Notice of Granted Buy America Waiver
Number 67 FR 47885
07-22-02
[PDF Format]
[Federal Register: July 22, 2002 (Volume 67, Number 140)]
[Notices]
[Page 47885-47886]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22jy02-132]
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
Notice of Granted Buy America Waiver
AGENCY: Federal Transit Administration (FTA), DOT.
ACTION: Notice of granted Buy America waiver.
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SUMMARY: This waiver was granted to Webasto Thermosystems, Inc.,
Teleflex Thermal Technology, and Espar Products for the manufacture of
an auxiliary heater to be used in bus heating systems and will allow
vehicle manufacturers to count the auxiliary heater as domestic when
calculating domestic content. This notice shall ensure that the public,
particularly potential manufacturers, is aware of this waiver. FTA
requests that the public notify it of any relevant changes in the
domestic market of auxiliary heaters.
FOR FURTHER INFORMATION CONTACT: Meghan G. Ludtke, FTA Office of Chief
[[Page 47886]]
Counsel, Room 9316, (202) 366-1936 (telephone) or (202) 366-3809 (fax).
SUPPLEMENTARY INFORMATION: The above referenced waiver is as follows:
May 15, 2002
Mr. Patrick Lock, Transit OEM Account Manager, Webasto Theromsystems
Inc., 3333 John Conley Dr., Lapeer, Michigan 48446.
Mr. Scott Winton, Sales & Marketing Manager, Thermal Division,
Teleflex Thermal Technology, 3831 No. 6 Road, Richmond, BC, Canada
V6V 1P6.
Mr. John Dennehy, Vice President of Marketing and Communications,
Espar Products, Inc., 6435 Kestrel Road, Mississauga, Ontario,
Canada L5T128.
Dear Messrs. Lock, Winton, and Dennehy: This is in response to
Mr. Lock's letters of March 5, 2002, and April 1, 2002, in which he
requested a Buy America component waiver. The request is based on
the domestic non-availability of auxiliary heaters used in bus
heating systems. For the reasons below, I have determined that a
waiver is appropriate here.
We received a similar request from Teleflex on July 28, 2001,
which was ultimately denied. The reason for that denial was
discussed in our September 28, 2001, letter. We considered the fact
that the auxiliary heaters comprised a small percentage of the
overall material content of the vehicle and FTA's unwillingness to
create a competitive advantage where there might be more than [sic]
one foreign manufacturer. In that case, no further information was
provided concerning the market or other manufacturers, and
therefore, we were not presented with enough information on which to
base a waiver.
However, the request by Webasto contained the information needed
to grant this waiver; specifically, we were given information about
all known auxiliary heater manufacturers. We then verified this
information with many vehicle manufacturers and were told that the
three companies listed here were, in fact, the only known
manufacturers of such auxiliary heaters and that all three companies
supply foreign products. We are now confident that no domestic
manufacturer of this product currently exists.
The Federal Transit Administration's (FTA) requirements
concerning domestic preference for federally funded transit projects
are set forth in 49 U.S.C. 5323(j). Section 5323(j)(2)(C) contains
the general requirements for the procurement of rolling stock. This
section provides that when rolling stock is procured with FTA funds,
the cost of the components and subcomponents produced in the United
States must be at least 60 percent of the cost of the components of
the rolling stock, and the vehicle must undergo final assembly in
the U.S. See also, 49 CFR 661.11. Section 5323(j)(2)(B) states that
those requirements shall not apply if the item is not produced in
sufficient and reasonably available amounts in the U.S. See also, 49
CFR 661.7(c). The implementing regulation allows a bidder or
supplier to request a non-availability waiver for a component or
subcomponent of rolling stock. 49 CFR 661.7(f) and 661.9(d).
Based on the above-referenced information, I have determined
that the grounds for a ``non-availability'' waiver do exist for
Webasto, Teleflex, and Espar. Therefore, pursuant to the provisions
of 49 U.S.C. 5323(j)(2)(B), the waiver is hereby granted for all
contracts for auxiliary heaters entered into within two years of the
date of this letter, or until such time as a domestic source for
this type of product becomes available, whichever occurs first. In
order to ensure that the public is aware of this waiver,
particularly potential manufacturers, it will be published in the
Federal Register.
If you have any questions, please contact Meghan G. Ludtke at
(202) 366-1936.
Very truly yours,
Gregory B. McBride,
Deputy Chief Counsel.
Dated: Issued July 16, 2002.
Jennifer L. Dorn,
Administrator.
[FR Doc. 02-18347 Filed 7-19-02; 8:45 am]
BILLING CODE 4910-57-M
