Metro - File #: 2023-0657

• File #: 2023-0657
• Type: Motion / Motion Response
• Status: Agenda Ready
• File created: 10/13/2023
• In control: Finance, Budget and Audit Committee
• On agenda: 10/18/2023
• Title: APPROVE Motion by Directors Horvath, Bass, Butts, Yaroslavsky, and Najarian that the Metro Board instruct the Chief Executive Officer to report to the Board in March 2024 with an evaluation of the applicable provisions of the Build America, Buy America Act, provisions contained in the Infrastructure Investment and Jobs Act and related federal guidance (49 U.S.C. ? 5323(j)), and any impact the Act may have on the feasibility of transit projects seeking a Full-Funding Grant Agreement with the FTA.
• Sponsors: Finance, Budget and Audit Committee
• Indexes: Ara Najarian, Bids, Budgeting, Construction, Crenshaw Northern Extension, East San Fernando Valley Light Rail Project, Federal Transit Administration, Gold Line Eastside Transit Corridor Phase 2, Grant Aid, James Butts, Karen Bass, Katy Yaroslavsky, Lindsey Horvath, Measure M, Measure R, Metro Rail E Line, Metro Rail K Line, Motion / Motion Response, Procurement, Purchasing, Request For Proposal, Rolling stock, San Fernando, San Fernando Valley Service Sector, San Fernando Valley subregion, Senate Bill 2320, Steel, West Santa Ana Branch Transit Corridor (WSAB) Project

Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
OCTOBER 18, 2023

Preamble
Motion by:

DIRECTORS HORVATH, BASS, BUTTS, YAROSLAVSKY, and NAJARIAN

The Build America, Buy America Act, enacted as part of the Infrastructure Investment and Jobs Act on November 15, 2021, established a domestic content procurement preference for Federal infrastructure projects in the United States. The Act maximizes the Federal government's use of services, goods, products, and materials produced in the United States and requires that three separate product categories: 1) Iron or Steel Products; 2) Manufactured Products; and 3) Construction Materials, be produced in the United States when used in covered infrastructure projects. The Act is central to President Biden's Investing in America agenda intended to drive domestic manufacturing, rebuild America's infrastructure, and create good-paying jobs. During the February 2023 State of the Union address, President Biden committed to ensuring construction materials used in federally funded infrastructure projects are made in America.

The Office of Management and Budget (OMB) subsequently issued "Guidance" related to the Build America, Buy America Act and provisions contained in the "Infrastructure Investment and Jobs Act", which require that after 2020, at least seventy percent (70%) of the cost of components and subcomponents for rolling stock transit vehicles be produced in the United States. Final assembly for rolling stock must also occur in the United States.

These provisions also apply to Federal financial assistance awards (e.g., grants and loans) made after May 14, 2022, that are used to construct, alter, maintain, or repair infrastructure in the United States. According to the Federal Transit Administration (FTA) a "grantee must include in its bid or request for proposal (RFP) specifications for procurement of steel, iron or manufactured goods (including rolling stock) an appropriate notice of the Buy America provision and re...