Buy America requirements raised to 70%

02 Sep 2016

USA: The Federal Transit Administration issued final Buy America policy guidance on September 1. This sets out the timescale for implementing a phased increase in domestic content requirements for rolling stock procurement to exceed 70% by 2020. The increase from the current level of more than 60% by value was specified in the Fixing America’s Surface Transportation Act signed by President Barack Obama on December 4 2015. It is the first increase of the proportion since 1991.

The Buy America rules apply to the procurement of vehicles for federally funded transport projects. For rail vehicles this includes train control, communication and traction equipment.

Using the scheduled delivery date of the first vehicle, FTA now specifies domestic content of more than 60% by value for fiscal years 2016 and 2017, 65% for fiscal years 2018 and 2019, and 70% for fiscal year 2020. There is a waiver for contracts that were already underway when the FAST Act was enacted by Congress in October 2015.

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