Buy America Requirements:

Federal Enforcement Questioned in Sacramento Mass Transit Procurement

RCED-87-162FS: Published: Sep 1, 1987. Publicly Released: Oct 5, 1987.

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In response to a congressional request, GAO reviewed the Urban Mass Transportation Administration's (UMTA) settlement of alleged contractor violations of Buy American Act requirements.

GAO found that UMTA: (1) failed to specify the procedures for applying a 10-percent cost-increase exception in the act; (2) notified the contractor that it was required to deliver a domestic product; and (3) disagreed with the contractor on the definition of compliance under the act. GAO also found that: (1) the act's requirements covered all 26 light rail vehicles (LRV); (2) UMTA did not enforce compliance with the act with respect to 15 completed LRV; and (3) the contractor would ensure that 11 remaining LRV complied. In addition, GAO found that, since the transit system's temporary use of two noncompliant LRV violated both the act and the settlement agreement, UMTA intended to reduce overall federal support of the project by $1.33 million.

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