This presentation provides an overview of the FTA's Buy America Requirements, which apply to third-party procurements by FTA grant recipients.

1. THE FTA, BUY AMERICA AND
YOU:
CAN YOU COMPETE ON A LEVEL
PLAYING FIELD?
Eliot Norman
Partner – White Collar
Investigations/Buy America
Richmond, VA
C: +1.804.721.7851 | T:
+1.804.420.6482
enorman@williamsmullen.com
www.williamsmullen.com/FDI

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THINK
BIG!
FTA spending $

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Your goal: Level Playing Field

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607/08/11
Williams Mullen: We are Connected

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THE FTA, BUY AMERICA AND YOU
>

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President trump
> “It shall be the policy of the Executive Branch to Buy
American and hire American” April 17, 2017
> Inter-Agency Deadline of November24, 2017
> Really nothing new as faras Buy America Act is
concerned?
> So what are implications foryourBusiness Plans?
THINK BIG ??

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buy America act 101
> 100% of steel and iron on FTA financed projects must
be made in USA
> 100% of manufactured goods and theircomponents
must be produced in the USA
> Rolling Stock: Domestic Content 60% going to 65%,
then 70% by FY 2020. with all Final Assembly in the
USA
> Applies to all procurements over$150,000; rolling stock
over$300,000. You cannot “split” procurements to try
to use the small purchase exemption.
> BUY AMERICA IMPACT on
YOURPLANS?
THINK
SMALL??

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BUT LET’s NOT GO HOME JUST YET
> Lookat Success of foreign companies in
winning big procurements financed by the FTA.
> How do they do it?
> Answer: “It’s in the definitions “ and “how you
structure yoursupply chain and global manufacturing”

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RTBD, RTBD

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SUCCESS STORIES? (fta investigations)
> Modula out of Italy
Lessons Learned: know yourkey definitions:
manufacturing processes, manufactured end product,
component, subcomponent, final assembly,
infrastructure, use of U.S. orforeign steel, etc. etc. etc.
RTBDRTBD

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More success stories under buy america
> MERMEC (Italian owned) , based in Columbia, SC
> NOVA BUS out of Canada

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More Lessons to Learn
> MARIOFF (out of Finland) Mist Fire Suppression Systemfor
Second Avenue Subway Project in NYC?
> KAWASAKI (Japan) Rail Cars forWMATA
>
> Others
> Do’s and Don’ts
> Get an Advisory Opinion Before you Bid?

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Penalties for Buy America violations
> cost of investigations, prosecutions
> criminal: false statements 18 U.S.C. 1001 +
> civil false claims
> breach of contract, decertification and debarment
> pricing, bound by yourcertification, too late to
substitute
US products ?
> waivers? Not anymore
> Compliance compliance compliance, must be in your
company culture.

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How we can help:
> Compliance Programand Training, give
managerauthority, BA planning not at post-investigation
> Protection: Buy America compliance program foryou & your
subcontracts, “mistake” not a “willful violation
> Case presentation to FTA/Local Transit Authority
> Procedural Advice: Certificates, timing, pre-award audits, BA
Guidance Letters
> Deal with Otheragencies: FTA not the only player, part of broader
gov. contracts strategy:
– FHWA, AMTRAK, Federal Railroad Administration High Speed
Rail Program, FAA (60% domestic content)
– Review State/Local Buy USA statutes
> MonitorWhat’s New: Nov. 24; Rolling Stock70%
> Deal with Investigations, CompetitorComplaints
> Result: Level Playing Field

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PIVOT

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Takeaways

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With The Right Legal Partners, This Can Be
The Desired Result:

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Please note: This presentation contains general, condensed summaries of actual legal matters, statutes and opinions for
information purposes. It is not meant to be and should not be construed as legal advice. Individuals with particular needs on
specific issues should retain the services of competent counsel.
THANK YOU
Eliot Norman
Partner – White Collar
Investigations/Buy America
Richmond, VA
C: +1.804.721.7851 | T:
+1.804.420.6482
enorman@williamsmullen.com
William J. Benos
Corporate/Immigration
Richmond, VA
C: +1.804.221.0073 | T:
+1.804.420.6402
bbenos@williamsmullen.com
Robert K. Cox
Government Construction
Federal Transit Projects
Tysons, VA (Washingon DC)
T: +1.703.760.5227
bcox@williamsmullen.com
William A. Wozniak
Government Contracts/Buy America
Tysons, VA (Washington DC)
T: +1.703.760.5215
wwozniak@williamsmullen.com