Transit Resource Center
September 18, 2001
Mr. Edward W. Pigman
President, Transit Resource Center
5840 Red Bug Lake Road, Suite 165
Winter Springs, Florida 32708
Dear Mr. Pigman:
This letter responds to your letter of July 16, 2001, requesting clarification of the Federal Transit Administration's (FTA) Buy America domestic content requirements. Specifically, you ask about the level of information a vehicle manufacturer must supply to confirm domestic content.
FTA's pre-award and post-delivery audit requirements are found at 49 C.F.R. 663 and require that a recipient purchasing rolling stock must conduct, or cause to be conducted, a pre-award and a post-delivery audit to verify compliance with Buy America. In order to complete the review, the auditor must be supplied with the following documents:
- A list of vehicle components and subcomponents used to calculate domestic content, including the component cost or the percentage of the overall content it represents.
- The total material cost, also called the component content cost, for the vehicle.
- The final assembly location.
- The activities that will take place during final assembly, and the cost of final assembly.
See, 49 C.F.R. 663.25 and 663.35; 57 Fed. Reg. 10834 (Mar. 31, 1992); FTA DC-90-7713-93-1, Rev. B. (May 1, 1995); and FTA DC-90-7713-94-1, Rev. B. (May 1, 1995).
From these facts, the auditor will be able to cull the necessary information. As has been established in the Federal Register and FTA's Audit Handbook, the manufacturer is not required to give the auditor the actual cost of the individual components and subcomponents. However, the manufacturer is required to divulge the total material cost and the percentage of the total material cost that each component or subcomponent represents.
If you have any questions concerning this letter, please contact Meghan G. Ludtke, at (202) 366-1936.
Very truly yours,
Gregory B. McBride
Deputy Chief Counsel