<section xmlns="http://xml.house.gov/schemas/uslm/1.0" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:dcterms="http://purl.org/dc/terms/" style="-uslm-lc:I80" id="id34a64147-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325"><num value="5325">§ 5325.</num><heading> Contract requirements</heading><subsection style="-uslm-lc:I11" class="indent0" id="id34a64148-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/a"><num value="a">(a)</num><heading> <inline class="small-caps">Competition</inline>.—</heading><content>Recipients of assistance under this chapter shall conduct all procurement transactions in a manner that provides full and open competition as determined by the Secretary.</content>
</subsection>
<subsection style="-uslm-lc:I11" class="indent0" id="id34a64149-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/b"><num value="b">(b)</num><heading> Architectural, Engineering, and Design Contracts.—</heading><paragraph style="-uslm-lc:I12" class="indent1" id="id34a6414a-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/b/1"><num value="1">(1)</num><heading> <inline class="small-caps">Procedures for awarding contract</inline>.—</heading><content>A contract or requirement for program management, architectural engineering, construction management, a feasibility study, and preliminary engineering, design, architectural, engineering, surveying, mapping, or related services for a project for which Federal assistance is provided under this chapter shall be awarded in the same way as a contract for architectural and engineering services is negotiated under chapter 11 of title 40 or an equivalent qualifications-based requirement of a State adopted before <date date="2005-08-10">August 10, 2005</date>.</content>
</paragraph>
<paragraph style="-uslm-lc:I12" class="indent1" id="id34a6414b-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/b/2"><num value="2">(2)</num><heading> <inline class="small-caps">Additional requirements</inline>.—</heading><chapeau>When awarding a contract described in paragraph (1), recipients of assistance under this chapter shall comply with the following requirements:</chapeau><subparagraph style="-uslm-lc:I13" class="indent2" id="id34a6414c-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/b/2/A"><num value="A">(A)</num><heading> <inline class="small-caps">Performance of audits</inline>.—</heading><content>Any contract or subcontract awarded under this chapter shall be performed and audited in compliance with cost principles contained in part 31 of the Federal Acquisition Regulation, or any successor thereto.</content>
</subparagraph>
<subparagraph style="-uslm-lc:I13" class="indent2" id="id34a6414d-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/b/2/B"><num value="B">(B)</num><heading> <inline class="small-caps">Indirect cost rates</inline>.—</heading><content>A recipient of funds under a contract or subcontract awarded under this chapter shall accept indirect cost rates established in accordance with the Federal Acquisition Regulation for 1-year applicable accounting periods by a cognizant Federal or State government agency, if such rates are not currently under dispute.</content>
</subparagraph>
<subparagraph style="-uslm-lc:I13" class="indent2" id="id34a6414e-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/b/2/C"><num value="C">(C)</num><heading> <inline class="small-caps">Application of rates</inline>.—</heading><content>After a firm’s indirect cost rates are accepted under subparagraph (B), the recipient of the funds shall apply such rates for the purposes of contract estimation, negotiation, administration, reporting, and contract payment, and shall not be limited by administrative or de facto ceilings.</content>
</subparagraph>
<subparagraph style="-uslm-lc:I13" class="indent2" id="id34a6414f-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/b/2/D"><num value="D">(D)</num><heading> <inline class="small-caps">Prenotification; confidentiality of data</inline>.—</heading><content>A recipient requesting or using the cost and rate data described in subparagraph (C) shall notify any affected firm before such request or use. Such data shall be confidential and shall not be accessible or provided by the group of agencies sharing cost data under this subparagraph, except by written permission of the audited firm. If prohibited by law, such cost and rate data shall not be disclosed under any circumstances.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection style="-uslm-lc:I11" class="indent0" id="id34a64150-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/c"><num value="c">(c)</num><heading> <inline class="small-caps">Efficient Procurement</inline>.—</heading><content>A recipient may award a procurement contract under this chapter to other than the lowest bidder if the award furthers an objective consistent with the purposes of this chapter, including improved long-term operating efficiency and lower long-term costs.</content>
</subsection>
<subsection style="-uslm-lc:I11" class="indent0" id="id34a64151-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/d"><num value="d">(d)</num><heading> Design-Build Projects.—</heading><paragraph style="-uslm-lc:I12" class="indent1" id="id34a64152-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/d/1"><num value="1">(1)</num><heading> <inline class="small-caps">Term defined</inline>.—</heading><chapeau>In this subsection, the term “design-build project”—</chapeau><subparagraph style="-uslm-lc:I13" class="indent2" id="id34a64153-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/d/1/A"><num value="A">(A)</num><content> means a project under which a recipient enters into a contract with a seller, firm, or consortium of firms to design and build a public transportation system, or an operable segment of such system, that meets specific performance criteria; and</content>
</subparagraph>
<subparagraph style="-uslm-lc:I13" class="indent2" id="id34a64154-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/d/1/B"><num value="B">(B)</num><content> may include an option to finance, or operate for a period of time, the system or segment or any combination of designing, building, operating, or maintaining such system or segment.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-lc:I12" class="indent1" id="id34a64155-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/d/2"><num value="2">(2)</num><heading> <inline class="small-caps">Financial assistance for capital costs</inline>.—</heading><content>Federal financial assistance under this chapter may be provided for the capital costs of a design-build project after the recipient complies with Government requirements.</content>
</paragraph>
</subsection>
<subsection style="-uslm-lc:I11" class="indent0" id="id34a64156-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/e"><num value="e">(e)</num><heading> Multiyear Rolling Stock.—</heading><paragraph style="-uslm-lc:I12" class="indent1" id="id34a64157-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/e/1"><num value="1">(1)</num><heading> <inline class="small-caps">Contracts</inline>.—</heading><chapeau>A recipient procuring rolling stock with Government financial assistance under this chapter may make a multiyear contract to buy the rolling stock and replacement parts under which the recipient has an option to buy additional rolling stock or replacement parts for—</chapeau><subparagraph style="-uslm-lc:I13" class="indent2" id="id34a64158-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/e/1/A"><num value="A">(A)</num><content> not more than 5 years after the date of the original contract for bus procurements; and</content>
</subparagraph>
<subparagraph style="-uslm-lc:I13" class="indent2" id="id34a64159-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/e/1/B"><num value="B">(B)</num><content> not more than 7 years after the date of the original contract for rail procurements, provided that such option does not allow for significant changes or alterations to the rolling stock.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-lc:I12" class="indent1" id="id34a6415a-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/e/2"><num value="2">(2)</num><heading> <inline class="small-caps">Cooperation among recipients</inline>.—</heading><content>The Secretary shall allow recipients to act on a cooperative basis to procure rolling stock in compliance with this subsection and other Government procurement requirements.</content>
</paragraph>
</subsection>
<subsection style="-uslm-lc:I11" class="indent0" id="id34a6415b-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/f"><num value="f">(f)</num><heading> <inline class="small-caps">Acquiring Rolling Stock</inline>.—</heading><chapeau>A recipient of financial assistance under this chapter may enter into a contract to expend that assistance to acquire rolling stock—</chapeau><paragraph style="-uslm-lc:I12" class="indent1" id="id34a6415c-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/f/1"><num value="1">(1)</num><chapeau> based on—</chapeau><subparagraph style="-uslm-lc:I13" class="indent2" id="id34a6415d-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/f/1/A"><num value="A">(A)</num><content> initial capital costs; or</content>
</subparagraph>
<subparagraph style="-uslm-lc:I13" class="indent2" id="id34a6415e-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/f/1/B"><num value="B">(B)</num><content> performance, standardization, life cycle costs, and other factors; or</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-lc:I12" class="indent1" id="id34a6415f-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/f/2"><num value="2">(2)</num><content> with a party selected through a competitive procurement process.</content>
</paragraph>
</subsection>
<subsection style="-uslm-lc:I11" class="indent0" id="id34a64160-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/g"><num value="g">(g)</num><heading> <inline class="small-caps">Examination of Records</inline>.—</heading><content>Upon request, the Secretary and the Comptroller General, or any of their representatives, shall have access to and the right to examine and inspect all records, documents, and papers, including contracts, related to a project for which a grant is made under this chapter.</content>
</subsection>
<subsection style="-uslm-lc:I11" class="indent0" id="id34a64161-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/h"><num value="h">(h)</num><heading> <inline class="small-caps">Grant Prohibition</inline>.—</heading><content>A grant awarded under this chapter or the Federal Public Transportation Act of 2015 may not be used to support a procurement that uses an exclusionary or discriminatory specification.</content>
</subsection>
<subsection style="-uslm-lc:I11" class="indent0" id="id34a64162-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/i"><num value="i">(i)</num><heading> <inline class="small-caps">Bus Dealer Requirements</inline>.—</heading><content>No State law requiring buses to be purchased through in-State dealers shall apply to vehicles purchased with a grant under this chapter.</content>
</subsection>
<subsection style="-uslm-lc:I11" class="indent0" id="id34a64163-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/j"><num value="j">(j)</num><heading> Awards to Responsible Contractors.—</heading><paragraph style="-uslm-lc:I12" class="indent1" id="id34a64164-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/j/1"><num value="1">(1)</num><heading> <inline class="small-caps">In general</inline>.—</heading><content>Federal financial assistance under this chapter may be provided for contracts only if a recipient awards such contracts to responsible contractors possessing the ability to successfully perform under the terms and conditions of a proposed procurement.</content>
</paragraph>
<paragraph style="-uslm-lc:I12" class="indent1" id="id34a64165-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/j/2"><num value="2">(2)</num><heading> <inline class="small-caps">Criteria</inline>.—</heading><chapeau>Before making an award to a contractor under paragraph (1), a recipient shall consider—</chapeau><subparagraph style="-uslm-lc:I13" class="indent2" id="id34a64166-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/j/2/A"><num value="A">(A)</num><content> the integrity of the contractor;</content>
</subparagraph>
<subparagraph style="-uslm-lc:I13" class="indent2" id="id34a64167-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/j/2/B"><num value="B">(B)</num><content> the contractor’s compliance with public policy;</content>
</subparagraph>
<subparagraph style="-uslm-lc:I13" class="indent2" id="id34a64168-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/j/2/C"><num value="C">(C)</num><content> the contractor’s past performance; and</content>
</subparagraph>
<subparagraph style="-uslm-lc:I13" class="indent2" id="id34a64169-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/j/2/D"><num value="D">(D)</num><content> the contractor’s financial and technical resources.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection style="-uslm-lc:I11" class="indent0" id="id34a6416a-ec39-11e5-b01e-e2270cb35279" identifier="/us/usc/t49/s5325/k"><num value="k">(k)</num><heading> <inline class="small-caps">Veterans Employment</inline>.—</heading><content>Recipients and subrecipients of Federal financial assistance under this chapter shall ensure that contractors working on a capital project funded using such assistance give a hiring preference, to the extent practicable, to veterans (as defined in <ref href="/us/usc/t5/s2108">section 2108 of title 5</ref>) who have the requisite skills and abilities to perform the construction work required under the contract. This subsection shall not be understood, construed or enforced in any manner that would require an employer to give a preference to any veteran over any equally qualified applicant who is a member of any racial or ethnic minority, female, an individual with a disability, or a former employee.</content>
</subsection>
<sourceCredit id="id34a6416b-ec39-11e5-b01e-e2270cb35279">(<ref href="/us/pl/103/272">Pub. L. 103–272</ref>, § 1(d), <date date="1994-07-05">July 5, 1994</date>, <ref href="/us/stat/108/825">108 Stat. 825</ref>; <ref href="/us/pl/104/287">Pub. L. 104–287</ref>, § 5(16), <date date="1996-10-11">Oct. 11, 1996</date>, <ref href="/us/stat/110/3390">110 Stat. 3390</ref>; <ref href="/us/pl/105/178/tIII">Pub. L. 105–178, title III</ref>, § 3022, <date date="1998-06-09">June 9, 1998</date>, <ref href="/us/stat/112/363">112 Stat. 363</ref>; <ref href="/us/pl/105/206/tIX">Pub. L. 105–206, title IX</ref>, § 9009(n), <date date="1998-07-22">July 22, 1998</date>, <ref href="/us/stat/112/857">112 Stat. 857</ref>; <ref href="/us/pl/107/217">Pub. L. 107–217</ref>, § 3(n)(2), <date date="2002-08-21">Aug. 21, 2002</date>, <ref href="/us/stat/116/1302">116 Stat. 1302</ref>; <ref href="/us/pl/109/59/tIII">Pub. L. 109–59, title III</ref>, § 3025(a), <date date="2005-08-10">Aug. 10, 2005</date>, <ref href="/us/stat/119/1620">119 Stat. 1620</ref>; <ref href="/us/pl/110/244/tII">Pub. L. 110–244, title II</ref>, § 201(k), <date date="2008-06-06">June 6, 2008</date>, <ref href="/us/stat/122/1611">122 Stat. 1611</ref>; <ref href="/us/pl/112/141/dB">Pub. L. 112–141, div. B</ref>, §§ 20018, 20030(d), <date date="2012-07-06">July 6, 2012</date>, <ref href="/us/stat/126/706">126 Stat. 706</ref>, 730; <ref href="/us/pl/114/94/dA/tIII">Pub. L. 114–94, div. A, title III</ref>, § 3030(e), <date date="2015-12-04">Dec. 4, 2015</date>, <ref href="/us/stat/129/1497">129 Stat. 1497</ref>.)</sourceCredit>
<notes type="uscNote" id="id34a6416c-ec39-11e5-b01e-e2270cb35279">
<note topic="historicalAndRevision" id="id34a6416d-ec39-11e5-b01e-e2270cb35279">
<table xmlns="http://www.w3.org/1999/xhtml" class="HNR" width="50%" style="border-collapse:collapse;  border-bottom:1px solid black; -uslm-lc: c3,L2,tp7,s10,xls64,xs90,tp7,s10,xls64,xs90; ">
<colgroup>
<col style="min-width: 44pt;"/>
<col style="width:68pt ; max-width:68pt;"/>
<col style="width:94pt ; max-width:94pt;"/>
</colgroup>
<thead>
<tr class="title" style="font-size:7pt; -uslm-lc:I95;">
<th colspan="3">
<p style=""><span style="font-variant:small-caps">Historical and Revision Notes</span></p></th>
</tr>
<tr class="title" style="font-size:7pt; border-bottom:1px solid black; -uslm-lc:I95;">
<th colspan="3">
<p style=""><span style="font-variant:small-caps">Pub. L</span>. 103–272</p></th>
</tr>
<tr class="header" style="font-size:6pt; border-bottom:1px solid black;  border-top:1px solid black; -uslm-lc:h1;">
<th style="min-width: 44.0pt; text-align:center; vertical-align:middle; border-right:1px solid black;"><p style=" text-align:center; margin-bottom:0em;"><i>Revised</i></p><p style=" text-align:center; margin-top:0em;"><i>Section</i></p></th><th style="width:68.0pt ; max-width:68.0pt; text-align:center; vertical-align:middle; border-right:1px solid black; border-left:1px solid black;"><p style=" text-align:center;"><i>Source (U.S. Code)</i></p></th><th style="width:94.0pt ; max-width:94.0pt; text-align:center; vertical-align:middle; border-left:1px solid black;"><p style=" text-align:center;"><i>Source (Statutes at Large)</i></p></th></tr>
</thead>
<tbody style="line-height:7pt; font-size:6pt;">
<tr style="border-top:1px solid black; -uslm-lc:I01;"><td style=" text-align:left; vertical-align:top; border-right:1px solid black; padding-right:2pt;"><p style=" text-align:left; text-indent: -1em; padding-left:1em;" class="leaders"><span>5325(a)</span></p></td><td style=" text-align:left; vertical-align:top; border-right:1px solid black; border-left:1px solid black; padding-right:2pt; padding-left: 2pt;"><p style=" text-align:left; text-indent: -1em; padding-left:1em;">49 App.:1608(b)(1).</p></td><td style=" text-align:left; vertical-align:top; border-left:1px solid black; padding-left: 2pt;"><p style=" text-align:left; text-indent: -1em; padding-left:1em;"><span class="date">July 9, 1964</span>, <a href="/us/pl/88/365">Pub. L. 88–365</a>, § 12(b)(1), <a href="/us/stat/78/306">78 Stat. 306</a>; <span class="date">Sept. 8, 1966</span>, <a href="/us/pl/89/562">Pub. L. 89–562</a>, § 2(a)(1), <a href="/us/stat/80/715">80 Stat. 715</a>; <span class="date">May 25, 1967</span>, <a href="/us/pl/90/19">Pub. L. 90–19</a>, § 20(a), <a href="/us/stat/81/25">81 Stat. 25</a>; <span class="date">Nov. 6, 1978</span>, <a href="/us/pl/95/599">Pub. L. 95–599</a>, § 308(a)(1), <a href="/us/stat/92/2745">92 Stat. 2745</a>.</p></td></tr>
<tr style="-uslm-lc:I01;"><td style=" text-align:left; vertical-align:top; border-right:1px solid black; padding-right:2pt;"><p style=" text-align:left; text-indent: -1em; padding-left:1em;" class="leaders"><span>5325(b)</span></p></td><td style=" text-align:left; vertical-align:top; border-right:1px solid black; border-left:1px solid black; padding-right:2pt; padding-left: 2pt;"><p style=" text-align:left; text-indent: -1em; padding-left:1em;">49 App.:1608(b)(2).</p></td><td style=" text-align:left; vertical-align:top; border-left:1px solid black; padding-left: 2pt;"><p style=" text-align:left; text-indent: -1em; padding-left:1em;"><span class="date">July 9, 1964</span>, <a href="/us/pl/88/365">Pub. L. 88–365</a>, <a href="/us/stat/78/302">78 Stat. 302</a>, § 12(b)(2); added <span class="date">Nov. 6, 1978</span>, <a href="/us/pl/95/599">Pub. L. 95–599</a>, § 308(a)(2), <a href="/us/stat/92/2745">92 Stat. 2745</a>; restated <span class="date">Jan. 6, 1983</span>, <a href="/us/pl/97/424">Pub. L. 97–424</a>, § 308, <a href="/us/stat/96/2151">96 Stat. 2151</a>.</p></td></tr>
<tr style="-uslm-lc:I01;"><td style=" text-align:left; vertical-align:top; border-right:1px solid black; padding-right:2pt;"><p style=" text-align:left; text-indent: -1em; padding-left:1em;" class="leaders"><span>5325(c)</span></p></td><td style=" text-align:left; vertical-align:top; border-right:1px solid black; border-left:1px solid black; padding-right:2pt; padding-left: 2pt;"><p style=" text-align:left; text-indent: -1em; padding-left:1em;">49 App.:1608(b)(3).</p></td><td style=" text-align:left; vertical-align:top; border-left:1px solid black; padding-left: 2pt;"><p style=" text-align:left; text-indent: -1em; padding-left:1em;"><span class="date">July 9, 1964</span>, <a href="/us/pl/88/365">Pub. L. 88–365</a>, <a href="/us/stat/78/302">78 Stat. 302</a>, § 12(b)(3); added <span class="date">Apr. 2, 1987</span>, <a href="/us/pl/100/17">Pub. L. 100–17</a>, § 315(a), <a href="/us/stat/101/232">101 Stat. 232</a>.</p></td></tr>
<tr style="-uslm-lc:I01;"><td style=" text-align:left; vertical-align:top; border-right:1px solid black; padding-right:2pt;"><p style=" text-align:left; text-indent: -1em; padding-left:1em;" class="leaders"><span>5325(d)</span></p></td><td style=" text-align:left; vertical-align:top; border-right:1px solid black; border-left:1px solid black; padding-right:2pt; padding-left: 2pt;"><p style=" text-align:left; text-indent: -1em; padding-left:1em;">49 App.:1608(b)(4).</p></td><td style=" text-align:left; vertical-align:top; border-left:1px solid black; padding-left: 2pt;"><p style=" text-align:left; text-indent: -1em; padding-left:1em;"><span class="date">July 9, 1964</span>, <a href="/us/pl/88/365">Pub. L. 88–365</a>, <a href="/us/stat/78/302">78 Stat. 302</a>, § 12(b)(4); added <span class="date">Apr. 2, 1987</span>, <a href="/us/pl/100/17">Pub. L. 100–17</a>, § 316, <a href="/us/stat/101/232">101 Stat. 232</a>.</p></td></tr>
</tbody>
</table>
<p style="-uslm-lc:I21" class="indent0">In subsection (a), the words “reconstruction”, “in furtherance of the purposes”, “by applicants”, “procedures as defined by the Secretary”, “of the contracting parties”, and “the operations or activities under” are omitted as surplus. The words “shall be made available to” are substituted for “shall . . . have access to”, and the words “an officer or employee of the Secretary or Comptroller General” are substituted for “any of their duly authorized representatives”, for consistency in the revised title and with other titles of the United States Code.</p>
<p style="-uslm-lc:I21" class="indent0">Subsection (b) is substituted for 49 App.:1608(b)(2) for clarity. The text of 49 App.:1608(b)(2) (last sentence) is omitted as executed.</p>
</note>
<note style="-uslm-lc:I74" topic="historicalAndRevision" id="id34a6416e-ec39-11e5-b01e-e2270cb35279"><heading class="centered smallCaps"><ref href="/us/pl/104/287">Pub. L. 104–287</ref></heading><p style="-uslm-lc:I21" class="indent0">This amends the catchline for 49:5325(d) to make a clarifying amendment.</p>
</note>
<note style="-uslm-lc:I75" topic="referencesInText" id="id34a6416f-ec39-11e5-b01e-e2270cb35279">
<heading class="centered smallCaps">References in Text</heading><p style="-uslm-lc:I21" class="indent0">The Federal Public Transportation Act of 2015, referred to in subsec. (h), is title III of <ref href="/us/pl/114/94">Pub. L. 114–94</ref>, <date date="2015-12-04">Dec. 4, 2015</date>, <ref href="/us/stat/129/1446">129 Stat. 1446</ref>. For complete classification of this Act to the Code, see Short Title of 2015 Amendment note set out under <ref href="/us/usc/t49/s5101">section 5101 of this title</ref> and Tables.</p>
</note>
<note style="-uslm-lc:I74" topic="amendments" id="id34a64170-ec39-11e5-b01e-e2270cb35279"><heading class="centered smallCaps">Amendments</heading><p style="-uslm-lc:I21" class="indent0">2015—Subsec. (e)(2). <ref href="/us/pl/114/94">Pub. L. 114–94</ref>, § 3030(e)(1), struck out “at least two” after “allow”.</p>
<p style="-uslm-lc:I21" class="indent0">Subsec. (h). <ref href="/us/pl/114/94">Pub. L. 114–94</ref>, § 3030(e)(2), substituted “Federal Public Transportation Act of 2015” for “Federal Public Transportation Act of 2012”.</p>
<p style="-uslm-lc:I21" class="indent0">2012—Subsec. (b)(2)(A). <ref href="/us/pl/112/141">Pub. L. 112–141</ref>, § 20030(d), substituted “the Federal Acquisition Regulation, or any successor thereto” for “title 48, Code of Federal Regulations (commonly known as the Federal Acquisition Regulation)”.</p>
<p style="-uslm-lc:I21" class="indent0">Subsec. (e)(1). <ref href="/us/pl/112/141">Pub. L. 112–141</ref>, § 20018(1), added par. (1) and struck out former par. (1). Prior to amendment, text read as follows: “A recipient procuring rolling stock with Government financial assistance under this chapter may make a multiyear contract to buy the rolling stock and replacement parts under which the recipient has an option to buy additional rolling stock or replacement parts for not more than 5 years after the date of the original contract.”</p>
<p style="-uslm-lc:I21" class="indent0">Subsec. (h). <ref href="/us/pl/112/141">Pub. L. 112–141</ref>, § 20018(2), substituted “Federal Public Transportation Act of 2012” for “Federal Public Transportation Act of 2005”.</p>
<p style="-uslm-lc:I21" class="indent0">Subsec. (j)(2)(C). <ref href="/us/pl/112/141">Pub. L. 112–141</ref>, § 20018(3), struck out “, including the performance reported in the Contractor Performance Assessment Reports required under section 5309(<i>l</i>)(2)” after “past performance”.</p>
<p style="-uslm-lc:I21" class="indent0">Subsec. (k). <ref href="/us/pl/112/141">Pub. L. 112–141</ref>, § 20018(4), added subsec. (k).</p>
<p style="-uslm-lc:I21" class="indent0">2008—Subsec. (b)(1). <ref href="/us/pl/110/244">Pub. L. 110–244</ref>, § 201(k)(1), inserted “adopted before <date date="2005-08-10">August 10, 2005</date>” before period at end.</p>
<p style="-uslm-lc:I21" class="indent0">Subsec. (b)(2), (3). <ref href="/us/pl/110/244">Pub. L. 110–244</ref>, § 201(k)(2), (3), redesignated par. (3) as (2) and struck out former par. (2). Text read as follows: “Paragraph (1) does not apply to the extent a State has adopted by law, before the date of enactment of the Federal Public Transportation Act of 2005, an equivalent State qualifications-based requirement for contracting for architectural, engineering, and design services.”</p>
<p style="-uslm-lc:I21" class="indent0">2005—<ref href="/us/pl/109/59">Pub. L. 109–59</ref> amended section generally. Prior to amendment, section consisted of subsecs. (a) to (c) relating to noncompetitive bidding in subsec. (a), procedures for award of architectural, engineering, and design contracts in subsec. (b), and efficient procurement in subsec. (c).</p>
<p style="-uslm-lc:I21" class="indent0">2002—Subsec. (b). <ref href="/us/pl/107/217">Pub. L. 107–217</ref> substituted “chapter 11 of title 40” for “title IX of the Federal Property and Administrative Services Act of 1949 (<ref href="/us/usc/t40/s541">40 U.S.C. 541</ref> et seq.)”.</p>
<p style="-uslm-lc:I21" class="indent0">1998—Subsec. (b). <ref href="/us/pl/105/178">Pub. L. 105–178</ref>, § 3022(b), as added by <ref href="/us/pl/105/206">Pub. L. 105–206</ref>, inserted “or requirement” after “A contract” and “When awarding such contracts, recipients of assistance under this chapter shall maximize efficiencies of administration by accepting nondisputed audits conducted by other governmental agencies, as provided in subparagraphs (C) through (F) of <ref href="/us/usc/t23/s112/b/2">section 112(b)(2) of title 23</ref>, United States Code.” before “This subsection does not apply”.</p>
<p style="-uslm-lc:I21" class="indent0"><ref href="/us/pl/105/178">Pub. L. 105–178</ref>, § 3022(a)(1), (2), redesignated subsec. (d) as (b) and struck out heading and text of former subsec. (b). Text read as follows: “A recipient of financial assistance of the United States Government under this chapter may make a contract to expend that assistance to acquire rolling stock—</p>
<p style="-uslm-lc:I22" class="indent1">“(1) based on—</p>
<p style="-uslm-lc:I23" class="indent2">“(A) initial capital costs; or</p>
<p style="-uslm-lc:I23" class="indent2">“(B) performance, standardization, life cycle costs, and other factors; or</p>
<p style="-uslm-lc:I22" class="indent1">“(2) with a party selected through a competitive procurement process.”</p>
<p style="-uslm-lc:I21" class="indent0">Subsec. (c). <ref href="/us/pl/105/178">Pub. L. 105–178</ref>, § 3022(a)(1), (3), added subsec. (c) and struck out heading and text of former subsec. (c). Text read as follows: “A recipient of a grant under <ref href="/us/usc/t49/s5307">section 5307 of this title</ref> procuring an associated capital maintenance item under section 5307(b) may make a contract directly with the original manufacturer or supplier of the item to be replaced, without receiving prior approval of the Secretary, if the recipient first certifies in writing to the Secretary that—</p>
<p style="-uslm-lc:I22" class="indent1">“(1) the manufacturer or supplier is the only source for the item; and</p>
<p style="-uslm-lc:I22" class="indent1">“(2) the price of the item is no more than the price similar customers pay for the item.”</p>
<p style="-uslm-lc:I21" class="indent0">Subsec. (d). <ref href="/us/pl/105/178">Pub. L. 105–178</ref>, § 3022(a)(2), redesignated subsec. (d) as (b).</p>
<p style="-uslm-lc:I21" class="indent0">1996—Subsec. (d). <ref href="/us/pl/104/287">Pub. L. 104–287</ref> substituted “<inline class="small-caps">Architectural, Engineering, and Design Contracts</inline>” for “<inline class="small-caps">Management, Architectural, and Engineering Contracts</inline>” in heading.</p>
</note>
<note style="-uslm-lc:I74" topic="effectiveDateOfAmendment" id="id34a64171-ec39-11e5-b01e-e2270cb35279"><heading class="centered smallCaps">Effective Date of 2015 Amendment</heading><p style="-uslm-lc:I21" class="indent0">Amendment by <ref href="/us/pl/114/94">Pub. L. 114–94</ref> effective <date date="2015-10-01">Oct. 1, 2015</date>, see <ref href="/us/pl/114/94/s1003">section 1003 of Pub. L. 114–94</ref>, set out as a note under <ref href="/us/usc/t5/s5313">section 5313 of Title 5</ref>, Government Organization and Employees.</p>
</note>
<note style="-uslm-lc:I74" topic="effectiveDateOfAmendment" id="id34a64172-ec39-11e5-b01e-e2270cb35279"><heading class="centered smallCaps">Effective Date of 2012 Amendment</heading><p style="-uslm-lc:I21" class="indent0">Amendment by <ref href="/us/pl/112/141">Pub. L. 112–141</ref> effective <date date="2012-10-01">Oct. 1, 2012</date>, see <ref href="/us/pl/112/141/s3/a">section 3(a) of Pub. L. 112–141</ref>, set out as an Effective and Termination Dates of 2012 Amendment note under <ref href="/us/usc/t23/s101">section 101 of Title 23</ref>, Highways.</p>
</note>
<note style="-uslm-lc:I74" topic="effectiveDateOfAmendment" id="id34a64173-ec39-11e5-b01e-e2270cb35279"><heading class="centered smallCaps">Effective Date of 1998 Amendment</heading><p style="-uslm-lc:I21" class="indent0">Title IX of <ref href="/us/pl/105/206">Pub. L. 105–206</ref> effective simultaneously with enactment of <ref href="/us/pl/105/178">Pub. L. 105–178</ref> and to be treated as included in <ref href="/us/pl/105/178">Pub. L. 105–178</ref> at time of enactment, and provisions of <ref href="/us/pl/105/178">Pub. L. 105–178</ref>, as in effect on day before <date date="1998-07-22">July 22, 1998</date>, that are amended by title IX of <ref href="/us/pl/105/206">Pub. L. 105–206</ref> to be treated as not enacted, see <ref href="/us/pl/105/206/s9016">section 9016 of Pub. L. 105–206</ref>, set out as a note under <ref href="/us/usc/t23/s101">section 101 of Title 23</ref>, Highways.</p>
</note>
<note style="-uslm-lc:I74" topic="effectiveDateOfAmendment" id="id34a64174-ec39-11e5-b01e-e2270cb35279"><heading class="centered smallCaps">Effective Date of 1996 Amendment</heading><p style="-uslm-lc:I21" class="indent0">Amendment by <ref href="/us/pl/104/287">Pub. L. 104–287</ref> effective <date date="1994-07-05">July 5, 1994</date>, see <ref href="/us/pl/104/287/s8/1">section 8(1) of Pub. L. 104–287</ref>, set out as a note under <ref href="/us/usc/t49/s5303">section 5303 of this title</ref>.</p>
</note>
<note style="-uslm-lc:I74" topic="miscellaneous" id="id34a64175-ec39-11e5-b01e-e2270cb35279"><heading class="centered smallCaps">Innovative Procurement</heading><p><ref href="/us/pl/114/94/dA/tIII">Pub. L. 114–94, div. A, title III</ref>, § 3019, <date date="2015-12-04">Dec. 4, 2015</date>, <ref href="/us/stat/129/1488">129 Stat. 1488</ref>, provided that:<quotedContent origin="/us/pl/114/94/dA/tIII">
<subsection style="-uslm-lc:I21" class="indent0"><num value="a">“(a)</num><heading> <inline class="small-caps">Definition</inline>.—</heading><content>In this section, the term ‘grantee’ means a recipient or subrecipient of assistance under chapter 53 of title 49, United States Code.</content>
</subsection>
<subsection style="-uslm-lc:I21" class="indent0"><num value="b">“(b)</num><heading> Cooperative Procurement.—</heading><paragraph style="-uslm-lc:I22" class="indent1"><num value="1">“(1)</num><heading> Definitions; general rules.—</heading><subparagraph style="-uslm-lc:I23" class="indent2"><num value="A">“(A)</num><heading> <inline class="small-caps">Definitions</inline>.—</heading><chapeau>In this subsection—</chapeau><clause style="-uslm-lc:I24" class="indent3"><num value="i">“(i)</num><chapeau> the term ‘cooperative procurement contract’ means a contract—</chapeau><subclause style="-uslm-lc:I36" class="indent4 firstIndent-4"><num value="I">     “(I)</num><content> entered into between a State government or eligible nonprofit entity and 1 or more vendors; and</content>
</subclause>
<subclause style="-uslm-lc:I36" class="indent4 firstIndent-4"><num value="II">     “(II)</num><content> under which the vendors agree to provide an option to purchase rolling stock and related equipment to multiple participants;</content>
</subclause>
</clause>
<clause style="-uslm-lc:I24" class="indent3"><num value="ii">“(ii)</num><chapeau> the term ‘eligible nonprofit entity’ means—</chapeau><subclause style="-uslm-lc:I36" class="indent4 firstIndent-4"><num value="I">     “(I)</num><content> a nonprofit cooperative purchasing organization that is not a grantee; or</content>
</subclause>
<subclause style="-uslm-lc:I36" class="indent4 firstIndent-4"><num value="II">     “(II)</num><content> a consortium of entities described in subclause (I);</content>
</subclause>
</clause>
<clause style="-uslm-lc:I24" class="indent3"><num value="iii">“(iii)</num><content> the terms ‘lead nonprofit entity’ and ‘lead procurement agency’ mean an eligible nonprofit entity or a State government, respectively, that acts in an administrative capacity on behalf of each participant in a cooperative procurement contract;</content>
</clause>
<clause style="-uslm-lc:I24" class="indent3"><num value="iv">“(iv)</num><content> the term ‘participant’ means a grantee that participates in a cooperative procurement contract; and</content>
</clause>
<clause style="-uslm-lc:I24" class="indent3"><num value="v">“(v)</num><content> the term ‘participate’ means to purchase rolling stock and related equipment under a cooperative procurement contract using assistance provided under chapter 53 of title 49, United States Code.</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-lc:I23" class="indent2"><num value="B">“(B)</num><heading> General rules.—</heading><clause style="-uslm-lc:I24" class="indent3"><num value="i">“(i)</num><heading> <inline class="small-caps">Procurement not limited to intrastate participants</inline>.—</heading><content>A grantee may participate in a cooperative procurement contract without regard to whether the grantee is located in the same State as the parties to the contract.</content>
</clause>
<clause style="-uslm-lc:I24" class="indent3"><num value="ii">“(ii)</num><heading> <inline class="small-caps">Voluntary participation</inline>.—</heading><content>Participation by grantees in a cooperative procurement contract shall be voluntary.</content>
</clause>
<clause style="-uslm-lc:I24" class="indent3"><num value="iii">“(iii)</num><heading> <inline class="small-caps">Contract terms</inline>.—</heading><content>The lead procurement agency or lead nonprofit entity for a cooperative procurement contract shall develop the terms of the contract.</content>
</clause>
<clause style="-uslm-lc:I24" class="indent3"><num value="iv">“(iv)</num><heading> <inline class="small-caps">Duration</inline>.—</heading><chapeau>A cooperative procurement contract—</chapeau><subclause style="-uslm-lc:I36" class="indent4 firstIndent-4"><num value="I">     “(I)</num><content> subject to subclauses (II) and (III), may be for an initial term of not more than 2 years;</content>
</subclause>
<subclause style="-uslm-lc:I36" class="indent4 firstIndent-4"><num value="II">     “(II)</num><content> may include not more than 3 optional extensions for terms of not more than 1 year each; and</content>
</subclause>
<subclause style="-uslm-lc:I36" class="indent4 firstIndent-4"><num value="III">     “(III)</num><content> may be in effect for a total period of not more than 5 years, including each extension authorized under subclause (II).</content>
</subclause>
</clause>
<clause style="-uslm-lc:I24" class="indent3"><num value="v">“(v)</num><heading> <inline class="small-caps">Administrative expenses</inline>.—</heading><chapeau>A lead procurement agency or lead nonprofit entity, as applicable, that enters into a cooperative procurement contract—</chapeau><subclause style="-uslm-lc:I36" class="indent4 firstIndent-4"><num value="I">     “(I)</num><content> may charge the participants in the contract for the cost of administering, planning, and providing technical assistance for the contract in an amount that is not more than 1 percent of the total value of the contract; and</content>
</subclause>
<subclause style="-uslm-lc:I36" class="indent4 firstIndent-4"><num value="II">     “(II)</num><content> with respect to the cost described in subclause (I), may incorporate the cost into the price of the contract or directly charge the participants for the cost, but not both.</content>
</subclause>
</clause>
</subparagraph>
</paragraph>
<paragraph style="-uslm-lc:I22" class="indent1"><num value="2">“(2)</num><heading> State cooperative procurement schedules.—</heading><subparagraph style="-uslm-lc:I23" class="indent2"><num value="A">“(A)</num><heading> <inline class="small-caps">Authority</inline>.—</heading><chapeau>A State government may enter into a cooperative procurement contract with 1 or more vendors if—</chapeau><clause style="-uslm-lc:I24" class="indent3"><num value="i">“(i)</num><content> the vendors agree to provide an option to purchase rolling stock and related equipment to the State government and any other participant; and</content>
</clause>
<clause style="-uslm-lc:I24" class="indent3"><num value="ii">“(ii)</num><content> the State government acts throughout the term of the contract as the lead procurement agency.</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-lc:I23" class="indent2"><num value="B">“(B)</num><heading> <inline class="small-caps">Applicability of policies and procedures</inline>.—</heading><content>In procuring rolling stock and related equipment under a cooperative procurement contract under this subsection, a State government shall comply with the policies and procedures that apply to procurement by the State government when using non-Federal funds, to the extent that the policies and procedures are in conformance with applicable Federal law.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-lc:I22" class="indent1"><num value="3">“(3)</num><heading> Pilot program for nonprofit cooperative procurements.—</heading><subparagraph style="-uslm-lc:I23" class="indent2"><num value="A">“(A)</num><heading> <inline class="small-caps">Establishment</inline>.—</heading><content>The Secretary [of Transportation] shall establish and carry out a pilot program to demonstrate the effectiveness of cooperative procurement contracts administered by eligible nonprofit entities.</content>
</subparagraph>
<subparagraph style="-uslm-lc:I23" class="indent2"><num value="B">“(B)</num><heading> <inline class="small-caps">Designation</inline>.—</heading><content>In carrying out the program under this paragraph, the Secretary shall designate not less than 3 eligible nonprofit entities to enter into a cooperative procurement contract under which the eligible nonprofit entity acts throughout the term of the contract as the lead nonprofit entity.</content>
</subparagraph>
<subparagraph style="-uslm-lc:I23" class="indent2"><num value="C">“(C)</num><heading> <inline class="small-caps">Notice of intent to participate</inline>.—</heading><content>At a time determined appropriate by the lead nonprofit entity, each participant in a cooperative procurement contract under this paragraph shall submit to the lead nonprofit entity a nonbinding notice of intent to participate.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-lc:I22" class="indent1"><num value="4">“(4)</num><heading> Joint procurement clearinghouse.—</heading><subparagraph style="-uslm-lc:I23" class="indent2"><num value="A">“(A)</num><heading> <inline class="small-caps">In general</inline>.—</heading><content>The Secretary shall establish a clearinghouse for the purpose of allowing grantees to aggregate planned rolling stock purchases and identify joint procurement participants.</content>
</subparagraph>
<subparagraph style="-uslm-lc:I23" class="indent2"><num value="B">“(B)</num><heading> <inline class="small-caps">Nonprofit consultation</inline>.—</heading><content>In establishing the clearinghouse under subparagraph (A), the Secretary may consult with nonprofit entities with expertise in public transportation or procurement, and other stakeholders as the Secretary determines appropriate.</content>
</subparagraph>
<subparagraph style="-uslm-lc:I23" class="indent2"><num value="C">“(C)</num><heading> <inline class="small-caps">Information on procurements</inline>.—</heading><content>The clearinghouse may include information on bus size, engine type, floor type, and any other attributes necessary to identify joint procurement participants.</content>
</subparagraph>
<subparagraph style="-uslm-lc:I23" class="indent2"><num value="D">“(D)</num><heading> Limitations.—</heading><clause style="-uslm-lc:I24" class="indent3"><num value="i">“(i)</num><heading> <inline class="small-caps">Access</inline>.—</heading><content>The clearinghouse shall only be accessible to the Federal Transit Administration, a nonprofit entity coordinating for such clearinghouse with the Secretary, and grantees.</content>
</clause>
<clause style="-uslm-lc:I24" class="indent3"><num value="ii">“(ii)</num><heading> <inline class="small-caps">Participation</inline>.—</heading><content>No grantee shall be required to submit procurement information to the database.</content>
</clause>
</subparagraph>
</paragraph>
</subsection>
<subsection style="-uslm-lc:I21" class="indent0"><num value="c">“(c)</num><heading> Leasing Arrangements.—</heading><paragraph style="-uslm-lc:I22" class="indent1"><num value="1">“(1)</num><heading> Capital lease defined.—</heading><subparagraph style="-uslm-lc:I23" class="indent2"><num value="A">“(A)</num><heading> <inline class="small-caps">In general</inline>.—</heading><content>In this subsection, the term ‘capital lease’ means any agreement under which a grantee acquires the right to use rolling stock or related equipment for a specified period of time, in exchange for a periodic payment.</content>
</subparagraph>
<subparagraph style="-uslm-lc:I23" class="indent2"><num value="B">“(B)</num><heading> <inline class="small-caps">Maintenance</inline>.—</heading><content>A capital lease may require that the lessor provide maintenance of the rolling stock or related equipment covered by the lease.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-lc:I22" class="indent1"><num value="2">“(2)</num><heading> Program to support innovative leasing arrangements.—</heading><subparagraph style="-uslm-lc:I23" class="indent2"><num value="A">“(A)</num><heading> <inline class="small-caps">Authority</inline>.—</heading><chapeau>A grantee may use assistance provided under chapter 53 of title 49, United States Code, to enter into a capital lease if—</chapeau><clause style="-uslm-lc:I24" class="indent3"><num value="i">“(i)</num><content> the rolling stock or related equipment covered under the lease is eligible for capital assistance under such chapter; and</content>
</clause>
<clause style="-uslm-lc:I24" class="indent3"><num value="ii">“(ii)</num><content> there is or will be no Federal interest in the rolling stock or related equipment covered under the lease as of the date on which the lease takes effect.</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-lc:I23" class="indent2"><num value="B">“(B)</num><heading> <inline class="small-caps">Grantee requirements</inline>.—</heading><chapeau>A grantee that enters into a capital lease shall—</chapeau><clause style="-uslm-lc:I24" class="indent3"><num value="i">“(i)</num><content> maintain an inventory of the rolling stock or related equipment acquired under the lease; and</content>
</clause>
<clause style="-uslm-lc:I24" class="indent3"><num value="ii">“(ii)</num><content> maintain on the accounting records of the grantee the liability of the grantee under the lease.</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-lc:I23" class="indent2"><num value="C">“(C)</num><heading> <inline class="small-caps">Eligible lease costs</inline>.—</heading><chapeau>The costs for which a grantee may use assistance under chapter 53 of title 49, United States Code, with respect to a capital lease, include—</chapeau><clause style="-uslm-lc:I24" class="indent3"><num value="i">“(i)</num><content> the cost of the rolling stock or related equipment;</content>
</clause>
<clause style="-uslm-lc:I24" class="indent3"><num value="ii">“(ii)</num><content> associated financing costs, including interest, legal fees, and financial advisor fees;</content>
</clause>
<clause style="-uslm-lc:I24" class="indent3"><num value="iii">“(iii)</num><content> ancillary costs such as delivery and installation charges; and</content>
</clause>
<clause style="-uslm-lc:I24" class="indent3"><num value="iv">“(iv)</num><content> maintenance costs.</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-lc:I23" class="indent2"><num value="D">“(D)</num><heading> <inline class="small-caps">Terms</inline>.—</heading><content>A grantee shall negotiate the terms of any lease agreement that the grantee enters into.</content>
</subparagraph>
<subparagraph style="-uslm-lc:I23" class="indent2"><num value="E">“(E)</num><heading> Applicability of procurement requirements.—</heading><clause style="-uslm-lc:I24" class="indent3"><num value="i">“(i)</num><heading> <inline class="small-caps">Lease requirements</inline>.—</heading><content>Part 639 of title 49, Code of Federal Regulations, or any successor regulation, and implementing guidance applicable to leasing shall not apply to a capital lease.</content>
</clause>
<clause style="-uslm-lc:I24" class="indent3"><num value="ii">“(ii)</num><heading> <inline class="small-caps">Buy america</inline>.—</heading><content>The requirements under <ref href="/us/usc/t49/s5323/j">section 5323(j) of title 49</ref>, United States Code, shall apply to a capital lease.</content>
</clause>
</subparagraph>
</paragraph>
<paragraph style="-uslm-lc:I22" class="indent1"><num value="3">“(3)</num><heading> Capital leasing of certain zero emission vehicle components.—</heading><subparagraph style="-uslm-lc:I23" class="indent2"><num value="A">“(A)</num><heading> <inline class="small-caps">Definitions</inline>.—</heading><chapeau>In this paragraph—</chapeau><clause style="-uslm-lc:I24" class="indent3"><num value="i">“(i)</num><chapeau> the term ‘removable power source’—</chapeau><subclause style="-uslm-lc:I36" class="indent4 firstIndent-4"><num value="I">     “(I)</num><content> means a power source that is separately installed in, and removable from, a zero emission vehicle; and</content>
</subclause>
<subclause style="-uslm-lc:I36" class="indent4 firstIndent-4"><num value="II">     “(II)</num><content> may include a battery, a fuel cell, an ultra-capacitor, or other advanced power source used in a zero emission vehicle; and</content>
</subclause>
</clause>
<clause style="-uslm-lc:I24" class="indent3"><num value="ii">“(ii)</num><content> the term ‘zero emission vehicle’ has the meaning given the term in <ref href="/us/usc/t49/s5339/c">section 5339(c) of title 49</ref>, United States Code.</content>
</clause>
</subparagraph>
<subparagraph style="-uslm-lc:I23" class="indent2"><num value="B">“(B)</num><heading> <inline class="small-caps">Leased power sources</inline>.—</heading><content>Notwithstanding any other provision of law, for purposes of this subsection, the cost of a removable power source that is necessary for the operation of a zero emission vehicle shall not be treated as part of the cost of the vehicle if the removable power source is acquired using a capital lease.</content>
</subparagraph>
<subparagraph style="-uslm-lc:I23" class="indent2"><num value="C">“(C)</num><heading> <inline class="small-caps">Eligible capital lease</inline>.—</heading><content>A grantee may acquire a removable power source by itself through a capital lease.</content>
</subparagraph>
<subparagraph style="-uslm-lc:I23" class="indent2"><num value="D">“(D)</num><heading> <inline class="small-caps">Procurement regulations</inline>.—</heading><content>For purposes of this section, a removable power source shall be subject to section 200.88 of title 2, Code of Federal Regulations.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-lc:I22" class="indent1"><num value="4">“(4)</num><heading> <inline class="small-caps">Reporting requirement</inline>.—</heading><chapeau>Not later than 3 years after the date on which a grantee enters into a capital lease under this subsection, the grantee shall submit to the Secretary a report that contains—</chapeau><subparagraph style="-uslm-lc:I23" class="indent2"><num value="A">“(A)</num><content> an evaluation of the overall costs and benefits of leasing rolling stock; and</content>
</subparagraph>
<subparagraph style="-uslm-lc:I23" class="indent2"><num value="B">“(B)</num><content> a comparison of the expected short-term and long-term maintenance costs of leasing versus buying rolling stock.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-lc:I22" class="indent1"><num value="5">“(5)</num><heading> <inline class="small-caps">Report</inline>.—</heading><content>The Secretary shall make publicly available an annual report on this subsection for each fiscal year, not later than December 31 of the calendar year in which that fiscal year ends. The report shall include a detailed description of the activities carried out under this subsection, and evaluation of the program including the evaluation of the data reported in paragraph (4).</content>
</paragraph>
</subsection>
<subsection style="-uslm-lc:I21" class="indent0"><num value="d">“(d)</num><heading> <inline class="small-caps">Buy America</inline>.—</heading><content>The requirements of <ref href="/us/usc/t49/s5323/j">section 5323(j) of title 49</ref>, United States Code, shall apply to all procurements under this section.”</content>
</subsection>
</quotedContent>
</p>
</note>
</notes>
</section>