[Federal Register Volume 76, Number 40 (Tuesday, March 1, 2011)]
[Notices]
[Pages 11193-11194]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-4482]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Notice of a Project Waiver of Section 1605 (Buy American 
Requirements) of the American Recovery and Reinvestment Act of 2009 
(ARRA) to the Drew County, AR, Memorial Hospital Renovation and 
Expansion Project

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

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SUMMARY: The United States Department of Agriculture (``USDA'') grants 
a project waiver of the Buy American Requirements [manufactured goods 
are not produced in the United States in sufficient and reasonably 
available quantities and of a satisfactory quality] of ARRA to Drew 
County, Arkansas, (``County'') for the purchase of foreign manufactured 
Heating, Ventilation, Air Conditioning (HVAC) equipment for a hospital 
renovation and expansion project. This is a project specific waiver 
under section 1605 (b)(2) of ARRA. This waiver only applies to the use 
of the specified product for the ARRA project being proposed. Any other 
ARRA recipient that wishes to use the same product must apply for a 
separate waiver based on project specific circumstances. The County-
proposed HVAC improvements were selected to address the unique 
conditions presented by the existing building. Based upon information 
submitted by the County and its consultants, it was determined that the 
HVAC equipment that will meet the County's design and performance 
specifications is manufactured only by Daikin and SkyAir of Japan and 
Thailand, respectively. This determination is based on the review and 
recommendations of the Rural Development Buy American Coordinator. The 
County, through its design engineer, has provided sufficient 
documentation to support its request. The Under Secretary for Rural 
Development has concurred in this decision to waive Section 1605 of 
ARRA. This action permits the purchase of a Daikin RXS/FTXS (wall 
mounted indoor unit) HVAC unit and SkyAir FCQ/RZQ (cassette-style, 
ceiling mounted indoor unit). These units address the operational 
requirement to heat and cool simultaneously, perform very efficiently, 
and are compatible and

[[Page 11194]]

adaptable to the space restrictions created by the existing facility.

DATES: Effective Date: March 1, 2011.

ADDRESSES: Dallas Tonsager, Under Secretary, Rural Development, U.S. 
Department of Agriculture, 1400 Independence Avenue, Room 205-W, 
Washington, DC 20250-0107, (202) 720-4581.

FOR FURTHER INFORMATION CONTACT: William Downs, Senior Architect, 
Program Support Staff, (202) 720-1499, Rural Housing Service, Stop 
0761, U. S. Department of Agriculture, 1400 Independence Avenue, SW., 
Washington, DC 20250-0761.

SUPPLEMENTARY INFORMATION: In accordance with ARRA Section 1605(c) and 
pursuant to Section 1605(b)(2), USDA hereby provides notice that it is 
granting a project specific waiver of the Buy American Requirements of 
ARRA to Drew County, Arkansas, for the purchase of HVAC equipment, 
manufactured by Daikin of Japan and SkyAir of Thailand for the hospital 
renovation and expansion project.

I. Background

    Section 1605(a) of ARRA requires that none of the appropriated 
funds may be used for the construction, alteration, maintenance, or 
repair of a public building or public work unless all of the iron, 
steel, and manufactured goods used in the project are produced in the 
United States, or unless a waiver is provided to the recipient by the 
head of the appropriate department or agency, here the Secretary of 
USDA. According to section 1605(b) of ARRA, a waiver may be granted if 
the Secretary determines that (1) applying these requirements would be 
inconsistent with public interest; (2) iron, steel, and manufactured 
goods are not produced in the United States in sufficient and 
reasonably available quantities and of a satisfactory quality; or (3) 
inclusion of iron, steel, and manufactured goods produced in the United 
States will increase the cost of the overall project by more than 25 
percent. The County has requested a waiver from the Buy American 
Requirement for the purchase of HVAC equipment suitable for the 
conditions of the existing facility and the expansion area.
    The purchase of the new HVAC equipment is intended to provide the 
specified air conditioning for the existing hospital renovation and 
expansion. The estimated cost of the HVAC equipment improvements to 
Drew County's hospital is $12,000. In designing the HVAC equipment the 
designers of record evaluated the various technologies based on the 
following factors:
    <bullet> The project requirements include addressing the 
limitations of space for HVAC equipment and the associated accessories.
    <bullet> The project requires a very high efficiency performance 
for the conditions presented by the region and the requirement for 
simultaneous heating and cooling.
    <bullet> The project requires a frost resistant operating system.
    As part of an exhaustive review and search for potentially viable 
HVAC units, the County and their consultants determined that there is 
no domestic manufacturer of HVAC equipment that provides the specified 
performance and technical features required for this project.
    According to the County, the only HVAC equipment that meets the 
technical specifications is not manufactured in the United States. As a 
result, the County requested a waiver of the ARRA Buy American 
provisions on the basis of nonavailability of a United States 
manufactured product that will meet the design and performance criteria 
specified for this HVAC system.

II. Nonavailability Finding

    The evaluation by USDA's technical review team and architect 
supports the County's claim that a suitable HVAC system which meets the 
specifications for this project is not available in sufficient and 
reasonably available commercial quantities of a satisfactory quality 
that is manufactured in the United States. USDA's technical review team 
and architects reviewed a memorandum submitted by the County describing 
the foreign equipment that fits the technical specifications for the 
HVAC equipment and the process the County followed in adopting the HVAC 
design. USDA's technical review team and architects conducted a 
nationwide review of equipment vendors, manufacturers' representatives, 
and associated resources typically relied on by designers of HVAC 
equipment. The purpose of USDA's review process was to determine 
whether there was any HVAC equipment manufactured in the United States 
that meets the County's design specifications and performance 
requirements. As a result of its review, the Secretary has determined 
that based on the information available and to the best of USDA's 
knowledge, there is no HVAC equipment manufactured in the United States 
that meets the County's design specifications and performance 
requirements for the County's Memorial Hospital renovation and 
expansion project.
    The Rural Development Buy American Coordinator has reviewed this 
waiver request and has determined that the supporting documentation 
provided by the County established a proper basis that the manufactured 
good was not available from a producer in the United States able to 
meet the design specifications and performance requirements for the 
proposed project.

III. Waiver

    Having established a proper basis that this manufactured good was 
not available from a producer in the United States, the County is 
hereby granted a waiver from the Buy American requirements. This waiver 
permits use of ARRA funds for the purchase of the specified Daikin VRV 
III heat recovery system and SkyAir FCQ/RZQ documented in the County's 
waiver request submittal dated November 1, 2010, as part of its 
hospital renovation and expansion project. This supplementary 
information constitutes the detailed written justification required by 
Section 1605(c) of ARRA for waivers ``based on a finding under 
subsection (b).''

IV. Equal Opportunity and Non-Discrimination Requirements

    U.S. Department of Agriculture prohibits discrimination in all of 
its programs and activities on the basis of race, color, national 
origin, age, disability, and where applicable, sex, marital status, 
parental status, religion, sexual orientation, genetic information, 
political beliefs, reprisal, or because all or part of an individual's 
income is derived from any public assistance program. (Not all 
prohibited bases apply to all programs.) Persons with disabilities who 
require alternative means for communication of program information 
(Braille, large print, audiotape, etc.) should contact USDA's TARGET 
Center at (202) 720-2600 (voice and TDD). To file a complaint of 
discrimination, write to USDA, Director, Office of Civil Rights, 1400 
Independence Avenue, SW., Washington, DC 20250-9410, or call (800) 795-
3272 (voice), or (202) 720-6382 (TDD). ``USDA is an equal opportunity 
provider, employer, and lender.''

    Authority:  Public Law 111-5, Section 1605.

    Dated: February 17, 2011.
Thomas J. Vilsack,
Secretary of Agriculture.
[FR Doc. 2011-4482 Filed 2-28-11; 8:45 am]
BILLING CODE 3410-XV-P