Notice of Intent To Grant a Buy America Exemption to Amtrak To Purchase Certain Non-Domestic Track Maintenance Equipment, 39661-39664 [2020-14155]
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Federal Register / Vol. 85, No. 127 / Wednesday, July 1, 2020 / Notices
1, 2020, the USMCA will enter into
force.
The Schedule of the United States to
Annex 2–B of the Agreement establishes
a TRQ for imports of refined sugar from
Canada, set forth in paragraph 14 of
Appendix 2. Paragraph 14(c) provides
for an increase in the in-quota quantity
of the TRQ for refined sugar in any year
in which the Secretary makes a
determination to permit the importation
into the United States at in-quota tariff
rates of additional quantities of refined
sugar, other than specialty sugar, above
the quantities made available at those
rates pursuant to its commitments under
the WTO Agreement and other trade
agreements. According to paragraph
14(c), this increase for the refined sugar
TRQ for Canada is equal to 20 percent
of the additional quantities determined
by the Secretary.
Pursuant to Note 9 to Subchapter
XXIII of Chapter 98 of the Harmonized
Tariff Schedule of the United States
(HTSUS), the Office of the U.S. Trade
Representative (USTR) publishes a
determination in the Federal Register of
this additional quantity for any such
year.
On April 3, 2020 (85 FR 18913), the
Secretary announced an additional inquota quantity of the TRQ for refined
sugar for the remainder of fiscal year
2020 (ending September 30, 2020) in the
amount of 181,437 metric tons raw
value (MTRV). This quantity is in
addition to the minimum amount to
which the United States is committed
under the WTO Uruguay Round
Agreements and other trade agreements.
USTR is providing notice that the inquota quantity of the USMCA TRQ for
imported refined sugar from Canada for
calendar year 2020 is increased by
36,287 MTRV, which may be supplied
on a first-come, first-served basis.
Refined sugar imported from Canada
pursuant to this notice may be made
from non-originating raw sugar. Only
refined sugar with a sucrose content, by
weight in the dry state, corresponding to
a reading of 99.5 degrees polarity or
more will be permitted. No certificate
for quota eligibility is required for sugar
entering under this additional in-quota
quantity.
Daniel Watson,
Acting Assistant U.S. Trade Representative
for the Western Hemisphere, Office of the
United States Trade Representative.
OFFICE OF THE UNITED STATES
TRADE REPRESENTATIVE
DEPARTMENT OF TRANSPORTATION
[Docket No. USTR–2020–0023]
[Docket No. FRA–2012–0033]
Amendment To Review of Action:
Enforcement of U.S. WTO Rights in
Large Civil Aircraft Dispute
Notice of Intent To Grant a Buy
America Exemption to Amtrak To
Purchase Certain Non-Domestic Track
Maintenance Equipment
Office of the United States
Trade Representative.
AGENCY:
ACTION:
Amendment.
This notice amends an annex
to the notice published on June 26,
2020, which requested public comments
in connection with a review of the
action being taken in the Section 301
investigation involving the enforcement
of U.S. World Trade
Organization (WTO) rights in the
Large Civil Aircraft dispute. The
amendment adds two products to
Annex III that were inadvertently
omitted.
SUMMARY:
For
questions about the investigation,
contact Associate General Counsel
Megan Grimball at (202) 395–5725, or
Director for Europe Michael Rogers at
(202) 395–3320. For questions on
customs classification of products
identified in the annexes to this notice,
contact Traderemedy@cbp.dhs.gov.
FOR FURTHER INFORMATION CONTACT:
In a notice
published on June 26, 2020 (85 FR
38488), the Office of United States
Trade Representative invited comments
with respect to the maintenance or
imposition of additional duties on
specific products of specific current or
former EU member States. Annex III to
the June 26 notice includes a list of 30
products of France, Germany, Spain, or
the United Kingdom under
consideration for increased duties. Two
products were inadvertently omitted.
This notice amends Annex III by adding
the following two products of France,
Germany, Spain or the United Kingdom:
SUPPLEMENTARY INFORMATION:
2007.99.05
jams
2007.99.10
Lingonberry and raspberry
Strawberry Jam
Joseph Barloon,
General Counsel, Office of the United States
Trade Representative.
[FR Doc. 2020–14209 Filed 6–30–20; 8:45 am]
BILLING CODE 3290–F8–P
[FR Doc. 2020–14173 Filed 6–30–20; 8:45 am]
BILLING CODE 3290–F0–P
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Federal Railroad Administration
Federal Railroad
Administration (FRA), United States
Department of Transportation (DOT).
ACTION: Notice of intent to grant Amtrak
Buy America exemption.
AGENCY:
FRA is issuing this notice to
provide information to the public
regarding its finding that it is
appropriate to grant the National
Railroad Passenger Corporation
(Amtrak) an exemption from Amtrak’s
Buy America requirement for
procurement of the following nondomestic track maintenance equipment
as part of its state-of-good-repair (SOGR)
program: One tunnel crane; one track
laying machine; and eight two-man rail
car movers.
DATES: Written comments on FRA’s
determination to grant a Buy America
exemption to Amtrak should be
provided to FRA on or before July 8,
2020.
SUMMARY:
Please submit your
comments to the U.S. Government
electronic docket site at https://
www.regulations.gov, in docket number:
FRA–2012–0033.
Note: All submissions received,
including any personal information
therein, will be posted without change
or alteration to https://
www.regulations.gov. For more
information, you may review DOT’s
complete Privacy Act Statement
published in the Federal Register on
April 11, 2000 (65 FR 19477).
FOR FURTHER INFORMATION CONTACT: Mr.
John Johnson, Attorney-Advisor, FRA
Office of the Chief Counsel, 1200 New
Jersey Avenue SE, Washington, DC
20590, (202) 493–0078, John.Johnson@
dot.gov.
ADDRESSES:
The
purpose of this notice is to provide
information to the public regarding
FRA’s finding that it is appropriate to
grant Amtrak an exemption from
Amtrak’s Buy America requirement,
pursuant to 49 U.S.C. 24305(f)(4)(A)(iii),
to purchase the following non-domestic
equipment as part of its SOGR program:
Railbound Tunnel Crane; Track Laying
Machine; and eight Two-Man Rail Car
Movers with Heavy Duty Crane,
Railgear, and Rail Car Couplers.
SUPPLEMENTARY INFORMATION:
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Federal Register / Vol. 85, No. 127 / Wednesday, July 1, 2020 / Notices
Background
Amtrak is the Nation’s Federally
chartered intercity passenger rail
operator and rail infrastructure
provider. Among its infrastructure
assets, Amtrak owns 1,169 track miles of
infrastructure on the Northeast Corridor
(NEC), which connects Washington, DC;
Philadelphia, Pennsylvania; New York,
New York; and up to the Massachusetts/
Rhode Island border. Amtrak provides
the infrastructure for approximately
820,000 trips daily. Amtrak is designing
a program to achieve a SOGR across its
infrastructure assets, meaning that its
assets perform safely, as designed,
within their estimated service lives.
Amtrak Engineering has assessed the
SOGR backlog at $33.3 billion for
infrastructure nationally.
Amtrak’s infrastructure is divided
into four categories: Track; Bridges and
Buildings; Electric Traction; and
Communications and Signals. The three
components of track are rail, ties, and
ballast. These components are
integrated and if any are not in a SOGR,
track geometry suffers, trains no longer
travel at the desired speed, trip time is
extended, and ride quality suffers. Each
of these consequences negatively
impacts revenue, ridership, and
customer experience. Amtrak has set an
aggressive 10-year schedule to eliminate
the SOGR backlog. The equipment that
is the subject of Amtrak’s exemption
request (one (1) Railbound Tunnel
Crane, one (1) Track Laying Machine,
and eight (8) Two-Man Rail Car Movers
with Heavy Duty Crane, Railgear, and
Rail Car Couplers), will be used to
repair and maintain Amtrak’s Track
Infrastructure Assets.
On October 9, 2019, Amtrak requested
an exemption 1 from the National
Railroad Passenger Corporation
(Amtrak) domestic buying preference
requirement (49 U.S.C. 24305(f)) to
purchase certain track maintenance
equipment for its state-of-good-repair
(SOGR) program. Amtrak seeks to
purchase: One tunnel crane, one track
laying machine, and eight two-man rail
car movers with heavy duty crane,
railgear, and rail car couplers (Car
Movers). In its request, Amtrak states
that products meeting its specifications
are not available from a U.S. source. On
March 31, 2020, FRA provided public
notice of Amtrak’s exemption request
and a 20-day opportunity for comment.
FRA also emailed the notice to over
6,000 recipients that requested Buy
America notices through
1 Amtrak’s exemption request is available at:
https://railroads.dot.gov/legislation-regulations/
buy-america/amtrak-buy-america-maintenanceequipment-exemption-request.
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‘‘GovDelivery.’’ For the reasons stated
below, FRA grants a non-availability
exemption to Amtrak.
Buy America Requirement
With certain exceptions, Amtrak’s
Buy America statute requires Amtrak to
buy only ‘‘(A) unmanufactured articles,
material, and supplies mined or
produced in the United States; or (B)
manufactured articles, material, and
supplies manufactured in the United
States substantially from articles,
material, and supplies mined, produced,
or manufactured in the United States.’’
49 U.S.C. 24305(f)(2). Amtrak’s
requirements apply without regard to
the source of funds; if it does not receive
an exemption, it may not acquire goods
that are not consistent with Section
24305(f)(2), even if it does not propose
to use Federal funds. However, FRA
may exempt Amtrak from this
requirement when one of the
exemptions of 49 U.S.C. 24305(f)(4)(A)
or (B) have been met. Section
24305(f)(4)(A)(iii) permits an exemption
when, ‘‘the articles, material, or
supplies, or the articles, material, or
supplies from which they are
manufactured, are not mined, produced,
or manufactured in the United States in
sufficient and reasonably available
commercial quantities and are not of a
satisfactory quality.’’ This is typically
referred to as a ‘‘non-availability
exemption.’’
In addition to the Buy America
statute, FRA’s action is subject to
Executive Order 13788, Buy American
and Hire American (April 18, 2017).
Consistent with Executive Order 13788,
FRA evaluated Amtrak’s request to
determine whether it had sought
maximize the use of goods, products,
and materials produced in the United
States.
Findings
In its letter to FRA, dated October 9,
2019, Amtrak described in detail the
need for equipment that met the
technical specifications for its SOGR
program, the steps taken to identify
domestically-sourced equipment, and
the harm that would result in the
absence of an exemption. FRA evaluated
the information Amtrak provided and
made the following findings.
A. Railbound Tunnel Crane
New York Penn Station (PSNY)
handles over 1,300 train moves carrying
350,000 people on Amtrak, New Jersey
Transit (NJ Transit), and Long Island
Railroad (LIRR) trains every day. The
track structure consists of 87 turnouts,
including 34 slip switches, each
equivalent to four conventional
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turnouts, totaling 219 turnouts. It is
Amtrak’s busiest station on the
Northeast Corridor with 21 tracks fed by
seven tunnels serving Amtrak, NJ
Transit, and LIRR.
Currently, Amtrak is replacing
turnouts in PSNY with a 1994-built
crane which is well-tested under the
extreme production requirements of
PSNY. However, after 25 years, its
reliability has decreased significantly,
and it lacks the remaining components
of the system upon which Amtrak is
relying to replace one turnout per 55hour track possession window.
In May 2019, Amtrak issued a Request
for Proposal (RFP) for one Railbound
Tunnel Crane. In accordance with
Amtrak’s procurement process, the RFP
was posted to the Procurement Portal on
Amtrak’s website. In addition, Amtrak
solicited four companies that
participated in a request for information
process for similar equipment in the
past to participate in the acquisition
event; proposals were received from
three offerors. Amtrak evaluated the
proposals on compliance with the
technical specifications, previous
relevant and successful experience in
providing similar supplies, pricing, and
delivery. The Railbound Tunnel Crane
consists of interrelated units that
function as one complete system.
Amtrak’s Technical Evaluation
Committee evaluated the three
proposals in accordance with the terms
of the RFP and concluded that only one
offeror met the requirements of the
specification. The sole successful
offeror’s tunnel crane does not meet the
Amtrak Buy America requirements.
Amtrak maintains that not having the
Railbound Tunnel Crane would have an
adverse effect on the Penn Station
turnout replacement plan. Over the past
2 years, Amtrak has only been able to
replace 20 of the 219 turnouts, requiring
forty-two 55-hour track outages, which
impacted service to Amtrak, NJ Transit,
and LIRR. According to Amtrak, the
current crane system takes two 55-hour
track outages to replace a turnout;
whereas, the proposed crane system
would permit the replacement of a
turnout during one 55-hour track
outage. According to Amtrak, the
inability to replace more than 10
turnouts per year will increase the
SOGR backlog, and prevent PSNY from
ever achieving a SOGR.
FRA’s engineering team accepts
Amtrak’s assertions that none of the Buy
America-compliant bidders offered
products meeting Amtrak’s
specification, and that not having the
tunnel crane would have an adverse
effect on Penn Station’s SOGR program.
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B. Track Laying Machine
The new Track Laying Machine is
required to address the NEC’s concrete
tie condition. The NEC has three million
concrete ties which are projected to
have a 40 to 50-year life; one million
Santa Fe San Vel concrete ties were
installed between 1978 and 1982 and
are now on the verge of needing
replacement.
Furthermore, during the 1990s,
Amtrak installed 1.4 million Rocla
concrete ties that began failing at an
accelerated rate in 2004, requiring
replacement well before the end of the
projected useful life. Neither the San
Vel replacement nor the Rocla
replacement can be achieved with
Amtrak’s current equipment.
In August 2018, Amtrak issued an
RFP for one Track Laying Machine. In
accordance with Amtrak’s procurement
process, the RFP was posted to the
Procurement Portal on Amtrak’s
website. In addition, Amtrak solicited
bids from three companies that were
known to Amtrak and had previously
supplied similar equipment to Amtrak.
Amtrak received proposals from two
offerors, including the proposed
awardee. The proposals were evaluated
on compliance to the technical
specifications, previous relevant and
successful experience in providing
similar supplies, pricing, and delivery.
After an initial technical review of the
unsuccessful offeror’s proposal, Amtrak
determined that it did not meet
Amtrak’s technical specification.
Amtrak initiated discussions with the
offeror to delineate deficiencies in the
proposal and requested that the offeror
submit a revised proposal that met the
specification requirements.
Amtrak’s Technical Evaluation
Committee thoroughly evaluated the
offeror’s revised proposal and the
proposed awardee’s original proposal
and determined that only the proposed
awardee met the technical specification
requirement. The sole successful
offeror’s Track Laying Machine does not
meet the Amtrak Buy America
requirements. The nine passenger
railroads that rely on NEC infrastructure
to provide rail service to the public all
have a vested interest in ensuring the
infrastructure can meet current and
future service needs. If FRA denies
Amtrak’s request for an exemption, then
Amtrak cannot acquire the Track Laying
Machine. According to Amtrak, the new
Track Laying machine will cut Amtrak’s
footprint of track outage in half. Further,
Amtrak cannot achieve the annual
steady state program for either the San
Vel or Rocla replacement cycle with its
current equipment. As a result, Amtrak
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maintains that not having the Track
Laying Machine will have adverse
effects on Amtrak’s ability to reduce the
SOGR backlog, and ultimately,
negatively impact service and the ability
to grow ridership.
FRA’s engineering team accepts
Amtrak’s assertions that none of the Buy
America-compliant bidders offered
products meeting Amtrak’s
specification, and that not having the
Track Laying Machine would have an
adverse effect on Amtrak’s ability to
meet its SOGR goals.
C. Two-Man Rail Car Mover With Heavy
Duty Crane, Railgear, and Rail Car
Couplers
Amtrak’s market research concluded
that one company was the sole
manufacturer of the Car Movers, which
are utilized extensively by freight
railroads. To create competition, Amtrak
prepared a bidders list that included the
known manufacturer and twelve other
truck manufacturers to ascertain if any
of these manufacturers had entered the
market for Car Movers.
In March 2018, Amtrak issued an RFP
for twelve different styles of trucks that
are required to maintain a SOGR, which
included the Car Movers. To ensure that
there would be competition, Amtrak
solicited thirteen providers of a variety
of trucks, which included the provider
of the Car Movers, that were known to
Amtrak and had previously supplied
similar equipment to Amtrak to
participate in the acquisition event.
Of the proposals Amtrak received,
only two offerors provided a proposal
for the Car Movers. After a thorough
technical review of the proposals, the
Technical Evaluation Committee
determined that only the known
manufacturer’s offering met the
technical specification requirement of a
truck having 50,000 lbs of tractive effort
capability. The sole successful offeror’s
Car Movers do not meet the Amtrak Buy
America requirements. If FRA denies
Amtrak’s request for an exemption, then
Amtrak cannot acquire the Car Movers.
Amtrak maintains that not having the
Car Movers will prevent Amtrak from
achieving a SOGR.
FRA’s engineering team accepts
Amtrak’s assertions that none of the Buy
America-compliant bidders offered
products meeting Amtrak’s
specification, and that not having the
Car Movers would have an adverse
effect on Amtrak’s ability to meet its
SOGR goals.
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39663
D. Summary of Information That
Amtrak Provided to FRA on Efforts To
Identify Compliant Products and
Maximize Domestic Content
As described above, although Amtrak
did not identify compliant products, it
provided information to FRA supporting
its exemption request, including:
• Information describing the domestic
content characteristics of the
manufactured products needed,
including the sources and assembly
locations of the products offered by all
bidders;
• Information supporting the
technical necessity of these specific
products for Amtrak’s SOGR program,
including details supporting Amtrak’s
determination that unsuccessful
bidders’ products did not satisfy
technical specifications; and
• Information describing the effects of
denying the request, including the
relationship between these products, the
SOGR backlog, and Amtrak’s plan to
eliminate that backlog.
On the basis of this information, FRA
concludes that Amtrak’s procurement
was consistent with the policy in
Executive Order 13788 to maximize
‘‘the use of goods, products, and
materials produced in the United
States.’’ FRA further concludes that
denying the requested exemption would
not increase the use of goods, products,
and materials produced in the United
States.
Determination Under 49 U.S.C. 24305
FRA has determined an exemption is
appropriate under 49 U.S.C.
24305(f)(4)(A)(iii) for the track
maintenance equipment because
domestically produced equipment is not
currently ‘‘manufactured in the United
States in sufficient and reasonably
available commercial quantities and are
not of a satisfactory quality.’’ FRA bases
this determination on the following:
• Amtrak competitively bid its
requirements and found that there are
no domestic solutions meeting Amtrak’s
specifications;
• FRA’s engineering team concurs
with Amtrak’s specifications, due to the
unique operating environment on the
NEC. FRA also concurs with Amtrak’s
selection rationale and the effect on
Amtrak’s SOGR if it cannot purchase
this equipment; and
• On March 31, 2020, FRA provided
public notice of Amtrak’s exemption
request and a 20-day opportunity for
comment. FRA also emailed the notice
to over 6,000 recipients that requested
Buy America notices through
‘‘GovDelivery.’’ FRA received 2
comments. However, the commenters
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did not provide any information about
domestic sources for Amtrak’s
specifications.
This exemption applies only to
Amtrak’s acquisition of the equipment
described. FRA is providing notice of
this finding and an opportunity for
public comment, after which, this
exemption will take effect. Questions
about this Notice can be directed to,
John Johnson, Attorney-Advisor, at
John.Johnson@dot.gov or (202) 493–
0078.
Issued in Washington, DC.
Quintin Kendall,
Deputy Administrator.
[FR Doc. 2020–14155 Filed 6–30–20; 8:45 am]
BILLING CODE 4910–06–P
DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration
Notice of Funding Opportunity for
Magnetic Levitation Deployment
Projects
Federal Railroad
Administration (FRA), Department of
Transportation (DOT).
ACTION: Notice of Funding Opportunity
(NOFO or notice).
AGENCY:
This notice details the
application requirements and
procedures to obtain grant funding for
eligible projects under the Magnetic
Levitation Technology Deployment
Program (Maglev Grants Program). This
notice solicits applications for
$2,000,000 in Maglev Grants Program
funds. The opportunity described in this
notice is made available under Catalog
of Federal Domestic Assistance (CFDA)
number 20.318, ‘‘Maglev Project
Selection Program—SAFETEA–LU.’’
DATES: Applications for funding under
this solicitation are due no later than 5
p.m. ET July 31, 2020. Applications for
funding, or supplemental material in
support of an application, received after
5 p.m. ET on July 31, 2020 will not be
considered for funding. Incomplete
applications will not be considered for
funding. See Section D of this notice for
additional information on the
application process.
ADDRESSES: Applications must be
submitted via www.Grants.gov. Only
applicants who comply with all
submission requirements described in
this notice and submit applications
through www.Grants.gov will be eligible
for award. For any supporting
application materials that an applicant
is unable to submit via www.Grants.gov,
an applicant may submit an original and
two (2) copies to Ruthie Americus,
SUMMARY:
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Office of Policy and Planning, Federal
Railroad Administration, 1200 New
Jersey Avenue SE, Room W36–412,
Washington, DC 20590. However, due to
delays caused by enhanced screening of
mail delivered via the U.S. Postal
Service, applicants are advised to use
other means of conveyance (such as
courier service) to assure timely receipt
of materials.
FOR FURTHER INFORMATION CONTACT: For
further information related to this
notice, please contact Ruthie Americus,
Office of Policy and Planning, Federal
Railroad Administration, 1200 New
Jersey Avenue SE, Room W36–403,
Washington, DC 20590; email:
ruthie.americus@dot.gov; phone: 202–
493–0431.
SUPPLEMENTARY INFORMATION: Notice to
applicants: FRA recommends that
applicants read this notice in its entirety
prior to preparing application materials.
The definitions of key terms used
throughout the NOFO are provided in
Section 2(A). These key terms are
capitalized throughout the NOFO. There
are several administrative prerequisites
and specific eligibility requirements
described herein that applicants must
comply with to submit an application.
Additionally, applicants should note
that the required Project Narrative
component of the application package
may not exceed 25 pages in length.
Table of Contents
A. Program Description
B. Federal Award Information
C. Eligibility Information
D. Application and Submission Information
E. Application Review Information
F. Federal Award Administration
Information
G. Federal Awarding Agency Contacts
H. Other Information
including eligible project costs and the
cost of stations, vehicles and equipment.
b. ‘‘Magnetic Levitation’’ or ‘‘Maglev’’
means transportation systems
employing magnetic levitation that
would be capable of safe use by the
public at a speed in excess of 240 miles
per hour.
c. ‘‘National Environmental Policy
Act (NEPA)’’ is a Federal law that
requires Federal agencies to analyze the
environmental impacts of a proposed
action, in consultation with appropriate
Federal, State, and local authorities, and
with the public. The NEPA class of
action depends on the nature of the
proposed action, its complexity, and the
potential impacts. For purposes of this
NOFO, NEPA also includes all related
Federal laws and regulations including:
the Clean Air Act, section 4(f) of the
Department of Transportation Act,
section 7 of the Endangered Species Act,
and section 106 of the National Historic
Preservation Act. Additional
information regarding FRA’s
environmental processes and
requirements are located at https://
www.fra.dot.gov/environment.
d. ‘‘State’’ has the meaning such term
has under 23 U.S.C. 101(a).
B. Federal Award Information
1. Available Award Amount
The total funding available for awards
under this NOFO is $2,000,000. Should
additional Maglev funds become
available after the release of this NOFO,
FRA may elect to award such additional
funds to applications received under
this NOFO.
2. Award Size
The purpose of this notice is to solicit
applications for grants for eligible
capital project costs and preconstruction
planning activities for the deployment
of magnetic levitation transportation
projects, authorized under and funded
in the Further Consolidated
Appropriations Act, 2020, Div H, Tit I,
Public Law 116–94 (2020
Appropriation), consistent with the
language in section 1307(a) through (c)
of Public Law 109–59 (SAFETEA–LU),
as amended by section 102 of Public
Law 110–244 (Technical Corrections
Act) (23 U.S.C. 322 note).
There are no predetermined minimum
or maximum dollar thresholds for
awards. FRA may not be able to award
grants to all eligible applications, or
even those applications that meet or
exceed the stated evaluation criteria (see
Section E, Application Review
Information).
Projects may require more funding
than is available. FRA encourages
applicants to propose projects or
components of projects that have
operational independence that can be
completed and implemented with the
level of funding available together with
other sources.
FRA strongly encourages applicants to
identify and include State, local, public,
or private funding or financing to
support the proposed project to
maximize competitiveness.
2. Definitions of Key Terms
3. Award Type
a. ‘‘Full Project Cost’’ means the total
capital costs of a Maglev project
FRA will make awards for projects
selected under this notice through grant
A. Program Description
1. Overview
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]]>Agencies
[Federal Register Volume 85, Number 127 (Wednesday, July 1, 2020)]
[Notices]
[Pages 39661-39664]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-14155]
=======================================================================
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DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration
[Docket No. FRA-2012-0033]
Notice of Intent To Grant a Buy America Exemption to Amtrak To
Purchase Certain Non-Domestic Track Maintenance Equipment
AGENCY: Federal Railroad Administration (FRA), United States Department
of Transportation (DOT).
ACTION: Notice of intent to grant Amtrak Buy America exemption.
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SUMMARY: FRA is issuing this notice to provide information to the
public regarding its finding that it is appropriate to grant the
National Railroad Passenger Corporation (Amtrak) an exemption from
Amtrak's Buy America requirement for procurement of the following non-
domestic track maintenance equipment as part of its state-of-good-
repair (SOGR) program: One tunnel crane; one track laying machine; and
eight two-man rail car movers.
DATES: Written comments on FRA's determination to grant a Buy America
exemption to Amtrak should be provided to FRA on or before July 8,
2020.
ADDRESSES: Please submit your comments to the U.S. Government
electronic docket site at https://www.regulations.gov, in docket number:
FRA-2012-0033.
Note: All submissions received, including any personal information
therein, will be posted without change or alteration to https://www.regulations.gov. For more information, you may review DOT's
complete Privacy Act Statement published in the Federal Register on
April 11, 2000 (65 FR 19477).
FOR FURTHER INFORMATION CONTACT: Mr. John Johnson, Attorney-Advisor,
FRA Office of the Chief Counsel, 1200 New Jersey Avenue SE, Washington,
DC 20590, (202) 493-0078, [email protected].
SUPPLEMENTARY INFORMATION: The purpose of this notice is to provide
information to the public regarding FRA's finding that it is
appropriate to grant Amtrak an exemption from Amtrak's Buy America
requirement, pursuant to 49 U.S.C. 24305(f)(4)(A)(iii), to purchase the
following non-domestic equipment as part of its SOGR program: Railbound
Tunnel Crane; Track Laying Machine; and eight Two-Man Rail Car Movers
with Heavy Duty Crane, Railgear, and Rail Car Couplers.
[[Page 39662]]
Background
Amtrak is the Nation's Federally chartered intercity passenger rail
operator and rail infrastructure provider. Among its infrastructure
assets, Amtrak owns 1,169 track miles of infrastructure on the
Northeast Corridor (NEC), which connects Washington, DC; Philadelphia,
Pennsylvania; New York, New York; and up to the Massachusetts/Rhode
Island border. Amtrak provides the infrastructure for approximately
820,000 trips daily. Amtrak is designing a program to achieve a SOGR
across its infrastructure assets, meaning that its assets perform
safely, as designed, within their estimated service lives. Amtrak
Engineering has assessed the SOGR backlog at $33.3 billion for
infrastructure nationally.
Amtrak's infrastructure is divided into four categories: Track;
Bridges and Buildings; Electric Traction; and Communications and
Signals. The three components of track are rail, ties, and ballast.
These components are integrated and if any are not in a SOGR, track
geometry suffers, trains no longer travel at the desired speed, trip
time is extended, and ride quality suffers. Each of these consequences
negatively impacts revenue, ridership, and customer experience. Amtrak
has set an aggressive 10-year schedule to eliminate the SOGR backlog.
The equipment that is the subject of Amtrak's exemption request (one
(1) Railbound Tunnel Crane, one (1) Track Laying Machine, and eight (8)
Two-Man Rail Car Movers with Heavy Duty Crane, Railgear, and Rail Car
Couplers), will be used to repair and maintain Amtrak's Track
Infrastructure Assets.
On October 9, 2019, Amtrak requested an exemption \1\ from the
National Railroad Passenger Corporation (Amtrak) domestic buying
preference requirement (49 U.S.C. 24305(f)) to purchase certain track
maintenance equipment for its state-of-good-repair (SOGR) program.
Amtrak seeks to purchase: One tunnel crane, one track laying machine,
and eight two-man rail car movers with heavy duty crane, railgear, and
rail car couplers (Car Movers). In its request, Amtrak states that
products meeting its specifications are not available from a U.S.
source. On March 31, 2020, FRA provided public notice of Amtrak's
exemption request and a 20-day opportunity for comment. FRA also
emailed the notice to over 6,000 recipients that requested Buy America
notices through ``GovDelivery.'' For the reasons stated below, FRA
grants a non-availability exemption to Amtrak.
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\1\ Amtrak's exemption request is available at: https://railroads.dot.gov/legislation-regulations/buy-america/amtrak-buy-america-maintenance-equipment-exemption-request.
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Buy America Requirement
With certain exceptions, Amtrak's Buy America statute requires
Amtrak to buy only ``(A) unmanufactured articles, material, and
supplies mined or produced in the United States; or (B) manufactured
articles, material, and supplies manufactured in the United States
substantially from articles, material, and supplies mined, produced, or
manufactured in the United States.'' 49 U.S.C. 24305(f)(2). Amtrak's
requirements apply without regard to the source of funds; if it does
not receive an exemption, it may not acquire goods that are not
consistent with Section 24305(f)(2), even if it does not propose to use
Federal funds. However, FRA may exempt Amtrak from this requirement
when one of the exemptions of 49 U.S.C. 24305(f)(4)(A) or (B) have been
met. Section 24305(f)(4)(A)(iii) permits an exemption when, ``the
articles, material, or supplies, or the articles, material, or supplies
from which they are manufactured, are not mined, produced, or
manufactured in the United States in sufficient and reasonably
available commercial quantities and are not of a satisfactory
quality.'' This is typically referred to as a ``non-availability
exemption.''
In addition to the Buy America statute, FRA's action is subject to
Executive Order 13788, Buy American and Hire American (April 18, 2017).
Consistent with Executive Order 13788, FRA evaluated Amtrak's request
to determine whether it had sought maximize the use of goods, products,
and materials produced in the United States.
Findings
In its letter to FRA, dated October 9, 2019, Amtrak described in
detail the need for equipment that met the technical specifications for
its SOGR program, the steps taken to identify domestically-sourced
equipment, and the harm that would result in the absence of an
exemption. FRA evaluated the information Amtrak provided and made the
following findings.
A. Railbound Tunnel Crane
New York Penn Station (PSNY) handles over 1,300 train moves
carrying 350,000 people on Amtrak, New Jersey Transit (NJ Transit), and
Long Island Railroad (LIRR) trains every day. The track structure
consists of 87 turnouts, including 34 slip switches, each equivalent to
four conventional turnouts, totaling 219 turnouts. It is Amtrak's
busiest station on the Northeast Corridor with 21 tracks fed by seven
tunnels serving Amtrak, NJ Transit, and LIRR.
Currently, Amtrak is replacing turnouts in PSNY with a 1994-built
crane which is well-tested under the extreme production requirements of
PSNY. However, after 25 years, its reliability has decreased
significantly, and it lacks the remaining components of the system upon
which Amtrak is relying to replace one turnout per 55-hour track
possession window.
In May 2019, Amtrak issued a Request for Proposal (RFP) for one
Railbound Tunnel Crane. In accordance with Amtrak's procurement
process, the RFP was posted to the Procurement Portal on Amtrak's
website. In addition, Amtrak solicited four companies that participated
in a request for information process for similar equipment in the past
to participate in the acquisition event; proposals were received from
three offerors. Amtrak evaluated the proposals on compliance with the
technical specifications, previous relevant and successful experience
in providing similar supplies, pricing, and delivery. The Railbound
Tunnel Crane consists of interrelated units that function as one
complete system. Amtrak's Technical Evaluation Committee evaluated the
three proposals in accordance with the terms of the RFP and concluded
that only one offeror met the requirements of the specification. The
sole successful offeror's tunnel crane does not meet the Amtrak Buy
America requirements.
Amtrak maintains that not having the Railbound Tunnel Crane would
have an adverse effect on the Penn Station turnout replacement plan.
Over the past 2 years, Amtrak has only been able to replace 20 of the
219 turnouts, requiring forty-two 55-hour track outages, which impacted
service to Amtrak, NJ Transit, and LIRR. According to Amtrak, the
current crane system takes two 55-hour track outages to replace a
turnout; whereas, the proposed crane system would permit the
replacement of a turnout during one 55-hour track outage. According to
Amtrak, the inability to replace more than 10 turnouts per year will
increase the SOGR backlog, and prevent PSNY from ever achieving a SOGR.
FRA's engineering team accepts Amtrak's assertions that none of the
Buy America-compliant bidders offered products meeting Amtrak's
specification, and that not having the tunnel crane would have an
adverse effect on Penn Station's SOGR program.
[[Page 39663]]
B. Track Laying Machine
The new Track Laying Machine is required to address the NEC's
concrete tie condition. The NEC has three million concrete ties which
are projected to have a 40 to 50-year life; one million Santa Fe San
Vel concrete ties were installed between 1978 and 1982 and are now on
the verge of needing replacement.
Furthermore, during the 1990s, Amtrak installed 1.4 million Rocla
concrete ties that began failing at an accelerated rate in 2004,
requiring replacement well before the end of the projected useful life.
Neither the San Vel replacement nor the Rocla replacement can be
achieved with Amtrak's current equipment.
In August 2018, Amtrak issued an RFP for one Track Laying Machine.
In accordance with Amtrak's procurement process, the RFP was posted to
the Procurement Portal on Amtrak's website. In addition, Amtrak
solicited bids from three companies that were known to Amtrak and had
previously supplied similar equipment to Amtrak.
Amtrak received proposals from two offerors, including the proposed
awardee. The proposals were evaluated on compliance to the technical
specifications, previous relevant and successful experience in
providing similar supplies, pricing, and delivery. After an initial
technical review of the unsuccessful offeror's proposal, Amtrak
determined that it did not meet Amtrak's technical specification.
Amtrak initiated discussions with the offeror to delineate deficiencies
in the proposal and requested that the offeror submit a revised
proposal that met the specification requirements.
Amtrak's Technical Evaluation Committee thoroughly evaluated the
offeror's revised proposal and the proposed awardee's original proposal
and determined that only the proposed awardee met the technical
specification requirement. The sole successful offeror's Track Laying
Machine does not meet the Amtrak Buy America requirements. The nine
passenger railroads that rely on NEC infrastructure to provide rail
service to the public all have a vested interest in ensuring the
infrastructure can meet current and future service needs. If FRA denies
Amtrak's request for an exemption, then Amtrak cannot acquire the Track
Laying Machine. According to Amtrak, the new Track Laying machine will
cut Amtrak's footprint of track outage in half. Further, Amtrak cannot
achieve the annual steady state program for either the San Vel or Rocla
replacement cycle with its current equipment. As a result, Amtrak
maintains that not having the Track Laying Machine will have adverse
effects on Amtrak's ability to reduce the SOGR backlog, and ultimately,
negatively impact service and the ability to grow ridership.
FRA's engineering team accepts Amtrak's assertions that none of the
Buy America-compliant bidders offered products meeting Amtrak's
specification, and that not having the Track Laying Machine would have
an adverse effect on Amtrak's ability to meet its SOGR goals.
C. Two-Man Rail Car Mover With Heavy Duty Crane, Railgear, and Rail Car
Couplers
Amtrak's market research concluded that one company was the sole
manufacturer of the Car Movers, which are utilized extensively by
freight railroads. To create competition, Amtrak prepared a bidders
list that included the known manufacturer and twelve other truck
manufacturers to ascertain if any of these manufacturers had entered
the market for Car Movers.
In March 2018, Amtrak issued an RFP for twelve different styles of
trucks that are required to maintain a SOGR, which included the Car
Movers. To ensure that there would be competition, Amtrak solicited
thirteen providers of a variety of trucks, which included the provider
of the Car Movers, that were known to Amtrak and had previously
supplied similar equipment to Amtrak to participate in the acquisition
event.
Of the proposals Amtrak received, only two offerors provided a
proposal for the Car Movers. After a thorough technical review of the
proposals, the Technical Evaluation Committee determined that only the
known manufacturer's offering met the technical specification
requirement of a truck having 50,000 lbs of tractive effort capability.
The sole successful offeror's Car Movers do not meet the Amtrak Buy
America requirements. If FRA denies Amtrak's request for an exemption,
then Amtrak cannot acquire the Car Movers. Amtrak maintains that not
having the Car Movers will prevent Amtrak from achieving a SOGR.
FRA's engineering team accepts Amtrak's assertions that none of the
Buy America-compliant bidders offered products meeting Amtrak's
specification, and that not having the Car Movers would have an adverse
effect on Amtrak's ability to meet its SOGR goals.
D. Summary of Information That Amtrak Provided to FRA on Efforts To
Identify Compliant Products and Maximize Domestic Content
As described above, although Amtrak did not identify compliant
products, it provided information to FRA supporting its exemption
request, including:
Information describing the domestic content
characteristics of the manufactured products needed, including the
sources and assembly locations of the products offered by all bidders;
Information supporting the technical necessity of these
specific products for Amtrak's SOGR program, including details
supporting Amtrak's determination that unsuccessful bidders' products
did not satisfy technical specifications; and
Information describing the effects of denying the request,
including the relationship between these products, the SOGR backlog,
and Amtrak's plan to eliminate that backlog.
On the basis of this information, FRA concludes that Amtrak's
procurement was consistent with the policy in Executive Order 13788 to
maximize ``the use of goods, products, and materials produced in the
United States.'' FRA further concludes that denying the requested
exemption would not increase the use of goods, products, and materials
produced in the United States.
Determination Under 49 U.S.C. 24305
FRA has determined an exemption is appropriate under 49 U.S.C.
24305(f)(4)(A)(iii) for the track maintenance equipment because
domestically produced equipment is not currently ``manufactured in the
United States in sufficient and reasonably available commercial
quantities and are not of a satisfactory quality.'' FRA bases this
determination on the following:
Amtrak competitively bid its requirements and found that
there are no domestic solutions meeting Amtrak's specifications;
FRA's engineering team concurs with Amtrak's
specifications, due to the unique operating environment on the NEC. FRA
also concurs with Amtrak's selection rationale and the effect on
Amtrak's SOGR if it cannot purchase this equipment; and
On March 31, 2020, FRA provided public notice of Amtrak's
exemption request and a 20-day opportunity for comment. FRA also
emailed the notice to over 6,000 recipients that requested Buy America
notices through ``GovDelivery.'' FRA received 2 comments. However, the
commenters
[[Page 39664]]
did not provide any information about domestic sources for Amtrak's
specifications.
This exemption applies only to Amtrak's acquisition of the
equipment described. FRA is providing notice of this finding and an
opportunity for public comment, after which, this exemption will take
effect. Questions about this Notice can be directed to, John Johnson,
Attorney-Advisor, at [email protected] or (202) 493-0078.
Issued in Washington, DC.
Quintin Kendall,
Deputy Administrator.
[FR Doc. 2020-14155 Filed 6-30-20; 8:45 am]
BILLING CODE 4910-06-P
