Buy America Waiver Notification, 19212-19214 [2020-07145]
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ACTION:
Federal Register / Vol. 85, No. 66 / Monday, April 6, 2020 / Notices
Notice.
Notice is being given that the
FAA is considering a proposal from the
City of Arlington Airport Director to
change certain portions of the airport
from aeronautical use to nonaeronautical use at Arlington Municipal
Airport, Arlington, WA. The proposal
consists of 292.35 acres identified on
the Airport Layout Plan as the Airport
Business Park and the Airport Industrial
Park.
SUMMARY:
Comments are due within 30
days of the date of the publication of
this notice in the Federal Register.
Written comments can be provided to
Ms. Cayla D. Morgan, Environmental
Protection Specialist, Seattle Airports
District Office, 2220 S 216th Street, Des
Moines, WA 98198, (206) 231–4130.
DATES:
Mr.
David M. Ryan, Airport Director, City of
Arlington, 18204 59th Avenue NE,
Arlington, WA 98223; or Ms. Cayla D.
Morgan, Environmental Protection
Specialist, Seattle Airports District
Office, 2220 S 216th Street, Des Moines,
WA 98198, (206) 231–4130. Documents
reflecting this FAA action may be
reviewed at the above locations.
FOR FURTHER INFORMATION CONTACT:
Under the
provisions of Title 49, U.S.C. 47153(c),
and 47107(h)(2), the FAA is considering
a proposal from the Airport Director,
City of Arlington, to change a portion of
the Arlington Municipal Airport from
aeronautical use to non-aeronautical
use. The Airport Industrial Park on the
east side of the airfield consists of light
industrial manufacturing, office and
storage uses. The area has nearly
reached full build out and any future
use will remain the same. The Airport
Business Park located on the west side
of the airfield which only has two
existing facilities will be developed for
light industrial manufacturing, clean
technology, corporate offices, and retail
along the southern boarder adjacent to
State Route 531.
The lease revenue associated with this
property will be used to fund airport
projects and operating expenses. The
FAA concurs that the parcels are no
longer needed for aeronautical
purposes. The proposed use of this
property is compatible with other
airport operations in accordance with
FAA’s Policy and Procedures
Concerning the Use of Airport Revenue,
published in Federal Register on
February 16, 1999.
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SUPPLEMENTARY INFORMATION:
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Issued in Des Moines, Washington on
March 30, 2020.
Joelle Briggs,
Manager, Seattle Airports District Office.
[FR Doc. 2020–07101 Filed 4–3–20; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
Buy America Waiver Notification
Federal Highway
Administration (FHWA), U.S.
Department of Transportation.
ACTION: Notice.
AGENCY:
This notice provides
information regarding FHWA’s finding
that it is appropriate to grant a Buy
America waiver to the Inter-Island Ferry
Authority (IFA) of Alaska for
procurement of foreign iron and steel
components for refurbishment of two
ferry vessels, specifically including (i)
two sets of reduction gear replacement
parts, one for the M/V Stikine ferry and
the other for the M/V Prince of Wales
ferry; and (ii) one set of pitch control
units for the M/V Prince of Wales ferry.
DATES: The effective date of the waiver
is April 7, 2020.
FOR FURTHER INFORMATION CONTACT: For
questions about this notice, please
contact Mr. Gerald Yakowenko, FHWA
Office of Program Administration, (202)
366–1562, or via email at
Gerald.Yakowenko@dot.gov. For legal
questions, please contact Mr. Patrick
Smith, FHWA Office of the Chief
Counsel, (202) 366–1345, or via email at
Patrick.C.Smith@dot.gov. Office hours
for FHWA are from 8:00 a.m. to 4:30
p.m., E.T., Monday through Friday,
except Federal holidays.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Electronic Access
An electronic copy of this document
may be downloaded from the Federal
Register’s home page at: https://
www.archives.gov and the Government
Publishing Office’s database at: https://
www.access.gpo.gov/nara.
Background
The FHWA’s Buy America regulation,
23 CFR 635.410, requires a domestic
manufacturing process for any steel or
iron products (including protective
coatings) that are permanently
incorporated in a Federal-aid
construction project. The regulation also
provides for a waiver of the Buy
America requirements when the
application would be inconsistent with
the public interest or when satisfactory
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quality domestic steel and iron products
are not produced in the United States in
sufficient and reasonably available
quantities. This notice provides
information regarding FHWA’s finding
that it is appropriate to grant IFA a Buy
America waiver for procurement of nondomestic iron and steel components for
refurbishment of two ferry vessels,
specifically including (i) two sets of
reduction gear replacement parts, one
for the M/V Stikine ferry and the other
for the M/V Prince of Wales ferry; and
(ii) one set of pitch control units for the
M/V Prince of Wales ferry. The
reduction gear replacement units and
pitch control units are not available to
be produced using 100 percent domestic
steel or iron.
Background on the IFA System: The
IFA system provides the only ferry
service to Prince of Wales (POW) Island,
which is the fourth-largest island in the
United States with a landmass of 2,577
square miles. It has a population of
approximately 6,000. The POW Island is
located west of the City of Ketchikan,
but is not accessible by road or bridge.
Because of the lack of road access,
residents and visitors rely heavily on
the IFA ferries to reach POW Island or
return to the mainland. The IFA ferries
make daily runs between Ketchikan and
Hollis, a census-designated place on
POW Island. The ferries include
passenger and vehicle decks. They carry
more than 50,000 passengers and 12,000
vehicles annually.
The IFA provides critical ferry service
to businesses and individuals on POW
Island. For example, island residents
rely on ferry service for access to health
care, employment, and markets in
Ketchikan including for groceries,
goods, and services. In addition, many
businesses on POW Island and in
Ketchikan rely on this daily
transportation connection to transport
goods and customers. Finally,
passengers brought to the island from
the mainland support the island’s
tourism industry.
Considering the lack of access to POW
Island by road or bridge, the IFA system
is the only reliable and affordable mode
of transportation for many users. The
IFA system is critical to users in a way
that not all Federal-aid-supported ferry
systems are: It is the only available route
for owner-occupied vehicles to access
the island. Although POW Island may
also be accessed by more expensive air
travel or much slower cargo barges, the
IFA system provides a reliable, middle
alternative that is essential to many of
its users (including low-income users
who cannot afford alternative modes). It
also provides transportation security on
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Federal Register / Vol. 85, No. 66 / Monday, April 6, 2020 / Notices
days when weather prevents travel by
air.
The IFA is a public, non-profit
corporation organized under Alaska’s
Municipal Port Authority Act. The IFA
is governed by a Board of Directors who
are appointed by the member
communities. Although the IFA is
separate from the State of Alaska, its
operations are dependent on subsidies
from the State government. The IFA
reports that it runs approximately 75 to
80 percent of its operational costs out of
incoming revenue from fares; subsidies
from the State cover the remainder. The
IFA maintains that current fiscal
problems in Alaska have put those
subsidies at risk and make it highly
unlikely that IFA or Alaska will be able
to cover significant cost overruns on the
ferry refurbishment project.
Need for refurbishment of IFA ferries:
The IFA owns two ferries, the M/V
Stikine and the M/V Prince of Wales.
The M/V Prince of Wales was built in
2002 and the M/V Stikine was built in
2005. The IFA needs to refurbish both
ferries to keep them in service and allow
them to continue operating safely. The
IFA reports that the anticipated service
life for these vessels, with proper
maintenance and refurbishment, may be
up to 50 years. Thus, IFA anticipates
that the ferries may have a remaining
service life of 25 years to 35 years if they
are maintained and refurbished as
required. During preliminary
engineering, the IFA confirmed that
most parts needed for the refurbishment
will comply with FHWA’s Buy America
requirements. The IFA identified only
two parts needed for the refurbishment
project that could not satisfy FHWA’s
Buy America requirements: (i)
Reduction gear replacement parts for
both ferries; and (ii) pitch control units
for the M/V Prince of Wales.
Based on estimates received from IFA,
the two parts requiring waivers
constitute approximately 30 percent of
the total estimated project cost of
approximately $3 million. The IFA has
confirmed that both the reduction gear
replacement parts and the pitch control
units can be installed domestically in
the shipyard in Ketchikan, Alaska.
The existing reduction gears on both
vessels have exceeded their
recommended service life and must be
replaced. The IFA maintains that there
are no satisfactory replacement
reduction gears made domestically
meeting FHWA’s Buy America
requirement that will ensure: (i)
Synchronization with its existing
propulsion (or powertrain) system; and
(ii) continued safe operation of the
ferries. The existing reduction gears on
both ferries were manufactured by
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Reintjes GmbH in Germany. Considering
the age and hours of use of the existing
reduction gears, the IFA maintains that
there is urgent need for the replacement
parts to ensure the continued safe
transportation of its users. The IFA also
maintains the replacement is urgent due
to the importance of the IFA system to
the communities it serves in terms of
access and connectivity. The service life
of the replacement reduction gears
would be 13 to 15 years.
The IFA also maintains that the
existing pitch control units in the M/V
Prince of Wales are obsolete and must
be replaced. It maintains that there are
no satisfactory pitch control units made
domestically meeting FHWA’s Buy
America requirement that will ensure:
(i) Synchronization with its existing
propulsion system; and (ii) continued
safe operation of the ferry. The IFA also
maintains that timely replacement of
this part is necessary to ensure the
continued safe transportation of its
users and due to the importance of the
IFA system to the communities it serves
in terms of access and connectivity. The
service life of the replacement pitch
control units would be 15 to 20 years.
Waiver Request and Supporting
Information: The IFA originally
submitted a Buy America waiver request
to FHWA for the reduction gear
replacement parts and pitch control
units in September 2018. Prior to
submitting its waiver request, IFA
sought but failed to identify domestic
manufacturers for these products.
Consistent with Executive Order 13788,
after receiving the request, FHWA
requested that IFA seek to maximize the
use of goods, products, and materials
produced in the U.S. on the project. In
response to this request and several
iterations of follow-up questions from
FHWA, IFA spent the ensuing 12
months seeking to identify domestic
manufacturers for the parts that it had
not identified in its original search or,
if full compliance was not possible,
foreign manufacturers that could
maximize use of domestic content by
using greater quantities of U.S. steel.
These search activities continued
between September 2018 and September
2019. Although IFA did not identify
compliant products, IFA provided
information to FHWA supporting its
waiver request, including:
• Information describing the domestic
content characteristics of the
manufactured products needed,
including the sources and assembly
locations of those products;
• information supporting the
technical necessity of these specific
products for the continued safe
operation of the ferries and
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19213
demonstrating that alternative designs
were infeasible;
• information documenting efforts to
maximize domestic content even if full
compliance was not possible, including
efforts to have foreign manufacturers
incorporate domestic steel; and
• information describing the effects of
denying the request, including the
infeasibility of completing the
acquisitions without Federal funding.
For the reduction gears on both
vessels, IFA determined that only the
original equipment manufacturer,
Reintjes GmbH, could produce
replacement parts to synchronize with
its existing system and ensure
continued safe operation. Due to
existing supply contracts and warranty
requirements for its parts, Reintjes
GmbH was unable to offer an option to
produce the reduction gears using
United States steel.
For the pitch control units on the M/
V Prince of Wales, IFA reported the
following: It identified a manufacturer
in Denmark that could potentially
produce the parts using United States
steel. However, considering the revised
cost of raw materials and the
transportation costs for sending the
materials from the United States to
Denmark, among other factors, this
option increased the cost estimate for
the pitch control units by approximately
$750,000 compared to pitch control
units produced with foreign steel
(including both parts and installation).
This doubled the total cost estimate for
the parts. The IFA also identified a
manufacturer in Sweden that could
produce an alternate propulsion system
for the M/V Prince of Wales using
mostly Unites States content, but this
option would increase the project cost
by at least $1.5 million compared to
pitch control units produced with
foreign steel (including both parts and
installation). This more than tripled the
total cost estimate for refurbishing the
pitch control units. Moreover, the
manufacturer could not guarantee that
the alternate propulsion system would
properly synchronize with all other
existing parts on the M/V Prince of
Wales. The IFA determined that these
alternatives would be cost prohibitive: If
required to purchase one of these
options, IFA would not be able to
refurbish the vessel. This would
effectively end the remaining service
life of the M/V Prince of Wales, which
could otherwise continue in operation
for decades if properly refurbished and
maintained. The IFA also maintains that
the current fiscal situation in Alaska
makes the State government unwilling
to increase the existing subsidy to
absorb significant cost overruns relative
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Federal Register / Vol. 85, No. 66 / Monday, April 6, 2020 / Notices
to IFA’s estimate for pitch control units
produced with foreign steel.
Public Comments on Waiver Request:
In accordance with the Consolidated
Appropriations Act of 2016 (Pub. L.
114–113) and the Continuing
Appropriations Act of 2017 (Pub. L.
114–223), FHWA published a notice of
intent to issue a waiver on its website,
https://www.fhwa.dot.gov/construction/
contracts/waivers.cfm?id=155, on
February 19, 2020. The FHWA received
six comments in response to the
publication. Four comments supported
the waiver, one comment was generally
opposed to the waiver, and one
comment was nonresponsive. The
comment FHWA considered nonresponsive appeared to request FHWA
to publish notice of its waiver finding in
the Federal Register, which FHWA does
through this notice. The comment
opposing the waiver did not offer any
information on the availability of
compliant products, nor did it suggest
specific, additional actions that IFA
could take to maximize its use of goods,
products, and materials produced in the
United States. Thus, IFA has not
received any new information
indicating that the subject parts can be
produced by domestic manufacturers.
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Finding and Request for Comments
Based on all the information available
to the Agency, FHWA concludes that
there are no domestic manufacturers of
the reduction gear replacement parts
and pitch control units needed for
refurbishment of the M/V Stikine and
M/V Prince of Wales by IFA. This
finding is only for the procurement of
non-domestic iron and steel
components for refurbishment of two
ferry vessels, specifically including (i)
two sets of reduction gear replacement
parts, one for the M/V Stikine ferry and
the other for the M/V Prince of Wales
ferry; and (ii) one set of pitch control
units for the M/V Prince of Wales ferry.
The IFA and its contractors and
subcontractors involved in the
procurement of the reduction gear
replacement parts and pitch control
units are reminded of the need to
comply with the Cargo Preference Act in
46 CFR part 38, if applicable.
In accordance with the provisions of
Section 117 of the SAFETEA–LU
Technical Corrections Act of 2008 (Pub.
L. 110–244, 122 Stat. 1572), FHWA is
providing this notice as its finding that
a waiver of Buy America requirements
is appropriate. The FHWA invites
public comment on this finding for an
additional 5 days following the effective
date of the finding. Comments may be
submitted to FHWA’s website via the
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link provided to the waiver page noted
above.
Authority: 23 U.S.C. 313; Pub. L. 110–161,
23 CFR 635.410
Nicole R. Nason,
Administrator, Federal Highway
Administration.
[FR Doc. 2020–07145 Filed 4–3–20; 8:45 am]
BILLING CODE 4910–22–P
DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
Notice of Final Federal Agency Actions
on Proposed Highway in Utah
Federal Highway
Administration (FHWA), Department of
Transportation, Utah Department of
Transportation (UDOT).
ACTION: Notice of limitations on claims
for judicial review of actions by UDOT
and other federal agencies.
AGENCY:
The FHWA, on behalf of
UDOT, is issuing this notice to
announce actions taken by UDOT that
are final Federal agency actions. The
final agency actions relate to a proposed
highway project, improvements to
Interstate 15 (I–15), at milepost (MP) 11
in Washington City, Washington
County, State of Utah. Those actions
grant licenses, permits and/or approvals
for the project. The UDOT’s Record of
Decision (ROD) provides details on the
Selected Alternative for the proposed
improvements.
DATES: By this notice, FHWA, on behalf
of UDOT, is advising the public of final
agency actions subject to 23 U.S.C.
139(l)(1). A claim seeking judicial
review of the Federal agency actions on
the highway project will be barred
unless the claim is filed on or before
September 3, 2020. If the Federal law
that authorizes judicial review of a
claim provides a time period of less
than 150 days for filing such claim, then
that shorter time period still applies.
FOR FURTHER INFORMATION CONTACT:
Elisa Albury, Environmental Program
Manager, UDOT Environmental
Services, P.O. Box 143600, Salt Lake
City, UT 84114; (801)–834–5284; email:
ealbury@utah.gov. UDOT’s normal
business hours are 8 a.m. to 5 p.m.
(Mountain Time Zone), Monday through
Friday, except State and Federal
holidays.
SUPPLEMENTARY INFORMATION: Effective
January 17, 2017, FHWA assigned to
UDOT certain responsibilities of FHWA
for environmental review, consultation,
and other actions required by applicable
Federal environmental laws and
SUMMARY:
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regulations for highway projects in
Utah, pursuant to 23 U.S.C. 327. Actions
taken by UDOT on FHWA’s behalf
pursuant to 23 U.S.C. 327 constitute
Federal agency actions for purposes of
Federal law. Notice is hereby given that
UDOT has taken final agency actions
subject to 23 U.S.C. 139(l)(1) by issuing
licenses, permits, and approvals for the
I–15 Milepost 11 Interchange project in
the State of Utah.
The project proposes to construct a
new interchange at Main Street,
widening Main Street from two lanes to
five lanes between Buena Vista
Boulevard and Telegraph Street, and
improvements to the Green Spring
Drive/Telegraph Street intersection. The
purpose of the project is to maintain the
operations and safety of I–15 between
Exit 10 and Exit 13; and enhance the
mobility and safety of the transportation
system in Washington City’s primary
business district. These improvements
were identified in the EIS prepared for
the project by UDOT as Alternative 4.
The project is included in UDOT’s
adopted 2020–2025 State Transportation
Improvement Plan (STIP) as project
number 14560 and is scheduled for final
design and right-of-way acquisition in
fiscal year 2022. The project is also
included in Phase 1 (project number 36)
of the Dixie Metropolitan Planning
Organization’s 2019–2050 Regional
Transportation Plan approved in
October 2019.
The actions by UDOT, and the laws
under which such actions were taken,
are described in the EIS approved on
September 13, 2019, and the ROD
(Record of Decision for I–15 Milepost
Interchange; Washington City,
Washington County, Utah, Project No.
F–I15–1(166)11)) approved on
September 13, 2019, and other
documents in the UDOT project records.
The EIS and ROD are available for
review by contacting UDOT at the
address provided above. In addition,
these documents can be viewed and
downloaded from the project website at
www.mp11.org. This notice applies to
the EIS, the ROD, the NHPA Section 106
review, the Endangered Species Act
determination, the noise review and
noise abatement determination, and all
other UDOT and federal agency
decisions and other actions with respect
to the project as of the issuance date of
this notice and all laws under which
such actions were taken, including but
not limited to the following laws
(including their implementing
regulations):
1. General: National Environmental
Policy Act [42 U.S.C. 4321–4351];
Federal-Aid Highway Act [23 U.S.C. 109
and 23 U.S.C. 128]; MAP–21, the
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]]>Agencies
[Federal Register Volume 85, Number 66 (Monday, April 6, 2020)]
[Notices]
[Pages 19212-19214]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07145]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Federal Highway Administration
Buy America Waiver Notification
AGENCY: Federal Highway Administration (FHWA), U.S. Department of
Transportation.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This notice provides information regarding FHWA's finding that
it is appropriate to grant a Buy America waiver to the Inter-Island
Ferry Authority (IFA) of Alaska for procurement of foreign iron and
steel components for refurbishment of two ferry vessels, specifically
including (i) two sets of reduction gear replacement parts, one for the
M/V Stikine ferry and the other for the M/V Prince of Wales ferry; and
(ii) one set of pitch control units for the M/V Prince of Wales ferry.
DATES: The effective date of the waiver is April 7, 2020.
FOR FURTHER INFORMATION CONTACT: For questions about this notice,
please contact Mr. Gerald Yakowenko, FHWA Office of Program
Administration, (202) 366-1562, or via email at
[email protected]. For legal questions, please contact Mr.
Patrick Smith, FHWA Office of the Chief Counsel, (202) 366-1345, or via
email at [email protected]. Office hours for FHWA are from 8:00
a.m. to 4:30 p.m., E.T., Monday through Friday, except Federal
holidays.
SUPPLEMENTARY INFORMATION:
Electronic Access
An electronic copy of this document may be downloaded from the
Federal Register's home page at: https://www.archives.gov and the
Government Publishing Office's database at: https://www.access.gpo.gov/nara.
Background
The FHWA's Buy America regulation, 23 CFR 635.410, requires a
domestic manufacturing process for any steel or iron products
(including protective coatings) that are permanently incorporated in a
Federal-aid construction project. The regulation also provides for a
waiver of the Buy America requirements when the application would be
inconsistent with the public interest or when satisfactory quality
domestic steel and iron products are not produced in the United States
in sufficient and reasonably available quantities. This notice provides
information regarding FHWA's finding that it is appropriate to grant
IFA a Buy America waiver for procurement of non-domestic iron and steel
components for refurbishment of two ferry vessels, specifically
including (i) two sets of reduction gear replacement parts, one for the
M/V Stikine ferry and the other for the M/V Prince of Wales ferry; and
(ii) one set of pitch control units for the M/V Prince of Wales ferry.
The reduction gear replacement units and pitch control units are not
available to be produced using 100 percent domestic steel or iron.
Background on the IFA System: The IFA system provides the only
ferry service to Prince of Wales (POW) Island, which is the fourth-
largest island in the United States with a landmass of 2,577 square
miles. It has a population of approximately 6,000. The POW Island is
located west of the City of Ketchikan, but is not accessible by road or
bridge. Because of the lack of road access, residents and visitors rely
heavily on the IFA ferries to reach POW Island or return to the
mainland. The IFA ferries make daily runs between Ketchikan and Hollis,
a census-designated place on POW Island. The ferries include passenger
and vehicle decks. They carry more than 50,000 passengers and 12,000
vehicles annually.
The IFA provides critical ferry service to businesses and
individuals on POW Island. For example, island residents rely on ferry
service for access to health care, employment, and markets in Ketchikan
including for groceries, goods, and services. In addition, many
businesses on POW Island and in Ketchikan rely on this daily
transportation connection to transport goods and customers. Finally,
passengers brought to the island from the mainland support the island's
tourism industry.
Considering the lack of access to POW Island by road or bridge, the
IFA system is the only reliable and affordable mode of transportation
for many users. The IFA system is critical to users in a way that not
all Federal-aid-supported ferry systems are: It is the only available
route for owner-occupied vehicles to access the island. Although POW
Island may also be accessed by more expensive air travel or much slower
cargo barges, the IFA system provides a reliable, middle alternative
that is essential to many of its users (including low-income users who
cannot afford alternative modes). It also provides transportation
security on
[[Page 19213]]
days when weather prevents travel by air.
The IFA is a public, non-profit corporation organized under
Alaska's Municipal Port Authority Act. The IFA is governed by a Board
of Directors who are appointed by the member communities. Although the
IFA is separate from the State of Alaska, its operations are dependent
on subsidies from the State government. The IFA reports that it runs
approximately 75 to 80 percent of its operational costs out of incoming
revenue from fares; subsidies from the State cover the remainder. The
IFA maintains that current fiscal problems in Alaska have put those
subsidies at risk and make it highly unlikely that IFA or Alaska will
be able to cover significant cost overruns on the ferry refurbishment
project.
Need for refurbishment of IFA ferries: The IFA owns two ferries,
the M/V Stikine and the M/V Prince of Wales. The M/V Prince of Wales
was built in 2002 and the M/V Stikine was built in 2005. The IFA needs
to refurbish both ferries to keep them in service and allow them to
continue operating safely. The IFA reports that the anticipated service
life for these vessels, with proper maintenance and refurbishment, may
be up to 50 years. Thus, IFA anticipates that the ferries may have a
remaining service life of 25 years to 35 years if they are maintained
and refurbished as required. During preliminary engineering, the IFA
confirmed that most parts needed for the refurbishment will comply with
FHWA's Buy America requirements. The IFA identified only two parts
needed for the refurbishment project that could not satisfy FHWA's Buy
America requirements: (i) Reduction gear replacement parts for both
ferries; and (ii) pitch control units for the M/V Prince of Wales.
Based on estimates received from IFA, the two parts requiring
waivers constitute approximately 30 percent of the total estimated
project cost of approximately $3 million. The IFA has confirmed that
both the reduction gear replacement parts and the pitch control units
can be installed domestically in the shipyard in Ketchikan, Alaska.
The existing reduction gears on both vessels have exceeded their
recommended service life and must be replaced. The IFA maintains that
there are no satisfactory replacement reduction gears made domestically
meeting FHWA's Buy America requirement that will ensure: (i)
Synchronization with its existing propulsion (or powertrain) system;
and (ii) continued safe operation of the ferries. The existing
reduction gears on both ferries were manufactured by Reintjes GmbH in
Germany. Considering the age and hours of use of the existing reduction
gears, the IFA maintains that there is urgent need for the replacement
parts to ensure the continued safe transportation of its users. The IFA
also maintains the replacement is urgent due to the importance of the
IFA system to the communities it serves in terms of access and
connectivity. The service life of the replacement reduction gears would
be 13 to 15 years.
The IFA also maintains that the existing pitch control units in the
M/V Prince of Wales are obsolete and must be replaced. It maintains
that there are no satisfactory pitch control units made domestically
meeting FHWA's Buy America requirement that will ensure: (i)
Synchronization with its existing propulsion system; and (ii) continued
safe operation of the ferry. The IFA also maintains that timely
replacement of this part is necessary to ensure the continued safe
transportation of its users and due to the importance of the IFA system
to the communities it serves in terms of access and connectivity. The
service life of the replacement pitch control units would be 15 to 20
years.
Waiver Request and Supporting Information: The IFA originally
submitted a Buy America waiver request to FHWA for the reduction gear
replacement parts and pitch control units in September 2018. Prior to
submitting its waiver request, IFA sought but failed to identify
domestic manufacturers for these products. Consistent with Executive
Order 13788, after receiving the request, FHWA requested that IFA seek
to maximize the use of goods, products, and materials produced in the
U.S. on the project. In response to this request and several iterations
of follow-up questions from FHWA, IFA spent the ensuing 12 months
seeking to identify domestic manufacturers for the parts that it had
not identified in its original search or, if full compliance was not
possible, foreign manufacturers that could maximize use of domestic
content by using greater quantities of U.S. steel. These search
activities continued between September 2018 and September 2019.
Although IFA did not identify compliant products, IFA provided
information to FHWA supporting its waiver request, including:
Information describing the domestic content
characteristics of the manufactured products needed, including the
sources and assembly locations of those products;
information supporting the technical necessity of these
specific products for the continued safe operation of the ferries and
demonstrating that alternative designs were infeasible;
information documenting efforts to maximize domestic
content even if full compliance was not possible, including efforts to
have foreign manufacturers incorporate domestic steel; and
information describing the effects of denying the request,
including the infeasibility of completing the acquisitions without
Federal funding.
For the reduction gears on both vessels, IFA determined that only
the original equipment manufacturer, Reintjes GmbH, could produce
replacement parts to synchronize with its existing system and ensure
continued safe operation. Due to existing supply contracts and warranty
requirements for its parts, Reintjes GmbH was unable to offer an option
to produce the reduction gears using United States steel.
For the pitch control units on the M/V Prince of Wales, IFA
reported the following: It identified a manufacturer in Denmark that
could potentially produce the parts using United States steel. However,
considering the revised cost of raw materials and the transportation
costs for sending the materials from the United States to Denmark,
among other factors, this option increased the cost estimate for the
pitch control units by approximately $750,000 compared to pitch control
units produced with foreign steel (including both parts and
installation). This doubled the total cost estimate for the parts. The
IFA also identified a manufacturer in Sweden that could produce an
alternate propulsion system for the M/V Prince of Wales using mostly
Unites States content, but this option would increase the project cost
by at least $1.5 million compared to pitch control units produced with
foreign steel (including both parts and installation). This more than
tripled the total cost estimate for refurbishing the pitch control
units. Moreover, the manufacturer could not guarantee that the
alternate propulsion system would properly synchronize with all other
existing parts on the M/V Prince of Wales. The IFA determined that
these alternatives would be cost prohibitive: If required to purchase
one of these options, IFA would not be able to refurbish the vessel.
This would effectively end the remaining service life of the M/V Prince
of Wales, which could otherwise continue in operation for decades if
properly refurbished and maintained. The IFA also maintains that the
current fiscal situation in Alaska makes the State government unwilling
to increase the existing subsidy to absorb significant cost overruns
relative
[[Page 19214]]
to IFA's estimate for pitch control units produced with foreign steel.
Public Comments on Waiver Request: In accordance with the
Consolidated Appropriations Act of 2016 (Pub. L. 114-113) and the
Continuing Appropriations Act of 2017 (Pub. L. 114-223), FHWA published
a notice of intent to issue a waiver on its website, https://www.fhwa.dot.gov/construction/contracts/waivers.cfm?id=155, on February
19, 2020. The FHWA received six comments in response to the
publication. Four comments supported the waiver, one comment was
generally opposed to the waiver, and one comment was nonresponsive. The
comment FHWA considered non-responsive appeared to request FHWA to
publish notice of its waiver finding in the Federal Register, which
FHWA does through this notice. The comment opposing the waiver did not
offer any information on the availability of compliant products, nor
did it suggest specific, additional actions that IFA could take to
maximize its use of goods, products, and materials produced in the
United States. Thus, IFA has not received any new information
indicating that the subject parts can be produced by domestic
manufacturers.
Finding and Request for Comments
Based on all the information available to the Agency, FHWA
concludes that there are no domestic manufacturers of the reduction
gear replacement parts and pitch control units needed for refurbishment
of the M/V Stikine and M/V Prince of Wales by IFA. This finding is only
for the procurement of non-domestic iron and steel components for
refurbishment of two ferry vessels, specifically including (i) two sets
of reduction gear replacement parts, one for the M/V Stikine ferry and
the other for the M/V Prince of Wales ferry; and (ii) one set of pitch
control units for the M/V Prince of Wales ferry.
The IFA and its contractors and subcontractors involved in the
procurement of the reduction gear replacement parts and pitch control
units are reminded of the need to comply with the Cargo Preference Act
in 46 CFR part 38, if applicable.
In accordance with the provisions of Section 117 of the SAFETEA-LU
Technical Corrections Act of 2008 (Pub. L. 110-244, 122 Stat. 1572),
FHWA is providing this notice as its finding that a waiver of Buy
America requirements is appropriate. The FHWA invites public comment on
this finding for an additional 5 days following the effective date of
the finding. Comments may be submitted to FHWA's website via the link
provided to the waiver page noted above.
Authority: 23 U.S.C. 313; Pub. L. 110-161, 23 CFR 635.410
Nicole R. Nason,
Administrator, Federal Highway Administration.
[FR Doc. 2020-07145 Filed 4-3-20; 8:45 am]
BILLING CODE 4910-22-P
