§50103 — Title 49 Transportation | U.S. Code

Summary

Domestic firm: a company incorporated and doing business in the United States. Foreign firm: a company that is not a domestic firm. The FAA Administrator may choose a domestic firm instead of a foreign firm for a contract tied to a grant under sections 44511, 44512, or 44513 if the FAA head decides and the Secretary of Commerce and the U.S. Trade Representative agree it is in the public interest; the foreign bid is no more than 6 percent cheaper; the domestic firm will assemble the final product entirely in the United States; and at least 51 percent of the final product will be made in the United States. This choice does not apply if national security requires otherwise or if the Trade Representative finds it would violate multilateral trade agreements (see 19 U.S.C. 3501(4)). The rule only covers contracts tied to grants with amounts authorized by section 48102(a), (b), or (d) for the fiscal years ending September 30, 1991, and September 30, 1992, and for solicitations issued after November 5, 1990. The FAA must report to Congress on the covered contracts that went to foreign firms in those fiscal years, how many met the domestic rules but were blocked by the Trade Representative for violating trade agreements, and how many contracts were awarded under this rule.

Title 49, §50103

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(a)In this section—

(1)“domestic firm” means a business entity incorporated, and conducting business, in the United States.

(2)“foreign firm” means a business entity not described in clause (1) of this subsection.

(b)Subject to subsections (c) and (d) of this section, the Administrator of the Federal Aviation Administration may make, with a domestic firm, a contract related to a grant made under section 44511, 44512, or 44513 of this title that, under competitive procedures, would be made with a foreign firm, if—

(1)the Administrator decides, and the Secretary of Commerce and the United States Trade Representative concur, that the public interest requires making the contract with the domestic firm, considering United States international obligations and trade relations;

(2)the difference between the bids submitted by the foreign firm and the domestic firm is not more than 6 percent;

(3)the final product of the domestic firm will be assembled completely in the United States; and

(4)at least 51 percent of the final product of the domestic firm will be produced in the United States.

(c)Subsection (b) of this section does not apply if—

(1)compelling national security considerations require that subsection (b) of this section not apply; or

(2)the Trade Representative decides that making the contract would violate the multilateral trade agreements (as defined in section 3501(4) of title 19) or an international agreement to which the United States is a party.

(d)This section applies only to a contract related to a grant made under section 44511, 44512, or 44513 of this title for which—

(1)an amount is authorized by section 48102(a), (b), or (d) of this title to be made available for the fiscal years ending September 30, 1991, and September 30, 1992; and

(2)a solicitation for bid is issued after November 5, 1990.

(e)The Administrator shall submit a report to Congress on—

(1)contracts to which this section applies that are made with foreign firms in the fiscal years ending September 30, 1991, and September 30, 1992;

(2)the number of contracts that meet the requirements of subsection (b) of this section, but that the Trade Representative decides would violate the multilateral trade agreements (as defined in section 3501(4) of title 19) or an international agreement to which the United States is a party; and

(3)the number of contracts made under this section.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 49103(a)49 App.:2226d(e).Nov. 5, 1990, Pub. L. 101–508, § 9207, 104 Stat. 1388–375. 49103(b)49 App.:2226d(a). 49103(c)49 App.:2226d(b). 49103(d)49 App.:2226d(c). 49103(e)49 App.:2226d(d). In subsection (a), the text of 49 App.:2226d(e)(1) is omitted because the complete name of the Administrator of the Federal Aviation Administration is used the first time the term appears in a section. In subsection (b), before clause (1), the words “Subject to subsections (c) and (d) of this section” are added to alert the reader to the limitations in those subsections. In clause (1), the words “requires making the contract with the domestic firm” are substituted for “so requires” for clarity. The words “considering United States international obligations and trade relations” are substituted for “In determining under this subsection whether the public interest so requires, the Administrator shall take into account United States international obligations and trade relations” to eliminate unnecessary words. In clause (4), the words “when completely assembled” are omitted as surplus. The words “produced in the United States” are substituted for “domestically produced” for consistency with clause (3). In subsection (c), the words “(1) such applicability would not be in the public interest” are omitted as redundant to subsection (b)(1) of the revised section. In subsection (e)(1), the words “foreign firms” are substituted for “foreign entities” for consistency in the revised section. Subsection (e)(3) is substituted for “the number of contracts covered under this subtitle (including the

Amendments

made by this subtitle) and awarded based upon the parameters of this section” to eliminate unnecessary words.

Editorial Notes

Amendments

1999—Subsecs. (c)(2), (e)(2). Pub. L. 106–36 substituted “multilateral trade agreements (as defined in section 3501(4) of title 19)” for “General Agreement on Tariffs and Trade”. 1996—Pub. L. 104–287 renumbered section 49103 of this title as this section.

§50103 Contract Preference for Domestic Firms

Summary

Title 49, §50103

Notes & Related Subsidiaries

Historical and Revision Notes

Amendments

Editorial Notes

Amendments

Citations & Metadata