Notice of Buy American Waiver Under the American Recovery and Reinvestment Act of 2009, 9256-9257 [2010-4170]

Agencies

• NATIONAL SCIENCE FOUNDATION

[Federal Register Volume 75, Number 39 (Monday, March 1, 2010)]
[Notices]
[Pages 9256-9257]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-4170]


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NATIONAL SCIENCE FOUNDATION


Notice of Buy American Waiver Under the American Recovery and 
Reinvestment Act of 2009

AGENCY: National Science Foundation (NSF).

ACTION: Notice.

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SUMMARY: The National Science Foundation (NSF) has granted a limited 
waiver of section 1605 of the American Recovery and Reinvestment Act of 
2009 (Recovery Act), Public Law 111-5, 123 Stat. 115, 303 (2009), with 
respect to the purchase of the bow thruster that will be used in the 
Alaska Region Research Vessel (ARRV). A bow thruster is a propulsion 
device that is built into a vessel's bow to make it more maneuverable 
and better able to hold a certain position or orientation at sea.

DATES: March 1, 2010.

ADDRESSES: National Science Foundation, 4201 Wilson Blvd., Arlington, 
Virginia 22230.

FOR FURTHER INFORMATION CONTACT: Mr. Jeffrey Leithead, Division of 
Acquisition and Cooperative Support, 703-292-4595.

SUPPLEMENTARY INFORMATION: In accordance with section 1605(c) of the 
Recovery Act and section 176.80 of Title 2 of the Code of Federal 
Regulations, the National Science Foundation (NSF) hereby provides 
notice that on January 28, 2010, the NSF Director granted a limited 
project waiver of section 1605 of the Recovery Act (Buy American 
provision) with respect to the bow thruster that will be used in the 
ARRV. The basis for this waiver is section 1605(b)(2) of the Recovery 
Act, in that 360-degree azimuthing, 686-kW (920 hp), ice certified bow 
thrusters of satisfactory quality are not produced in the United States 
in sufficient and reasonably available commercial quantities. The cost 
of the bow thruster represents approximately 0.5% of the total $148 
million Recovery Act award provided toward construction of the ARRV.

I. Background

    The Recovery Act appropriated $400 million to NSF for several 
projects being funded by the Foundation's Major Research Equipment and 
Facilities Construction (MREFC) account. The ARRV is one of NSF's MREFC 
projects. Section 1605(a) of the Recovery Act, the Buy American 
provision, states that none of the funds appropriated by the Act ``may 
be used for a project for the construction, alteration, maintenance, or 
repair of a public building or public work unless all of the iron, 
steel, and manufactured goods used in the project are produced in the 
United States.''
    The ARRV has been developed under a cooperative agreement awarded 
to the University of Alaska, Fairbanks (UAF) that began in 2007. 
Shipyard selection is complete and UAF executed the construction 
contract in December 2009. The purpose of the Recovery Act is to 
stimulate economic recovery in part by funding current construction 
projects like the ARRV that are ``shovel ready'' without requiring 
projects to revise their standards and specifications, or to restart 
the bidding process again.
    Subsections 1605(b) and (c) of the Recovery Act authorize the head 
of a Federal department or agency to waive the Buy American provision 
if the head of the agency finds that: (1) Applying the provision would 
be inconsistent with the public interest; (2) the relevant goods are 
not produced in the United States in sufficient and reasonably 
available quantities and of a satisfactory quality; or (3) the 
inclusion of the goods produced in the United States will increase the 
cost of the project by more than 25 percent. If the head of the Federal 
department or agency waives the Buy American provision, then the head 
of the department or agency is required to publish a detailed 
justification in the Federal Register. Finally, section 1605(d) of the 
Recovery Act states that the Buy American provision must be applied in 
a manner consistent with the United States' obligations under 
international agreements.

II. Finding That Relevant Goods Are Not Produced in the United States 
in Sufficient and Reasonably Available Quality

    The vessel's operational design requirements, as set forth in the 
Science Mission Requirements and documented in the UAF's proposal, 
dictate two particular bow thruster specifications: (1) A certification 
for use in ice to permit independent operations in the Arctic; and (2) 
a requirement to hold the ship in a specific location or orientation 
for science operations. Consequently, a design was prepared that 
included a bow thruster and an ice wedge located on the hull. An ice 
wedge is a projection at the front of a vessel below the water line 
that moves ice to the sides as the bow breaks and pushes it down. This 
particular hull form, together with the requirements to hold the ship 
in a certain position at sea, further constrains the bow thruster 
design, resulting in the following four technical requirements of any 
bow thruster for this particular vessel:

[[Page 9257]]

     Size--The unit must fit within the space allocated in the 
hull and ice wedge;
     Power--Minimum 686-kW rated (920 hp);
     Capability--360-degree thrust (azimuthing steering 
control);
     Certification for use in ice--No hull protrusion(s), 
tunnel with propeller, or any feature that subjects the thruster to ice 
damage along the hull form, per American Bureau of Shipping Rules for 
Building and Classing Vessels, Polar Class PC-5.
    Failure to meet any of these four technical requirements would have 
severe negative consequences for the capabilities of the vessel. It is 
not feasible to modify the shape of the hull forward to accommodate a 
thruster of a different configuration, since the hull shape has been 
optimized for ice breaking through extensive testing over the past four 
years. Any changes at this point would significantly affect vessel 
capabilities. Reduction of the minimum power, or elimination of the 
360-degree thrust requirement, would also result in a vessel that could 
not successfully support open water science equipment deployments in 
the Arctic. Vessels working in the Arctic are subject to demanding and 
often dangerous conditions due to low temperatures, high winds, and 
rough seas as well as ice. Accepting a design that is susceptible to 
ice damage could render the bow thruster inoperable under these severe 
conditions, thereby jeopardizing the safety of the vessel and personnel 
aboard. Such compromises also produce a ship that would not be allowed 
to operate independently in the Arctic under emerging international 
agreements which require minimum standards for equipment survivability 
for vessels operating in polar waters (Arctic and Antarctic). 
Independent operation is critical to cost-effective science support. 
Requiring the ARRV to be escorted by another, more ice-capable vessel 
could add over $6M in outside charter cost for NSF and the other 
funding agencies for every 100 days in the ice. Frequent damage as a 
result of using a non-compliant design would add significant annual 
program cost for maintenance and repair (in excess of $100K per 
incident depending on the extent of damage) once the vessel goes into 
operation. This financial loss is in addition to the lost science 
opportunities caused by delay in sailing.
    As noted in UAF's request for this waiver, UAF performed market 
research in April and early May of 2009 that initially found that bow 
thrusters are generally available in manufacturers' commercial product 
lines. UAF then conducted additional market research by reviewing 
industry publications and the Internet, and by attending an industry 
suppliers' conference, in order to assess whether there exists a 
domestic capability to provide a bow thruster that meets the necessary 
requirements for safe and successful operation in Arctic waters.
    After identifying 15 potential domestic suppliers, UAF compared the 
existing product lines for compliance with the bow thruster technical 
specifications and requirements as identified above.
    Beginning with an assessment of power requirements, the bow 
thrusters offered by 12 domestic firms either did not meet the 686-kW 
rated minimum or the companies simply served as distributors of others' 
product lines. Two of the remaining three domestic suppliers did not 
provide bow thrusters that meet the required ice certification 
standards, because their products rely upon tunnels with propellers or 
units that extended from the hull; these features make this type of bow 
thruster susceptible to ice damage which, as explained above, could 
render them inoperable under the severe conditions inherent in Arctic 
operations. The final, most capable domestic manufacturer of bow 
thrusters did comply with the stated size, power and (potentially) 
capability requirements. However, this bow thruster relies upon 
controllable vanes that are fitted to the thruster discharge nozzles to 
achieve the 360-degree thrust capability. The controllable vanes make 
the bow thrusters susceptible to ice damage which, as explained above, 
could render them inoperable under the severe conditions inherent in 
Arctic operations.
    In the absence of a domestic supplier that could provide a 
requirements-compliant bow thruster, UAF requested that NSF issue a 
Section 1605 waiver determination with respect to the purchase of 
foreign-supplied, requirements-compliant bow thruster, so that the 
vessel will contain a bow thruster that meets the specific design and 
technical requirements which, as explained above, are necessary for 
this vessel to be able to perform its Arctic mission safely and 
successfully. Furthermore, UAF's market research indicated that bow 
thrusters compliant with the ARRV's technical specifications and 
requirements are commercially available from foreign vendors within 
their standard product lines.
    NSF's Division of Acquisition and Cooperative Support (DACS) and 
other NSF program staff reviewed the UAF waiver request submittal, 
found that it was complete, and determined that sufficient technical 
information was provided in order for NSF to evaluate the waiver 
request and to conclude that a waiver is needed and should be granted.

III. Waiver

    On January 28, 2010, based on the finding that no domestically 
produced bow thruster met all of the ARRV's technical specifications 
and requirements and pursuant to section 1605(b), the Director of the 
National Science Foundation granted a limited project waiver of the 
Recovery Act's Buy American requirements with respect to the 
procurement of a 360-degree azimuthing, 686-kW, ice classed bow 
thruster.

    Dated: February 24, 2010.
Lawrence Rudolph,
General Counsel.
[FR Doc. 2010-4170 Filed 2-26-10; 8:45 am]
BILLING CODE 7555-01-P