[Federal Register Volume 87, Number 120 (Thursday, June 23, 2022)]
[Rules and Regulations]
[Pages 37440-37453]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13373]



[[Page 37440]]

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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 225 and 252

[Docket DARS-2021-0012]
RIN 0750-AK85


Defense Federal Acquisition Regulation Supplement: Maximizing the 
Use of American-Made Goods, Products, and Materials (DFARS Case 2019-
D045)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to implement an Executive 
order regarding maximizing the use of American-made goods, products, 
and materials.

DATES: Effective June 23, 2022.

FOR FURTHER INFORMATION CONTACT: Ms. Kimberly Bass, telephone 571-372-
6174.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD is issuing a final rule amending the DFARS to implement 
Executive Order (E.O.) 13881, Maximizing Use of American-made Goods, 
Products, and Materials, which calls for more aggressive implementation 
of the Buy American statute (41 U.S.C. chapter 83) to maximize the 
Government's procurement of American-made goods, products, and 
materials. The Buy American statute requires the purchase of domestic 
products (both end products and construction materials), except when 
the domestic product is not available, the domestic product is only 
available at an unreasonable cost, or it would not be in the public 
interest to buy the domestic product.
    E.O. 13881 supersedes E.O. 10582, Prescribing Procedures for 
Certain Determinations under the Buy American Act. E.O. 13881 
establishes that under the Buy American statute a product is foreign if 
the cost of all foreign components used in such product constitutes 45 
percent or more of the cost of all components, except that iron and 
steel products are foreign if the cost of foreign iron and steel equals 
or exceeds 5 percent of the cost of all components. This rule 
strengthens domestic preferences under the Buy American statute, as 
required by E.O. 13881, by changing how a domestic product is defined, 
while also maintaining the exception for qualifying countries.
    DoD published a proposed rule in the Federal Register at 86 FR 
48370 on August 30, 2021. Five respondents submitted public comments in 
response to the proposed rule.

II. Discussion and Analysis

    DoD reviewed the public comments in the development of the final 
rule. A discussion of the comments is provided. There were no changes 
made to the proposed rule as a result of those comments.

A. Analysis of Public Comments

1. Support for the Rule
    Comment: Several respondents expressed support for the rule, and 
stated that the United States Government should maximize the use of 
goods, products, and materials produced in the United States; the rule 
benefits the overall intent of the strategic national defense policy; 
and is an effective regulatory technique for incentivizing the domestic 
industry as a whole. A respondent further stated the overall public 
policy and public opinion are already gravitating toward the increase 
of domestic production, which only serves to further incentivize the 
increase in this type of production. This respondent supports the 
increased domestic content requirements for iron and steel and iron and 
steel products such as fasteners.
    Response: DoD acknowledges the respondents' support for the rule.
2. Commercially Available-Off-the-Shelf (COTS) Items Exception--COTS 
Waiver for Fasteners
    Comment: A couple of respondents conveyed that the waiver of the 
domestic content test of the Buy American statute for the acquisition 
of COTS fasteners would create a competitive disadvantage for domestic 
fastener manufacturers, especially when all other COTS waivers were 
removed for iron and steel products in Federal Acquisition Regulation 
(FAR) Case 2019-016 (86 FR 6180, January 19, 2021). A respondent 
further stated that to keep the COTS waiver for fasteners but remove it 
for all other iron and steel products only further worsened the 
competitive field for fastener manufacturers.
    A respondent further stated that currently, a COTS item is 
considered compliant with the Buy American statute if its final stage 
of manufacturing occurs in the United States, without regard for the 
origin of the COTS components. The respondent also stated that this 
policy stands in stark contrast with the goals of other domestic 
content preferences, particularly the Buy America statute that applies 
to Federal assistance infrastructure programs that explicitly provides 
that products are only considered American-made if all manufacturing 
processes from the initial melting stage through the application of 
coatings take place in the United States. The COTS waiver takes the 
opposite approach with negative consequences for upstream suppliers of 
raw materials and subcomponents of products and allows for products 
that are entirely comprised of foreign material to be considered 
American-made so long as the final processing stage occurs in the 
United States.
    Response: The roll-back of the COTS waiver is necessary to give 
full effect to the E.O. 13881 requirement. The fasteners being exempted 
from the domestic content requirement are those that are COTS items. 
The current FAR contract clauses implementing the Buy American statute 
apply to a narrow set of procurements. In addition, because the Federal 
Acquisition Regulatory Council retained the COTS items exception for 
most COTS items in its implementation of the E.O. in the FAR, the 
heightened domestic content requirements will not be applicable to 
those procurements. (See the final rule for FAR Case 2019-016 published 
at 86 FR 6180 on January 19, 2021.) This DFARS rule takes the same 
approach.
3. Unreasonable Cost
    Comment: A respondent stated that the Buy American statute requires 
the purchase of domestic products, except if the product is only 
available at an unreasonable cost, and recommended the addition of a 
percent cost above nondomestic goods, products, and materials to ensure 
it is followed more specifically. The respondent further recommended 
the inclusion of a financial credit for those that comply with the Buy 
American statute.
    Response: To implement E.O. 13881 no revisions were required in the 
rule to change the percentage factor used to determine whether the 
offered price of material of domestic origin is unreasonable or 
inconsistent with public interest. In order to determine whether the 
cost of a domestic product is unreasonable, E.O. 13881 increased the 
minimum percentage factor from 6 percent to 20 percent for other than 
small businesses and from 12 percent to 30 percent for small businesses 
(86 FR 6180, January 19, 2021). If the price of the domestic product 
exceeds the price

[[Page 37441]]

of the foreign product by more than 20 percent for other than small 
businesses, then the price of the domestic product is unreasonable. 
This does not apply to DoD, since DoD already uses a 50 percent factor 
for both small and other than small businesses.
4. Public Interest Definition
    Comment: A respondent recommended a better definition of what would 
not be in the public interest.
    Response: DoD acknowledges the comment regarding creation of a new 
public interest definition. A definition to determine what would not be 
in the public interest is not required and would be inconsistent with 
the implementation in the final rule for FAR case 2019-016 published at 
86 FR 6180, on January 19, 2021.
5. Outside the Scope of the Rule
    Comment: A respondent conveyed that excluding COTS items from the 
Buy American statute impairs the statute from achieving the stated 
purpose of the E.O. 14005, Ensuring the Future Is Made in All of 
America by All of America's Workers. Another respondent stated that the 
continuation of a COTS waiver for fasteners is no longer valid.
    Additionally, a respondent provided comments regarding the OMB 
Memorandum M-21-26, Increasing Opportunities for Domestic Sourcing and 
Reducing the Need for Waivers from Made in America Laws, and impacts on 
COTS waivers. The respondent also recommended keeping the fastener 
language in DFARS 252.225-7009, Restriction on Acquisition of Specialty 
Metals, for fasteners provided to the six major DoD programs as it 
allows for improved efficiency for U.S. fastener manufacturers 
providing both commercial and defense applications to the same prime 
contractor, while still protecting the domestic steel and fastener 
industries.
    Another respondent provided comments in response to the final rule 
for FAR case 2019-016 published at 86 FR 6180 on January 19, 2021.
    Response: This final rule implements E.O. 13881, Maximizing Use of 
American-made Goods, Products, and Materials, in the DFARS in 
accordance with the E.O. requirements, and supplements the FAR in 
accordance with the final rule as published implementing E.O. 13881 (86 
FR 6180, dated January 19, 2021). The respondent's comment that 
excluding COTS items from the Buy American statute impairs the statute 
from achieving the stated purpose of the E.O. 14005, Ensuring the 
Future Is Made in All of America by All of America's Workers, is 
outside the scope of this rule.
    The respondent's comment referencing the OMB Memorandum M-21-26, 
Increasing Opportunities for Domestic Sourcing and Reducing the Need 
for Waivers from Made in America Laws, is outside the scope of this 
rule.
    Lastly, the comment referencing the requirements in DFARS 252.225-
7009, Restriction on Acquisition of Specialty Metals, is outside the 
scope of this rule.

B. Other Changes

    Paragraph (2) of the definition of ``domestic construction 
material'' has been revised in the following clauses to refer to the 
definition of ``cost of components'' instead of paragraph (1)(ii)(A) of 
the definition of ``domestic construction material'': 252.225-7044 
(basic clause and alternate I) and 252.225-7045 (basic clause and 
alternates I through III). Paragraph (1)(ii)(A) does not provide 
information regarding the cost of components, which is located in the 
definition of that term.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold, for Commercial Products Including Commercially Available 
Off-the-Shelf Items, and for Commercial Services

    This final rule does not add any new provisions or clauses, nor 
change the applicability of existing provisions or clauses to contracts 
at or below the simplified acquisition threshold, contracts for the 
acquisition of commercial products including commercially available 
off-the-shelf items, and for commercial services.

IV. Expected Impact of the Rule

    The current FAR contract clauses implementing the Buy American 
statute apply to a narrow set of procurements. In addition, because the 
Federal Acquisition Regulatory Council retained the COTS items 
exception for most COTS items in its implementation of E.O. 13881 in 
the FAR, the heightened domestic content requirements will not be 
applicable to those procurements. (See the final rule for FAR Case 
2019-016 published at 86 FR 6180 on January 19, 2021.) This final DFARS 
rule takes the same approach.
    Domestic industries supplying domestic end products are likely to 
benefit from a competitive advantage as a result of the FAR and DFARS 
implementation. Based on the E.O., it is unclear if the pool of 
qualified suppliers would be reduced, resulting in less competition and 
a possible increase in prices that the Government will pay to procure 
these products. At least three arguments point to the likelihood that 
any increase in burden on contractors would be small, if not de 
minimis:
    (1) Familiarization costs should be low.
    (2) Some, if not many, contractors may already be able to meet the 
more stringent threshold.
    (3) Costs incurred by contractors who adjust their supply chains, 
so that their end products qualify as domestic, will enjoy a larger 
price preference that should help to offset these costs over time.
    Each of these arguments is explained below.
    First, DoD does not anticipate significant costs from contractor 
familiarization with the rule given the publication of the FAR final 
rule implementing E.O. 13881 and the history of rulemaking and E.O.s in 
general in this area. The basic mechanics of the Buy American statute 
(e.g., how and when the price preference is used to favor domestic end 
products, certifications required of offerors to demonstrate end 
products are domestic) continue to reflect processes that have been in 
place for decades and are not new to contractors.
    Second, some, if not many, contractors may already be able to 
comply with the lower foreign content requirement needed to meet the 
definition of domestic end product under E.O. 13881 and the final rule. 
Laws such as the SECURE Technology Act (Pub. L. 115-390), which 
requires a series of actions to strengthen the Federal infrastructure 
for managing supply chain risks, are placing significantly increased 
emphasis on Federal agencies and Federal Government contractors to 
identify and reduce risk in their supply chains.
    One way to reduce supply chain risk is to increase domestic 
sourcing of content. In addition, in the context of iron and steel, 
many laws already in place call for more stringent accounting of 
domestic sourcing of content. For example, the Recovery Act required 
that all construction material for a project for the construction, 
alteration, maintenance, or repair of a public building or a public 
work in the United States, consisting wholly or predominantly of iron 
or steel, had to be produced in the United States when using Recovery 
Act funds, to the extent consistent with trade agreements (see FAR 
25.602-1, implementing section 1605 of the Recovery Act).
    In addition, Federal contractors who also work on contracts funded 
under Federal grants may, in some cases, find

[[Page 37442]]

that the steel, iron, and manufactured goods used in the project must 
be produced in the United States, as is the case for certain funding 
administered by the Federal Transit Administration for public 
transportation projects (see 49 U.S.C. 5323(j)).
    Third, it is anticipated that some contractors' products and 
construction materials may not meet the definition of domestic end 
product and domestic construction material unless the contractors take 
steps to adjust their supply chains to increase the domestic content. 
Those contractors that make a business decision not to modify their 
supply chains will still be able to bid on DoD contracts but will no 
longer enjoy a price preference.
    Accordingly, it is likely that the Federal market for iron and 
steel has already completed significant retooling and could meet the 
requirements of E.O. 13881 without too much additional effort.
    This rule amends the clauses that implement the Buy American 
statute. There are four clauses affected by the changes in this rule:
    (1) 252.225-7001, Buy American and Balance of Payments Program 
(Basic and Alternate I).
    (2) 252.225-7036, Buy American--Free Trade Agreements--Balance of 
Payments Program (Basic and Alternates I-V).
    (3) 252.225-7044, Balance of Payments Program--Construction 
Material (Basic and Alternate I).
    (4) 252.225-7045, Balance of Payments Program--Construction 
Material (Basic and Alternates I-III).
    This rule changes the definitions of ``domestic end product'' and 
``domestic construction material.'' The rule also adds the definitions 
of ``steel'' and ``predominantly of iron or steel or a combination of 
both'' in the clauses to conform the DFARS with the FAR implementation 
of E.O. 13881.
    According to the Federal Procurement Data System (FPDS) data for 
fiscal year (FY) 2017, FY 2018, and FY 2019 for new awards with a 
foreign place of performance for construction valued over the micro-
purchase threshold and for awards for supplies, DoD awarded an average 
of 3,222 construction contracts with a foreign place of performance per 
year. In addition, DoD awarded an average of 332,607 supply contracts 
per year during FY 2017 through FY 2019.
    In summary, the rule will strengthen domestic preferences under the 
Buy American statute and provide both large and small businesses the 
opportunity and incentive to deliver U.S. manufactured products from 
domestic suppliers. It is expected that this rule will benefit large 
and small U.S. manufacturers, including those of iron or steel.
    Therefore, based on public comments received, DoD has concluded 
that the initial assessment is correct that the cost impact of this 
rule is not significant, and any impact is predominantly positive.

V. 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 a significant regulatory action and, therefore, was subject to 
review under section 6(b) of E.O. 12866, Regulatory Planning and 
Review, dated September 30, 1993.

VI. Congressional Review Act

    As required by the Congressional Review Act (5 U.S.C. 801-808) 
before an interim or final rule takes effect, DoD will submit a copy of 
the interim or final rule with the form, Submission of Federal Rules 
under the Congressional Review Act, to the U.S. Senate, the U.S. House 
of Representatives, and the Comptroller General of the United States. A 
major rule under the Congressional Review Act cannot take effect until 
60 days after it is published in the Federal Register. The Office of 
Information and Regulatory Affairs has determined that this rule is not 
a major rule as defined by 5 U.S.C. 804.

VII. Regulatory Flexibility Act

    A final regulatory flexibility analysis (FRFA) has been prepared 
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 
The FRFA is summarized as follows:
    This rule is required to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to implement Executive Order (E.O.) 
13881, Maximizing Use of American-Made Goods, Products, and Materials, 
and also to make conforming changes to the applicable clauses as a 
result of implementation of the E.O. in the Federal Acquisition 
Regulation (FAR).
    The objective of this rule is to strengthen domestic preferences 
under the Buy American statute, as required by E.O. 13881, by changing 
how a domestic end product and domestic construction material are 
defined.
    There were no significant issues raised by the public comments in 
response to the initial regulatory flexibility analysis.
    Data was obtained from the Federal Procurement Data System (FPDS) 
for new awards valued over the micro-purchase threshold in fiscal year 
(FY) 2017, FY 2018, and FY 2019 that had a foreign place of performance 
and were for construction. DoD awarded an average of 3,222 construction 
contracts with a foreign place of performance per year during FY 2017 
through FY 2019. Of those construction contracts, approximately 65 were 
awarded to 32 unique small entities per year.
    Data was also obtained from FPDS for FY 2017 through FY 2019 for 
new awards valued over the micro-purchase threshold for supplies made 
in the United States. DoD awarded an average of 332,607 supply 
contracts per year during FY 2017 through FY 2019. Of those supply 
contracts, approximately 154,422 supply contracts were awarded to 
13,480 unique small entities per year.
    The rule will strengthen domestic preferences under the Buy 
American statute and provide small businesses the opportunity and 
incentive to deliver U.S. manufactured products from domestic 
suppliers. It is expected that this rule will benefit U.S. small 
business manufacturers, including those of iron or steel. Small 
business manufacturers who do not already meet the increased domestic 
content requirements of this proposed rule may need to adjust their 
supply chains. DoD does not have data on how many small business 
manufacturers may decide to make such adjustments.
    This rule does not include any new reporting, recordkeeping, or 
other compliance requirements for small businesses, other than to 
increase the percentages used in the domestic content test applied to 
offers of manufactured end products.
    There are no known significant alternative approaches to the rule 
that would meet the requirements of E.O. 13881.

VIII. Paperwork Reduction Act

    The rule does not contain any 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).

[[Page 37443]]

List of Subjects in 48 CFR Parts 225 and 252

    Government procurement.

Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 225 and 252 are amended as follows:

0
1. The authority citation for parts 225 and 252 continues to read as 
follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

PART 225--FOREIGN ACQUISITION

0
2. Amend section 225.003 by--
0
a. Revising the definition of ``Domestic end product'';
0
b. Removing the definition ``Qualifying country component and 
qualifying country end product''; and
0
c. Adding definitions for ``Qualifying country component'' and 
``Qualifying country end product'' in alphabetical order.
    The revision and additions read as follows:


225.003   Definitions.

* * * * *
    Domestic end product means--
    (1) For an end product that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured end product 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 55 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). Components of unknown origin 
are treated as foreign. 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 commercially available off-the-shelf 
(COTS) item; or
    (2) For an end product that consists wholly or predominantly of 
iron or steel or a combination of both, an end product manufactured in 
the United States, if the cost of iron and steel not produced in the 
United States or a qualifying country constitutes less than 5 percent 
of the cost of all the components used in the end product (produced in 
the United States or a qualifying country means that all manufacturing 
processes of the iron or steel must take place in the United States or 
a qualifying country, except metallurgical processes involving 
refinement of steel additives). The cost of iron and steel not produced 
in the United States or a qualifying country includes but is not 
limited to the cost of iron or steel mill products (such as bar, 
billet, slab, wire, plate, or sheet), castings, or forgings, not 
produced in the United States or a qualifying country, utilized in the 
manufacture of the end product and a good faith estimate of the cost of 
all iron or steel components not produced in the United States or a 
qualifying country, excluding COTS fasteners. Iron or steel components 
of unknown origin are treated as foreign. If the end product contains 
multiple components, the cost of all the materials used in such end 
product is calculated in accordance with the explanation of cost of 
components in paragraph (1)(ii)(A) of this definition.
* * * * *
    Qualifying country component means a component mined, produced, or 
manufactured in a qualifying country.
    Qualifying country end product means--
    (1) An unmanufactured end product mined or produced in a qualifying 
country; or
    (2) An end product manufactured in a qualifying country if--
    (i) The cost of the following types of components exceeds 50 
percent of the cost of all its components:
    (A) Components mined, produced, or manufactured in a qualifying 
country.
    (B) Components mined, produced, or manufactured in the United 
States.
    (C) 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. Components of unknown 
origin are treated as foreign; or
    (ii) The end product is a COTS item.
* * * * *

0
3. Amend section 225.101 by revising paragraph (a)(ii) to read as 
follows:


225.101   General.

    (a) * * *
    (ii)(A) Except for an end product that consists wholly or 
predominantly of iron or steel or a combination of both, the cost of 
its U.S. and qualifying country components exceeds 55 percent of the 
cost of all its components. This test is applied to end products only 
and not to individual components.
    (B) For an end product that consists wholly or predominantly of 
iron or steel or a combination of both, the cost of iron and steel not 
produced in the United States or a qualifying country must constitute 
less than 5 percent of the cost of all the components used in the end 
product. The cost of iron and steel not produced in the United States 
or a qualifying country includes but is not limited to the cost of iron 
or steel mill products (such as bar, billet, slab, wire, plate, or 
sheet), castings, or forgings, not produced in the United States or a 
qualifying country, utilized in the manufacture of the end product and 
a good faith estimate of the cost of all iron or steel components not 
produced in the United States or a qualifying country, excluding 
commercially available off-the-shelf (COTS) fasteners. The domestic 
content test of the Buy American statute has not been waived for 
acquisitions of COTS items in this category, except for COTS fasteners.
* * * * *


225.502   [Amended]

0
4. Amend section 225.502 by--
0
a. In paragraph (c)(ii)(B), removing ``225.504(1)'' and adding ``PGI 
225.504(1)'' in its place;
0
b. In paragraph (c)(ii)(D), removing ``225.504(2)'' and adding ``PGI 
225.504(2)'' in its place;
0
c. In paragraph (c)(ii)(E)(1), removing ``225.504(3)'' and adding ``PGI 
225.504(3)'' in its place; and
0
d. In paragraph (c)(ii)(E)(2), removing ``225.504(4)'' and adding ``PGI 
225.504(4)'' in its place.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
5. Amend section 252.225-7001 by--
0
a. Removing the clause date of ``(MAR 2022)'' and adding ``(JUN 2022)'' 
in its place;
0
b. In paragraph (a)--
0
i. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C),

[[Page 37444]]

and (ii) as paragraphs (1) introductory text, (1)(i), (ii), and (iii), 
and (2), respectively;
0
ii. Revising the definition of ``Domestic end product'';
0
iii. Adding, in alphabetical order, the definition of ``Predominantly 
of iron or steel or a combination of both'';
0
iv. Revising the definition of ``Qualifying country end product''; and
0
v. Adding, in alphabetical order, the definition of ``Steel''; and
0
c. In Alternate I--
0
i. Removing the clause date of ``(MAR 2022)'' and adding ``(JUN 2022)'' 
in its place; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
B. Revising the definition of ``Domestic end product'';
0
C. Adding, in alphabetical order, the definition of ``Predominantly of 
iron or steel or a combination of both'';
0
D. Revising the definition of ``Qualifying country end product'';
0
E. In the definition of ``South Caucasus/Central and South Asian (SC/
CASA) state end product'', redesignating paragraphs (i) and (ii) as 
paragraphs (1) and (2), respectively; and
0
F. Adding, in alphabetical order, the definition of ``Steel''.
    The revisions and additions read as follows:


252.225-7001   Buy American and Balance of Payments Program.

* * * * *
    (a) * * *
    Domestic end product means--
    (1) For an end product that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured end product 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 55 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). Components of unknown origin 
are treated as foreign. 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; or
    (2) For an end product that consists wholly or predominantly of 
iron or steel or a combination of both, an end product manufactured in 
the United States, if the cost of iron and steel not produced in the 
United States or a qualifying country constitutes less than 5 percent 
of the cost of all the components used in the end product (produced in 
the United States or a qualifying country means that all manufacturing 
processes of the iron or steel must take place in the United States or 
a qualifying country, except metallurgical processes involving 
refinement of steel additives). The cost of iron and steel not produced 
in the United States or a qualifying country includes but is not 
limited to the cost of iron or steel mill products (such as bar, 
billet, slab, wire, plate, or sheet), castings, or forgings, not 
produced in the United States or a qualifying country, utilized in the 
manufacture of the end product and a good faith estimate of the cost of 
all iron or steel components not produced in the United States or a 
qualifying country, excluding COTS fasteners. Iron or steel components 
of unknown origin are treated as foreign. If the end product contains 
multiple components, the cost of all the materials used in such end 
product is calculated in accordance with the explanation of cost of 
components in paragraph (1)(ii)(A) of this definition.
* * * * *
    Predominantly of iron or steel or a combination of both means that 
the cost of the iron and steel content exceeds 50 percent of the total 
cost of all its components. The cost of iron and steel is the cost of 
the iron or steel mill products (such as bar, billet, slab, wire, 
plate, or sheet), castings, or forgings utilized in the manufacture of 
the product and a good faith estimate of the cost of iron or steel 
components excluding COTS fasteners.
* * * * *
    Qualifying country end product means--
    (1) An unmanufactured end product mined or produced in a qualifying 
country; or
    (2) An end product manufactured in a qualifying country if--
    (i) The cost of the following types of components exceeds 50 
percent of the cost of all its components:
    (A) Components mined, produced, or manufactured in a qualifying 
country.
    (B) Components mined, produced, or manufactured in the United 
States.
    (C) 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. Components of unknown 
origin are treated as foreign; or
    (ii) The end product is a COTS item.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *

Alternate I. * * *

* * * * *
    (a) * * *
    Domestic end product means--
    (1) For an end product that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured end product 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 55 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). Components of unknown origin 
are treated as foreign. 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 37445]]

    (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; or
    (2) For an end product that consists wholly or predominantly of 
iron or steel or a combination of both, an end product manufactured in 
the United States, if the cost of iron and steel not produced in the 
United States or a qualifying country constitutes less than 5 percent 
of the cost of all the components used in the end product (produced in 
the United States or a qualifying country means that all manufacturing 
processes of the iron or steel must take place in the United States or 
a qualifying country, except metallurgical processes involving 
refinement of steel additives). The cost of iron and steel not produced 
in the United States or a qualifying country includes but is not 
limited to the cost of iron or steel mill products (such as bar, 
billet, slab, wire, plate, or sheet), castings, or forgings, not 
produced in the United States or a qualifying country, utilized in the 
manufacture of the end product and a good faith estimate of the cost of 
all iron or steel components not produced in the United States or a 
qualifying country, excluding COTS fasteners. Iron or steel components 
of unknown origin are treated as foreign. If the end product contains 
multiple components, the cost of all the materials used in such end 
product is calculated in accordance with the explanation of cost of 
components in paragraph (1)(ii)(A) of this definition.
* * * * *
    Predominantly of iron or steel or a combination of both means that 
the cost of the iron and steel content exceeds 50 percent of the total 
cost of all its components. The cost of iron and steel is the cost of 
the iron or steel mill products (such as bar, billet, slab, wire, 
plate, or sheet), castings, or forgings utilized in the manufacture of 
the product and a good faith estimate of the cost of iron or steel 
components excluding COTS fasteners.
* * * * *
    Qualifying country end product means--
    (1) An unmanufactured end product mined or produced in a qualifying 
country; or
    (2) An end product manufactured in a qualifying country if--
    (i) The cost of the following types of components exceeds 50 
percent of the cost of all its components:
    (A) Components mined, produced, or manufactured in a qualifying 
country.
    (B) Components mined, produced, or manufactured in the United 
States.
    (C) 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. Components of unknown 
origin are treated as foreign; or
    (ii) The end product is a COTS item.
* * * * *
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *

0
6. Amend section 252.225-7036 by--
0
a. Removing the clause date of ``(MAR 2022)'' and adding ``(JUN 2022)'' 
in its place.
0
b. In paragraph (a)--
0
i. In the definition of ``Bahrainian end product'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
ii. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
iii. Revising the definition of ``Domestic end product'';
0
iv. In the definition of ``Free Trade Agreement country'', removing the 
semicolon and adding a period in its place;
0
v. In the definitions of ``Free Trade Agreement country end product'', 
``Moroccan end product'', ``Panamanian end product'', and ``Peruvian 
end product'', redesignating paragraphs (i) and (ii) as paragraphs (1) 
and (2), respectively;
0
vi. Adding, in alphabetical order, the definition of ``Predominantly of 
iron or steel or a combination of both'';
0
vii. Revising the definition of ``Qualifying country end product''; and
0
viii. Adding, in alphabetical order, the definition of ``Steel''.
0
c. In Alternate I--
0
i. Removing the clause date of ``(MAR 2022)'' and adding ``(JUN 2022)'' 
in its place; and
0
ii. In paragraph (a)--
0
A. In the definitions of ``Bahrainian end product'' and ``Canadian end 
product'', redesignating paragraphs (i) and (ii) as paragraphs (1) and 
(2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
C. Revising the definition of ``Domestic end product'';
0
D. In the definition of ``Free Trade Agreement country'', removing the 
semicolon and adding a period in its place;
0
E. In the definitions of ``Free Trade Agreement country end product'', 
``Moroccan end product'', ``Panamanian end product'', and ``Peruvian 
end product'', redesignating paragraphs (i) and (ii) as paragraphs (1) 
and (2), respectively;
0
F. Adding, in alphabetical order, the definition of ``Predominantly of 
iron or steel or a combination of both'';
0
G. Revising the definition of ``Qualifying country end product''; and
0
H. Adding, in alphabetical order, the definition of ``Steel''.
0
d. In Alternate II--
0
i. Removing the clause date of ``(MAR 2022)'' and adding ``(JUN 2022)'' 
in its place; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Bahrainian end product'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
C. Revising the definition of ``Domestic end product'';
0
D. In the definition of ``Free Trade Agreement country'', removing the 
semicolon and adding a period in its place;
0
E. In the definitions of ``Free Trade Agreement country end product'', 
``Moroccan end product'', ``Panamanian end product'', and ``Peruvian 
end product'', redesignating paragraphs (i) and (ii) as paragraphs (1) 
and (2), respectively;
0
F. Adding, in alphabetical order, the definition of ``Predominantly of 
iron or steel or a combination of both'';
0
G. Revising the definition of ``Qualifying country end product'';
0
H. In the definition of ``South Caucasus/Central and South Asian (SC/
CASA) state end product'', redesignating paragraphs (i) and (ii) as 
paragraphs (1) and (2), respectively; and
0
I. Adding, in alphabetical order, the definition of ``Steel''.
0
e. In Alternate III--
0
i. Removing the clause date of ``(MAR 2022)'' and adding ``(JUN 2022)'' 
in its place; and
0
ii. In paragraph (a)--

[[Page 37446]]

0
A. In the definitions of ``Bahrainian end product'' and ``Canadian end 
product'', redesignating paragraphs (i) and (ii) as paragraphs (1) and 
(2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
C. Revising the definition of ``Domestic end product'';
0
D. In the definition of ``Free Trade Agreement country'', removing the 
semicolon and adding a period in its place;
0
E. In the definitions of ``Free Trade Agreement country end product'', 
``Moroccan end product'', ``Panamanian end product'', and ``Peruvian 
end product'', redesignating paragraphs (i) and (ii) as paragraphs (1) 
and (2), respectively;
0
F. Adding, in alphabetical order, the definition of ``Predominantly of 
iron or steel or a combination of both'';
0
G. Revising the definition of ``Qualifying country end product'';
0
H. In the definition of ``South Caucasus/Central and South Asian (SC/
CASA) state end product'', redesignating paragraphs (i) and (ii) as 
paragraphs (1) and (2), respectively; and
0
I. Adding, in alphabetical order, the definition of ``Steel''.
0
f. In Alternate IV--
0
i. Removing the clause date of ``(MAR 2022)'' and adding ``(JUN 2022)'' 
in its place; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Bahrainian end product'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
C. Revising the definition of ``Domestic end product'';
0
D. In the definition of ``Free Trade Agreement country'', removing the 
semicolon and adding a period in its place;
0
E. In definitions of ``Free Trade Agreement country end product'', 
``Korean end product'', ``Moroccan end product'', ``Panamanian end 
product'', and ``Peruvian end product'', redesignating paragraphs (i) 
and (ii) as paragraphs (1) and (2), respectively;
0
F. Adding, in alphabetical order, the definition of ``Predominantly of 
iron or steel or a combination of both'';
0
G. Revising the definition of ``Qualifying country end product''; and
0
H. Adding, in alphabetical order, the definition of ``Steel''.
0
g. In Alternate V--
0
i. Removing the clause date of ``(MAR 2022)'' and adding ``(JUN 2022)'' 
in its place; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Bahrainian end product'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
C. Revising the definition of ``Domestic end product'';
0
D. In the definition of ``Free Trade Agreement country'', removing the 
semicolon and adding a period in its place;
0
E. In the definitions of ``Free Trade Agreement country end product'', 
``Korean end product'', ``Moroccan end product'', ``Panamanian end 
product'', and ``Peruvian end product'', redesignating paragraphs (i) 
and (ii) as paragraphs (1) and (2), respectively;
0
F. Adding, in alphabetical order, the definition of ``Predominantly of 
iron or steel or a combination of both'';
0
G. Revising the definition of ``Qualifying country end product'';
0
H. In the definition of ``South Caucasus/Central and South Asian (SC/
CASA) state end product'', redesignating paragraphs (i) and (ii) as 
paragraphs (1) and (2), respectively; and
0
I. Adding, in alphabetical order, the definition of ``Steel''.
    The revisions and additions read as follows:


252.225-7036   Buy American--Free Trade Agreements--Balance of Payments 
Program.

* * * * *
    (a) * * *
    Domestic end product means--
    (1) For an end product that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured end product 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 55 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). Components of unknown origin 
are treated as foreign. 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; or
    (2) For an end product that consists wholly or predominantly of 
iron or steel or a combination of both, an end product manufactured in 
the United States, if the cost of iron and steel not produced in the 
United States or a qualifying country constitutes less than 5 percent 
of the cost of all the components used in the end product (produced in 
the United States or a qualifying country means that all manufacturing 
processes of the iron or steel must take place in the United States or 
a qualifying country, except metallurgical processes involving 
refinement of steel additives). The cost of iron and steel not produced 
in the United States or a qualifying country includes but is not 
limited to the cost of iron or steel mill products (such as bar, 
billet, slab, wire, plate, or sheet), castings, or forgings, not 
produced in the United States or a qualifying country, utilized in the 
manufacture of the end product and a good faith estimate of the cost of 
all iron or steel components not produced in the United States or a 
qualifying country, excluding COTS fasteners. Iron or steel components 
of unknown origin are treated as foreign. If the end product contains 
multiple components, the cost of all the materials used in such end 
product is calculated in accordance with the explanation of cost of 
components in paragraph (1)(ii)(A) of this definition.
* * * * *
    Predominantly of iron or steel or a combination of both means that 
the cost of the iron and steel content exceeds 50 percent of the total 
cost of all its components. The cost of iron and steel is the cost of 
the iron or steel mill

[[Page 37447]]

products (such as bar, billet, slab, wire, plate, or sheet), castings, 
or forgings utilized in the manufacture of the product and a good faith 
estimate of the cost of iron or steel components excluding COTS 
fasteners.
* * * * *
    Qualifying country end product means--
    (1) An unmanufactured end product mined or produced in a qualifying 
country; or
    (2) An end product manufactured in a qualifying country if--
    (i) The cost of the following types of components exceeds 50 
percent of the cost of all its components:
    (A) Components mined, produced, or manufactured in a qualifying 
country.
    (B) Components mined, produced, or manufactured in the United 
States.
    (C) 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. Components of unknown 
origin are treated as foreign; or
    (ii) The end product is a COTS item.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *

Alternate I. * * *

    (a) * * *
    Domestic end product means--
    (1) For an end product that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured end product 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 55 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). Components of unknown origin 
are treated as foreign. 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
    (C) The end product is a COTS item; or
    (2) For an end product that consists wholly or predominantly of 
iron or steel or a combination of both, an end product manufactured in 
the United States, if the cost of iron and steel not produced in the 
United States or a qualifying country constitutes less than 5 percent 
of the cost of all the components used in the end product (produced in 
the United States or a qualifying country means that all manufacturing 
processes of the iron or steel must take place in the United States or 
a qualifying country, except metallurgical processes involving 
refinement of steel additives). The cost of iron and steel not produced 
in the United States or a qualifying country includes but is not 
limited to the cost of iron or steel mill products (such as bar, 
billet, slab, wire, plate, or sheet), castings, or forgings, not 
produced in the United States or a qualifying country, utilized in the 
manufacture of the end product and a good faith estimate of the cost of 
all iron or steel components not produced in the United States or a 
qualifying country, excluding COTS fasteners. Iron or steel components 
of unknown origin are treated as foreign. If the end product contains 
multiple components, the cost of all the materials used in such end 
product is calculated in accordance with the explanation of cost of 
components in paragraph (1)(ii)(A) of this definition.
* * * * *
    Predominantly of iron or steel or a combination of both means that 
the cost of the iron and steel content exceeds 50 percent of the total 
cost of all its components. The cost of iron and steel is the cost of 
the iron or steel mill products (such as bar, billet, slab, wire, 
plate, or sheet), castings, or forgings utilized in the manufacture of 
the product and a good faith estimate of the cost of iron or steel 
components excluding COTS fasteners.
* * * * *
    Qualifying country end product means--
    (1) An unmanufactured end product mined or produced in a qualifying 
country; or
    (2) An end product manufactured in a qualifying country if--
    (i) The cost of the following types of components exceeds 50 
percent of the cost of all its components:
    (A) Components mined, produced, or manufactured in a qualifying 
country.
    (B) Components mined, produced, or manufactured in the United 
States.
    (C) 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. Components of unknown 
origin are treated as foreign; or
    (ii) The end product is a COTS item.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *

Alternate II. * * *

    (a) * * *
    Domestic end product means--
    (1) For an end product that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured end product 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 55 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). Components of unknown origin 
are treated as foreign. 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; or
    (2) For an end product that consists wholly or predominantly of 
iron or steel or a combination of both, an end product manufactured in 
the United

[[Page 37448]]

States, if the cost of iron and steel not produced in the United States 
or a qualifying country constitutes less than 5 percent of the cost of 
all the components used in the end product (produced in the United 
States or a qualifying country means that all manufacturing processes 
of the iron or steel must take place in the United States or a 
qualifying country, except metallurgical processes involving refinement 
of steel additives). The cost of iron and steel not produced in the 
United States or a qualifying country includes but is not limited to 
the cost of iron or steel mill products (such as bar, billet, slab, 
wire, plate, or sheet), castings, or forgings, not produced in the 
United States or a qualifying country, utilized in the manufacture of 
the end product and a good faith estimate of the cost of all iron or 
steel components not produced in the United States or a qualifying 
country, excluding COTS fasteners. Iron or steel components of unknown 
origin are treated as foreign. If the end product contains multiple 
components, the cost of all the materials used in such end product is 
calculated in accordance with the explanation of cost of components in 
paragraph (1)(ii)(A) of this definition.
* * * * *
    Predominantly of iron or steel or a combination of both means that 
the cost of the iron and steel content exceeds 50 percent of the total 
cost of all its components. The cost of iron and steel is the cost of 
the iron or steel mill products (such as bar, billet, slab, wire, 
plate, or sheet), castings, or forgings utilized in the manufacture of 
the product and a good faith estimate of the cost of iron or steel 
components excluding COTS fasteners.
* * * * *
    Qualifying country end product means--
    (1) An unmanufactured end product mined or produced in a qualifying 
country; or
    (2) An end product manufactured in a qualifying country if--
    (i) The cost of the following types of components exceeds 50 
percent of the cost of all its components:
    (A) Components mined, produced, or manufactured in a qualifying 
country.
    (B) Components mined, produced, or manufactured in the United 
States.
    (C) 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. Components of unknown 
origin are treated as foreign; or
    (ii) The end product is a COTS item.
* * * * *
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *

Alternate III. * * *

    (a) * * *
    Domestic end product means--
    (1) For an end product that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured end product 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 55 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). Components of unknown origin 
are treated as foreign. 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; or
    (2) For an end product that consists wholly or predominantly of 
iron or steel or a combination of both, an end product manufactured in 
the United States, if the cost of iron and steel not produced in the 
United States or a qualifying country constitutes less than 5 percent 
of the cost of all the components used in the end product (produced in 
the United States or a qualifying country means that all manufacturing 
processes of the iron and steel must take place in the United States or 
a qualifying country, except metallurgical processes involving 
refinement of steel additives). The cost of iron and steel not produced 
in the United States or a qualifying country includes but is not 
limited to the cost of iron or steel mill products (such as bar, 
billet, slab, wire, plate, or sheet), castings, or forgings, not 
produced in the United States or a qualifying country, utilized in the 
manufacture of the end product and a good faith estimate of the cost of 
all iron or steel components not produced in the United States or a 
qualifying country, excluding COTS fasteners. Iron or steel components 
of unknown origin are treated as foreign. If the end product contains 
multiple components, the cost of all the materials used in such end 
product is calculated in accordance with the explanation of cost of 
components in paragraph (1)(ii)(A) of this definition.
* * * * *
    Predominantly of iron or steel or a combination of both means that 
the cost of the iron and steel content exceeds 50 percent of the total 
cost of all its components. The cost of iron and steel is the cost of 
the iron or steel mill products (such as bar, billet, slab, wire, 
plate, or sheet), castings, or forgings utilized in the manufacture of 
the product and a good faith estimate of the cost of iron or steel 
components excluding COTS fasteners.
* * * * *
    Qualifying country end product means--
    (1) An unmanufactured end product mined or produced in a qualifying 
country; or
    (2) An end product manufactured in a qualifying country if--
    (i) The cost of the following types of components exceeds 50 
percent of the cost of all its components:
    (A) Components mined, produced, or manufactured in a qualifying 
country.
    (B) Components mined, produced, or manufactured in the United 
States.
    (C) 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. Components of unknown 
origin are treated as foreign; or
    (ii) The end product is a COTS item.
* * * * *
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *

Alternate IV. * * *

    (a) * * *

[[Page 37449]]

    Domestic end product means--
    (1) For an end product that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured end product 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 55 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). Components of unknown origin 
are treated as foreign. 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; or
    (2) For an end product that consists wholly or predominantly of 
iron or steel or a combination of both, an end product manufactured in 
the United States, if the cost of iron and steel not produced in the 
United States or a qualifying country constitutes less than 5 percent 
of the cost of all the components used in the end product (produced in 
the United States or a qualifying country means that all manufacturing 
processes of the iron or steel must take place in the United States or 
a qualifying country, except metallurgical processes involving 
refinement of steel additives). The cost of iron and steel not produced 
in the United States or a qualifying country includes but is not 
limited to the cost of iron or steel mill products (such as bar, 
billet, slab, wire, plate, or sheet), castings, or forgings, not 
produced in the United States or a qualifying country, utilized in the 
manufacture of the end product and a good faith estimate of the cost of 
all iron or steel components not produced in the United States or a 
qualifying country, excluding COTS fasteners. Iron or steel components 
of unknown origin are treated as foreign. If the end product contains 
multiple components, the cost of all the materials used in such end 
product is calculated in accordance with the explanation of cost of 
components in paragraph (1)(ii)(A) of this definition.
* * * * *
    Predominantly of iron or steel or a combination of both means that 
the cost of the iron and steel content exceeds 50 percent of the total 
cost of all its components. The cost of iron and steel is the cost of 
the iron or steel mill products (such as bar, billet, slab, wire, 
plate, or sheet), castings, or forgings utilized in the manufacture of 
the product and a good faith estimate of the cost of iron or steel 
components excluding COTS fasteners.
* * * * *
    Qualifying country end product means--
    (1) An unmanufactured end product mined or produced in a qualifying 
country; or
    (2) An end product manufactured in a qualifying country if--
    (i) The cost of the following types of components exceeds 50 
percent of the cost of all its components:
    (A) Components mined, produced, or manufactured in a qualifying 
country.
    (B) Components mined, produced, or manufactured in the United 
States.
    (C) 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. Components of unknown 
origin are treated as foreign; or
    (ii) The end product is a COTS item.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *

Alternate V. * * *

    (a) * * *
    Domestic end product means--
    (1) For an end product that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured end product 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 55 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). Components of unknown origin 
are treated as foreign. 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; or
    (2) For an end product that consists wholly or predominantly of 
iron or steel or a combination of both, an end product manufactured in 
the United States, if the cost of iron and steel not produced in the 
United States or a qualifying country constitutes less than 5 percent 
of the cost of all the components used in the end product (produced in 
the United States or a qualifying country means that all manufacturing 
processes of the iron or steel must take place in the United States or 
a qualifying country, except metallurgical processes involving 
refinement of steel additives). The cost of iron and steel not produced 
in the United States or a qualifying country includes but is not 
limited to the cost of iron or steel mill products (such as bar, 
billet, slab, wire, plate, or sheet), castings, or forgings, not 
produced in the United States or a qualifying country, utilized in the 
manufacture of the end product and a good faith estimate of the cost of 
all iron or steel components not produced in the United States or a 
qualifying country, excluding COTS fasteners. Iron or steel components 
of unknown origin are treated as foreign. If the end product contains 
multiple components, the cost of all the materials used in such end 
product is calculated in accordance with the explanation of cost of 
components in paragraph (1)(ii)(A) of this definition.
* * * * *
    Predominantly of iron or steel or a combination of both means that 
the cost of the iron and steel content exceeds 50 percent of the total 
cost of all its

[[Page 37450]]

components. The cost of iron and steel is the cost of the iron or steel 
mill products (such as bar, billet, slab, wire, plate, or sheet), 
castings, or forgings utilized in the manufacture of the product and a 
good faith estimate of the cost of iron or steel components excluding 
COTS fasteners.
* * * * *
    Qualifying country end product means--
    (1) An unmanufactured end product mined or produced in a qualifying 
country; or
    (2) An end product manufactured in a qualifying country if--
    (i) The cost of the following types of components exceeds 50 
percent of the cost of all its components:
    (A) Components mined, produced, or manufactured in a qualifying 
country.
    (B) Components mined, produced, or manufactured in the United 
States.
    (C) 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. Components of unknown 
origin are treated as foreign; or
    (ii) The end product is a COTS item.
* * * * *
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *
0
7. Amend section 252.225-7044 by--
0
a. Removing the clause date of ``(NOV 2014)'' and adding ``(JUN 2022)'' 
in its place.
0
b. In paragraph (a)--
0
i. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
ii. In the definition of ``Cost of components'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
iii. Revising the definition of ``Domestic construction material''; and
0
iv. Adding, in alphabetical order, the definitions of ``Predominantly 
of iron or steel or a combination of both'' and ``Steel''.
0
c. In Alternate I--
0
i. Removing the clause date of ``(NOV 2014)'' and adding ``(JUN 2022)'' 
in its place; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', removing the quotation mark, redesignating paragraphs (i) 
introductory text, (i)(A), (B), and (C), and (ii) as paragraphs (1) 
introductory text, (1)(i), (ii), and (iii), and (2), respectively;
0
B. In the definition of ``Cost of components'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
C. Revising the definition of ``Domestic construction material'';
0
D. Adding, in alphabetical order, the definition of ``Predominantly of 
iron or steel or a combination of both'';
0
E. In the definition of ``SC/CASA state construction material'', 
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2), 
respectively; and
0
F. Adding, in alphabetical order, the definition of ``Steel''.
    The revisions and additions read as follows:


252.225-7044   Balance of Payments Program--Construction Material.

* * * * *
    (a) * * *
    Domestic construction material means--
    (1) For construction material that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (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 55 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. 
Components of unknown origin are treated as foreign; or
    (B) The construction material is a COTS item; or
    (2) For construction material that consists wholly or predominantly 
of iron or steel or a combination of both, a construction material 
manufactured in the United States if the cost of iron and steel not 
produced in the United States (excluding fasteners) as estimated in 
good faith by the contractor, constitutes less than 5 percent of the 
cost of all the components used in such construction material (produced 
in the United States means that all manufacturing processes of the iron 
or steel must take place in the United States, except metallurgical 
processes involving refinement of steel additives). The cost of iron 
and steel not produced in the United States includes but is not limited 
to the cost of iron or steel mill products (such as bar, billet, slab, 
wire, plate, or sheet), castings, or forgings, not produced in the 
United States, utilized in the manufacture of the end product and a 
good faith estimate of the cost of all iron or steel components not 
produced in the United States, excluding COTS fasteners. Iron or steel 
components of unknown origin are treated as foreign. If the 
construction material contains multiple components, the cost of all the 
materials used in such construction material is calculated in 
accordance with the definition of ``cost of components'' in this 
clause.
    Predominantly of iron or steel or a combination of both means that 
the cost of the iron and steel content exceeds 50 percent of the total 
cost of all its components. The cost of iron and steel is the cost of 
the iron or steel mill products (such as bar, billet, slab, wire, 
plate, or sheet), castings, or forgings utilized in the manufacture of 
the product and a good faith estimate of the cost of iron or steel 
components excluding COTS fasteners.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *

Alternate I. * * *

    (a) * * *
    Domestic construction material means--
    (1) For construction material that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (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 55 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. 
Components of unknown origin are treated as foreign; or
    (B) The construction material is a COTS item; or
    (2) For construction material that consists wholly or predominantly 
of iron or steel or a combination of both, a construction material 
manufactured in the United States if the cost of iron and steel not 
produced in the United States (excluding fasteners) as estimated in 
good faith by the contractor, constitutes less than 5 percent of the 
cost of all the components used in such construction material (produced 
in the United States means that all manufacturing processes of the iron 
or steel must take place in

[[Page 37451]]

the United States, except metallurgical processes involving refinement 
of steel additives). The cost of iron and steel not produced in the 
United States includes but is not limited to the cost of iron or steel 
mill products (such as bar, billet, slab, wire, plate, or sheet), 
castings, or forgings, not produced in the United States, utilized in 
the manufacture of the construction material and a good faith estimate 
of the cost of all iron or steel components not produced in the United 
States, excluding COTS fasteners. Iron or steel components of unknown 
origin are treated as foreign. If the construction material contains 
multiple components, the cost of all the materials used in such 
construction material is calculated in accordance with the definition 
of ``cost of components'' in this clause.
    Predominantly of iron or steel or a combination of both means that 
the cost of the iron and steel content exceeds 50 percent of the total 
cost of all its components. The cost of iron and steel is the cost of 
the iron or steel mill products (such as bar, billet, slab, wire, 
plate, or sheet), castings, or forgings utilized in the manufacture of 
the product and a good faith estimate of the cost of iron or steel 
components excluding COTS fasteners.
* * * * *
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *

0
8. Amend section 252.225-7045 by--
0
a. Removing the clause date of ``(AUG 2019)'' and adding ``(JUN 2022)'' 
in its place.
0
b. In paragraph (a)--
0
i. In the definition of ``Caribbean Basin country construction 
material'', redesignating paragraphs (i) and (ii) as paragraphs (1) and 
(2), respectively;
0
ii. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
iii. In the definition of ``Cost of components'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
iv. In the definition of ``Designated country'', redesignating 
paragraphs (i), (ii), (iii), and (iv) as paragraphs (1), (2), (3), and 
(4), respectively;
0
v. Revising the definition of ``Domestic construction material'';
0
vi. In the definitions of ``Free Trade Agreement country construction 
material'' and ``Least developed country construction material'', 
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2), 
respectively;
0
vii. Adding, in alphabetical order, the definitions of ``Predominantly 
of iron or steel or a combination of both'' and ``Steel''; and
0
viii. In the definition of ``WTO GPA country construction material'', 
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2), 
respectively.
0
c. In Alternate I--
0
i. Removing the clause date of ``(AUG 2019)'' and adding ``(JUN 2022)'' 
in its place; and
0
ii. In paragraph (a)--
0
A. In the definitions of ``Bahrainian or Mexican construction 
material'' and ``Caribbean Basin country construction material'', 
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2), 
respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
C. In the definition of ``Cost of components'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
D. In the definition of ``Designated country'', redesignating 
paragraphs (i), (ii), (iii), and (iv) as paragraphs (1), (2), (3), and 
(4), respectively;
0
E. Revising the definition of ``Domestic construction material'';
0
F. In the definition of ``Free Trade Agreement country construction 
material'' and ``Least developed country construction material'', 
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2), 
respectively;
0
G. Adding, in alphabetical order, the definitions of ``Predominantly of 
iron or steel or a combination of both'' and ``Steel''; and
0
H. In the definition of ``WTO GPA country construction material'', 
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2), 
respectively.
0
d. In Alternate II--
0
i. Removing the clause date of ``(AUG 2019)'' and adding ``(JUN 2022)'' 
in its place; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Caribbean Basin country construction 
material'', redesignating paragraphs (i) and (ii) as paragraphs (1) and 
(2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
C. In the definition of ``Cost of components'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
D. In the definition of ``Designated country'', redesignating 
paragraphs (i), (ii), (iii), and (iv) as paragraphs (1), (2), (3), and 
(4), respectively;
0
E. Revising the definition of ``Domestic construction material'';
0
F. In the definitions of ``Free Trade Agreement country construction 
material'' and ``Least developed country construction material'', 
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2), 
respectively;
0
G. Adding, in alphabetical order, the definition of ``Predominantly of 
iron or steel or a combination of both'';
0
H. In the definition of ``SC/CASA state construction material'', 
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2), 
respectively;
0
I. Adding, in alphabetical order, the definition of ``Steel''; and
0
J. In the definition of ``WTO GPA country construction material'', 
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2), 
respectively.
0
e. In Alternate III--
0
i. Removing the clause date of ``(AUG 2019)'' and adding ``(JUN 2022)'' 
in its place; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Caribbean Basin country construction 
material'', redesignating paragraphs (i) and (ii) as paragraphs (1) and 
(2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS) 
item'', redesignating paragraphs (i) introductory text, (i)(A), (B), 
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii), 
and (iii), and (2), respectively;
0
C. In the definition of ``Cost of components'', redesignating 
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
D. In the definition of ``Designated country'', redesignating 
paragraphs (i), (ii), (iii), and (iv) as paragraphs (1), (2), (3), and 
(4), respectively;
0
E. Revising the definition of ``Domestic construction material'';
0
F. In the definitions of ``Free Trade Agreement country construction 
material'' and ``Least developed country construction material'', 
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2), 
respectively;
0
G. Adding, in alphabetical order, the definition of ``Predominantly of 
iron or steel or a combination of both'';
0
H. In the definition of ``SC/CASA state construction material'', 
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2), 
respectively;
0
I. Adding, in alphabetical order, the definition of ``Steel''; and

[[Page 37452]]

0
J. In the definition of ``WTO GPA country construction material'', 
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2), 
respectively.
    The revisions and additions read as follows:


252.225-7045   Balance of Payments Program--Construction Material Under 
Trade Agreements.

* * * * *
    (a) * * *
    Domestic construction material means--
    (1) For construction material that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (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 55 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. 
Components of unknown origin are treated as foreign; or
    (B) The construction material is a COTS item; or
    (2) For construction material that consists wholly or predominantly 
of iron or steel or a combination of both, a construction material 
manufactured in the United States if the cost of iron and steel not 
produced in the United States (excluding fasteners) as estimated in 
good faith by the contractor, constitutes less than 5 percent of the 
cost of all the components used in such construction material (produced 
in the United States means that all manufacturing processes of the iron 
or steel must take place in the United States, except metallurgical 
processes involving refinement of steel additives). The cost of iron 
and steel not produced in the United States includes but is not limited 
to the cost of iron or steel mill products (such as bar, billet, slab, 
wire, plate, or sheet), castings, or forgings, not produced in the 
United States, utilized in the manufacture of the construction material 
and a good faith estimate of the cost of all iron or steel components 
not produced in the United States, excluding COTS fasteners. Iron or 
steel components of unknown origin are treated as foreign. If the 
construction material contains multiple components, the cost of all the 
materials used in such construction material is calculated in 
accordance with the definition of ``cost of components'' in this 
clause.
* * * * *
    Predominantly of iron or steel or a combination of both means that 
the cost of the iron and steel content exceeds 50 percent of the total 
cost of all its components. The cost of iron and steel is the cost of 
the iron or steel mill products (such as bar, billet, slab, wire, 
plate, or sheet), castings, or forgings utilized in the manufacture of 
the product and a good faith estimate of the cost of iron or steel 
components excluding COTS fasteners.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *

Alternate I. * * *

    (a) * * *
    Domestic construction material means--
    (1) For construction material that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (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 55 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. 
Components of unknown origin are treated as foreign; or
    (B) The construction material is a COTS item; or
    (2) For construction material that consists wholly or predominantly 
of iron or steel or a combination of both, a construction material 
manufactured in the United States if the cost of iron and steel not 
produced in the United States (excluding fasteners) as estimated in 
good faith by the contractor, constitutes less than 5 percent of the 
cost of all the components used in such construction material (produced 
in the United States means that all manufacturing processes of the iron 
or steel must take place in the United States, except metallurgical 
processes involving refinement of steel additives). The cost of iron 
and steel not produced in the United States includes but is not limited 
to the cost of iron or steel mill products (such as bar, billet, slab, 
wire, plate, or sheet), castings, or forgings, not produced in the 
United States, utilized in the manufacture of the construction material 
and a good faith estimate of the cost of all iron or steel components 
not produced in the United States, excluding COTS fasteners. Iron or 
steel components of unknown origin are treated as foreign. If the 
construction material contains multiple components, the cost of all the 
materials used in such construction material is calculated in 
accordance with the definition of ``cost of components'' in this 
clause.
* * * * *
    Predominantly of iron or steel or a combination of both means that 
the cost of the iron and steel content exceeds 50 percent of the total 
cost of all its components. The cost of iron and steel is the cost of 
the iron or steel mill products (such as bar, billet, slab, wire, 
plate, or sheet), castings, or forgings utilized in the manufacture of 
the product and a good faith estimate of the cost of iron or steel 
components excluding COTS fasteners.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *

Alternate II. * * *

    (a) * * *
    Domestic construction material means--
    (1) For construction material that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (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 55 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. 
Components of unknown origin are treated as foreign; or
    (B) The construction material is a COTS item; or
    (2) For construction material that consists wholly or predominantly 
of iron or steel or a combination of both, a construction material 
manufactured in the United States if the cost of iron and steel not 
produced in the United States (excluding fasteners) as estimated in 
good faith by the contractor, constitutes less than 5 percent of the 
cost of all the components used in such construction material (produced 
in the United States means that all manufacturing processes of the iron 
or steel must take place in

[[Page 37453]]

the United States, except metallurgical processes involving refinement 
of steel additives). The cost of iron and steel not produced in the 
United States includes but is not limited to the cost of iron or steel 
mill products (such as bar, billet, slab, wire, plate, or sheet), 
castings, or forgings, not produced in the United States, utilized in 
the manufacture of the construction material and a good faith estimate 
of the cost of all iron or steel components not produced in the United 
States, excluding COTS fasteners. Iron or steel components of unknown 
origin are treated as foreign. If the construction material contains 
multiple components, the cost of all the materials used in such 
construction material is calculated in accordance with the definition 
of ``cost of components'' in this clause.
* * * * *
    Predominantly of iron or steel or a combination of both means that 
the cost of the iron and steel content exceeds 50 percent of the total 
cost of all its components. The cost of iron and steel is the cost of 
the iron or steel mill products (such as bar, billet, slab, wire, 
plate, or sheet), castings, or forgings utilized in the manufacture of 
the product and a good faith estimate of the cost of iron or steel 
components excluding COTS fasteners.
* * * * *
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *

Alternate III. * * *

    (a) * * *
    Domestic construction material means--
    (1) For construction material that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (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 55 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. 
Components of unknown origin are treated as foreign; or
    (B) The construction material is a COTS item; or
    (2) For construction material that consists wholly or predominantly 
of iron or steel or a combination of both, a construction material 
manufactured in the United States if the cost of iron and steel not 
produced in the United States (excluding fasteners) as estimated in 
good faith by the contractor, constitutes less than 5 percent of the 
cost of all the components used in such construction material (produced 
in the United States means that all manufacturing processes of the iron 
or steel must take place in the United States, except metallurgical 
processes involving refinement of steel additives). The cost of iron 
and steel not produced in the United States includes but is not limited 
to the cost of iron or steel mill products (such as bar, billet, slab, 
wire, plate, or sheet), castings, or forgings, not produced in the 
United States, utilized in the manufacture of the construction material 
and a good faith estimate of the cost of iron or steel components not 
produced in the United States, excluding COTS fasteners. Iron or steel 
components of unknown origin are treated as foreign. If the 
construction material contains multiple components, the cost of all the 
materials used in such construction material is calculated in 
accordance with the definition of ``cost of components'' in this 
clause.
* * * * *
    Predominantly of iron or steel or a combination of both means that 
the cost of the iron and steel content exceeds 50 percent of the total 
cost of all its components. The cost of iron and steel is the cost of 
the iron or steel mill products (such as bar, billet, slab, wire, 
plate, or sheet), castings, or forgings utilized in the manufacture of 
the product and a good faith estimate of the cost of iron or steel 
components excluding COTS fasteners.
* * * * *
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
* * * * *
[FR Doc. 2022-13373 Filed 6-22-22; 8:45 am]
BILLING CODE 5001-06-P