Dedicated Micros, Inc.

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April 14, 2008


 

 

Christopher M. Johnson

Centre Law

1953 Gallows Road

Suite650

Vienna, VA 22182

 

Re:       Applicability of FTA’s Buy America requirements to a Digital Video Recorder manufactured by Dedicated Micros, Inc.

 

Dear Mr. Johnson:

I write in response to your letter dated January 25, 2008, and your subsequent telephone conversations with Federal Transit Administration (FTA) Attorney-Advisor Jayme Blakesley, regarding the applicability of FTA’s Buy America requirements to a Digital Video Recorder (DVR) manufactured by your client Dedicated Micros, Inc. (DMI).  You have asked for FTA’s concurrence on DMI’s designation of its DVR as eligible for the Buy America waiver located at Appendix A to 49 CFR 661.7 for microprocessors, computers, microcomputers, or software, or other such devices, which are used solely for the purpose of processing or storing data.  DMI intends to propose that the North American Bus Industries (NABI) include its DVR in its technical proposal to furnish buses to the City of Los Angeles Metropolitan Transit Authority.  I find that DMI has properly designated its DVR as eligible for the waiver.

Federal Public Transportation Law, 49 U.S.C. Chapter 53, Section 5323(j), limits the use of FTA funds to projects where the steel, iron, and manufactured goods used in the project are produced in the United States.  Section 5323(j)(2)(C) addresses the general requirements for the procurement of rolling stock.  This section requires that the cost of components and subcomponents produced in the United States total more than 60 percent of the cost of all components of the rolling stock, and that final assembly of the rolling stock occur in the United States. 

Section 5323(j)(2)(A) permits FTA to waive its Buy America requirements if applying them would be inconsistent with the public interest.  All components and subcomponents covered by a waiver may be considered to be of domestic origin for the purposes of calculating the cost of all components and subcomponents pursuant to section 5323(j)(2)(C). 

FTA has issued a permanent, general public interest waiver from the Buy America requirements for microprocessors, computers, microcomputers, or software, or other such devices, which are used solely for the purpose of processing or storing data.  Appendix A to 49 CFR 661.7.

The equipment at issue consists of a Digital Video Recorder (DVR).  The DVR is a component of DMI’s TransVu_V1.0 Video Surveillance Kit.  DMI contends that its DVR “consists of a functioning unit that includes a microprocessor, memory storage and input/output capability.  The DVR can be programmed to store, process and manipulate data.”

After careful consideration, and consultation with FTA engineers, I find that DMI has properly designated its DVR as eligible for the waiver located at Appendix A to 49 CFR 661.7.  Accordingly, DMI may consider its DVR to be of domestic origin for the purposes of calculating the cost of all components and subcomponents pursuant to section 5323(j)(2)(C).

If you have any questions, please contact Jayme Blakesley at (202) 366-0304.

 

Very Truly yours,

Severn E.S. Miller