Edgewater Steel

Mr. Walter Beard
Manager, Wheel Sales
Edgewater Steel, Ltd.
300 College Avenue
Oakmont, Pennsylvania 15139

Dear Mr. Beard:

This responds to your letter of February 14, 2001, requesting review of the Long Island Railroad’s (LIRR) invitation for bid number ME-IT01678R-09, a solicitation for 44” wheels.  You have asked that we review the procurement for possible Buy America violations.  The Federal Transit Administration (FTA) has examined the bid documents and discussed the matter with procurement staff at LIRR and for the reasons listed below, has determined that there has been no violation of the Buy America regulation.

FTA was informed by LIRR that the solicitation was cancelled and there was no award on the basis of the above-referenced solicitation.  For that reason, this issue is moot.  Our review also indicates that LIRR intended to fund the procurement with local funds only.  As such, no Buy America certification needed to be included in the solicitation.  The regulation states, “[u]nless otherwise noted, this part applies to all federally assisted procurements using funds authorized by the Federal Mass Transit Act of 1964, as amended ….”  49 C.F.R. 661.3.  The regulation also provides that “no funds may be obligated by FTA for a grantee project unless all iron, steel, and manufactured products used in the project are produced in the United States.”  49 C.F.R. 661.5(a).  The Buy America requirements would not attach to this procurement because there was no federal grant money involved.  It is apparent that the boilerplate language on the first page of LIRR solicitation stating that the purchase is subject to federal financial assistance has caused confusion; accordingly, we have requested that LIRR remove that language in cases where federal funds are not being used.

If you have any more questions, please contact Meghan G. Ludtke, at (202) 366-4011.

Very truly yours,

Gregory B. McBride
Deputy Chief Counsel

cc: Douglass Rasmussen, LIRR

Decision not to investigate a Long Island Railroad procurement where no federal funds are used, but where federal clauses were put in the bid documents. 49 C.F.R. 661.3 and 661.15.

July 13, 2001