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7 C.F.R. §§ 1787.10–1787.14

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§1787.10. Applications for specific waivers.

7 C.F.R. § 1787.10

RUS borrowers may request a specific waiver of the Buy American requirement through a written, detailed explanation showing that:
(a)
The cost between the nondomestic product and domestic product is unreasonable;
(b)
There is a non-availability of domestic products; or
(c)
It is not in the public interest or impractical for the RUS Borrower to purchase a domestic product.
Notes, amendments, and revision history

Authority

Authority: 7 U.S.C. 903.

Source

Source: 83 FR 60730, Nov. 27, 2018, unless otherwise noted.

§1787.11. Cost differential.

7 C.F.R. § 1787.11

By application pursuant to § 1787.10, the Administrator may waive the Buy American requirement if the cost of the domestic product is unreasonable. Given that RUS loans terms normally range from 20 to 35 years, and that additional costs will be magnified with interest over these terms, the Administrator has determined that if the lowest bid or offered price is a nondomestic bid that is at least 6percent lower than the next lowest bid or offered price, the RUS Borrower may request a cost differential waiver. With respect to contracts that are not required to be bid, prices of market-available, domestic products must be used for comparison in a request for waiver.
Notes, amendments, and revision history

Authority

Authority: 7 U.S.C. 903.

Source

Source: 83 FR 60730, Nov. 27, 2018, unless otherwise noted.

§1787.12. Non-availability or shortages.

7 C.F.R. § 1787.12

By application pursuant to § 1787.10, the Administrator may waive the Buy American requirement upon a showing that there is no domestic product available in the market in sufficient and reasonable quantities and of satisfactory quality, and that such shortage of suitable domestic alternatives jeopardizes the project being completed on budget and/or according to scheduled planning. A lack of responsive and responsible bids to a well-publicized request for bids will be presumed to meet the conditions of a non-availability waiver. With respect to contracts that are not required to be bid, sufficient evidence must be presented to the Administrator in order to make a determination.
Notes, amendments, and revision history

Authority

Authority: 7 U.S.C. 903.

Source

Source: 83 FR 60730, Nov. 27, 2018, unless otherwise noted.

§1787.13. Public interest or impracticality.

7 C.F.R. § 1787.13

(a)
By application pursuant to § 1787.10, the Administrator may waive the Buy American requirement upon a showing that application of the requirement would be inconsistent with the public interest or impractical for the RUS Borrower. With respect to impracticality, an RUS Borrower may request a waiver upon a showing that the domestic product is incompatible or impractical to integrate with existing, significant capital infrastructure or existing, critical software already in use. Notwithstanding, the burden shall rest with the RUS Borrower to present how the use of the domestic product would create a hardship or negatively impact its project.
(b)
With respect to contracts that were approved by RUS based on a bidder or offer that originally certified compliance with the Buy America requirements, but which can no longer comply with such certification, the Administrator may grant an impracticality waiver based on a showing that the original certification was made in good faith and that the product cannot now be obtained domestically due to commercial impossibility or impracticability, or without undue hardship or a negative impact to the project.
(c)
In determining whether to issue any public interest waiver, the Administrator will consider all appropriate factors on a case-by-case basis, unless a general waiver has already been issued by the Administrator with respect to the product.
Notes, amendments, and revision history

Authority

Authority: 7 U.S.C. 903.

Source

Source: 83 FR 60730, Nov. 27, 2018, unless otherwise noted.

§1787.14. General waivers.

7 C.F.R. § 1787.14

(a)
The Administrator may issue a general waiver for all RUS Borrowers for a determinate period, if the Administrator finds that such manufactured or unmanufactured goods are in shortage regionally or nationally, so as to avoid the administrative burden of issuing individual, specific waivers.
(b)
The Administrator has determined that it is in the best interest of RUS to issue a permanent general public interest waiver from the Buy America requirements for “small purchases,” which shall be published in the Federal Register for each program under the RE Act and amended as needed from time to time. In carrying out this exception, however, the Administrator shall ensure that contracts are not artificially fragmented.
Notes, amendments, and revision history

Authority

Authority: 7 U.S.C. 903.

Source

Source: 83 FR 60730, Nov. 27, 2018, unless otherwise noted.