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Interim Regional Policy and GuidanceFederal Aviation Administration Memorandum Date: April 15, 2009 To: Denver Airports District Office, DEN -ADO Helena Airports District Office, HLN-ADO Seattle Airports District Office, SEA -ADO From: Manager, Safety and Standards Branch, ANM-620 J Reply To P. Johnson (425) 227-2622 Attn Of: Subject: ACTION: Interim Regional Policy and Guidance: Planning Guidance, no. 09-02; Airport Improvement Program (AIP) "Buy American" Requirement in Construction and Equipment Grants Purpose The purpose of this memo is to clarify Buy America Act requirements for Airport Improvement Program (AIP) and the American Recovery and Reinvestment Act grants. Reference Documents There are many factors but to date little clear guidance which can be considered in determining how the precepts of the `Buy American" Act may be applied to construction and equipment purchases for AIP projects. This guidance promotes consistency in this Region in the selection and application of such factors. Relevant national guidance/policy includes, but is not limited to: • Title 49 U.S. Code, Section 50101, Buying goods produced in the United States • Order 5100.38C, Airport Improvement Program Handbook • The American Recovery and Reinvestment Act (49 United States Code (USC), Sect. 50101, et seq.) % The attachment to this memo includes clarification on the use of the above guidance sources, as well as excerpts from those documents. Applicability Each Airport District Office (ADO) should use this guidance to assist in determining if waivers to the Buy America Act are required. �i�111IL�1►� 1;>y►M'Il FAA special conditions for construction projects contain the following statement: Unless otherwise approved by the FAA, it will not acquire or permit any contractor or subcontractor to acquire any steel* or manufactured products produced outside the United States to be used for any project for airport development or noise compatibility for which funds are provided under this grant. The sponsor will include in every contract a provision implementing this condition. The ADO may waive the requirement if a sponsor submits a written request (Exhibit A) including supporting documentation, demonstrating that one of the following criteria applies: 1. For manufactured products procured under the AIP Program: — the cost of components and subcomponents produced in the United States is more than 60 percent of the cost of all components of the facility or equipment; and — final assembly of the facility or equipment has occurred in the United States; or 2. Applying this provision would increase the cost of the overall project by more than 25 percent. When applying waiver requirements we must consider what can be a project in itself. As an example, a grant for a runway rehabilitation project could include a new PAPI, upgraded runway light system, signs, and storm drainage system. Each of these systems could be considered a project in itself and the airport sponsor will need to evaluate each system for conformance with the Buy America Act. Examples of projects we would evaluate as a project in itself include: a) Pavement construction or reconstruction which includes base material pavement surface, sub -drains, stabilization fabric, joint sealant, barricades, etc. b) Navigational aid installations such as PAPI, REIL, Approach lights, Localizer, and Glide Slopes. c) Pavement lighting systems or sign systems. d) Fencing e) Equipment such as sweepers, snow removal, fire trucks, and lighted X signs. f) Terminal Building, SRE Buildings, Firefighting Stations Waivers must be submitted for all projects that have less than 100% of the materials made in the United States. Waivers may be accepted if the product is assembled in the United States and if it is made with more than 60% US goods or if applying this provision would increase the cost of the overall project by more than 25 percent. A copy of all waivers for. projects funded under the American Recovery and Reinvestment Act must be forwarded to ANION-622 for publication in the Federal Register. * Steel requirements are addressed under the Aviation Safety and Capacity Expansion Act of 1990 as currently covered in the AIP Special Provisions for Construction Contracts. These provisions are included in our contract documents. Listed on Exhibit B, are the current nationwide waivers to the Buy America Act and FAA certified equipment manufactures that have submitted a cost and origin evaluation to the FAA Policy and Legislation Branch for approval. Exhibit A (Request for Waiver of Buy American Requirement) Airport Sponsor Official Representative [ Project Name Indicate reason(s) for waiver request. Supporting documentation must be provided for each reason indicated. I— A. For AIP grant -funded projects other than ground transportation demonstration projects: — the cost of components and subcomponents produced in the United States is more than 60 percent of the cost of all components of the facility or equipment; and — final assembly of the facility or equipment has occurred in the United States. I— B. Applying this provision would increase the cost of the overall project by more than 25 percent. Signature I hereby request a waiver of the Buy American requirements for the reasons) indicated above. All documentation provided in support of this request is true and complete to the best of my knowledge. Date ADO Recommendation i— Recommended T` Not recommended ADO Project Manager Signature Waiver Determination r- Approved i— Denied I— Further information required ADO Manager Signature Date April 15, 2009 Cement andcement and above manufactured by Vaisala Articles listed in Federal AcRuisition Regulation Part 25.104, Amerace Isolation Transformers as listed: L-830 Isolation Transformers, 60 Hz (FAA Advisory Circular 150/5345-47B) TypeWattsAmperes Primary/Secondary L-830-230/4520/6.6 L-830-83006.6/20 L-830-930020/20 L-830-125006.6/20 L-830-1350020/20 L-830-145006.6/6.6 L-830-1550020/6.6 L-83 0-1610/25 6.6/6.6 L-8 3 0-1720/256.6/6.6 L-830-1915020/6.6 L-831 Isolation Transformers, 50 Hz (FAA Advisory Circular 150/5345-47B) Type Watts Amperes Primary/Secondary L-831-230/4520/6.6 L-831-510020/6.6 L-831-83006.6/20 L-831-930020/20 L-831-115006.6/20 L-831-145006.6/6.6 L-831-1550020/6.6 FAA certified equipment manufactures that have submitted a cost and origin evaluation to the FAA Policy and Legislation specificapproval and not shown on the Nationwide Waivers at this time. These qualify for a project •r 1. Cooper Crouse -Hinds equipment listed on FAA approved equipment list: AC 150/5345-53C