Buy America Handbook

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Pre-Award, Post-Delivery Audit Requirements Under Buy America

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Conducting Pre-Award and
Post-Delivery Audits
for Rolling Stock Procurements

Best Practices Handbook for Recipients,
Auditors, Manufacturers, and Suppliers

JANUARY 2017
FTA Report No. 0106
Federal Transit Administration
PREPARED BY

Federal Transit Administration

DEDICATION
To our colleague John G. Bell, who contributed his expertise, untiring resolve, and boundless
passion about Buy America to the development of this handbook.

COVER PHOTO
Courtesy of Edwin Adilson Rodriguez, Federal Transit Administration

DISCLAIMER
This document is disseminated under the sponsorship of the U.S. Department of Transportation in the interest of information
exchange. The United States Government assumes no liability for its contents or use thereof. The United States Government
does not endorse products of manufacturers. Trade or manufacturers’ names appear herein solely because they are considered
essential to the objective of this report.

Conducting
Pre-Award and
Post-Delivery Audits
for Rolling Stock
Procurements
Best Practices Handbook for
Recipients, Auditors, Manufacturers,
and Suppliers

JANUARY 2017
FTA Report No. 0106
PREPARED BY

Federal Transit Administration
SPONSORED BY

Federal Transit Administration
Office of the General Counsel
U.S. Department of Transportation
1200 New Jersey Avenue, SE
Washington, DC 20590
AVAIL ABLE ONLINE

www.transit.dot.gov

FEDERAL TRANSIT ADMINISTRATION

SYMBOL

Metric
Conversion
Table
Metric
Conversion
Table
Metric
Conversion
Table

WHEN YOU KNOW

MULTIPLY BY

TO FIND

SYMBOL

LENGTH
in

inches

25.4

millimeters

feet

0.305

meters

yards

0.914

meters

miles

1.61

kilometers

VOLUME
fl oz

fluid ounces

29.57

milliliters

gal

gallons

3.785

liters

ft3

cubic feet

0.028

cubic meters

yd3

cubic yards

0.765

cubic meters

NOTE: volumes greater than 1000 L shall be shown in m3
MASS
oz

ounces

28.35

grams

pounds

0.454

kilograms

short tons (2000 lb)

0.907

megagrams
(or "metric ton")

Mg (or "t")

TEMPERATURE (exact degrees)
o

Fahrenheit

5 (F-32)/9
or (F-32)/1.8

Celsius

FEDERAL TRANSIT ADMINISTRATION
FEDERAL TRANSIT ADMINISTRATION

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4. TITLE AND SUBTITLE
Conducting Pre-Award and Post-Delivery Audits for Rolling Stock Procurements:
Best Practices Handbook for Recipients, Auditors, Manufacturers, and Suppliers

5. FUNDING NUMBERS

6. AUTHOR(S)
Office of the General Counsel
Federal Transit Administration
7. PERFORMING ORGANIZATION NAME(S) AND ADDRESSE(ES)
Federal Transit Administration
Office of the General Counsel
1200 New Jersey Ave., SE
Washington, DC 20590

8. PERFORMING ORGANIZATION REPORT NUMBER

9. SPONSORING/MONITORING AGENCY NAME(S) AND ADDRESS(ES)
U.S. Department of Transportation
Federal Transit Administration
Office of General Counsel
East Building
1200 New Jersey Avenue, SE
Washington, DC 20590

10. SPONSORING/MONITORING AGENCY REPORT
NUMBER

11. SUPPLEMENTARY NOTES

FTA Report No. 0106

[https://www.transit.dot.gov/about/research-innovation]

12A. DISTRIBUTION/AVAILABILITY STATEMENT
Available from: National Technical Information Service (NTIS), Springfield, VA 22161.
Phone 703.605.6000, Fax 703.605.6900, email [[email protected]]

12B. DISTRIBUTION CODE
TRI-20

13. ABSTRACT
The Federal Transit Administration’s objective in implementing 49 CFR part 661–Buy America Requirements and 49 CFR part 663–PreAward and Post-Delivery Audits of Rolling Stock Purchases is to support U.S. jobs and the U.S. manufacturing industry. As part of the
federal grant application for any revenue service rolling stock grant, an agency that uses federal funds (recipient) to procure vehicles
“must certify to FTA that it will conduct or cause to be conducted pre-award and post-delivery audits” as prescribed by 49 CFR part 663.
However, 49 CFR part 663 imposes additional requirements on recipients in terms of ensuring and documenting that the rolling stock
to be purchased (pre-award audit) and the rolling stock received (post-delivery audit) comply with FTA’s Buy America requirements.
This handbook will assist recipients, auditors, rolling stock manufacturers (manufacturers), and subcontractors and suppliers (suppliers)
in understanding and correctly applying FTA’s pre-award and post-delivery audit requirements for rolling stock vehicle (vehicle)
purchases. The overall aim is to guide handbook users through the necessary steps to meet the pre-award audit and post-delivery audit
requirements as well as to bring greater uniformity to the way the industry conducts and documents pre-award and post-delivery audits
of rolling stock purchases.

14. SUBJECT TERMS
Buy America, pre-award audit, post-delivery audit, rolling stock grant, federal
procurement

15. NUMBER OF PAGES
102

16. PRICE CODE
17. SECURITY CLASSIFICATION
OF REPORT
Unclassified

18. SECURITY CLASSIFICATION
OF THIS PAGE
Unclassified

19. SECURITY CLASSIFICATION
OF ABSTRACT
Unclassified

20. LIMITATION OF ABSTRACT

FEDERAL TRANSIT ADMINISTRATION

TABLE OF CONTENTS
1
1
2
3
5
5
7
8

8
9
15
17

Section 1: Introduction

1.1 Scope
1.2 Background
1.3 Organization of Handbook
1.4 References
1.5 Definitions
1.6 Acronyms
Section 2: Pre-Award Audit

2.1 Requirements for the Pre-Award Audit
2.2 Pre-Award Buy America Certification
2.3 Pre-Award Purchaser’s Requirements Certification
2.4 Pre-Award Federal Motor Vehicle Safety Standards (FMVSS) Certification
of Compliance or Inapplicability

18
19
25
29

Section 3: Post-Delivery Audit

31
31
32
37
46
47

Section 4: Domestic Content Calculations

3.1 Requirements for the Post-Delivery Audit
3.2 Post-Delivery Purchaser’s Requirements Certification – 49 CFR § 663.37
3.3 Post-Delivery Federal Motor Vehicle Safety Standards (FMVSS)
Certification of Compliance or Inapplicability
4.1 Vehicle Level Domestic Content Calculations
4.2 Domestic Content – Relevant Definitions
4.3 Domestic Content Worksheet
4.4 Special Considerations
4.5 Manufacturer Documentation

Section 5: Frequently Asked Questions

Appendix A: Checklists

Appendix B: Certificates and Forms

Appendix C: Sample Buy America Audit Reports

FEDERAL TRANSIT ADMINISTRATION

FOREWORD
The information contained in this Handbook is based on the 49 CFR part 663
Pre-Award and Post-Delivery Audits of Rolling Stock Purchases and 49 CFR part
661 Buy America Requirements.
The guidance in this Handbook does not constitute a determination of
compliance with the Department of Transportation (DOT) standards and rules
or with your rights or responsibilities under the rules and is not binding on the
DOT.
This is a best practices Handbook (a non-binding guidance document) for use by
auditors as well as recipients, vendors, and interested members of the public.

ABSTRACT
The Federal Transit Administration’s objective in implementing 49 CFR part
661–Buy America Requirements and 49 CFR part 663–Pre-Award and PostDelivery Audits of Rolling Stock Purchases is to support U.S. jobs and the
U.S. manufacturing industry. As part of the federal grant application for any
revenue service rolling stock grant, an agency that uses federal funds (recipient)
to procure vehicles “must certify to FTA that it will conduct or cause to be
conducted pre-award and post-delivery audits” as prescribed by 49 CFR part
663. However, 49 CFR part 663 imposes additional requirements on recipients
in terms of ensuring and documenting that the rolling stock to be purchased
(pre-award audit) and the rolling stock received (post-delivery audit) comply with
FTA’s Buy America requirements.
This handbook will assist recipients, auditors, rolling stock manufacturers
(manufacturers), and subcontractors and suppliers (suppliers) in understanding
and correctly applying FTA’s pre-award and post-delivery audit requirements for
rolling stock vehicle (vehicle) purchases. The overall aim is to guide handbook
users through the necessary steps to meet the pre-award audit and post-delivery
audit requirements as well as to bring greater uniformity to the way the industry
conducts and documents pre-award and post-delivery audits of rolling stock
purchases.

FEDERAL TRANSIT ADMINISTRATION

vii

SECTION

Introduction
The Federal Transit Administration’s (FTA) objective in implementing 49 CFR
part 661–Buy America Requirements and 49 CFR part 663–Pre-Award and PostDelivery Audits of Rolling Stock Purchases is to support U.S. jobs and the U.S.
manufacturing industry.1
As part of the federal grant application for any revenue service rolling stock
grant, an agency that uses federal funds (recipient) to procure vehicles “must
certify to FTA that it will conduct or cause to be conducted pre-award and
post-delivery audits” as prescribed by 49 CFR part 663. By signing the FTA
Master Agreement, recipients have certified that they will conduct or cause to
be conducted the requisite pre-award and post-delivery audits. However, 49
CFR part 663 imposes additional requirements on recipients in terms of ensuring
and documenting that the rolling stock to be purchased (pre-award audit) and
the rolling stock received (post-delivery audit) comply with FTA’s Buy America
requirements.2
The purpose of this Handbook is to assist recipients, auditors, rolling stock
manufacturers (manufacturers), and subcontractors and suppliers (suppliers) in
understanding and correctly applying FTA’s pre-award and post-delivery audit
requirements for rolling stock vehicle (vehicle) purchases.
The overall aim is to guide Handbook users through the necessary steps to meet
the pre-award audit and post-delivery audit requirements as well as to bring
greater uniformity to the way the industry conducts and documents pre-award
and post-delivery audits of rolling stock purchases.

1.1 Scope
This Handbook applies only to the procurement of rolling stock used in revenue
service, which includes new buses, vans, cars, railcars, locomotives, trolley cars,
trolley buses, ferry boats, and vehicles used for guideways and incline planes, and
intended for public transportation of passengers.3 This Handbook does not apply
to: used vehicles; non-revenue service vehicles; vehicle rehabilitations, rebuilds,
1

These requirements are distinct from the Buy American Act of 1933, which governs
procurements made directly by the Federal government.

See 49 CFR §§ 663.7, 663.21–27, 663.31–39.

FTA also defines rolling stock end products as off-vehicle train control, communication, and
traction power equipment. See, e.g., Appendix A to 49 CFR § 661.3. This Handbook’s guidance is
limited to vehicles and does not address Buy America compliance for rolling stock end products
(e.g., off-vehicle elements such as train control, communication, and traction power equipment)
described in Buy America regulations in 49 CFR § 661.11 (t) through (w).

FEDERAL TRANSIT ADMINISTRATION

SECTION 1: INTRODUCTION

repowers, or overhauls, undertaken on a recipient’s existing vehicles; vehicle end
products, such as traction power distribution, signal and control systems, and
communications; or the provision of services.
The Handbook describes approaches and recommends processes for recipients
to consider in preparing to conduct pre-award and post-delivery vehicle
audits from the solicitation phase through the final acceptance of vehicles. The
Handbook also includes examples of how to calculate domestic content, and
verify and document compliance for all participating parties. The Handbook
is designed as a reference tool and a guide that includes recommendations on
auditing and compliance topics. It also provides examples as well as sample forms
and templates.
In 1995, FTA published two separate Handbooks on this subject, one for rail
vehicles and one for buses. This Handbook replaces both of those documents.
Information in this Handbook is subordinate to the regulations in 49 CFR part
661–Buy America Requirements and 49 CFR part 663–Pre-Award and PostDelivery Audits of Rolling Stock Purchases.
Recipients, auditors, manufacturers, and suppliers should all be familiar with
the most current revision of both 49 CFR parts 661 and 663.4 It is important to
keep current on FTA guidance and final decisions affecting these regulations as
published in the Federal Register or on the FTA website. The FTA website has
links to the regulations, relevant Federal Register publications, waivers, and letters
of interpretation, frequently asked questions, this vehicle Handbook, and related
Dear Colleague letters.
In case of a conflict between the contents of this Handbook and FTA’s Buy
America regulations and decisions, the regulations and decisions shall control.

1.2 Background
FTA’s Buy America requirements apply to third-party procurements by FTA
grant recipients. The first Buy America provision was included in the Surface
Transportation Assistance Act and is currently codified at 49 U.S.C. 5323(j)
and implemented under 49 CFR part 661. 5 This provision prohibits FTA from
obligating funds for a project unless the steel, iron, and manufactured products
used in the project are produced in the United States. Recipients are required

4 The regulations can be found online on the FTA “Buy America” webpage in the “Regulations”
Section. https://www.transit.dot.gov/regulations-and-guidance/buy-america/buy-america.
5 49 U.S.C. 5323(j) (formerly sec.165 of the Surface Transportation Assistance Act of 1982 (Pub. L.
97– 424); as amended by sec. 337, Pub. L. 100–17; sec. 1048, Pub. L. 102–240; sec. 3020(b), Pub. L.
105–178; sec. 3023(i) and (k), Pub. L. 109–59; sec. 20016, Pub. L. 112-141; sec. 3011, Pub. L. 114-94);
49CFR 1.91.

FEDERAL TRANSIT ADMINISTRATION

SECTION 1: INTRODUCTION

to conduct pre-award and post-delivery audits of rolling stock under 49 U.S.C.
5323(m), as implemented by 49 CFR part 663.
As a condition to receiving FTA grant funds for the purchase of rolling stock,
recipients must certify compliance with Buy America and the pre-award and
post-delivery audit requirements.
The recipient must either verify that the vehicles will contain the required
domestic content6 by cost, or request a waiver from FTA. Also, if rolling stock
frames or car shells are not produced in the U.S., but the steel or iron used is
domestic, and the average cost of a rolling stock vehicle in the procurement is
more than $300,000, then the steel or iron in the frames or car shells shall be
included in the domestic content calculation.7 In addition, to comply with Buy
America, final assembly of the vehicles must take place in the United
States in accordance with 49 CFR § 661.11. At each phase in the vehicle
procurement cycle, there are specific actions that a recipient must take to ensure
compliance with 49 CFR part 661 Buy America Requirements and 49 CFR part
663–Pre-Award and Post-Delivery Audits of Rolling Stock Purchases.
Recipients purchasing vehicles must ensure that a pre-award audit, as described
in 49 CFR §§ – 27, is completed before the recipient enters into a formal
contract to purchase vehicles. Similarly, those recipients purchasing vehicles
must also ensure that a post-delivery audit, as described in 49 CFR §§ 663.31
– 39, is completed before the title to the vehicle is transferred to the
recipient or before the rolling stock is placed in revenue service, whichever
comes first.

1.3 Organization of Handbook
This Handbook is divided into five major sections addressing the following areas:
• Section 1 – Introduction
• Section 2 – Pre-Award Audit
• Section 3 – Post-Delivery Audit
• Section 4 – Domestic Content Calculations

Effective October 1, 2015, Congress amended 49 U.S.C. 5323(j) to provide a phased increase in
domestic content from more than 60 percent for FY16 & FY17, to more than 65 percent in FY18
& FY19 and more than 70 percent in FY20 and beyond. On September 1, 2016, FTA issued final
policy guidance on implementing the phased increase in domestic content. This policy guidance is
available at 81 FR 60278 and on FTA’s website at https://www.transit.dot.gov/buyamerica.

See 49 U.S.C. 5323(j)(5). Note that the general Buy America requirements for manufactured
products in 49 CFR § 661.5 requiring 100% U.S. steel/iron and 100% of components to be
manufactured in the United States are separate and apart from the 49 CFR § 661.11 requirements
for rolling stock. Therefore, the structural steel requirements in § 661.5 do not apply to the
vehicular steel used in rolling stock, as noted in § 661.5(c).

FEDERAL TRANSIT ADMINISTRATION

SECTION 1: INTRODUCTION

• Section 5 – Frequently Asked Questions
• Appendices
Each major section presents guidance to recipients, auditors, manufacturers, and
component/subcomponent suppliers.
A brief overview of each section of the Handbook is provided below.
Section 1 – Introduction – Describes the objectives, purpose, and scope of
the Handbook, background, definitions, relevant references, and acronyms.
Section 2 – Pre-Award Audit – Recommends processes to the recipient
for conducting effective pre-award audits. It includes general guidance on best
practices during the vehicle solicitation (i.e., source selection and contract
award), and contract execution phases to facilitate verification of compliance.
It also seeks to clarify requirements and provide guidance to manufacturers
and its suppliers about how to prepare documentation to satisfy pre-award
requirements.
Section 3 – Post-Delivery Audit – Provides recommended post-delivery
audit processes, including a discussion about Post- Delivery Domestic Content
Monitoring in Section 3.1.3.4. It includes guidance to clarify the post-delivery
requirements of 49 CFR parts 661 and 663. This section includes guidance to
assist recipients, auditors, vehicle manufacturers, and suppliers with various
aspects of the post-delivery audits. It also describes the information necessary to
substantiate compliance.
Section 4 – Domestic Content Calculations – Provides guidance and
clarification on methods used to correctly calculate domestic content. This
section discusses the distinctions in the treatment of domestic content for
components and subcomponents and offers clarification on how to determine
what is a component versus a subcomponent. Finally, this section provides an
example of calculating domestic content with step by step instructions.
Section 5 – Frequently Asked Questions – Provides FTA responses
to FAQs concerning the pre-award and post-delivery audits of rolling stock
purchases. The responses also incorporate lessons learned from FTA Project
Management Oversight Contractor’s (PMOC’s) oversight of federally funded
projects.
Appendices – Include process checklists, sample certification forms, Buy
America waiver references, and sample Buy America audit reports.

FEDERAL TRANSIT ADMINISTRATION

SECTION 1: INTRODUCTION

1.4 References
The principal references for FTA’s Pre-Award and Post-Delivery Audit and Buy
America regulations are:
United States Code
• 49 U.S.C. Chapter 53, Section 5323(j)
• 49 U.S.C. Chapter 53, Section 5323(m) Legislation
• Surface Transportation Assistance Act of 1978, Pub. L. 95-599 Surface
Transportation Assistance Act of 1982, Pub. L. 97-424
• Surface Transportation and Uniform Relocation Assistance Act of 1987, Pub.
L. 100-17 Buy America Act of 1988, Pub. L. 100-418
• The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A
Legacy for Users, (SAFETEA-LU), Pub. L. 109-59
• The Moving Ahead for Progress in the 21st Century Act, (MAP-21), Pub. L.
112-141 Fixing America’s Surface Transportation (FAST) Act, Pub. L. 114-94
Regulations
• Buy America Requirements, 49 CFR part 661
• Pre-Award and Post-Delivery Audits, 49 CFR part 663
• Federal Acquisition Regulation; Foreign Acquisition, Exempted Articles,
Materials and Supplies, 48 CFR part 25

1.5 Definitions
The definitions below are provided to assist the reader with terms used in the
manual. Definitions from the Pre-Award and Post-Delivery Audits of Rolling
Stock Purchases Rule (49 CFR part 663) and the Buy America Requirements Rule
(49 CFR part 661) are identified in italics. Non-italicized definitions are provided
for clarification to assist the reader in correctly implementing the requirements.
Audit: A review resulting in a report containing the necessary certifications of
compliance with Buy America standards, purchaser’s requirements specifications, and,
where appropriate, a manufacturer’s certification of compliance with or inapplicability
of the Federal Motor Vehicle Safety Standards. (49 CFR § 663.5).
Auditor: Person or persons who verify Buy America compliance and prepare
pre-award and post-delivery reports. Pre-award and post- delivery audits may
be performed directly by recipient staff or by qualified independent auditors. An
auditor conducting the pre- award audit must be qualified and independent from
the manufacturer and the manufacturer’s agents.

FEDERAL TRANSIT ADMINISTRATION

SECTION 1: INTRODUCTION

Component: Any article, material, or supply, whether manufactured or
unmanufactured, that is directly incorporated into the end product at the final assembly
location (49 CFR § 661.11(c)). Appendices B and C to section 661.11 provide lists of
typical components of buses and rail rolling stock, respectively.
End product: Any vehicle, structure, product, article, material, supply, or system,
which directly incorporates constituent components at the final assembly location, that
is acquired for public use under a federally-funded third-party contract, and which is
ready to provide its intended end function or use without any further manufacturing or
assembly change(s). A list of representative end products is included in Appendix A to
49 CFR § 661.3 End Products.
Final assembly: 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. 49 CFR 661.11(r). Minimum final
assembly requirements are described in Appendix D to section 661.11.
FMVSS: Federal Motor Vehicle Safety Standards issued by the National Highway
Traffic Safety Administration under 49 CFR part 571.
Manufactured product: An item produced as a result of the manufacturing
process (49 CFR § 661.3).
Manufacturing process: The application of processes to alter the form or function
of materials or of elements of the product in a manner adding value and transforming
those materials or elements so that they represent a new end product functionally
different from that which would result from mere assembly of the elements or materials
(49 CFR § 661.3).
Post-delivery: The time period in the procurement process from when the rolling
stock is delivered to the recipient until title to the rolling stock is transferred to the
recipient or the rolling stock is put into revenue service, whichever is first (49 CFR §
663.5).
Pre-award: That period in the procurement process before the recipient enters into a
formal contract with the supplier (49 CFR § 663.5).
Recipient: Any entity that is a recipient of Federal financial assistance from FTA (49
CFR § 663.5).
Rolling stock: Buses, vans, cars, railcars, locomotives, trolley cars and buses, ferry
boats, vehicles used for guideways and incline planes. (49 CFR § 663.5).8
8

Note that Section 661.3 defines rolling stock to include vehicles used for support services.
However, pre-award and post-delivery audit requirements do not apply to vehicles used for
support services.

FEDERAL TRANSIT ADMINISTRATION

SECTION 1: INTRODUCTION

Subcomponent: Any article, material, or supply, whether manufactured or
unmanufactured, that is one step removed from a component in the manufacturing
process and that is incorporated directly into a component, but does not include raw
materials produced in the United States and then exported for incorporation into a
component. (49 CFR § 661.11(f) & (h)-(k)).
Supplier: Any entity that provides components or subcomponents which are
incorporated into the vehicle, either as part of the manufacturing process or
during final assembly.
United States: The several States, the Commonwealth of Puerto Rico, the District of
Columbia, Guam, American Samoa, the U.S. Virgin Islands, and the Commonwealth of
the Northern Mariana Islands (49 CFR § 661.3).

1.6 Acronyms
CFR

Code of Federal Regulations

DOT

Department of Transportation

FAQ

Frequently Asked Questions

FAST

Fixing America’s Surface Transportation Act

FMVSS Federal Motor Vehicle Safety Standards
FTA

Federal Transit Administration

OEM

Original Equipment Manufacturer

QA/QC Quality Assurance/Quality Control
U.S.

United States of America

U.S.C.

United States Code

FEDERAL TRANSIT ADMINISTRATION

SECTION

Pre-Award Audit
A recipient purchasing revenue service rolling stock with FTA funds must
ensure that a pre- award audit under [49 CFR part 663] is complete
before the recipient enters into a formal contract for the purchase of
such rolling stock. 49 CFR § 663.21.
The Pre-Award Audit includes making and obtaining required certifications and
reviewing the documentation provided by the manufacturer in support of its
certification. The Pre-Award Audit is undertaken before contract award and is
for the purpose of ensuring that the vehicles delivered by the manufacturer will
comply with Buy America and the contract specifications.
This section addresses the requirements for a pre-award audit conducted
pursuant to the Pre- Award and Post-Delivery Audits of Rolling Stock Purchases
regulations.9 This section also provides some best practices for the recipient,
auditor, manufacturer or supplier, when conducting or participating in a preaward audit. While FTA does not require the use of these best practices, FTA
does encourage all parties to adopt such procedures and processes to the extent
they will help achieve compliance. Sample forms and certifications are provided in
the appendices.

2.1 Requirements for Pre-Award Audit
Recipients of FTA financial assistance purchasing rolling stock must complete
a pre-award audit before entering into a formal contract with a manufacturer.
Recipients may perform the audit processes using internal staff or hire thirdparty auditors to carry out all or some of the review functions on the recipient’s
behalf. In either case, the person(s) conducting the pre-award audit must be
qualified and independent from the manufacturer and the manufacturer’s agents.
Appendix A.2 provides useful pre-award checklists.
There are three certifications that must be included in the pre-award audit:
• Pre-Award Buy America Certification or Pre-Award Buy America
Certificate of Non-Compliance
–– Note: To complete this Certification, the recipient must receive the
Manufacturer’s Certification of Compliance or Non-Compliance with Buy
America Rolling Stock Requirements per 49 CFR § 661.12.
9

49 CFR part 663.

FEDERAL TRANSIT ADMINISTRATION

SECTION 2: PRE-AWARD AUDIT

• Pre-Award Purchaser’s Requirements Certification
• Pre-Award Certification of Compliance with or Inapplicability of
Federal Motor Vehicle Safety Standards (FMVSS)
Table 1.
Pre-Award Audit
Certification
Responsibilities

Recipient

Manufacturer

Solicitation
Pre-Award Buy America Certification (49 CFR § 663.25)

Pre-Award Buy America Certificate of Non-Compliance (if
applicable) (49 CFR § 663.25)

Certification of Compliance or Non-Compliance with Buy
America Rolling Stock Requirements (49 CFR § 661.12)

Pre-Award Purchaser’s Requirements Certification (49
CFR § 663.27)

Pre-Award FMVSS Compliance Certification (49 CFR §
663.41)

Pre-Award Certification of FMVSS Inapplicability (49 CFR §
663.43)

The recipient is responsible for obtaining the Pre-award Buy America
Certification, Purchaser’s Requirement Certification, and the FMVSS
Certification (if applicable) or the Pre-Award Certification of FMVSS
Inapplicability. In order for the recipient to certify Buy America compliance or
that it received a Buy America waiver, the recipient must obtain and keep on
file the bidder’s or the offeror’s (the manufacturer or supplier) Certification
of Compliance (or Non- Compliance) with Buy America Rolling Stock
Requirements.10

2.2 Pre-Award Buy America Certification
The recipient must keep on file a Pre-Award Buy America Certification
that certifies that:
• There is a letter from FTA granting a waiver from the Buy America
requirements for the vehicle procurement, or
• The recipient is satisfied that the rolling stock to be purchased meets
the Buy America requirements after having reviewed itself or through
an audit prepared by someone other than the manufacturer or its agent
documentation provided by the manufacturer which lists—
–– Component and subcomponent parts of the rolling stock to be purchased
identified by manufacturer of the parts, their country of origin and costs;
and

See 49 CFR § 663.25 and 49 CFR § 661.12.

FEDERAL TRANSIT ADMINISTRATION

SECTION 2: PRE-AWARD AUDIT

–– The location of the final assembly point for the rolling stock, including a
description of the activities that will take place at the final assembly point
and the cost of final assembly.11
This subsection describes the Pre-Award Buy America Certification
requirements and recommends best practices to facilitate compliance with the
pre-award audit requirements.
2.2.1

Recipient’s Pre-Award Certification of an
Applicable Buy America Waiver

By statute, the procurement of rolling stock is subject to a waiver from the
requirement that manufactured goods must contain 100 percent domestic
content. Section 5323(j)(2)(C) allows FTA to waive Buy America requirements
for rolling stock procurements by permitting domestic content less than 100
percent.12 The Buy America statute also includes three additional waivers: public
interest waivers; non-availability waivers; and price differential waivers.13 The
procedures for each of these statutory waivers are set forth in 49 CFR § 661.7.
Only waivers based on public interest or non-availability may be granted for a
component or subcomponent in the case of the procurement of rolling stock.14
Generally, recipients, not the manufacturer, must apply for the Buy America
waiver.15 However, a potential bidder, offeror or supplier may seek a public
interest or non-availability waiver for a component or subcomponent.16 Waiver
requests must be made before contract award and the process for obtaining a
waiver is time-consuming. Therefore, recipients or manufacturers or suppliers
who wish to seek a waiver from FTA are encouraged to apply for the waiver as
early as possible in the procurement process.
2.2.2 Documentation for Pre-Award Buy America
Certification (Pre-Award Audit Report)
A recipient’s Pre-Award Audit Report will summarize the process the recipient
has used to verify the proposed manufacturer’s compliance with the Buy America
requirements.
The recipient must maintain a file for FTA review that includes the following
documentation:

49 CFR § 663.25.

49 USC § 5323(j)(2)(C).

49 U.S.C. § 5323(j)(2)(A), (B), and (D).

See 49 CFR § 661.7(f).

49 CFR § 661.9(c).

49 CFR § 661.9(d).

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• A copy of the Pre-Award Audit Report;
• The recipient’s Pre-Award Buy America Certification;
• The manufacturer’s certificate of compliance or non-compliance with
Buy America rolling stock requirements (see Appendices B.1 and B.2 for
certification templates);
• The pre-award purchaser’s requirements certification;
• The manufacturer’s FMVSS certification, if appropriate.
A sample Pre-Award Audit Report is included in Appendix C.1.
The recipient, or an auditor acting on the recipient’s behalf, will review the
supporting cost documents in order to verify the estimated domestic content,
especially if the manufacturer provides such domestic content only as a
percentage. Manufacturers may provide estimated domestic content by cost
either in dollar figures or as percentages of total materials cost. Therefore,
auditors will verify that the manufacturer’s pre-award audit documentation
supports all costs used in developing the domestic content list (worksheet)
and request any additional information necessary in order to verify and certify
compliance with Buy America. In the absence of purchase orders or supplier
quotes, this verification may be based on, among other things, estimates or other
sources used in developing the bid.
Manufacturers may have concerns about recipients’ review of cost data. The
manufacturer and recipient may agree that the recipient will contract with
an external auditor to conduct the manufacturer’s Buy America certification
review—and assure the manufacturer that the cost data will be kept confidential.
Alternatively, a recipient may be able to keep its Buy America audit function
independent by using a “firewall” and assuring the manufacturer that those
employees of the recipient performing the Buy America audit are prohibited
from disclosing any of the manufacturer’s proprietary data. Further, the review
of documents may occur at the manufacturer’s place of business; there is no
requirement that the recipient or its auditors obtain copies of the documents;
they need simply to review them. Whether conducted by a contractor or the
recipient’s employees, the manufacturer may require the auditor to sign a nondisclosure agreement prior to reviewing the documents.
2.2.3 Best Practices for Pre-Award Buy America
Certifications
This subsection describes best practices to aid recipients, auditors,
manufacturers, and suppliers in achieving compliance with the Pre-Award Buy
America Certification requirements. This subsection includes descriptions
of recommended processes and special considerations, beginning with key steps

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that recipients may take early in the solicitation process, as well as processes to
verify compliance with domestic content and U.S. final assembly requirements.
Throughout the vehicle procurement process recipients should be alert to
conditions that could pose challenges for Buy America compliance. Examples of
these conditions include:
• Manufacturers who are inexperienced with the U.S. market and regulations;
• A new subcomponent/component supplier;
• Vehicles with the domestic content close to the minimum threshold;
• Components with the domestic content close to the minimum threshold;
• Manufacturers creating new U.S. final assembly facilities;
• Engineering changes, field modifications or contract change orders causing
changes in project scope (completed projects must comply with Buy America
requirements after all change orders have been implemented for all vehicles).
Recipients may adopt practices to lessen the risks of non-compliance. It is
important to clearly define and communicate the recipients’ processes and
expectations about verifying compliance to manufacturers throughout the
procurement and production periods. Another useful tool that recipients may
use is intermediate audits (see Section 3.1.3.4 for a discussion of Post-Delivery
Domestic Content Monitoring). Some recipients also consider a requirement
that vehicles have domestic content percentages even greater than the required
domestic content percentage for vehicles and/or components to prevent
inadvertent noncompliance with Federal requirements. Further, recipients may
provide incentives for bidders to increase domestic content as long as those
incentives are consistent with Federal and local law.
The following are some recommended best practices for the pre-award audit
stage.
2.2.3.1 Solicitation Phase
As the pre-award audit must be completed prior to the recipient entering into a
formal contract with a manufacturer or supplier, there are several steps that the
recipient may take during the procurement process to help ensure Buy America
compliance.

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Table 2.
Recommended
Discussion Topics
during Solicitation
Phase of Procurement

Buy America requirements, e.g., domestic content requirements, supply chain implications,
manufacturer’s certification, etc.
Recipient & Manufacturer or Supplier’s (Bidder or Offeror) monitoring responsibilities of the
status of compliance during production (e.g., the Resident Inspector program).
Recipient’s processes for conducting Pre-Award, Intermediate and Post-Delivery Audit reviews.
Manufacturer’s procedures for collecting, reviewing, and maintaining supporting documentation.
Recipient’s procedures and requirements for collecting, reviewing, and maintaining supporting
documentation.
Recipient’s procedures for managing requests for waivers from Buy America requirements.
Recipient’s process for selecting a Buy America auditor.

A pre-proposal conference is a good opportunity for recipients to highlight
important Buy America requirements and identify specific Buy America related
documentation that manufacturers will be expected to include in their bids or
produce at the pre-award audit phase. For example, recipients may want to
emphasize that in a competitive sealed procurement, a bidder must submit a
signed certification with the bid. If a bidder submits the wrong certification, or
certifies both compliance and non-compliance, the bid generally will be deemed
non-responsive.17
Also during the solicitation period, recipients will communicate to
manufacturers their expectations for periodic status reporting on Buy America
compliance from the manufacturer(s), including if there are any changes to Buy
America content or final assembly that may occur during vehicle production
due to modifications or substitutes of component or subcomponent suppliers.
Periodic reporting helps prevent post- delivery surprises in changes in domestic
content and potential issues regarding compliance. For reference, a Proposal
Compliance Checklist can be found in Appendix A.1.
2.2.3.2 Verifying Domestic Content Compliance
Preparing and verifying domestic content compliance is a key element of the
pre-award audit process. Errors and misinterpretations during the calculation
process can undermine the overall domestic content percentage and jeopardize
the vehicle’s compliance with Buy America requirements. Please see Section 4,
Domestic Content Calculations, for detailed instructions on calculating domestic
content.
While conducting a pre-award audit, auditors should pay close attention to
components with the highest dollar or percentage values. The impact on the
vehicle’s overall domestic content may be impacted significantly if a high-dollar
component is no longer considered to be of domestic origin under 49 CFR
§ 661.11(g). Section 661.11(g) provides that a component may be considered
17

49 CFR § 661.13(b).

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of domestic origin, if “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.”18 If a component’s
domestic content falls below the minimum threshold at any point during the
production cycle, it could reduce the vehicle’s domestic content percentage
and potentially cause the entire vehicle to fall out of compliance. Therefore,
components with domestic content percentages that are close to the minimum
domestic content threshold should be noted and followed up with during and at
the end of the production cycle.
Similarly, when reviewing the manufacturer’s pre-award documentation, auditors
should pay particular attention to vehicles that are expected to have a total
domestic content that is close to the minimum domestic content threshold.
Subsequent change orders or errors in the calculations or documentation (even
to smaller value components) could potentially alter the total domestic content
and result in noncompliance.
Finally, auditors should confirm that labor costs for final assembly are not
included in the domestic content by cost calculations.19
2.2.3.3 Verifying U.S. Final Assembly
Another essential step in the pre-award audit process is to verify that the
proposed procurement would comply with the U.S. final assembly requirements.
In order to verify that the proposed final assembly activities comply with Buy
America requirements, the recipient must review documentation provided by the
manufacturer to determine whether the manufacturer’s planned final assembly
activities in the United States are adequate to meet the requirements of 49 CFR
§ 661.11 and Appendix D to § 661.11 (required documentation is discussed in
Section 2.2.2).
The specific scope of final assembly activities may vary from manufacturer to
manufacturer and even from vehicle to vehicle. Therefore, in order to verify
compliance, the auditor may perform due diligence through a variety of methods,
including, among other things, reviewing:
• The manufacturer’s flow chart(s) or detailed drawing(s) of the production
work station;
• The manufacturer’s work instructions;
Note that under the September 1, 2106 FTA Policy Guidance, increase in the required domestic
content (i.e., more than 65% or 70%), requires a similar increase in domestic content under 49
CFR § 661.11(g).

49 CFR § 661.11(p).

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• The manufacturing plans;
• The assembly drawings (usually kept or posted on a production (shop)
floor).
Final assembly costs include the proposed direct labor associated with the U.S.
final assembly production line. For the pre-award audit, costs may be established
from the manufacturer’s estimate of hours, subcontractors’ labor quotes, and
actual costs from similar projects. Auditors must collect as much information
as needed to determine whether the final assembly costs reflect the minimum
requirements for final assembly as described in Appendix D to 49 CFR § 661.11.
2.2.3.4 Supplier Buy America Certificate at Pre-Award
The manufacturer is responsible for ensuring that suppliers and subcontractors
comply with Buy America requirements. At the pre-award audit state,
manufacturers will need to demonstrate their process for verifying suppliers’
compliance with Buy America. This may take the form of obtaining certifications
and other documentation or information from suppliers.20 A suggested template
that captures relevant information is discussed in Section 4.5 and a sample is
provided in Appendix B.6, “Sample Supplier Buy America Certification.”
In order to certify compliance, manufacturers and suppliers must be
knowledgeable about the correct method of calculating a component’s
percentage of domestic content. Section 4, “Domestic Content Calculations,”
provides detailed instructions for calculating domestic content.

2.3 Pre-Award Purchaser’s Requirements
Certification
A recipient of FTA financial assistance purchasing revenue service vehicles must
certify pre- award that:
1. The rolling stock it is purchasing is the same product described in its
solicitation specification; and
2. The proposed manufacturer is a responsible manufacturer with the
capability to produce a vehicle that meets the recipient’s specification
(Purchaser’s Requirements).21
A sample Pre-Award Purchaser’s Requirements Certification is provided
in Appendix B.5. This certification must be retained by the recipient and available
for FTA inspection.
While not required, to verify compliance with the pre-award audit and Buy America
requirements, the manufacturer may consider conducting supplier qualification reviews (e.g., via
site visits), detailed reviews of supplier documents, first article inspections, qualification testing,
and source/pre-shipment inspections to verify suppliers’ certifications.

49 CFR § 663.27.

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2.3.1

Best Practices for Purchaser’s Requirements
Certification at Pre-Award

Verification of the information required in the Pre-Award Purchaser’s
Requirements Certification typically is conducted by the recipient’s
procurement office and the technical evaluation team before contract award.
To verify that the proposed manufacturer’s bid complies with the recipient’s
specification, the recipient will compare the solicitation specification for the
vehicle with the proposed manufacturer’s technical bid. A manufacturer’s
technical information can include documentation submitted with the
manufacturer’s bid proposal, including, but not limited to, specifications, product
brochures, technical data sheets, bills of material, drawings, etc.
Recipients also need to assess a proposed manufacturer’s capacity and capability
to produce the specific vehicles. The scope and depth of the assessment will
vary depending on the size and complexity of the procurement and the past
performance of the manufacturer. The solicitation should include requirements
that bidders provide information about their manufacturing capacity and
capability to produce the specified vehicles. This information may include the
following:
• Past performance on previous vehicle orders;
• Qualifications of key personnel;
• Facility layouts/drawings, production line layout/flowchart;
• Plant output capacity (i.e., max. production rate per week);
• Staffing counts by craft;
• Readiness of fixtures for carbody construction;
• Quality assurance and control plan; and
• Other items necessary to execute the work.
Additionally, recipients should verify a manufacturer’s financial viability as part of
the review to certify compliance with the pre-award purchaser’s requirements.
At a minimum, recipients should review the proposed manufacturer’s public
financial statements (if available).

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2.4 Pre-Award Federal Motor Vehicle Safety
Standards (FMVSS) Certification of
Compliance or Inapplicability
The Pre-Award FMVSS Certification is a requirement for most, if not all,
motor vehicle procurements. The National Highway Traffic Safety Administration
(NHTSA) has a legislative mandate under title 49 U.S.C., chapter 301, Motor
Vehicle Safety, to issue FMVSS regulations. The term “motor vehicle” is defined
for the purpose of the statute and regulations that NHTSA administers as “a
vehicle that is driven or drawn by mechanical power and manufactured primarily
for use on public streets, roads, and highways, but does not include a vehicle
operated only on a rail line.” 22 These Federal safety standards are the minimum
safety performance requirements for motor vehicles.
Recipients purchasing motor vehicles, such as buses, must keep on file its
certification that it received, both at the pre-award and post-delivery stage,
a copy of the manufacturer’s self- certification information that the vehicle
complies with the relevant FMVSS or a copy of the manufacturer’s selfcertification that the vehicle is not subject to the FMVSS.23 (See Appendix and
B.7 for sample certifications.)

See 49 U.S.C. § 30102(a)(7).

49 CFR §§ 663.41, 663.43(a).

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SECTION

Post-Delivery Audit
A recipient purchasing revenue service rolling stock with FTA funds must
ensure that a post- delivery audit under this part is complete before title
to the rolling stock is transferred to the recipient, or before the rolling
stock is put into service, whichever is first. 49 CFR § 663.31 and
§ 663.5(b).
This section describes the processes, certifications, and documentation required
to validate the post-delivery audit. Appendix A.3 provides useful post-delivery
checklists.
This section also provides best practices to assist in complying with the
regulations.
The post-delivery audit is similar to the pre-award audit and follows the same
multi-step process as the pre-award audit described in Section 2. In the postdelivery audit, however, recipients verify that the manufacturer complied with
applicable Buy America requirements in the production of the rolling stock and
this verification therefore must be based on actual data rather than plans and
proposals. The conclusions of this review are captured in a Post-Delivery Audit
Report.
Recipients continue to have the ultimate responsibility for ensuring compliance
with all Federal requirements, post-delivery. As discussed in Section 2, Buy
America requirements flow down from the FTA recipients to the manufacturers
through the contract documents.
In turn, the manufacturer has the responsibility to document the domestic
content and the responsibility to maintain documentation that demonstrates
compliance with Buy America regulations.24
Post-delivery, a manufacturer certifies that the requirements of the Buy America
provisions were satisfied for the total vehicle(s) and all of its components, which
includes collecting and evaluating suppliers’ documentation. The manufacturer
will ensure that any Supplier Buy America Certificates (See Appendix
B.6) are valid and can provide to auditors the supplier information necessary to
demonstrate compliance.

49 CFR § 661.15(d).

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Because all parties have a responsibility to ensure compliance by verifying
domestic content percentages and domestic manufacturing locations,
manufacturers will communicate Buy America requirements to their component
suppliers and expect suppliers to perform due diligence of their subcomponent
suppliers.

3.1 Requirements for Post-Delivery Audit
The post-delivery audit period is the “time period in the procurement process
from when the rolling stock is delivered to the recipient until title to the rolling
stock is transferred to the recipient or the rolling stock is put into revenue
service, whichever is first.” 25 As in the pre- award phase, recipients may perform
the audit processes, or use third-party auditors to perform the review functions
on the recipients’ behalf.
The purpose of the post-delivery audit is for recipients to verify that the
built vehicle(s) comply with Buy America requirements, meet the recipient’s
solicitation specification requirements, and if applicable, FMVSS.
Recipients must maintain contract files for the post-delivery phase that include
certifications and supporting documentation. The required certifications are:
• Post-Delivery Buy America Certification;
• Post-Delivery Purchaser’s Requirements Certification (based upon a review
of the Resident Inspector’s Report);
• Post-Delivery Certification of FMVSS Compliance or Inapplicability, when
appropriate.
The findings of the post-delivery audit process must be described in the PostDelivery Audit Report.
3.1.1

Post-Delivery Buy America Certification
Requirements

A review for the Post-Delivery Buy America Certification must be
completed before the vehicle title is transferred to the recipient or before the
rolling stock is placed in revenue service, whichever comes first.
A recipient’s Post-Delivery Buy America Certification certifies either that the
recipient:
• Obtained a letter from FTA granting a waiver from Buy America
requirements for the vehicle procurement; or
• Confirmed, on the basis of an audit prepared by someone other than the
manufacturer or the manufacturer’s agent, that:
25

49 CFR § 663.5(b).

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–– The vehicle(s) contain components that meet or exceed the required
percentage of domestic content, by cost;
–– Final assembly of the vehicles took place in the U.S.; and
–– Final assembly activities were compliant with Buy America requirements.
The review period begins when the rolling stock is delivered to the recipient
and ends before the title transfer or before the rolling stock is placed in revenue
service, whichever comes first. If a waiver was not requested, or the request was
denied, the auditor will verify that the manufacturer has provided enough detail
in its documentation to demonstrate that FTA’s Buy America requirements have
been met.
The recipient must confirm that the manufacturer has complied with U.S. final
assembly requirements and that the cost of components and subcomponents is
greater than the required domestic content percentage of the aggregate cost for
all components. If the manufacturer does not provide sufficient information, the
recipient must seek additional information.
• Buy America-Exempt Rolling Stock Vehicles – if a vehicle is eligible for a
waiver, the recipient must:
–– Obtain a Buy America waiver letter from FTA before a contract is
awarded;
–– Complete a Post-Delivery Buy America Certificate of Non-Compliance
(see Appendix B.9 for sample certification); and
–– Keep the Pre-Award Buy America Certificate of Non-Compliance on file
for future FTA reviews.
3.1.2

Documentation for Post-Delivery Buy America
Certification

A recipient’s Post-Delivery Audit Report summarizes the process the
recipient used to verify the manufacturer’s compliance with the Buy America
requirements.
At the conclusion of the audit, the recipient must maintain a file for FTA reviews
that includes:
• A copy of the Post-Delivery Audit Report;
• The recipient’s Post-Delivery Buy America Certificate;
• The post-delivery purchaser’s requirement certification;
• A manufacturer’s FMVSS certification, when appropriate;
• The manufacturer’s certificate of compliance or non-compliance with Buy
America rolling stock requirements.
A sample Post-Delivery Audit Report is included in Appendix C.2.

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The manufacturer provides the following documents for the Post-Delivery Buy
America Certification:
• A detailed list of components and subcomponents which includes the
manufacturer/supplier and country of origin;
• Cost of each component and corresponding subcomponents;
• Both domestic and foreign content, in dollars or as a percentage;
• The final assembly location;
• Description of all work performed at the final assembly location; and
• Cost of the work performed at the final assembly location.
Although the manufacturer can provide its domestic content worksheet in
terms of percentages rather than dollars, the recipient or its auditor needs to
review supporting actual cost documents in order to verify compliance. The
manufacturer must be able to support all the costs depicted in the domestic
content worksheet and final assembly scope of work. The Post-Delivery Audit
Report should not include confidential data provided to the recipient or an
auditor but should summarize the data reviewed to support the conclusions in
the report.
Manufacturers may have concerns about recipients’ review of cost data. The
manufacturer and recipient may agree that the recipient will contract with
an external auditor to conduct the manufacturer’s Buy America certification
review—and assure the manufacturer that the cost data will be kept confidential.
Alternatively, a recipient may be able to keep its Buy America audit function
independent by using a “firewall” and assuring the manufacturer that those
employees of the recipient performing the Buy America audit are prohibited
from disclosing any of the manufacturer’s proprietary data. Further, the review
of documents may occur at the manufacturer’s place of business. There is no
requirement that the recipient or its auditors obtain copies of the documents
they review. Whether conducted by a contractor or the recipient’s employees,
the manufacturer may require the reviewer to sign a non-disclosure agreement
prior to reviewing the documents.
3.1.3

Additional Information for Post-Delivery
Buy America Certifications

This subsection provides guidance to assist recipients, auditors, manufacturers,
and suppliers in achieving compliance with the post-delivery certification
requirements.

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3.1.3.1 Verifying Domestic Content
As discussed for the pre-award audit, preparing and verifying domestic content
compliance is fundamental to the audit process. Recipients will review and verify
the stated domestic content, by cost; and verify that the final assembly location
and costs confirm that the minimum activities for final assembly are performed in
the U.S.
Auditors will obtain current information on the cost of components
and subcomponents from manufacturers, as illustrated in Section 4. The
manufacturers’ worksheets will note any changes in component suppliers and
component percent domestic content, by cost.
Auditors may validate manufacturers’ worksheets by reviewing paid invoices,
purchase orders, or other source documents. Auditors may link the costs
presented by the manufacturer to the specific source documents. Some auditors
find it useful to add a column to the domestic content worksheet and track costs
associated with specific paid invoices or purchase orders so they can more easily
monitor changes over time.
Auditors will verify that the manufacturer is accounting for all components in its
domestic content calculation and that all components and subcomponents are
properly classified. See Section 4.2.1, “Component/Subcomponent,” for further
discussion on classifying components and determining their classification as being
of domestic or foreign origin.
3.1.3.2 Components with Domestic Content Percentages
Close to the Minimum Threshold
During a post-delivery audit, auditors should direct specific attention to
components with the highest dollar (or percentage) values as well as to
components with domestic content percentages close to the minimum threshold.
Similarly, auditors should also pay particular attention to vehicles with total
domestic content that is very near the minimum threshold. Change orders
and errors (even to smaller value components) could potentially slip the total
domestic content percentage below the requirements.
As discussed in Section 2, Pre-Award Audit, auditors may also need to examine
component suppliers to evaluate whether or not the suppliers have satisfied Buy
America requirements.
3.1.3.3 Reasonableness of Component and
Subcomponent Costs
Auditors should compare costs for components and subcomponents listed
on the manufacturers’ domestic content worksheet to comparable vehicle

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procurement costs. The purpose of this comparison is to check that the
manufacturers’ domestic content worksheet appropriately depicts costs, so
that component costs are not under- or over-valued in an effort to meet the
domestic content requirement for rolling stock procurements. Please see Section
4 for more information on domestic content calculations.
3.1.3.4 Verification of U.S. Final Assembly
In order to verify that final assembly activities comply with Buy America
requirements, recipients must review documentation provided by the
manufacturer that demonstrates:
• That the final assembly site is located in the U.S.;
• That the final assembly activities meet the minimum requirements listed in
Appendix D to 49 CFR § 661.11; and
• The total cost of final assembly, including labor and overhead costs.
Appendix D to 49 CFR § 661.11 provides the minimum requirements for final
assembly of vehicles that manufacturers must meet to comply with Buy America
regulations. The manufacturer’s documentation will provide enough detail to
allow a recipient to determine that its final assembly activities would constitute
adequate final assembly under Buy America requirements.
The scope of final assembly activities may vary from manufacturer to
manufacturer and even from vehicle to vehicle. During a post-delivery audit,
auditors will review the manufacturer’s activities and verify that the manufacturer
performed the final assembly activities in the U.S. This may be accomplished by
reviewing the Resident Inspector Report, when such a report is required.
An auditor may verify compliance through a variety of methods at the postdelivery stage, including, but not limited to:
• Reviewing the manufacturer’s flow chart(s) of the production work station;
• Work instructions;
• QC/QA inspections (hold points);
• Manufacturing plans; and
• Assembly drawings (as would be kept or posted on a shop floor).
In the event an on-site inspector is not required by 49 CFR § 663.37, recipients
will consider whether auditor(s) should make on-site visits to verify final
assembly activities. Site visits may be merited if a final assembly facility is new or
if there are concerns about the manufacturer’s capacity.
If a recipient determines that a manufacturer’s final assembly processes do not
include all the activities that are typically considered the minimum requirements,

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it can request an FTA determination of compliance. FTA will review these
requests on a case-by-case basis to determine compliance with Buy America.
Buy America regulations also require that the manufacturer provide the
cost of U.S. final assembly. While reviewing a manufacturer’s final assembly
documentation, auditors consider the following:
• Whether the manufacturer has provided sufficient documentation for the
cost of final assembly; and
• Whether the manufacturer’s actual total cost for final assembly includes all
costs consistent with the minimum requirements for final assembly contained
in Appendix D to 49 CFR 661.11.
If necessary, auditors should obtain a breakdown of the labor hours and hourly
rates by craft (or a composite rate based on the ratio of the associated skill sets
and supervisory personnel). The auditor should verify that the information the
manufacturer provided is commensurate with the labor actually employed for the
final assembly activity.
3.1.3.5 Supplier Buy America Certificate Documentation
for Buy America Certification at Post-Delivery
The manufacturer is responsible for ensuring that suppliers and subcontractors
comply with Buy America requirements. Suppliers must provide sufficient
documentation to manufacturers that demonstrates compliance with postdelivery audit requirements.
It also is recommended, but not required, that manufacturers obtain executed
(signed and dated) certifications from all their suppliers for the post-delivery
audit. A suggested template that captures the relevant information is provided in
Appendix B.6, “Sample Supplier Buy America Certification.”
In order to certify compliance, manufacturers and suppliers must be
knowledgeable about the correct method of calculating a component’s
percentage of domestic content. Section 4, “Domestic Content Calculations,”
provides detailed instructions for calculating domestic content.
Manufacturers will conduct due diligence when documenting the location
of a supplier’s manufacturing facility for each component (and ideally for
each subcomponent). Manufacturers may perform supplier qualifications,
which include site visits, detailed reviews of supplier documents, first article
inspections, qualification testing, and source/pre-shipment inspection to verify
suppliers’ certifications. Component suppliers executing the certificate have
additional responsibility to verify that subcomponents conform to specified
standards.

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3.1.3.6 Post-Delivery Domestic Content Monitoring
Post-Delivery Domestic Content Monitoring, or intermediate review, is a
recommended best practice that occurs after the vehicle manufacturer delivers
the first vehicle to the recipient and until the vehicle manufacturer transfers
title to the last vehicle to the recipient or the recipient puts the last vehicle into
revenue service, whichever is first. The recipient will complete the Post-Delivery
Audit as described in 49 CFR § 663.5(f) and 49 CFR § 663.33 on the first vehicle
delivered.
The resident inspector, or an agent or employee of the recipient, would perform
the Post-Delivery Domestic Content Monitoring. The purpose of the PostDelivery Domestic Content Monitoring is to ensure that all vehicles after the
first vehicle are compliant with the regulations.
The personnel performing the Post-Delivery Domestic Content Monitoring
monitor all of the following for changes to determine that any changes detected
do not affect the compliance of any vehicle:
• Change Orders
• Changes to the Bill of Materials
• Changes to the assembly or manufacturing processes
• Changes to the final assembly location
• Any changes to the cost or origin of any components and subcomponents
• Any change that would affect the domestic content of the vehicle
If the recipient (or its agent) detects any changes, the recipient (or its agent)
would perform an evaluation to determine if the domestic content of the
vehicles has changed. If the domestic content is below the minimum requirement,
then the recipient should notify the manufacturer of non-compliance and require
the manufacturer to comply with Buy America. If the manufacturer is unable or
unwilling to comply with Buy America on the production vehicles, the recipient
should contact its Regional Office regarding the non-compliance.

3.2 Post-Delivery Purchaser’s Requirements
Certification – 49 CFR § 663.37
This subsection describes the process that recipients will follow in order to
demonstrate compliance with the Post-Delivery Purchaser’s Requirements
Certification in 49 CFR § 663.37.
The Post-Delivery Purchaser’s Requirements Certification certifies that
the delivered vehicles meet the contract specifications, based on the recipient’s
visual inspections, road tests, monitoring of the final assembly process and the
Resident Inspector’s Report of manufacturing activities.

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The intent of the Post-Delivery Purchaser’s Requirements Certification
is to safeguard recipients by ensuring that the delivered vehicles comply with
contract specifications.
3.2.1 Post-Delivery Purchaser’s Requirements
Certification Requirements
Recipients must keep a Post-Delivery Purchaser’s Requirements
Certification on file that certifies:
• When required by 49 CFR § 663.37, a resident inspector (other than an agent
or employee of the manufacturer) was at the manufacturing site throughout
the period of manufacture and completed a report on the manufacture of the
vehicles; and
• After reviewing the Resident Inspector’s Report, and visually inspecting
and road testing the delivered vehicles, the vehicles meet the contract
specifications.
With certain exceptions described below, recipients are required to have
an on-site resident inspector at the manufacturing site throughout the
manufacturing period. The resident inspector must:
• Remain full-time at, or periodically visit, the final assembly location during
the period of manufacture; and
• Visually inspect, participate in, and witness performance tests of the vehicles.
Further, the resident inspector may visit component manufacturing sites, as
necessary, during the period of manufacture of the rolling stock.
The resident inspector must prepare the Resident Inspector’s Report that, at a
minimum, provides:
• Accurate records of all vehicle construction activities (e.g., component
manufacturing processes, final assembly activities, and collected quality
control data); and
• A summary of how the construction and operation of the vehicles meet (or
do not meet) the contract specifications. The report will reference the above
cited manufacturing processes, final assembly activities, and quality control
data.
It is the recipient’s responsibility to verify that the vehicles comply with the
contract specifications and to identify areas of noncompliance. The purpose of
the Resident Inspector’s Report is to assist the recipient in verifying that the
vehicles meet the contract specifications.

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Upon delivery of the vehicles and following receipt and review of the Resident
Inspector’s Report, the recipient must visually inspect and road test the vehicles
to ensure the vehicles meet the contract specifications.
Exceptions for on-site resident inspector. An on-site resident inspector is
not required for (1) procurements of 10 or fewer buses; or (2) procurements
of 20 or fewer vehicles serving rural (other than urbanized) areas, or urbanized
areas of 200,000 people or fewer; or (3) procurements of any number of primary
manufacturer standard production and unmodified vans. 49 CFR § 663.37. For
such procurements, only visual inspection and road testing upon delivery to the
recipient are required to certify compliance with the contract specifications.
3.2.2 Required Purchaser’s Requirements
Documentation at Post- Delivery
Once the recipient has reviewed the Resident Inspector’s Report, successfully
inspected and tested the delivered vehicles, and is satisfied the Purchaser’s
Requirements have been met, the recipient will then:
• Complete a Post-Delivery Purchaser’s Requirements Certification
(see Appendices B.10 and B.11 for sample certifications).
Recipients must maintain a file for future FTA reviews that includes:
• The Post-Delivery Purchaser’s Requirements Certification;
• A copy of the Resident Inspector’s Report and any associated supporting
documentation
• The solicitation specification;
• The manufacturer’s bid specification;
• Authorizations of approved equals; and
• Any other supporting documentation.
3.2.3 Best Practices for Purchaser’s Requirements
Certification at Post-Delivery
While various approaches can be used to verify and document compliance for
the Post- Delivery Purchaser’s Requirements Certification, the following
best practices are presented to assist recipients.
3.2.3.1 Assignment of Resident Inspector to
Manufacturing/Final Assembly Site
The intent of the regulation is to help recipients verify that the vehicles will
comply with its contract specifications. It is not meant to require that a
resident inspector remain “full-time” at the manufacturer’s site throughout the
period of manufacture. Although this may be recommended for some vehicle

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procurements, the resident inspector requirements may be fulfilled with periodic
visits.
3.2.3.2. Resident Inspector’s Report for Purchaser’s
Requirements at Post-Delivery
As previously mentioned, the Resident Inspector’s Report includes, at a
minimum, accurate records of all vehicle construction activities (e.g., component
manufacturing processes, final assembly activities, and collected quality control
data) and a description of how the construction and operation of the vehicles
meet (or do not meet) the contract specifications. Manufacturers will provide
the necessary documentation to complete the review.
As a best practice, the Resident Inspector’s Report and supporting
documentation may include:
• A summary of the Resident Inspector’s Report describing the scope of work
performed on behalf of the recipient. The report would identify all activities
that verify that the vehicle(s) comply with the contract specifications, and
would include inspection qualification, and production testing.
• Recipient’s independent inspections, in addition to the manufacturer’s quality
control (QC). This may be demonstrated by signed inspection reports
(usually by hold point inspections where the manufacturer cannot proceed
with work until the resident inspector’s approval is obtained).
• The vehicle history books provided by the manufacturer and reviewed by the
resident inspector prior to authorization for shipment of the vehicle(s). The
resident inspector would briefly summarize the content of the vehicle history
books provided by the manufacturer and include samples or excerpts that
demonstrate accurate record of vehicle construction activities and adherence
to quality control processes.
• Sample(s) of the Authorization-for-Shipment forms. The forms would include
a sign-off signature by the resident inspector for each vehicle. The forms
would list any open action items at the time of shipment.
• A summary describing how the manufacturer adequately implemented its
QC processes throughout the manufacturing process. The summary would
also address how the manufacturer adhered to appropriate FTA elements
of quality.26 For example, a sample Closed Nonconformance Report would
be included that identifies any corrective rework/repairs that were made
and approved by the recipient or its designated representative. Note that
nonconforming material that was repaired (that is, not fully conforming to
OEM/specification requirements), or that is permitted to be used “as is”
must be approved by the recipient.
See FTA Quality Management System Guidelines, https://www.transit.dot.gov/funding/
procurement/project-management-oversight-pmo.

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• Verification that the manufacturer has maintained complete records of
construction for each vehicle. These documents (typically called car files)
would likely contain details beyond the scope of the Resident Inspector’s
Report such as all of the manufacturer’s quality control (QC) inspections.
• Evidence that delivered vehicles have been inspected and road tested to
confirm they meet contract specifications. The report would include a
summary list of static, dynamic, and performance tests performed on
each vehicle. A sample of key test report results that show sign-offs for
completed tests, failed tests, and any corrective action will also be included.
This summary list of test results would be compared to the contract
specifications to validate that the vehicles meet (or do not meet) contact
specifications. Any elements that do not meet specification requirements
must be accompanied by a contract modification approved by the recipient
and identified in the Resident Inspector’s Report summary.

3.3 Post-Delivery Federal Motor Vehicle
Safety Standards (FMVSS) Certification
of Compliance and Inapplicability
Recipients purchasing motor vehicles must demonstrate that the vehicles comply
with FMVSS as part of the requirement for the post-delivery audit. The recipient
must keep on file the certification that it received a copy of the manufacturer’s
self-certification information that the vehicle complies with FMVSS.27
For FMVSS compliant motor vehicles, the recipient must:
• Obtain the FMVSS self-certification sticker information from the motor
vehicle manufacturer;
Confirm the manufacturer’s FMVSS sticker is affixed to each motor vehicle. [The
sticker is usually located in the interior front curbside of the motor vehicle (see
Appendix B.15–B.19 for sample FMVSS stickers)]; and
• Complete a Post-Delivery FMVSS Compliance Certification (see
Appendix B.12 for a sample certification).
The recipient must keep the manufacturer’s Post-Delivery FMVSS selfcertification information with the FMVSS Compliance Certification in its file.
There are instances when motor vehicles are not subject to FMVSS. Consider,
for example, 49 CFR § 571.7 (Applicability of FMVSS Regulation) and 49 CFR
part 555 (Temporary Exemptions from Motor Vehicle Safety Standards). In
such cases, recipients must keep on file certification that the contracted motor
vehicles are not subject to FMVSS.28
27

49 CFR § 663.41.

49 CFR § 663.43.

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If the contracted motor vehicles are not subject to FMVSS, the recipient must:
• Obtain the manufacturer’s certified statement indicating that the contracted
motor vehicles are not subject to FMVSS;
• Complete a Post-Delivery Certification of FMVSS Inapplicability (see
Appendix B.14 for a sample certification).
The recipient must keep the manufacturer’s Post-Delivery FMVSS exemption
statement with the Pre-Award Certification of FMVSS Inapplicability in its file.

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SECTION

Domestic Content
Calculations
This section provides guidance and clarification on how to calculate domestic
content correctly. It clarifies the distinctions in the treatment of domestic
content for components and subcomponents and offers clarification on how to
determine what is a component versus what is a subcomponent for rolling stock.
The intent is to assist recipients in the verification and validation of domestic
content calculations to verify compliance with the Buy America requirements.
In order to verify compliance with Buy America’s domestic content
requirements, the recipient will need to undertake an analysis that accounts for
the costs of all components and subcomponents, both foreign and domestic,
consistent with 49 CFR § 661.11 and subcomponents. The Domestic Content
Calculation must demonstrate compliance with the requirement that the cost
of components and subcomponents produced in the United States equals or
exceeds the required minimum percentage of the cost of all components and
subcomponents.29 Section 4.3.1 provides guidance to calculate the Vehicle
Material Total Cost, which is the summation of all component costs and is the
proper value that must be used in calculating the percentage of domestic content
of the vehicle consistent with 49 CFR § 661.11.
FTA has observed that some recipients and vendors, or their agents or auditors,
are calculating the domestic content amount by dividing the total costs of the
domestic components by the estimated value of the vehicle, found by subtracting
certain costs from the Contract Total Price of the vehicle. This calculation is not
consistent with 49 CFR § 661.11 and fails to demonstrate compliance.

4.1 Vehicle Level Domestic Content
Calculations
Calculation of the domestic content is conducted at two levels: the vehicle level,
and the component level. Each is somewhat different in nature.
a) At the vehicle level – The rolling stock manufacturer must demonstrate
that the cost of components produced in the U.S. is equal to or more than
the required minimum percentage of the cost of all components on the
vehicle.30 The recipient must verify the manufacturer’s information.
29

49 U.S.C. 5323(j)(2).

49 U.S.C. § 5323(j)(2).

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b) At the component level – For a component to be of domestic origin, more
than 60 percent31 of its subcomponents, by cost, must be manufactured
in the United States, and the manufacture of the component must occur
in the U.S.32 If the component is deemed to be of domestic origin, then
the manufacturer receives credit for the entire cost of the component
(including the foreign subcomponents). If a component contains less than
the minimum domestic content percentage, i.e., is of foreign origin, then
the manufacturer only receives domestic credit for those subcomponents
manufactured in the U.S.

4.2 Domestic Content – Relevant Definitions
For vehicle components to be considered domestic, the subcomponents,
by cost, must be the required minimum percentage of domestic origin, and
manufacturing must occur in the U.S. Therefore, when evaluating domestic
content, it is important to have a full understanding of the manufacturer
of the component, its country of origin, and the percent cost of its
subcomponents relative to the cost of the component.
4.2.1 Component/Subcomponent
A component, as defined in 49 CFR § 661.11(c), 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.33 Typical components of buses and rail rolling stock are listed in
Appendices B and C to 49 CFR § 661.11; these illustrative lists are not intended
to be exhaustive. Also, 49 CFR § 661.11(t), (u), and (v) list specific components
that make-up train control (t), communication equipment (u), and traction power
equipment (v).
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.34 Under
FTA’s September 1, 2016 policy guidance implementing the increased domestic
content included in the FAST Act, the requirement for domestic subcomponents
will increase accordingly. Therefore, if the domestic content for the vehicle is
more than 65 percent, then a component must contain more than 65 percent
As the domestic content percentage increases in FY 2018 and FY 2020, the minimum domestic
content of subcomponents will also increase, to more than 65 percent in FY 2018 and more than
70 percent in FY 2020.

49 CFR § 661.11(g).

See 49 CFR § 661.11(d).

49 CFR § 661.11(g).

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of domestic subcomponents. If a component is determined to be domestic,
its entire cost may be used in calculating the cost of domestic content of the
vehicle.35 If a component is determined to be foreign, only the cost of U.S.
manufactured subcomponents, if any, may be used in calculating the cost of
domestic content of the vehicle.
In contrast, a subcomponent is any article, material, or supply, whether
manufactured or unmanufactured, that is one step removed from a component
in the manufacturing process and that is incorporated directly into a component.
49 CFR § 661.11(f). A subcomponent need only be manufactured in the U.S. to
be considered domestic. 49 CFR § 661.11(h).If a subcomponent manufactured in
the U.S. is exported for inclusion in a component that is manufactured outside
the U.S. 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. 49 CFR §661.11(i)
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. 49 CFR § 661.11(j)
Finally, except as provided in 49 U.S.C. § 5323(j)(5), 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. 49 CFR § 661.11(k). The value of such raw materials is to be included in
the cost of the foreign component.
4.2.2 Lists of Typical Components
The manufacturer’s list of typical components for rail rolling stock is in Appendix
C to 49 CFR part § 661.11, and includes:
• car shells
• engines
• main transformer
• pantographs
• traction motors
• propulsion gear boxes
• interior linings
• acceleration and braking resistors
35

See 49 CFR § 661.11(g).

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• propulsion controls
• low voltage auxiliary power supplies
• air conditioning equipment
• air brake compressors
• journal bearings
• axles
• brake controls
• foundation brake equipment
• articulation assemblies
• train control systems
• window assemblies
• communication equipment
• lighting, seating
• doors
• door actuators and controls
• wheelchair lifts and ramps to make the vehicle accessible to persons with
disabilities
• couplers and draft gear trucks
• diagnostic equipment
• third raid pick-up equipment
The manufacturer’s typical list of components for buses is in Appendix B to 49
CFR part § 661.11:
• car body shells
• engines transmissions
• front axle assemblies
• rear axle assemblies
• drive shaft assemblies
• front suspension assemblies
• rear suspension assemblies
• air compressor and pneumatic systems
• generator/ alternator and electrical systems
• steering system assemblies
• front and rear air brake assemblies
• air conditioning compressor assemblies
• air conditioning evaporator/condenser assemblies

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• heating systems
• passenger seats
• driver’s seat assemblies
• window assemblies
• entrance and exit door assemblies
• door control systems
• destination sign assemblies
• interior lighting assemblies
• front and rear end cap assemblies
• front and rear bumper assemblies
• specialty steel (structural steel tubing, etc.) aluminum extrusions, aluminum,
steel or fiberglass exterior panels
• interior trim, flooring, and floor coverings
At a minimum, the items listed in Appendices B and C of 49 CFR § 661.11
are components for domestic content calculation purposes. If there are new
technologies that supersede the items in Appendices B and C of 49 CFR §
661.11, these should be reviewed to verify that the component/subcomponent
designations applied for that project are consistent with the regulations. If there
is any question of compliance, recipients should consult with FTA.
4.2.3 Calculating Costs of Components and
Subcomponents
The domestic content calculation is based on costs, not the contract price. The
total cost of all components of the rolling stock will not be a number that can be
derived from the bidder’s bid price or final contract price.
As part of the pre-award and post-delivery audit requirements, the recipient
must certify that it “is satisfied that the rolling stock to be purchased” (preaward audit) or “received” (post-delivery) “meets the requirements of [49 U.S.C.
§ 5323(j)(2)(C)] after having reviewed itself or through an audit prepared by
someone other than the manufacturer or its agent documentation provided by
the manufacturer,” which lists:
Pre-Award Audit Documentation

Post-Delivery Audit Documentation

(1) Component and subcomponent parts of the rolling
stock to be purchased identified by manufacturer of
the parts, their country of origin, and costs; and

(1) Components and subcomponent parts of the rolling
stock identified by manufacturer of the parts, their country
of origin, and costs; and

(2) The location of the final assembly point for the
rolling stock, including a description of the activities
that will take place at the final assembly point and the
cost of final assembly.

(2) The actual location of the final assembly point for the
rolling stock including a description of the activities which
took place at the final assembly point and the cost of the
final assembly.

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The methodology for calculating the costs of components and subcomponents is
set forth in FTA’s Buy America regulation at 49 CFR § 661.11. Both manufacturers
and Buy America auditors need to understand section 661.11 in order to
calculate domestic content for rolling stock.
Rolling stock will include components and subcomponents from one of two
sources: (1) outside suppliers; or (2) the bidder. Section § 661.11(m) sets forth
the basic methodology for calculating costs for components or subcomponents
received from suppliers or manufactured by the bidder:
1) 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.
2) 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.
For the post-delivery audit, the actual cost, not the bid price, of a component
is to be considered in calculating domestic content. Thus, the cost for the
component would be the purchase price paid by the bidder (i.e., vehicle
manufacturer) to the component or subcomponent supplier. Similarly, the cost
for the subcomponent would be the actual purchase price paid by the component
supplier to the subcomponent supplier. If the component is manufactured by the
bidder, the cost of the component is calculated by adding 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.
4.2.4 Final Assembly
Manufacturing, as discussed above, refers to the activities that transform the
subcomponents into a new and functionally different component.36 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.37 The allowable costs for components
manufactured by the bidder or offeror (i.e., the OEM) are set forth in 49 CFR §
661.11(m)(2).

See 49 CFR § 661.11(e).

See 49 CFR § 661.11(d).

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Final assembly, in contrast, is the creation of the end product from individual
elements brought together for that purpose through application of manufacturing
processes. Final assembly activities for rail cars and buses are set forth in
Appendix D to 49 CFR § 661.11. Labor costs involved in final assembly shall not
be included in calculating component costs.
In the case of a rolling stock vehicle, while the car body is itself a component
of the completed vehicle, it is also the component onto which the other
components will be installed. Therefore, each item installed directly onto the car
body is a component.
In the case of a railcar, the truck is likewise a component, as it is the structure
onto which the individual components will be installed. Therefore, each item
installed directly onto the truck (frame) would be a component.
The same rationale is applied for other equipment, such as propulsion equipment
and communication equipment. In each case, the individual items that are
installed on the vehicle are components.

4.3 Domestic Content Worksheet
This section illustrates one method for calculating domestic content of rolling
stock. The sample spreadsheet is intended to allow a standard presentation
of domestic content calculations for bus and rail vehicles, as well as facilitate
verification that:
• All components are accounted for in the domestic content calculation and all
of the vehicle’s domestic and foreign content is accounted for.
• The cost of components and subcomponents are calculated in accordance
with 49 CFR § 661.11.
• Each component has been correctly identified as either domestic or foreign
based on the supplier identification and the manufacturing location.
• Each subcomponent has been correctly identified as either domestic or
foreign based on the supplier identification and the manufacturing location.
4.3.1 Domestic Content Worksheet Instructions
Below is a sample of a Domestic Content Worksheet with step-by-step
instructions for filling in the worksheet.38

The worksheet here reflects a domestic content requirement of more than 60%. Pursuant
to 49 U.S.C. 5329(j)(2)(C), the domestic content percentage will increase starting in FY 2018.
This worksheet provides an example of calculating the percentage of domestic content and
uses the greater than 60% domestic content percentage requirement in place at the time of the
FAST Act’s passage. The worksheet can be modified to accommodate vehicles subject to higher
domestic content.

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For simplicity, the vehicle consists of three components, one of which is
manufactured by the bidder (i.e., the OEM), one is of foreign manufacture,
and one is manufactured by a U.S. supplier. Those cells that are colored gray
or white are intended for input based on documentation provided by the
manufacturer. Other cells highlighted in yellow are calculated based on the
information input to the worksheet.
Component 1 is manufactured by the OEM, contains more than 60%
domestic content by cost, and is manufactured in the United States. Thus,
the component is of domestic origin and the entire cost of the component
may be used to calculate the domestic content of the vehicle. 49 CFR §
661.11(g). Because Component 1 is manufactured by the OEM, the cost
of the component includes the labor and materials incorporated into the
component, an allowance for profit and the administrative and overhead
costs attributable to that component or subcomponent under normal
accounting principles. 49 CFR § 661.11(m)(2).
Component 2 is manufactured overseas, contains less than 60% domestic
content, and the U.S. subcomponents contained in the component received
a tariff exemption. Thus, the U.S. subcomponents retain their domestic
identity and can be included in the calculation of the domestic content of
the vehicle. The manufacturing and transportation costs are included in
calculating the cost of the foreign component. 49 CFR § 661.11(i), (m)(1).

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Component 3 is manufactured in the U.S., but contains less than 60%
domestic content. 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. 49 CFR § 661.11(l).
STEP 1
In Component/Subcomponent column, fill in all vehicle components. The list
of items that typically would be considered components of rolling stock
identified in Appendices B and C to 49 CFR part § 661.11 is not all-inclusive.
Identify components and subcomponents by name and/or part number
traceable to the procurement. For each component, fill in the corresponding
subcomponents as applicable. Identify subcomponents as separate line
items. For components manufactured by the OEM, include a line for OEM
labor/overhead/profit per section 661.11(m)(2). In Supplier Name column, fill in
supplier’s name for each component and corresponding subcomponent(s).

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STEP 2
In the first Manufacturing Location column, for each component enter U.S. or
Foreign. For each subcomponent, enter U.S., U.S. with tariff exemption, or
Foreign.

STEP 3
In the second Manufacturing Location column for each component and
corresponding subcomponent(s), fill in the City and State for U.S. or the City and
Country for Foreign.

STEP 4
In Component Total Cost row, fill in the component total cost. If the component
was manufactured by the OEM, the cost of the component will include an
allowance for profit and the administrative and overhead costs attributable
to that component under normal accounting principles. 49 CFR § 661.11(m)
(2). If the component was manufactured by a third-party supplier, then the
component total cost is the actual cost of component. If the component is
manufactured overseas, the cost of the component is what the OEM pays for it,
plus transportation costs to the final assembly location. 49 CFR § 661.11(m)(1).
If a component is manufactured in the United States, but contains less than the
minimum domestic content, by cost, the cost of the domestic subcomponents

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and the cost of manufacturing the component may be included in the calculation
of the domestic content of the end product. 49 CFR § 661.11(l).

STEP 5
In Component and Subcomponent Material Costs columns:
a) For each component, enter the dollar amount of the corresponding
subcomponent(s) under the U.S. and Foreign sub-columns, on the
designated row(s). The cost of each subcomponent is the price the
OEM must pay to a subcontractor or supplier for that subcomponent.
Transportation costs to the final assembly location must be included in
calculating the cost of foreign subcomponents. 49 CFR § 661.11(m)(1). If a
component or subcomponent is manufactured by the bidder or offeror, an
allowance for profit, and the administrative and overhead costs attributable
to that component or subcomponent under normal accounting principles
may be included. 49 CFR § 661.11(m)(2)

b) Compute the material subtotal cost for each component by adding the cost
of all of its U.S. and Foreign corresponding subcomponents, and enter on
the row designated Component Material Subtotal under the U.S. and Foreign
sub-columns as applicable.

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STEP 6
In Subcomponent % of Component and Component Total % columns:
a) For each component, compute the material cost percentage of each of
its U.S. and Foreign corresponding subcomponents, and enter on the
designated rows under U.S. and Foreign sub-columns as applicable. This
percentage is calculated by taking the cost of the subcomponent and
dividing it by the total cost of the component.

b) Calculate the total percentage by cost of U.S. content by dividing the
U.S. Subcomponents Subtotal into Component Total Cost. Calculate the total
percentage by cost of foreign content by dividing the Foreign Subcomponents
Subtotal into Component Total Cost. These two numbers should total 100%.

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STEP 7
In U.S. Content by Cost column and on the row designated Component 1 Total Cost
for each component, enter the total U.S. and Foreign material costs for that
component.
a) If the component is of domestic origin (manufactured in the U.S.) and its
subcomponents equal the required minimum percentage (U.S. content >60%
(or 65% in FY 18 and 19, or 70% in FY20), the whole component by cost is
domestic.

b) If the component is domestic and its subcomponents contain less than
the required domestic minimum percentage, then add the total of only
U.S. subcomponent material costs as well as the cost to manufacture the
component, on the row Component 3–U.S. & Foreign Costs Subtotal to the
column U.S. Content by Cost.

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c) If the component is foreign and the U.S. subcomponents being
incorporated into the foreign component receive a tariff exemption,39
then add the total of only U.S. subcomponent material costs on the row
Component 2 Material Subtotal, to the column Content by Cost.

STEP 8
In Component % of Vehicle columns under U.S. and Foreign sub-columns, for each
component, enter its U.S. and Foreign material cost percentage in relation to the
total vehicle content percentage on the row designated Vehicle Material Total Cost
under U.S. and Foreign sub- columns as applicable. Calculate the percentage as
follows:
a) If the component is of domestic origin and the minimum percentage of the
subcomponents of that component by cost are domestic, then divide the
cost on the row designated U.S. Content into the row designated Vehicle
Material Total Cost. There will only be an entry for the Component % of
Vehicle columns under the U.S. sub-column. The Foreign sub-column should
record zero percentage.

For more information on tariff exemptions, see 49 CFR § 661.11(i).

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b) If the component is domestic and contains less than the required minimum
domestic components by cost, you will need to calculate the total
percentage of domestic and foreign content. Divide the cost on the row
designated U.S. Content into row designated Vehicle Material Total Cost.

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STEP 9
Add up all the percentages in the column Component % of Vehicle Material and the
corresponding U.S. and Foreign sub-columns to determine the overall domestic
content of the vehicle.

4.4 Special Considerations
This section discusses the best practices for special considerations encountered
in the domestic content calculations.
4.4.1

Exchange Rates

The Buy America rule 49 CFR § 661.11(n) states “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 manufacturer will also use
the same exchange rate(s) to calculate the foreign component cost for the postdelivery audit and submit to the recipient’s auditor for verification.
4.4.2 Transportation Costs
Transportation costs to the U.S. final assembly location must be included in
calculating the cost of foreign components and foreign subcomponents. For
components/subcomponents manufactured outside the U.S., the cost for

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transportation must be included in the foreign content total (even if a U.S.
shipping company or vessel is used).40
4.4.3 Tariff Exemptions
If a tariff exemption is claimed for U.S. subcomponents of foreign manufactured
components, the manufacturer must keep on file, for review by an auditor, proof
of the tariff exemption for such items, in accordance with 49 CFR § 661.11(i) and
(j). In turn, this requirement refers to the Code Harmonized Tariff Schedule in 19
U.S.C. 1202, which requires specific declarations/ forms.
In the event these declarations and/or forms may be difficult to acquire for a Buy
America audit, the auditor may accept alternate form(s) of documentation, which
proves that the duty was not paid. These may include NAFTA affidavits, Purchase
Orders, or letters/emails from responsible parties.

4.5 Manufacturer Documentation
The recipient’s final pre-award and post-delivery audit reports will not include
confidential and proprietary information shared with the recipient or its auditor.
Rather, the report is likely to include a list of components and their domestic
content as a percentage. However, manufacturers should be mindful that
FTA may audit a rolling stock’s procurement’s compliance with Buy America.
Therefore, it is a best practice for manufacturers to maintain detailed records of
the information and documentation shared with the recipient, particularly for the
post-delivery audit.
Another best practice is for the manufacturer to require its suppliers to
complete a Buy America Supplier Certificate for any item for which domestic
content is being claimed. Appendix B.5 provides a sample Supplier Buy America
Certification template for bus and rail vehicles. The Buy America Supplier
Certificate is the supplier’s certification of its domestic content and U.S.
manufacturing for the products being provided for this procurement.
The instructions for completing the certification are as follows.

49 CFR § 661.11(m)(1).

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STEP 1
Fill in the supplier’s contact information in the designated space at the top part of
the form.

STEP 2
Fill in the vehicle manufacturer’s name and vehicle/contract/purchase order
number that connects this certificate to the specific procurement project.

STEP 3
Identify which of the three calculation scenarios apply for each component by
checking the respective box.
a) Check the first box if the component is manufactured in the U.S. and the
required percentage of its subcomponents, by cost, are manufactured
in the U.S. In this case, 100% of the cost of the component is domestic
content.
b) Check the second box if the component is manufactured in the U.S. and
less than the required percentage of its subcomponents, by cost, are
manufactured in the U.S. In this case, the cost of the U.S. subcomponents
and the manufacturing costs of the component (considered to be the
difference between the cost of the foreign subcomponents and the total
cost of the component) are included in the domestic content calculation.
c) Check the third box if the component is NOT manufactured in the
U.S. but does contain U.S. subcomponents for which the supplier
has documentation showing tariff exemption. In this case, the cost
to manufacture the component and transportation costs to the final
assembly location must be included in the foreign content calculation.

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Calculate the cost of U.S. subcomponents by dividing the cost of U.S.
subcomponents by the cost of all subcomponents for each component. Use extra
pages as needed to cover all components and subcomponents in the supplier’s
scope of provision.

STEP 4
List each component and its subcomponents on the designated rows. Identify
Components by name and part number traceable to the subject procurement.
a) Indicate the manufacturing location for each component and subcomponent
in the designated space.
b) Indicate the component’s percentage of domestic subcomponents for each
component in the designated space.
c) Indicate each subcomponent’s percentage of the component’s domestic
content in the designated space; the sum of the domestic content
percentages of all subcomponents will add up to the total domestic
content percentage of the component.

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STEP 5
Sign and date the form by an authorized official of the supplier. Print the name
and title of the signatory beneath the signature line.
Information on this form is subject to audit by the Purchaser (i.e., recipient of
federal funds, and/or by the FTA and/or its agents).

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SECTION

Frequently Asked
Questions
This section addresses some of the most frequently asked questions about
pre-award and post- delivery audit. This guidance is for information only. The
responses do not constitute a determination of compliance with the Department
of Transportation (DOT) rules and standards.

5.1 General
5.1.1

Who must conduct the pre-award and postdelivery audits?

The recipient, or auditor appointed by the recipient, must conduct the audits.
The auditor may not be an employee of the manufacturer or its agent. In many
instances, a recipient will retain the services of a consultant to conduct the audit.
5.1.2

When will the Buy America pre-award audit be
conducted?

The law requires that the recipient must conduct a pre-award audit to confirm
compliance with Buy America regulations prior to award of the contract.
The recipient’s executed Pre-award Buy America certificate and Pre-award
Purchaser’s Requirements certificate must be signed and dated prior to contract
award.
5.1.3

When will the Buy America post-delivery audit be
conducted?

The recipient must conduct a post-delivery audit prior to transfer of title of
the rolling stock, or prior to the rolling stock being put into revenue service,
whichever is first. The timing of the post-delivery audit is typically identified in
the contract documents. “A recipient purchasing revenue service rolling stock
with FTA funds must ensure that a post-delivery audit … is complete before
title to the rolling stock is transferred to the recipient.”41 The post-delivery
audit will be performed on the first vehicle so as to quickly remedy any potential
compliance problems.
The recipient should consider several factors in determining the appropriate time
to verify that all material and work performed for the entire contract (including
49 CFR § 663.31. In the definitions section, § 663.5 defines “post-delivery” as “the time period
in the procurement process from when the rolling stock is delivered to the recipient until
title to the rolling stock is transferred to the recipient or the rolling stock is put into revenue
service, whichever is first.”

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the last vehicle and all change orders) meets the Buy America requirements.
A post-delivery audit is performed just prior to the transfer of title or entry
into revenue service of the first vehicle, whichever comes first. For small
procurements with short post-delivery periods, an audit conducted at that
time may be sufficient. However, the recipient may consider whether an audit
conducted on the first vehicle is sufficient to verify the actual domestic material
content for the entire order. Because the post-delivery audit is conducted on
the first vehicle, the recipient may need to conduct additional verifications to
confirm that the full order satisfies the Buy America requirements, particularly if
there are changes made in materials or scope after the first post-delivery audit.
In certain cases, particularly on large orders with multi-year delivery schedules,
recipients may find it appropriate to conduct Post-Delivery Domestic Content
Monitoring as described in Section 3, to minimize the risk that subsequent
vehicles in the order do not meet Buy America Requirements.
5.1.4

Do pre-award and post-delivery audits have to be
conducted for procurements of support vehicles
and wayside equipment?

No. The requirement to conduct pre-award and post-delivery audits only applies
to rolling stock intended to carry passengers in revenue service, which include
buses, vans, cars, railcars, locomotives, trolley cars and buses, ferry boats, and
vehicles used for guideways and incline planes (49 CFR §§ 663.3 and 663.5(e)).
Support vehicles and wayside equipment must comply with Buy America, but
there is no requirement for pre-award and post-delivery audits.
5.1.5

Do support vehicles have to meet the minimum
domestic content requirement and final assembly
in U.S.?

Yes. All rolling stock, including support vehicles, must meet the requirements of
the Buy America regulation, namely that final assembly of the rolling stock takes
place in the United States, and that greater than 60% (65% in FY18 and FY19, 70%
in FY20) of the cost of all components be U.S. manufactured.

5.2 Buy America Certification
5.2.1 Does a Buy America certification need to be
conducted for every procurement,42 even if
identical vehicles are being purchased from the
same contractor year after year?
Yes. A manufacturer’s past compliance with the Buy America rule does not mean
that the manufacturer’s products will always be compliant. Changes in design and
Refers to a single procurement (even if multi-year), a multi-state procurement, and/or multiple
individual procurements by several recipients or subrecipients.

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technical developments, as well as changing suppliers and scope of manufacturing
and/or final assembly, may make new products noncompliant. In the case that
pre-award and post-delivery audits have been conducted for a given vehicle, the
same information may be used to demonstrate compliance at a later date as long
as it is verified and documented that there have been no changes made affecting
compliance since the last certification.
5.2.2 Is the domestic content threshold calculated
as a percentage of the total vehicle price?
No. The domestic content threshold is calculated as a percentage of the total
cost of all components, excluding the cost for final assembly of the vehicle. The
cost of an individual domestic component is the price a vehicle manufacturer
pays a supplier for that domestic component. For foreign components, the cost
of the individual foreign component is the price a vehicle manufacturer pays the
foreign supplier for that individual foreign component, plus transportation costs.
49 CFR § 661.11(m)(1).
All non-recurring expenses such as engineering, mockups, fixtures/tooling, spare
parts, manuals, and training also are excluded from the Buy America component
calculations.
5.2.3 How is the origin of a component determined?
A component is considered to be of domestic origin if more than the required
percentage, by cost, of the subcomponents of that component are of domestic
origin, and component manufacturing takes place in the United States. If the
component meets these requirements, the entire cost of the component may be
counted as domestic content in the Buy America calculation of the vehicle.
The cost of an individual domestic subcomponent is the price a subcomponent
manufacturer pays a supplier for that domestic subcomponent. For foreign
subcomponents, the cost of the individual foreign subcomponent is the price
a manufacturer pays the foreign supplier for that foreign subcomponent plus
transportation costs. 49 CFR § 661.11(m)(1).
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. 49 CFR § 661.11(d).
5.2.4 How is the origin of a subcomponent determined?
Subcomponents manufactured in the United States are considered to be
domestic.
Subcomponents manufactured in the United States and exported for inclusion
in a component manufactured outside the United States are considered to

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be of domestic origin if they received a documented tariff exemption for
importation back into the United States. If this is the case, then the cost of the
subcomponent may be included in the component’s domestic content calculation.
The cost of the subcomponent at the time of export is the cost that should be
used in the calculation. If the subcomponent has not received a tariff exemption,
then it may not be included in the domestic content calculation, and will be
counted as foreign content.
Raw materials exported for use in a component manufactured outside the
United States, are not considered to be a subcomponent for the purpose of
calculating domestic content. The value of those raw materials is included in the
cost of the foreign component. 49 CFR § 661.11(k).
5.2.5 Do the subcomponents have to be broken down
into sub- subcomponents?
No. The Buy America regulation does not extend down to the subsubcomponent level for Buy America calculation purposes.
5.2.6 Are the costs of both domestic and foreign
subcomponents used in the Buy America
Domestic Content Calculation for Components?
The entire cost of a component is used in its content calculation. A component
is considered domestic if it is manufactured in the United States and its
subcomponents have the required domestic content percentage43 by cost. 49
CFR § 661.11(g). If this is so, then the entire cost (selling price) of the component
can be claimed as domestic content, including its foreign subcomponents.
5.2.7 Do only components of domestic origin contribute
towards the domestic Buy America calculations?
No. Domestic subcomponents of components manufactured in the United
States that do not contain the required minimum percentage of domestic
subcomponents, by cost, and domestic subcomponents incorporated into
foreign-manufactured components that received a tariff exemption for
importation back into the United States, also may be used in the Buy America
domestic content calculation. For example, if a component manufactured in the
U.S. contains 20 percent of its subcomponents manufactured in the U.S. and 80
percent of its subcomponents manufactured outside the U.S., the manufacturer
receives credit for the cost of the 20 percent of U.S. subcomponents.

Minimum threshold is more than 60% for FY16 and FY17, more than 65% for FY18 and FY19, and
more than 70% for FY20.

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5.2.8 If a component contains less than the
required minimum percentage of domestic
subcomponents, how would it be used in the
calculation?
If a component is manufactured in the U.S., only the cost of the domestic
subcomponents and the cost of manufacturing the domestic component are
included in the calculation of the domestic content of the end product. 49 CFR
§ 661.11(l). The cost of its foreign subcomponents must be counted as foreign
content.
5.2.9 Can components from foreign sources with
domestic subcomponents be used in the
calculation?
Yes. If foreign-manufactured components have domestic subcomponents that
received a tariff exemption for importation back into the United States, then the
cost of those domestic subcomponents may be used in the domestic content
calculation. The cost of manufacturing the component, and the overhead costs
associated with manufacturing that component, plus the cost of transporting the
component, may not be used in the domestic content calculation, because it has
been manufactured outside of the United States.
5.2.10 How are currency exchange rates addressed for
Buy America audits?
The cost of a component of foreign origin is set using the foreign exchange rate
at the time the bidder or offeror executes the Buy America certificate. 49 CFR §
661.11(n). However, large projects with long post-delivery periods and economic
fluctuations can affect material costs between the times of the pre-award and
post-delivery audits. In all cases, component and subcomponent costs paid in
other than U.S. currency must use exchange rates as of the date of the supplier’s
executed supplier Buy America certificate. The post-delivery audit needs to
verify the actual costs paid to suppliers for all components and subcomponents.
5.2.11 Can systems be components for domestic
content calculations? Examples would be air
compressor and pneumatic systems, electrical
systems, and train control systems.)
Yes. Pursuant to Appendix B to § 661.11, “Typical Components of Buses,” the
following systems are identified as components: air compressor and pneumatic
systems, generator/alternator and electrical systems, steering system assemblies,
heating systems, and door control systems. In addition, pursuant to Appendix C

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to § 661.11, “Typical Components of Rail Rolling Stock,” the following systems are
identified as components: train control systems.
5.2.12 What if the manufacturer is concerned about
releasing proprietary information?
If the manufacturer is concerned about releasing proprietary information, the
manufacturer and recipient may agree that the recipient will contract with
an external auditor to conduct the manufacturer’s Buy America certification
review—and assure the manufacturer that the cost data will be kept confidential.
Alternatively, a recipient may be able to keep its Buy America audit function
independent by using a “firewall” and assuring the manufacturer that those
employees of the recipient performing the Buy America audit are prohibited
from disclosing any of the manufacturer’s propriety data. Further, the review
of documents may occur at the manufacturer’s place of business; there is no
requirement that the recipient or its auditors obtain copies of the documents;
they need simply to review them. Whether conducted by a contractor or the
recipient’s employees, the manufacturer may require the reviewer to sign a nondisclosure agreement prior to reviewing the documents.

5.3 Purchaser’s Requirements Certification
5.3.1 What is the responsibility of the resident
inspector?
A resident inspector is required to visit the manufacturer’s final assembly facility
during the manufacturing period for purchases of more than 10 buses intended
for revenue passenger service. The inspector must prepare a report summarizing
how the construction and operation of the vehicles meet (or do not meet) the
terms of the contract and provide accurate records of all vehicle construction
activities. The intent of the requirement44 is to help recipients ensure that the
vehicles will comply with their contract specifications.
The recipient must ensure that the resident inspector’s report satisfies all
requirements of the regulations. It is the recipient’s responsibility to ensure the
vehicles comply with contract specifications, and the purpose of the resident
inspector’s report is to assist the recipient in verifying that the vehicles meet the
required specifications.
5.3.2 Where the contract provides for more than one
post-delivery period, must the recipient conduct a
post-delivery audit for each delivery period?
Yes. When a contract provides for multiple deliveries and the post-delivery
periods are scheduled at substantially different time intervals, such as 6 months
44

49 CFR § 663.37(a).

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or 1 year apart, the recipient must complete a post-delivery audit for each
period. This does not mean that a separate audit is required for each vehicle
within a post-delivery period.

5.4 FMVSS Certification
5.4.1

Which FMVSS certifications are required?

Title 49 CFR part 571 covers all Federal Motor Vehicle Safety Standards.
Examples of the types of FMVSS certifications are included in this Handbook in
Appendices B.7, B.8, B.13, and B.14.
5.4.2 Must ADA compliant vehicles be FMVSS
certified?
Yes. All motor vehicles subject to the FMVSS regulations must be certified to
meet the applicable standards.

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APPENDIX

Checklists
A.1 Proposal Compliance Checklist

See 49 U.S.C. §26.49.

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APPENDIX A: CHECKLISTS

A.2 Pre-Award Checklists
A.2.1 Recipient at Pre-Award Audit

A.2.2 Manufacturer at Pre-Award Audit

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APPENDIX A: CHECKLISTS

A.2.3 Pre-Award Audit Purchaser’s Requirements Certification for
Recipients
For Pre-award Purchaser’s Requirements Certification, the recipient must verify that the rolling stock
the recipient is contracting for is the same product described in the purchaser’s solicitation specification,
and the proposed manufacturer is a responsible manufacturer with the capability to produce a vehicle
that meets the recipient’s solicitation specification. Recipients may employ a combination of different
departments or third parties to conduct these verifications. In such case, the party responsible for
verification will sign/initial the items in their scope. The following items represent a checklist of the tasks
to complete the pre-award purchaser’s requirements audit.

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APPENDIX A: CHECKLISTS

A.2.4 Comparison of Manufacturer’s Specification with Purchaser’s
Solicitation Specification
As part of the Pre-award Purchaser’s Requirements Certification process, the recipient shall verify
that the rolling stock the recipient is contracting for is the same product described in the purchaser’s
solicitation specification. The following items would typically be considered for this review.

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APPENDIX A: CHECKLISTS

A.3 Post-Delivery Checklists
A.3.1 Recipient at Post-Delivery Audit

A.3.2 Manufacturer at Post-Delivery Audit

A.3.3 Supplier at Post-Delivery Audit

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APPENDIX A: CHECKLISTS

A.3.4 Resident Inspector’s Report for Post-Delivery Purchaser’s

Requirements Certification
For the Post-delivery Purchaser’s Requirements Certification, the recipient shall review and retain the
resident inspector’s report of the recipient’s oversight of the period of manufacture of the rolling stock
being purchased. The following items would typically be included in the resident inspector’s report
documentation, as applicable.

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APPENDIX

Certificates and Forms
The forms provided in this Appendix are samples only, intended to provide
guidance to recipients. The first two forms, B.1 and B.2, track the regulation and
therefore the format is required. The other forms may be modified to suit the
needs of the recipient, as long as the form developed by the recipient includes
the information required by the regulations.

B.1 Certificate of Compliance with
Buy America Rolling Stock
Requirements

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APPENDIX B: CERTIFICATES AND FORMS

B.2 Certificate of Non-Compliance with
Buy America Rolling Stock Requirements

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APPENDIX B: CERTIFICATES AND FORMS

B.3 Sample Pre-Award Buy America Certification

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APPENDIX B: CERTIFICATES AND FORMS

B.4 Sample Pre-Award Buy America Certificate
of Non-Compliance

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APPENDIX B: CERTIFICATES AND FORMS

B.5 Sample Pre-Award Purchaser’s Requirements
Certification

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APPENDIX B: CERTIFICATES AND FORMS

B.6 Sample Supplier Buy America
Certification
Instructions for Completing Buy America Supplier Certificate
The manufacturer may require suppliers to complete a Buy America Supplier
Certificate for any item for which domestic content is being claimed. The Buy
America Supplier Certificate is the supplier’s legal attestation of its domestic
content and location of manufacturing for the products being provided for the
procurement.
1. Fill in the supplier’s contact information in the designated space at the top
part of the form.
2. Fill in the vehicle manufacturer’s name and the vehicle/contract/purchase order
number that connects the certificate to the specific procurement project.
3. Identify which of the three calculation scenarios apply for each component
by checking the respective box.
a) Check the first box if the component is manufactured in the U.S. and
more than the required percentage of its subcomponents, by cost, are
manufactured in the U.S.
b) Check the second box if the component is manufactured in the U.S. and
has less than the required percentage of its subcomponents, by cost,
manufactured in the U.S.
c) Check the third box if the component is NOT manufactured in the
U.S. but does contain U.S. subcomponents for which the supplier has
documentation showing a tariff exemption.
The cost of U.S. subcomponents is calculated by dividing the cost of U.S.
subcomponents by the cost of all subcomponents for each component.
Generally, the cost of each subcomponent is the price the bidder or offeror paid
to the supplier for the subcomponent. Transportation costs to the final assembly
location must be included in calculating the cost of foreign subcomponents. 49
CFR § 661.11(m)(1). For exceptions, see 49 CFR § 661.11(o).
Use extra pages as needed to cover all components and subcomponents in the
supplier’s scope of provision.
4. List each component and its subcomponents on the designated rows.
Components should be identified by name and/or part number traceable to
the subject procurement.

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APPENDIX B: CERTIFICATES AND FORMS

a) Indicate the manufacturing location for each component and subcomponent
in the designated space;
b) Indicate the component’s percentage of domestic subcomponents for each
component in the designated space;
c) Indicate each subcomponent’s percentage of the component’s domestic
content in the designated space; the sum of all the subcomponents’ domestic
content percentages will equal the domestic content percentage of the
component.
5. The form must be signed and dated by an authorized official of the supplier.
Print the name and title of the signatory beneath the signature line.
Information on this form is subject to audit by the Purchaser, i.e., recipient of FTA
funds, and/or by the Federal Transit Administration (and/or its agents).

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APPENDIX B: CERTIFICATES AND FORMS

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APPENDIX B: CERTIFICATES AND FORMS

B.7 Sample Pre-Award FMVSS Compliance Certification

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APPENDIX B: CERTIFICATES AND FORMS

B.8 Sample Pre-Award Certification of FMVSS
Inapplicability

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APPENDIX B: CERTIFICATES AND FORMS

B.9 Sample Post-Delivery Buy America Certification

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APPENDIX B: CERTIFICATES AND FORMS

B.10 Sample Post-Delivery Buy America Certificate of
Non-Compliance

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APPENDIX B: CERTIFICATES AND FORMS

B.11 Sample Post-Delivery Purchaser’s Requirements
Certification (More Than Ten Buses or Modified Vans)

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APPENDIX B: CERTIFICATES AND FORMS

B.12 Sample Post-Delivery Purchaser’s Requirements
Certification (Ten or Fewer Buses or Modified Vans,
or any Number of Unmodified Vans)

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APPENDIX B: CERTIFICATES AND FORMS

B.13 Sample Post-Delivery FMVSS Compliance
Certification

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APPENDIX B: CERTIFICATES AND FORMS

B.14 Sample Post-Delivery Certification of FMVSS
Inapplicability

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APPENDIX B: CERTIFICATES AND FORMS

B.15 Sample Completed Vehicle FMVSS Sticker

B.16 Sample Altered Vehicle Manufacturer’s FMVSS Sticker

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APPENDIX B: CERTIFICATES AND FORMS

B.17 Sample Incomplete Vehicle Manufacturer’s FMVSS
Sticker

B.18 Sample Intermediate Vehicle Manufacturer’s FMVSS
Sticker

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APPENDIX B: CERTIFICATES AND FORMS

B.19 Samples of Final-Stage Vehicle Manufacturer’s

FMVSS Stickers

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APPENDIX

Sample Buy America
Audit Reports

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APPENDIX C: SAMPLE BUY AMERICA AUDIT REPORTS

C.1 Pre-Award Audit Reports

FEDERAL TRANSIT ADMINISTRATION

APPENDIX C: SAMPLE BUY AMERICA AUDIT REPORTS

FEDERAL TRANSIT ADMINISTRATION

APPENDIX C: SAMPLE BUY AMERICA AUDIT REPORTS

FEDERAL TRANSIT ADMINISTRATION

APPENDIX C: SAMPLE BUY AMERICA AUDIT REPORTS

FEDERAL TRANSIT ADMINISTRATION

APPENDIX C: SAMPLE BUY AMERICA AUDIT REPORTS

FEDERAL TRANSIT ADMINISTRATION

APPENDIX C: SAMPLE BUY AMERICA AUDIT REPORTS

FEDERAL TRANSIT ADMINISTRATION

APPENDIX C: SAMPLE BUY AMERICA AUDIT REPORTS

FEDERAL TRANSIT ADMINISTRATION

APPENDIX C: SAMPLE BUY AMERICA AUDIT REPORTS

FEDERAL TRANSIT ADMINISTRATION

APPENDIX C: SAMPLE BUY AMERICA AUDIT REPORTS

FEDERAL TRANSIT ADMINISTRATION

APPENDIX C: SAMPLE BUY AMERICA AUDIT REPORTS

FEDERAL TRANSIT ADMINISTRATION

APPENDIX C: SAMPLE BUY AMERICA AUDIT REPORTS

FEDERAL TRANSIT ADMINISTRATION

U.S. Department of Transportation
Federal Transit Administration
East Building
1200 New Jersey Avenue, SE
Washington, DC 20590
https://www.transit..gov

File Type	application/pdf
File Title	Conducting Pre-Award and Post-Delivery Audits for Rolling Stock Procurements
Subject	Buy America, pre-award audit, post-delivery audit, rolling stock grant, federal procurement
Author	D O T - Federal Transit Administration
File Modified	2017-06-07
File Created	2017-06-07