[Federal Register Volume 79, Number 214 (Wednesday, November 5, 2014)]
[Rules and Regulations]
[Pages 65816-65834]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-26161]
[[Page 65815]]
Vol. 79
Wednesday,
No. 214
November 5, 2014
Part III
Department of Defense
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Defense Acquisition Regulations System
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48 CFR Parts 212, 225, and 252
Defense Federal Acquisition Regulation Supplement: Clauses With
Alternates--Foreign Acquisition (DFARS Case 2013-D005); Final Rule
Federal Register / Vol. 79 , No. 214 / Wednesday, November 5, 2014 /
Rules and Regulations
[[Page 65816]]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 212, 225, and 252
RIN 0750-AH94
Defense Federal Acquisition Regulation Supplement: Clauses With
Alternates--Foreign Acquisition (DFARS Case 2013-D005)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
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SUMMARY: DoD is issuing a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to create separate
prescriptions for the basic clause as well as each alternate in each
set of foreign acquisition-related provisions/clauses with one or more
alternates. In addition, the rule includes the full text of each
provision or clause alternate.
DATES: Effective November 5, 2014.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, telephone 571-372-
6106.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the Federal Register at 79 FR 8387
on February 12, 2014, to revise the presentation of the DFARS part 225
clauses with alternates and their prescriptions. An umbrella
prescription is provided for the elements common to the basic clause
and the alternate. The specific prescriptions for the basic clause and
the alternate address the requirements for their use that enable the
selection of the basic or the alternate clause. The full text of each
provision and clause alternate is also included in the regulation.
II. Discussion and Analysis
No public comments were submitted in response to the proposed rule.
Although DFARS part 225 contains eight solicitation provisions and
clauses that have, or are, alternates, the proposed rule only addressed
six. The other two were to have been revised in another DFARS case;
however, that case was cancelled before publication. This final rule
includes these two clauses, 252.225-7044 and 252.225-7045, to reformat
them to conform to the new structure paradigm for clauses with
alternates. Additionally, some other minor wording changes are made for
clarity and consistency in presentation of the clauses and provisions.
III. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is not a significant regulatory action and, therefore, was not
subject to review under section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993. This rule is not a major rule
under 5 U.S.C. 804.
IV. Regulatory Flexibility Act
A final regulatory flexibility analysis has been prepared
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
and is summarized as follows:
This final rule amends the Defense Federal Acquisition Regulation
Supplement (DFARS) to revise the format, not the substance, of
prescriptions for provisions and clauses with alternates, and include
the full text of each provision or clause in each alternate. The rule
creates an overarching prescription for each set of provisions/clauses
with one or more alternates. The overarching prescription is intended
to include the common requirements for the use of that provision/clause
set.
This rule facilitates use of automated contract writing systems by
revising the prescription format for DFARS provisions/clauses that have
one or more alternates. This rule revises the prescription format so
that there is an overarching prescription that covers the elements that
the basic provision/clause and all its alternates have in common. A
separate prescription is provided for use of the basic prescription/
clause and each alternate. In addition, each alternate provision/clause
is presented in full text, not just the paragraph or section that is
different from the basic provision/clause. This makes the terms of a
provision or clause alternate clearer to offerors, as well as to DoD
contracting officers, because all paragraph substitutions will have
already been made. Inapplicable paragraphs from the basic provision/
clause that are superseded by the alternate will not be included in the
solicitation or contract to prevent confusion.
No comments were received from the public in response to the
initial regulatory flexibility analysis.
Potential offerors, including small businesses, initially may be
affected by this rule by seeing an unfamiliar format for provision/
clause alternates in solicitations and contracts issued by DoD
contracting activities. DoD awarded an average of 270,000 contract
actions (excluding modifications and orders) in Fiscal Year 2012, of
which an average of 180,000 (67%) were awarded to about 35,000 unique
small business entities. It is unknown as to how many of these
contracts were awarded that included an alternate to a DFARS provision
or clause. Nothing substantive will change in solicitations or
contracts for potential offerors, and only the appearance of how the
provision/clause alternates are presented in solicitations and
contracts will be changed. This rule may result in potential offerors,
including small businesses, expending more time to become familiar with
and to understand the new format of provision/clause alternates in full
text contained in contracts issued by any DoD contracting activity. The
rule also anticipates saving contractors' time by making all paragraph
substitutions from the basic clause and by not requiring offerors to
read inapplicable paragraphs contained in the basic provisions/clauses
where alternates are also included in the solicitations and contracts.
The overall burden caused by this rule is expected to be negligible and
will not be any greater on small businesses than it is on large
businesses.
This rule does not add any new information collection, reporting,
or recording keeping requirements. No alternatives were determined that
will accomplish the objectives of the rule.
V. Paperwork Reduction Act
The rule does not contain any new information collection
requirements that require the approval of the Office of Management and
Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35).
List of Subjects in 48 CFR Parts 212, 225, and 252
Government procurement.
Manuel Quinones,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 212, 225, and 252 are amended as follows:
0
1. The authority citation for 48 CFR parts 212, 225, and 252 continues
to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
[[Page 65817]]
PART 212--ACQUISITION OF COMMERCIAL ITEMS
0
2. Amend section 212.301 by--
0
a. Revising paragraphs (f)(xxiii) and (xxiv);
0
b. In paragraph (f)(xxxiii)(A), removing the comma and adding a period
in its place;
0
c. In paragraph (f)(xxxiii)(B), removing ``Use the provision with its
Alternate I'' and adding ``Use the alternate I provision'' in its
place;
0
d. In paragraph (f)(xxxiv), introductory text, adding a comma after
``Trade Agreements'';
0
e. In paragraph (f)(xxxiv)(B), removing ``Use the clause with its
Alternate II'' and adding ``Use the alternate II clause'' in its place,
and removing ``225.1101(6)(iii)'' and adding ``225.1101(6)(ii)'' in its
place;
0
f. Revising paragraphs (f)(xlii)(B) through (F);
0
g. Revising paragraphs (f)(xliii)(B) through (F).
212.301 Solicitation provisions and contract clauses for the
acquisition of commercial items.
(f) * * *
(xxiii) Use the provision at 252.225-7000, Buy American--Balance of
Payments Program Certificate, to comply with 41 U.S.C. chapter 83 and
Executive Order 10582 of December 17, 1954, Prescribing Uniform
Procedures for Certain Determinations Under the Buy-American Act.
(A) Use the basic provision as prescribed in 225.1101(1)(i).
(B) Use the alternate I provision as prescribed in 225.1101(1)(ii).
(xxiv) Use the clause at 252.225-7001, Buy American and Balance of
Payments Program, to comply with 41 U.S.C. chapter 83 and Executive
Order 10582 of December 17, 1954, Prescribing Uniform Procedures for
Certain Determinations Under the Buy-American Act.
(A) Use the basic clause as prescribed in 225.1101(2)(ii).
(B) Use the alternate I clause as prescribed in 225.1101(2)(iii).
* * * * *
(xlii) * * *
(B) Use the alternate I provision as prescribed in 225.1101(9)(ii).
(C) Use the alternate II provision as prescribed in
225.1101(9)(iii).
(D) Use the alternate III provision as prescribed in
225.1101(9)(iv).
(E) Use the alternate IV provision as prescribed in 225.1101(9)(v).
(F) Use the alternate V provision as prescribed in 225.1101(9)(vi).
(xliii) * * *
(B) Use the alternate I clause as prescribed in 225.1101(10)(i)(B).
(C) Use the alternate II clause as prescribed in
225.1101(10)(i)(C).
(D) Use the alternate III clause as prescribed in
225.1101(10)(i)(D).
(E) Use the alternate IV clause as prescribed in
225.1101(10)(i)(E).
(F) Use the alternate V clause as prescribed in 225.1101(10)(i)(F).
* * * * *
PART 225--FOREIGN ACQUISITION
0
3. Amend section 225.1101 by--
0
a. Revising paragraph (1);
0
b. In paragraph (2)(i) introductory text, removing the phrase ``Use the
clause'' and adding ``Use the basic or the alternate of the clause'' in
its place;
0
c. Revising paragraph (2)(i)(B);
0
d. In paragraph (2)(i)(D) introductory text, removing ``One or both of
the following clauses'' and adding ``One or more of the basic or the
alternates of the following clauses'' in its place;
0
e. Redesignating paragraph (2)(ii) as paragraph (2)(iii), and adding a
new paragraph (2)(ii);
0
f. Revising the newly redesignated paragraph (2)(iii);
0
g. In paragraph (3) introductory text, removing the phrase ``that
include one of the following clauses:'' and adding ``that include the
basic or one of the alternates of the following clauses:'' in its
place;
0
h. Revising paragraph (5);
0
i. Redesignating paragraph (6)(i) as paragraph (6) introductory text,
revising the newly redesignated paragraph (6) introductory text, and
adding a new paragraph (6)(i);
0
j. Revising paragraph (6)(ii);
0
k. Revising paragraph (6)(iii) introductory text;
0
l. Revising paragraph (9);
0
m. Revising paragraph (10)(i); and
0
n. Revising paragraph (10)(ii) introductory text.
The revisions and additions read as follows:
225.1101 Acquisition of supplies.
(1) Use the basic or the alternate of the provision at 252.225-
7000, Buy American--Balance of Payments Program Certificate, instead of
the provision at FAR 52.225-2, Buy American Certificate, in any
solicitation, including solicitations using FAR part 12 procedures for
the acquisition of commercial items, that includes the basic or the
alternate of the clause at 252.225-7001, Buy American and Balance of
Payments Program. If the solicitation includes the provision at FAR
52.204-7, do not separately list the provision 252.225-7000 in the
solicitation.
(i) Use the basic provision when the solicitation includes the
basic clause at 252.225-7001.
(ii) Use the alternate I provision when the solicitation includes
alternate I of the clause at 252.225-7001.
(2)(i) * * *
(B) All line items require domestic or qualifying country end
products in accordance with subpart 225.70, but note that this
exception does not apply if subpart 225.70 only requires manufacture of
the end product in the United States or in the United States or Canada,
without a corresponding requirement for use of domestic components;
* * * * *
(ii) Use the basic clause if the acquisition is not of end products
listed in 225.401-70 in support of operations in Afghanistan.
(iii) Use the alternate I clause when the acquisition is of end
products listed in 225.401-70 in support of operations in Afghanistan.
* * * * *
(5) Use the basic or the alternate of the provision at 252.225-
7020, Trade Agreements Certificate, instead of the provision at FAR
52.225-6, Trade Agreements Certificate, in solicitations, including
solicitations using FAR part 12 procedures for the acquisition of
commercial items, that include the basic or alternate II of the clause
at 252.225-7021, Trade Agreements. If the solicitation includes the
provision at FAR 52.204-7, do not separately list the provision
252.225-7020 in the solicitation.
(i) Use the basic provision if the solicitation includes the basic
clause at 252.225-7021.
(ii) Use the alternate I provision if the solicitation includes
alternate II of the clause at 252.225-7021.
(6) Except as provided in paragraph (6)(iv) of this section, use
the basic or an alternate of the clause at 252.225-7021, Trade
Agreements, instead of the clause at FAR 52.225-5, Trade Agreements, in
solicitations and contracts, including solicitations and contracts
using FAR part 12 procedures for the acquisition of commercial items,
if the World Trade Organization Government Procurement Agreement
applies, i.e., the acquisition is of end products listed at 225.401-70,
the value of the acquisition equals or exceeds $204,000, and none of
the exceptions at 25.401(a) applies.
(i) Use the basic clause in solicitations and contracts that are
not of end products in support of operations in Afghanistan, or that
include the clause at 252.225-7024, Requirement for Products or
Services from Afghanistan.
[[Page 65818]]
(ii) Use the alternate II clause in solicitations and contracts
that do not include the clause at 252.225-7024, Requirement for
Products or Services from Afghanistan, when the acquisition is of end
products in support of operations in Afghanistan.
(iii) Do not use the basic or an alternate of the clause if--
* * * * *
(9) Use the basic or an alternate of the provision at 252.225-7035,
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate, instead of the provision at FAR 52.225-4, Buy American--
Free Trade Agreements--Israeli Trade Act Certificate, in solicitations,
including solicitations using FAR part 12 procedures for the
acquisition of commercial items, that include the basic or an alternate
of the clause at 252.225-7036, Buy American--Free Trade Agreements--
Balance of Payments Program. If the solicitation includes the provision
at FAR 52.204-7, do not separately list the provision 252.225-7035 in
the solicitation.
(i) Use the basic provision in solicitations when the basic of the
clause at 252.225-7036 is used.
(ii) Use the alternate I provision when the clause at 252.225-7036
is used with its Alternate I.
(iii) Use the alternate II provision when the clause at 252.225-
7036 is used with its Alternate II.
(iv) Use the alternate III provision when the clause at 252.225-
7036 is used with its Alternate III.
(v) Use the alternate IV provision when the clause at 252.225-7036
is used with its Alternate IV.
(vi) Use the alternate V provision when the clause at 252.225-7036
is used with its Alternate V.
(10)(i) Except as provided in paragraph (10)(ii) of this section,
use the basic or an alternate of the clause at 252.225-7036, Buy
American--Free Trade Agreements--Balance of Payments Program, instead
of the clause at FAR 52.225-3, Buy American--Free Trade Agreements--
Israeli Trade Act, in solicitations and contracts, including
solicitations and contracts using FAR part 12 procedures for the
acquisition of commercial items, for the items listed at 225.401-70,
when the estimated value equals or exceeds $25,000, but is less than
$204,000, unless an exception at 25.401 applies.
(A) Use the basic clause in solicitations and contracts when the
estimated value equals or exceeds $79,507, except if the acquisition is
of end products in support of operations in Afghanistan.
(B) Use the alternate I clause in solicitations and contracts when
the estimated value is less than $79,507, except if the acquisition is
of end products in support of operations in Afghanistan.
(C) Use the alternate II clause in solicitations and contracts when
the estimated value equals or exceeds $100,000 and the acquisition is
of end products in support of operations in Afghanistan.
(D) Use the alternate III clause in solicitations and contracts
when the estimated value is less than $79,507 and the acquisition is of
end products in support of operations in Afghanistan.
(E) Use the alternate IV clause in solicitations and contracts when
the estimated value equals or exceeds $79,507 but is less than
$100,000, except if the acquisition is of end products in support of
operations in Afghanistan.
(F) Use the alternate V clause in solicitations and contracts when
the estimated value equals or exceeds $79,507 but is less than $100,000
and the acquisition is of end products in support of operations in
Afghanistan.
(ii) Do not use the basic or an alternate of the clause in
paragraph (10)(i) of this section if--
* * * * *
0
4. Revise section 225.7503 to read as follows:
225.7503 Contract clauses.
Unless the entire acquisition is exempt from the Balance of
Payments Program--
(a) Use the basic or an alternate of the clause at 252.225-7044,
Balance of Payments Program--Construction Material, in solicitations
and contracts for construction to be performed outside the United
States, including acquisitions of commercial items or components, with
an estimated value greater than the simplified acquisition threshold
but less than $7,864,000.
(1) Use the basic clause unless the acquisition is in support of
operations in Afghanistan.
(2) Use the alternate I clause if the acquisition is in support of
operations in Afghanistan.
(b) Use the basic or an alternate of the clause at 252.225-7045,
Balance of Payments Program--Construction Material Under Trade
Agreements, in solicitations and contracts for construction to be
performed outside the United States with an estimated value of
$7,864,000 or more, including acquisitions of commercial items or
components.
(1) Use the basic clause in solicitations and contracts with an
estimated value of $10,335,931 or more, unless the acquisition is in
support of operations in Afghanistan.
(2) Use the alternate I clause in solicitations and contracts with
an estimated value of $7,864,000 or more, but less than $10,335,931
unless the acquisition is in support of operations in Afghanistan.
(3) Use the alternate II clause in solicitations and contracts with
an estimated value of $10,335,931 or more and is in support of
operations in Afghanistan.
(4) Use the alternate III clause in solicitations and contracts
with an estimated value of $7,864,000 or more, but less than
$10,335,931, and is in support of operations in Afghanistan.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
5. Amend section 252.225-7000 by--
0
a. Revising the introductory text, provision title, and date, and
paragraph (a);
0
b. In paragraph (c)(1), removing ``Buy American and Balance of Payments
Program'' and adding ``Buy American and Balance of Payments Program--
Basic'' in its place; and
0
c. Revising Alternate I.
The revisions read as follows:
252.225-7000 Buy American--Balance of Payments Program Certificate.
As prescribed in 225.1101(1), use one of the following provisions:
Basic. As prescribed in 225.1101(1)(i), use the following
provision:
Buy American--Balance of Payments Program Certificate--Basic (Nov 2014)
(a) Definitions. Commercially available off-the-shelf (COTS)
item, component, domestic end product, foreign end product,
qualifying country, qualifying country end product, South Caucasus/
Central and South Asian (SC/CASA) state, South Caucasus/Central and
South Asian (SC/CASA) state end product, and United States, as used
in this provision, have the meanings given in the Buy American and
Balance of Payments Program--Basic clause of this solicitation.
* * * * *
Alternate I. As prescribed in 225.1101(1)(ii), use the following
provision, which adds South Caucasus/Central and South Asian (SC/CASA)
state and South Caucasus/Central and South Asian (SC/CASA) state end
product in paragraph (a), and replaces ``qualifying country end
products'' in paragraphs (b)(2) and (c)(2) with ``qualifying country
end products or SC/CASA state end products'':
[[Page 65819]]
Buy American--Balance of Payments Program Certificate--Alternate I (Nov
2014)
(a) Definitions. Commercially available off-the-shelf (COTS)
item, component, domestic end product, foreign end product,
qualifying country, qualifying country end product, South Caucasus/
Central and South Asian (SC/CASA) state, South Caucasus/Central and
South Asian (SC/CASA) state end product, and United States, as used
in this provision, have the meanings given in the Buy American and
Balance of Payments Program--Alternate I clause of this
solicitation.
(b) Evaluation. The Government--
(1) Will evaluate offers in accordance with the policies and
procedures of part 225 of the Defense Federal Acquisition Regulation
Supplement; and
(2) Will evaluate offers of qualifying country end products or
SC/CASA state end products without regard to the restrictions of the
Buy American statute or the Balance of Payments Program.
(c) Certifications and identification of country of origin.
(1) For all line items subject to the Buy American and Balance
of Payments Program--Alternate I clause of this solicitation, the
offeror certifies that--
(i) Each end product, except those listed in paragraphs (c)(2)
or (3) of this provision, is a domestic end product; and
(ii) For end products other than COTS items, components of
unknown origin are considered to have been mined, produced, or
manufactured outside the United States or a qualifying country.
(2) The offeror certifies that the following end products are
qualifying country end products or SC/CASA state end products:
Line Item Number
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Country of Origin
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(3) The following end products are other foreign end products,
including end products manufactured in the United States that do not
qualify as domestic end products, i.e., an end product that is not a
COTS item and does not meet the component test in paragraph (ii) of
the definition of domestic end product:
Line Item Number
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Country of Origin (If known)
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(End of provision)
0
6. Amend section 252.225-7001 by--
0
a. Revising the introductory text, clause title, and date; and
0
b. Revising Alternate I.
252.225-7001 Buy American and Balance of Payments Program.
As prescribed in 225.1101(2)(i), use one of the following clauses:
Basic. As prescribed in 225.1101(2)(ii), use the following clause:
Buy American and Balance of Payments Program--Basic (Nov 2014)
* * * * *
Alternate I. As prescribed in 225.1101(2)(iii), use the following
clause, which adds South Caucasus/Central and South Asian (SC/CASA)
state and South Caucasus/Central and South Asian (SC/CASA) state end
product to paragraph (a), and uses different paragraphs (b) and (c)
than the basic clause:
Buy American and Balance of Payments Program--Alternate I (Nov 2014)
(a) Definitions. As used in this clause--
Commercially available off-the-shelf (COTS) item--
(i) Means any item of supply (including construction material)
that is--
(A) A commercial item (as defined in paragraph (1) of the
definition of ``commercial item'' in section 2.101 of the Federal
Acquisition Regulation);
(B) Sold in substantial quantities in the commercial
marketplace; and
(C) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(ii) Does not include bulk cargo, as defined in 46 U.S.C.
40102(4), such as agricultural products and petroleum products.
Component means an article, material, or supply incorporated
directly into an end product.
Domestic end product means--
(i) An unmanufactured end product that has been mined or
produced in the United States; or
(ii) An end product manufactured in the United States if--
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 50 percent of the cost of all its components. The
cost of components includes transportation costs to the place of
incorporation into the end product and U.S. duty (whether or not a
duty-free entry certificate is issued). Scrap generated, collected,
and prepared for processing in the United States is considered
domestic. A component is considered to have been mined, produced, or
manufactured in the United States (regardless of its source in fact)
if the end product in which it is incorporated is manufactured in
the United States and the component is of a class or kind for which
the Government has determined that--
(1) Sufficient and reasonably available commercial quantities of
a satisfactory quality are not mined, produced, or manufactured in
the United States; or
(2) It is inconsistent with the public interest to apply the
restrictions of the Buy American statute; or
(B) The end product is a COTS item.
End product means those articles, materials, and supplies to be
acquired under this contract for public use.
Foreign end product means an end product other than a domestic
end product.
Qualifying country means a country with a reciprocal defense
procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove
barriers to purchases of supplies produced in the other country or
services performed by sources of the other country, and the
memorandum or agreement complies, where applicable, with the
requirements of section 36 of the Arms Export Control Act (22 U.S.C.
2776) and with 10 U.S.C. 2457. Accordingly, the following are
qualifying countries:
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Finland
France
Germany
Greece
Israel
Italy
Luxembourg
Netherlands
Norway
Poland
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland.
Qualifying country component means a component mined, produced,
or manufactured in a qualifying country.
Qualifying country end product means--
(i) An unmanufactured end product mined or produced in a
qualifying country; or
(ii) An end product manufactured in a qualifying country if--
(A) The cost of the following types of components exceeds 50
percent of the cost of all its components:
(1) Components mined, produced, or manufactured in a qualifying
country.
(2) Components mined, produced, or manufactured in the United
States.
(3) Components of foreign origin of a class or kind for which
the Government has determined that sufficient and reasonably
available commercial quantities of a satisfactory quality are not
mined, produced, or manufactured in the United States; or
(B) The end product is a COTS item.
South Caucasus/Central and South Asian (SC/CASA) state means
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan,
Tajikistan, Turkmenistan, or Uzbekistan.
South Caucasus/Central and South Asian (SC/CASA) state end
product means an article that--
(i) Is wholly the growth, product, or manufacture of an SC/CASA
state; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in an SC/CASA state into a new and different article of
commerce with a name, character, or use distinct from that of the
article or articles from which it was transformed. The
[[Page 65820]]
term refers to a product offered for purchase under a supply
contract, but for purposes of calculating the value of the end
product includes services (except transportation services)
incidental to its supply, provided that the value of those
incidental services does not exceed the value of the product itself.
United States means the 50 States, the District of Columbia, and
outlying areas.
(b) This clause implements the Balance of Payments Program.
Unless otherwise specified, this clause applies to all line items in
the contract.
(c) The Contractor shall deliver only domestic end products
unless, in its offer, it specified delivery of other end products in
the Buy American Balance of Payments Program Certificate provision
of the solicitation. If the Contractor certified in its offer that
it will deliver a qualifying country end product or an SC/CASA state
end product, the Contractor shall deliver a qualifying country end
product, an SC/CASA state end product, or, at the Contractor's
option, a domestic end product.
(d) The contract price does not include duty for end products or
components for which the Contractor will claim duty-free entry.
(End of clause)
* * * * *
0
7. Amend section 252.225-7013 by--
0
a. Removing the clause date ``(OCT 2013)'' and adding ``(NOV 2014)'' in
its place; and
0
b. In paragraph (a), revising the definition for ``Eligible product''.
The revision reads as follows:
252.225-7013 Duty-free entry.
* * * * *
(a) * * *
Eligible product means--
(i) Designated country end product, as defined in the Trade
Agreements (either basic or alternate) clause of this contract;
(ii) Free Trade Agreement country end product, other than a
Bahrainian end product, a Moroccan end product, a Panamanian end
product, or a Peruvian end product, as defined in the Buy American--
Free Trade Agreements--Balance of Payments Program (either basic or
alternate II) clause of this contract;
(iii) Canadian end product, as defined in the Buy American--Free
Trade Agreements--Balance of Payments Program (either alternate I or
alternate III) clause of this contract; or
(iv) Free Trade Agreement country end product other than a
Bahrainian end product, Korean end product, Moroccan end product,
Panamanian end product, or Peruvian end product, as defined in the Buy
American--Free Trade Agreements--Balance of Payments Program (either
alternate IV or alternate V) clause of this contract.
* * * * *
0
8. Amend section 252.225-7020 by--
0
a. Revising the introductory text, provision title, and date;
0
b. Revising paragraph (a);
0
c. In paragraph (c)(1), removing ``Trade Agreements clause'' and adding
``Trade Agreements--Basic'' in its place; and
0
d. Revising Alternate I.
The revisions read as follows:
252.225-7020 Trade Agreements Certificate.
As prescribed in 225.1101(5), use one of the following provisions:
Basic. As prescribed in 225.1101(5)(i), use the following
provision:
Trade Agreements Certificate--Basic (Nov 2014)
(a) Definitions. Designated country end product, nondesignated
country end product, qualifying country end product, and U.S.-made
end product, as used in this provision have the meanings given in
the Trade Agreements--Basic clause of this solicitation.
* * * * *
Alternate I. As prescribed in 225.1101(5)(ii), use the following
provision, which uses different paragraphs (a), (b)(2), and (c) than
the basic clause:
Trade Agreements Certificate--Alternate I (Nov 2014)
(a) Definitions. Designated country end product, nondesignated
country end product, qualifying country end product, South Caucasus/
Central and South Asian (SC/CASA) state, South Caucasus/Central and
South Asian (SC/CASA) state end product, and U.S.-made end product,
as used in this provision, have the meanings given in the Trade
Agreements--Alternate I clause of this solicitation.
(b) Evaluation. The Government--
(1) Will evaluate offers in accordance with the policies and
procedures of part 225 of the Defense Federal Acquisition Regulation
Supplement; and
(2) Will consider only offers of end products that are U.S.-
made, qualifying country, SC/CASA state, or designated country end
products unless--
(i) There are no offers of such end products;
(ii) The offers of such end products are insufficient to fulfill
the Government's requirements; or
(iii) A national interest waiver has been granted.
(c) Certification and identification of country of origin.
(1) For all line items subject to the Trade Agreement--Alternate
I clause of this solicitation, the offeror certifies that each end
product to be delivered under this contract, except those listed in
paragraph (c)(2)(ii) of this provision, is a U.S.-made, qualifying
country, SC/CASA state, or designated country end product.
(2)(i) The following supplies are SC/CASA state end products:
(Line Item Number) (Country of Origin)
(ii) The following are other nondesignated country end products:
(Line Item Number) (Country of Origin)
(End of provision)
0
9. Amend section 252.225-7021 by--
0
a. Revising the introductory text, clause title, and date; and
0
b. Revising Alternate II.
The revisions read as follows:
252.225-7021 Trade agreements.
As prescribed in 225.1101(6), use one of the following clauses:
Basic. As prescribed in 225.1101(6)(i), use the following clause:
Trade Agreements--Basic (Nov 2014)
* * * * *
Alternate II. As prescribed in 225.1101(6)(ii), use the following
clause, which (i) adds South Caucasus/Central and South Asian (SC/CASA)
state and South Caucasus/Central and South Asian (SC/CASA) state end
product to paragraph (a); (ii) uses a different paragraph (c) than the
basic clause; (iii) adds a new paragraph (d); and (iv) includes
paragraphs (e) and (f) which are the same paragraphs (d) and (e) of the
basic clause:
Trade Agreements--Alternate II (Nov 2014)
(a) Definitions. As used in this clause--Caribbean Basin country
end product--
(i) Means an article that--
(A) Is wholly the growth, product, or manufacture of a Caribbean
Basin country; or
(B) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in a Caribbean Basin country into a new and different
article of commerce with a name, character, or use distinct from
that of the article or articles from which it was transformed. The
term refers to a product offered for purchase under a supply
contract, but for purposes of calculating the value of the end
product includes services (except transportation services)
incidental to its supply, provided that the value of those
incidental services does not exceed the value of the product itself;
and
(ii) Excludes products, other than petroleum and any product
derived from petroleum, that are not granted duty-free treatment
under the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(b)).
These exclusions presently consist of--
(A) Textiles, apparel articles, footwear, handbags, luggage,
flat goods, work gloves, leather wearing apparel, and handloomed,
handmade, or folklore articles that are not granted duty-free status
in the Harmonized
[[Page 65821]]
Tariff Schedule of the United States (HTSUS);
(B) Tuna, prepared or preserved in any manner in airtight
containers; and
(C) Watches and watch parts (including cases, bracelets, and
straps) of whatever type, including, but not limited to, mechanical,
quartz digital, or quartz analog, if such watches or watch parts
contain any material that is the product of any country to which the
HTSUS column 2 rates of duty (HTSUS General Note 3(b)) apply.
Commercially available off-the-shelf (COTS) item--
(i) Means any item of supply (including construction material)
that is--
(A) A commercial item (as defined in paragraph (1) of the
definition of commercial item in section 2.101 of the Federal
Acquisition Regulation);
(B) Sold in substantial quantities in the commercial
marketplace; and
(C) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(ii) Does not include bulk cargo, as defined in 46 U.S.C.
40102(4), such as agricultural products and petroleum products.
Component means an article, material, or supply incorporated
directly into an end product.
Designated country means--
(i) A World Trade Organization Government Procurement Agreement
(WTO GPA) country (Armenia, Aruba, Austria, Belgium, Bulgaria,
Canada, Cyprus, Czech Republic, Denmark, Estonia, Finland, France,
Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel,
Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania,
Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania,
Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland,
Taiwan (known in the World Trade Organization as ``the Separate
Customs Territory of Taiwan, Penghu, Kinmen, and Matsu'' (Chinese
Taipei)), or the United Kingdom);
(ii) A Free Trade Agreement country (Australia, Bahrain, Canada,
Chile, Colombia, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Honduras, Korea (Republic of), Mexico, Morocco,
Nicaragua, Peru, or Singapore);
(iii) A least developed country (Afghanistan, Angola,
Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central
African Republic, Chad, Comoros, Democratic Republic of Congo,
Djibouti, East Timor, Equatorial Guinea, Eritrea, Ethiopia, Gambia,
Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia,
Madagascar, Malawi, Maldives, Mali, Mauritania, Mozambique, Nepal,
Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone,
Solomon Islands, Somalia, Tanzania, Togo, Tuvalu, Uganda, Vanuatu,
Yemen, or Zambia); or
(iv) A Caribbean Basin country (Antigua and Barbuda, Aruba,
Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao,
Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St.
Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint
Eustatius, Sint Maarten, or Trinidad and Tobago).
Designated country end product means a WTO GPA country end
product, a Free Trade Agreement country end product, a least
developed country end product, or a Caribbean Basin country end
product.
End product means those articles, materials, and supplies to be
acquired under this contract for public use.
Free Trade Agreement country end product means an article that--
(i) Is wholly the growth, product, or manufacture of a Free
Trade Agreement country; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in a Free Trade Agreement country into a new and
different article of commerce with a name, character, or use
distinct from that of the article or articles from which it was
transformed. The term refers to a product offered for purchase under
a supply contract, but for purposes of calculating the value of the
end product includes services (except transportation services)
incidental to its supply, provided that the value of those
incidental services does not exceed the value of the product itself.
Least developed country end product means an article that--
(i) Is wholly the growth, product, or manufacture of a least
developed country; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in a least developed country into a new and different
article of commerce with a name, character, or use distinct from
that of the article or articles from which it was transformed. The
term refers to a product offered for purchase under a supply
contract, but for purposes of calculating the value of the end
product includes services (except transportation services)
incidental to its supply, provided that the value of those
incidental services does not exceed the value of the product itself.
Nondesignated country end product means any end product that is
not a U.S.-made end product or a designated country end product.
Qualifying country means a country with a reciprocal defense
procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove
barriers to purchases of supplies produced in the other country or
services performed by sources of the other country, and the
memorandum or agreement complies, where applicable, with the
requirements of section 36 of the Arms Export Control Act (22 U.S.C.
2776) and with 10 U.S.C. 2457. Accordingly, the following are
qualifying countries:
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Finland
France
Germany
Greece
Israel
Italy
Luxembourg
Netherlands
Norway
Poland
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland.
Qualifying country end product means--
(i) An unmanufactured end product mined or produced in a
qualifying country; or
(ii) An end product manufactured in a qualifying country if--
(A) The cost of the following types of components exceeds 50
percent of the cost of all its components:
(1) Components mined, produced, or manufactured in a qualifying
country.
(2) Components mined, produced, or manufactured in the United
States.
(3) Components of foreign origin of a class or kind for which
the Government has determined that sufficient and reasonably
available commercial quantities of a satisfactory quality are not
mined, produced, or manufactured in the United States; or
(B) The end product is a COTS item.
South Caucasus/Central and South Asian (SC/CASA) state means
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan,
Tajikistan, Turkmenistan, or Uzbekistan.
South Caucasus/Central and South Asian (SC/CASA) state end
product means an article that--
(i) Is wholly the growth, product, or manufacture of an SC/CASA
state; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in an SC/CASA state into a new and different article of
commerce with a name, character, or use distinct from that of the
article or articles from which it was transformed. The term refers
to a product offered for purchase under a supply contract, but for
purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.
United States means the 50 States, the District of Columbia, and
outlying areas.
U.S.-made end product means an article that--
(i) Is mined, produced, or manufactured in the United States; or
(ii) Is substantially transformed in the United States into a
new and different article of commerce with a name, character, or use
distinct from that of the article or articles from which it was
transformed.
WTO GPA country end product means an article that--
(i) Is wholly the growth, product, or manufacture of a WTO GPA
country; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in a WTO GPA country into a new and different article of
commerce with a name, character, or use distinct from that of the
[[Page 65822]]
article or articles from which it was transformed. The term refers
to a product offered for purchase under a supply contract, but for
purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.
(b) Unless otherwise specified, this clause applies to all items
in the Schedule.
(c) The Contractor shall deliver under this contract only U.S.-
made, qualifying country, SC/CASA state, or designated country end
products unless--
(1) In its offer, the Contractor specified delivery of other
nondesignated country end products in the Trade Agreements
Certificate provision of the solicitation; and
(2)(i) Offers of U.S.-made, qualifying country, SC/CASA state,
or designated country end products from responsive, responsible
offerors are either not received or are insufficient to fill the
Government's requirements; or
(ii) A national interest waiver has been granted.
(d) If the Contractor is from an SC/CASA state, the Contractor
shall inform its government of its participation in this acquisition
and that it generally will not have such opportunity in the future
unless its government provides reciprocal procurement opportunities
to U.S. products and services and suppliers of such products and
services.
(e) The contract price does not include duty for end products or
components for which the Contractor will claim duty-free entry.
(f) The HTSUS is available on the Internet at http://www.usitc.gov/tata/hts/bychapter/index.htm. The following sections
of the HTSUS provide information regarding duty-free status of
articles specified in paragraph (a)(2)(ii)(A) of this clause:
(1) General Note 3(c), Products Eligible for Special Tariff
Treatment.
(2) General Note 17, Products of Countries Designated as
Beneficiary Countries Under the United States--Caribbean Basin Trade
Partnership Act of 2000.
(3) Section XXII, Chapter 98, Subchapter II, Articles Exported
and Returned, Advanced or Improved Abroad, U.S. Note 7(b).
(4) Section XXII, Chapter 98, Subchapter XX, Goods Eligible for
Special Tariff Benefits Under the United States--Caribbean Basin
Trade Partnership Act.
(End of clause)
0
10. Amend section 252.225-7035 by--
0
a. Revising the introductory text, provision title, and date;
0
b. In paragraph (a), removing ``Buy American--Free Trade Agreements--
Balance of Payments Program'' and adding ``Buy American--Free Trade
Agreements--Balance of Payments Program--Basic'' in its place;
0
c. In paragraph (b)(2), removing ``Free Trade Agreements'' and adding
``Buy American--Free Trade Agreements--Balance of Payments Program--
Basic clause of this solicitation'' in its place;
0
d. In paragraph (c)(1) introductory text, removing ``Buy American--Free
Trade Agreements--Balance of Payments Program'' and adding ``Buy
American--Free Trade Agreements--Balance of Payments Program--Basic''
in its place; and
0
e. Revising Alternates I, II, III, IV, and V.
252.225-7035 Buy American--Free Trade Agreements--Balance of Payments
Program Certificate.
As prescribed in 225.1101(9), use one of the following provisions:
Basic. As prescribed in 225.1101(9)(i), use the following
provision:
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Basic (Nov 2014)
* * * * *
Alternate I. As prescribed in 225.1101(9)(ii), use the following
provision, which uses Canadian end product in paragraph (a), rather
than the phrases Bahrainian end product, Free Trade Agreement country,
Free Trade Agreement country end product, Moroccan end product,
Panamanian end product, and Peruvian end products in paragraph (a) of
the basic provision; uses ``Canadian end products'' in paragraphs
(b)(2) and (c)(2)(i), rather than ``Free Trade Agreement country end
products other than Bahrainian end products, Moroccan end products,
Panamanian end products, or Peruvian end products'' in paragraphs
(b)(2) and (c)(2)(ii) of the basic provision; and does not use
``Australian or'' in paragraph (c)(2)(i):
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate I (Nov 2014)
(a) Definitions. Canadian end product, commercially available
off-the-shelf (COTS) item, component, domestic end product, foreign
end product, qualifying country end product, and United States, as
used in this provision, have the meanings given in the Buy
American--Free Trade Agreements--Balance of Payments Program--
Alternate I clause of this solicitation.
(b) Evaluation. The Government--
(1) Will evaluate offers in accordance with the policies and
procedures of part 225 of the Defense Federal Acquisition Regulation
Supplement; and
(2) For line items subject to the Buy American--Free Trade
Agreements--Balance of Payments Program--Alternate I clause of this
solicitation, will evaluate offers of qualifying country end
products or Canadian end products without regard to the restrictions
of the Buy American or the Balance of Payments Program.
(c) Certifications and identification of country of origin.
(1) For all line items subject to the Buy American--Free Trade
Agreements--Balance of Payments Program--Alternate I clause of this
solicitation, the offeror certifies that--
(i) Each end product, except the end products listed in
paragraph (c)(2) of this provision, is a domestic end product; and
(ii) Components of unknown origin are considered to have been
mined, produced, or manufactured outside the United States or a
qualifying country.
(2) The offeror shall identify all end products that are not
domestic end products.
(i) The offeror certifies that the following supplies are
qualifying country (except Canadian) end products:
(Line Item Number) (Country of Origin)
(ii) The offeror certifies that the following supplies are
Canadian end products:
(Line Item Number) (Country of Origin)
(iii) The following supplies are other foreign end products,
including end products manufactured in the United States that do not
qualify as domestic end products, i.e., an end product that is not a
COTS item and does not meet the component test in paragraph (ii) of
the definition of domestic end product:
(Line Item Number) (Country of Origin
(If known))
(End of provision)
Alternate II. As prescribed in 225.1101(9)(iii), use the following
provision, which adds South Caucasus/Central and South Asian (SC/CASA)
state and South Caucasus/Central and South Asian (SC/CASA) state end
product to paragraph (a), and uses different paragraphs (b)(2) and
(c)(2)(i) than the basic provision:
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate II (Nov 2014)
(a) Definitions. Bahrainian end product, commercially available
off-the-shelf (COTS) item, component, domestic end product, Free
Trade Agreement country, Free Trade Agreement country end product,
foreign end product, Moroccan end product, Panamanian end product,
Peruvian end product, qualifying country end product, South
Caucasus/Central and South Asian (SC/CASA) state, South Caucasus/
Central and South Asian (SC/CASA) state end product, and United
States, as used in this provision, have the meanings given in the
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate II clause of this solicitation.
(b) Evaluation. The Government--
(1) Will evaluate offers in accordance with the policies and
procedures of part 225 of the Defense Federal Acquisition Regulation
Supplement; and
(2) For line items subject to the Buy American--Free Trade
Agreements--Balance of Payments Program--Alternate II clause of this
solicitation, will evaluate offers of qualifying country end
products, SC/CASA state end products, or Free Trade Agreement
[[Page 65823]]
country end products other than Bahrainian end products, Moroccan
end products, Panamanian end products, or Peruvian end products
without regard to the restrictions of the Buy American or the
Balance of Payments Program.
(c) Certifications and identification of country of origin.
(1) For all line items subject to the Buy American--Free Trade
Agreements--Balance of Payments Program--Alternate II clause of this
solicitation, the offeror certifies that--
(i) Each end product, except the end products listed in
paragraph (c)(2) of this provision, is a domestic end product; and
(ii) Components of unknown origin are considered to have been
mined, produced, or manufactured outside the United States or a
qualifying country.
(2) The offeror shall identify all end products that are not
domestic end products.
(i) The offeror certifies that the following supplies are
qualifying country (except Australian or Canadian) or SC/CASA state
end products:
(Line Item Number) (Country of Origin)
(ii) The offeror certifies that the following supplies are Free
Trade Agreement country end products other than Bahrainian end
products, Moroccan end products, Panamanian end products, or
Peruvian end products:
(Line Item Number) (Country of Origin)
(iii) The following supplies are other foreign end products,
including end products manufactured in the United States that do not
qualify as domestic end products, i.e., an end product that is not a
COTS item and does not meet the component test in paragraph (ii) of
the definition of domestic end product:
(Line Item Number) (Country of Origin (If
known))
(End of provision)
Alternate III. As prescribed in 225.1101(9)(iv), use the following
provision, which uses different paragraphs (a), (b)(2), (c)(2)(i), and
(c)(2)(ii) than the basic provision:
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate III (Nov 2014)
(a) Definitions. Canadian end product, commercially available
off-the-shelf (COTS) item, domestic end product, foreign end
product, qualifying country end product, South Caucasus/Central and
South Asian (SC/CASA) state end product, and United States, as used
in this provision have the meanings given in the Buy American--Free
Trade Agreements--Balance of Payments Program--Alternate III clause
of this solicitation.
(b) Evaluation. The Government--
(1) Will evaluate offers in accordance with the policies and
procedures of part 225 of the Defense Federal Acquisition Regulation
Supplement; and
(2) For line items subject to the Buy American--Free Trade
Agreements--Balance of Payments Program--Alternate III clause of
this solicitation, will evaluate offers of qualifying country end
products, SC/CASA state end products, or Canadian end products
without regard to the restrictions of the Buy American or the
Balance of Payments Program.
(c) Certifications and identification of country of origin.
(1) For all line items subject to the Buy American--Free Trade
Agreements--Balance of Payments Program--Alternate III clause of
this solicitation, the offeror certifies that--
(i) Each end product, except the end products listed in
paragraph (c)(2) of this provision, is a domestic end product; and
(ii) Components of unknown origin are considered to have been
mined, produced, or manufactured outside the United States or a
qualifying country.
(2) The offeror shall identify all end products that are not
domestic end products.
(i) The offeror certifies that the following supplies are
qualifying country (except Canadian) or SC/CASA state end products:
(Line Item Number) (Country of Origin)
(ii) The offeror certifies that the following supplies are Free
Trade Agreement country end products other than Bahrainian end
products, Moroccan end products, Panamanian end products, or
Peruvian end products:
(Line Item Number) (Country of Origin)
(iii) The following supplies are other foreign end products,
including end products manufactured in the United States that do not
qualify as domestic end products, i.e., an end product that is not a
COTS item and does not meet the component test in paragraph (ii) of
the definition of domestic end product:
(Line Item Number) (Country of Origin (If
known))
(End of provision)
Alternate IV. As prescribed in 225.1101(9)(v), use the following
provision, which adds Korean end product to paragraph (a); and uses
``Free Trade Agreement country end products other than Bahrainian end
products, Korean end products, Moroccan end products, Panamanian end
products, or Peruvian end products'' in paragraphs (b)(2) and
(c)(2)(ii), rather than ``Free Trade Agreement country end products
other than Bahrainian end products, Moroccan end products, Panamanian
end products, or Peruvian end products'' in paragraphs (b)(2) and
(c)(2)(ii) of the basic provision:
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate IV (Nov 2014)
(a) Definitions. Bahrainian end product, commercially available
off-the-shelf (COTS) item, component, domestic end product, Free
Trade Agreement country, Free Trade Agreement country end product,
foreign end product, Korean end product, Moroccan end product,
Panamanian end product, Peruvian end product, qualifying country end
product, and United States, as used in this provision, have the
meanings given in the Buy American--Free Trade Agreements--Balance
of Payments Program--Alternate IV clause of this solicitation.
(b) Evaluation. The Government--
(1) Will evaluate offers in accordance with the policies and
procedures of part 225 of the Defense Federal Acquisition Regulation
Supplement; and
(2) For line items subject to the Buy American--Free Trade
Agreements--Balance of Payments Program--Alternate IV clause of this
solicitation, will evaluate offers of qualifying country end
products or Free Trade Agreement country end products other than
Bahrainian end products, Korean end products, Moroccan end products,
Panamanian end products, or Peruvian end products without regard to
the restrictions of the Buy American or the Balance of Payments
Program.
(c) Certifications and identification of country of origin.
(1) For all line items subject to the Buy American--Free Trade
Agreements--Balance of Payments Program--Alternate IV clause of this
solicitation, the offeror certifies that--
(i) Each end product, except the end products listed in
paragraph (c)(2) of this provision, is a domestic end product; and
(ii) Components of unknown origin are considered to have been
mined, produced, or manufactured outside the United States or a
qualifying country.
(2) The offeror shall identify all end products that are not
domestic end products.
(i) The offeror certifies that the following supplies are
qualifying country (except Australian or Canadian) end products:
(Line Item Number) (Country of Origin)
(ii) The offeror certifies that the following supplies are Free
Trade Agreement country end products other than Bahrainian end
products, Korean end products, Moroccan end products, Panamanian end
products, or Peruvian end products:
(Line Item Number) (Country of Origin)
(iii) The following supplies are other foreign end products,
including end products manufactured in the United States that do not
qualify as domestic end products, i.e., an end product that is not a
COTS item and does not meet the component test in paragraph (ii) of
the definition of domestic end product:
(Line Item Number) (Country of Origin (If
known))
(End of provision)
Alternate V. As prescribed in 225.1101(9)(vi), use the following
provision, which uses different paragraphs (a), (b)(2), (c)(2)(i), and
(c)(2)(ii) than the basic provision:
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate V (Nov 2014)
(a) Definitions. Bahrainian end product, commercially available
off-the-shelf (COTS)
[[Page 65824]]
item, component, domestic end product, ``Free Trade Agreement
country, Free Trade Agreement country end product, foreign end
product, Korean end product, Moroccan end product, Panamanian end
product, Peruvian end product, qualifying country end product, South
Caucasus/Central and South Asian (SC/CASA) state end product, and
United States, as used in this provision, have the meanings given in
the Buy American Act--Free Trade Agreements--Balance of Payments
Program--Alternate V clause of this solicitation.
(b) Evaluation. The Government--
(1) Will evaluate offers in accordance with the policies and
procedures of part 225 of the Defense Federal Acquisition Regulation
Supplement; and
(2) For line items subject to the Buy American--Free Trade
Agreements--Balance of Payments Program--Alternate V clause of this
solicitation, will evaluate offers of qualifying country end
products, SC/CASA state end products, or Free Trade Agreement end
products other than Bahrainian end products, Korean end products,
Moroccan end products, Panamanian end products, or Peruvian end
products without regard to the restrictions of the Buy American
statute or the Balance of Payments Program.
(c) Certifications and identification of country of origin.
(1) For all line items subject to the Buy American--Free Trade
Agreements--Balance of Payments Program--Alternate V clause of this
solicitation, the offeror certifies that--
(i) Each end product, except the end products listed in
paragraph (c)(2) of this provision, is a domestic end product; and
(ii) Components of unknown origin are considered to have been
mined, produced, or manufactured outside the United States or a
qualifying country.
(2) The offeror shall identify all end products that are not
domestic end products.
(i) The offeror certifies that the following supplies are
qualifying country (except Australian or Canadian) or SC/CASA state
end products:
(Line Item Number) (Country of Origin)
(ii) The offeror certifies that the following supplies are Free
Trade Agreement country end products other than Bahrainian end
products, Korean end products, Moroccan end products, Panamanian end
products, or Peruvian end products:
(Line Item Number) (Country of Origin)
(iii) The following supplies are other foreign end products,
including end products manufactured in the United States that do not
qualify as domestic end products, i.e., an end product that is not a
COTS item and does not meet the component test in paragraph (ii) of
the definition of domestic end product:
(Line Item Number) (Country of Origin
(If known))
(End of provision)
0
11. Amend section 252.225-7036 by--
0
a. Revising the introductory text, clause title, and date;
0
b. In paragraph (c), removing ``Buy American--Free Trade Agreements--
Balance of Payments Program Certificate'' and adding ``Buy American--
Free Trade Agreements--Balance of Payments Program Certificate--Basic''
in its place; and
0
c. Revising Alternates I, II, III, IV, and V.
252.225-7036 Buy American--Free Trade Agreements--Balance of Payments
Program.
As prescribed in 225.1101(10)(i), use one of the following clauses:
Basic. As prescribed in 225.1101(10)(i)(A), use the following
clause:
Buy American--Free Trade Agreements--Balance of Payments Program--Basic
(Nov 2014)
* * * * *
Alternate I. As prescribed in 225.1101(10)(i)(B), use the following
clause, which adds Canadian end product to paragraph (a), and uses a
different paragraph (c) than the basic clause:
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate I (Nov 2014)
(a) Definitions. As used in this clause--
Bahrainian end product means an article that--
(i) Is wholly the growth, product, or manufacture of Bahrain; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Bahrain into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Canadian end product means an article that--
(i) Is wholly the growth, product, or manufacture of Canada; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Canada into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Commercially available off-the-shelf (COTS) item--
(i) Means any item of supply (including construction material)
that is--
(A) A commercial item (as defined in paragraph (1) of the
definition of commercial item in section 2.101 of the Federal
Acquisition Regulation);
(B) Sold in substantial quantities in the commercial
marketplace; and
(C) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(ii) Does not include bulk cargo, as defined in 46 U.S.C.
40102(4), such as agricultural products and petroleum products.
Component means an article, material, or supply incorporated
directly into an end product.
Domestic end product means--
(i) An unmanufactured end product that has been mined or
produced in the United States; or
(ii) An end product manufactured in the United States if--
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 50 percent of the cost of all its components. The
cost of components includes transportation costs to the place of
incorporation into the end product and U.S. duty (whether or not a
duty-free entry certificate is issued). Scrap generated, collected,
and prepared for processing in the United States is considered
domestic. A component is considered to have been mined, produced, or
manufactured in the United States (regardless of its source in fact)
if the end product in which it is incorporated is manufactured in
the United States and the component is of a class or kind for which
the Government has determined that--
(1) Sufficient and reasonably available commercial quantities of
a satisfactory quality are not mined, produced, or manufactured in
the United States; or
(2) It is inconsistent with the public interest to apply the
restrictions of the Buy American statute; or
(B) The end product is a COTS item.
End product means those articles, materials, and supplies to be
acquired under this contract for public use.
Foreign end product means an end product other than a domestic
end product.
Free Trade Agreement country means Australia, Bahrain, Canada,
Chile, Colombia, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Honduras, Korea (Republic of), Mexico, Morocco,
Nicaragua, Panama, Peru, or Singapore;
Free Trade Agreement country end product means an article that--
(i) Is wholly the growth, product, or manufacture of a Free
Trade Agreement country; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in a Free Trade Agreement country into a new and
different article of commerce with a name, character, or use
distinct from that of the article or articles from which it was
transformed. The term refers to a product offered for purchase under
a supply contract,
[[Page 65825]]
but for purposes of calculating the value of the end product
includes services (except transportation services) incidental to its
supply, provided that the value of those incidental services does
not exceed the value of the product itself.
Moroccan end product means an article that--
(i) Is wholly the growth, product, or manufacture of Morocco; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Morocco into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Panamanian end product means an article that--
(i) Is wholly the growth, product, or manufacture of Panama; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Panama into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Peruvian end product means an article that--
(i) Is wholly the growth, product, or manufacture of Peru; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Peru into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Qualifying country means a country with a reciprocal defense
procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove
barriers to purchases of supplies produced in the other country or
services performed by sources of the other country, and the
memorandum or agreement complies, where applicable, with the
requirements of section 36 of the Arms Export Control Act (22 U.S.C.
2776) and with 10 U.S.C. 2457. Accordingly, the following are
qualifying countries:
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Finland
France
Germany
Greece
Israel
Italy
Luxembourg
Netherlands
Norway
Poland
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland.
Qualifying country component means a component mined, produced,
or manufactured in a qualifying country.
Qualifying country end product means--
(i) An unmanufactured end product mined or produced in a
qualifying country; or
(ii) An end product manufactured in a qualifying country if--
(A) The cost of the following types of components exceeds 50
percent of the cost of all its components:
(1) Components mined, produced, or manufactured in a qualifying
country.
(2) Components mined, produced, or manufactured in the United
States.
(3) Components of foreign origin of a class or kind for which
the Government has determined that sufficient and reasonably
available commercial quantities of a satisfactory quality are not
mined, produced, or manufactured in the United States; or
(B) The end product is a COTS item.
United States means the 50 States, the District of Columbia, and
outlying areas.
(b) Unless otherwise specified, this clause applies to all items
in the Schedule.
(c) The Contractor shall deliver under this contract only
domestic end products unless, in its offer, it specified delivery of
qualifying country, Canadian, or other foreign end products in the
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate I provision of the solicitation. If the
Contractor certified in its offer that it will deliver a qualifying
country end product or a Canadian end product, the Contractor shall
deliver a qualifying country end product, a Canadian end product,
or, at the Contractor's option, a domestic end product.
(d) The contract price does not include duty for end products or
components for which the Contractor will claim duty-free entry.
(End of clause)
Alternate II. As prescribed in 225.1101(10)(i)(C), use the
following clause, which adds South Caucasus/Central and South Asian
(SC/CASA) state and South Caucasus/Central and South Asian (SC/CASA)
state end product to paragraph (a), and uses a different paragraph (c)
than the basic clause:
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate II (Nov 2014)
(a) Definitions. As used in this clause--
Bahrainian end product means an article that--
(i) Is wholly the growth, product, or manufacture of Bahrain; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Bahrain into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Commercially available off-the-shelf (COTS) item--
(i) Means any item of supply (including construction material)
that is--
(A) A commercial item (as defined in paragraph (1) of the
definition of commercial item in section 2.101 of the Federal
Acquisition Regulation);
(B) Sold in substantial quantities in the commercial
marketplace; and
(C) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(ii) Does not include bulk cargo, as defined in 46 U.S.C.
40102(4), such as agricultural products and petroleum products.
Component means an article, material, or supply incorporated
directly into an end product.
Domestic end product means--
(i) An unmanufactured end product that has been mined or
produced in the United States; or
(ii) An end product manufactured in the United States if--
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 50 percent of the cost of all its components. The
cost of components includes transportation costs to the place of
incorporation into the end product and U.S. duty (whether or not a
duty-free entry certificate is issued). Scrap generated, collected,
and prepared for processing in the United States is considered
domestic. A component is considered to have been mined, produced, or
manufactured in the United States (regardless of its source in fact)
if the end product in which it is incorporated is manufactured in
the United States and the component is of a class or kind for which
the Government has determined that--
(1) Sufficient and reasonably available commercial quantities of
a satisfactory quality are not mined, produced, or manufactured in
the United States; or
[[Page 65826]]
(2) It is inconsistent with the public interest to apply the
restrictions of the Buy American statute; or
(B) The end product is a COTS item.
End product means those articles, materials, and supplies to be
acquired under this contract for public use.
Foreign end product means an end product other than a domestic
end product.
Free Trade Agreement country means Australia, Bahrain, Canada,
Chile, Colombia, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Honduras, Korea (Republic of), Mexico, Morocco,
Nicaragua, Panama, Peru, or Singapore;
Free Trade Agreement country end product means an article that--
(i) Is wholly the growth, product, or manufacture of a Free
Trade Agreement country; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in a Free Trade Agreement country into a new and
different article of commerce with a name, character, or use
distinct from that of the article or articles from which it was
transformed. The term refers to a product offered for purchase under
a supply contract, but for purposes of calculating the value of the
end product includes services (except transportation services)
incidental to its supply, provided that the value of those
incidental services does not exceed the value of the product itself.
Moroccan end product means an article that--
(i) Is wholly the growth, product, or manufacture of Morocco; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Morocco into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Panamanian end product means an article that--
(i) Is wholly the growth, product, or manufacture of Panama; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Panama into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Peruvian end product means an article that--
(i) Is wholly the growth, product, or manufacture of Peru; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Peru into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Qualifying country means a country with a reciprocal defense
procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove
barriers to purchases of supplies produced in the other country or
services performed by sources of the other country, and the
memorandum or agreement complies, where applicable, with the
requirements of section 36 of the Arms Export Control Act (22 U.S.C.
2776) and with 10 U.S.C. 2457. Accordingly, the following are
qualifying countries:
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Finland
France
Germany
Greece
Israel
Italy
Luxembourg
Netherlands
Norway
Poland
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland.
Qualifying country component means a component mined, produced,
or manufactured in a qualifying country.
Qualifying country end product means--
(i) An unmanufactured end product mined or produced in a
qualifying country; or
(ii) An end product manufactured in a qualifying country if--
(A) The cost of the following types of components exceeds 50
percent of the cost of all its components:
(1) Components mined, produced, or manufactured in a qualifying
country.
(2) Components mined, produced, or manufactured in the United
States.
(3) Components of foreign origin of a class or kind for which
the Government has determined that sufficient and reasonably
available commercial quantities of a satisfactory quality are not
mined, produced, or manufactured in the United States; or
(B) The end product is a COTS item.
South Caucasus/Central and South Asian (SC/CASA) state means
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan,
Tajikistan, Turkmenistan, or Uzbekistan.
South Caucasus/Central and South Asian (SC/CASA) state end
product means an article that--
(i) Is wholly the growth, product, or manufacture of an SC/CASA
state; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in an SC/CASA state into a new and different article of
commerce with a name, character, or use distinct from that of the
article or articles from which it was transformed. The term refers
to a product offered for purchase under a supply contract, but for
purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.
United States means the 50 States, the District of Columbia, and
outlying areas.
(b) Unless otherwise specified, this clause applies to all items
in the Schedule.
(c) The Contractor shall deliver under this contract only
domestic end products unless, in its offer, it specified delivery of
qualifying country end products, SC/CASA state end products, Free
Trade Agreement country end products other than Bahrainian end
products, Moroccan end products, Panamanian end products, or
Peruvian end products, or other foreign end products in the Buy
American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate II provision of the solicitation. If the
Contractor certified in its offer that it will deliver a qualifying
country end product, SC/CASA state end products, or a Free Trade
Agreement country end product other than a Bahrainian end product, a
Moroccan end product, a Panamanian end product, or a Peruvian end
product, the Contractor shall deliver a qualifying country end
product, an SC/CASA state end product, a Free Trade Agreement
country end product other than a Bahrainian end product, a Moroccan
end product, a Panamanian end product, or a Peruvian end product or,
at the Contractor's option, a domestic end product.
(d) The contract price does not include duty for end products or
components for which the Contractor will claim duty-free entry.
(End of clause)
Alternate III. As prescribed in 225.1101(10)(i)(D), use the
following clause, which adds Canadian end product, South Caucasus/
Central and South Asian (SC/CASA) state, and South Caucasus/Central and
South Asian (SC/CASA) state end product to paragraph (a) and uses a
different paragraph (c) than the basic clause:
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate III (Nov 2014)
(a) Definitions. As used in this clause--
Bahrainian end product means an article that--
[[Page 65827]]
(i) Is wholly the growth, product, or manufacture of Bahrain; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Bahrain into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Canadian end product means an article that--
(i) Is wholly the growth, product, or manufacture of Canada; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Canada into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Commercially available off-the-shelf (COTS) item--
(i) Means any item of supply (including construction material)
that is--
(A) A commercial item (as defined in paragraph (1) of the
definition of commercial item in section 2.101 of the Federal
Acquisition Regulation);
(B) Sold in substantial quantities in the commercial
marketplace; and
(C) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(ii) Does not include bulk cargo, as defined in 46 U.S.C.
40102(4), such as agricultural products and petroleum products.
Component means an article, material, or supply incorporated
directly into an end product.
Domestic end product means--
(i) An unmanufactured end product that has been mined or
produced in the United States; or
(ii) An end product manufactured in the United States if--
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 50 percent of the cost of all its components. The
cost of components includes transportation costs to the place of
incorporation into the end product and U.S. duty (whether or not a
duty-free entry certificate is issued). Scrap generated, collected,
and prepared for processing in the United States is considered
domestic. A component is considered to have been mined, produced, or
manufactured in the United States (regardless of its source in fact)
if the end product in which it is incorporated is manufactured in
the United States and the component is of a class or kind for which
the Government has determined that--
(1) Sufficient and reasonably available commercial quantities of
a satisfactory quality are not mined, produced, or manufactured in
the United States; or
(2) It is inconsistent with the public interest to apply the
restrictions of the Buy American statute; or
(B) The end product is a COTS item.
End product means those articles, materials, and supplies to be
acquired under this contract for public use.
Foreign end product means an end product other than a domestic
end product.
Free Trade Agreement country means Australia, Bahrain, Canada,
Chile, Colombia, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Honduras, Korea (Republic of), Mexico, Morocco,
Nicaragua, Panama, Peru, or Singapore;
Free Trade Agreement country end product means an article that--
(i) Is wholly the growth, product, or manufacture of a Free
Trade Agreement country; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in a Free Trade Agreement country into a new and
different article of commerce with a name, character, or use
distinct from that of the article or articles from which it was
transformed. The term refers to a product offered for purchase under
a supply contract, but for purposes of calculating the value of the
end product includes services (except transportation services)
incidental to its supply, provided that the value of those
incidental services does not exceed the value of the product itself.
Moroccan end product means an article that--
(i) Is wholly the growth, product, or manufacture of Morocco; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Morocco into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Panamanian end product means an article that--
(i) Is wholly the growth, product, or manufacture of Panama; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Panama into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Peruvian end product means an article that--
(i) Is wholly the growth, product, or manufacture of Peru; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Peru into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Qualifying country means a country with a reciprocal defense
procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove
barriers to purchases of supplies produced in the other country or
services performed by sources of the other country, and the
memorandum or agreement complies, where applicable, with the
requirements of section 36 of the Arms Export Control Act (22 U.S.C.
2776) and with 10 U.S.C. 2457. Accordingly, the following are
qualifying countries:
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Finland
France
Germany
Greece
Israel
Italy
Luxembourg
Netherlands
Norway
Poland
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland.
Qualifying country component means a component mined, produced,
or manufactured in a qualifying country.
Qualifying country end product means--
(i) An unmanufactured end product mined or produced in a
qualifying country; or
(ii) An end product manufactured in a qualifying country if--
(A) The cost of the following types of components exceeds 50
percent of the cost of all its components:
(1) Components mined, produced, or manufactured in a qualifying
country.
[[Page 65828]]
(2) Components mined, produced, or manufactured in the United
States.
(3) Components of foreign origin of a class or kind for which
the Government has determined that sufficient and reasonably
available commercial quantities of a satisfactory quality are not
mined, produced, or manufactured in the United States; or
(B) The end product is a COTS item.
South Caucasus/Central and South Asian (SC/CASA) state means
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan,
Tajikistan, Turkmenistan, or Uzbekistan.
South Caucasus/Central and South Asian (SC/CASA) state end
product means an article that--
(i) Is wholly the growth, product, or manufacture of an SC/CASA
state; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in an SC/CASA state into a new and different article of
commerce with a name, character, or use distinct from that of the
article or articles from which it was transformed. The term refers
to a product offered for purchase under a supply contract, but for
purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.
United States means the 50 States, the District of Columbia, and
outlying areas.
(b) Unless otherwise specified, this clause applies to all items
in the Schedule.
(c) The Contractor shall deliver under this contract only
domestic end products unless, in its offer, it specified delivery of
qualifying country end products, SC/CASA state end products,
Canadian end products, or other foreign end products in the Buy
American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate III provision of the solicitation. If the
Contractor certified in its offer that it will deliver a qualifying
country end product, SC/CASA state end products, or a Canadian end
product, the Contractor shall deliver a qualifying country end
product, an SC/CASA state end product, a Canadian end product or, at
the Contractor's option, a domestic end product.
(d) The contract price does not include duty for end products or
components for which the Contractor will claim duty-free entry.
(End of clause)
Alternate IV. As prescribed in 225.1101(10)(i)(E), use the
following clause, which adds Korean end product to paragraph (a), and
uses a different paragraph (c) than the basic clause:
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate IV (Nov 2014)
(a) Definitions. As used in this clause--
Bahrainian end product means an article that--
(i) Is wholly the growth, product, or manufacture of Bahrain; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Bahrain into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Commercially available off-the-shelf (COTS) item--
(i) Means any item of supply (including construction material)
that is--
(A) A commercial item (as defined in paragraph (1) of the
definition of commercial item in section 2.101 of the Federal
Acquisition Regulation);
(B) Sold in substantial quantities in the commercial
marketplace; and
(C) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(ii) Does not include bulk cargo, as defined in 46 U.S.C.
40102(4), such as agricultural products and petroleum products.
Component means an article, material, or supply incorporated
directly into an end product.
Domestic end product means--
(i) An unmanufactured end product that has been mined or
produced in the United States; or
(ii) An end product manufactured in the United States if--
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 50 percent of the cost of all its components. The
cost of components includes transportation costs to the place of
incorporation into the end product and U.S. duty (whether or not a
duty-free entry certificate is issued). Scrap generated, collected,
and prepared for processing in the United States is considered
domestic. A component is considered to have been mined, produced, or
manufactured in the United States (regardless of its source in fact)
if the end product in which it is incorporated is manufactured in
the United States and the component is of a class or kind for which
the Government has determined that--
(1) Sufficient and reasonably available commercial quantities of
a satisfactory quality are not mined, produced, or manufactured in
the United States; or
(2) It is inconsistent with the public interest to apply the
restrictions of the Buy American statute; or
(B) The end product is a COTS item.
End product means those articles, materials, and supplies to be
acquired under this contract for public use.
Foreign end product means an end product other than a domestic
end product.
Free Trade Agreement country means Australia, Bahrain, Canada,
Chile, Colombia, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Honduras, Korea (Republic of), Mexico, Morocco,
Nicaragua, Panama, Peru, or Singapore;
Free Trade Agreement country end product means an article that--
(i) Is wholly the growth, product, or manufacture of a Free
Trade Agreement country; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in a Free Trade Agreement country into a new and
different article of commerce with a name, character, or use
distinct from that of the article or articles from which it was
transformed. The term refers to a product offered for purchase under
a supply contract, but for purposes of calculating the value of the
end product includes services (except transportation services)
incidental to its supply, provided that the value of those
incidental services does not exceed the value of the product itself.
Korean end product means an article that--
(i) Is wholly the growth, product, or manufacture of Korea; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Korea (Republic of) into a new and different article
of commerce with a name, character, or use distinct from that of the
article or articles from which it was transformed. The term refers
to a product offered for purchase under a supply contract, but for
purposes of calculating the value of the end product, includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.
Moroccan end product means an article that--
(i) Is wholly the growth, product, or manufacture of Morocco; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Morocco into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Panamanian end product means an article that--
(i) Is wholly the growth, product, or manufacture of Panama; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Panama into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
[[Page 65829]]
Peruvian end product means an article that--
(i) Is wholly the growth, product, or manufacture of Peru; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Peru into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Qualifying country means a country with a reciprocal defense
procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove
barriers to purchases of supplies produced in the other country or
services performed by sources of the other country, and the
memorandum or agreement complies, where applicable, with the
requirements of section 36 of the Arms Export Control Act (22 U.S.C.
2776) and with 10 U.S.C. 2457. Accordingly, the following are
qualifying countries:
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Finland
France
Germany
Greece
Israel
Italy
Luxembourg
Netherlands
Norway
Poland
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland.
Qualifying country component means a component mined, produced,
or manufactured in a qualifying country.
Qualifying country end product means--
(i) An unmanufactured end product mined or produced in a
qualifying country; or
(ii) An end product manufactured in a qualifying country if--
(A) The cost of the following types of components exceeds 50
percent of the cost of all its components:
(1) Components mined, produced, or manufactured in a qualifying
country.
(2) Components mined, produced, or manufactured in the United
States.
(3) Components of foreign origin of a class or kind for which
the Government has determined that sufficient and reasonably
available commercial quantities of a satisfactory quality are not
mined, produced, or manufactured in the United States; or
(B) The end product is a COTS item.
United States means the 50 States, the District of Columbia, and
outlying areas.
(b) Unless otherwise specified, this clause applies to all items
in the Schedule.
(c) The Contractor shall deliver under this contract only
domestic end products unless, in its offer, it specified delivery of
qualifying country end products, Free Trade Agreement country end
products other than Bahrainian end products, Korean end products,
Moroccan end products, Panamanian end products, or Peruvian end
products, or other foreign end products in the Buy American--Free
Trade Agreements--Balance of Payments Program Certificate--Alternate
IV provision of the solicitation. If the Contractor certified in its
offer that it will deliver a qualifying country end product or a
Free Trade Agreement country end product other than a Bahrainian end
product, a Korean end product, a Moroccan end product, a Panamanian
end product, or a Peruvian end product, the Contractor shall deliver
a qualifying country end product, a Free Trade Agreement country end
product other than a Bahrainian end product, a Korean end product, a
Moroccan end product, a Panamanian end product, or a Peruvian end
product, or, at the Contractor's option, a domestic end product.
(d) The contract price does not include duty for end products or
components for which the Contractor will claim duty-free entry.
(End of clause)
Alternate V. As prescribed in 225.1101(10)(i)(F), use the following
clause, which adds Korean end product, South Caucasus/Central and South
Asian (SC/CASA) state, and South Caucasus/Central and South Asian (SC/
CASA) state end product to paragraph (a), and uses a different
paragraph (c) than the basic clause:
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate V (Nov 2014)
(a) Definitions. As used in this clause--
Bahrainian end product means an article that--
(i) Is wholly the growth, product, or manufacture of Bahrain; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Bahrain into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Commercially available off-the-shelf (COTS) item--
(i) Means any item of supply (including construction material)
that is--
(A) A commercial item (as defined in paragraph (1) of the
definition of commercial item in section 2.101 of the Federal
Acquisition Regulation);
(B) Sold in substantial quantities in the commercial
marketplace; and
(C) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(ii) Does not include bulk cargo, as defined in 46 U.S.C.
40102(4), such as agricultural products and petroleum products.
Component means an article, material, or supply incorporated
directly into an end product.
Domestic end product means--
(i) An unmanufactured end product that has been mined or
produced in the United States; or
(ii) An end product manufactured in the United States if--
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 50 percent of the cost of all its components. The
cost of components includes transportation costs to the place of
incorporation into the end product and U.S. duty (whether or not a
duty-free entry certificate is issued). Scrap generated, collected,
and prepared for processing in the United States is considered
domestic. A component is considered to have been mined, produced, or
manufactured in the United States (regardless of its source in fact)
if the end product in which it is incorporated is manufactured in
the United States and the component is of a class or kind for which
the Government has determined that--
(1) Sufficient and reasonably available commercial quantities of
a satisfactory quality are not mined, produced, or manufactured in
the United States; or
(2) It is inconsistent with the public interest to apply the
restrictions of the Buy American statute; or
(B) The end product is a COTS item.
End product means those articles, materials, and supplies to be
acquired under this contract for public use.
Foreign end product means an end product other than a domestic
end product.
Free Trade Agreement country means Australia, Bahrain, Canada,
Chile, Colombia, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Honduras, Korea (Republic of), Mexico, Morocco,
Nicaragua, Panama, Peru, or Singapore;
Free Trade Agreement country end product means an article that--
(i) Is wholly the growth, product, or manufacture of a Free
Trade Agreement country; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in a Free Trade Agreement country into a new and
different article of commerce with a name, character, or use
distinct from that of the article or articles from which it was
transformed. The term refers to a product offered for purchase under
a supply contract,
[[Page 65830]]
but for purposes of calculating the value of the end product
includes services (except transportation services) incidental to its
supply, provided that the value of those incidental services does
not exceed the value of the product itself.
Korean end product means an article that--
(i) Is wholly the growth, product, or manufacture of Korea; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Korea (Republic of) into a new and different article
of commerce with a name, character, or use distinct from that of the
article or articles from which it was transformed. The term refers
to a product offered for purchase under a supply contract, but for
purposes of calculating the value of the end product, includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.
Moroccan end product means an article that--
(i) Is wholly the growth, product, or manufacture of Morocco; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Morocco into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Panamanian end product means an article that--
(i) Is wholly the growth, product, or manufacture of Panama; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Panama into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Peruvian end product means an article that--
(i) Is wholly the growth, product, or manufacture of Peru; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Peru into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Qualifying country means a country with a reciprocal defense
procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove
barriers to purchases of supplies produced in the other country or
services performed by sources of the other country, and the
memorandum or agreement complies, where applicable, with the
requirements of section 36 of the Arms Export Control Act (22 U.S.C.
2776) and with 10 U.S.C. 2457. Accordingly, the following are
qualifying countries:
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Finland
France
Germany
Greece
Israel
Italy
Luxembourg
Netherlands
Norway
Poland
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland.
Qualifying country component means a component mined, produced,
or manufactured in a qualifying country.
Qualifying country end product means--
(i) An unmanufactured end product mined or produced in a
qualifying country; or
(ii) An end product manufactured in a qualifying country if--
(A) The cost of the following types of components exceeds 50
percent of the cost of all its components:
(1) Components mined, produced, or manufactured in a qualifying
country.
(2) Components mined, produced, or manufactured in the United
States.
(3) Components of foreign origin of a class or kind for which
the Government has determined that sufficient and reasonably
available commercial quantities of a satisfactory quality are not
mined, produced, or manufactured in the United States; or
(B) The end product is a COTS item.
South Caucasus/Central and South Asian (SC/CASA) state means
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan,
Tajikistan, Turkmenistan, or Uzbekistan.
South Caucasus/Central and South Asian (SC/CASA) state end
product means an article that--
(i) Is wholly the growth, product, or manufacture of an SC/CASA
state; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in an SC/CASA state into a new and different article of
commerce with a name, character, or use distinct from that of the
article or articles from which it was transformed. The term refers
to a product offered for purchase under a supply contract, but for
purposes of calculating the value of the end product, includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.
United States means the 50 States, the District of Columbia, and
outlying areas.
(b) Unless otherwise specified, this clause applies to all items
in the Schedule.
(c) The Contractor shall deliver under this contract only
domestic end products unless, in its offer, it specified delivery of
qualifying country end products, SC/CASA state end products, Free
Trade Agreement country end products other than Bahrainian end
products, Korean end products, Moroccan end products, Panamanian end
products, or Peruvian end products, or other foreign end products in
the Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate V provision of the solicitation. If the
Contractor certified in its offer that it will deliver a qualifying
country end product, SC/CASA state end products, or a Free Trade
Agreement country end product other than a Bahrainian end product, a
Korean end product, a Moroccan end product, a Panamanian end
product, or a Peruvian end product, the Contractor shall deliver a
qualifying country end product, an SC/CASA state end product, a Free
Trade Agreement country end product other than a Bahrainian end
product, a Korean end product, a Moroccan end product, a Panamanian
end product, or a Peruvian end product or, at the Contractor's
option, a domestic end product.
(d) The contract price does not include duty for end products or
components for which the Contractor will claim duty-free entry.
(End of clause)
0
12. Amend section 252.225-7044 by--
0
a. Revising the introductory text, clause title, and date;
0
b. In paragraph (a), redesignating the paragraph numbers for--
0
i. Commercially available off-the shelf (COTS) item by redesignating
paragraphs (1) and (2) as (i) and (ii); and in the newly redesignated
paragraph (i), redesignating paragraphs (i), (ii), and (iii) as (i)(A),
(B), and (C), respectively;
0
ii. Cost of components by redesignating paragraphs (1) and (2) as (i)
and (ii), respectively;
0
iii. Domestic construction material by redesignating paragraphs (1) and
(2) as (i) and (ii); and in the newly redesignated paragraph (ii),
redesignating paragraphs (i) and (ii) as (ii)(A) and (B), respectively;
and
0
c. Revising Alternate I.
[[Page 65831]]
252.225-7044 Balance of Payments Program--Construction Material.
As prescribed in 225.7503(a), use one of the following clauses:
Basic. As prescribed in 225.7503(a)(1), use the following clause:
Balance of Payments Program--Construction Material--Basic (Nov 2014)
* * * * *
Alternate I. As prescribed in 225.7503(a)(2), use the following
clause, which adds definitions for South Caucasus/Central and South
Asian (SC/CASA) state and SC/CASA state construction material to
paragraph (a), and uses ``domestic construction material or SC/CASA
state construction material'' instead of ``domestic construction
material'' in the second sentence of paragraph (b):
Balance of Payments Program--Construction Material--Alternate I (Nov
2014)
(a) Definitions. As used in this clause--
Commercially available off-the-shelf (COTS) item''--
(i) Means any item of supply (including construction material)
that is--
(A) A commercial item (as defined in paragraph (1) of the
definition of commercial item in section 2.101 of the Federal
Acquisition Regulation);
(B) Sold in substantial quantities in the commercial
marketplace; and
(C) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(ii) Does not include bulk cargo, as defined in 46 U.S.C.
40102(4), such as agricultural products and petroleum products.
Component means any article, material, or supply incorporated
directly into construction material.
Construction material means an article, material, or supply
brought to the construction site by the Contractor or a
subcontractor for incorporation into the building or work. The term
also includes an item brought to the site preassembled from
articles, materials, or supplies. However, emergency life safety
systems, such as emergency lighting, fire alarm, and audio
evacuation systems, that are discrete systems incorporated into a
public building or work and that are produced as complete systems,
are evaluated as a single and distinct construction material
regardless of when or how the individual parts or components of
those systems are delivered to the construction site. Materials
purchased directly by the Government are supplies, not construction
material.
Cost of components means--
(i) For components purchased by the Contractor, the acquisition
cost, including transportation costs to the place of incorporation
into the end product (whether or not such costs are paid to a
domestic firm), and any applicable duty (whether or not a duty-free
entry certificate is issued); or
(ii) For components manufactured by the Contractor, all costs
associated with the manufacture of the component, including
transportation costs as described in paragraph (1) of this
definition, plus allocable overhead costs, but excluding profit.
Cost of components does not include any costs associated with the
manufacture of the construction material.
Domestic construction material means--
(i) An unmanufactured construction material mined or produced in
the United States; or
(ii) A construction material manufactured in the United States,
if--
(A) The cost of its components mined, produced, or manufactured
in the United States exceeds 50 percent of the cost of all its
components. Components of foreign origin of the same class or kind
for which nonavailability determinations have been made are treated
as domestic; or
(B) The construction material is a COTS item.
South Caucasus/Central and South Asian (SC/CASA) state means
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan,
Tajikistan, Turkmenistan, or Uzbekistan.
SC/CASA state construction material means construction material
that--
(i) Is wholly the growth, product, or manufacture of an SC/CASA
state; or
(ii) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in an SC/CASA state into a new and
different construction material distinct from the material from
which it was transformed.
United States means the 50 States, the District of Columbia, and
outlying areas.
(b) Domestic preference. This clause implements the Balance of
Payments Program by providing a preference for domestic construction
material. The Contractor shall use only domestic construction
material or SC/CASA state construction material in performing this
contract, except for--
(1) Construction material valued at or below the simplified
acquisition threshold in part 2 of the Federal Acquisition
Regulation;
(2) Information technology that is a commercial item; or
(3) The construction material or components listed by the
Government as follows:
-----------------------------------------------------------------------
[Contracting Officer to list applicable excepted materials or
indicate ``none''].
(End of clause)
0
13. Amend section 252.225-7045 by--
0
a. Revising the introductory text, clause title, and date;
0
b. In paragraph (a), redesignating the paragraph numbers for--
0
i. Caribbean Basin country construction material by redesignating
paragraphs (1) and (2) as (i) and (ii), respectively;
0
>ii. Commercially available off-the-shelf (COTS) item by redesignating
paragraphs (1) and (2) as (i) and (ii); and in the newly redesignated
paragraph (i), redesignating paragraphs (i), (ii), and (iii) as (i)(A),
(B), and (C), respectively;
0
iii. Cost of components by redesignating paragraphs (1) and (2) as (i)
and (ii), respectively;
0
iv. Designated country by redesignating paragraphs (1) through (4) as
(i) through (iv), respectively;
0
v. Domestic construction material by redesignating paragraphs (1) and
(2) as (i) and (ii); and in the newly redesignated paragraph (ii)
redesignating paragraphs (i) and (ii) as (ii)(A) and (B);
0
vi. Free Trade Agreement country construction material by redesignating
paragraphs (1) and (2) as (i) and (ii);
0
vii. Least developed country construction material by redesignating
paragraphs (1) and (2) as (i) and (ii);
0
viii. WTO GPA country construction material by redesignating paragraphs
(1) and (2) as (i) and (ii); and
0
c. Revising Alternates I, II, and III.
252.225-7045 Balance of Payments Program--Construction Material Under
Trade Agreements.
As prescribed in 225.7503(b), use one of the following clauses:
Basic. As prescribed in 225.7503(b)(1), use the following clause:
Balance of Payments Program--Construction Material Under Trade
Agreements--Basic (Nov 2014)
* * * * *
Alternate I. As prescribed in 225.7503(b)(2), use the following
clause, which adds Bahrainian or Mexican construction material to
paragraph (a), and uses a different paragraph (b) and (c) than the
basic clause:
Balance of Payments Program--Construction Material Under Trade
Agreements--Alternate I (Nov 2014)
(a) Definitions. As used in this clause--
Bahrainian or Mexican construction material means a construction
material that--
(i) Is wholly the growth, product, or manufacture of Bahrain or
Mexico; or
(ii) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in Bahrain or Mexico into a new and
different construction material distinct from the materials from
which it was transformed.
Caribbean Basin country construction material means a
construction material that--
(i) Is wholly the growth, product, or manufacture of a Caribbean
Basin country; or
(ii) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a Caribbean Basin country into a new
and different construction material distinct from the materials from
which it was transformed.
[[Page 65832]]
Commercially available off-the-shelf (COTS) item--
(i) Means any item of supply (including construction material)
that is--
(A) A commercial item (as defined in paragraph (1) of the
definition of commercial item in section 2.101 of the Federal
Acquisition Regulation);
(B) Sold in substantial quantities in the commercial
marketplace; and
(C) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(ii) Does not include bulk cargo, as defined in section 3 of the
Shipping Act of 1984 (46 U.S.C. 40102), such as agricultural
products and petroleum products.
Component means any article, material, or supply incorporated
directly into construction material.
Construction material means an article, material, or supply
brought to the construction site by the Contractor or a
subcontractor for incorporation into the building or work. The term
also includes an item brought to the site preassembled from
articles, materials, or supplies. However, emergency life safety
systems, such as emergency lighting, fire alarm, and audio
evacuation systems, that are discrete systems incorporated into a
public building or work and that are produced as complete systems,
are evaluated as a single and distinct construction material
regardless of when or how the individual parts or components of
those systems are delivered to the construction site. Materials
purchased directly by the Government are supplies, not construction
material.
Cost of components means--
(i) For components purchased by the Contractor, the acquisition
cost, including transportation costs to the place of incorporation
into the end product (whether or not such costs are paid to a
domestic firm), and any applicable duty (whether or not a duty-free
entry certificate is issued); or
(ii) For components manufactured by the Contractor, all costs
associated with the manufacture of the component, including
transportation costs as described in paragraph (1) of this
definition, plus allocable overhead costs, but excluding profit.
Cost of components does not include any costs associated with the
manufacture of the construction material.
Designated country means--
(i) A World Trade Organization Government Procurement Agreement
(WTO GPA) country (Armenia, Aruba, Austria, Belgium, Bulgaria,
Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland,
France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland,
Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein,
Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal,
Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden,
Switzerland, Taiwan (known in the World Trade Organization as ``the
Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu''
(Chinese Taipei)), or the United Kingdom);
(ii) A Free Trade Agreement country (Australia, Bahrain, Canada,
Chile, Colombia, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Honduras, Korea (Republic of), Mexico, Morocco,
Nicaragua, Panama, Peru, or Singapore);
(iii) A least developed country (Afghanistan, Angola,
Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central
African Republic, Chad, Comoros, Democratic Republic of Congo,
Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea,
Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar,
Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa,
Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands,
Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda,
Vanuatu, Yemen, or Zambia); or
(iv) A Caribbean Basin country (Antigua and Barbuda, Aruba,
Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao,
Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St.
Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint
Eustatius, Sint Maarten, or Trinidad and Tobago).
Designated country construction material means a construction
material that is a WTO GPA country construction material, a Free
Trade Agreement country construction material, a least developed
country construction material, or a Caribbean Basin country
construction material.
Domestic construction material means--
(i) An unmanufactured construction material mined or produced in
the United States; or
(ii) A construction material manufactured in the United States,
if--
(A) The cost of its components mined, produced, or manufactured
in the United States exceeds 50 percent of the cost of all its
components. Components of foreign origin of the same class or kind
for which nonavailability determinations have been made are treated
as domestic; or
(B) The construction material is a COTS item.
Free Trade Agreement country construction material means a
construction material that--
(i) Is wholly the growth, product, or manufacture of a Free
Trade Agreement country; or
(ii) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a Free Trade Agreement country into a
new and different construction material distinct from the material
from which it was transformed.
Least developed country construction material means a
construction material that--
(i) Is wholly the growth, product, or manufacture of a least
developed country; or
(ii) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a least developed country into a new
and different construction material distinct from the materials from
which it was transformed.
United States means the 50 States, the District of Columbia, and
outlying areas.
WTO GPA country construction material means a construction
material that--
(i) Is wholly the growth, product, or manufacture of a WTO GPA
country; or
(ii) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a WTO GPA country into a new and
different construction material distinct from the materials from
which it was transformed.
(b) This clause implements the Balance of Payments Program by
providing a preference for domestic construction material. In
addition, the Contracting Officer has determined that the WTO GPA
and all Free Trade Agreements except NAFTA and the Bahrain Free
Trade Agreement apply to this acquisition. Therefore, the Balance of
Payments Program restrictions are waived for designated country
construction material other than Bahrainian or Mexican construction
material.
(c) The Contractor shall use only domestic or designated country
construction material other than Bahrainian or Mexican construction
material in performing this contract, except for--
(1) Construction material valued at or below the simplified
acquisition threshold in part 2 of the Federal Acquisition
Regulation; or
(2) Information technology that is a commercial item; or
(3) The construction material or components listed by the
Government as follows:
-----------------------------------------------------------------------
[Contracting Officer to list applicable excepted materials or
indicate ``none''].
(End of clause)
Alternate II. As prescribed in 225.7503(b)(3), use the following
clause, which adds South Caucasus/Central and South Asian (SC/CASA)
state and SC/CASA state construction material to paragraph (a), uses a
different paragraph (b) and introductory text for paragraph (c) than
the basic clause, and adds paragraph (d):
Balance of Payments Program--Construction Material Under Trade
Agreements--Alternate II (Nov 2014)
(a) Definitions. As used in this clause--
Caribbean Basin country construction material means a
construction material that--
(i) Is wholly the growth, product, or manufacture of a Caribbean
Basin country; or
(ii) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a Caribbean Basin country into a new
and different construction material distinct from the materials from
which it was transformed.
Commercially available off-the-shelf (COTS) item--
(i) Means any item of supply (including construction material)
that is--
(A) A commercial item (as defined in paragraph (1) of the
definition of commercial item in section 2.101 of the Federal
Acquisition Regulation);
(B) Sold in substantial quantities in the commercial
marketplace; and
[[Page 65833]]
(C) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(ii) Does not include bulk cargo, as defined in section 3 of the
Shipping Act of 1984 (46 U.S.C. 40102), such as agricultural
products and petroleum products.
Component means any article, material, or supply incorporated
directly into construction material.
Construction material means an article, material, or supply
brought to the construction site by the Contractor or a
subcontractor for incorporation into the building or work. The term
also includes an item brought to the site preassembled from
articles, materials, or supplies. However, emergency life safety
systems, such as emergency lighting, fire alarm, and audio
evacuation systems, that are discrete systems incorporated into a
public building or work and that are produced as complete systems,
are evaluated as a single and distinct construction material
regardless of when or how the individual parts or components of
those systems are delivered to the construction site. Materials
purchased directly by the Government are supplies, not construction
material.
Cost of components means--
(i) For components purchased by the Contractor, the acquisition
cost, including transportation costs to the place of incorporation
into the end product (whether or not such costs are paid to a
domestic firm), and any applicable duty (whether or not a duty-free
entry certificate is issued); or
(ii) For components manufactured by the Contractor, all costs
associated with the manufacture of the component, including
transportation costs as described in paragraph (1) of this
definition, plus allocable overhead costs, but excluding profit.
Cost of components does not include any costs associated with the
manufacture of the construction material.
Designated country means--
(i) A World Trade Organization Government Procurement Agreement
(WTO GPA) country (Armenia, Aruba, Austria, Belgium, Bulgaria,
Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland,
France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland,
Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein,
Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal,
Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden,
Switzerland, Taiwan (known in the World Trade Organization as ``the
Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu''
(Chinese Taipei)), or the United Kingdom);
(ii) A Free Trade Agreement country (Australia, Bahrain, Canada,
Chile, Colombia, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Honduras, Korea (Republic of), Mexico, Morocco,
Nicaragua, Panama, Peru, or Singapore);
(iii) A least developed country (Afghanistan, Angola,
Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central
African Republic, Chad, Comoros, Democratic Republic of Congo,
Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea,
Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar,
Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa,
Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands,
Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda,
Vanuatu, Yemen, or Zambia); or
(iv) A Caribbean Basin country (Antigua and Barbuda, Aruba,
Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao,
Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St.
Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint
Eustatius, Sint Maarten, or Trinidad and Tobago).
Designated country construction material means a construction
material that is a WTO GPA country construction material, a Free
Trade Agreement country construction material, a least developed
country construction material, or a Caribbean Basin country
construction material.
Domestic construction material means--
(i) An unmanufactured construction material mined or produced in
the United States; or
(ii) A construction material manufactured in the United States,
if--
(A) The cost of its components mined, produced, or manufactured
in the United States exceeds 50 percent of the cost of all its
components. Components of foreign origin of the same class or kind
for which nonavailability determinations have been made are treated
as domestic; or
(B) The construction material is a COTS item.
Free Trade Agreement country construction material means a
construction material that--
(i) Is wholly the growth, product, or manufacture of a Free
Trade Agreement country; or
(ii) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a Free Trade Agreement country into a
new and different construction material distinct from the material
from which it was transformed.
Least developed country construction material means a
construction material that--
(i) Is wholly the growth, product, or manufacture of a least
developed country; or
(ii) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a least developed country into a new
and different construction material distinct from the materials from
which it was transformed.
South Caucasus/Central and South Asian (SC/CASA) state means
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan,
Tajikistan, Turkmenistan, or Uzbekistan.
SC/CASA state construction material means construction material
that--
(i) Is wholly the growth, product, or manufacture of an SC/CASA
state; or
(ii) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in an SC/CASA state into a new and
different construction material distinct from the material from
which it was transformed.
United States means the 50 States, the District of Columbia, and
outlying areas.
WTO GPA country construction material means a construction
material that--
(i) Is wholly the growth, product, or manufacture of a WTO GPA
country; or
(ii) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a WTO GPA country into a new and
different construction material distinct from the materials from
which it was transformed.
(b) This clause implements the Balance of Payments Program by
providing a preference for domestic construction material. In
addition, the Contracting Officer has determined that the WTO GPA,
Free Trade Agreements, and other waivers relating to acquisitions in
support of operations in Afghanistan apply to this acquisition.
Therefore, the Balance of Payments Program restrictions are waived
for SC/CASA state and designated country construction materials.
(c) The Contractor shall use only domestic, SC/CASA state, or
designated country construction material in performing this
contract, except for--
(1) Construction material valued at or below the simplified
acquisition threshold in part 2 of the Federal Acquisition
Regulation;
(2) Information technology that is a commercial item; or
(3) The construction material or components listed by the
Government as follows:
-----------------------------------------------------------------------
[Contracting Officer to list applicable excepted materials or
indicate ``none''].
(d) If the Contractor is from an SC/CASA state, the Contractor
shall inform its government of its participation in this acquisition
and that it generally will not have such opportunity in the future
unless its government provides reciprocal procurement opportunities
to U.S. products and services and suppliers of such products and
services.
(End of clause)
Alternate III. As prescribed in 225.7503(b)(4), use the following
clause, which adds South Caucasus/Central and South Asian (SC/CASA
state and SC/CASA state construction material to paragraph (a), uses a
different paragraph (b) and introductory text for paragraph (c) than
the basic clause, and adds paragraph (d):
Balance of Payments Program--Construction Material Under Trade
Agreements--Alternate III (Nov 2014)
(a) Definitions. As used in this clause--
Caribbean Basin country construction material means a
construction material that--
(i) Is wholly the growth, product, or manufacture of a Caribbean
Basin country; or
(ii) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a Caribbean Basin country into a new
and different construction material distinct from the materials from
which it was transformed.
[[Page 65834]]
Commercially available off-the-shelf (COTS) item--
(i) Means any item of supply (including construction material)
that is--
(A) A commercial item (as defined in paragraph (1) of the
definition of commercial item in section 2.101 of the Federal
Acquisition Regulation);
(B) Sold in substantial quantities in the commercial
marketplace; and
(C) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(ii) Does not include bulk cargo, as defined in section 3 of the
Shipping Act of 1984 (46 U.S.C. 40102), such as agricultural
products and petroleum products.
Component means any article, material, or supply incorporated
directly into construction material.
Construction material means an article, material, or supply
brought to the construction site by the Contractor or a
subcontractor for incorporation into the building or work. The term
also includes an item brought to the site preassembled from
articles, materials, or supplies. However, emergency life safety
systems, such as emergency lighting, fire alarm, and audio
evacuation systems, that are discrete systems incorporated into a
public building or work and that are produced as complete systems,
are evaluated as a single and distinct construction material
regardless of when or how the individual parts or components of
those systems are delivered to the construction site. Materials
purchased directly by the Government are supplies, not construction
material.
Cost of components means--
(i) For components purchased by the Contractor, the acquisition
cost, including transportation costs to the place of incorporation
into the end product (whether or not such costs are paid to a
domestic firm), and any applicable duty (whether or not a duty-free
entry certificate is issued); or
(ii) For components manufactured by the Contractor, all costs
associated with the manufacture of the component, including
transportation costs as described in paragraph (1) of this
definition, plus allocable overhead costs, but excluding profit.
Cost of components does not include any costs associated with the
manufacture of the construction material.
Designated country means--
(i) A World Trade Organization Government Procurement Agreement
(WTO GPA) country (Armenia, Aruba, Austria, Belgium, Bulgaria,
Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland,
France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland,
Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein,
Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal,
Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden,
Switzerland, Taiwan (known in the World Trade Organization as ``the
Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu''
(Chinese Taipei)), or the United Kingdom);
(ii) A Free Trade Agreement country (Australia, Bahrain, Canada,
Chile, Colombia, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Honduras, Korea (Republic of), Mexico, Morocco,
Nicaragua, Panama, Peru, or Singapore);
(iii) A least developed country (Afghanistan, Angola,
Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central
African Republic, Chad, Comoros, Democratic Republic of Congo,
Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea,
Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar,
Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa,
Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands,
Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda,
Vanuatu, Yemen, or Zambia); or
(iv) A Caribbean Basin country (Antigua and Barbuda, Aruba,
Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao,
Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St.
Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint
Eustatius, Sint Maarten, or Trinidad and Tobago).
Designated country construction material means a construction
material that is a WTO GPA country construction material, a Free
Trade Agreement country construction material, a least developed
country construction material, or a Caribbean Basin country
construction material.
Domestic construction material means--
(i) An unmanufactured construction material mined or produced in
the United States; or
(ii) A construction material manufactured in the United States,
if--
(A) The cost of its components mined, produced, or manufactured
in the United States exceeds 50 percent of the cost of all its
components. Components of foreign origin of the same class or kind
for which nonavailability determinations have been made are treated
as domestic; or
(B) The construction material is a COTS item.
Free Trade Agreement country construction material means a
construction material that--
(i) Is wholly the growth, product, or manufacture of a Free
Trade Agreement country; or
(ii) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a Free Trade Agreement country into a
new and different construction material distinct from the material
from which it was transformed.
Least developed country construction material means a
construction material that--
(i) Is wholly the growth, product, or manufacture of a least
developed country; or
(ii) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a least developed country into a new
and different construction material distinct from the materials from
which it was transformed.
South Caucasus/Central and South Asian (SC/CASA) state means
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan,
Tajikistan, Turkmenistan, or Uzbekistan.
SC/CASA state construction material means construction material
that--
(i) Is wholly the growth, product, or manufacture of An SC/CASA
state; or
(ii) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in an SC/CASA state into a new and
different construction material distinct from the material from
which it was transformed.
United States means the 50 States, the District of Columbia, and
outlying areas.
WTO GPA country construction material means a construction
material that--
(i) Is wholly the growth, product, or manufacture of a WTO GPA
country; or
(ii) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a WTO GPA country into a new and
different construction material distinct from the materials from
which it was transformed.
(b) This clause implements the Balance of Payments Program by
providing a preference for domestic construction material. In
addition, the Contracting Officer has determined that the WTO GPA,
all Free Trade Agreements except NAFTA and the Bahrain Free Trade
Agreement, and other waivers relating to acquisitions in support of
operations in Afghanistan apply to this acquisition. Therefore, the
Balance of Payments Program restrictions are waived for SC/CASA
state and designated country construction material other than
Bahrainian or Mexican construction material.
(c) The Contractor shall use only domestic, SC/CASA state, or
designated country construction material other than Bahrainian or
Mexican construction material in performing this contract, except
for--
(1) Construction material valued at or below the simplified
acquisition threshold in part 2 of the Federal Acquisition
Regulation;
(2) Information technology that is a commercial item; or
(3) The construction material or components listed by the
Government as follows:
-----------------------------------------------------------------------
[Contracting Officer to list applicable excepted materials or
indicate ``none''].
(d) If the Contractor is from an SC/CASA state, the Contractor
shall inform its government of its participation in this acquisition
and that it generally will not have such opportunity in the future
unless its government provides reciprocal procurement opportunities
to U.S. products and services and suppliers of such products and
services.
(End of clause)
[FR Doc. 2014-26161 Filed 11-4-14; 8:45 am]
BILLING CODE 5001-06-P