EMAIL DETAILS

Hunter,

Can you please quickly review the e-mail below that I want to send Jennifer
Esposito, Staff Director of Congressman Oberstar?


>> Dear Jennifer,
>>
>> I left you a voice message last week. The purpose of that voice message and
>> of this e-mail is to get clarification on the correct interpretation of the
>> 100% requirement that both congressman Oberstar and the Administration are
>> constantly referring to in public.
>>
>> Talgo is the first train manufacturer that has been awarded a contract to
>> manufacture trains using ARRA funds granted through the FTA. That agency
>> requires that 60% of the components (Air conditioning equipment, doors,
>> seats, etc) be manufactured in the USA. In order for a component to qualify
>> as built in the USA it has to meet two tests: (i) that the final assembly
>> takes place in the USA and (ii) that 60% of the components are manufactured
>> in the USA. These guidelines have been used for years by the manufacturers of
>> trains and by the vendors of components and allows to buy build trains using
>> parts that are not built in the USA, which in many cases cannot be found in
>> the USA.
>>
>> Now an unclear request of 100% Buy America is required from manufacturers. If
>> the guidelines of the FTA are applicable to the 100% request, then 100% of
>> the components and 100% of the subcomponents should be built in the USA. The
>> vendors we are dealing with tell us that such goal in unattainable because it
>> would, in essence mean, that each bolt, screw, etc. would have to be made in
>> the US. Everyone understands a lot of components of parts manufactured in
>> the US come from other countries like China etc. .
>>
>> Talgo takes its commitments very seriously. Therefore , we are seeking
>> clarification on the 100% request to determine if it is worth to stay in a
>> market that has funds available but that will never be used due to the
>> conditions set to grant them.
>>
>> Since Congressman Oberstar was the author of the ARRA language, we are hoping
>> that the intent of the language will be clarified. We a quick response
>> because various states are asking us whether or not we can meet the ARRA
>> requirement but we don't know what 100% really means as vendors don't even
>> built parts that are 100% American.
>>
>> Could it mean that if the components are "mostly American" as in 80%, then it
>> is considered to pass the 100% Buy America.
>>
>> Please clarify with Mr. Oberstar. We did not hear back about Talgo's
>> willingness to establish a "US Training Work Force" either from Mr. Oberstar.
>>
>> I look forward to hearing from you or speaking with Mr. Oberstar on the phone
>> again as soon as possible for him.

Thank you

Antonio Perez
President & CEO
Cell: +1-202-286-0622