1 

FRA Rail Program Technical Assistance Webinar 

FRA Buy America

and Related Requirements
2 

Overview

Purpose

• Support FRA grantees and partners with technical assistance in

understanding and complying with the Buy America requirements

and other Federal legislation.

• Present examples of real-world applications of how Buy

America requirements can be applied.
3 

Overview

Agenda

• Understanding and

Applying

FRA Buy America

Requirements

• Questions?
4 

Understanding and Applying FRA Buy 

America Requirements

Understanding and Applying

FRA Buy America Requirements

FRA Buy America Questions???

email:

frabuyamerica@dot.gov
5 

Understanding and Applying FRA Buy 

America Requirements

FRA believes that passenger rail equipment can and should be 

manufactured in the United States

Sourcing Domestically is the BEST Option for Grantees

• This includes railcars AND rail infrastructure construction

materials

FRA will ensure that grant funds are spent domestically 

whenever possible

• Where not currently a domestic source, FRA will do what it can

to encourage domestic production

Buy America requirements aid and encourage the domestic rail 

market

• Benefits the U.S. economy and all Americans
6 

Understanding and Applying FRA Buy 

America: Three Sets of Requirements

Three Statutes Potentially Apply

Requirements attach to the grant funding source for each 

project element (check grant agreement and follow the money!)

• Keep your sub-grantees, contractors and suppliers informed

• Include flow-down provisions in procurement documents

and contracts

• Contact FRA early if you have questions

Statute U.S.C. Citation Applicable Programs & Projects

Buy America; Build

Buy America

49 U.S.C. § 22905(a)

& Pub. L. 117-58

• FRA's discretionary grant programs

• Certain DOT programs (RRIF, MEGA)

Amtrak Domestic 

Spending Preference 

49 U.S.C. § 24305(f) • Amtrak capital grants

The Buy American 

Act

41 U.S.C. § 8302 et seq. 

(formerly § 10a-10c)

• Rail Line Relocation projects

• FY 2008 Capital Assistance to States grants

• FY 2009 HSIPR projects
7 

Understanding and Applying FRA Buy 

America: Waivers Overview

FRA Can Grant Waivers Only After Thorough Review

Do not expect a waiver

• Waiver request process is 6 months to 1 year

• Strict scrutiny applied

• All waiver recommendations reviewed by DOT Secretary

• FTA 60%+ U.S. content by cost exception does not apply

Waivers are always on a case-by-case basis

• Waivers are project-specific, time-limited, and contingent

upon grantee/vendor efforts to find domestic sources

• Before granting a waiver, FRA expects requester to have

used best efforts to find domestic sources

• FRA will independently verify assertions made in waiver

requests
8 

Understanding and Applying FRA Buy 

America: Demonstrating Compliance

Demonstrating Compliance

What do grantees need to do?

• Include notice of requirements in solicitations and RFPs

• Include flow-down requirements in contracts

• Maintain certifications for all procurements

• Actively look for fraud and mistakes

• Audit rolling stock procurements

Simple format for certification of FRA Buy America 

compliance:

The bidder or offeror hereby certifies that it will comply with the FRA Buy America requirements 

of 49 U.S.C. Section 22905(a)(1). 

Date__________________________________________________________________

Signature______________________________________________________________ 

Company______________________________________________________________

Name_________________________________________________________________ 

Title___________________________________________________________________
9 

Understanding and Applying FRA 

Buy America: FRA Requirements 

Applies to FRA-authorized projects with costs exceeding 

$100,000

PRIIA Buy America Requirements (49 U.S.C. §22905(a)) 

• Buy America requirements also apply to items purchased with

non-grant funds if used in a grant-funded project.

Applies to three major categories 

• Manufactured end products and components

• Steel and iron

• Construction Materials

Applies to utility relocations and used or inventoried items used 

in an FRA grant-funded project

• Used or inventoried items must be documented in the same

manner as new items
10

Understanding and Applying FRA 

Buy America: FRA Requirements 

Definitions 

PRIIA Buy America Requirements (49 U.S.C. §22905(a)) 

• End products incorporate components at the final assembly

location, and are acquired ready to provide the intended end

function without further manufacturing or assembly

• Components are directly incorporated into end products at

the final assembly location

• Subcomponents are one step removed from a component in

the manufacturing process – they are incorporated into

components during manufacturing
11

Understanding and Applying FRA 

Buy America: FRA Requirements 

FRA Buy America Requirements (49 U.S.C. §22905(a)) 

Definitions (cont.)

• Manufacturing is the application of processes to substantially

transform and add value to components or subcomponents, to

create a functionally different product

• Exception: the manufacturing process applicable to rolling

stock is “final assembly”

• Final assembly is the creation of an end product from

individual elements brought together for that purpose through

application of manufacturing processes

• Example: Rolling stock systems and components are

assembled to create a new end product: the railcar
12

Understanding and Applying FRA 

Buy America: FRA Requirements 

PRIIA Buy America Requirements (49 U.S.C. §22905(a)) 

Steel and iron get special scrutiny

• Components manufactured or transformed directly from

steel or iron should be U.S. steel or iron

• Includes rolling stock components and construction

material included in infrastructure projects

• No Buy America requirements for steel or iron

subcomponents

Applies to all steel and iron, including used material

• Used steel and iron must be documented like new

material

• Examples: stamps on items, shipping documents, signed

certificates from vendor
13

Understanding and Applying FRA 

Buy America: FRA Requirements 

Example: Signal System

PRIIA Buy America Requirements (49 U.S.C. §22905(a)) 

Must be 

manufactured 

in U.S.

Must be 

manufactured 

in U.S.

U.S. 

production

encouraged, 

not required

Assembly of 

End Products 

in U.S.

Photo credit: Flickr Creative Commons/jpmueller99
14

Understanding and Applying FRA 

Buy America: FRA Requirements 

PRIIA Buy America Requirements (49 U.S.C. §22905(a)) 

Example: Railroad Turnout Components

• Turnout is an end product - must be manufactured in U.S.

• Turnout components must be manufactured in U.S. (e.g.

ties, switch rails, plates, clips, frogs, switches)

• Switch rails are turnout components made from steel –

must be made from U.S. steel
15

PRIIA Buy America Requirements (49 U.S.C. §22905(a)) 

Understanding and Applying FRA 

Buy America: FRA Requirements 

Example: Railroad Turnout Subcomponents

• Parts making up railroad turnout components are

subcomponents and do not have to be manufactured in U.S.

• The vee point pictured below does not have to be manufactured

in U.S. because it is a subcomponent of the frog, which is a

component of a turnout.

• Need not be U.S. steel because the vee point is a

subcomponent.
16

Understanding and Applying FRA 

Buy America: FRA Requirements 

PRIIA Buy America Requirements (49 U.S.C. §22905(a)) 

Example: Rolling stock

• Rolling stock final assembly must take place in the U.S.

• Railcars consist of multiple systems and components,

which must be manufactured in the U.S.

• Example Systems: trucks, car shells, main transformers,

interior linings, HVAC
17

Understanding and Applying FRA 

Buy America: FRA Requirements 

PRIIA Buy America Requirements (49 U.S.C. §22905(a)) 

Example: Rolling stock system components

• Rolling stock systems and components must also be

manufactured in the U.S.

• Example: Trucks are a system included in railcars, with

many components (e.g. wheels, axels, axle drivers,

shock absorbers). The trucks and these components all

must be U.S. manufactured

• Subcomponents

need not be

manufactured in

U.S. (but still

recommended)
18

Understanding and Applying FRA Buy 

America: FRA, FTA, FHWA Comparison

FRA FTA FHWA

End 

Products

Final assembly or 

manufactured in U.S.

Final assembly or manufactured 

in U.S. Exception for rolling 

stock assembled in U.S. 

containing greater than 60% 

U.S. content by cost.

Products with 90%+

steel or iron content 

must be U.S.

Systems and 

Components

All must be manufactured in 

U.S. Infrastructure materials 

made primarily of steel or iron 

must be U.S.

Rolling stock systems and 

components (e.g., couplers, 

trucks, axles, etc.) made 

primarily of steel or iron must 

be produced from U.S steel 

or iron.

All must be manufactured in 

U.S. Infrastructure materials 

made primarily of steel or iron 

must be U.S.

Car shells and other rolling 

stock parts made of steel are 

treated as components. 

Manufacturer of rolling stock 

may use domestic or foreign 

steel in those components, but 

sum of the foreign-manufactured 

components cannot exceed 

40% of vehicle cost.

Products with 90%+

steel or iron content 

must be U.S.

SubComponentsNo restrictions – U.S. 

manufacture encouraged

Subcomponents made primarily 

of steel or iron and used in 

construction projects must be 

U.S. produced.

Same as above, but

does not apply to 

hardware used in 

assembly/enclosure.
19

Understanding and Applying FRA Buy 

America: Amtrak Requirements

Amtrak Domestic Buying Preference (49 USC § 24305(f))

Applies to Amtrak capital grants, for items purchased in excess 

of $1,000,000

• Requires Amtrak to buy articles, materials and supplies

manufactured in the U.S., that are substantially made

from U.S. source materials (50 percent or more by cost)

FRA Buy America (49 USC §22905(a)) applies when Amtrak is 

operating under a FRA-authorized grant or performing a 

contract for another grantee 

• Check your grant for funding source

• Call FRA for assistance
20

Understanding and Applying FRA Buy 

America: The Buy American Act

The Buy American Act 41 USC § 8302 et seq. (formerly 41 

USC § 10a-10c)

Applies to legacy FRA grants 

• Fiscal year 2008-09 appropriations

• Certain rail relocation grants

Similar to Amtrak domestic buying preference except:

• Applies to contracts over $3,000

• International agreements may apply
21

Understanding and Applying FRA Buy 

America: The Buy American Act

Comparing FRA Buy America with FRA Buy American 

In general, Buy American imposes fewer restrictions

• Buy American Act:

• Applies only to items included in contracts over

$3,000

• Waiver can be justified if cost of using domestic

material would increase the cost of the contract by

more than 6%

• FRA Buy America:

• Applies to projects over $100,000

• Waiver justification requires an increase of 25% in

total project costs
22

Understanding and Applying FRA Buy 

America: RRIF 

Applicability to Railroad Rehabilitation and Improvement 

Financing (RRIF) Loans

FRA intent is to apply FRA Buy America standards to RRIF 

loan applications 

• No statutory requirement, but FRA expects FRA Buy

America compliance from RRIF loan recipients
23

Understanding and Applying FRA Buy 

America: Waivers

Do Not Expect a Waiver

Buy America (FRA) Waivers can only be granted if one of the 

following apply

1. Enforcing Buy America requirements would be inconsistent

with U.S. public interest

2. U.S. goods are not produced in sufficient quantity or quality

to meet project needs

3. U.S. rolling stock or power train equipment cannot be

delivered within a reasonable time

4. Domestic material will increase the cost of the overall

project by more than 25 percent

Waivers are always a case-by-case evaluation – no blanket 

approvals for specific products or grantees

• Waiver approval process must be followed in every case
24

Understanding and Applying FRA Buy 

America: Waivers

Similar waiver justifications for Buy American and Amtrak 

domestic spending requirements 

• Less stringent in most cases

• FRA uses same process for all

FRA cannot grant exception for rolling stock with 60% U.S. 

content and U.S. assembly (FTA Only)

• FTA’s Buy America statute

(49 U.S.C. § 5323(j)) allows

exception for rolling stock

assembled in the U.S. with

60%+ U.S. content by cost.

• FRA Buy America statute

does NOT allow for this type

of exception.
25

Understanding and Applying FRA Buy 

America: Waivers

Waiver Application Process Takes Six Months or More

Contact FRA to determine if a waiver is required, then:

1. Grantee State DOT applies by submitting letter to FRA

Administrator

• Be specific to minimize delays. Refer to FRA Buy

America FAQs for needed details.

2. All waiver requests posted on FRA Buy America website

• Public comments collected via website

• Proprietary information can be redacted before posting

3. FRA will reach out to manufacturers directly, or through

NIST-MEP.

DOT takes each decision very seriously

• Most decisions reviewed by DOT Deputy Secretary
26

Understanding and Applying FRA Buy 

America: NIST-MEP

NIST-MEP

NIST-MEP may scout for available domestic products on 

behalf of FRA, or directly for grantees

FRA consults with the National Institute of Technology and 

Standards (NIST)

•
27

Understanding and Applying FRA Buy 

America Requirements

Conclusion

Using domestic sources is the 

best option for grantees and 

benefits all Americans

Do not expect a waiver

Requirements attach to the 

funding source – check your 

grant agreement to see which 

statute applies

Refer to FRA guidance and ask 

for assistance early in the 

process 
28

Questions & Answers

FRA Buy America Questions???

email:

frabuyamerica@dot.gov
29

Thank You!

FRA Buy America Resources: 

FRA Buy America Website

Frequently Asked Questions

Sign up for email updates

FRA Buy America Questions???

email:

frabuyamerica@dot.gov