| | CASE BRIEF: Assistance With U.S. “Buy America” Provisions PROBLEM: Buy America rules require that buses purchased with Federal
Funds provided by the Department of Transportation’s Federal Transit Administration
(FTA) must conform to the FTA’s criteria for Buy America (% of U.S. content and final
assembly in the U.S.). In the case of this client, FTA believed that the company was not
complying with the “final assembly” requirement since certain assembly functions
were being performed outside the U.S. ACTIONS: In support of the client, GMD Solutions undertook the
following activities: Identified key personnel in the Department of Transportation, and specifically the FTA, who had decision-making authority with regard to Buy America issues. Participated in developing a preliminary briefing and subsequent presentations to senior FTA personnel. Developed a legislative strategy and communications plan for use in the event the FTA persisted in its opinion that the client was in violation of Buy America. Arranged and participated in initial meetings/briefings of key congressional members and staff. Assisted in developing and quantifying implications and potential penalties (to both the client and customers/municipalities) if the client continued to be found in non-compliance. Assisted the client in planning for modification of final assembly functions so there would be no question as to compliance with Buy America. Assisted in preparing the final report to the FTA indicating that the client maintained they were in compliance with Buy America, but to eliminate any doubt, offered to transfer additional final assembly processes to the U.S.
RESULTS: Working
with the client, GMD Solutions’ recommendations resulted in: The FTA concurred with the client’s explanations and justification of past compliance as well as accepted future final assembly initiatives, designed to reinforce full compliance with Buy America. The FTA declined to levy any financial penalties, including return of previously awarded FTA funding. Existing deliveries to six major municipalities and future contracts with an additional eight municipalities worth several hundred million dollars to the client were allowed to proceed uninterrupted.
Copyright © 2001 GMD Solutions, Inc.
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