[Federal Register Volume 88, Number 111 (Friday, June 9, 2023)]
[Proposed Rules]
[Pages 37942-37973]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-12019]
[[Page 37941]]
Vol. 88
Friday,
No. 111
June 9, 2023
Part II
Department of Defense
-----------------------------------------------------------------------
Defense Acquisition Regulations System
-----------------------------------------------------------------------
48 CFR Parts 213, 225, and 252
Defense Federal Acquisition Regulation Supplement: DFARS Buy American
Act Requirements (DFARS Case 2022-D019); Proposed Rule
Federal Register / Vol. 88, No. 111 / Friday, June 9, 2023 / Proposed
Rules
[[Page 37942]]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 213, 225, and 252
[Docket DARS-2023-0024]
RIN 0750-AL74
Defense Federal Acquisition Regulation Supplement: DFARS Buy
American Act Requirements (DFARS Case 2022-D019)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to supplement the Federal Acquisition
Regulation implementation of an Executive order addressing domestic
preferences in DoD procurement.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before August 8, 2023, to be considered
in the formation of a final rule.
ADDRESSES: Submit comments identified by DFARS Case 2022-D019, using
any of the following methods:
[cir] Federal eRulemaking Portal: https://www.regulations.gov.
Search for ``DFARS Case 2022-D019.'' Select ``Comment'' and follow the
instructions to submit a comment. Please include your name, company
name (if any), and ``DFARS Case 2022-D019'' on any attached document.
[cir] Email: [email protected]. Include DFARS Case 2022-D019 in
the subject line of the message.
Comments received generally will be posted without change to
https://www.regulations.gov, including any personal information
provided. To confirm receipt of your comment(s), please check https://www.regulations.gov, approximately two to three days after submission
to verify posting.
FOR FURTHER INFORMATION CONTACT: Kimberly Bass, telephone 703-717-3446.
SUPPLEMENTARY INFORMATION:
I. Background
DoD is proposing to amend the DFARS to supplement the Federal
Acquisition Regulation (FAR) implementation of Executive Order (E.O.)
14005, Ensuring the Future Is Made in All of America by All of
America's Workers (86 FR 7475, January 28, 2021), by addressing DoD-
unique requirements. The FAR final rule, published at 87 FR 12780 on
March 7, 2022 (effective October 25, 2022), implemented section 8 of
E.O. 14005, which requires increasing the impact of the Buy American
Act and provides for the following--
An increase to the domestic content threshold, a schedule
for future increases, and a fallback threshold that would allow for
products meeting a specific lower domestic content threshold to qualify
as domestic products under certain circumstances; and
A framework for application of an enhanced price
preference for a domestic product that is considered a critical item or
made up of critical components.
The proposed revisions to the DFARS will supplement the FAR by
making conforming changes that incorporate the DoD-unique requirements.
II. Discussion and Analysis
This proposed rule includes revisions to DFARS part 225 and the
associated clauses to make conforming changes associated with
implementation of E.O. 14005 that incorporate the DoD-unique
requirements (e.g., inclusion of qualifying countries). Revisions are
proposed to the definitions of ``domestic end product,'' ``qualifying
country end product,'' and ``domestic construction material'' to
address the scheduled increases to the domestic content threshold from
55 percent to 60 percent in calendar year 2023, then to 65 percent in
calendar year 2024, and to 75 percent in calendar year 2029. See DFARS
225.101(a)(ii)(A) and the conforming changes at DFARS 213.302-5(d)(i)
and (ii) to allow use of the appropriate alternate.
A DoD contractor that is awarded a contract with a period of
performance that spans the schedule of domestic content threshold
increases will be required to comply with each increased threshold for
the items in the year of delivery. However, in instances where this
requirement to comply with changing domestic content thresholds would
not be feasible for a particular contract, FAR 25.101(d) provides for a
senior procurement executive to allow the application of an alternate
domestic content test in defining ``domestic end product'' after
consultation with Office of Management and Budget's Made in America
Office (MIAO). The alternate domestic content test will allow the
contractor to comply with the domestic content threshold that applies
at the time of contract award, for the entire period of performance for
that contract. The contracting officer will be required to select one
of the newly created alternate clauses for 252.225-7001, Buy American--
Balance of Payments Program, prescribed at 225.1101(2)(iv) and (v); and
one of the newly created alternate clauses at 252.225-7036, Buy
American--Free Trade Agreements--Balance of Payments Program,
prescribed at 225.1101(10)(i).
This proposed rule also allows for the use of the 55 percent
domestic content threshold (i.e., the fallback threshold included in
the FAR final rule), until one year after the increase of the domestic
content threshold to 75 percent, in instances where an agency has
determined that there are no end products or construction materials
that meet the new domestic content threshold, or such products are of
unreasonable cost. A determination is not required before January 1,
2030, if there is an offer for a foreign end product that exceeds 55
percent domestic content, including qualifying country content (see
225.103(b)(ii) and 225.202(a)(2)). This proposed rule supplements the
FAR with a consistent 55 percent threshold available until 2030 for use
where domestic products at a higher threshold are not available or the
cost to acquire them would be unreasonable. Revisions are proposed to
the definition of ``domestic end product'' to authorize the use of the
fallback threshold if the award is made before January 1, 2030, for a
foreign end product that exceeds 55 percent domestic content (see
225.103(b)(ii)).
The fallback threshold requires offerors to indicate which of their
foreign end products exceed 55 percent domestic content (see proposed
revisions to solicitation provisions at DFARS 252.225-7000, Buy
American--Balance of Payments Program Certificate, and 252.225-7035,
Buy-American--Free Trade Agreements--Balance of Payments Program
Certificate). The fallback threshold only applies to construction
material that does not consist wholly or predominantly of iron or steel
or a combination of both and that are not commercially available off-
the-shelf (COTS) items, as well as to end products that do not consist
wholly or predominantly of iron or steel or a combination of both and
that are not COTS items. For example, if a domestic end product that
exceeds the 60 percent domestic content threshold is determined to be
of unreasonable cost after application of the price preference, then
for evaluation purposes DoD will treat an end product that is
manufactured in the United States or a qualifying country and exceeds
55
[[Page 37943]]
percent domestic content, instead of 60 percent domestic content, as a
domestic end product.
Proposed revisions to DFARS 225.101 implement the alternate
domestic content test provided in the FAR final rule. A contract with a
period of performance that spans the schedule of domestic content
threshold increases will be required to comply with each increased
threshold for the items in the year of delivery, unless the senior
procurement executive of the contracting agency allows for application
of an alternate domestic content test for that contract, under which
the domestic content threshold in effect at time of contract award will
apply to the entire period of performance for the contract. Therefore,
newly created alternates to DFARS clauses are prescribed to reflect the
domestic content threshold that will apply to the entire period of
performance for that contract.
DFARS 225.1101(2)(iv) and (v) prescribe use of new Alternates II
and III of the clause at 252.225-7001, Buy American and Balance of
Payments Program. The clause at 252.225-7036, Buy American--Free Trade
Agreements--Balance of Payments Program, and its new alternates are
prescribed at 225.1101(10)(i). The contracting officer is required to
select the correct alternate clause.
DFARS 225.1101(1)(i) and (ii) prescribe use of the basic
solicitation provision or alternate at 252.225-7000, Buy American--
Balance of Payments Program Certificate, when using an alternate
domestic content threshold. DFARS 225.1101(9)(ii) prescribes use of the
basic solicitation provision or alternates at 252.225-7035, Buy
American--Free Trade Agreements--Balance of Payments Program
Certificate, when using an alternate domestic content threshold.
The FAR final rule provided the framework through which higher
price preferences will be applied to end products and construction
material deemed to be critical or made up of critical components. A
subsequent rulemaking under FAR Case 2022-004, Enhanced Price
Preference for Critical Components and Critical Items, will establish
and implement the definitive list at FAR 25.105 of critical items and
critical components, along with the associated enhanced price
preference(s). To align with changes to FAR subpart 25.1, the DFARS
renumbers section 225.105 to 225.106. Therefore, cross references are
updated at 225.106(b).
Revisions are proposed to implement the enhanced price preference
framework in the relevant DFARS provisions and clauses, including the
alternates, to add the requirement to list each domestic end product
with critical components or critical items and for foreign end products
that exceed the required 55 percent (except COTS items), for foreign
end products that do not consist wholly or predominantly of iron or
steel or a combination of both; and adds a table for the listing of
critical components and critical items as applicable (see section III
of this preamble).
For the application and use of the DFARS evaluation procedures for
the evaluation of foreign offers for supply contracts, the proposed
rule includes revisions to DFARS 225.502(c)(ii)(C) to elucidate that a
qualifying country offer is subject to the domestic content requirement
for end products that are wholly or predominantly of iron or steel or a
combination of both if the low offer is a foreign offer exempt from the
application of the Buy American statute or Balance of Payments Program
evaluation factor.
The proposed rule includes conforming revisions for the definitions
of ``critical component'', which means a component that is mined,
produced, or manufactured in the United States and deemed critical to
the U.S. supply chain, and ``critical item'', which means a domestic
construction material or domestic end product that is deemed critical
to the U.S. supply chain. The lists of critical components and critical
items are at FAR 25.105.
Several clarifying revisions were implemented in the FAR at 52.212-
3(f)(1)(ii), Offeror Representations and Certifications--Commercial
Products and Commercial Services; 52.225-2(a)(2), Buy American
Certificate; and 52.225-4(c), Buy American-Free Trade Agreements--
Israeli Trade Act Certificate (see 86 FR 6180 dated January 19, 2021).
For consistency with the FAR, conforming revisions were made to remove
the following excerpt from the DFARS: ``i.e., an end product that is
not a COTS item and does not meet the component test in paragraph (ii)
of the definition of ``domestic end product'':''. Accordingly, these
revisions were made to the provision at 252.225-7000, Buy American--
Balance of Payments Program Certificate, Basic and Alternate I,
paragraph (c)(3); the provision at 252.225-7035, Buy American--Free
Trade Agreements--Balance of Payments Program Certificate, Basic and
Alternates I, II, III, IV, and V, paragraph (c)(2)(iii).
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold (SAT) and for Commercial Services and Commercial Products,
Including Commercially Available Off-the-Shelf (COTS) Items
This proposed rule includes amendments to the following
solicitation provisions and contract clauses: DFARS 252.225-7000, Buy
American and Balance of Payments Program Certificate (Basic and
Alternate I); DFARS 252.225-7001, Buy American and Balance of Payments
Program (Basic and Alternate I); DFARS 252.225-7035, Buy American--Free
Trade Agreements--Balance of Payments Program Certificate (Basic and
Alternates I, II, III, IV, and V); DFARS 252.225-7036, Buy American--
Free Trade Agreements--Balance of Payments Program (Basic and
Alternates I, II, III, IV, and V); DFARS 252.225-7044, Balance of
Payments Program--Construction Material, (Basic and Alternate I); and
252.225-7045, Balance of Payments Program--Construction Material Under
Trade Agreements (Basic and Alternates I, II, and III).
In addition, this proposed rule includes new alternates for the
clauses at DFARS 252.225-7001, Buy American and Balance of Payments
Program, and 252.225-7036, Buy American--Free Trade Agreements--Balance
of Payments Program. This proposed rule does not add any new
requirements on contracts at or below the simplified acquisition
threshold, for commercial products including commercially available off
the-shelf items, or for commercial services.
IV. Expected Impact of the Rule
This proposed rule includes changes to the DFARS that supplement
the FAR's implementation of E.O. 14005 via the final rule for FAR Case
2021-008 (published March 7, 2022 in the Federal Register at 87 FR
12780, with an effective date of October 25, 2022). The FAR final rule
provided for--
1. An increase to the domestic content threshold that a product
must meet to be defined as ``domestic''; a schedule for future
increases; and a fallback threshold that would allow products meeting a
specific lower domestic content threshold to qualify as a domestic
product under certain circumstances; and
2. A framework for the application of an enhanced price preference
for a domestic product that is considered a critical product or is made
up of critical components.
This proposed rule implements these changes in DFARS part 225 and
in the
[[Page 37944]]
solicitation provisions and contract clauses that contain DoD-unique
requirements such as the inclusion of qualifying countries. A
qualifying country is a country that has a reciprocal defense
procurement memorandum of understanding or international agreement with
the United States in which both countries agree to remove barriers to
purchases of supplies produced in the other country or services
performed by sources of the other country; the memorandum of
understanding or agreement complies, where applicable, with the
requirements of section 36 of the Arms Export Control Act (22 U.S.C.
2776) and with 10 U.S.C. 2457. The DFARS definition of ``domestic end
product'', for the purpose of compliance with the domestic content
threshold, includes components that are mined, produced, or
manufactured in the United States and in qualifying countries. The list
of qualifying countries appears in the definition of ``qualifying
country'' at DFARS 225.003 and in certain contract clauses.
It is anticipated that those domestic industries making adjustments
for the increased domestic content within their supply chains to
continue supplying domestic end products are more likely to benefit
from a competitive advantage when the rule is implemented. Because the
FAR final rule has been in effect since October 2022, potential
offerors may already be making those adjustments.
The Buy American statute and the Balance of Payments Program (e.g.,
certifications required of offerors to demonstrate end products are
domestic) remain unchanged and continue to reflect processes that have
been in place for decades. Under this proposed rule, as under the FAR
final rule, when deciding whether to pursue a procurement and use of
products (i.e., domestic or foreign), offerors will have to plan for
the future changes to the domestic content threshold during the period
of performance of an anticipated contract, unless use of an alternate
domestic content threshold, in effect at time of contract award, has
been authorized.
As under the FAR final rule, those offerors that do not to modify
their supply chains to comply with the scheduled increases to the
domestic content threshold will still be able to propose an offer for
DoD contracts. However, they may no longer have use of a price
preference.
Increased domestic sourcing of content facilitates the reduction of
DoD's supply chain risk. Because the FAR final rule has been in effect
since October 2022, any increased burden with regard to the timed
increases to the domestic content threshold, on contractors in
particular, could be minor if not de minimis.
The framework for the enhanced price preference is intended to
provide a stable source of demand for domestically produced critical
products. This proposed rule merely supplements the FAR with the DoD-
unique requirements. A separate rulemaking will be undertaken to add to
the FAR critical products and components to establish the associated
preferences. Therefore, the associated cost impacts and benefits will
be captured in the subsequent FAR rulemaking (FAR case 2022-004,
Enhanced Price Preference for Critical Components and Critical Items).
There is an information collection burden associated with offerors
identifying when a domestic end product or domestic construction
material contains a critical component or critical item (see section
VIII of this preamble), but it is anticipated that the information
collection will be fully implemented for all agencies that use the FAR
in the future rulemaking for the FAR case 2022-004. Any of the
associated burden should be offset by the benefits of the larger price
preference received for these items. The overall cost impact of this
rule is not significant, and any associated impact is anticipated to be
primarily 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 not a significant regulatory action and, therefore, was not
subject to review under section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993.
VI. Regulatory Flexibility Act
DoD does not expect this proposed rule to have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
because the rule contains few additional compliance and reporting
requirements for certain offerors, including small businesses. However,
an initial regulatory flexibility analysis has been performed and is
summarized as follows:
The proposed rule includes amendments to the Defense Federal
Acquisition Regulation Supplement (DFARS) to supplement the Federal
Acquisition Regulation (FAR) implementation of Executive Order (E.O.)
14005, Ensuring the Future Is Made in All of America by All of
America's Workers (86 FR 7475, January 28, 2021), by addressing DoD-
unique requirements. The FAR final rule, published at 87 FR 12780 on
March 7, 2022 (effective October 25, 2022), implemented section 8 of
E.O. 14005, which requires the impact of the Buy American statute to be
strengthened by providing--
An increase to the domestic content threshold required to
be met for an end product and construction material to be defined as
``domestic'' and a schedule for future increases;
A fallback threshold that would allow for end products
meeting a specific lower domestic content threshold to qualify as a
domestic end product under certain circumstances; and
A framework for application of an enhanced price
preference for a domestic end product that is considered a critical
item or is made up of critical components.
The objective of the rule is to make conforming changes associated
with the FAR implementation of E.O. 14005 that incorporate the DoD-
unique requirements (e.g., inclusion of qualifying countries). E.O.
14005 addresses a series of actions to enable the U.S. Government to
maximize the use of goods, products, and materials produced in the
United States in order to strengthen and diversify domestic supplier
bases and create new opportunities for U.S. firms and workers. The
legal basis for this proposed rule is 41 U.S.C. 1303.
Data was obtained from the Federal Procurement Data System (FPDS)
for fiscal years 2019, 2020, and 2021 on awards valued over the micro-
purchase threshold for construction and for supplies. Based on the
data, DoD made an average of 161,686 awards for supplies per year to
approximately 14,913 small entities and an average of 177 awards for
construction per year to approximately 167 small entities. This
proposed rule could apply to those small entities.
The proposed rule will strengthen domestic preferences under the
Buy American statute and the Balance of Payments Program and provide
small businesses the opportunity and
[[Page 37945]]
incentive to deliver U.S.-manufactured products from domestic
suppliers. It is expected that this proposed rule generally would
benefit U.S. small business manufacturers. 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 make such
adjustments.
This proposed rule includes new reporting, recordkeeping, or other
compliance requirements for small businesses. Prior to this rule, small
businesses already had to monitor compliance with contract requirements
pertaining to the increased domestic content threshold implemented in
the FAR for contracted items. This proposed rule makes conforming
changes to align the DFARS with the FAR while incorporating the DoD-
unique requirements. Due to small businesses' familiarity with the FAR
final rule, the increases in the domestic content threshold implemented
in this rule are unlikely to result in additional disruption to
existing contractor supply chains.
The rule contains a few additional reporting requirements for
certain offerors, including small businesses. Small businesses who
submit an offer for a solicitation subject to the Buy American statute
or the Balance of Payments Program already have to list the foreign end
products included in their offer. This proposed rule would require that
the offeror also identify which of these foreign end products are not
COTS items, do not consist wholly or predominantly of iron or steel or
a combination of both, and meet or exceed the fallback domestic content
threshold.
The rule does not duplicate, overlap, or conflict with any other
Federal rules.
There are no known significant alternative approaches to the rule
that would meet the requirements of the Executive order.
DoD invites comments from small business concerns and other
interested parties on the expected impact of this rule on small
entities.
DoD will also consider comments from small entities concerning the
existing regulations in subparts affected by this rule in accordance
with 5 U.S.C. 610. Interested parties must submit such comments
separately and should cite 5 U.S.C. 610 (DFARS Case 2022-D019), in
correspondence.
VIII. Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. chapter 35) applies to this
rule. However, these changes to the DFARS do not impose additional
information collection requirements to the paperwork burden previously
approved under Office of Management and Budget Control Number 0704-
0229, entitled Defense Federal Acquisition Regulation Supplement
(DFARS) Defense Federal Acquisition Regulation Supplement Part 225,
Foreign Acquisition, and Related Clauses at 252.225; DD Form 2139.
List of Subjects in 48 CFR Parts 213, 225, and 252
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 213, 225, and 252 are proposed to be
amended as follows:
0
1. The authority citation for parts 213, 225, and 252 continues to read
as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 213--SIMPLIFIED ACQUSITION PROCEDURES
213.302-5 [Amended]
0
2. Amend section 213.302-5--
0
a. In paragraph (d) introductory text by removing ``Act'' and adding
``statute'' in its place; and
0
b. In paragraphs (d)(i) and (ii) by removing ``Program,'' and adding
``Program, or the appropriate alternate,'' in its place.
PART 225--FOREIGN ACQUISITION
0
3. Amend section 225.003--
0
a. In the definition of ``Domestic end product'' by revising paragraph
(1)(ii)(A) introductory text; and
0
b. In the definition of ``Qualifying country end product'' by revising
paragraph (2)(i) introductory text and paragraph (ii).
225.003 Definitions.
* * * * *
Domestic end product means--
(1) * * *
(ii) * * *
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 60 percent of the cost of all its components, except
that the percentage will be 65 percent for items delivered in calendar
years 2024 through 2028 and 75 percent for items delivered starting in
calendar year 2029, unless an alternate percentage is established for a
contract in accordance with FAR 25.101(d); or award is made before
January 1, 2030, for a foreign end product that exceeds 55 percent
domestic content (see 225.103(b)(ii)). 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--
* * * * *
Qualifying country end product means--
* * * * *
(2) * * *
(i) The cost of the following types of components exceeds 60
percent of the cost of all its components, except that the percentage
will be 65 percent for items delivered in calendar years 2024 through
2028 and 75 percent for items delivered starting in calendar year 2029,
unless an alternate percentage is established for a contract:
* * * * *
(ii) The end product is a COTS item.
* * * * *
0
4. Amend section 225.101 by--
0
a. Revising paragraph (a)(ii)(A); and
0
b. Adding paragraph (d).
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 60 percent of the
cost of all its components, except that the percentage will be 65
percent for items delivered in calendar years 2024 through 2028 and 75
percent for items delivered starting in calendar year 2029, but see
paragraph (d) of this section. This test is applied to end products
only and not to individual components.
* * * * *
(d)(1) In lieu of the threshold increases in FAR 25.101(a)(2)(i),
use the domestic content threshold increases in paragraph (a)(ii) of
this section. The senior procurement executive may approve application
of an alternate domestic content test, under which the domestic content
threshold in effect at the time of contract award will apply to the
entire period of performance of the
[[Page 37946]]
contract, following consultation with the Office of Management and
Budget's Made in America Office. See PGI 225.101 for guidance on
documentation requirements when the senior procurement executive
approves application of an alternate domestic content test.
(2) When the senior procurement executive allows for application of
an alternate domestic content test for the contract pursuant to FAR
25.101(d)(1) (but see paragraph (d)(1) of this section)--
(A) See 225.1101(2)(iv) for use of alternate II of the clause at
252.225-7001, Buy American and Balance of Payments Program;
(B) See 225.1101(2)(v) for use of alternate III of the clause at
252.225-7001, Buy American and Balance of Payments Program;
(C) See 225.1101(9) for use of the basic or alternate provision at
252.225-7035, Buy American--Free Trade Agreements--Balance of Payments
Program Certificate, or the basic or alternate clause at 252.225-7036,
Buy American--Free Trade Agreements--Balance of Payments Program; and
(D) See 225.1101(10)(i) for use of the basic or alternate clause at
252.225-7036, Buy American--Free Trade Agreements--Balance of Payments
Program.
0
5. Amend section 225.103--
0
a. By revising paragraph (b)(ii) introductory text; and
0
b. In paragraph (c) by removing ``Subpart'' and adding ``subpart'' in
its place.
225.103 Exceptions.
* * * * *
(b) * * *
(ii) A determination is not required before January 1, 2030, if
there is an offer for a foreign end product that exceeds 55 percent
domestic content. Except as provided in FAR 25.103(b)(3), the
determination shall be approved--
* * * * *
0
6. Redesignate section 225.105 as section 225.106 and revise newly
redesignated section 225.106 to read as follows:
225.106 Determining reasonableness of cost.
(b) Use an evaluation factor of 50 percent instead of the factors
specified in FAR 25.106(b)(1)(i) and (c)(1)(i).
225.170 [Amended]
0
7. Amend section 225.170 by removing ``Subpart'' and adding ``subpart''
in its place.
0
8. Revise section 225.202 to read as follows:
225.202 Exceptions.
(a)(2) A nonavailability determination is not required for
construction materials listed in FAR 25.104(a). For other materials, a
nonavailability determination shall be approved at the levels specified
in 225.103(b)(ii). Use the estimated value of the construction
materials to determine the approval level. A nonavailability
determination is not required before January 1, 2030, if there is an
offer for foreign construction material that exceeds 55 percent
domestic content (also see FAR 25.204(b)(1)(ii) and (b)(2)(ii)).
0
9. Amend section 225.502--
0
a. In paragraph (c)(i)(A) by removing ``subject only to the Buy
American or Balance of Payments Program'' and adding ``subject only to
the Buy American statute or the Balance of Payments Program'' in its
place;
0
b. In paragraph (c)(i)(B) by removing ``factor'' and adding ``factor,
but see 225.106'' in its place; and
0
c. By revising paragraph (c)(ii)(C).
The revision reads as follows:
225.502 Application.
* * * * *
(c) * * *
(ii) * * *
(C) If the low offer is a foreign offer that is exempt from
application of the Buy American or Balance of Payments Program
evaluation factor, award on that offer. If the low offer is a
qualifying country offer from a country listed at 225.872-1(b), execute
a determination in accordance with 225.872-4. A qualifying country
offer is subject to the domestic content requirement for end products
that are wholly or predominantly of iron or steel or a combination of
both.
* * * * *
0
10. Amend section 225.1101--
0
a. In paragraph (1)(i) by removing ``basic clause'' and adding ``basic
clause or alternate II of the clause'' in its place;
0
b. In paragraph (1)(ii) by removing ``alternate I'' and adding
``alternate I or alternate III of the clause'' in its place;
0
c. In paragraph (2)(i) by--
0
i. Removing ``basic or the alternate'' and adding ``basic or an
alternate'' in its place; and
0
ii. Removing ``Act'';
0
d. In paragraph (2) by adding paragraphs (iv) and (v);
0
e. In paragraph (9)(i) by removing ``basic of the clause'' and adding
``basic or alternate VI of the clause'' in its place;
0
f. In paragraph (9)(ii) by removing ``alternate I of the clause'' and
adding ``alternate I or alternate VII of the clause'' in its place;
0
g. In paragraph (9)(iii) by removing ``alternate II of the clause'' and
adding ``alternate II or alternate VIII of the clause'' in its place;
0
h. In paragraph (9)(iv) by removing ``alternate III of the clause'' and
adding ``alternate III or alternate IX of the clause'' in its place;
0
i. In paragraph (9)(v) by removing ``alternate IV of the clause'' and
adding ``alternate IV or alternate X of the clause'' in its place;
0
j. In paragraph (9)(vi) by removing ``alternate V of the clause'' and
adding ``alternate V or alternate XI of the clause'' in its place;
0
k. In paragraph (10(i)(D) by removing ``equals or exceeds $25,000,
but'';
0
l. In paragraph (10)(i) by adding paragraphs (G) through (L); and
0
m. In paragraph (10)(ii)(B) by removing ``sSection'' and adding
``section'' in its place.
The additions read as follows:
225.1101 Acquisition of supplies.
* * * * *
(2) * * *
(iv) Use alternate II of the clause in lieu of the basic clause in
solicitations and contracts if--
(A) The acquisition is not of end products listed in 225.401-70 in
support of operations in Afghanistan; and
(B) An alternate domestic content threshold will apply to the
entire period of performance as approved by the senior procurement
executive (see 225.101(d)).
(v) Use alternate III of the clause in lieu of Alternate I of the
clause in solicitations and contracts if--
(A) The acquisition is of end products listed in 225.401-70 in
support of operations in Afghanistan; and
(B) An alternate domestic content threshold will apply to the
entire period of performance as approved by the senior procurement
executive (see 225.101(d)).
* * * * *
(10) * * *
(i) * * *
(G) Use the alternate VI clause in lieu of the basic clause in
solicitations and contracts, except if the acquisition is of end
products in support of operations in Afghanistan, when--
(1) The estimated value equals or exceeds $100,000 but is less than
$183,000; and
(2) An alternate domestic content threshold will apply to the
entire period of performance as approved by the senior procurement
executive (see 225.101(d)).
(H) Use the alternate VII clause in lieu of the alternate I clause
in solicitations and contracts, except if the acquisition is of end
products in support of operations in Afghanistan, when--
[[Page 37947]]
(1) The estimated value is less than $92,319; and
(2) An alternate domestic content threshold will apply to the
entire period of performance as approved by the senior procurement
executive (see 225.101(d)).
(I) Use the alternate VIII clause in lieu of the alternate II
clause in solicitations and contracts when--
(1) The estimated value is less than $183,000;
(2) The acquisition is of end products in support of operations in
Afghanistan; and
(3) An alternate domestic content threshold will apply to the
entire period of performance as approved by the senior procurement
executive (see 225.101(d)).
(J) Use the alternate IX clause in lieu of the alternate III clause
in solicitations and contracts when--
(1) The estimated value is less than $92,319;
(2) The acquisition is of end products in support of operations in
Afghanistan; and
(3) An alternate domestic content threshold will apply to the
entire period of performance as approved by the senior procurement
executive in accordance with FAR 25.101(d).
(K) Use the alternate X clause in lieu of the alternate IV clause
in solicitations and contracts, except if the acquisition is of end
products in support of operations in Afghanistan, when--
(1) The estimated value equals or exceeds $92,319 but is less than
$100,000; and
(2) An alternate domestic content threshold will apply to the
entire period of performance as approved by the senior procurement
executive (see 225.101(d)).
(L) Use the alternate XI clause in lieu of the alternate V clause
in solicitations and contracts when--
(1) The estimated value equals or exceeds $92,319 but is less than
$100,000;
(2) The acquisition is of end products in support of operations in
Afghanistan; and
(3) An alternate domestic content threshold will apply to the
entire period of performance as approved by the senior procurement
executive (see 225.101(d)).
* * * * *
0
11. Amend section 225.7503 by--
0
a. Adding paragraphs (a)(3) and (4); and
0
b. Adding paragraphs (b)(5) through (8).
The additions read as follows:
225.7503 Contract clauses.
(a) * * *
(3) Use the alternate II clause in lieu of the basic clause if an
alternate domestic content threshold will apply to the entire period of
performance as approved by the senior procurement executive (see
225.101(d)), unless the acquisition is in support of operations in
Afghanistan.
(4) Use the alternate III clause in lieu of the alternate I clause
if--
(A) The acquisition is in support of operations in Afghanistan; and
(B) An alternate domestic content threshold will apply to the
entire period of performance as approved by the senior procurement
executive (see 225.101(d)).
(b) * * *
(5) Use the alternate IV clause in lieu of the basic clause in
solicitations and contracts, unless the acquisition is in support of
operations in Afghanistan, when--
(A) The estimated value is $12,001,460 or more; and
(B) An alternate domestic content threshold will apply to the
entire period of performance as approved by the senior procurement
executive (see 225.101(d)).
(6) Use the alternate V clause in lieu of the alternate I clause in
solicitations and contracts, unless the acquisition is in support of
operations in Afghanistan, when--
(A) The estimated value is $7,032,000 or more; and
(B) An alternate domestic content threshold will apply to the
entire period of performance as approved by the senior procurement
executive (see 225.101(d)).
(7) Use the alternate VI clause in lieu of the alternate II clause
in solicitations and contracts when--
(A) The estimated value is $12,001,460 or more;
(B) The acquisition is in support of operations in Afghanistan; and
(C) An alternate domestic content threshold will apply to the
entire period of performance as approved by the senior procurement
executive (see 225.101(d)).
(8) Use the alternate VII clause in lieu of the alternate III
clause in solicitations and contracts when--
(A) The estimated value is $7,032,000 or more but less than
$12,001,460;
(B) The acquisition is in support of operations in Afghanistan; and
(C) An alternate domestic content threshold will apply to the
entire period of performance as approved by the senior procurement
executive (see 225.101(d)).
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
12. Amend section 252.225-7000--
0
a. By revising the provision date and paragraphs (a) and (c); and
0
b. In Alternate I, by revising the provision date and paragraphs (a)
and (c).
The revisions read as follows:
252.225-7000 Buy American--Balance of Payments Program Certificate.
* * * * *
Buy American--Balance of Payments Program Certificate--Basic (Date)
(a) Definitions. Commercially available off-the-shelf (COTS)
item, component, critical component, critical item, domestic end
product, foreign end product, qualifying country, qualifying country
end product, and United States, as used in this provision, have the
meanings given in the 252.225-7001, Buy American and Balance of
Payments Program--Basic clause of this solicitation.
* * * * *
(c) Certifications and identification of country of origin.
(1) For all line items subject to the Buy American and Balance
of Payments Program--Basic clause of this solicitation, the Offeror
certifies that--
(i) Each end product, except those listed in paragraphs (c)(2)
or (3) of this provision, is a domestic end product and that each
domestic end product listed in paragraph (c)(4) of this provision
contains a critical component or a critical item; and
(ii) For end products other than COTS items, components of
unknown origin are considered to have been mined, produced, or
manufactured outside the United States or a qualifying country. For
those end products that do not consist wholly or predominantly of
iron or steel or a combination of both, the Offeror shall also
indicate whether these foreign end products exceed 55 percent
domestic content, except for those that are COTS items. If the
percentage of the domestic content is unknown, select ``no''.
(2) The Offeror certifies that the following end products are
qualifying country end products:
Line item No. Country of origin
(3) The following end products are other foreign end products,
including end products manufactured in the United States that do not
qualify as domestic end products. For those foreign end products
that do not consist wholly or predominantly of iron or steel or a
combination of both, the Offeror shall also indicate whether these
foreign end products exceed 55 percent domestic content, except for
those that are COTS items. If the percentage of the domestic content
is unknown, select ``no''.
[[Page 37948]]
------------------------------------------------------------------------
Exceeds 55%
Line item No. Country of origin domestic content
(if known) (yes/no)
------------------------------------------------------------------------
------------------------------------------------------------------------
(4) The Offeror shall separately list the line item numbers of
domestic end products that contain a critical component or a
critical item (see Federal Acquisition Regulation 25.105).
Domestic end products containing a critical component or a
critical item:
Line Item Number-------------------------------------------------------
[List as necessary]
* * * * *
Alternate I. * * *
Buy American--Balance of Payments Program Certificate--Alternate I
(Date)
(a) Definitions. Commercially available off-the-shelf (COTS)
item, component, critical component, critical item, domestic end
product, foreign end product, qualifying country, qualifying country
end product, South Caucasus/Central and South Asian (SC/CASA) state,
South Caucasus/Central and South Asian (SC/CASA) state end product,
and United States, as used in this provision, have the meanings
given in the 252.225-7001, Buy American and Balance of Payments
Program--Alternate I clause of this solicitation.
* * * * *
(c) Certifications and identification of country of origin.
(1) For all line items subject to the Buy American and Balance
of Payments Program--Alternate I clause of this solicitation, the
Offeror certifies that--
(i) Each end product, except those listed in paragraphs (c)(2)
or (3) of this provision, is a domestic end product and that each
domestic end product listed in paragraph (c)(4) of this provision
contains a critical component or a critical item; and
(ii) For end products other than COTS items, components of
unknown origin are considered to have been mined, produced, or
manufactured outside the United States or a qualifying country. For
those end products that do not consist wholly or predominantly of
iron or steel or a combination of both, the Offeror shall also
indicate whether these foreign end products exceed 55 percent
domestic content, except for those that are COTS items. If the
percentage of the domestic content is unknown, select ``no''.
(2) The Offeror certifies that the following end products are
qualifying country end products or SC/CASA state end products:
Line Item Number Country of Origin
(3) The following end products are other foreign end products,
including end products manufactured in the United States that do not
qualify as domestic end products. For those foreign end products
that do not consist wholly or predominantly of iron or steel or a
combination of both, the Offeror shall also indicate whether these
foreign end products exceed 55 percent domestic content, except for
those that are COTS items. If the percentage of the domestic content
is unknown, select ``no''.
Line Item Number Country of Origin (if known)
* * * * *
0
13. Amend section 252.225-7001--
0
a. By revising the clause date;
0
b. In paragraph (a)--
0
i. In the definition of ``Commercially available off-the-shelf (COTS)
item'' paragraph (1)(i) by removing ``Federal Acquisition Regulation''
and adding ``Federal Acquisition Regulation (FAR)'' in its place;
0
ii. By adding, in alphabetical order, the definitions of ``Critical
component'' and ``Critical item'';
0
iii. In the definition of ``Domestic end product'' by revising the
first sentence of paragraph (1)(ii)(A) introductory text;
0
iv. In the definition of ``Qualifying country end product'' by revising
paragraph (2)(i) introductory text;
0
c. By revising paragraph (b);
0
d. In Alternate I--
0
i. By revising the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS)
item'' paragraph (1)(i) by removing ``Federal Acquisition Regulation''
and adding ``Federal Acquisition Regulation (FAR)'' in its place;
0
B. By adding, in alphabetical order, the definitions of ``Critical
component'' and ``Critical item'';
0
C. In the definition of ``Domestic end product'' by revising the first
sentence of paragraph (1)(ii)(A) introductory text;
0
D. In the definition of ``Qualifying country end product'' by revising
paragraph (2)(i) introductory text;
0
e. By adding Alternate II and Alternate III.
The revisions and additions read as follows:
252.225-7001 Buy American and Balance of Payments Program.
* * * * *
Buy American and Balance of Payments Program--Basic (Date)
(a) * * *
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means a domestic construction material or domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
Domestic end product means--
(1) * * *
(ii) * * *
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 60 percent of the cost of all its components, except
that the percentage will be 65 percent for items delivered in
calendar years 2024 through 2028 and 75 percent for items delivered
starting in calendar year 2029, unless an alternate percentage is
established for a contract in accordance with FAR 25.101(d), or
award is made before January 1, 2030, for a foreign end product that
exceeds 55 percent domestic content (see Defense Federal Acquisition
Regulation Supplement 225.103(b)(ii)). * * *
* * * * *
Qualifying country end product means-- * * *
(2) * * *
(i) The cost of the following types of components exceeds 60
percent of the cost of all its components, except that the
percentage will be 65 percent for items delivered in calendar years
2024 through 2028 and 75 percent for items delivered starting in
calendar year 2029, unless an alternate percentage is established
for a contract:
* * * * *
(b) This clause implements 41 U.S.C. chapter 83, Buy American.
In accordance with 41 U.S.C. 1907, the component test of the Buy
American statute is waived for an end product that is a COTS item
(see FAR 12.505(a)(1)). Unless otherwise specified, this clause
applies to all line items in the contract.
* * * * *
Alternate I. * * *
Buy American and Balance of Payments Program--Alternate I (Date)
(a) * * *
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means a domestic construction material or domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
Domestic end product means--
(1) * * *
(ii) * * *
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 60 percent of the cost of all its components, except
that the percentage will be 65 percent for items delivered in
calendar years 2024 through 2028 and 75 percent for items delivered
[[Page 37949]]
starting in calendar year 2029, unless an alternate percentage is
established for a contract in accordance with FAR 25.101(d), or
award is made before January 1, 2030, for a foreign end product that
exceeds 55 percent domestic content (see Defense Federal Acquisition
Regulation Supplement 225.103(b)(ii)). * * *
* * * * *
Qualifying country end product means-- * * *
(2) * * *
(i) The cost of the following types of components exceeds 60
percent of the cost of all its components, except that the
percentage will be 65 percent for items delivered in calendar years
2024 through 2028 and 75 percent for items delivered starting in
calendar year 2029, unless an alternate percentage is established
for a contract:
* * * * *
Alternate II. As prescribed in 225.1101(2)(i) and (2)(iv), use
the following clause, which includes, in the definitions of
``domestic end product'' at paragraph (1)(ii)(A) and ``qualifying
country end product'' at paragraph (2)(i), the domestic content
threshold that will apply to the entire contract period of
performance.
Buy American and Balance of Payments Program--Alternate II (Date)
(a) Definitions. As used in this clause--
Commercially available off-the-shelf (COTS) item--
(1) Means any item of supply (including construction material)
that is--
(i) A commercial product (as defined in paragraph (1) of the
definition of ``commercial product'' in section 2.101 of the Federal
Acquisition Regulation (FAR));
(ii) Sold in substantial quantities in the commercial
marketplace; and
(iii) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(2) Does not include bulk cargo, as defined in 46 U.S.C.
40102(4), such as agricultural products and petroleum products.
Component means an article, material, or supply incorporated
directly into an end product.
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means a domestic construction material or domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
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, for the entire period of performance for a contract
awarded in: calendar year 2023, 60 percent of the cost of all its
components; calendar years 2024 through 2028, 65 percent of the cost
of all its components; or calendar year 2029 or later, 75 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.
End product means those articles, materials, and supplies to be
acquired under this contract for public use.
``Foreign end product'' means an end product other than a
domestic end product.
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 means a country with a reciprocal defense
procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove
barriers to purchases of supplies produced in the other country or
services performed by sources of the other country, and the
memorandum or agreement complies, where applicable, with the
requirements of section 36 of the Arms Export Control Act (22 U.S.C.
2776) and with 10 U.S.C. 2457. Accordingly, the following are
qualifying countries:
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Greece
Israel
Italy
Japan
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Portugal
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland.
Qualifying country component means a component mined, produced,
or manufactured in a qualifying country.
Qualifying country end product means--
(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, for
the entire period of performance for a contract awarded in calendar
year 2023, 60 percent of the cost of all its components; calendar
years 2024 through 2028, 65 percent of the cost of all its
components; or calendar year 2029 or later, 75 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.
United States means the 50 States, the District of Columbia, and
outlying areas.
[[Page 37950]]
(b) This clause implements 41 U.S.C. chapter 83, Buy American.
In accordance with 41 U.S.C. 1907, the component test of the Buy
American statute is waived for an end product that is a COTS item
(see FAR 12.505(a)(1)). Unless otherwise specified, this clause
applies to all line items in the contract.
(c) The Contractor shall deliver only domestic end products
unless, in its offer, it specified delivery of other end products in
the Buy American--Balance of Payments Program Certificate provision
of the solicitation. If the Contractor certified in its offer that
it will deliver a qualifying country end product, the Contractor
shall deliver a qualifying country end product or, at the
Contractor's option, a domestic end product.
(d) The contract price does not include duty for end products or
components for which the Contractor will claim duty-free entry.
(End of clause)
Alternate III. As prescribed in 225.1101(2)(i) and (2)(v), use
the following clause, which includes, in the definitions of
``domestic end product'' at paragraph (1)(ii)(A) and ``qualifying
country end product'' at paragraph (2)(i), the domestic content
threshold that will apply to the entire contract period of
performance; adds ``South Caucasus/Central and South Asian (SC/CASA)
state'' and ``South Caucasus/Central and South Asian (SC/CASA) state
end product'' to paragraph (a); and uses different paragraphs (b)
and (c) than the basic clause:
Buy American and Balance of Payments Program--Alternate III (Date)
(a) Definitions. As used in this clause--
Commercially available off-the-shelf (COTS) item--
(1) Means any item of supply (including construction material)
that is--
(i) A commercial product (as defined in paragraph (1) of the
definition of ``commercial product'' in section 2.101 of the Federal
Acquisition Regulation (FAR));
(ii) Sold in substantial quantities in the commercial
marketplace; and
(iii) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(2) Does not include bulk cargo, as defined in 46 U.S.C.
40102(4), such as agricultural products and petroleum products.
Component means an article, material, or supply incorporated
directly into an end product.
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means a domestic construction material or domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
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, for the entire period of performance for a contract
awarded in: calendar year 2023, 60 percent of the cost of all its
components; calendar years 2024 through 2028, 65 percent of the cost
of all its components; or calendar year 2029 or later, 75 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.
End product means those articles, materials, and supplies to be
acquired under this contract for public use.
Foreign end product means an end product other than a domestic
end product.
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 means a country with a reciprocal defense
procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove
barriers to purchases of supplies produced in the other country or
services performed by sources of the other country, and the
memorandum or agreement complies, where applicable, with the
requirements of section 36 of the Arms Export Control Act (22 U.S.C.
2776) and with 10 U.S.C. 2457. Accordingly, the following are
qualifying countries:
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Greece
Israel
Italy
Japan
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Portugal
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland.
Qualifying country component means a component mined, produced,
or manufactured in a qualifying country.
Qualifying country end product means--
(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, for
the entire period of performance for a contract awarded in: calendar
year 2023, 60 percent of the cost of all its components; calendar
years 2024 through 2028, 65 percent of the cost of all its
components; or calendar year 2029 or later, 75 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,
[[Page 37951]]
or manufactured in the United States. Components of unknown origin
are treated as foreign; or
(ii) The end product is a COTS item.
South Caucasus/Central and South Asian (SC/CASA) state means
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan,
Tajikistan, Turkmenistan, or Uzbekistan.
South Caucasus/Central and South Asian (SC/CASA) state end
product means an article that--
(1) Is wholly the growth, product, or manufacture of an SC/CASA
state; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in an SC/CASA state into a new and different article of
commerce with a name, character, or use distinct from that of the
article or articles from which it was transformed. The term refers
to a product offered for purchase under a supply contract, but for
purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
United States means the 50 States, the District of Columbia, and
outlying areas.
(b) This clause implements the Balance of Payments Program.
Unless otherwise specified, this clause applies to all line items in
the contract.
(c) The Contractor shall deliver only domestic end products
unless, in its offer, it specified delivery of other end products in
the Buy American--Balance of Payments Program Certificate provision
of the solicitation. If the Contractor certified in its offer that
it will deliver a qualifying country end product or an SC/CASA state
end product, the Contractor shall deliver a qualifying country end
product, an SC/CASA state end product, or, at the Contractor's
option, a domestic end product.
(d) The contract price does not include duty for end products or
components for which the Contractor will claim duty-free entry.
(End of clause)
0
14. Amend section 252.225-7035--
0
a. By revising the provision date;
0
b. In paragraph (a) by removing ````component,'''' and ``Buy American''
and adding ````component,'' ``critical component,'' ``critical
item,'''' and ``252.225-7036, Buy American'' in their places,
respectively;
0
c. By revising paragraph (c);
0
d. By adding ``(End of provision)'' at the end of the provision;
0
e. In Alternate I--
0
i. By revising the introductory text;
0
ii. By revising the provision date;
0
iii. In paragraph (a) by removing ````component,'''' and ``Buy
American'' and adding ````component,'' ``critical component,''
``critical item,'''' and ``252.225-7036, Buy American'' in their
places, respectively;
0
iv. Revising paragraph (c);
0
f. In Alternate II--
0
i. By revising the provision date;
0
ii. In paragraph (a) by removing ````component,'''' and ``Buy
American'' and adding ````component,'' ``critical component,''
``critical item,'''' and ``252.225-7036, Buy American'' in their
places, respectively;
0
iii. By revising paragraph (c);
0
g. In Alternate III--
0
i. By revising the provision date;
0
ii. In paragraph (a) by removing ````component,'''' and ``Buy
American'' and adding ````component,'' ``critical component,''
``critical item,'''' and ``252.225-7036, Buy American'' in their
places, respectively;
0
iii. By revising paragraph (c);
0
h. In Alternate IV--
0
i. By revising the provision date;
0
ii. In paragraph (a) by removing ````component,'''' and ``Buy
American'' and adding ````component,'' ``critical component,''
``critical item,'''' and ``252.225-7036, Buy American'' in their
places, respectively;
0
iii. Revising paragraph (c); and
0
i. In Alternate V--
0
i. By revising the provision date;
0
ii. In paragraph (a) by removing ````component,'''' and ``Buy
American'' and adding ````component,'' ``critical component,''
``critical item,'''' and ``252.225-7036, Buy American'' in their
places, respectively; and
0
iii. By revising paragraph (c).
The revisions read as follows:
252.225-7035 Buy American--Free Trade Agreements--Balance of Payments
Program Certificate.
* * * * *
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Basic (Date)
* * * * *
(c) Certifications and identification of country of origin.
(1) For all line items subject to the Buy American--Free Trade
Agreements--Balance of Payments Program--Basic clause of this
solicitation, the Offeror certifies that--
(i) Each end product, except the end products listed in
paragraph (c)(2) of this provision, is a domestic end product;
(ii) Each domestic end product listed in paragraph (c)(3) of
this provision contains a critical component or a critical item; and
(iii) Components of unknown origin are considered to have been
mined, produced, or manufactured outside the United States or a
qualifying country.
(2) The Offeror shall identify all end products that are not
domestic end products.
(i) The Offeror certifies that the following supplies are
qualifying country (except Australian) end products:
(Line item No.) (Country of origin)
(ii) The Offeror certifies that the following supplies are Free
Trade Agreement country end products other than Bahrainian end
products, Moroccan end products, Panamanian end products or Peruvian
end products:
(Line item No.) (Country of origin)
(iii) The following supplies are other foreign end products,
including end products manufactured in the United States that do not
qualify as domestic end products. For those foreign end products
that do not consist wholly or predominantly of iron or steel or a
combination of both, the Offeror shall also indicate whether these
foreign end products exceed 55 percent domestic content, except
those that are COTS items. If the percentage of the domestic content
is unknown, select ``no''.
------------------------------------------------------------------------
Exceeds 55%
Line item No. Country of origin domestic content
(if known) (yes/no)
------------------------------------------------------------------------
------------------------------------------------------------------------
(3) The Offeror shall list the line item numbers of domestic end
products that contain a critical component or a critical item (see
section 25.105 of the Federal Acquisition Regulation).
Line Item No.----------------------------------------------------------
[List as necessary]
(End of provision)
Alternate I. As prescribed in 225.1101(9) and (9)(ii), use the
following provision, which does not use the phrases ``Bahrainian end
product,'' ``Free Trade Agreement country,'' ``Free Trade Agreement
country end product,'' ``Moroccan end product,'' ``Panamanian end
product,'' and ``Peruvian end products'' in paragraph (a); does not
use ``Free Trade Agreement country end products other than
Bahrainian end products, Moroccan end products, Panamanian end
products, or Peruvian end products'' in paragraphs (b)(2) and
(c)(2)(ii); does not use ``Australian or'' in paragraph (c)(2)(i);
and includes ``that are mined, produced, or manufactured in the
United States'' in paragraph (c)(2)(ii):
[[Page 37952]]
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate I (Date)
* * * * *
(c) Certifications and identification of country of origin.
(1) For all line items subject to the Buy American--Free Trade
Agreements--Balance of Payments Program--Alternate I clause of this
solicitation, the Offeror certifies that--
(i) Each end product, except the end products listed in
paragraph (c)(2) of this provision, is a domestic end product;
(ii) Each domestic end product listed in paragraph (c)(3) of
this provision contains a critical component or a critical item; and
(iii) Components of unknown origin are considered to have been
mined, produced, or manufactured outside the United States or a
qualifying country.
(2) The Offeror shall identify all end products that are not
domestic end products.
(i) The Offeror certifies that the following supplies are
qualifying country end products:
(Line item No.) (Country of origin)
(ii) The following supplies are other foreign end products,
including end products manufactured in the United States that do not
qualify as domestic end products. For those foreign end products
that do not consist wholly or predominantly of iron or steel or a
combination of both, the Offeror shall also indicate whether these
foreign end products exceed 55 percent domestic content, except
those that are COTS items that are mined, produced, or manufactured
in the United States. If the percentage of the domestic content is
unknown, select ``no''.
------------------------------------------------------------------------
Exceeds 55%
Line item No. Country of origin domestic content
(if known) (yes/no)
------------------------------------------------------------------------
------------------------------------------------------------------------
(3) The Offeror shall list the line item numbers of domestic end
products that contain a critical component or a critical item (see
section 25.105 of the Federal Acquisition Regulation).
Line item No.----------------------------------------------------------
[List as necessary]
* * * * *
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate II (Date)
* * * * *
(c) Certifications and identification of country of origin.
(1) For all line items subject to the Buy American--Free Trade
Agreements--Balance of Payments Program--Alternate II clause of this
solicitation, the Offeror certifies that--
(i) Each end product, except the end products listed in
paragraph (c)(2) of this provision, is a domestic end product;
(ii) Each domestic end product listed in paragraph (c)(3) of
this provision contains a critical component or a critical item; and
(iii) Components of unknown origin are considered to have been
mined, produced, or manufactured outside the United States or a
qualifying country.
(2) The Offeror shall identify all end products that are not
domestic end products.
(i) The Offeror certifies that the following supplies are
qualifying country (except Australian) or SC/CASA state end
products:
(Line item No.) (Country of origin)
(ii) The Offeror certifies that the following supplies are Free
Trade Agreement country end products other than Bahrainian end
products, Moroccan end products, Panamanian end products, or
Peruvian end products:
(Line item No.) (Country of origin)
(iii) The following supplies are other foreign end products,
including end products manufactured in the United States that do not
qualify as domestic end products. For those foreign end products
that do not consist wholly or predominantly of iron or steel or a
combination of both, the Offeror shall also indicate whether these
foreign end products exceed 55 percent domestic content, except
those that are COTS items. If the percentage of the domestic content
is unknown, select ``no''.
------------------------------------------------------------------------
Exceeds 55%
Line item No. Country of origin domestic content
(if known) (yes/no)
------------------------------------------------------------------------
------------------------------------------------------------------------
(3) The Offeror shall list the line item numbers of domestic end
products that contain a critical component or a critical item (see
section 25.105 of the Federal Acquisition Regulation).
Line item No.----------------------------------------------------------
[List as necessary]
* * * * *
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate III (Date)
* * * * *
(c) Certifications and identification of country of origin.
(1) For all line items subject to the Buy American--Free Trade
Agreements--Balance of Payments Program--Alternate III clause of
this solicitation, the Offeror certifies that--
(i) Each end product, except the end products listed in
paragraph (c)(2) of this provision, is a domestic end product;
(ii) Each domestic end product listed in paragraph (c)(3) of
this provision contains a critical component or a critical item; and
(iii) Components of unknown origin are considered to have been
mined, produced, or manufactured outside the United States or a
qualifying country.
(2) The Offeror shall identify all end products that are not
domestic end products.
(i) The Offeror certifies that the following supplies are
qualifying country or SC/CASA state end products:
(Line item No.) (Country of origin)
(ii) The Offeror certifies that the following supplies are Free
Trade Agreement country end products other than Bahrainian end
products, Moroccan end products, Panamanian end products, or
Peruvian end products:
(Line item No.) (Country of origin)
(iii) The following supplies are other foreign end products,
including end products manufactured in the United States that do not
qualify as domestic end products. For those foreign end products
that do not consist wholly or predominantly of iron or steel or a
combination of both, the Offeror shall also indicate whether these
foreign end products exceed 55 percent domestic content, except
those that are COTS items. If the percentage of the domestic content
is unknown, select ``no''.
[[Page 37953]]
------------------------------------------------------------------------
Exceeds 55%
Line item No. Country of origin domestic content
(if known) (yes/no)
------------------------------------------------------------------------
------------------------------------------------------------------------
(3) The Offeror shall list the line item numbers of domestic end
products that contain a critical component or a critical item (see
section 25.105 of the Federal Acquisition Regulation).
Line item No.----------------------------------------------------------
[List as necessary]
* * * * *
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate IV (Date)
* * * * *
(c) Certifications and identification of country of origin.
(1) For all line items subject to the Buy American--Free Trade
Agreements--Balance of Payments Program--Alternate IV clause of this
solicitation, the Offeror certifies that--
(i) Each end product, except the end products listed in
paragraph (c)(2) of this provision, is a domestic end product;
(ii) Each domestic end product listed in paragraph (c)(3) of
this provision contains a critical component or a critical item; and
(iii) Components of unknown origin are considered to have been
mined, produced, or manufactured outside the United States or a
qualifying country.
(2) The Offeror shall identify all end products that are not
domestic end products.
(i) The Offeror certifies that the following supplies are
qualifying country (except Australian) end products:
(Line item No.) (Country of origin)
(ii) The Offeror certifies that the following supplies are Free
Trade Agreement country end products other than Bahrainian end
products, Korean end products, Moroccan end products, Panamanian end
products, or Peruvian end products:
(Line item No.) (Country of origin)
(iii) The following supplies are other foreign end products,
including end products manufactured in the United States that do not
qualify as domestic end products. For those foreign end products
that do not consist wholly or predominantly of iron or steel or a
combination of both, the Offeror shall also indicate whether these
foreign end products exceed 55 percent domestic content, except
those that are COTS items. If the percentage of the domestic content
is unknown, select ``no''.
------------------------------------------------------------------------
Exceeds 55%
Line item No. Country of origin domestic content
(if known) (yes/no)
------------------------------------------------------------------------
------------------------------------------------------------------------
(3) The Offeror shall list the line item numbers of domestic end
products that contain a critical component or a critical item (see
section 25.105 of the Federal Acquisition Regulation).
Line item No.----------------------------------------------------------
[List as necessary]
* * * * *
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate V (Date)
* * * * *
(c) Certifications and identification of country of origin.
(1) For all line items subject to the Buy American--Free Trade
Agreements--Balance of Payments Program--Alternate V clause of this
solicitation, the Offeror certifies that--
(i) Each end product, except the end products listed in
paragraph (c)(2) of this provision, is a domestic end product;
(ii) Each domestic end product listed in paragraph (c)(3) of
this provision contains a critical component or a critical item; and
(iii) Components of unknown origin are considered to have been
mined, produced, or manufactured outside the United States or a
qualifying country.
(2) The Offeror shall identify all end products that are not
domestic end products.
(i) The Offeror certifies that the following supplies are
qualifying country (except Australian) or SC/CASA state end
products:
(Line item No.) (Country of origin)
(ii) The Offeror certifies that the following supplies are Free
Trade Agreement country end products other than Bahrainian end
products, Korean end products, Moroccan end products, Panamanian end
products, or Peruvian end products:
(Line item No.) (Country of origin)
(iii) The following supplies are other foreign end products,
including end products manufactured in the United States that do not
qualify as domestic end products. For those foreign end products
that do not consist wholly or predominantly of iron or steel or a
combination of both, the Offeror shall also indicate whether these
foreign end products exceed 55 percent domestic content, except
those that are COTS items. If the percentage of the domestic content
is unknown, select ``no''.
------------------------------------------------------------------------
Exceeds 55%
Line item No. Country of origin domestic content
(if known) (yes/no)
------------------------------------------------------------------------
------------------------------------------------------------------------
(3) The Offeror shall list the line item numbers of domestic end
products that contain a critical component or a critical item (see
section 25.105 of the Federal Acquisition Regulation).
Line item No.----------------------------------------------------------
[List as necessary]
* * * * *
0
15. Amend section 252.225-7036--
0
a. By revising the clause date;
0
b. In paragraph (a)--
0
i. In the definition of ``Commercially available off-the-shelf (COTS)
item'' paragraph (1)(i) by removing ``Federal Acquisition Regulation''
and adding ``Federal Acquisition Regulation (FAR)'' in its place;
0
ii. By adding, in alphabetical order, the definitions of ``Critical
component'' and ``Critical item'';
0
iii. In the definition of ``Domestic end product'' by revising the
first sentence of paragraph (1)(ii)(A) introductory text;
0
iv. In the definition of ``Qualifying country end product'' by revising
paragraph (2)(i) introductory text;
0
c. In Alternate I--
0
i. By revising the clause date;
0
ii. In paragraph (a)--
[[Page 37954]]
0
A. In the definition of ``Commercially available off-the-shelf (COTS)
item'' paragraph (1)(i) by removing ``Federal Acquisition Regulation''
and adding ``Federal Acquisition Regulation (FAR)'' in its place;
0
B. By adding, in alphabetical order, the definitions of ``Critical
component'' and ``Critical item'';
0
C. In the definition of ``Domestic end product'' by revising the first
sentence of paragraph (1)(ii)(A) introductory text;
0
D. In the definition of ``Qualifying country end product'' by revising
paragraph (2)(i) introductory text;
0
iii. In paragraph (c) by removing ``qualifying country, or other'' and
adding ``qualifying country or other'' in its place;
0
d. In Alternate II--
0
i. By revising the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS)
item'' paragraph (1)(i) by removing ``Federal Acquisition Regulation''
and adding ``Federal Acquisition Regulation (FAR)'' in its place;
0
B. By adding, in alphabetical order, the definitions of ``Critical
component'' and ``Critical item'';
0
C. In the definition of ``Domestic end product'' by revising the first
sentence of paragraph (1)(ii)(A) introductory text and redesignating
paragraph (1)(C) as paragraph (1)(B);
0
D. In the definition of ``Qualifying country end product'' revising
paragraph (2)(i) introductory text;
0
e. In Alternate III--
0
i. By revising the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS)
item'' in paragraph (1)(i) by removing ``Federal Acquisition
Regulation'' and adding ``Federal Acquisition Regulation (FAR)'' in its
place;
0
B. By adding, in alphabetical order, the definitions of ``Critical
component'' and ``Critical item'';
0
C. In the definition of ``Domestic end product'' by revising the first
sentence of paragraph (1)(ii)(A) introductory text;
0
D. In the definition ``Qualifying country end product'' by revising
paragraph (2)(i) introductory text;
0
f. In Alternate IV--
0
i. By revising the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS)
item'' paragraph (1)(i) by removing ``Federal Acquisition Regulation''
and adding ``Federal Acquisition Regulation (FAR)'' in its place;
0
B. By adding, in alphabetical order, the definitions of ``Critical
component'' and ``Critical item'';
0
C. In the definition of ``Domestic end product'' by revising the first
sentence of paragraph (1)(ii)(A) introductory text;
0
D. In the definition of ``Qualifying country end product'' by revising
paragraph (2)(i) introductory text;
0
g. In Alternate V--
0
i. By revising the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS)
item'' paragraph (1)(i) by removing ``Federal Acquisition Regulation''
and adding ``Federal Acquisition Regulation (FAR)'' in its place;
0
B. By adding, in alphabetical order, the definitions of ``Critical
component'' and ``Critical item'';
0
C. In the definition of ``Domestic end product'' by revising the first
sentence of paragraph (1)(ii)(A) introductory text;
0
D. In the definition of ``Qualifying country end product'' by revising
paragraph (2)(i) introductory text; and
0
h. By adding Alternates VI through XI.
The revisions and additions read as follows:
252.225-7036 Buy American--Free Trade Agreements--Balance of Payments
Program.
* * * * *
Buy American--Free Trade Agreements--Balance of Payments Program--Basic
(Date)
(a) * * *
* * * * *
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
Domestic end product means--
(1) * * *
(ii) * * *
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 60 percent of the cost of all its components, except
that the percentage will be 65 percent for items delivered in
calendar years 2024 through 2028 and 75 percent for items delivered
starting in calendar year 2029, unless an alternate percentage is
established for a contract in accordance with Defense Federal
Acquisition Regulation Supplement (DFARS) 225.101(d); or award is
made before January 1, 2030, for a foreign end product that exceeds
55 percent domestic content (see DFARS 225.103(b)(ii)). * * *
* * * * *
Qualifying country end product means-- * * *
(2) * * *
(i) The cost of the following types of components exceeds 60
percent of the cost of all its components, except that the
percentage will be 65 percent for items delivered in calendar years
2024 through 2028 and 75 percent for items delivered starting in
calendar year 2029, unless an alternate percentage is established
for a contract: * * *
* * * * *
Alternate I. * * *
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate I (Date)
(a) * * *
* * * * *
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
Domestic end product means--
(1) * * *
(ii) * * *
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 60 percent of the cost of all its components, except
that the percentage will be 65 percent for items delivered in
calendar years 2024 through 2028 and 75 percent for items delivered
starting in calendar year 2029, unless an alternate percentage is
established for a contract in accordance with Defense Federal
Acquisition Regulation Supplement (DFARS) 225.101(d); or award is
made before January 1, 2030, for a foreign end product that exceeds
55 percent domestic content (see DFARS 225.103(b)(ii)). * * *
* * * * *
Qualifying country end product means-- * * *
(2) * * *
(i) The cost of the following types of components exceeds 60
percent of the cost of all its components, except that the
percentage will be 65 percent for items delivered in calendar years
2024 through 2028 and 75 percent for items delivered starting in
calendar year 2029, unless an alternate percentage is established
for a contract: * * *
* * * * *
Alternate II. * * *
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate II (Date)
(a) * * *
* * * * *
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
Domestic end product means--
(1) * * *
(ii) * * *
[[Page 37955]]
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 60 percent of the cost of all its components, except
that the percentage will be 65 percent for items delivered in
calendar years 2024 through 2028 and 75 percent for items delivered
starting in calendar year 2029, unless an alternate percentage is
established for a contract in accordance with Defense Federal
Acquisition Regulation Supplement (DFARS) 225.101(d); or award is
made before January 1, 2030, for a foreign end product that exceeds
55 percent domestic content (see DFARS 225.103(b)(ii)). * * *
* * * * *
Qualifying country end product means-- * * *
(2) * * *
(i) The cost of the following types of components exceeds 60
percent of the cost of all its components, except that the
percentage will be 65 percent for items delivered in calendar years
2024 through 2028 and 75 percent for items delivered starting in
calendar year 2029, unless an alternate percentage is established
for a contract: * * *
* * * * *
Alternate III. * * *
Buy American--Free Trade Agreements--Balance Of Payments Program--
Alternate III (Date)
(a) * * *
* * * * *
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
Domestic end product means--
(1) * * *
(ii) * * *
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 60 percent of the cost of all its components, except
that the percentage will be 65 percent for items delivered in
calendar years 2024 through 2028 and 75 percent for items delivered
starting in calendar year 2029, unless an alternate percentage is
established for a contract in accordance with Defense Federal
Acquisition Regulation Supplement (DFARS) 225.101(d); or award is
made before January 1, 2030, for a foreign end product that exceeds
55 percent domestic content (see DFARS 225.103(b)(ii)). * * *
* * * * *
Qualifying country end product means-- * * *
(2) * * *
(i) The cost of the following types of components exceeds 60
percent of the cost of all its components, except that the
percentage will be 65 percent for items delivered in calendar years
2024 through 2028 and 75 percent for items delivered starting in
calendar year 2029, unless an alternate percentage is established
for a contract: * * *
* * * * *
Alternate IV. * * *
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate IV (Date)
(a) * * *
* * * * *
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
Domestic end product means--
(1) * * *
(ii) * * *
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 60 percent of the cost of all its components, except
that the percentage will be 65 percent for items delivered in
calendar years 2024 through 2028 and 75 percent for items delivered
starting in calendar year 2029, unless an alternate percentage is
established for a contract in accordance with Defense Federal
Acquisition Regulation Supplement (DFARS) 225.101(d); or award is
made before January 1, 2030, for a foreign end product that exceeds
55 percent domestic content (see DFARS 225.103(b)(ii)). * * *
* * * * *
Qualifying country end product means-- * * *
(2) * * *
(i) The cost of the following types of components exceeds 60
percent of the cost of all its components, except that the
percentage will be 65 percent for items delivered in calendar years
2024 through 2028 and 75 percent for items delivered starting in
calendar year 2029, unless an alternate percentage is established
for a contract: * * *
* * * * *
Alternate V. * * *
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate V (Date)
(a) * * *
* * * * *
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
Domestic end product means--
(1) * * *
(ii) * * *
(A) The cost of its qualifying country components and its
components that are mined, produced, or manufactured in the United
States exceeds 60 percent of the cost of all its components, except
that the percentage will be 65 percent for items delivered in
calendar years 2024 through 2028 and 75 percent for items delivered
starting in calendar year 2029, unless an alternate percentage is
established for a contract in accordance with Defense Federal
Acquisition Regulation Supplement (DFARS) 225.101(d); or award is
made before January 1, 2030, for a foreign end product that exceeds
55 percent domestic content (see DFARS 225.103(b)(ii)). * * *
* * * * *
Qualifying country end product means-- * * *
(2) * * *
(i) The cost of the following types of components exceeds 60
percent of the cost of all its components, except that the
percentage will be 65 percent for items delivered in calendar years
2024 through 2028 and 75 percent for items delivered starting in
calendar year 2029, unless an alternate percentage is established
for a contract: * * *
* * * * *
Alternate VI. As prescribed in 225.1101(10)(i) and (10)(i)(G), use
the following clause, which includes, in the definitions of domestic
end product at paragraph (1)(ii)(A) and qualifying country end product
at paragraph (2)(i), the domestic content threshold that will apply to
the entire contract period of performance:
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate VI (Date)
(a) Definitions. As used in this clause--
Bahrainian end product means an article that--
(1) Is wholly the growth, product, or manufacture of Bahrain; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Bahrain into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Commercially available off-the-shelf (COTS) item--
(1) Means any item of supply (including construction material)
that is--
(i) A commercial product (as defined in paragraph (1) of the
definition of ``commercial product'' in section 2.101 of the Federal
Acquisition Regulation (FAR));
(ii) Sold in substantial quantities in the commercial
marketplace; and
(iii) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
[[Page 37956]]
(2) Does not include bulk cargo, as defined in 46 U.S.C.
40102(4), such as agricultural products and petroleum products.
Component means an article, material, or supply incorporated
directly into an end product.
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
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, for the entire period of performance for a contract
awarded in: calendar year 2023, 60 percent of the cost of all its
components; calendar years 2024 through 2028, 65 percent of the cost
of all its components; or calendar year 2029 or later, 75 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.
End product means those articles, materials, and supplies to be
acquired under this contract for public use.
Foreign end product means an end product other than a domestic
end product.
Free Trade Agreement country means Australia, Bahrain, Chile,
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala,
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama,
Peru, or Singapore.
Free Trade Agreement country end product means an article that--
(1) Is wholly the growth, product, or manufacture of a Free
Trade Agreement country; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in a Free Trade Agreement country into a new and
different article of commerce with a name, character, or use
distinct from that of the article or articles from which it was
transformed. The term refers to a product offered for purchase under
a supply contract, but for purposes of calculating the value of the
end product includes services (except transportation services)
incidental to its supply, provided that the value of those
incidental services does not exceed the value of the product itself.
Moroccan end product means an article that--
(1) Is wholly the growth, product, or manufacture of Morocco; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Morocco into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Panamanian end product means an article that--
(1) Is wholly the growth, product, or manufacture of Panama; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Panama into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Peruvian end product means an article that--
(1) Is wholly the growth, product, or manufacture of Peru; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Peru into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
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 means a country with a reciprocal defense
procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove
barriers to purchases of supplies produced in the other country or
services performed by sources of the other country, and the
memorandum or agreement complies, where applicable, with the
requirements of section 36 of the Arms Export Control Act (22 U.S.C.
2776) and with 10 U.S.C. 2457. Accordingly, the following are
qualifying countries:
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Greece
Israel
Italy
Japan
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Portugal
Slovenia
Spain
Sweden
Switzerland
[[Page 37957]]
Turkey
United Kingdom of Great Britain and Northern Ireland
Qualifying country component means a component mined, produced,
or manufactured in a qualifying country.
Qualifying country end product means--
(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, for
the entire period of performance for a contract awarded in: calendar
year 2023, 60 percent of the cost of all its components; calendar
years 2024 through 2028, 65 percent of the cost of all its
components; or calendar year 2029 or later, 75 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.
United States means the 50 States, the District of Columbia, and
outlying areas.
(b) Unless otherwise specified, this clause applies to all items
in the Schedule.
(c) The Contractor shall deliver under this contract only
domestic end products unless, in its offer, it specified delivery of
qualifying country end products, Free Trade Agreement country end
products other than Bahrainian end products, Moroccan end products,
Panamanian end products, or Peruvian end products, or other foreign
end products in the Buy American--Free Trade Agreements--Balance of
Payments Program Certificate--Basic provision of the solicitation.
If the Contractor certified in its offer that it will deliver a
qualifying country end product or a Free Trade Agreement country end
product other than a Bahrainian end product, a Moroccan end product,
a Panamanian end product, or a Peruvian end product, the Contractor
shall deliver a qualifying country end product, a Free Trade
Agreement country end product other than a Bahrainian end product, a
Moroccan end product, a Panamanian end product, or a Peruvian end
product, or, at the Contractor's option, a domestic end product.
(d) The contract price does not include duty for end products or
components for which the Contractor will claim duty-free entry.
(End of clause)
Alternate VII. As prescribed in 225.1101(10)(i) and (10)(i)(H), use
the following clause, which includes, in the definitions of domestic
end product at paragraph (1)(ii)(A) and qualifying country end product
at paragraph (2)(i), the domestic content threshold that will apply to
the entire contract period of performance and uses a different
paragraph (c) than the basic clause:
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate VII (Date)
(a) Definitions. As used in this clause--
Bahrainian end product means an article that--
(1) Is wholly the growth, product, or manufacture of Bahrain; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Bahrain into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Commercially available off-the-shelf (COTS) item--
(1) Means any item of supply (including construction material)
that is--
(i) A commercial product (as defined in paragraph (1) of the
definition of ``commercial product'' in section 2.101 of the Federal
Acquisition Regulation (FAR));
(ii) Sold in substantial quantities in the commercial
marketplace; and
(iii) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(2) Does not include bulk cargo, as defined in 46 U.S.C.
40102(4), such as agricultural products and petroleum products.
Component means an article, material, or supply incorporated
directly into an end product.
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
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, for the entire period of performance for a contract
awarded in: calendar year 2023, 60 percent of the cost of all its
components; calendar years 2024 through 2028, 65 percent of the cost
of all its components; or calendar year 2029 or later, 75 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.
End product means those articles, materials, and supplies to be
acquired under this contract for public use.
``Foreign end product'' means an end product other than a
domestic end product.
Free Trade Agreement country means Australia, Bahrain, Chile,
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala,
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama,
Peru, or Singapore.
Free Trade Agreement country end product means an article that--
(1) Is wholly the growth, product, or manufacture of a Free
Trade Agreement country; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in a Free Trade Agreement country into a new and
different article of commerce with a name, character, or use
distinct from that
[[Page 37958]]
of the article or articles from which it was transformed. The term
refers to a product offered for purchase under a supply contract,
but for purposes of calculating the value of the end product
includes services (except transportation services) incidental to its
supply, provided that the value of those incidental services does
not exceed the value of the product itself.
Moroccan end product means an article that--
(1) Is wholly the growth, product, or manufacture of Morocco; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Morocco into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Panamanian end product means an article that--
(1) Is wholly the growth, product, or manufacture of Panama; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Panama into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Peruvian end product means an article that--
(1) Is wholly the growth, product, or manufacture of Peru; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Peru into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
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 means a country with a reciprocal defense
procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove
barriers to purchases of supplies produced in the other country or
services performed by sources of the other country, and the
memorandum or agreement complies, where applicable, with the
requirements of section 36 of the Arms Export Control Act (22 U.S.C.
2776) and with 10 U.S.C. 2457. Accordingly, the following are
qualifying countries:
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Greece
Israel
Italy
Japan
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Portugal
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland.
Qualifying country component means a component mined, produced,
or manufactured in a qualifying country.
Qualifying country end product means--
(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, for
the entire period of performance for a contract awarded in: calendar
year 2023, 60 percent of the cost of all its components; calendar
years 2024 through 2028, 65 percent of the cost of all its
components; or calendar year 2029 or later, 75 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.
United States means the 50 States, the District of Columbia, and
outlying areas.
(b) Unless otherwise specified, this clause applies to all items
in the Schedule.
(c) The Contractor shall deliver under this contract only
domestic end products unless, in its offer, it specified delivery of
qualifying country or other foreign end products in the Buy
American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate I provision of the solicitation. If the
Contractor certified in its offer that it will deliver a qualifying
country end product, the Contractor shall deliver a qualifying
country end product or, at the Contractor's option, a domestic end
product.
(d) The contract price does not include duty for end products or
components for which the Contractor will claim duty-free entry.
(End of clause)
Alternate VIII. As prescribed in 225.1101(10)(i) and (10)(i)(I),
use the following clause, which includes, in the definitions of
domestic end product at paragraph (1)(ii)(A) and qualifying country end
product at paragraph (2)(i), the domestic content threshold that will
apply to the entire contract period of performance; adds South
Caucasus/Central and South Asian (SC/CASA) state and South Caucasus/
Central and South Asian (SC/CASA) state end product to paragraph (a);
and uses a different paragraph (c) than the basic clause:
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate VIII (Date)
(a) Definitions. As used in this clause--
Bahrainian end product means an article that--
(1) Is wholly the growth, product, or manufacture of Bahrain; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Bahrain into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Commercially available off-the-shelf (COTS) item--
(1) Means any item of supply (including construction material)
that is--
(i) A commercial product (as defined in paragraph (1) of the
definition of ``commercial product'' in section 2.101 of the Federal
Acquisition Regulation (FAR));
(ii) Sold in substantial quantities in the commercial
marketplace; and
(iii) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
[[Page 37959]]
(2) Does not include bulk cargo, as defined in 46 U.S.C.
40102(4), such as agricultural products and petroleum products.
Component means an article, material, or supply incorporated
directly into an end product.
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
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, for the entire period of performance for a contract
awarded in: calendar year 2023, 60 percent of the cost of all its
components; calendar years 2024 through 2028, 65 percent of the cost
of all its components; or calendar year 2029 or later, 75 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.
End product means those articles, materials, and supplies to be
acquired under this contract for public use.
Foreign end product means an end product other than a domestic
end product.
Free Trade Agreement country means Australia, Bahrain, Chile,
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala,
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama,
Peru, or Singapore.
Free Trade Agreement country end product means an article that--
(1) Is wholly the growth, product, or manufacture of a Free
Trade Agreement country; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in a Free Trade Agreement country into a new and
different article of commerce with a name, character, or use
distinct from that of the article or articles from which it was
transformed. The term refers to a product offered for purchase under
a supply contract, but for purposes of calculating the value of the
end product includes services (except transportation services)
incidental to its supply, provided that the value of those
incidental services does not exceed the value of the product itself.
Moroccan end product means an article that--
(1) Is wholly the growth, product, or manufacture of Morocco; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Morocco into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Panamanian end product means an article that--
(1) Is wholly the growth, product, or manufacture of Panama; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Panama into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Peruvian end product means an article that--
(1) Is wholly the growth, product, or manufacture of Peru; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Peru into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
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 means a country with a reciprocal defense
procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove
barriers to purchases of supplies produced in the other country or
services performed by sources of the other country, and the
memorandum or agreement complies, where applicable, with the
requirements of section 36 of the Arms Export Control Act (22 U.S.C.
2776) and with 10 U.S.C. 2457. Accordingly, the following are
qualifying countries:
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Greece
Israel
Italy
Japan
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Portugal
Slovenia
Spain
Sweden
Switzerland
[[Page 37960]]
Turkey
United Kingdom of Great Britain and Northern Ireland
Qualifying country component means a component mined, produced,
or manufactured in a qualifying country.
Qualifying country end product means--
(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, for
the entire period of performance for a contract awarded in: calendar
year 2023, 60 percent of the cost of all its components; calendar
years 2024 through 2028, 65 percent of the cost of all its
components; or calendar year 2029 or later, 75 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.
South Caucasus/Central and South Asian (SC/CASA) state means
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan,
Tajikistan, Turkmenistan, or Uzbekistan.
South Caucasus/Central and South Asian (SC/CASA) state end
product means an article that--
(1) Is wholly the growth, product, or manufacture of an SC/CASA
state; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in an SC/CASA state into a new and different article of
commerce with a name, character, or use distinct from that of the
article or articles from which it was transformed. The term refers
to a product offered for purchase under a supply contract, but for
purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
United States means the 50 States, the District of Columbia, and
outlying areas.
(b) Unless otherwise specified, this clause applies to all items
in the Schedule.
(c) The Contractor shall deliver under this contract only
domestic end products unless, in its offer, it specified delivery of
qualifying country end products, SC/CASA state end products, Free
Trade Agreement country end products other than Bahrainian end
products, Moroccan end products, Panamanian end products, or
Peruvian end products, or other foreign end products in the Buy
American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate II provision of the solicitation. If the
Contractor certified in its offer that it will deliver a qualifying
country end product, SC/CASA state end products, or a Free Trade
Agreement country end product other than a Bahrainian end product, a
Moroccan end product, a Panamanian end product, or a Peruvian end
product, the Contractor shall deliver a qualifying country end
product, an SC/CASA state end product, a Free Trade Agreement
country end product other than a Bahrainian end product, a Moroccan
end product, a Panamanian end product, or a Peruvian end product or,
at the Contractor's option, a domestic end product.
(d) The contract price does not include duty for end products or
components for which the Contractor will claim duty-free entry.
(End of clause)
Alternate IX. As prescribed in 225.1101(10)(i) and (10)(i)(J), use
the following clause, which includes in the definitions of domestic end
product at paragraph (1)(ii)(A) and qualifying country end product at
paragraph (2)(i) the domestic content threshold that will apply to the
entire contract period of performance; adds South Caucasus/Central and
South Asian (SC/CASA) state and South Caucasus/Central and South Asian
(SC/CASA) state end product to paragraph (a); and uses a different
paragraph (c) than the basic clause:
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate IX (Date)
(a) Definitions. As used in this clause--
Bahrainian end product means an article that--
(1) Is wholly the growth, product, or manufacture of Bahrain; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Bahrain into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Commercially available off-the-shelf (COTS) item--
(1) Means any item of supply (including construction material)
that is--
(i) A commercial product (as defined in paragraph (1) of the
definition of ``commercial product'' in section 2.101 of the Federal
Acquisition Regulation (FAR));
(ii) Sold in substantial quantities in the commercial
marketplace; and
(iii) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(2) Does not include bulk cargo, as defined in 46 U.S.C.
40102(4), such as agricultural products and petroleum products.
Component means an article, material, or supply incorporated
directly into an end product.
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
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, for the entire period of performance for a contract
awarded in: calendar year 2023, 60 percent of the cost of all its
components; calendar years 2024 through 2028, 65 percent of the cost
of all its components; or calendar year 2029 or later, 75 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
[[Page 37961]]
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.
End product means those articles, materials, and supplies to be
acquired under this contract for public use.
Foreign end product means an end product other than a domestic
end product.
Free Trade Agreement country means Australia, Bahrain, Chile,
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala,
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama,
Peru, or Singapore.
Free Trade Agreement country end product means an article that--
(1) Is wholly the growth, product, or manufacture of a Free
Trade Agreement country; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in a Free Trade Agreement country into a new and
different article of commerce with a name, character, or use
distinct from that of the article or articles from which it was
transformed. The term refers to a product offered for purchase under
a supply contract, but for purposes of calculating the value of the
end product includes services (except transportation services)
incidental to its supply, provided that the value of those
incidental services does not exceed the value of the product itself.
Moroccan end product means an article that--
(1) Is wholly the growth, product, or manufacture of Morocco; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Morocco into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Panamanian end product means an article that--
(1) Is wholly the growth, product, or manufacture of Panama; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Panama into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Peruvian end product means an article that--
(1) Is wholly the growth, product, or manufacture of Peru; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Peru into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
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 means a country with a reciprocal defense
procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove
barriers to purchases of supplies produced in the other country or
services performed by sources of the other country, and the
memorandum or agreement complies, where applicable, with the
requirements of section 36 of the Arms Export Control Act (22 U.S.C.
2776) and with 10 U.S.C. 2457. Accordingly, the following are
qualifying countries:
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Greece
Israel
Italy
Japan
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Portugal
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland
Qualifying country component means a component mined, produced,
or manufactured in a qualifying country.
Qualifying country end product means--
(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, for
the entire period of performance for a contract awarded in: calendar
year 2023, 60 percent of the cost of all its components; calendar
years 2024 through 2028, 65 percent of the cost of all its
components; or calendar year 2029 or later, 75 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.
South Caucasus/Central and South Asian (SC/CASA) state means
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan,
Tajikistan, Turkmenistan, or Uzbekistan.
South Caucasus/Central and South Asian (SC/CASA) state end
product means an article that--
(1) Is wholly the growth, product, or manufacture of an SC/CASA
state; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in an SC/CASA state into a new and different article of
commerce with a name, character, or use distinct from that of the
article or articles from which it was transformed. The term refers
to a product offered for purchase under a supply contract, but for
purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
United States means the 50 States, the District of Columbia, and
outlying areas.
(b) Unless otherwise specified, this clause applies to all items
in the Schedule.
(c) The Contractor shall deliver under this contract only
domestic end products unless, in its offer, it specified delivery of
qualifying country end products, SC/CASA state end products, or
other foreign end products in the Buy American--Free Trade
Agreements--Balance of Payments Program Certificate--Alternate III
provision of the solicitation. If the Contractor certified in its
offer that it will deliver a qualifying country end product or SC/
CASA state end products, the Contractor shall deliver a qualifying
country end product, an SC/CASA state end product, or, at the
Contractor's option, a domestic end product.
(d) The contract price does not include duty for end products or
components for
[[Page 37962]]
which the Contractor will claim duty-free entry.
(End of clause)
Alternate X. As prescribed in 225.1101(10)(i) and (10)(i)(K), use
the following clause, which includes, in the definitions of ``domestic
end product'' at paragraph (1)(ii)(A) and ``qualifying country end
product'' at paragraph (2)(i), the domestic content threshold that will
apply to the entire contract period of performance; adds ``Korean end
product'' to paragraph (a); and uses a different paragraph (c) than the
basic clause:
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate X (Date)
(a) Definitions. As used in this clause--
Bahrainian end product means an article that--
(1) Is wholly the growth, product, or manufacture of Bahrain; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Bahrain into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Commercially available off-the-shelf (COTS) item--
(1) Means any item of supply (including construction material)
that is--
(i) A commercial product (as defined in paragraph (1) of the
definition of ``commercial product'' in section 2.101 of the Federal
Acquisition Regulation (FAR));
(ii) Sold in substantial quantities in the commercial
marketplace; and
(iii) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(2) Does not include bulk cargo, as defined in 46 U.S.C.
40102(4), such as agricultural products and petroleum products.
Component means an article, material, or supply incorporated
directly into an end product.
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
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, for the entire period of performance for a contract
awarded in: calendar year 2023, 60 percent of the cost of all its
components; calendar years 2024 through 2028, 65 percent of the cost
of all its components; or calendar year 2029 or later, 75 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.
End product means those articles, materials, and supplies to be
acquired under this contract for public use.
Foreign end product means an end product other than a domestic
end product.
Free Trade Agreement country means Australia, Bahrain, Chile,
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala,
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama,
Peru, or Singapore.
Free Trade Agreement country end product means an article that--
(1) Is wholly the growth, product, or manufacture of a Free
Trade Agreement country; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in a Free Trade Agreement country into a new and
different article of commerce with a name, character, or use
distinct from that of the article or articles from which it was
transformed. The term refers to a product offered for purchase under
a supply contract, but for purposes of calculating the value of the
end product includes services (except transportation services)
incidental to its supply, provided that the value of those
incidental services does not exceed the value of the product itself.
Korean end product means an article that--
(1) Is wholly the growth, product, or manufacture of Korea; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Korea (Republic of) into a new and different article
of commerce with a name, character, or use distinct from that of the
article or articles from which it was transformed. The term refers
to a product offered for purchase under a supply contract, but for
purposes of calculating the value of the end product, includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.
Moroccan end product means an article that--
(1) Is wholly the growth, product, or manufacture of Morocco; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Morocco into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Panamanian end product means an article that--
(1) Is wholly the growth, product, or manufacture of Panama; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Panama into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided
[[Page 37963]]
that the value of those incidental services does not exceed the
value of the product itself.
Peruvian end product means an article that--
(1) Is wholly the growth, product, or manufacture of Peru; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Peru into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
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 means a country with a reciprocal defense
procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove
barriers to purchases of supplies produced in the other country or
services performed by sources of the other country, and the
memorandum or agreement complies, where applicable, with the
requirements of section 36 of the Arms Export Control Act (22 U.S.C.
2776) and with 10 U.S.C. 2457. Accordingly, the following are
qualifying countries:
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Greece
Israel
Italy
Japan
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Portugal
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland
Qualifying country component means a component mined, produced,
or manufactured in a qualifying country.
Qualifying country end product means--
(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, for
the entire period of performance for a contract awarded in: calendar
year 2023, 60 percent of the cost of all its components; calendar
years 2024 through 2028, 65 percent of the cost of all its
components; or calendar year 2029 or later, 75 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.
United States means the 50 States, the District of Columbia, and
outlying areas.
(b) Unless otherwise specified, this clause applies to all items
in the Schedule.
(c) The Contractor shall deliver under this contract only
domestic end products unless, in its offer, it specified delivery of
qualifying country end products, Free Trade Agreement country end
products other than Bahrainian end products, Korean end products,
Moroccan end products, Panamanian end products, or Peruvian end
products, or other foreign end products in the Buy American--Free
Trade Agreements--Balance of Payments Program Certificate--Alternate
IV provision of the solicitation. If the Contractor certified in its
offer that it will deliver a qualifying country end product or a
Free Trade Agreement country end product other than a Bahrainian end
product, a Korean end product, a Moroccan end product, a Panamanian
end product, or a Peruvian end product, the Contractor shall deliver
a qualifying country end product, a Free Trade Agreement country end
product other than a Bahrainian end product, a Korean end product, a
Moroccan end product, a Panamanian end product, or a Peruvian end
product, or, at the Contractor's option, a domestic end product.
(d) The contract price does not include duty for end products or
components for which the Contractor will claim duty-free entry.
(End of clause)
Alternate XI. As prescribed in 225.1101(10)(i) and (10)(i)(L), use
the following clause, which includes, in the definitions of ``domestic
end product'' at paragraph (1)(ii)(A) and ``qualifying country end
product'' at paragraph (2)(i), the domestic content threshold that will
apply to the entire contract period of performance; adds ``Korean end
product,'' ``South Caucasus/Central and South Asian (SC/CASA) state,''
and ``South Caucasus/Central and South Asian (SC/CASA) state end
product'' to paragraph (a); and uses a different paragraph (c) than the
basic clause:
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate XI (Date)
(a) Definitions. As used in this clause--
Bahrainian end product means an article that--
(1) Is wholly the growth, product, or manufacture of Bahrain; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Bahrain into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Commercially available off-the-shelf (COTS) item--
(1) Means any item of supply (including construction material)
that is--
(i) A commercial product (as defined in paragraph (1) of the
definition of ``commercial product'' in section 2.101 of the Federal
Acquisition Regulation (FAR));
(ii) Sold in substantial quantities in the commercial
marketplace; and
(iii) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(2) Does not include bulk cargo, as defined in 46 U.S.C.
40102(4), such as agricultural products and petroleum products.
Component means an article, material, or supply incorporated
directly into an end product.
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
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, for the entire period of performance for a contract
awarded in: calendar year 2023, 60 percent of the cost of
[[Page 37964]]
all its components; calendar years 2024 through 2028, 65 percent of
the cost of all its components; or calendar year 2029 or later, 75
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.
End product means those articles, materials, and supplies to be
acquired under this contract for public use.
Foreign end product means an end product other than a domestic
end product.
Free Trade Agreement country means Australia, Bahrain, Chile,
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala,
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama,
Peru, or Singapore.
Free Trade Agreement country end product means an article that--
(1) Is wholly the growth, product, or manufacture of a Free
Trade Agreement country; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in a Free Trade Agreement country into a new and
different article of commerce with a name, character, or use
distinct from that of the article or articles from which it was
transformed. The term refers to a product offered for purchase under
a supply contract, but for purposes of calculating the value of the
end product includes services (except transportation services)
incidental to its supply, provided that the value of those
incidental services does not exceed the value of the product itself.
Korean end product means an article that--
(1) Is wholly the growth, product, or manufacture of Korea; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Korea (Republic of) into a new and different article
of commerce with a name, character, or use distinct from that of the
article or articles from which it was transformed. The term refers
to a product offered for purchase under a supply contract, but for
purposes of calculating the value of the end product, includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.
Moroccan end product means an article that--
(1) Is wholly the growth, product, or manufacture of Morocco; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Morocco into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Panamanian end product means an article that--
(1) Is wholly the growth, product, or manufacture of Panama; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Panama into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
Peruvian end product means an article that--
(1) Is wholly the growth, product, or manufacture of Peru; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Peru into a new and different article of commerce
with a name, character, or use distinct from that of the article or
articles from which it was transformed. The term refers to a product
offered for purchase under a supply contract, but for purposes of
calculating the value of the end product includes services (except
transportation services) incidental to its supply, provided that the
value of those incidental services does not exceed the value of the
product itself.
``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 means a country with a reciprocal defense
procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove
barriers to purchases of supplies produced in the other country or
services performed by sources of the other country, and the
memorandum or agreement complies, where applicable, with the
requirements of section 36 of the Arms Export Control Act (22 U.S.C.
2776) and with 10 U.S.C. 2457. Accordingly, the following are
qualifying countries:
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Greece
Israel
Italy
Japan
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Portugal
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland.
Qualifying country component means a component mined, produced,
or manufactured in a qualifying country.
Qualifying country end product means--
(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, for
the entire period of
[[Page 37965]]
performance for a contract awarded in: calendar year 2023, 60
percent of the cost of all its components; calendar years 2024
through 2028, 65 percent of the cost of all its components; or
calendar year 2029 or later, 75 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.
South Caucasus/Central and South Asian (SC/CASA) state means
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan,
Tajikistan, Turkmenistan, or Uzbekistan.
South Caucasus/Central and South Asian (SC/CASA) state end
product means an article that--
(1) Is wholly the growth, product, or manufacture of an SC/CASA
state; or
(2) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in an SC/CASA state into a new and different article of
commerce with a name, character, or use distinct from that of the
article or articles from which it was transformed. The term refers
to a product offered for purchase under a supply contract, but for
purposes of calculating the value of the end product, includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
United States means the 50 States, the District of Columbia, and
outlying areas.
(b) Unless otherwise specified, this clause applies to all items
in the Schedule.
(c) The Contractor shall deliver under this contract only
domestic end products unless, in its offer, it specified delivery of
qualifying country end products, SC/CASA state end products, Free
Trade Agreement country end products other than Bahrainian end
products, Korean end products, Moroccan end products, Panamanian end
products, or Peruvian end products, or other foreign end products in
the Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate V provision of the solicitation. If the
Contractor certified in its offer that it will deliver a qualifying
country end product, SC/CASA state end products, or a Free Trade
Agreement country end product other than a Bahrainian end product, a
Korean end product, a Moroccan end product, a Panamanian end
product, or a Peruvian end product, the Contractor shall deliver a
qualifying country end product, an SC/CASA state end product, a Free
Trade Agreement country end product other than a Bahrainian end
product, a Korean end product, a Moroccan end product, a Panamanian
end product, or a Peruvian end product or, at the Contractor's
option, a domestic end product.
(d) The contract price does not include duty for end products or
components for which the Contractor will claim duty-free entry.
(End of clause)
0
16. Amend section 252.225-7044--
0
a. By revising the clause title and date;
0
b. In paragraph (a)--
0
i. In the definition of ``Commercially available off-the-shelf (COTS)
item'' in paragraph (1)(i) by removing ``Federal Acquisition
Regulation'' and adding ``Federal Acquisition Regulation (FAR)'' in its
place;
0
ii. By adding, in alphabetical order, the definitions of ``Critical
component'' and ``Critical item'';
0
iii. In the definition of ``Domestic construction material'' by
revising the first sentence of paragraph (1)(ii)(A);
0
c. In Alternate I--
0
i. By revising the clause title and date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS)
item'' in paragraph (1)(i) by removing ``Federal Acquisition
Regulation'' and adding ``Federal Acquisition Regulation (FAR)'' in its
place;
0
B. By adding, in alphabetical order, the definitions of ``Critical
component'' and ``Critical item'';
0
C. In the definition of ``Domestic construction material'' by revising
the first sentence of paragraph (1)(ii)(A); and
0
d. By adding Alternates II and III.
The revisions and additions read as follows:
252.225-7044 Balance of Payments Program--Construction Material.
* * * * *
Balance of Payments Program--Construction Material--Basic (Date)
(a) * * *
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
Domestic construction material means--
(1) * * *
(ii) * * *
(A) The cost of its components mined, produced, or manufactured
in the United States exceeds 60 percent of the cost of all its
components, except that the percentage will be 65 percent for items
delivered in calendar years 2024 through 2028 and 75 percent for
items delivered starting in calendar year 2029, unless an alternate
percentage is established for a contract in accordance with FAR
25.201(c). * * *
* * * * *
Alternate I. * * *
Balance of Payments Program--Construction Material--Alternate I (Date)
(a) * * *
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
Domestic construction material means--
(1) * * *
(ii) * * *
(A) The cost of its components mined, produced, or manufactured
in the United States exceeds 60 percent of the cost of all its
components, except that the percentage will be 65 percent for items
delivered in calendar years 2024 through 2028 and 75 percent for
items delivered starting in calendar year 2029, unless an alternate
percentage is established for a contract in accordance with FAR
25.201(c). * * *
* * * * *
Alternate II. As prescribed in 225.7503(a) and (a)(3), use the
following clause, which includes, in the definition of ``domestic
construction material'' at paragraph (1)(ii)(A), the domestic content
threshold that will apply to the entire contract period of performance:
Balance of Payments Program--Construction Material--Alternate II (Date)
(a) Definitions. As used in this clause--
Commercially available off-the-shelf (COTS) item--
(1) Means any item of supply (including construction material)
that is--
(i) A commercial product (as defined in paragraph (1) of the
definition of ``commercial product'' in section 2.101 of the Federal
Acquisition Regulation (FAR));
(ii) Sold in substantial quantities in the commercial
marketplace; and
(iii) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(2) Does not include bulk cargo, as defined in 46 U.S.C.
40102(4), such as agricultural products and petroleum products.
Component means any article, material, or supply incorporated
directly into construction material.
Construction material means an article, material, or supply
brought to the construction site by the Contractor or a
subcontractor for incorporation into the building or work. The term
also includes an item brought to the site preassembled from
articles, materials, or supplies. However, emergency life safety
systems, such as emergency lighting, fire alarm, and audio
evacuation systems, that are discrete systems incorporated into a
public building or work and that are produced as complete systems,
are evaluated as a single and distinct construction material
regardless of when or how the individual parts or components of
those systems are delivered to the
[[Page 37966]]
construction site. Materials purchased directly by the Government
are supplies, not construction material.
Cost of components means--
(1) For components purchased by the Contractor, the acquisition
cost, including transportation costs to the place of incorporation
into the end product (whether or not such costs are paid to a
domestic firm), and any applicable duty (whether or not a duty-free
entry certificate is issued); or
(2) For components manufactured by the Contractor, all costs
associated with the manufacture of the component, including
transportation costs as described in paragraph (1) of this
definition, plus allocable overhead costs, but excluding profit.
Cost of components does not include any costs associated with the
manufacture of the construction material.
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
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, for the entire period of performance
for a contract awarded in: calendar year 2023, 60 percent of the
cost of all its components; calendar years 2024 through 2028, 65
percent of the cost of all its components; or calendar year 2029 or
later, 75 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.
United States means the 50 States, the District of Columbia, and
outlying areas.
(b) Domestic preference. This clause implements the Balance of
Payments Program by providing a preference for domestic construction
material. The Contractor shall use only domestic construction
material in performing this contract, except for--
(1) Construction material valued at or below the simplified
acquisition threshold in FAR part 2;
(2) Information technology that is a commercial product; or
(3) The construction material or components listed by the
Government as follows:
[Contracting Officer to list applicable excepted materials or
indicate ``none''].
(End of clause)
Alternate III. As prescribed in 225.7503(a) and (a)(4), use the
following clause, which includes, in the definition of ``domestic
construction material'' at paragraph (1)(ii)(A), the domestic content
threshold that will apply to the entire period of performance; adds
definitions for ``South Caucasus/Central and South Asian (SC/CASA)
state'' and ``SC/CASA state construction material'' to paragraph (a);
and uses ``domestic construction material or SC/CASA state construction
material'' instead of ``domestic construction material'' in the second
sentence of paragraph (b):
Balance of Payments Program--Construction Material--Alternate III
(Date)
(a) Definitions. As used in this clause--
Commercially available off-the-shelf (COTS) item--
(1) Means any item of supply (including construction material)
that is--
(i) A commercial product (as defined in paragraph (1) of the
definition of ``commercial product'' in section 2.101 of the Federal
Acquisition Regulation (FAR));
(ii) Sold in substantial quantities in the commercial
marketplace; and
(iii) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(2) Does not include bulk cargo, as defined in 46 U.S.C.
40102(4), such as agricultural products and petroleum products.
Component means any article, material, or supply incorporated
directly into construction material.
Construction material means an article, material, or supply
brought to the construction site by the Contractor or a
subcontractor for incorporation into the building or work. The term
also includes an item brought to the site preassembled from
articles, materials, or supplies. However, emergency life safety
systems, such as emergency lighting, fire alarm, and audio
evacuation systems, that are discrete systems incorporated into a
public building or work and that are produced as complete systems,
are evaluated as a single and distinct construction material
regardless of when or how the individual parts or components of
those systems are delivered to the construction site. Materials
purchased directly by the Government are supplies, not construction
material.
Cost of components means--
(1) For components purchased by the Contractor, the acquisition
cost, including transportation costs to the place of incorporation
into the end product (whether or not such costs are paid to a
domestic firm), and any applicable duty (whether or not a duty-free
entry certificate is issued); or
(2) For components manufactured by the Contractor, all costs
associated with the manufacture of the component, including
transportation costs as described in paragraph (1) of this
definition, plus allocable overhead costs, but excluding profit.
Cost of components does not include any costs associated with the
manufacture of the construction material.
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
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, for the entire period of performance
for a contract awarded in: calendar year 2023, 60 percent of the
cost of all its components; calendar years 2024 through 2028, 65
percent of the cost of all its components; or calendar year 2029 or
later, 75 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
[[Page 37967]]
(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.
South Caucasus/Central and South Asian (SC/CASA) state means
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan,
Tajikistan, Turkmenistan, or Uzbekistan.
SC/CASA state construction material means construction material
that--
(1) Is wholly the growth, product, or manufacture of an SC/CASA
state; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in an SC/CASA state into a new and
different construction material distinct from the material from
which it was transformed.
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
United States means the 50 States, the District of Columbia, and
outlying areas.
(b) Domestic preference. This clause implements the Balance of
Payments Program by providing a preference for domestic construction
material. The Contractor shall use only domestic construction
material or SC/CASA state construction material in performing this
contract, except for--
(1) Construction material valued at or below the simplified
acquisition threshold in FAR part 2;
(2) Information technology that is a commercial product; or
(3) The construction material or components listed by the
Government as follows:
[Contracting Officer to list applicable excepted materials or
indicate ``none''].
(End of clause)
0
17. Amend section 252.225-7045--
0
a. By revising the clause date;
0
b. In paragraph (a)--
0
i. In the definition of ``Commercially available off-the-shelf (COTS)
item'' in paragraph (1)(i) by removing ``Federal Acquisition
Regulation'' and adding ``Federal Acquisition Regulation (FAR)'' in its
place;
0
ii. By adding, in alphabetical order, the definitions of ``Critical
component'' and ``Critical item'';
0
iii. In the definition of ``Domestic construction material'' by
revising the first sentence of paragraph (1)(ii)(A);
0
c. In Alternate I--
0
i. By revising the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS)
item'' in paragraph (1)(i) by removing ``Federal Acquisition
Regulation'' and adding ``Federal Acquisition Regulation (FAR)'' in its
place;
0
B. By adding, in alphabetical order, the definitions of ``Critical
component'' and ``Critical item'';
0
C. In the definition of ``Domestic construction material'' by revising
the first sentence of paragraph (1)(ii)(A);
0
d. In Alternate II--
0
i. By revising the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS)
item'' in paragraph (1)(i) by removing ``Federal Acquisition
Regulation'' and adding ``Federal Acquisition Regulation (FAR)'' in its
place;
0
B. By adding, in alphabetical order, the definitions of ``Critical
component'' and ``Critical item'';
0
C. In the definition of ``Domestic construction material'' by revising
the first sentence of paragraph (1)(ii)(A);
0
e. In Alternate III--
0
i. By revising the clause date;
0
ii In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS)
item'' in paragraph (1)(i) by removing ``Federal Acquisition
Regulation'' and adding ``Federal Acquisition Regulation (FAR)'' in its
place;
0
B. By adding, in alphabetical order, the definitions of ``Critical
component'' and ``Critical item'';
0
C. In the definition of ``Domestic construction material'' by revising
the first sentence of paragraph (1)(ii)(A); and
0
f. By adding Alternates IV through VII.
The revisions and additions read as follows:
252.225-7045 Balance of Payments Program--Construction Material Under
Trade Agreements.
* * * * *
Balance of Payments Program--Construction Material Under Trade
Agreements--Basic (Date)
(a) * * *
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
* * * * *
Domestic construction material means--
(1) * * *
(ii) * * *
(A) The cost of its components mined, produced, or manufactured in
the United States exceeds 60 percent of the cost of all its components,
except that the percentage will be 65 percent for items delivered in
calendar years 2024 through 2028 and 75 percent for items delivered
starting in calendar year 2029, unless an alternate percentage is
established for a contract in accordance with FAR 25.201(c). * * *
* * * * *
Alternate I. * * *
Balance of Payments Program--Construction Material Under Trade
Agreements--Alternate I (Date)
(a) * * *
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
* * * * *
Domestic construction material means--
(1) * * *
(ii) * * *
(A) The cost of its components mined, produced, or manufactured
in the United States exceeds 60 percent of the cost of all its
components, except that the percentage will be 65 percent for items
delivered in calendar years 2024 through 2028 and 75 percent for
items delivered starting in calendar year 2029, unless an alternate
percentage is established for a contract in accordance with FAR
25.201(c). * * *
* * * * *
Alternate II. * * *
Balance of Payments Program--Construction Material Under Trade
Agreements--Alternate II (Date)
(a) * * *
Critical component means a component that is mined, produced, or
manufactured in
[[Page 37968]]
the United States and deemed critical to the U.S. supply chain. The
list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
* * * * *
Domestic construction material means--
(1) * * *
(ii) * * *
(A) The cost of its components mined, produced, or manufactured
in the United States exceeds 60 percent of the cost of all its
components, except that the percentage will be 65 percent for items
delivered in calendar years 2024 through 2028 and 75 percent for
items delivered starting in calendar year 2029, unless an alternate
percentage is established for a contract in accordance with FAR
25.201(c). * * *
* * * * *
Alternate III. * * *
(a) * * *
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
* * * * *
Domestic construction material means--
(1) * * *
(ii) * * *
(A) The cost of its components mined, produced, or manufactured
in the United States exceeds 60 percent of the cost of all its
components, except that the percentage will be 65 percent for items
delivered in calendar years 2024 through 2028 and 75 percent for
items delivered starting in calendar year 2029, unless an alternate
percentage is established for a contract in accordance with FAR
25.201(c). * * *
* * * * *
Alternate IV. As prescribed in 225.7503(b) and (b)(5), use the
following clause, which includes, in the definition of ``domestic
construction material'' at paragraph (1)(ii)(A), the domestic content
threshold that will apply to the entire contract period of performance:
Balance of Payments Program--Construction Material Under Trade
Agreements--Alternate IV (Date)
(a) Definitions. As used in this clause--
Caribbean Basin country construction material means a
construction material that--
(1) Is wholly the growth, product, or manufacture of a Caribbean
Basin country; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a Caribbean Basin country into a new
and different construction material distinct from the materials from
which it was transformed.
Commercially available off-the-shelf (COTS) item--
(1) Means any item of supply (including construction material)
that is--
(i) A commercial product (as defined in paragraph (1) of the
definition of ``commercial product'' in section 2.101 of the Federal
Acquisition Regulation (FAR));
(ii) Sold in substantial quantities in the commercial
marketplace; and
(iii) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(2) Does not include bulk cargo, as defined in section 3 of the
Shipping Act of 1984 (46 U.S.C. 40102), such as agricultural
products and petroleum products.
Component means any article, material, or supply incorporated
directly into construction material.
Construction material means an article, material, or supply
brought to the construction site by the Contractor or a
subcontractor for incorporation into the building or work. The term
also includes an item brought to the site preassembled from
articles, materials, or supplies. However, emergency life safety
systems, such as emergency lighting, fire alarm, and audio
evacuation systems, that are discrete systems incorporated into a
public building or work and that are produced as complete systems,
are evaluated as a single and distinct construction material
regardless of when or how the individual parts or components of
those systems are delivered to the construction site. Materials
purchased directly by the Government are supplies, not construction
material.
Cost of components means--
(1) For components purchased by the Contractor, the acquisition
cost, including transportation costs to the place of incorporation
into the end product (whether or not such costs are paid to a
domestic firm), and any applicable duty (whether or not a duty-free
entry certificate is issued); or
(2) For components manufactured by the Contractor, all costs
associated with the manufacture of the component, including
transportation costs as described in paragraph (1) of this
definition, plus allocable overhead costs, but excluding profit.
Cost of components does not include any costs associated with the
manufacture of the construction material.
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
Designated country means--
(1) A World Trade Organization Government Procurement Agreement
(WTO GPA) country (Armenia, Aruba, Australia, Austria, Belgium,
Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland,
Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia,
Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro,
Netherlands, New Zealand, Norway, Poland, Portugal, Romania,
Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland,
Taiwan (known in the World Trade Organization as ``the Separate
Customs Territory of Taiwan, Penghu, Kinmen, and Matsu'' (Chinese
Taipei)), Ukraine, or the United Kingdom);
(2) A Free Trade Agreement country (Australia, Bahrain, Chile,
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala,
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama,
Peru, or Singapore);
(3) A least developed country (Afghanistan, Angola, Bangladesh,
Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African
Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti,
Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau,
Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali,
Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and
Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South
Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen,
or Zambia); or
(4) A Caribbean Basin country (Antigua and Barbuda, Aruba,
Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao,
Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St.
Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint
Eustatius, Sint Maarten, or Trinidad and Tobago).
Designated country construction material means a construction
material that is a WTO GPA country construction material, a Free
Trade Agreement country construction material, a least developed
country construction material, or a Caribbean Basin country
construction material.
Domestic construction material'' means--
(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, for the entire period of performance
for a contract awarded in: calendar year 2023, 60 percent of the
cost of all its components; calendar years 2024 through 2028, 65
percent of the cost of all its components; or calendar year 2029 or
later, 75 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
[[Page 37969]]
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.
Free Trade Agreement country construction material means a
construction material that--
(1) Is wholly the growth, product, or manufacture of a Free
Trade Agreement country; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a Free Trade Agreement country into a
new and different construction material distinct from the material
from which it was transformed.
Least developed country construction material means a
construction material that--
(1) Is wholly the growth, product, or manufacture of a least
developed country; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country has been
substantially transformed in a least developed country into a new
and different construction material distinct from the materials from
which it was transformed.
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.
United States means the 50 States, the District of Columbia, and
outlying areas.
WTO GPA country construction material means a construction
material that--
(1) Is wholly the growth, product, or manufacture of a WTO GPA
country; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a WTO GPA country into a new and
different construction material distinct from the materials from
which it was transformed.
(b) This clause implements the Balance of Payments Program by
providing a preference for domestic construction material. In
addition, the Contracting Officer has determined that the WTO GPA
and Free Trade Agreements apply to this acquisition. Therefore, the
Balance of Payments Program restrictions are waived for designated
country construction materials.
(c) The Contractor shall use only domestic or designated country
construction material in performing this contract, except for--
(1) Construction material valued at or below the simplified
acquisition threshold in FAR part 2;
(2) Information technology that is a commercial product; or
(3) The construction material or components listed by the
Government as follows:
[Contracting Officer to list applicable excepted materials or
indicate ``none''].
(End of clause)
Alternate V. As prescribed in 225.7503(b) and (b)(6), use the
following clause, which includes, in the definition of ``domestic
construction material'' at paragraph (1)(ii)(A), the domestic content
threshold that will apply to the entire contract period of performance;
adds ``Bahrainian or Mexican construction material'' to paragraph (a);
and uses a different paragraph (b) and (c) than the basic clause:
Balance of Payments Program--Construction Material Under Trade
Agreements--Alternate V (Date)
(a) Definitions. As used in this clause--
Bahrainian or Mexican construction material means a construction
material that--
(1) Is wholly the growth, product, or manufacture of Bahrain or
Mexico; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in Bahrain or Mexico into a new and
different construction material distinct from the materials from
which it was transformed.
Caribbean Basin country construction material means a
construction material that--
(1) Is wholly the growth, product, or manufacture of a Caribbean
Basin country; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a Caribbean Basin country into a new
and different construction material distinct from the materials from
which it was transformed.
Commercially available off-the-shelf (COTS) item--
(1) Means any item of supply (including construction material)
that is--
(i) A commercial product (as defined in paragraph (1) of the
definition of ``commercial product'' in section 2.101 of the Federal
Acquisition Regulation (FAR));
(ii) Sold in substantial quantities in the commercial
marketplace; and
(iii) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(2) Does not include bulk cargo, as defined in section 3 of the
Shipping Act of 1984 (46 U.S.C. 40102), such as agricultural
products and petroleum products.
Component means any article, material, or supply incorporated
directly into construction material.
Construction material means an article, material, or supply
brought to the construction site by the Contractor or a
subcontractor for incorporation into the building or work. The term
also includes an item brought to the site preassembled from
articles, materials, or supplies. However, emergency life safety
systems, such as emergency lighting, fire alarm, and audio
evacuation systems, that are discrete systems incorporated into a
public building or work and that are produced as complete systems,
are evaluated as a single and distinct construction material
regardless of when or how the individual parts or components of
those systems are delivered to the construction site. Materials
purchased directly by the Government are supplies, not construction
material.
Cost of components means--
(1) For components purchased by the Contractor, the acquisition
cost, including transportation costs to the place of incorporation
into the end product (whether or not such costs are paid to a
domestic firm), and any applicable duty (whether or not a duty-free
entry certificate is issued); or
(2) For components manufactured by the Contractor, all costs
associated with the manufacture of the component, including
transportation costs as described in paragraph (1) of this
definition, plus allocable overhead costs, but excluding profit.
Cost of components does not include any costs associated with the
manufacture of the construction material.
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
Designated country means--
(1) A World Trade Organization Government Procurement Agreement
(WTO GPA) country (Armenia, Aruba, Australia, Austria, Belgium,
Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland,
Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia,
Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro,
Netherlands, New Zealand, Norway, Poland, Portugal, Romania,
Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland,
Taiwan (known in the World Trade Organization as ``the Separate
Customs Territory of Taiwan, Penghu, Kinmen, and Matsu'' (Chinese
Taipei)), Ukraine, or the United Kingdom);
(2) A Free Trade Agreement country (Australia, Bahrain, Chile,
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala,
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama,
Peru, or Singapore);
(3) A least developed country (Afghanistan, Angola, Bangladesh,
Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African
Republic, Chad, Comoros, Democratic
[[Page 37970]]
Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia,
Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho,
Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal,
Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone,
Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo,
Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or
(4) A Caribbean Basin country (Antigua and Barbuda, Aruba,
Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao,
Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St.
Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint
Eustatius, Sint Maarten, or Trinidad and Tobago).
Designated country construction material means a construction
material that is a WTO GPA country construction material, a Free
Trade Agreement country construction material, a least developed
country construction material, or a Caribbean Basin country
construction material.
Domestic construction material means--
(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, for the entire period of performance
for a contract awarded in: calendar year 2023, 60 percent of the
cost of all its components; calendar years 2024 through 2028, 65
percent of the cost of all its components; or calendar year 2029 or
later, 75 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.
Free Trade Agreement country construction material means a
construction material that--
(1) Is wholly the growth, product, or manufacture of a Free
Trade Agreement country; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a Free Trade Agreement country into a
new and different construction material distinct from the material
from which it was transformed.
Least developed country construction material means a
construction material that--
(1) Is wholly the growth, product, or manufacture of a least
developed country; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country has been
substantially transformed in a least developed country into a new
and different construction material distinct from the materials from
which it was transformed.
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.
United States means the 50 States, the District of Columbia, and
outlying areas.
WTO GPA country construction material means a construction
material that--
(1) Is wholly the growth, product, or manufacture of a WTO GPA
country; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a WTO GPA country into a new and
different construction material distinct from the materials from
which it was transformed.
(b) This clause implements the Balance of Payments Program by
providing a preference for domestic construction material. In
addition, the Contracting Officer has determined that the WTO GPA
and all Free Trade Agreements except United States-Mexico-Canada
Agreement and the Bahrain Free Trade Agreement apply to this
acquisition. Therefore, the Balance of Payments Program restrictions
are waived for designated country construction material other than
Bahrainian or Mexican construction material.
(c) The Contractor shall use only domestic or designated country
construction material other than Bahrainian or Mexican construction
material in performing this contract, except for--
(1) Construction material valued at or below the simplified
acquisition threshold in FAR part 2; or
(2) Information technology that is a commercial product; or
(3) The construction material or components listed by the
Government as follows:
[Contracting Officer to list applicable excepted materials or
indicate ``none''].
(End of clause)
Alternate VI. As prescribed in 225.7503(b) and (b)(7), use the
following clause, which includes, in the definition of ``domestic
construction material'' at paragraph (1)(ii)(A), the domestic content
threshold that will apply to the entire contract period of performance;
adds ``South Caucasus/Central and South Asian (SC/CASA) state'' and
``SC/CASA state construction material'' to paragraph (a); uses a
different paragraph (b) and introductory text for paragraph (c) than
the basic clause; and adds paragraph (d):
Balance of Payments Program--Construction Material Under Trade
Agreements--Alternate VI (Date)
(a) Definitions. As used in this clause--
Caribbean Basin country construction material means a
construction material that--
(1) Is wholly the growth, product, or manufacture of a Caribbean
Basin country; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a Caribbean Basin country into a new
and different construction material distinct from the materials from
which it was transformed.
Commercially available off-the-shelf (COTS) item--
(1) Means any item of supply (including construction material)
that is--
(i) A commercial product (as defined in paragraph (1) of the
definition of ``commercial product'' in section 2.101 of the Federal
Acquisition Regulation (FAR));
(ii) Sold in substantial quantities in the commercial
marketplace; and
(iii) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(2) Does not include bulk cargo, as defined in section 3 of the
Shipping Act of 1984 (46 U.S.C. 40102), such as agricultural
products and petroleum products.
Component means any article, material, or supply incorporated
directly into construction material.
Construction material means an article, material, or supply
brought to the construction site by the Contractor or a
subcontractor for incorporation into the building or work. The term
also includes an item brought to the site preassembled from
articles, materials, or supplies. However, emergency life safety
systems, such as emergency lighting, fire alarm, and audio
evacuation systems, that are discrete systems incorporated into a
public building or work and that are produced as complete systems,
are evaluated as a single and distinct construction material
regardless of when or how the individual parts or components of
[[Page 37971]]
those systems are delivered to the construction site. Materials
purchased directly by the Government are supplies, not construction
material.
Cost of components means--
(1) For components purchased by the Contractor, the acquisition
cost, including transportation costs to the place of incorporation
into the end product (whether or not such costs are paid to a
domestic firm), and any applicable duty (whether or not a duty-free
entry certificate is issued); or
(2) For components manufactured by the Contractor, all costs
associated with the manufacture of the component, including
transportation costs as described in paragraph (1) of this
definition, plus allocable overhead costs, but excluding profit.
Cost of components does not include any costs associated with the
manufacture of the construction material.
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
Designated country means--
(1) A World Trade Organization Government Procurement Agreement
(WTO GPA) country (Armenia, Aruba, Australia, Austria, Belgium,
Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland,
Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia,
Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro,
Netherlands, New Zealand, Norway, Poland, Portugal, Romania,
Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland,
Taiwan (known in the World Trade Organization as ``the Separate
Customs Territory of Taiwan, Penghu, Kinmen, and Matsu'' (Chinese
Taipei)), Ukraine, or the United Kingdom);
(2) A Free Trade Agreement country (Australia, Bahrain, Chile,
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala,
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama,
Peru, or Singapore);
(3) A least developed country (Afghanistan, Angola, Bangladesh,
Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African
Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti,
Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau,
Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali,
Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and
Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South
Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen,
or Zambia); or
(4) A Caribbean Basin country (Antigua and Barbuda, Aruba,
Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao,
Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St.
Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint
Eustatius, Sint Maarten, or Trinidad and Tobago).
Designated country construction material means a construction
material that is a WTO GPA country construction material, a Free
Trade Agreement country construction material, a least developed
country construction material, or a Caribbean Basin country
construction material.
Domestic construction material means--
(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, for the entire period of performance
for a contract awarded in: calendar year 2023, 60 percent of the
cost of all its components; calendar years 2024 through 2028, 65
percent of the cost of all its components; or calendar year 2029 or
later, 75 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.
Free Trade Agreement country construction material means a
construction material that--
(1) Is wholly the growth, product, or manufacture of a Free
Trade Agreement country; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a Free Trade Agreement country into a
new and different construction material distinct from the material
from which it was transformed.
Least developed country construction material means a
construction material that--
(1) Is wholly the growth, product, or manufacture of a least
developed country; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a least developed country into a new
and different construction material distinct from the materials from
which it was transformed.
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.
South Caucasus/Central and South Asian (SC/CASA) state means
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan,
Tajikistan, Turkmenistan, or Uzbekistan.
SC/CASA state construction material means construction material
that--
(1) Is wholly the growth, product, or manufacture of an SC/CASA
state; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in an SC/CASA state into a new and
different construction material distinct from the material from
which it was transformed.
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
United States means the 50 States, the District of Columbia, and
outlying areas.
WTO GPA country construction material means a construction
material that--
(1) Is wholly the growth, product, or manufacture of a WTO GPA
country; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a WTO GPA country into a new and
different construction material distinct from the materials from
which it was transformed.
(b) This clause implements the Balance of Payments Program by
providing a preference for domestic construction material. In
addition, the Contracting Officer has determined that the WTO GPA,
Free Trade Agreements, and other waivers relating to acquisitions in
support of operations in Afghanistan apply to this acquisition.
Therefore, the Balance of Payments Program restrictions are waived
for SC/CASA state and designated country construction materials.
(c) The Contractor shall use only domestic, SC/CASA state, or
designated country construction material in performing this
contract, except for--
(1) Construction material valued at or below the simplified
acquisition threshold in FAR part 2;
(2) Information technology that is a commercial product; or
(3) The construction material or components listed by the
Government as follows:
[[Page 37972]]
[Contracting Officer to list applicable excepted materials or
indicate ``none''].
(d) If the Contractor is from an SC/CASA state, the Contractor
shall inform its government of its participation in this acquisition
and that it generally will not have such opportunity in the future
unless its government provides reciprocal procurement opportunities
to U.S. products and services and suppliers of such products and
services.
(End of clause)
Alternate VII. As prescribed in 225.7503(b) and (b)(8), use the
following clause, which includes, in the definition of ``domestic
construction material'' at paragraph (1)(ii)(A), the domestic content
threshold that will apply to the entire contract period of performance;
adds ``South Caucasus/Central and South Asian (SC/CASA state)'' and
``SC/CASA state construction material'' to paragraph (a); uses a
different paragraph (b) and introductory text for paragraph (c) than
the basic clause; and adds paragraph (d):
Balance of Payments Program--Construction Material Under Trade
Agreements--Alternate VII (Date)
(a) Definitions. As used in this clause--
Caribbean Basin country construction material means a
construction material that--
(1) Is wholly the growth, product, or manufacture of a Caribbean
Basin country; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a Caribbean Basin country into a new
and different construction material distinct from the materials from
which it was transformed.
Commercially available off-the-shelf (COTS) item--
(1) Means any item of supply (including construction material)
that is--
(i) A commercial product (as defined in paragraph (1) of the
definition of ``commercial product'' in section 2.101 of the Federal
Acquisition Regulation (FAR));
(ii) Sold in substantial quantities in the commercial
marketplace; and
(iii) Offered to the Government, under a contract or subcontract
at any tier, without modification, in the same form in which it is
sold in the commercial marketplace; and
(2) Does not include bulk cargo, as defined in section 3 of the
Shipping Act of 1984 (46 U.S.C. 40102), such as agricultural
products and petroleum products.
Component means any article, material, or supply incorporated
directly into construction material.
Construction material means an article, material, or supply
brought to the construction site by the Contractor or a
subcontractor for incorporation into the building or work. The term
also includes an item brought to the site preassembled from
articles, materials, or supplies. However, emergency life safety
systems, such as emergency lighting, fire alarm, and audio
evacuation systems, that are discrete systems incorporated into a
public building or work and that are produced as complete systems,
are evaluated as a single and distinct construction material
regardless of when or how the individual parts or components of
those systems are delivered to the construction site. Materials
purchased directly by the Government are supplies, not construction
material.
Cost of components means--
(1) For components purchased by the Contractor, the acquisition
cost, including transportation costs to the place of incorporation
into the end product (whether or not such costs are paid to a
domestic firm), and any applicable duty (whether or not a duty-free
entry certificate is issued); or
(2) For components manufactured by the Contractor, all costs
associated with the manufacture of the component, including
transportation costs as described in paragraph (1) of this
definition, plus allocable overhead costs, but excluding profit.
Cost of components does not include any costs associated with the
manufacture of the construction material.
Critical component means a component that is mined, produced, or
manufactured in the United States and deemed critical to the U.S.
supply chain. The list of critical components is at FAR 25.105.
Critical item means domestic construction material or a domestic
end product that is deemed critical to the U.S. supply chain. The
list of critical items is at FAR 25.105.
Designated country means--
(1) A World Trade Organization Government Procurement Agreement
(WTO GPA) country (Armenia, Aruba, Australia, Austria, Belgium,
Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia,
Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland,
Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia,
Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro,
Netherlands, New Zealand, Norway, Poland, Portugal, Romania,
Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland,
Taiwan (known in the World Trade Organization as ``the Separate
Customs Territory of Taiwan, Penghu, Kinmen, and Matsu'' (Chinese
Taipei)), Ukraine, or the United Kingdom);
(2) A Free Trade Agreement country (Australia, Bahrain, Chile,
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala,
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama,
Peru, or Singapore);
(3) A least developed country (Afghanistan, Angola, Bangladesh,
Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African
Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti,
Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau,
Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali,
Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and
Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South
Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen,
or Zambia); or
(4) A Caribbean Basin country (Antigua and Barbuda, Aruba,
Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao,
Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St.
Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint
Eustatius, Sint Maarten, or Trinidad and Tobago).
Designated country construction material means a construction
material that is a WTO GPA country construction material, a Free
Trade Agreement country construction material, a least developed
country construction material, or a Caribbean Basin country
construction material.
Domestic construction material means--
(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, for the entire period of performance
for a contract awarded in: calendar year 2023, 60 percent of the
cost of all its components; calendar years 2024 through 2028, 65
percent of the cost of all its components; or calendar year 2029 or
later, 75 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.
Free Trade Agreement country construction material means a
construction material that--
(1) Is wholly the growth, product, or manufacture of a Free
Trade Agreement country; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a Free Trade Agreement
[[Page 37973]]
country into a new and different construction material distinct from
the material from which it was transformed.
Least developed country construction material means a
construction material that--
(1) Is wholly the growth, product, or manufacture of a least
developed country; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a least developed country into a new
and different construction material distinct from the materials from
which it was transformed.
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.
South Caucasus/Central and South Asian (SC/CASA) state means
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan,
Tajikistan, Turkmenistan, or Uzbekistan.
SC/CASA state construction material means construction material
that--
(1) Is wholly the growth, product, or manufacture of an SC/CASA
state; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in an SC/CASA state into a new and
different construction material distinct from the material from
which it was transformed.
Steel means an alloy that includes at least 50 percent iron,
between 0.02 and 2 percent carbon, and may include other elements.
United States means the 50 States, the District of Columbia, and
outlying areas.
WTO GPA country construction material means a construction
material that--
(1) Is wholly the growth, product, or manufacture of a WTO GPA
country; or
(2) In the case of a construction material that consists in
whole or in part of materials from another country, has been
substantially transformed in a WTO GPA country into a new and
different construction material distinct from the materials from
which it was transformed.
(b) This clause implements the Balance of Payments Program by
providing a preference for domestic construction material. In
addition, the Contracting Officer has determined that the WTO GPA,
all Free Trade Agreements except United States-Mexico-Canada
Agreement and the Bahrain Free Trade Agreement, and other waivers
relating to acquisitions in support of operations in Afghanistan
apply to this acquisition. Therefore, the Balance of Payments
Program restrictions are waived for SC/CASA state and designated
country construction material other than Bahrainian or Mexican
construction material.
(c) The Contractor shall use only domestic, SC/CASA state, or
designated country construction material other than Bahrainian or
Mexican construction material in performing this contract, except
for--
(1) Construction material valued at or below the simplified
acquisition threshold in FAR part 2;
(2) Information technology that is a commercial product; or
(3) The construction material or components listed by the
Government as follows:
[Contracting Officer to list applicable excepted materials or
indicate ``none''].
(d) If the Contractor is from an SC/CASA state, the Contractor
shall inform its government of its participation in this acquisition
and that it generally will not have such opportunity in the future
unless its government provides reciprocal procurement opportunities
to U.S. products and services and suppliers of such products and
services.
(End of clause)
[FR Doc. 2023-12019 Filed 6-8-23; 8:45 am]
BILLING CODE 5001-06-P