Buy America Program and How it Relates to the Transit Industry

June 28, 2017

Buy America Program and How it Relates to the Transit Industry

ACDi had the pleasure of attending a conference recently—Buy America Transit Supply Chain Connectivity Forum—in Baltimore. It was jointly hosted by the Manufacturing Extension Partnership (NIST) and the U.S. Department of Transportation’s Federal Transit Administration.

The afternoon forum contained invaluable information about Buy America requirements, resources available to both transit organizations and the manufacturing companies that are part of their supply chain. We heard presentations from four OEMs—Knorr Brakes, Proterra, United Rail and Kiepe—about their initiatives and programs, as well as their commitment to Buy America.

We thought it was important to share some important facts about the Buy America program and how it relates to the transit industry.

The Buy America program is committed to growing manufacturing in America with an emphasis on small- and medium-sized manufacturers’ competitiveness
When purchasing rolling stock, which includes train control, communication, traction power equipment, and rolling stock prototypes, the cost of the components and subcomponents produced in the U.S. must be more than:
1. 60% for fiscal year 2016 and fiscal year 2017
2. 65% for fiscal year 2018 and fiscal year 2019
3. 70% for fiscal year 2020 and thereafter
The FTA’s rolling stock procurements say the Buy America provisions don’t apply to the procurement of buses and other rolling stock (including train control, communication, and traction power equipment), if the cost of components produced in the U.S. is more than 60% of the cost of all components and final assembly takes place in the U.S.
Final assembly for rolling stock must also happen in the U.S. and is subject to the pre-award and post-delivery Buy America audit requirements set forth in 49 U.S.C. § 5323(m) and 49 CFR part 663

As an electronics manufacturing services provider, ACDi clearly strongly supports the Buy America provision and is looking forward to working with OEMs in the transit industry to fulfill their Buy America initiatives.

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