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Transportation Glossary
Term Description

Buy America

Federal transportation law under Title 49 of the Code of Federal Regulations, Part 661, which requires that all purchases of vehicles, equipment or any other manufactured item be of U.S.-made and assembled components, unless the purchase price is less than $100,000 or the U.S. DOT has given the purchaser a Buy America waiver. The grantee must obtain a signed certification from each successful bidder when the total purchase price exceeds $100,000. The Buy America requirement is based on the value of the total procurement, not one item. For example, a purchase of four vans that total $120,000 must comply with Buy America, even though each van costs $30,000. Grantees may request a specific Buy America waiver when domestically produced goods are not available or when there is a price differential of at least 25% between foreign and domestic bids. The Buy America requirement applies to subcontractors regardless of the size of their contract, if the prime contract is more than $100,000.

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