Rolling stock procurements.
The provisions of § 661.5 do not 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 United States is more than 60 percent of the cost of all components and final assembly takes place in the United States.
The domestic content requirements in paragraph (a) of this section also apply to the domestic content requirements for components set forth in paragraphs (i), (j), and (l) of this section.
A component is any article, material, or supply, whether manufactured or unmanufactured, that is directly incorporated into an end product at the final assembly location.
A component may be manufactured at the final assembly location if the manufacturing process to produce the component is an activity separate and distinct from the final assembly of the end product.
A component is considered to be manufactured if there are sufficient activities taking place to advance the value or improve the condition of the subcomponents of that component; that is, if the subcomponents have been substantially transformed or merged into a new and functionally different article.
Except as provided in paragraph (k) of this section, a subcomponent is any article, material, or supply, whether manufactured or unmanufactured, that is one step removed from a component (as defined in paragraph (c) of this section) in the manufacturing process and that is incorporated directly into a component.
For a component to be of domestic origin, more that 60 percent of the subcomponents of that component, by cost, must be of domestic origin, and the manufacture of the component must take place in the United States. If, under the terms of this part, a component is determined to be of domestic origin, its entire cost may be used in calculating the cost of domestic content of an end product.
A subcomponent is of domestic origin if it is manufactured in the United States.
If a subcomponent manufactured in the United States is exported for inclusion in a component that is manufactured outside the United States and it receives tariff exemptions under the procedures set forth in 19 CFR 10.11 through 10.24, the subcomponent retains its domestic identity and can be included in the calculation of the domestic content of an end product even if such a subcomponent represents less than 60 percent of the cost of a particular component.
If a subcomponent manufactured in the United States is exported for inclusion in a component manufactured outside the United States and it does not receive tariff exemption under the procedures set forth in 19 CFR 10.11 through 10.24, the subcomponent loses its domestic identity and cannot be included in the calculation of the domestic content of an end product.
Raw materials produced in the United States and then exported for incorporation into a component are not considered to be a subcomponent for the purpose of calculating domestic content. The value of such raw materials is to be included in the cost of the foreign component.
If a component is manufactured in the United States, but contains less than 60 percent domestic subcomponents, by cost, the cost of the domestic subcomponents and the cost of manufacturing the component may be included in the calculation of the domestic content of the end product.
For purposes of this section, except as provided in paragraph (o) of this section:
The cost of a component or a subcomponent is the price that a bidder or offeror must pay to a subcontractor or supplier for that component or subcomponent. Transportation costs to the final assembly location must be included in calculating the cost of foreign components and subcomponents.
If a component or subcomponent is manufactured by the bidder or offeror, the cost of the component is the cost of labor and materials incorporated into the component or subcomponent, an allowance for profit, and the administrative and overhead costs attributable to that component or subcomponent under normal accounting principles.
The cost of a component of foreign origin is set using the foreign exchange rate at the time the bidder or offeror executes the appropriate Buy America certificate.
The cost of a subcomponent that retains its domestic identity consistent with paragraph (j) of this section shall be the cost of the subcomponent when last purchased, f.o.b. United States port of exportation or point of border crossing as set out in the invoice and entry papers or, if no purchase was made, the value of the subcomponent at the time of its shipment for exportation, f.o.b. United States port of exportation or point of border crossing as set out in the invoice and entry papers.
In accordance with 49 U.S.C. 5323(j), labor costs involved in final assembly shall not be included in calculating component costs.
The actual cost, not the bid price, of a component is to be considered in calculating domestic content.
Final assembly is the creation of the end product from individual elements brought together for that purpose through application of manufacturing processes. If a system is being procured as the end product by the grantee, the installation of the system qualifies as final assembly.
Train control equipment includes, but is not limited to, the following equipment:
Mimic board in central control
Station (way side) block control relay cabinets
Terminal dispatcher machines
Relay rack bungalows
Central computer control
Trip Stop Equipment;
Speed Measuring Devices;
Communication Based Train Control (CBTC).
Communication equipment includes, but is not limited to, the following equipment:
Space station transmitter and receivers
Vehicular and hand-held radios
PABX telephone switching equipment
PABX telephone instruments
Public address amplifiers
Public address speakers
Cable transmission system cable
Cable transmission system multiplex equipment
Communication console at central control
Uninterruptible power supply inverters/rectifiers
Uninterruptible power supply batteries
Data transmission system central processors
Data transmission system remote terminals
Line printers for data transmission system
Communication system monitor test panel
Security console at central control
Wireless Telemetry Equipment;
Passenger Information Displays;
Communications Control Units;
Communication Control Heads;
Wireless Intercar Transceivers;
Screen Displays such as LEDs and LCDs for communication systems;
Fiber-optic transmission equipment;
Fiber-optic transmission equipment;
Frame or cell based multiplexing equipment; 13) Communication system network elements.
Traction power equipment includes, but is not limited to the following:
Primary AC switch gear
Primary AC transformer rectifiers
Traction power console and CRT display system at central control
Bus ducts with buses (AC and DC)
Traction power rectifier assemblies
Distribution panels (AC and DC)
Facility step-down transformers
Motor control centers (facility use only)
Supervisory control panel
Low voltage facility distribution switch board
Power rail insulators
Power cables (AC and DC)
Instrumentation for traction power equipment
Connectors, tensioners, and insulators for overhead power wire systems
Negative drainage boards
Propulsion gear boxes
Third rail pick-up equipment
Propulsion Control Systems;
Bimetallic power rail.
The power or third rail is not considered traction power equipment and is thus subject to the requirements of 49 U.S.C. 5323(j) and the requirements of § 661.5.
A bidder on a contract for an item covered by 49 U.S.C. 5323(j) who will comply with section 165(b)(3) and regulations in this section is not required to follow the application for waiver procedures set out in § 661.9. In lieu of these procedures, the bidder must submit the appropriate certificate required by § 661.12.
[61 FR 6302, Feb. 16, 1996, as amended at 62 FR 40954, July 31, 1997; 72 FR 53697, Sept. 20, 2007; 72 FR 55103, Sept. 28, 2007; 74 FR 30239, June 25, 2009]