fta buy america and you - can you compete on a level playing field
TRANSCRIPT
THE FTA, BUY AMERICA AND YOU: CAN YOU COMPETE ON A LEVEL PLAYING FIELD?
Eliot NormanPartner – White Collar Investigations/Buy America Richmond, VAC: +1.804.721.7851 | T: [email protected]/FDI
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THINK BIG!
FTA spending $
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Your goal: Level Playing Field
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Williams Mullen: We are Connected
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THE FTA, BUY AMERICA AND YOU
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President trump
> “It shall be the policy of the Executive Branch to Buy American and hire American” April 17, 2017> Inter-Agency Deadline of November 24, 2017>Really nothing new as far as Buy America Act is concerned?>So what are implications for your Business Plans?
THINK BIG ??
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buy America act 101
>100% of steel and iron on FTA financed projects must be made in USA> 100% of manufactured goods and their components
must be produced in the USA>Rolling Stock: Domestic Content 60% going to 65%,
then 70% by FY 2020. with all Final Assembly in the USA >Applies to all procurements over $150,000; rolling stock
over $300,000. You cannot “split” procurements to try to use the small purchase exemption. >BUY AMERICA IMPACT on YOUR PLANS?
THINK SMALL??
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BUT LET’s NOT GO HOME JUST YET
> Look at Success of foreign companies in winning big procurements financed by the FTA.>How do they do it? >Answer: “It’s in the definitions “ and “how you
structure your supply chain and global manufacturing”
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RTBD, RTBD
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SUCCESS STORIES? (fta investigations)
> Modula out of Italy
Lessons Learned: know your key definitions: manufacturing processes, manufactured end product, component, subcomponent, final assembly, infrastructure, use of U.S. or foreign steel, etc. etc. etc. RTBD RTBD
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More success stories under buy america
> MERMEC (Italian owned) , based in Columbia, SC
> NOVA BUS out of Canada
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More Lessons to Learn
> MARIOFF (out of Finland) Mist Fire Suppression System for Second Avenue Subway Project in NYC?
> KAWASAKI (Japan) Rail Cars for WMATA
> > Others > Do’s and Don’ts> Get an Advisory Opinion Before you Bid?
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Penalties for Buy America violations
> cost of investigations, prosecutions> criminal: false statements 18 U.S.C. 1001 +> civil false claims > breach of contract, decertification and debarment> pricing, bound by your certification, too late to
substitute US products ?> waivers? Not anymore> Compliance compliance compliance, must be in your
company culture.
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How we can help:
> Compliance Program and Training, give
manager authority, BA planning not at post-investigation> Protection: Buy America compliance program for you & your subcontracts, “mistake” not a “willful violation > Case presentation to FTA/Local Transit Authority > Procedural Advice: Certificates, timing, pre-award audits, BA Guidance Letters> Deal with Other agencies: FTA not the only player, part of broader gov. contracts strategy:
– FHWA, AMTRAK, Federal Railroad Administration High Speed Rail Program, FAA (60% domestic content)
– Review State/Local Buy USA statutes> Monitor What’s New: Nov. 24; Rolling Stock 70%> Deal with Investigations, Competitor Complaints> Result: Level Playing Field
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PIVOT
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Takeaways
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With The Right Legal Partners, This Can Be The Desired Result:
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Please note: This presentation contains general, condensed summaries of actual legal matters, statutes and opinions for information purposes. It is not meant to be and should not be construed as legal advice. Individuals with particular needs on specific issues should retain the services of competent counsel.
THANK YOU
Eliot NormanPartner – White Collar Investigations/Buy America Richmond, VAC: +1.804.721.7851 | T: [email protected]
William J. BenosCorporate/ImmigrationRichmond, VAC: +1.804.221.0073 | T: [email protected]
Robert K. CoxGovernment ConstructionFederal Transit Projects Tysons, VA (Washingon DC)T: [email protected]
William A. WozniakGovernment Contracts/Buy AmericaTysons, VA (Washington DC) T: [email protected]