Mr. Greg E. Mitchell
Frost, Brown, Todd, LLC
2700 Lexington Financial Center
Lexington, Kentucky 40507-1749
Dear Mr. Mitchell:
This letter responds to your June 19, 2001, request for review of a public interest waiver granted to Steril-Koni, Inc. On February 14, 2001, the Federal Transit Administration granted a temporary public interest component waiver from the Buy America regulations to Steril-Koni for Omer heavy-duty parallelogram bus lifts, which are exclusively distributed in the U.S. by Steril-Koni. The waiver was granted on the grounds that Rotary, a U.S. manufacturer, is the only other supplier marketing such lifts in the U.S., and this situation gives Rotary a monopoly in the U.S. market, which is not in the public interest. The waiver was granted for a period of two years or until such time as a second domestic manufacturer for this type of lift becomes available, whichever comes first.
According to information you provided, a second U.S. manufacturer of the heavy-duty parallelogram lift, Mohawk Resources, Ltd., has become available. This information, which has been verified by my staff, includes a letter from Mohawk, written on December 22, 2000, indicating its plans to begin manufacture of these lifts; a March 23, 2001, letter from Mohawk advising sales representatives that it is accepting orders for these lifts; a new brochure advertising the product; and a June 7, 2001, notice from the Automotive Lift Institute indicating that there are now more than two marketers of such heavy duty lifts in the U.S.
Therefore, under its own terms, the waiver has expired. Solicitations issued and contracts awarded before the date of this letter will be subject to the waiver. However, all solicitations for these lifts issued after this date shall be subject to all of the requirements of Buy America.
If you have any questions, please contact Meghan G. Ludtke at (202) 366-1936.
Very truly yours,
Gregory B. McBride
Deputy Chief Counsel
cc: H. Dean Bouland, Boland & Brush, LLC