[Federal Register Volume 75, Number 155 (Thursday, August 12, 2010)]
[Notices]
[Pages 48930-48931]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-19894]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service


Project Waiver Granted to Custer County, South Dakota for the 
Purchase of Foreign Manufactured Heating, Ventilation, Air Conditioning 
(HVAC) Equipment

AGENCY: Rural Housing Service, USDA.

ACTION: Notice.

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SUMMARY: The United States Department of Agriculture (``USDA'') grants 
a project waiver of the Buy American Requirements of the American 
Recovery and Reinvestment Act of 2009 (``ARRA''), to Custer County, 
South Dakota (``County'') for the purchase of foreign manufactured 
Heating, Ventilation, Air Conditioning (``HVAC'') equipment for a 
Courthouse renovation and expansion project because the necessary 
manufactured goods are not produced in the United States in sufficient 
and reasonably available quantities and of a satisfactory quality. This 
action permits the purchase of a Daikin VRV III HVAC unit and Tempeff 
Dual Core Technology unit of Japan and Canada respectively. These units 
address the operational requirement to heat and cool simultaneously, 
perform very efficiently, and are compatible and adaptable to the space 
restrictions created by the existing facility.

DATES: This action goes into effect August 12, 2010.

ADDRESSES: Address all comments concerning this notice to Dallas 
Tonsager, Under Secretary, Rural Development, U.S. Department of 
Agriculture, Room 205-W, 1400 Independence Avenue, SW., Washington, DC 
20250-0107.

FOR FURTHER INFORMATION CONTACT: William Downs, 202-720-1499.

SUPPLEMENTARY INFORMATION: In accordance with section 1605 of Public 
Law 111-5, USDA hereby provides notice that it is granting a project 
specific waiver of the Buy American Requirements of the ARRA, to Custer 
Counter, South Dakota for the purchase of HVAC equipment, manufactured 
by Daikin of Japan and Tempeff of Canada for the Courthouse renovation 
and expansion project.

I. Background Information

    Section 1605(a) of public law 111-5 requires that none of the 
appropriated funds may be used for the construction, alteration, 
maintenance, or repair of a public building or public work unless all 
of the iron, steel, and manufactured goods used in the project are 
produced in the United States. According to section 1605(b) of Public 
Law 111-5, a waiver may be granted if the head of the appropriate 
department or agency, in this case the Secretary of Agriculture, 
determines that (1) Applying these requirements would be inconsistent 
with public interest; (2) iron, steel, and manufactured goods are not 
produced in the United States in sufficient and reasonably available 
quantities and of a satisfactory quality; or (3) inclusion of iron, 
steel, and manufactured goods produced in the United States will 
increase the cost of the overall project by more than 25 percent. 
Custer County has requested a waiver from the Buy American Requirement 
for the purchase of HVAC equipment suitable for the conditions of the 
existing facility and the expansion area. The purchase of the new HVAC 
equipment is intended to provide the specified conditioning for the 
existing Courthouse renovation and expansion. The estimated cost of the 
overall improvements to the County's Courthouse is $5.8 million. In 
designing the HVAC equipment the designers of record evaluated the 
various technologies based on the following factors:
     The project requirements include addressing the 
limitations of space for HVAC equipment and the associated accessories.
     The project requires a very high efficiency performance 
for the conditions presented by the region and the requirement for 
simultaneous heating and cooling.
     The project requires a frost resistant operating system.
    As part of an exhaustive review and search for potentially viable 
HVAC units, the County and their consultants determined that there is 
no domestic manufacturer of HVAC equipment that provides the specified 
performance and technical features required for this project.
    According to the County, the only HVAC equipment that meets the 
technical specifications is manufactured only by Daikin and Tempeff, of 
Japan and Canada respectively. As a result, the County requested a 
waiver of the ARRA Buy American provisions on the basis of non-
availability of a United States manufactured product that will meet the 
design and performance criteria specified for this HVAC system.

II. Non-Availability Finding

    The Secretary has determined that, based on the information 
available, and to the best of USDA's knowledge, there do not appear to 
be other HVAC systems manufactured in the United States that are 
available at this time to meet the County's design specifications and 
performance requirements for this project.
    USDA's technical review team and architects reviewed a memorandum 
submitted by the County describing the foreign equipment that fits the 
technical specifications for the HVAC equipment and the process the 
County followed in adopting the HVAC design. USDA's technical review 
team and architects conducted a nationwide review of equipment vendors, 
manufacturers' representatives, and associated resources typically 
relied on by designers of HVAC equipment in order to determine whether 
there was any HVAC equipment manufactured in the United States that 
meet the County's design specifications and performance requirements. 
The evaluation by USDA's technical review team and architects supports 
the County's claim that a suitable HVAC system which meets the County's 
design specifications

[[Page 48931]]

and performance requirements for its Courthouse renovation and 
expansion project is not reasonably available in sufficient commercial 
quantities of a satisfactory quality that is manufactured in the United 
States.

III. The Waiver

    Having established a proper basis that this manufactured good was 
not available from a producer in the United States, the County is 
hereby granted a waiver from the Buy American requirements. This waiver 
permits use of ARRA funds for the purchase of the specified Daikin VRV 
III heat recovery system and Tempeff Dual Core Technology documented in 
the County's waiver request submittal dated February 19, 2010, as part 
of its Courthouse renovation and expansion project. This supplementary 
information constitutes the detailed written justification required by 
section 1605(c) of Public Law 111-5 for waivers ``based on a finding 
under subsection (b).''
    This waiver only applies to the use of the specified product for 
the ARRA project being proposed. Any other ARRA recipient that wishes 
to use the same product must apply for a separate waiver based on 
project specific circumstances.

IV. Equal Opportunity and Non-Discrimination Requirements

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

    Authority: Sec. 1605, Pub. L. 111-5, 123 STAT. 115.

    Dated: August 5, 2010.
Thomas J. Vilsack,
Secretary of Agriculture.
[FR Doc. 2010-19894 Filed 8-11-10; 8:45 am]
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