExperimentalProcurement P LaboratoryinitiativewillbepublishedsoonontheFTAwebsite,the_BPPM_Ԁwebsite,andthe  @ _APTA_Ԁwebsite,andwillbemadeavailableatFTAconferencesandNationalTransitInstitute p!0 procurementcourses. `"  Iappreciateyourcontinuedsupport,andlookforwardtoworkingwithyoutofurtherimprove @$  procurementpracticesinthetransportationindustry.#XPXXIXPE3#Ԁ# XXPd3#XPX RegionalOffice. 0%! Ѐ3L!X30    Sincerely,(!$(#(# JK\LHzx  `q@X@E)qq):q T(#T(#(#(#3L!X30 @T  *$'  (#(#T(#T(#0  JenniferL._Dorn_# XXPHR#,p&)(#(# XPX    -`'* 3.June15,2001# XXPT#XPX :FeedbackontheEffectivenessofFTAsThirdPartyContracting @ RequirementsandProcurementAssistanceProgram 0 # XXPU# s.C?/+b|0#cp `Wv@E cpcp sU.S.Department       x      OfTransportation      400SeventhSt._S.W._     7 FederalTransit # 7WW#      Washington,D.C.205907   7 t4  #7  X# Administration# 7W#7 Ԁ # 7X#DeputyAdministrator <  7         x         x C0801   Ѐ# 7&Y#XPX ԀJune15,2001 T  # XXP6Z#7   7# 1  Z# XODX 1#XPXX XODZ#DearColleague: L  IXPXXXP#I XIXP[#IXPX IInMay1999,theFederalTransitAdministration(FTA)issuedasurveyinvitingfeedbackonthe , effectivenessofFTAsThirdPartyContractingRequirementsandProcurementAssistance  Program.Basedoncommentsandsuggestionsinthesurveyresponses,FTAimplementedcertain   changestothesetwoareasofourprogram.Thesechangesincludeofferinganincreasednumber  andvarietyofprocurementcourses;addingtoandrefiningthe"BestPracticesProcurement  Manual;"andpostingprocurementquestionsandanswersontheInternet.  DuringaworkshopheldonMay9,200l,attheAmericanPublicTransportationAssociation | (_APTA_)Busand_Paratransit_ԀConferenceinCalgary,Canada,FTAprovidedanupdateonthe l actionsithasundertaken.Theparticipantsfeltitwasnecessarytoworkcollaborativelyto \ addressthe5yeartermlimitationissueataworkshopdedicatedsolelytothistopicattheFall L _APTA_ԀBusEquipmentandMaintenance/ProcurementandMaterialsManagementConferencein |< Ft.Worth,Texas.BothFTAand_APTA_Ԁagreedtothisrecommendation. l , Itwasalsoagreedthatintheinterim,FTAwouldexemptcertainclassesofcontractsfromthe L" ! requirementtoobtainpriorFTAapprovalforperiodsofperformanceinexcessofa5yearterm, <#" andthatFTAwouldclarifyotherareasofCircular4220.1D,"FTAThirdPartyContracting ,$# Requirements,"thatthesurveyrevealedwereinneedoffurtherclarification. %$ A.FTACircular4220.1D,Paragraph7(m)!ContractPeriodofPerformanceLimitation & & Paragraph7(m)states,"granteesshallnotenterintoeitherserviceorsupplycontractswitha ("( periodofperformanceexceedingfiveyearsinclusiveofoptionswithoutpriorwrittenFTA )#) approval.Amaximumoffiveyearsrequirementsmaybeacquiredunderasinglecontract *|$* withoutpriorFTAapproval(includingrollingstock),eventhoughdeliverymayoccurbeyond +l%+ fiveyearsafterthedateofcontractaward.FTAapprovalisrequiredforcontractextensionsor ,\&, renewalsbeyondafiveyearterm.Thislimitationdoesnotapplytoconstructioncontractsorto -L'- leasesofrealpropertyforthelifeofatransitassettobeconstructedonsuchproperty(which |.<(. periodwillextendbeyondfiveyearsinordertofulfillthestatutoryrequirementsthatgrantees @ havesatisfactorycontinuingcontrol.)" 0 <" XX,T$&X<Further,ablanketwaiverisgrantedtoexemptthefollowingclassofcontractsfromthe   requirementtoobtainFTApriorapprovalforacontractterminexcessoffiveyears:   @X XX,T$Xeg@$ ,X$0  0(#(#Nonconstructionrelatedcontractssuchasproprietarysoftwaremaintenance,consulting   andotherprofessionalservicescontracts(exceptcontractsforgeneralengineering   services)awardedforadiscrete,identifiableitem,e.g.,aparticularpieceoflitigation,a   discretetortclaim,andauditofaparticulartransactionorfiscalyear.p (#(# Thisblanketwaiver,however,doesnotcoverthefollowingclass: P  0  0(#(#Allcontractsforgeneralengineeringconsultantservicesarenonexempt.Taskordertype p0  arrangementsforengineering,architectural,legal,accounting,nonproprietarysoftware `  maintenanceorotherprofessionalservicesnottieddirectlytoarelatedconstruction P contractoradiscreteidentifiableitem,requirepriorFTAapprovalforperiodsof @ performanceinexcessoffiveyears.0(#(# B.RevenueContracts!FiveYearTermLimitation  ItisFTAspolicythatallpersonsbeaffordedanequalopportunitytobenefitfrombusiness  opportunitiesarisingfromuseofFTAfundedassets.ItisalsoFTAspolicytoencourageFTA  recipientstomaximizenon_farebox_Ԁrevenuesthroughcontractualandotherappropriate  arrangementsinvolvingnoninterferingusesofsuchFTAfundedassets.Theestablishmentofa  fiveyearcontracttermlimitationisonemeansbywhichFTAseekstobalancethesepotentially p conflictingpolicies.Areviewofrecentrequestsforexemptionfromthe5yearlimitationinthe ` areaof"revenuecontracts,"however,suggeststhatpriorFTAapprovalisnotrequiredunder P certainconditions.Accordingly,priorFTAapprovalofthefollowingcategoriesof"revenue  @ contracts"inexcessoffiveyearsisnolongerrequired: p!0 0  0(#(#1).Nonexclusiverevenuecontracts:Revenuecontractsinvolvingbusinessopportunities, P# thatduetotheirnatureandthecapacityofthetransitsystem,arenotlimitedbyphysical @$  constraintsorgranteepolicytoanyspecificnumberofentrantsdonotrequirepriorFTA 0%! approval.Forexample,ifagranteeallowsanyvendortoinstallfiberopticcablewithin  &" thegranteesrightofwayonreasonabletermsandconditions,untilsuchtimeasthe ' # granteedecidestolimitthenumberofentrantsduetocapacityofthesystemorother (!$ factors,thereisnoneedforpriorFTAreview.Anotherexamplemightbeallowing ("% multiplevendorstoputtransmissiontowersorantennasongranteeproperty.)#&(#(# 0  0(#(#2).Exclusiverevenuecontractsundercertainconditions:Revenuecontractsinvolving +%( businessopportunitiesduetotheirnatureandthecapacityofthetransitsystemwhichare ,p&) limitedtoaspecificnumberofentrants,whetherduetophysicalconstraintsorgrantee -`'* policy,donotrequirepriorFTAapprovalwherethefollowingconditionsexistandare @ documentedinthegranteesfiles:#I XIXP[#0(#(# 0  0(#(#04(#(#0` 4(#4(#IXPX Ia).Contractsareawardedthroughacompetitiveprocess;` (#` (# 0  0(#(#04(#(#0` 4(#4(#b).Economicanalysisshowsthatacontracttermlongerthanfiveyearsis   necessarytoallowthecontractortorecoveranyrequiredcapitalinvestmentanda  t reasonablereturnoninvestmenttakingintoaccountbothtax(depreciation)and  d economic/businessconsiderations.#I XIXPpw# T` (#` (# 0  0(#(#IXPX I3).TransitOriented/JointDevelopmentRevenueContracts.TransitOriented 8  DevelopmentsandJointDevelopmentprojectsundertakeninconformancewithFTA (  jointdevelopmentpoliciesmaysubsequentlygiverisetorevenuecontracts.PriorFTA   concurrenceinacontractterminexcessoffiveyearsisgovernedbythesamecriteriaas   describedinparagraphs1)and2)above.NotethatFTAroutineoversightand   concurrenceintransitorienteddevelopmentandjointdevelopmentprojectsremains   unchangedbythisexemption. (#(# C.FTACircular4220.1D,Paragraph12PaymentProvisionsinThirdPartyContracts x Thesurveyresultsindicatedthatthereissomeconfusionconcerningtheuseofadvance X payments.Withregardtoadvancepayments,theCircularstates,"FTAdoesnotauthorizeand H willnotparticipateinfundingpaymentstoacontractorpriortotheincurrenceofcostsbythe x8 contractorunlesspriorwrittenconcurrenceisobtainedfromFTA."Thispolicyisunchanged.To h( clarify,however,thereisnoprohibitiononaGranteesusinglocalfundsforadvancepayments X whereagranthasbeenawardedortheprojectiscoveredbyaletterofnoprejudice,orotherpre H awardauthority.Pleasenotethatadvancepaymentsmadebeforeagranthasbeenawardedor 8 beforetheprojectiscoveredbyaletterofnoprejudiceorotherpreawardauthority,willbe ( ineligibleforreimbursement.  D.PreventiveMaintenance   PreventivemaintenanceisaneligibleexpenseunderFTAscapitalandoperatingassistance " programsdependinguponthesizeofthepopulationservedbythegrantee.Granteeshaveasked #  howtherequirementsofFTACircular4220.1Dapplywhenpreventivemaintenanceactivities $x! arecontractedtothirdpartiesunderacapitalassistanceprogramratherthananoperating %h" assistanceprogram.Thequestionarisesbecauseofthedifferenttreatmentofcapitaland &X # operatingcontractsbytheCircularinaccordancewithapplicablelaw.Therearetwooptions. 'H!$ Underthecapitalassistanceprogram,thegranteemayapplytheCircularonlytothespecific x(8"% preventivemaintenancecontractsidentifiedinthegrantapplication,butnotothers.Alternatively, h)(#& thegranteemayelecttoreceivepreventivemaintenancefundsasacertainpercentageoftotal X*$' maintenancecosts.Underthisalternative,therequirementsoftheCircularapplyacrosstheboard H+%( toallofthegranteesmaintenancecontracts.Pleasenotethatunderthelatteroption,grantees 8,%) maynotselectivelyexcludecertainmaintenancecontractsfromthetotaloperationsamounton (-&* whichtheybasetheirpercentagecalculation. .'+ ЇAllofthechangesreflectedinthis"DearColleague"letterareeffectiveimmediately. @ FTAdoesappreciateyourfeedback.Pleasecontinuetogiveusyoursuggestionsforimproving   ourprocurementprogram.#I XIXPy##  Ii[#XPX    (X,h(Ӏ3L!X30    Sincerely, (#(# 0  0(#(#Signed (#(# 0  0(#(#HiramJ.Walker (#(# 3L!X30  ActingDeputyAdministratorp (#(# ̀  P  # XXP#XPX  4.December21,1998:Joint_Procurements_,Y2KComplianceRequirements @  XXP s."?/+b|09Qcp `Wv@EcpcpFsU.S.Department       x   h ( OfTransportation      400SeventhSt._S.W._    7 FederalTransit # 7+#      Washington,D.C.205907   7    7   Administration  7TheAdministrator  X  7         x         x C9839 (  XPX7ԀDecember21,1998#7XXP^#          x XPX7 h  7XXP  7       x   XODX  XPXX XODDearColleague: 8  Recently,therehavebeenseveralrequestsformoreinsightandguidanceontheFederalTransit  Administration's(FTA)policyandphilosophyonvariousaspectsofprocurement,and  specificallyontheuseofdifferentstrategiesandapproachesinfulfillingYear2000(Y2K)  compliancerequirements.TheminimumrequirementsapplicabletoFTAfunded_procurements_  aresetforthinFTACircular4220.1D,"ThirdPartyContractingGuidelines."TheCircularhas  beendesignedtoprovidegrantrecipientsmaximumflexibilitytooperatewithintheframework  oftheminimumrequirements. x    XPXXXPXPXXXP        Inkeepingwiththediscretionarypowersandauthoritywhicharevestedingrantrecipients X throughtheCircular,theFTAfullysupportstheuseofcreativeandinnovativeprocurement H techniquesandstrategies.Grantrecipientsmayutilizethesetoolstoprocuretheiractualneeds x8 andforthepurposeofleveragingbargainingpower,achievingeconomiesofscaleand/or h( fulfillingY2Kcompliancerequirements.Further,recipientsareaffordedthefreedomto X  collaborateandtopartnerwitheachotherinordertofacilitateandtomaximizetheuseof H!  innovativeprocurementtechniques.Thisincludes,butisnotlimitedto,conductingjoint 8"! _procurements_;proceedingwithawardsthatresultfromproper"piggybacking"transactions; (#" and/ordevelopingstandardspecificationsforconsolidatedpurchasestoaddresscommonneeds $# forequipmentandservicessuchasescalators,Y2Ktechnology,hardwareandsoftware.FTA %$ recentlyclarifieditspositionon"piggybacking"and"tagone"ina"DearColleague"letterdated %% October1,1998,acopyofwhichisattached.Presently,thatpolicyappliestorollingstock & & _procurements_Ԁonly;however,considerationisbeinggiventoexpandingthepolicytocoverother '!' _procurements_Ԁinthenearfuture. ("(  2    XPXXXPXPXXXP    Joint_procurements_Ԁmaybeconductedonaregional,statewideornationalbasispursuanttothe *h$* needsandapplicableregulatoryandstatutoryrequirementsofthepartiestotheprocurement.The +X%+ FTAhasspecificallyencouragedtheuseofjoint_procurements_Ԁforrollingstock.Guidanceon ,H&, innovativeprocurementtechniques,suchasjoint_procurements_,willbecoveredinthenextissue x-8'- ofthe"BestPracticesProcurementManual"(_BPPM_).Currently,the_BPPM_Ԁcontainsanexample h.((. ofastatewideacquisitionofbuseswhichwasprovidedbytheNewYorkDepartmentof @ Transportationtofacilitateandtoassistothersinuseofthejointprocurementconcept. 0 Regardlessoftheprocurementmethodologyorstrategychosen,thecontrollingrequirementis   thatFTAfunded_procurements_ԀmustconformtotherequirementsofFTACircular4220.ID.The   guidingprincipleoftheCircularisthat_procurements_Ԁmustbeconductedinamannerthat   providesforfullandopencompetition.However,thisdoesnotprecludetheawardofcontracts   onanoncompetitivebasiswhensupportedbysoundreasonsdocumentedintherecipients'files.   Forexample,soundreasonsmayexisttoeitherconductalimitedcompetitionamongafew   knownsourcesortomakeawardtoasinglesourceonanoncompetitivebasisinordertofulfill p  theY2Kcompliancerequirements.Specifically,theawardofanoncompetitivecontractto `  addressaY2Kproblemwouldbepermissibleifcircumstancesexistedwheretimeisofthe P  essencetoavoidcreatingasafetyhazardintheoperationofyourtransitsystem. @  Shouldyouhavequestionsordesireassistanceinaddressingprocurementissuesrelatingto `  fulfillingY2Kcompliancerequirements,pleasecontactyourrespectiveFTARegionalOffice. P Ѐ3L!X30    Sincerely, (#(# m.49)%`|0]6r `QEvrr+km (#(#  3L!X30  (#   (#(#0  GordonJ._Linton_ (#(# E+ 4 <DL!XE 5.October1,1998:RevenueContracts,Piggybacking,Tagons @  XXP s.%?/+b|0Dcp `Wv@Ecpcp9sU.S.Department `     h      p   400SeventhSt._S.W._ h ( OfTransportation `     h      p   Washington,D.C.205907   7   7   FederalTransit `     7TheAdministrator    7  Administration `     h      p     C9825  X     `    October1,1998 (    7 XODX  XPXX XODDearColleague: x     XPXXXPXPXXXP        IampleasedtoannouncetheprocurementinitiativesunderwayintheFederalTransit X  Administration(FTA)andtoproviderecentFTApolicyonsomekeyareaswhichwillimpact H  yourprocurementtransactions. x8      XPXXXPXPXXXP    First,theFTAhasinitiatedstepstoconductasurveyofitscustomerswhoseoperationsand X businesstransactionsareimpactedbytheFTACircular4220._lD_,ThirdPartyContracting H Requirements.Asyoumayrecall,thecircular,asamended,wasissuedonOctober1,1995.The 8 circularwaswellreceived,andthefeedbackhasbeenconsistentlyfavorable.However,aswe ( strivetoenhancecustomersatisfactionthroughthecontinuousimprovementinthedeliveryof  services,thesurveywillenableustomeasurethedegreetowhichtheneedsofourgranteesand  industryhavebeenmet.  Second,theFTAplanstoissuetheThirdPartyContractingRequirementsasaformalrule  followingaNoticeofProposedRuleMaking(_NPRM_).The_NPRM_Ԁwillaffordbothgranteesand  industryrepresentativestheopportunitytopartnerwiththeFTAthroughtheexchangeofideas x andrecommendationstoinfluenceandshapethefinalrule.  h Third,inresponsetonumerousrequestsforFTApolicyandguidanceinsomekeyareas,the "H! followingpolicyandguidanceiseffectiveimmediatelyrelatingtotransactionsinthecategories x#8" identified: h$(#  (430   1.0(#(#"Tagons"arenotpermitted.Thistermisdefinedastheaddingontothecontracted H& % quantities(baseandoption)asoriginallyadvertised,competed,andawarded,whetherfor 8' & theuseofthebuyerorforothersandthentreatingtheaddonportionasthoughitmetthe ((!' requirementofcompetition.)"((#(#  0   2.0(#(#Theterm"piggybacking"isdefinedasthepostawarduseofacontractual*$*(#(# 0  document/processthatallowssomeonewhowasnotcontemplatedintheoriginal +%+ procurementtopurchasethesamesuppliesorequipmentthroughtheoriginal ,&, document/process.-'-(#(#     XPXXXPXPXXXP      B.4 <DL!XB0  Piggybackingispermissiblewhen:(a)thesolicitationdocumentandtheresultantcontract @ containan_assignability_Ԁclausethatprovidesfortheassignmentofallorpartofthe 0 specifieddeliverablesasoriginallyadvertised,competed,evaluated,andawarded.This   includesthebaseandoptionquantities.Inaddition,theoriginalsolicitationandresultant   contractmustcontainbothaminimumandamaximumquantity,whichrepresentthe   reasonablyforeseeableneedsofthepartiestothesolicitation. (#(#      XPXXXPXPXXXP    H+ 4 <DL!4 XH0   3.  Revenuecontractsaredefinedasthirdpartycontractswhoseprimarypurposeistoeither   generaterevenuesinconnectionwithatransitrelatedactivity,ortocreatebusiness   opportunitiesutilizinganFTAfundedasset.FTArequiresthatthesecontractsbeawarded p  utilizingcompetitiveselectionproceduresandprinciples.Theextentofandtypeof `  competitionrequirediswithinthediscretionaryjudgmentofthegrantee.Inaddition, P  FTArequiresthatthecontracttermbelimitedtoaperiodof5years,exceptinthose @  instanceswhereFTAhaswaivedthisrequirement.Requestsforwaiversfromtheterm p0  limitationmaybesubmittedtoyourRegionalOffice.InthosesituationswhereFTAmay `  providepriorapprovalonaproject(e.g.,TransitOrientedDevelopmentprojects,Cross P Borderleases)thewaiverforarevenuecontractinexcessoffiveyearsmaybeobtained @ aspartoftheinitialFTAapprovaloftheproject.XPXXXP0(#(# GuidanceoneachoftheseprocurementcategorieswillbepublishedintheBestPractices  ProcurementManualwithinthenextfewmonths.  XPXXXPFinally,theOfficeofFederalProcurementPolicyiscurrentlyreexaminingtheprocurement  requirementsintheCommonGrantRuleswhichformthebasisfortherequirementscontainedin  4220._lD_.IfyouwishtosuggestideasorchangestotheCommonGrantRules,pleasecontactthe  OfficeofAcquisitionandGrantManagement,OfficeoftheSecretaryattheaddressbeloworcall p areacode(202)3664289.XPXXXP ` XPXXXPMr.RobertG.Taylor  @ Chief,GrantsManagementDivision,M60 p!0 OfficeoftheSecretaryofTransportation `"  Washington,DC20590XPXXXP P# XPXXXPIlookforwardtoyourcontinuedsupportandinvaluablecontributionstowardtheseefforts. 0%! ̀-L!X-0  0(#(#Sincerely,' #(#(#  bb(#(#3L!X30  (!$b(#  bbbbm.69)%`|0"r `QE )rrb(km bbbb0  ("%b(#  bbbb bbbb bbbb (#(#bb  GordonJ._Linton_  ,p&) E+ 4 <DL!XE XXPXPX  6.September4,1998:_APTA_sStandardBusProcurementGuidelines   XXP s.(?/+b|0 cp `Wv@EI cpcpe  sU.S.Department `     h      p   400SeventhSt._S.W._    OfTransportation `     h      p   Washington,D.C.205907   7  D  7   FederalTransit `     7TheAdministrator 8  7  Administration `     h      p     C9816      `    XPX7September4,19987XXP X     !X      ?+ 4 <DL!!?  7     XX       `     h  XODX  XPXX XODDearColleague:   WiththePublicationoftheStandardBusProcurementGuidelines(_SBPG_),Iissuedaletter x pronouncingmysupportofthecollaborativeeffortsoftheAmericanPublicTransitAssociation h (_APTA_)andtheFederalTransitAdministration(FTA).InthatletterIassured_APTA_Ԁmembers X thatanyFTAfundedprocurementinconformancewiththePhaseIguidelineswouldbedeemed H tocomplywithFTA'sthirdpartyprocurementguidelineswithrespecttotheareasaddressed. x8 Recently,ithascometomyattentionthatmyletterhascreatedsomeconfusionregardingits X applicationandimpactontherequirementsofthirdpartycontractingsetforthintheFTA H Circular4220._lD_.Toclarifythisissue,IwishtoreiteratethattherequirementsforFTAfunded 8 _procurements_ԀarecoveredinFTACircular4220.ID.Istronglyurgegranteesdesiringtoconduct ( FTAfundedbus_procurements_Ԁutilizingthe_SBPG_ԀtoensuretherearenoconflictswiththeFTA  circular.Shouldclarificationberequired,granteesshouldcontacttheirappropriateFTAregional   officeforguidance.    Inclosing,IhopethisclarifiesanyconfusionrelatingtoFTAprocurementrequirements,andI "" offermycontinuedsupporttothiseffortandthoseinthefuture. ## Ѐ-L!X-0    Sincerely,%h%(#(# m.89)%`|0!r `QE{'rr0'k m 00(#(#3L!X30  'H!'0(#  00000  x(8"(0(#  0000 0000   X*$*  (#(#00  GordonJ._Linton_  H+%+ E+ 4 <DL!XE XXPXPX  7.March18,1997:BuyAmericaRequirementsofPreAwardandPostDelivery   XXP s.-?/+b|0cp `Wv@E^ cpcp  sU.S.Department `     h      p   400SeventhSt._S.W._    OfTransportation `     h      p   Washington,D.C.205907   7  D  7   FederalTransit `     7TheAdministrator 8  7  Administration `     h      p     C9703      `    XPX7March18,19977XXP P    7   `   XODX  XPXX XODDearColleague: H     XPXXXPXPXXXP        ABuyAmericaproblemandfollowupsurveysofseveralPreAwardandPostDelivery (  Reviewsofbus_procurements_Ԁindicatesthatmanygranteesandtheircontractorsarenot  conductingadequatereviewsoftheBuyAmericarequirements.ThePreAwardandPost  DeliveryReviewsaredesignedtoensurethatanyvehiclepurchasedwithFederalTransit  Administrationfundshasatleasta60percentdomesticcontentandundergoesfinalassemblyin  theUnitedStates.       XPXXXPXPXXXP    Ingeneral,wehavefoundthat,particularlyinthecaseoffinalassemblyactivities,thegrantees x surveyeddidnotprovideadescriptionofthemanufacturer'sfinalassemblyactivitiesandan h evaluationofwhetherBuyAmericarequirementsweremet.Whenagranteereceivesinformation X fromamanufacturer,itmustreviewthisinformationtodeterminewhetheritissufficientto H determineifthemanufacturerhasmettheBuyAmericarequirements.Iftheinformationis x8 insufficient,thegranteemusttakewhateverstepsarenecessarytosatisfyitselfthatthe h( manufactureriscomplyingwiththeBuyAmericarequirements.Thiswillusuallyinvolve X  seekingadditionalinformationfromthemanufacturer.Otherwise,thegranteecertifies H!  compliancewithBuyAmericaatitsownrisk.,,XXP,,,, 8"! XPX,,XPXXXPInordertoassistyouinconductingreviewsinaccordancewiththePreAwardandPostDelivery #`# ReviewRegulation,49_CFR_ԀPart663,Ihaveoutlinedintheenclosuretheproceduresagrantee $P$ mustusetoensurethatanyvehiclesitpurchasescomplywithBuyAmerica.Ifyouhaveany %@% questionsregardingBuyAmericacompliance,pleasecontactyourRegionalOffice.,,XXP,,,, p&0 & Ѐ-L!X-0    XPX,,XPXXXPSincerely,'!((#(# m.:9)%`|0"r `QEG)rr(k m (#(#  3L!X30  *h$+(#  0  +X%,(#  (#(#0  GordonJ._Linton_,H&-(#(# &    -L!X-XPXXXPXPXXXP         Enclosure %ract    XPXXXPXPXXXP'XX''x-5 x-8'.      h.((/   E+ 4 <DL!XE FEDERALTRANSITADMINISTRATION @   XPXXXPXPXXXP        GUIDANCEONBUYAMERICAREQUIREMENTSOFTHEPREAWARDAND 0 POSTDELIVERYREVIEWS    _ract    XPXXXPXPXXXP  _       XPXXXPXPXXXP        ThisguidanceonlyaddressestheBuyAmericarequirementsofthePreAwardandPostDelivery   Reviews.ThePurchaser'sRequirementsandtheFederalMotorVehicleSafetyStandards   requirementsmuststillbemet.    <    XPXXXPXPXXXP    I.  PreAwardReview(beforecontractaward)   0  ReviewdataandinformationonBuyAmericacompliancesubmittedbythe `  manufacturer,includingP (#(# 0   (#(# 0  Proposeddomesticcontentofvehiclecomponentstodeterminethatthe60percentUnited p0  Statescontentrequirementismet;` (#(# 0  0` (#(#Proposedfinalassemblylocation;and@` (#` (# 0  0` (#(# ` (#` (# 0  0` (#(#Manufacturingactivitiesthatwilltakeplaceduringfinalassembly. ` (#` (#    XPXXXPXPXXXP      0  Themanufacturershouldprovideenoughdetailabouttheseactivitiestoallowforthe  determinationthattheseactivitieswouldconstituteadequatefinalassemblyunderBuy  Americarequirements.Ifthemanufacturerdoesnotprovidesufficientinformation,the  granteemustseekadditionalinformation.Ifthegranteedeterminesthattheactivitiesare  notadequate,themanufacturermustbeaskedtosubmitarevisedmanufacturingplan.A  contractmaynotbeawardeduntilthegranteeisassuredthattheBuyAmerica p requirementswillbemet.`(#(#  N    XPXXXPXPXXXP       XPXXXPXPXXXP      0  Finalassemblyisdefinedin49_CFR_ԀPart661BuyAmericaRequirements;FinalRuleas  @ "thecreationoftheendproductfromdifferentelementsbroughttogetherforthatpurpose p!0 throughtheapplicationofmanufacturingprocesses."Inthecaseofthemanufactureofa `"  newrailcar,finalassemblywouldtypicallyinclude,asaminimum,thefollowing P# operations:installationandinterconnectionofpropulsioncontrolequipment,propulsion @$  coolingequipment,brakeequipment,energysourcesforauxiliariesandcontrols,heating 0%! andairconditioning,communicationsequipment,motors,wheelsandaxles,suspensions  &" andframes;theinspectionandverificationofallinstallationandinterconnectionwork; ' # andtheinplanttestingofthestationaryproducttoverifyallfunctions.Inthecaseofa (!$ newbus,finalassemblywouldtypicallyinclude,ataminimum,theinstallationand ("% interconnectionoftheengine,transmission,axles,includingthecoolingandbraking )#& systems;theinstallationandinterconnectionoftheheatingandairconditioning *$' equipment;theinstallationofpneumaticandelectricalsystems,doorsystems,passenger +%( seats,passengergrabrails,destinationsigns,wheelchairlifts;androadtesting,final ,p&) inspection,repairsandpreparationofthevehiclesfordelivery.-`'*(#(#      XPXXXPXPXXXP    0  Ifamanufacturer'sfinalassemblyprocessesdonotincludealltheactivitiesthatare 0 typicallyconsideredtheminimumrequirements,itcanrequestaFederalTransit   Administration(FTA)determinationofcompliance.FTAwillreviewtheserequestsona   casebycasebasistodeterminecompliancewithBuyAmerica. (#(# 0   (#(# 0  TheinformationreviewedsupportsaPreAwardBuyAmericaCertificationthatthe   proposedprocurementmeetsthedomesticcontent,thefinalassemblylocationandfinal   assemblyactivitiesrequirements. (#(# 0   (#(# II.  PostDeliveryReviewRequirements(duringandaftermanufacturing) `    Thegranteeisrequiredto: @     ?+ 4 <DL!X?XPXXXPXPXXXP      0  0` (#(#   ` Reviewactualcomponentcontenttoensurethatthevehiclemeetsthe60percent `  BuyAmericadomesticcontentrequirement;P` (#` (#  0    XPXXXPXPXXXP XX    0  0` (#(#   ` (#` (# 0  0` (#(#   ` CheckthatthefinalassemblylocationisintheUnitedStatesandthe 0 manufacturer'sfinalassemblyactivitiesmeettherequirementsoutlinedin   paragraphIabove;and` (#` (# 0  0` (#(#   ` (#` (# 0  0` (#(#   ` Haveanonsiteinspectorforrailcar_procurements_Ԁandbus_procurements_Ԁof  greaterthan10vehicles.` (#` (# 0   (#(#    XPXXXPXPXXXP      0  Theinspectormustverifythattheactualmanufacturingprocessesareconsistentwiththe  informationprovidedbythemanufacturerorwiththegrantee'sownassessments.The p postdeliveryreviewsverifiesagrantee'sPostDeliveryBuyAmericaCertificationthat ` thedomesticcontent,finalassemblylocationandfinalassemblyactivitiesrequirements P aremet.Anyquestionsoruncertaintiesconcerningtheseactivitiesshouldbereferred  @ immediatelytoFTA.p!0(#(#  e    XPXXXPXPXXXP