[Federal Register Volume 76, Number 40 (Tuesday, March 1, 2011)]
[Notices]
[Pages 11193-11194]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-4482]
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
Notice of a Project Waiver of Section 1605 (Buy American
Requirements) of the American Recovery and Reinvestment Act of 2009
(ARRA) to the Drew County, AR, Memorial Hospital Renovation and
Expansion Project
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 [manufactured goods
are not produced in the United States in sufficient and reasonably
available quantities and of a satisfactory quality] of ARRA to Drew
County, Arkansas, (``County'') for the purchase of foreign manufactured
Heating, Ventilation, Air Conditioning (HVAC) equipment for a hospital
renovation and expansion project. This is a project specific waiver
under section 1605 (b)(2) of ARRA. 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. The County-
proposed HVAC improvements were selected to address the unique
conditions presented by the existing building. Based upon information
submitted by the County and its consultants, it was determined that the
HVAC equipment that will meet the County's design and performance
specifications is manufactured only by Daikin and SkyAir of Japan and
Thailand, respectively. This determination is based on the review and
recommendations of the Rural Development Buy American Coordinator. The
County, through its design engineer, has provided sufficient
documentation to support its request. The Under Secretary for Rural
Development has concurred in this decision to waive Section 1605 of
ARRA. This action permits the purchase of a Daikin RXS/FTXS (wall
mounted indoor unit) HVAC unit and SkyAir FCQ/RZQ (cassette-style,
ceiling mounted indoor unit). These units address the operational
requirement to heat and cool simultaneously, perform very efficiently,
and are compatible and
[[Page 11194]]
adaptable to the space restrictions created by the existing facility.
DATES: Effective Date: March 1, 2011.
ADDRESSES: Dallas Tonsager, Under Secretary, Rural Development, U.S.
Department of Agriculture, 1400 Independence Avenue, Room 205-W,
Washington, DC 20250-0107, (202) 720-4581.
FOR FURTHER INFORMATION CONTACT: William Downs, Senior Architect,
Program Support Staff, (202) 720-1499, Rural Housing Service, Stop
0761, U. S. Department of Agriculture, 1400 Independence Avenue, SW.,
Washington, DC 20250-0761.
SUPPLEMENTARY INFORMATION: In accordance with ARRA Section 1605(c) and
pursuant to Section 1605(b)(2), USDA hereby provides notice that it is
granting a project specific waiver of the Buy American Requirements of
ARRA to Drew County, Arkansas, for the purchase of HVAC equipment,
manufactured by Daikin of Japan and SkyAir of Thailand for the hospital
renovation and expansion project.
I. Background
Section 1605(a) of ARRA 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, or unless a waiver is provided to the recipient by the
head of the appropriate department or agency, here the Secretary of
USDA. According to section 1605(b) of ARRA, a waiver may be granted if
the Secretary 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. The 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 air conditioning for the existing hospital renovation and
expansion. The estimated cost of the HVAC equipment improvements to
Drew County's hospital is $12,000. 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 not manufactured in the United States. As a
result, the County requested a waiver of the ARRA Buy American
provisions on the basis of nonavailability of a United States
manufactured product that will meet the design and performance criteria
specified for this HVAC system.
II. Nonavailability Finding
The evaluation by USDA's technical review team and architect
supports the County's claim that a suitable HVAC system which meets the
specifications for this project is not available in sufficient and
reasonably available commercial quantities of a satisfactory quality
that is manufactured in the United States. 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. The purpose of USDA's review process was to determine
whether there was any HVAC equipment manufactured in the United States
that meets the County's design specifications and performance
requirements. As a result of its review, the Secretary has determined
that based on the information available and to the best of USDA's
knowledge, there is no HVAC equipment manufactured in the United States
that meets the County's design specifications and performance
requirements for the County's Memorial Hospital renovation and
expansion project.
The Rural Development Buy American Coordinator has reviewed this
waiver request and has determined that the supporting documentation
provided by the County established a proper basis that the manufactured
good was not available from a producer in the United States able to
meet the design specifications and performance requirements for the
proposed project.
III. 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 SkyAir FCQ/RZQ documented in the County's
waiver request submittal dated November 1, 2010, as part of its
hospital renovation and expansion project. This supplementary
information constitutes the detailed written justification required by
Section 1605(c) of ARRA for waivers ``based on a finding under
subsection (b).''
IV. Equal Opportunity and Non-Discrimination Requirements
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: Public Law 111-5, Section 1605.
Dated: February 17, 2011.
Thomas J. Vilsack,
Secretary of Agriculture.
[FR Doc. 2011-4482 Filed 2-28-11; 8:45 am]
BILLING CODE 3410-XV-P