FTA Issues Dear Colleague Letter re Bus Procurement, Manufacturing
2/8/2024
FTA is taking actions to strengthen the American bus manufacturing industry, reduce vehicle contract costs, and shorten vehicle delivery times, all of which is described in this Dear Colleague letter. The guidance comes as public transit agencies seek to procure buses using the historic investment provided by the 2021 Bipartisan Infrastructure Law.
The letter consolidates FTA’s existing guidance and highlights tools available to public transit agencies to address trends and challenges in federally funded bus procurements, including information about managing component prices, modifying contracts, lowering vehicle contract and production costs, and reducing unnecessary customization.
Actions and technical assistance resources include:
- A new bus procurement webpage, with updated FAQs
- New priority considerations in the FY24 Buses and Bus Facilities and Low- or No-Emission Notice of Funding Opportunity
- An FTA-hosted bus procurement best practices webinar
- National Transit Institute procurement courses
- Formation of a new FTA Acquisition Oversight Division