1. FLY AMERICA ACT BUY AMERICAN ACT
Presented by DGCA

2. Buy and Fly American
The Fly America Act (1974) is incorporated into the Federal Acquisition Regulations (FAR) at Subpart 47.4—Air Transportation by U.S.‑Flag Carriers and is, therefore, applicable to all U.S. government contracts issued to U.S. and non‑U.S. companies, except for commercial item contractors, which are exempt from the act under Part  of the FAR
The Buy American Act (1933) is incorporated into the Federal Acquisition Regulations (FAR) at Subpart and provides policies and procedures for—
Acquisition of foreign supplies, services, and construction materials; and
Contracts performed outside the United States.
It implements the Buy American Act, trade agreements, and other laws and regulations

3. What is the Fly America Act
The "Fly America Act" refers to the provisions enacted by section 5 of the International Air Transportation Fair Competitive Practices Act of 1974 (pub. L , Jan. 3, 1975), 49 U.S.C. App. 1517, as amended by section 21 of the International Air Transportation Competition Act of 1979 (Pub. L , Feb. 15, 1980). 94 Stat. 43
Definitions
1. The Fly America Act. The "Fly America Act" refers to the provisions enacted by section 5 of the International Air Transportation Fair Competitive Practices Act of 1974 (pub. L , Jan. 3, 1975), 49 U.S.C. App. 1517, as amended by section 21 of the International Air Transportation Competition Act of 1979 (Pub. L , Feb. 15, 1980). 94 Stat. 43.
2. U.S. Flag Air Carrier. The term "U.S. flag air carrier" means an air carrier holding a certificate under section 401 of the Federal Aviation Act of 1958 (49 U.S.C. App. 1371). Foreign air carriers operating under permits are excluded.
3. United States. For purposes of the Fly America Act, "United States" means the 50 states, the District of Columbia, and the territories and possessions of the United States (49 U.S.C. App. 1301(38)).
4. Gateway Airport in the United States. A "gateway airport in the United States" means the last airport in the United States from which the traveler's flight departs, or the first airport in the United States at which the traveler's flight arrives.
5. Gateway Airport Abroad. "A gateway airport abroad" means the airport abroad from which the traveler last embarks enroute to the United States or at which the traveler first debarks incident to travel from the United States.

4. What is the Fly America Act
The Fly America Act is incorporated into the Federal Acquisition Regulations (FAR) at Subpart 47.4—Air Transportation by U.S.‑Flag Carriers and is, therefore, applicable to all U.S. government contracts issued to U.S. and non‑U.S. companies, except for commercial item contractors, which are exempt from the act under Part  of the FAR
The Fly America Act is applicable to all travel funded by United States federal government funds and requires the use of "U.S. flag" airlines (with a few exceptions. These individuals include U.S. federal government employees, their dependents, consultants, contractors, grantees, and others

5. Rutgers Travel Policy Section: 40.4.1
Section Title: Travel and Business Meal Expense Policies & Procedures
Policy Name: Travel, Travel Incidentals, and Meal Expense Policy
Formerly Book: , University Travel Policy and Procedures
Approval Authority: Senior Vice President for Finance and Administration
Responsible Executive: Senior Vice President for Finance and Administration
Responsible Office: Office of Finance and Administration
Originally Issued: 1961
Revisions: 4/16/2004; 3/1/2005; Addendum to Section I.5, Effective 11/1/2005 (see footnote, page 5); 7/1/2006 (removed 7¢ per mile supplemental mileage reimbursement in Section I.5)

6. Travel Under Sponsored Programs : (Sec 40.4.1/Sec D. p. 2)
Specific procedures for travel related to sponsored programs are outlined in the Policies and Procedures for Travel and Business Expense Reimbursement on Grants and Contracts and are issued by the Division of Grant and Contract Accounting (DGCA). The DGCA website can be found at
Federal agencies allow only charges from U.S. airlines, unless specific prior approval is obtained. Lower cost is not an acceptable reason to use a non-U.S. airline

7. Making Travel Reservations at Rutgers
Travelers are permitted to make travel arrangements wherever they choose and are encouraged to make the purchase directly from the airline or rail website as a cost containment strategy.
Upon your return from the business trip, process a TABER for reimbursement of travel-related expenses. Travelers also have the option to purchase air and rail tickets utilizing the direct billing option through any of the preferred travel agencies.
The cost of the ticket is charged to the University using the direct billing option but the travel agency will charge a per transaction service fee.
Procurement website

8. Requirements
The Fly America Act, 49 U.S.C. App. 1517, as implemented in the Comptroller General's guidelines, Decision B , March 31, 1981, requires Federal employees and their dependents, consultants, contractors, grantees, and others performing United States Government financed foreign air travel to travel by U.S. flag air carriers:
Use of foreign air carrier service may be deemed necessary if a U.S. flag air carrier otherwise available cannot provide the air transportation needed, or use of U.S. flag air carrier service will not accomplish the agency's mission.
The Fly America Act, 49 U.S.C. App. 1517, as implemented in the Comptroller General's guidelines, Decision B , March 31, 1981, requires Federal employees and their dependents, consultants, contractors, grantees, and others performing United States Government financed foreign air travel to travel by U.S. flag air carriers:
1. Unless travel by foreign air carrier is a matter of necessity as defined in paragraph (b)(3) of this section, or
2. When U.S. flag air carrier service is available within the guidelines in paragraphs (b)(4)(5) of this section

9. General U.S. flag air carrier service is available even though:
Comparable or a different kind of service can be provided at less cost by a foreign air carrier;
Foreign air carrier service is preferred by or is more convenient for the agency or traveler; or,
Service by a foreign air carrier can be paid for in excess foreign currency, unless U.S. flag air carriers decline to accept excess foreign currencies for transportation payable only out of these monies.

10. Scheduling Principals.
In determining availability of U.S. flag air carrier service, the following scheduling principals should be followed unless their application results in the last or first leg of travel to and from the United States being performed by foreign air carrier:
U.S. flag air carrier service available at point of origin should be used to destination or, in the absence of direct or through service, to the furthest interchange point on a usually traveled route;
Where an origin or interchange point is not served by U.S. flag air carrier, foreign air carrier service should be used only to the nearest interchange point on a usually traveled route to connect with U.S. flag carrier service; or,
Where a U.S. flag air carrier involuntarily re-routes the traveler via a foreign air carrier, the foreign air carrier may be used notwithstanding the availability of alternative U.S. flag air carrier service

11. Guidelines for Determining Unavailability of U. S
Guidelines for Determining Unavailability of U.S. Flag Air Carrier Service
Travel to and from the United States
Travel Between Two Points Outside the United States
Short Distance Travel
Travel Finances Solely with Excess Foreign Currencies
Travel to and from the United States:
Passenger service by a U.S. flag air carrier will not be considered available when the travel is between a gateway airport in the United States and a gateway airport abroad and the gateway airport abroad is:
The traveler's origin or destination airport, and the use of U.S. flag air carrier service would extend the time in a travel status, including delay at origin and accelerated arrival at destination, by at least 24 hours more than travel by foreign air carrier
Travel Between Two Points Outside the United States:
For travel between two points outside the United States, U.S. flag air carrier service will not be considered to be reasonably available:
If travel by foreign air carrier would eliminate two or more aircraft changes enroute;
Where one of the two points abroad is the gateway airport en route to or from the United States, if the use of the U.S. flag air carrier would extend the time in travel status by at least 6 hours more than travel by a foreign air carrier, including accelerated arrival at the overseas destination or delayed departure from the overseas origin, as well as the gateway airport or other interchange point abroad; or,
Where the travel is not part of a trip to or from the United States, if the use of a U.S. flag air carrier would extend the time in travel status by at least 6 hours more than traveled by foreign air carrier including delay at origin, delay en route and accelerated arrival at destination.
Short Distance Travel:
For all short distance travel, regardless of origin and destination, U.S. flag air carrier service will not be considered available when the elapsed travel time on a scheduled flight from origin to destination airport by foreign air carrier is 3 hours or less and service by U.S. flag air carrier would involve twice the travel time
Travel Finances Solely with Excess Foreign Currencies:
U.S. flag air carriers render themselves unavailable by declining to accept payment in foreign currencies for transportation services required by certain programs or activities of the Government which, under legislative authority, are financed solely with excess foreign currencies which may not be converted to U.S. dollars. In these instances, and notwithstanding the provisions of paragraph (b)(4)(I)(C) of this section, foreign flag air carriers that will accept the required foreign currency may be used to the extent necessary to accomplish the mission of the particular program or activity. The statement of justification required under paragraph (c)(3) of this section must indicate that the transportation service needed can be paid for only in excess foreign currencies and that otherwise available U.S. flag air carriers declined to accept payment in the foreign currencies

12. USE OF FOREIGN FLAG AIR CARRIERS
Authorization or Approval
Air Transport Agreements
Justification Statement
Employee Liability for Disallowed Expenditures
Authorization or Approval: Expenditures
for commercial foreign air transportation on foreign air carrier(s) will be disallowed unless there is attached to the appropriate voucher a certificate or memorandum adequately explaining why service by U.S. flag air carrier(s) is not available, or why it was necessary to use a foreign air carrier. Use of foreign flag air carriers may be authorized or approved only when U.S. flag air carrier service is not available as determined under the guidelines in paragraph (b) of this section, or when foreign air carriers are used under the reciprocal terms of an appropriate bilateral or multilateral agreement as described in paragraph (c)(2) of this section
Air Transport Agreements:
Nothing in the guidelines in paragraph(b) of this section shall preclude and no penalty shall attend the use of a foreign air carrier which provides transportation under an air transport agreement between the United States and a foreign government, the terms of which are consistent with the international aviation goals set forth at 49 U.S.C. App. 1502(b) and provide reciprocal rights and benefits
Justification Statement:
A statement executed by the traveler or agency justifying the use of a foreign flag air carrier for any part of foreign travel must be entered on or attached to the travel voucher, transportation request, or any other payment document. Each request for a change in route or schedule which involves the use of a foreign flag air carrier must be accompanied by a statement justifying such use. The following is a guide for preparing the justification statement:
Employee Liability for Disallowed Expenditures:
Where the travel is by indirect route or the traveler otherwise fails to use available U.S. flag air carrier service, the amount to be disallowed against the traveler is based on the loss of revenues suffered by U.S. flag air carriers as determined under the following formula set forth and more fully explained in 56 Comp. Gen. 209 (1977

13. CODE SHARING
On September 25, 1991 the Comptroller General released a decision regarding the Code Sharing of flights by U.S. and foreign flag carriers utilizing the equipment of the foreign flag carrier:
The question in this case, presented by the Department of State, is whether a U.S. flag air carrier's arrangement to provide passenger service in international air transportation on the aircraft of a foreign air carrier under a "code-share" arrangement with the foreign air carrier would meet the requirements of the Fly America Act, 49 U.S.C. App (1988). Since it appears that such service generally would be considered to be service by a U.S. air carrier in international air transportation rather than by a foreign air carrier, that service should also be considered transportation provided by a U.S. air carrier for purposes of the Fly America Act.

14. Buy American Act
The Buy American Act (BAA - 41 U.S.C. §§ 10a–10d) passed in 1933 by Congress and signed by President Hoover on his last full day in office (March 3, 1933), required the United States government to prefer U.S.-made products in its purchases. Buy American may be applied to all direct US federal procurement
The Buy American Act is not to be confused with the very similarly named Buy America Act, which came into effect in The latter, a provision of the Surface Transportation Assistance Act of 1982, is 49 U.S.C., section 5323 (j), and applies only to mass-transit-related procurements valued over US$100,000 and funded at least in part by federal grants issued by the Federal Transit Administration and Federal Highway Administration.

15. The Buy American Act (a) The Buy American Act:
(1) Restricts the purchase of supplies, that are not domestic end products, for use within the United States. A foreign end product may be purchased if the contracting officer determines that the price of the lowest domestic offer is unreasonable or if another exception applies (see Subpart 25.1); and
(2) Requires, with some exceptions, the use of only domestic construction materials in contracts for construction in the United States (see Subpart 25.2).
(b) The restrictions in the Buy American Act are not applicable in acquisitions subject to certain trade agreements (see Subpart 25.4). In these acquisitions, end products and construction materials from certain countries receive nondiscriminatory treatment in evaluation with domestic offers. Generally, the dollar value of the acquisition determines which of the trade agreements applies. Exceptions to the applicability of the trade agreements are described in Subpart 25.4.
(c) The test to determine the country of origin for an end product under the Buy American Act (see the various country “end product” definitions in ) is different from the test to determine the country of origin for an end product under the trade agreements, or the criteria for the report on end products manufactured outside the United States (see ).
(1) The Buy American Act uses a two-part test to define a “domestic end product”or “domestic construction material” (manufactured in the United States and a formula based on cost of domestic components). The component test has been waived for acquisition of commercially available off-the-shelf items.
(2) Under the trade agreements, the test to determine country of origin is “substantial transformation” (i.e., transforming an article into a new and different article of commerce, with a name, character, or use distinct from the original article).
(3) For the reporting requirement at , the only criterion is whether the place of manufacture of an end product is in the United States or outside the United States, without regard to the origin of the components.
(4) When using funds appropriated under the American Recovery and Reinvestment Act of 2009 (Pub. L ), the definition of “domestic manufactured construction material” requires manufacture in the United States but does not include a requirement with regard to the origin of the components. If the construction material consists wholly or predominantly of iron or steel, the iron or steel must be produced in the United States

16. Subpart 25.6—American Recovery and Reinvestment Act—Buy American Act—Construction Materials
This subpart implements section 1605 in Division A of the American Recovery and Reinvestment Act of 2009 (Pub. L ) (Recovery Act) with regard to manufactured construction material and the Buy American Act with regard to unmanufactured construction material. It applies to construction projects that use funds appropriated or otherwise provided by the Recovery Act.
  Section 1605 of the Recovery Act.
Except as provided in —
(a) None of the funds appropriated or otherwise made available by the Recovery Act may be used for a project for the construction, alteration, maintenance, or repair of a public building or public work unless the public building or public work is located in the United States and—
(1) All of the iron, steel, and manufactured goods used as construction material in the project are produced or manufactured in the United States.
(i) All manufactured construction material must be manufactured in the United States.
(ii) Iron or steel components.
(A) Iron or steel components of construction material consisting wholly or predominantly of iron or steel must be produced in the United States. This does not restrict the origin of the elements of the iron or steel, but requires that all manufacturing processes of the iron or steel must take place in the United States, except metallurgical processes involving refinement of steel additives.
(B) The requirement in paragraph (a)(1)(ii)(A) of this section does not apply to iron or steel components or subcomponents in construction material that does not consist wholly or predominantly of iron or steel.
(iii) All other components. There is no restriction on the origin or place of production or manufacture of components or subcomponents that do not consist of iron or steel.
(iv) Examples.
(A) If a steel guardrail consists predominantly of steel, even though coated with aluminum, then the steel would be subject to the section 1605 restriction requiring that all stages of production of the steel occur in the United States, in addition to the requirement to manufacture the guardrail in the United States. There would be no restrictions on the other components of the guardrail.
(B) If a wooden window frame is delivered to the site as a single construction material, there is no restriction on any of the components, including the steel lock on the window frame; or
(2) If trade agreements apply, the manufactured construction material shall either comply with the requirements of paragraph (a)(1) of this subsection, or be wholly the product of or be substantially transformed in a Recovery Act designated country;
(b) Manufactured materials purchased directly by the Government and delivered to the site for incorporation into the project shall meet the same domestic source requirements as specified for manufactured construction material in paragraphs (a)(1) and (a)(2) of this section; and
(c) A project may include several contracts, a single contract, or one or more line items on a contract.
  Buy American Act.
Except as provided in , use only unmanufactured construction material mined or produced in the United States, as required by the Buy American Act or, if trade agreements apply, unmanufactured construction material mined or produced in a designated country may also be used.
25.603  Exceptions.
(a)(1) When one of the following exceptions applies, the contracting officer may allow the contractor to incorporate foreign manufactured construction materials without regard to the restrictions of section 1605 of the Recovery Act or foreign unmanufactured construction material without regard to the restrictions of the Buy American Act:
(i) Nonavailability. The head of the contracting activity may determine that a particular construction material is not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities of a satisfactory quality. The determinations of nonavailability of the articles listed at (a) and the procedures at (b)(1) also apply if any of those articles are acquired as construction materials.
(ii) Unreasonable cost. The contracting officer concludes that the cost of domestic construction material is unreasonable in accordance with
(iii) Inconsistent with public interest. The head of the agency may determine that application of the restrictions of section 1605 of the Recovery Act to a particular manufactured construction material, or the restrictions of the Buy American Act to a particular unmanufactured construction material would be inconsistent with the public interest.
(2) In addition, the head of the agency may determine that application of the Buy American Act to a particular unmanufactured construction material would be impracticable.
(b) Determinations. When a determination is made, for any of the reasons stated in this section, that certain foreign construction materials may be used—
(1) The contracting officer shall list the excepted materials in the contract; and
(2) For determinations with regard to the inapplicability of section 1605 of the Recovery Act, unless the construction material has already been determined to be domestically nonavailable (see list at ), the head of the agency shall provide a notice to the Federal Register within three business days after the determination is made, with a copy to the Administrator for Federal Procurement Policy and to the Recovery Accountability and Transparency Board. The notice shall include—
(i) The title “Buy American Exception under the American Recovery and Reinvestment Act of 2009”;
(ii) The dollar value and brief description of the project; and
(iii) A detailed justification as to why the restriction is being waived.
(c) Acquisitions under trade agreements.
(1) For construction contracts with an estimated acquisition value of $7,777,000 or more, also see subpart Offers proposing the use of construction material from a designated country shall receive equal consideration with offers proposing the use of domestic construction material.
(2) For purposes of applying section 1605 of the Recovery Act to evaluation of manufactured construction material, designated countries do not include the Caribbean Basin Countries.

17. Applicability of subparts

18. THE END