Foreign Acquisition (FAR)
Foreign Acquisition (FAR)
연방정부(미국) xxx정 해외 조달
- Contents -
1. Buy American - 소모품
2. Buy American - 건축자제
3. 미국 밖에서 행해진 계약
4. 무역 협정
5. 해외 평가 - 공급 계약
6. 미국의 xx 및 재투자법 - Buy American statu te - 건축 xx
7. xx된 출처
8. 기타 국제협정 및 xx
9. xx 및 xx
10. 추가 외국인 취득 xx
11. 모집 xx 및 계약 조항
2011. 11. 02
FAC 2005–73 MAY 29, 2014
Sec.
25.000 Scope of part.
25.001 General.
PART 25—FOREIGN ACQUISITION
Subpart 25.5—Evaluating Foreign Offers— Supply Contracts
25.002 Applicability of subparts.
25.003 Definitions.
Subpart 25.1—Buy American—Supplies
25.100 Scope of subpart.
25.101 General.
25.102 Policy.
25.103 Exceptions.
25.104 Nonavailable articles.
25.105 Determining reasonableness of cost.
Subpart 25.2—Buy American—Construction Materials
25.200 Scope of Subpart.
25.201 Policy.
25.202 Exceptions.
25.203 Preaward determinations.
25.204 Evaluating offers of foreign construction material.
25.205 Postaward determinations.
25.206 Noncompliance.
Subpart 25.3—Contracts Performed Outside the United States
25.301 | Contractor personnel in a designated operational area or supporting a diplomatic or consular mission outside the United States. |
25.301-1 | Scope. |
25.301-2 | Government support. |
25.301-3 | Weapons. |
25.301-4 | Contract clause. |
25.302 | Contractors performing private security functions outside the United States. |
25.302-1 | Scope. |
25.302-2 | Definitions. |
25.302-3 | Applicability. |
25.302-4 | Policy. |
25.302-5 | Remedies. |
25.302-6 | Contract clause. |
Subpart 25.4—Trade Agreements
25.400 Scope of subpart.
25.401 Exceptions.
25.402 General.
25.403 World Trade Organization Government Procurement Agreement and Free Trade Agreements.
25.404 Least developed countries.
25.405 Caribbean Basin Trade Initiative.
25.406 Israeli Trade Act.
25.407 Agreement on Trade in Civil Aircraft.
25.408 Procedures.
25.501 General.
25.502 Application.
25.503 Group offers.
25.504 Evaluation examples. 25.504-1 Buy American statute.
25.504-2 WTO GPA/Caribbean Basin Trade Initiative/ FTAs.
25.504-3 FTA/Israeli Trade Act. 25.504-4 Group award basis.
Subpart 25.6—American Recovery and Reinvestment Act—Buy American statute— Construction Materials
25.600 | Scope of subpart. |
25.601 | Definitions. |
25.602 | Policy. |
25.602-1 | Section 1605 of the Recovery Act. |
25.602-2 | Buy American statute |
25.603 | Exceptions. |
25.604 | Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American statute. |
25.605 | Evaluating offers of foreign construction material. |
25.606 | Postaward determinations. |
25.607 | Noncompliance. |
Subpart 25.7—Prohibited Sources | |
25.700 | Scope of subpart. |
25.701 | Restrictions administered by the Department of the Treasury on acquisitions of supplies or services from prohibited sources. |
25.702 | Prohibition on contracting with entities that conduct restricted business operations in Sudan. |
25.702-1 | Definitions. |
25.702-2 | Certification. |
25.702-3 | Remedies. |
25.702-4 | Waiver. |
25.703 | Prohibition on contracting with entities that engage in certain activities or transactions relating to Iran. |
25.703-1 | Definitions. |
25.703-2 | Iran Sanctions Act. |
25.703-3 | Prohibition on contracting with entities that export sensitive technology to Iran. |
25.703-4 | Waiver. |
Subpart 25.8—Other International Agreements and Coordination
25.801 General.
25.802 Procedures.
Federal Acquisition Regulation
Subpart 25.9—Customs and Duties
25.900 Scope of subpart. 25.901 Policy.
25.902 Procedures.
25.903 Exempted supplies.
Subpart 25.10—Additional Foreign Acquisition Regulations
25.1001 Waiver of right to examination of records.
25.1002 Use of foreign currency.
Subpart 25.11—Solicitation Provisions and Contract Clauses
25.1101 Acquisition of supplies. 25.1102 Acquisition of construction. 25.1103 Other provisions and clauses.
FAC 2005–73 MAY 29, 2014
Subpart 25.1—Buy American Act—Supplies 25.002
25.000 Scope of part.
(a) This part provides policies and procedures for—
(1) Acquisition of foreign supplies, services, and con- struction materials; and
(2) Contracts performed outside the United States.
(b) It implements 41 U.S.C. chapter 83, Buy American; trade agreements; and other laws and regulations.
25.001 General.
(a) 41 U.S.C. chapter 83, Buy American—
(1) Restricts the purchase of supplies, that are not domestic end products, for use within the United States. A for- eign end product may be purchased if the contracting officer determines that the price of the lowest domestic offer is unrea- sonable or if another exception applies (see Subpart 25.1); and
(2) Requires, with some exceptions, the use of only domestic construction materials in contracts for construction in the United States (see Subpart 25.2).
(b) The restrictions in the Buy American statute are not applicable in acquisitions subject to certain trade agreements (see Subpart 25.4). In these acquisitions, end products and construction materials from certain countries receive nondis- criminatory treatment in evaluation with domestic offers. Generally, the dollar value of the acquisition determines which of the trade agreements applies. Exceptions to the applicability of the trade agreements are described in Subpart 25.4.
(c) The test to determine the country of origin for an end product under the Buy American statute (see the various coun- try “end product” definitions in 25.003) is different from the test to determine the country of origin for an end product
under the trade agreements, or the criteria for the representa- tion on end products manufactured outside the United States (see 52.225-18).
(1) The Buy American statute uses a two-part test to define a “domestic end product”or “domestic construction material” (manufactured in the United States and a formula based on cost of domestic components). The component test has been waived for acquisition of commercially available off-the-shelf items.
(2) Under the trade agreements, the test to determine country of origin is “substantial transformation” (i.e., trans- forming an article into a new and different article of com- merce, with a name, character, or use distinct from the original article).
(3) For the representation at 52.225-18, the only crite- rion is whether the place of manufacture of an end product is in the United States or outside the United States, without regard to the origin of the components.
(4) When using funds appropriated under the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5), the definition of “domestic manufactured construction material” requires manufacture in the United States but does not include a requirement with regard to the origin of the components. If the construction material consists wholly or predominantly of iron or steel, the iron or steel must be produced in the United States.
25.002 Applicability of subparts.
The following table shows the applicability of the subparts. Subpart 25.5 provides comprehensive procedures for offer evaluation and examples.
Subpart | Supplies for Use | Construction | Services Performed | |||
Inside U.S. | Outside U.S. | Inside U.S. | Outside U.S. | Inside U.S. | Outside U.S. | |
25.1 Buy American— Supplies | X | — | — | — | — | — |
25.2 Buy American— Construction Materials | — | — | X | — | — | — |
25.3 Contracts Performed Outside the United States | — | X | — | X | — | X |
25.4 Trade Agreements | X | X | X | X | X | X |
25.5 Evaluating Foreign Offers— Supply Contracts | X | X | — | — | — | — |
25.6 American Recovery and Reinvest- ment Act—Buy American statute— Construction Materials | X | |||||
25.7 Prohibited Sources | X | X | X | X | X | X |
25.8 Other International Agreements and Coordination | X | X | — | X | — | X |
25.9 Customs and Duties | X | — | — | — | — | — |
25.10 Additional Foreign Acquisition Reg- ulations | X | X | X | X | X | X |
25.11 Solicitation Provisions and Contract Clauses | X | X | X | X | X | X |
25.003 Federal Acquisition Regulation
25.003 Definitions.
As used in this part—
“Caribbean Basin country” means any of the following countries: 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.
“Caribbean Basin country end product”—
(1) Means an article that—
(i)(A) Is wholly the growth, product, or manufacture of a Caribbean Basin country; or
(B) In the case of an article that consists in whole or in part of materials from another country, has been substan- tially transformed in a Caribbean Basin country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed; and
(ii) Is not excluded from duty-free treatment for Caribbean countries under 19 U.S.C. 2703(b).
(A) For this reason, the following articles are not Caribbean Basin country end products:
(1) Tuna, prepared or preserved in any manner in airtight containers.
(2) Petroleum, or any product derived from
petroleum.
(3) Watches and watch parts (including cases, bracelets, and straps) of whatever type including, but not lim- ited to, mechanical, quartz digital, or quartz analog, if such watches or watch parts contain any material that is the product of any country to which the Harmonized Tariff Schedule of the United States (HTSUS) column 2 rates of duty apply (x.x., Xxxxxxxxxxx, Xxxx, Xxxx, Xxxxx Xxxxx, and Vietnam).
(4) Certain of the following: textiles and apparel articles; footwear, handbags, luggage, flat goods, work gloves, and leather wearing apparel; or handloomed, handmade, and folklore articles.
(B) Access to the HTSUS to determine duty-free status of articles of the types listed in paragraph (1)(ii)(A)(4) of this definition is available via the Internet at http:// xxx.xxxxx.xxx/xxxx/xxx/. In particular, see the following:
(1) General Note 3(c), Products Eligible for Special Tariff treatment.
(2) Xxxxxxx Xxxx 00, Xxxxxxxx xx Xxxxxxxxx Xxxxxxxxxx xx Xxxxxxxxxxx Xxxxxxxxx xxxxx xxx Xxxxxx Xxxxxx- Caribbean Basin Trade Partnership Act of 2000.
(3) Section XXII, Chapter 98, Subchapter II, Articles Exported and Returned, Advanced or Improved Abroad, U.S. Note 7(b).
(4) Section XXII, Chapter 98, Subchapter XX, Goods Eligible for Special Tariff Benefits under the United States-Caribbean Basin Trade Partnership Act; and
(2) Refers to a product offered for purchase under a sup- ply contract, but for purposes of calculating the value of the acquisition, includes services (except transportation services) incidental to the article, provided that the value of those inci- dental services does not exceed that of the article itself.
“Civil aircraft and related articles” means—
(1) All aircraft other than aircraft to be purchased for use by the Department of Defense or the U.S. Coast Guard;
(2) The engines (and parts and components for incorpo- ration into the engines) of these aircraft;
(3) Any other parts, components, and subassemblies for incorporation into the aircraft; and
(4) Any ground flight simulators, and parts and compo- nents of these simulators, for use with respect to the aircraft, whether to be used as original or replacement equipment in the manufacture, repair, maintenance, rebuilding, modification, or conversion of the aircraft and without regard to whether the aircraft or articles receive duty-free treatment under section 601(a)(2) of the Trade Agreements Act.
“Component” means an article, material, or supply incor- porated directly into an end product or construction material. “Construction material” means an article, material, or sup-
ply brought to the construction site by a contractor or subcon-
tractor 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 incorpo- rated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct con- struction material regardless of when or how the individual parts or components of those systems are delivered to the con- struction site. Materials purchased directly by the Govern- ment 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 or construction material (whether or not such costs are paid to a domestic firm), and any applicable duty (whether or not a duty-free entry certifi- cate 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 associ- ated with the manufacture of the end product.
“Designated country” means any of the following countries:
FAC 2005–91 OCTOBER 31, 2016
Subpart 25.1—Buy American Act—Supplies 00.000
(0) X World Trade Organization Government Procure- ment Agreement (WTO GPA) country (Armenia, Aruba, Xxxxxxx, Xxxxxxx, Xxxxxxxx, Xxxxxx, Xxxxxxx, Xxxxxx, Xxxxx Xxxxxxxx, Denmark, Xxxxxxx, Xxxxxxx, Xxxxxx, Xxxxxxx, Xxxxxx, Xxxx Xxxx, Xxxxxxx, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Xxxxxx, Xxxxxxxxxxxxx, Xxxxxxxxx, Xxxxxxxxxx, Xxxxx, Xxxxxxx, Xxxxxxxxxx, Xxxxxxxxxxx, New Zealand, Norway, Poland, Portugal, Romania, Singa- pore, Slovak Republic, Slovenia, Spain, Sweden, Switzer- land, Taiwan (known in the World Trade Organization as “the Separate Customs Territory of Taiwan, Penghu, Xxxxxx xxx Xxxxx (Xxxxxxx Xxxxxx)”), Xxxxxxx, xx Xxxxxx Xxxxxxx);
(2) A Free Trade Agreement (FTA) country (Xxxxxxxxx, Xxxxxxx, Xxxxxx, Xxxxx, Xxxxxxxx, Xxxxx Xxxx, Xxxxxxxxx Xxxxxxxx, El Salvador, Guatemala, Honduras, Korea (Repub- lic of), Xxxxxx, Xxxxxxx, Xxxxxxxxx, Xxxx, Xxxxxx, Xxxx, xx Xxxxxxxxx);
(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambo- dia, Xxxxxxx Xxxxxxx Xxxxxxxx, Xxxx, Xxxxxxx, Xxxxxxxxxx Xxxxxxxx of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Maurita- nia, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Soma- lia, 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 end product” means a WTO GPA country end product, an FTA country end product, a least developed country end product, or a Caribbean Basin country end product.
“Domestic construction material” means—
(1)(i) An unmanufactured construction material mined or produced in the United States;
(ii) A construction material manufactured in the United States, if—
(A) The cost of the components mined, produced, or manufactured in the United States exceeds 50 percent of the cost of all its components. Components of foreign origin of the same class or kind for which nonavailability determina- tions have been made are treated as domestic; or
(B) The construction material is a COTS item;
(2) Except that for use in subpart 25.6, see the definition in 25.601.
“Domestic end product” means—
(1) An unmanufactured end product mined or produced in the United States;
(2) An end product manufactured in the United States,
if—
(i) The cost of its components mined, produced, or manufactured in the United States exceeds 50 percent of the cost of all its components. Components of foreign origin of the same class or kind as those that the agency determines are not mined, produced, or manufactured in sufficient and rea- sonably available commercial quantities of a satisfactory quality are treated as domestic. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or
(ii) The end product is a COTS item.
“Domestic offer” means an offer of a domestic end prod- uct. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group.
“Eligible offer” means an offer of an eligible product. When the solicitation specifies that award will be made on a group of line items, an eligible offer means a foreign offer where the combined proposed price of the eligible products and the domestic end products exceeds 50 percent of the total proposed price of the group.
“Eligible product” means a foreign end product, construc- tion material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discrim- inatory treatment.
“End product” means those articles, materials, and sup- plies to be acquired for public use.
“Foreign construction material” means a construction material other than a domestic construction material.
“Foreign contractor” means a contractor or subcontractor organized or existing under the laws of a country other than the United States.
“Foreign end product” means an end product other than a domestic end product.
“Foreign offer” means any offer other than a domestic offer.
“Free Trade Agreement country” means Australia, Bah- rain, Xxxxxx, Xxxxx, Xxxxxxxx, Xxxxx Xxxx, Xxxxxxxxx Xxxxxxxx, El Salvador, Guatemala, Honduras, Korea (Repub- lic of), Xxxxxx, Xxxxxxx, Xxxxxxxxx, Xxxx, Xxxxxx, Xxxx, xx Xxxxxxxxx.
“Free Trade Agreement country end product” means an article that—
(1) Is wholly the growth, product, or manufacture of a Free Trade Agreement (FTA) 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 an FTA country into a new and different article of commerce with a name, character, or use distinct from that
FAC 2005–91 OCTOBER 31, 2016
25.100 Federal Acquisition Regulation
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 the article, provided that the value of those inci- dental services does not exceed that of the article itself.
“Israeli end product” means an article that—
(1) Is wholly the growth, product, or manufacture of Israel; 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 Israel into a new and different article of com- merce with a name, character, or use distinct from that of the article or articles from which it was transformed.
“Least developed country” means any of the following countries: 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, Mad- agascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tan- zania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia.
“Least developed country end product” means an article that—
(1) Is wholly the growth, product, or manufacture of a least developed 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 least developed country into a new and dif- ferent article of commerce with a name, character, or use dis- tinct 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 transpor- tation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself.
“Noneligible offer” means an offer of a noneligible product.
“Noneligible product” means a foreign end product that is not an eligible product.
“United States” means the 50 States, the District of Colum- bia, and outlying areas.
“U.S.-made end product” means an article that is mined, produced, or manufactured in the United States or that is sub- stantially transformed in the United States into a new and dif- ferent article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed.
“World Trade Organization Government Procurement Agreement (WTO GPA) country” means any of the following countries: Armenia, Aruba, Austria, Belgium, Bulgaria, Can-
xxx, Xxxxxxx, Xxxxxx, Xxxxx Xxxxxxxx, Xxxxxxx, Xxxxxxx, Xxxxxxx, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Lat- xxx, Xxxxxxxxxxxxx, Xxxxxxxxx, Xxxxxxxxxx, Xxxxx, Xxxxxxx, Xxxxxxxxxx, Xxxxxxxxxxx, New Xxxxxxx, Xxxxxx, Xxxxxx, Xxxxxxxx, Xxxxxxx, Xxxxxxxxx, Xxxxxx Xxxxxxxx, Xxxxxxxx, Xxxxx, Xxxxxx, Xxxxxxxxxxx, Xxxxxx, Xxxxxxx, xx Xxxxxx Xxxxxxx.
“WTO GPA country end product” means an article that—
(1) Is wholly the growth, product, or manufacture of a WTO GPA 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 WTO GPA 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 trans- formed. 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 transporta- tion services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself.
Subpart 25.1—Buy American—Supplies
25.100 Scope of subpart.
(a) This subpart implements—
(1) 41 U.S.C. chapter 83, Buy American;
(2) Executive Order 10582, December 17, 1954; and
(b) It applies to supplies acquired for use in the United States, including supplies acquired under contracts set aside for small business concerns, if—
(1) The supply contract exceeds the micro-purchase threshold; or
(2) The supply portion of a contract for services that involves the furnishing of supplies (e.g., lease) exceeds the micro-purchase threshold.
25.101 General.
(a) The Buy American statute restricts the purchase of sup- plies that are not domestic end products. For manufactured end products, the Buy American statute uses a two-part test to define a domestic end product.
(1) The article must be manufactured in the United States; and
(2) The cost of domestic components must exceed 50 percent of the cost of all the components. In accordance with 41 U.S.C 1907, this component test of the Buy American stat- ute has been waived for acquisitions of COTS items (see 12.505(a)).
(b) The Buy American statute applies to small business set- asides. A manufactured product of a small business concern is a U.S.-made end product, but is not a domestic end product
FAC 2005–73 MAY 29, 2014
Subpart 25.1—Buy American Act—Supplies 25.104
unless it meets the component test in paragraph (a)(2) of this section.
(c) Exceptions that allow the purchase of a foreign end product are listed at 25.103. The unreasonable cost exception is implemented through the use of an evaluation factor applied to low foreign offers that are not eligible offers. The evalua- tion factor is not used to provide a preference for one foreign offer over another. Evaluation procedures and examples are provided in Subpart 25.5.
25.102 Policy.
Except as provided in 25.103, acquire only domestic end products for public use inside the United States.
25.103 Exceptions.
When one of the following exceptions applies, the con- tracting officer may acquire a foreign end product without regard to the restrictions of the Buy American statute:
(a) Public interest. The head of the agency may make a determination that domestic preference would be inconsistent with the public interest. This exception applies when an agency has an agreement with a foreign government that pro- vides a blanket exception to the Buy American Act.
(b) Nonavailability. The Buy American statute does not apply with respect to articles, materials, or supplies if articles, materials, or supplies of the class or kind to be acquired, either as end items or components, are not mined, produced, or man- ufactured in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality.
(1) Class determinations.(i) A nonavailability determi- nation has been made for the articles listed in 25.104. This determination does not necessarily mean that there is no domestic source for the listed items, but that domestic sources can only meet 50 percent or less of total U.S. Government and nongovernment demand.
(ii) Before acquisition of an article on the list, the procuring agency is responsible to conduct market research appropriate to the circumstances, including seeking of domes- tic sources. This applies to acquisition of an article as—
(A) An end product; or
(B) A significant component (valued at more than 50 percent of the value of all the components).
(iii) The determination in paragraph (b)(1)(i) of this section does not apply if the contracting officer learns at any time before the time designated for receipt of bids in sealed bidding or final offers in negotiation that an article on the list is available domestically in sufficient and reasonably avail- able commercial quantities of a satisfactory quality to meet the requirements of the solicitation. The contracting officer must—
(A) Ensure that the appropriate Buy American statute provision and clause are included in the solicitation (see 22.1101(a), 22.1101(b), or 25.1102);
(B) Specify in the solicitation that the article is available domestically and that offerors and contractors may
not treat foreign components of the same class or kind as domestic components; and
(C) Submit a copy of supporting documentation to the appropriate council identified in 1.201-1, in accordance with agency procedures, for possible removal of the article from the list.
(2) Individual determinations. (i) The head of the con- tracting activity may make a determination that an article, material, or supply is not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities of a satisfactory quality.
(ii) If the contracting officer considers that the nonavailability of an article is likely to affect future acquisi- tions, the contracting officer may submit a copy of the deter- mination and supporting documentation to the appropriate council identified in 1.201-1, in accordance with agency pro- cedures, for possible addition to the list in 25.104.
(3) A written determination is not required if all of the following conditions are present:
(i) The acquisition was conducted through use of full and open competition.
(ii) The acquisition was synopsized in accordance with 5.201.
(iii) No offer for a domestic end product was received.
(c) Unreasonable cost. The contracting officer may deter- mine that the cost of a domestic end product would be unrea- sonable, in accordance with 25.105 and Subpart 25.5.
(d) Xxxxxx. The contracting officer may purchase foreign end products specifically for commissary resale.
(e) Information technology that is a commercial item. The restriction on purchasing foreign end products does not apply to the acquisition of information technology that is a commer- cial item, when using fiscal year 2004 or subsequent fiscal year funds (Section 535(a) of Division F, Title V, Consoli- dated Appropriations Act, 2004, and similar sections in sub- sequent appropriations acts).
25.104 Nonavailable articles.
(a) The following articles have been determined to be nonavailable in accordance with 25.103(b)(1)(i):
Acetylene, black. Agar, bulk.
Anise.
Antimony, as metal or oxide.
Asbestos, amosite, chrysotile, and crocidolite. Bamboo shoots.
Bananas.
Bauxite.
Beef, corned, canned. Beef extract.
Bephenium hydroxynapthoate. Bismuth.
Books, trade, text, technical, or scientific; newspapers; pamphlets; magazines; periodicals; printed briefs and films;
00.000 Xxxxxxx Xxxxxxxxxxx Xxxxxxxxxx
xxx xxxxxxx xx xxx Xxxxxx Xxxxxx and for which domestic edi- tions are not available.
Brazil nuts, unroasted Cadmium, ores and flue dust. Calcium cyanamide.
Capers.
Cashew nuts.
Castor beans and castor oil. Chalk, English.
Chestnuts.
Chicle.
Chrome ore or chromite. Cinchona bark.
Cobalt, in cathodes, rondelles, or other primary ore and metal forms.
Cocoa beans.
Coconut and coconut meat, unsweetened, in shredded, des- iccated, or similarly prepared form.
Coffee, raw or green bean. Colchicine alkaloid, raw. Copra.
Cork, wood or bark and waste. Cover glass, microscope slide. Crane rail (85-pound per foot). Cryolite, natural.
Dammar gum.
Diamonds, industrial, stones and abrasives. Emetine, bulk.
Ergot, crude. Erythrityl tetranitrate. Fair linen, altar.
Fibers of the following types: abaca, abace, agave, coir, flax, jute, jute burlaps, palmyra, and sisal.
Goat and kidskins. Goat hair canvas.
Grapefruit sections, canned.
Graphite, natural, crystalline, crucible grade. Hand file sets (Swiss pattern).
Handsewing needles. Hemp yarn.
Hog bristles for brushes. Hyoscine, bulk.
Ipecac, root.
Iodine, crude.
Kaurigum.
Lac.
Leather, sheepskin, hair type. Lavender oil.
Manganese.
Menthol, natural bulk. Mica.
Microprocessor chips (brought onto a Government con- struction site as separate units for incorporation into building systems during construction or repair and alteration of real property).
Modacrylic fiber.
Nickel, primary, in ingots, pigs, shots, cathodes, or similar forms; nickel oxide and nickel salts.
Nitroguanidine (also known as picrite). Nux vomica, crude.
Oiticica oil.
Olive oil.
Olives (green), pitted or unpitted, or stuffed, in bulk. Opium, crude.
Oranges, mandarin, canned.
Petroleum, crude oil, unfinished oils, and finished products.
Pine needle oil. Pineapple, canned.
Platinum and related group metals, refined, as sponge, powder, ingots, or cast bars.
Pyrethrum flowers. Quartz crystals.
Quebracho.
Quinidine.
Quinine.
Rabbit fur felt.
Radium salts, source and special nuclear materials. Rosettes.
Rubber, crude and latex. Rutile.
Santonin, crude.
Secretin.
Shellac.
Silk, raw and unmanufactured.
Spare and replacement parts for equipment of foreign man- ufacture, and for which domestic parts are not available.
Spices and herbs, in bulk. Sugars, raw.
Swords and scabbards. Talc, block, steatite.
Tantalum.
Tapioca flour and cassava.
Tartar, crude; tartaric acid and cream of tartar in bulk. Tea in bulk.
Thread, metallic (gold). Thyme oil.
Tin in bars, blocks, and pigs. Triprolidine hydrochloride. Tungsten.
Vanilla beans.
Venom, cobra.
Water chestnuts.
Wax, carnauba.
Wire glass.
Woods; logs, veneer, and lumber of the following species: Alaskan yellow cedar, angelique, balsa, ekki, greenheart, lig- num vitae, mahogany, and teak.
Yarn, 50 Denier rayon.
FAC 2005–73 MAY 29, 2014
Subpart 25.1—Buy American Act—Supplies 25.105
Yeast, active dry and instant active dry.
(b) This list will be published in the Federal Register for public comment no less frequently than once every five years. Unsolicited recommendations for deletions from this list may be submitted at any time and should provide sufficient data and rationale to permit evaluation (see 1.502).
25.105 Determining reasonableness of cost.
(a) The contracting officer—
(1) Must use the evaluation factors in paragraph (b) of this section unless the head of the agency makes a written determination that the use of higher factors is more appropri- ate. If the determination applies to all agency acquisitions, the agency evaluation factors must be published in agency regu- lations; and
(2) Must not apply evaluation factors to offers of eligi- ble products if the acquisition is subject to a trade agreement under Subpart 25.4.
(b) If there is a domestic offer that is not the low offer, and the restrictions of the Buy American statute apply to the low offer, the contracting officer must determine the reasonable- ness of the cost of the domestic offer by adding to the price of the low offer, inclusive of duty—
(1) 6 percent, if the lowest domestic offer is from a large business concern; or
(2) 12 percent, if the lowest domestic offer is from a small business concern. The contracting officer must use this factor, or another factor established in agency regulations, in small business set-asides if the low offer is from a small busi- ness concern offering the product of a small business concern that is not a domestic end product (see Subpart 19.5).
(c) The price of the domestic offer is reasonable if it does not exceed the evaluated price of the low offer after addition of the appropriate evaluation factor in accordance with paragraph (a) or (b) of this section. (See evaluation proce- dures at Subpart 25.5.)
FAC 2005–86 JANUARY 1, 2016
Subpart 25.2—Buy American—Construction Materials 25.204
Subpart 25.2—Buy American— Construction Materials
25.200 Scope of Subpart.
(a) This subpart implements—
(1) 41 U.S.C. chapter 83, Buy American;
(2) Executive Order 10582, December 17, 1954; and
(b) It applies to contracts for the construction, alteration, or repair of any public building or public work in the United States.
(c) When using funds appropriated or otherwise provided by the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5) (Recovery Act) for construction, see subpart 25.6.
25.201 Policy.
Except as provided in 25.202, use only domestic construc- tion materials in construction contracts performed in the United States.
25.202 Exceptions.
(a) When one of the following exceptions applies, the con- tracting officer may allow the contractor to acquire foreign construction materials without regard to the restrictions of the Buy American statute:
(1) Impracticable or inconsistent with public interest. The head of the agency may determine that application of the restrictions of the Buy American statute to a particular con- struction material would be impracticable or would be incon- sistent with the public interest. The public interest exception applies when an agency has an agreement with a foreign gov- ernment that provides a blanket exception to the Buy Ameri- can statute.
(2) Nonavailability. The head of the contracting activity may determine that a particular construction material is not mined, produced, or manufactured in the United States in suf- ficient and reasonably available commercial quantities of a satisfactory quality. The determinations of nonavailability of the articles listed at 25.104(a) and the procedures at 25.103(b)(1) also apply if any of those articles are acquired as construction materials.
(3) Unreasonable cost. The contracting officer con- cludes that the cost of domestic construction material is unrea- sonable in accordance with 25.204.
(4) Information technology that is a commercial item. The restriction on purchasing foreign construction material does not apply to the acquisition of information technology that is a commercial item, when using Fiscal Year 2004 or sub- sequent fiscal year funds (Section 535(a) of Division F, Title
V, Consolidated Appropriations Act, 2004, and similar sec- tions in subsequent appropriations acts).
(b) Determination and findings. When a determination is made for any of the reasons stated in this section that certain foreign construction materials may be used, the contracting officer must list the excepted materials in the contract. The agency must make the findings justifying the exception avail- able for public inspection.
(c) Acquisitions under trade agreements. For construction contracts with an estimated acquisition value of $7,358,000 or more, see subpart 25.4.
25.203 Preaward determinations.
(a) For any acquisition, an offeror may request from the contracting officer a determination concerning the inapplica- bility of the Buy American statute for specifically identified construction materials. The time for submitting the request is specified in the solicitation in paragraph (b) of either 52.225-10 or 52.225-12, whichever applies. The information and supporting data that must be included in the request are also specified in the solicitation in paragraphs (c) and (d) of either 52.225-9 or 52.225-11, whichever applies.
(b) Before award, the contracting officer must evaluate all requests based on the information provided and may supple- ment this information with other readily available information.
25.204 Evaluating offers of foreign construction material.
(a) Offerors proposing to use foreign construction material other than that listed by the Government in the applicable clause at 52.225-9, paragraph (b)(2), or 52.225-11, paragraph (b)(3), or covered by the WTO GPA or a Free Trade Agreement (paragraph (b)(2) of 52.225-11), must provide the information required by paragraphs (c) and (d) of the respec- tive clauses.
(b) Unless the head of the agency specifies a higher per- centage, the contracting officer must add to the offered price 6 percent of the cost of any foreign construction material pro- posed for exception from the requirements of the Buy Amer- ican statute based on the unreasonable cost of domestic construction materials. In the case of a tie, the contracting offi- cer must give preference to an offer that does not include for- eign construction material excepted at the request of the offeror on the basis of unreasonable cost.
(c) Offerors also may submit alternate offers based on use of equivalent domestic construction material to avoid possible rejection of the entire offer if the Government determines that an exception permitting use of a particular foreign construc- tion material does not apply.
(d) If the contracting officer awards a contract to an offeror that proposed foreign construction material not listed in the applicable clause in the solicitation (paragraph (b)(2) of 52.225-9, or paragraph (b)(3) of 52.225-11), the contracting
25.205 Federal Acquisition Regulation
officer must add the excepted materials to the list in the con- tract clause.
25.205 Postaward determinations.
(a) If a contractor requests a determination regarding the inapplicability of the Buy American statute after contract award, the contractor must explain why it could not request the determination before contract award or why the need for such determination otherwise was not reasonably foreseeable. If the contracting officer concludes that the contractor should have made the request before contract award, the contracting officer may deny the request.
(b) The contracting officer must base evaluation of any request for a determination regarding the inapplicability of the Buy American statute made after contract award on informa- tion required by paragraphs (c) and (d) of the applicable clause at 52.225-9 or 52.225-11 and/or other readily available information.
(c) If a determination, under 25.202(a), is made after con- tract award that an exception to the Buy American statute applies, the contracting officer must negotiate adequate con- sideration and modify the contract to allow use of the foreign construction material. When the basis for the exception is the unreasonable price of a domestic construction material, ade- quate consideration is at least the differential established in 25.202(a) or in accordance with agency procedures.
25.206 Noncompliance.
The contracting officer must—
(a) Review allegations of Buy American statute violations;
(b) Unless fraud is suspected, notify the contractor of the apparent unauthorized use of foreign construction material and request a reply, to include proposed corrective action; and
(c) If the review reveals that a contractor or subcontractor has used foreign construction material without authorization, take appropriate action, including one or more of the following:
(1) Process a determination concerning the inapplica- bility of the Buy American statute in accordance with 25.205.
(2) Consider requiring the removal and replacement of the unauthorized foreign construction material.
(3) If removal and replacement of foreign construction material incorporated in a building or work would be imprac- ticable, cause undue delay, or otherwise be detrimental to the interests of the Government, the contracting officer may determine in writing that the foreign construction material need not be removed and replaced. A determination to retain foreign construction material does not constitute a determina- tion that an exception to the Buy American statute applies, and this should be stated in the determination. Further, a determi- nation to retain foreign construction material does not affect the Government’s right to suspend or debar a contractor, sub- contractor, or supplier for violation of the Buy American stat- ute, or to exercise other contractual rights and remedies, such as reducing the contract price or terminating the contract for default.
(4) If the noncompliance is sufficiently serious, con- sider exercising appropriate contractual remedies, such as ter- minating the contract for default. Also consider preparing and forwarding a report to the agency suspending or debarring official in accordance with subpart 9.4. If the noncompliance appears to be fraudulent, refer the matter to other appropriate agency officials, such as the officer responsible for criminal investigation.
Subpart 25.3—Contracts Performed Outside the United States 25.302-2
Subpart 25.3—Contracts Performed Outside the United States
25.301 Contractor personnel in a designated operational area or supporting a diplomatic or consular mission outside the United States.
25.301-1 Scope.
(a) This section applies to contracts requiring contractor personnel to perform outside the United States—
(1) In a designated operational area during—
(i) Contingency operations;
(ii) Humanitarian or peacekeeping operations; or
(iii) Other military operations or military exercises, when designated by the combatant commander; or
(2) When supporting a diplomatic or consular mis- sion—
(i) That has been designated by the Department of State as a danger pay post (see xxxx://xxxxxxx.xxxxx.xxx/ Web920/danger_pay_all.asp); or
(ii) That the contracting officer determines is a post at which application of the clause at FAR 52.225-19, Contrac- tor Personnel in a Designated Operational Area or Supporting a Diplomatic or Consular Mission outside the United States, is appropriate.
(b) Any of the types of operations listed in paragraph (a)(1) of this section may include stability operations such as—
(1) Establishment or maintenance of a safe and secure environment; or
(2) Provision of emergency infrastructure reconstruc- tion, humanitarian relief, or essential governmental services (until feasible to transition to local government).
(c) This section does not apply to personal services con- tracts (see FAR 37.104), unless specified otherwise in agency procedures.
25.301-2 Government support.
(a) Generally, contractors are responsible for providing their own logistical and security support, including logistical and security support for their employees. The agency shall provide logistical or security support only when the appropri- ate agency official, in accordance with agency guidance, determines that—
(1) Such Government support is available and is needed to ensure continuation of essential contractor services; and
(2) The contractor cannot obtain adequate support from other sources at a reasonable cost.
(b) The contracting officer shall specify in the contract, and in the solicitation if possible, the exact support to be provided, and whether this support is provided on a reimbursable basis, citing the authority for the reimbursement.
25.301-3 Weapons.
The contracting officer shall follow agency procedures and the weapons policy established by the combatant commander or the chief of mission when authorizing contractor personnel to carry weapons (see paragraph (i) of the clause at 52.225-19, Contractor Personnel in a Designated Operational Area or Supporting a Diplomatic or Consular Mission outside the United States).
25.301-4 Contract clause.
Insert the clause at 52.225-19, Contractor Personnel in a Designated Operational Area or Supporting a Diplomatic or Consular Mission outside the United States, in solicitations and contracts, other than personal service contracts with indi- viduals, that will require contractor personnel to perform out- side the United States—
(a) In a designated operational area during—
(1) Contingency operations;
(2) Humanitarian or peacekeeping operations; or
(3) Other military operations or military exercises, when designated by the combatant commander; or
(b) When supporting a diplomatic or consular mission—
(1) That has been designated by the Department of State as a danger pay post (see xxxx://xxxxxxx.xxxxx.xxx/Xxx000/ danger_pay_all.asp); or
(2) That the contracting officer determines is a post at which application of the clause FAR 52.225-19, Contractor Personnel in a Designated Operational Area or Supporting a Diplomatic or Consular Mission outside the United States, is appropriate.
25.302 Contractors performing private security functions outside the United States.
25.302-1 Scope.
This section prescribes policy for implementing section 862 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2008 (Pub. L. 110-181), as amended by sec- tion 853 of the NDAA for FY 2009 (Pub. L. 110-417), and sections 831 and 832 of the NDAA for FY 2011 (Pub. L. 111-
383) (see 10 U.S.C. 2302 Note).
25.302-2 Definitions.
As used in this section—
“Area of combat operations” means an area of operations designated as such by the Secretary of Defense when enhanced coordination of contractors performing private security functions working for Government agencies is required.
“Other significant military operations” means activities, other than combat operations, as part of a contingency opera- tion outside the United States that is carried out by United States Armed Forces in an uncontrolled or unpredictable high-
FAC 2005–91 OCTOBER 31, 2016
25.302-3 Federal Acquisition Regulation
threat environment where personnel performing security functions may be called upon to use deadly force (see 25.302-3(a)(2)).
“Private security functions means” activities engaged in by a contractor, as follows—
(1) Guarding of personnel, facilities, designated sites, or property of a Federal agency, the contractor or subcontractor, or a third party; or
(2) Any other activity for which personnel are required to carry weapons in the performance of their duties in accor- dance with the terms of the contract.
25.302-3 Applicability.
(a) This section applies to contracts that require perfor- mance outside the United States–
(1) In an area of combat operations as designated by the Secretary of Defense; or
(2) In an area of other significant military operations as designated by the Secretary of Defense, and only upon agree- ment of the Secretary of Defense and the Secretary of State.
(b) These designations can be found at http:// www.acq .xxx.xxx/xxxx/xxxx/xx/ designated_areas_of_other_significant_military_operations. html and xxxx://xxx.xxx.xxx.xxx/xxxx/xxxx/xx/ designated_areas_of_combat_operations.html.
(c) When the applicability requirements of this subsection are met, contractors and subcontractors must comply with 32 CFR part 159, whether the contract is for the performance of private security functions as a primary deliverable or the pro- vision of private security functions is ancillary to the stated deliverables.
(d) The requirements of section 25.302 shall not apply to—
(1) Contracts entered into by elements of the intelli- gence community in support of intelligence activities; or
(2) Temporary arrangements entered into on a non-DoD contract for the performance of private security functions by individual indigenous personnel not affiliated with a local or expatriate security company. These temporary arrangements must still comply with local law.
25.302-4 Policy.
(a) General. (1) The policy, responsibilities, procedures, accountability, training, equipping, and conduct of personnel performing private security functions in designated areas are addressed at 32 CFR part 159, entitled “Private Security Con- tractors Operating in Contingency Operations” Contractor responsibilities include ensuring that employees are aware of, and comply with, relevant orders, directives, and instructions; keeping appropriate personnel records; accounting for weap- ons; registering and identifying armored vehicles, helicopters, and other military vehicles; and reporting specified incidents in which personnel performing private security functions under a contract are involved.
(2) In addition, contractors are required to fully cooper- ate with any Government-authorized investigation into inci- dents reported pursuant to paragraph (c)(3) of the clause at 52.225-26, Contractors Performing Private Security Func- tions Outside the United States, by providing access to employees performing private security functions and relevant information in the possession of the contractor regarding the incident concerned.
(b) Implementing guidance. In accordance with 32 CFR part 159—
(1) Geographic combatant commanders will provide DoD contractors performing private security functions with guidance and procedures for the operational environment in their area of responsibility; and
(2) In a designated area of combat operations, or areas of other significant military operations, as designated by the Secretary of Defense and only upon agreement of the Secre- tary of Defense and the Secretary of State, the relevant Chief of Mission will provide implementing instructions for non- DoD contractors performing private security functions and their personnel consistent with the standards set forth by the geographic combatant commander. In accordance with 32 CFR 159.4(c), the Chief of Mission has the option of instruct- ing non-DoD contractors performing private security func- tions and their personnel to follow the guidance and procedures of the geographic combatant commander and/or a sub-unified commander or joint force commander where spe- cifically authorized by the combatant commander to do so and notice of that authorization is provided to non-DoD agencies.
25.302-5 Remedies.
(a) In addition to other remedies available to the Govern- ment—
(1) The contracting officer may direct the contractor, at its own expense, to remove and replace any contractor or sub- contractor personnel performing private security functions who fail to comply with or violate applicable requirements. Such action may be taken at the Government's discretion with- out prejudice to its rights under any other contract provision, e.g., termination for default;
(2) The contracting officer shall include the contractor’s failure to comply with the requirements of this section in appropriate databases of past performance and consider any such failure in any responsibility determination or evaluation of past performance; and
(3) In the case of award-fee contracts, the contracting officer shall consider a contractor’s failure to comply with the requirements of this subsection in the evaluation of the con- tractor’s performance during the relevant evaluation period, and may treat such failure as a basis for reducing or denying award fees for such period or for recovering all or part of award fees previously paid for such period.
FAC 2005–91 OCTOBER 31, 2016
Subpart 25.3—Contracts Performed Outside the United States 25.302-6
(b) If the performance failures are severe, prolonged, or repeated, the contracting officer shall refer the matter to the appropriate suspending and debarring official.
25.302-6 Contract clause.
(a) Use the clause at 00.000-00, Xxxxxxxxxxx Xxxxxxxxxx Xxxxxxx Xxxxxxxx Xxxxxxxxx Xxxxxxx xxx Xxxxxx Xxxxxx, in solic- itations and contracts for performance outside the United States in an area of–
(1) Combat operations, as designated by the Secretary of Defense; or
(2) Other significant military operations, as designated by the Secretary of Defense and only upon agreement of the Secretary of Defense and the Secretary of State.
(b) The clause is not required to be used for—
(1) Contracts entered into by elements of the intelli- gence community in support of intelligence activities; or
(2) Temporary arrangements entered into by non-DoD contractors for the performance of private security functions by individual indigenous personnel not affiliated with a local or expatriate security company.
Subpart 25.4—Trade Agreements 25.401
Subpart 25.4—Trade Agreements
25.400 Scope of subpart.
(a) This subpart provides policies and procedures applica- ble to acquisitions that are covered by—
(1) The World Trade Organization Government Pro- curement Agreement (WTO GPA), as approved by Congress in the Uruguay Round Agreements Act (Public Law 103-465);
(2) Free Trade Agreements (FTA), consisting of—
(i) NAFTA (the North American Free Trade Agree- ment, as approved by Congress in the North American Free Trade Agreement Implementation Act of 1993 (Pub. L. 103- 182) (19 U.S.C. 3301 note));
(ii) Chile FTA (the United States-Chile Free Trade Agreement, as approved by Congress in the United States- Chile Free Trade Agreement Implementation Act of 1993 (Pub. L. 108-77) (19 U.S.C. 3805 note));
(iii) Singapore FTA (the United Xxxxxx-Xxxxxxxxx Xxxx Xxxxx Xxxxxxxxx, xx xxxxxxxx xx Xxxxxxxx xx xxx Xxxxxx Xxxxxx-Singapore Free Trade Agreement Implementation Act (Pub. L. 108-78) (19 U.S.C. 3805 note));
(iv) Australia FTA (the United States-Australia Free Trade Agreement, as approved by Congress in the United States-Australia Free Trade Agreement Implementation Act (Pub. L. 108-286) (19 U.S.C. 3805 note));
(v) Morocco FTA (The United States-Morocco Free Trade Agreement, as approved by Congress in the United States-Morocco Free Trade Agreement Implementation Act (Pub. L. 108-302) (19 U.S.C. 3805 note));
(vii) Bahrain FTA (the United States-Bahrain Free Trade Agreement, as approved by Congress in the United States-Bahrain Free Trade Agreement Implementation Act (Pub. L. 109-169) (19 U.S.C. 3805 note));
(viii) Oman FTA (the United States-Oman Free Trade Agreement, as approved by Congress in the United States-Oman Free Trade Agreement Implementation Act (Pub. L. 109-283) (19 U.S.C. 3805 note));
(ix) Peru FTA (the United States-Peru Trade Promo- tion Agreement, as approved by Congress in the United States-Peru Trade Promotion Agreement Implementation Act (Pub. L. 110-138) (19 U.S.C. 3805 note));
(x) Korea FTA (the United States–Korea Free Trade Agreement Implementation Act (Pub. L. 112-41) (19 U.S.C. 3805));
(xi) Colombia FTA (the United States–Colombia Trade Promotion Agreement Implementation Act (Pub. L. 112-42) (19 U.S.C. 3805 note)); and
(xii) Panama FTA (the United States-Panama Trade Promotion Agreement Implementation Act (Pub. L. 112-43) (19 U.S.C. 3805 note));
(3) The least developed country designation made by the U.S. Trade Representative, pursuant to the Trade Agree- ments Act (19 U.S.C. 2511(b)(4)), in acquisitions covered by the WTO GPA;
(4) The Caribbean Basin Trade Initiative (CBTI) (deter- mination of the U.S. Trade Representative that end products or construction material granted duty-free entry from coun- tries designated as beneficiaries under the Caribbean Basin Economic Recovery Act (19 U.S.C. 2701, et seq.), with the exception of Panama, must be treated as eligible products in acquisitions covered by the WTO GPA);
(5) The Israeli Trade Act (the U.S.-Israel Free Trade Area Agreement, as approved by Congress in the United States-Israel Free Trade Area Implementation Act of 1985 (19 U.S.C. 2112 note)); or
(6) The Agreement on Trade in Civil Aircraft (U.S. Trade Representative waiver of the Buy American statute for signatories of the Agreement on Trade in Civil Aircraft, as implemented in the Trade Agreements Act of 1979 (19 U.S.C. 2513)).
(b) For application of the trade agreements that are unique to individual agencies, see agency regulations.
25.401 Exceptions.
(a) This subpart does not apply to—
(1) Acquisitions set aside for small businesses;
(2) Acquisitions of arms, ammunition, or war materials, or purchases indispensable for national security or for national defense purposes;
(3) Acquisitions of end products for resale;
(4) Xxxxxxxxxxxx xxxx Xxxxxxx Xxxxxx Xxxxxxxxxx, Xxx., xxxxx xxxxxxx 0.0, xxx acquisitions under subpart 8.7, Acqui- sition from Nonprofit Agencies Employing People Who Are Blind or Severely Disabled; and
(5) Other acquisitions not using full and open competi- tion, if authorized by subpart 6.2 or 6.3, when the limitation of competition would preclude use of the procedures of this subpart; or sole source acquisitions justified in accordance with 13.501(a).
(b) In the World Trade Organization Government Procure- ment Agreement (WTO GPA) and each FTA, there is a U.S. schedule that lists services that are excluded from that agree- ment in acquisitions by the United States. Acquisitions of the following services are excluded from coverage by the U.S. schedule of the WTO GPA or an FTA as indicated in this table:
FAC 2005–92 DECEMBER 19, 2016
25.401 Federal Acquisition Regulation
The Service (Federal Service Codes from the Federal Procurement Data System Product/ Service Code Manual are indicated in parentheses for some services.) | WTO GPA AND KOREA FTA | BAHRAIN FTA, CAFTA–DR, CHILE FTA, COLOMBIA FTA, NAFTA, OMAN FTA, PANAMA FTA, AND PERU FTA | Singapore FTA | Australia and Morocco FTA | |
(1) | All services purchased in support of military services overseas. | X | X | X | X |
(2) | (i) Automatic data processing (ADP) telecommuni- cations and transmission services (D304), except enhanced (i.e., value-added) telecommunications services. | X | X | ||
(ii) ADP teleprocessing and timesharing services (D305), telecommunications network manage- ment services (D316), automated news services, data services or other information services (D317), and other ADP and telecommunications services (D399). | X | X | |||
(iii) Basic telecommunications network services (i.e., voice telephone services, packet-switched data transmission services, circuit-switched data transmission services, telex services, facsimile services, and private leased circuit services, but not information services, as defined in 47 U.S.C. 153(24)). | * | * | X | X | |
(3) | Dredging. | X | X | X | X |
(4) | (i) Operation and management contracts of certain Government or privately owned facilities used for Government purposes, including Federally Funded Research and Development Centers. | X | X | ||
(ii) Operation of all Department of Defense, Depart- ment of Energy, or the National Aeronautics and Space Administration facilities; and all Govern- ment-owned research and development facilities or Government-owned environmental laborato- ries. | ** | X | ** | X | |
(5) | Research and development. | X | X | X | X |
(6) | Transportation services (including launching ser- vices, but not including travel agent services). | X | X | X | X |
(7) | Utility services. | X | X | X | X |
(8) | Maintenance, repair, modification, rebuilding and installation of equipment related to ships (J019). | X | X | ||
(9) | Nonnuclear ship repair (J998). | X | X |
* Note 1. Acquisitions of the services listed at (2)(iii) of this table are a subset of the excluded services at (2)(i) and (ii), and are therefore not covered under the WTO GPA.
** Note 2. Acquisitions of the services listed at (4)(ii) of this table are a subset of the excluded services at (4)(i), and are therefore not covered under the WTO GPA.
Subpart 25.4—Trade Agreements 25.404
25.402 General.
(a)(1) The Trade Agreements Act (19 U.S.C. 2501, et seq.) provides the authority for the President to waive the Buy American statute and other discriminatory provisions for eli- gible products from countries that have signed an interna- tional trade agreement with the United States, or that meet certain other criteria, such as being a least developed country. The President has delegated this waiver authority to the U.S. Trade Representative. In acquisitions covered by the WTO GPA, Free Trade Agreements, or the Israeli Trade Act, the
U.S. Trade Representative has waived the Buy American stat- ute and other discriminatory provisions for eligible products. Offers of eligible products receive equal consideration with domestic offers.
(2) The contracting officer shall determine the origin of services by the country in which the firm providing the ser- vices is established. See subpart 25.5 for evaluation proce- dures for supply contracts covered by trade agreements.
(b) The value of the acquisition is a determining factor in the applicability of trade agreements. Most of these dollar thresholds are subject to revision by the U.S. Trade Represen- tative approximately every 2 years. The various thresholds are summarized as follows:
00.000 Xxxxx Xxxxx Xxxxxxxxxxxx Xxxxxxxxxx Xxxxxxxxxxx Xxxxxxxxx xxx Xxxx Xxxxx Xxxxxxxxxx.
(x) Eligible products from WTO GPA and FTA countries are entitled to the nondiscriminatory treatment specified in 25.402(a)(1). The WTO GPA and FTAs specify procurement procedures designed to ensure fairness (see 25.408).
(b) Thresholds. (1) To determine whether the acquisition of products by lease, rental, or lease-purchase contract (including lease-to-ownership, or lease-with-option-to pur- chase) is covered by the WTO GPA or an FTA, calculate the estimated acquisition value as follows:
(i) If a fixed-term contract of 12 months or less is contemplated, use the total estimated value of the acquisition.
(ii) If a fixed-term contract of more than 12 months is contemplated, use the total estimated value of the acquisi- tion plus the estimated residual value of the leased equipment at the conclusion of the contemplated term of the contract.
(iii) If an indefinite-term contract is contemplated, use the estimated monthly payment multiplied by the total number of months that ordering would be possible under the proposed contract, i.e., the initial ordering period plus any optional ordering periods.
(iv) If there is any doubt as to the contemplated term of the contract, use the estimated monthly payment multiplied by 48.
(2) The estimated value includes the value of all options.
(3) If, in any 12-month period, recurring or multiple awards for the same type of product or products are antici- pated, use the total estimated value of these projected awards to determine whether the WTO GPA or an FTA applies. Do not divide any acquisition with the intent of reducing the esti- mated value of the acquisition below the dollar threshold of the WTO GPA or an FTA.
(c) Purchase restriction. (1) Under the Trade Agreements Act (19 U.S.C. 2512), in acquisitions covered by the WTO GPA, acquire only U.S.-made or designated country end prod- ucts or U.S. or designated country services, unless offers for such end products or services are either not received or are insufficient to fulfill the requirements. This purchase restric- tion does not apply below the WTO GPA threshold for sup- plies and services, even if the acquisition is covered by an FTA.
Trade Agreement | Supply Contract (equal to or exceeding) | Service Contract (equal to or exceeding) | Construction Contract (equal to or exceeding) |
WTO GPA | $191,000 | $191,000 | $7,358,000 |
FTAs | |||
Australia FTA | 77,533 | 77,533 | 7,358,000 |
Bahrain FTA | 191,000 | 191,000 | 10,079,365 |
CAFTA-DR | 77,533 | 77,533 | 7,358,000 |
(Costa Rica, | |||
Dominican | |||
Republic, | |||
El Salvador, | |||
Guatemala, | |||
Honduras, and | |||
Nicaragua) | |||
Chile FTA | 77,533 | 77,533 | 7,358,000 |
Colombia FTA | 77,533 | 77,533 | 7,358,000 |
Korea FTA | 100,000 | 100,000 | 7,358,000 |
Morocco FTA | 191,000 | 191,000 | 7,358,000 |
NAFTA | |||
—Canada | 25,000 | 77,533 | 10,079,365 |
—Mexico | 77,533 | 77,533 | 10,079,365 |
Oman FTA | 191,000 | 191,000 | 10,079,365 |
Panama | 191,000 | 191,000 | 7,358,000 |
Peru FTA | 191,000 | 191,000 | 7,358,000 |
Singapore FTA | 77,533 | 77,533 | 7,358,000 |
Israeli Trade Act | 50,000 | — | — |
(2) This restriction does not apply to purchases of sup- plies by the Department of Defense from a country with which it has entered into a reciprocal agreement, as provided in departmental regulations.
25.404 Least developed countries.
For acquisitions covered by the WTO GPA, least devel- oped country end products, construction material, and ser- vices must be treated as eligible products.
FAC 2005–86 FEBRUARY 1, 2016
25.405 Federal Acquisition Regulation
25.405 Caribbean Basin Trade Initiative.
25.406 Israeli Trade Act.
Acquisitions of supplies by most agencies are covered by the Israeli Trade Act, if the estimated value of the acquisition is $50,000 or more but does not exceed the WTO GPA thresh- old for supplies (see 25.402(b)). Agencies other than the Department of Defense, the Department of Energy, the Department of Transportation, the Bureau of Reclamation of the Department of the Interior, the Federal Housing Finance Board, and the Office of Thrift Supervision must evaluate offers of Israeli end products without regard to the restrictions of the Buy American statute. The Israeli Trade Act does not prohibit the purchase of other foreign end products.
25.407 Agreement on Trade in Civil Aircraft.
Under the authority of Section 303 of the Trade Agree- ments Act, the U.S. Trade Representative has waived the Buy
American statute for civil aircraft and related articles that meet the substantial transformation test of the Trade Agree- ments Act, from countries that are parties to the Agreement on Trade in Civil Aircraft. Those countries are Albania, Xxxxxxx, Xxxxxxx, Xxxxxxxx, Xxxxxx, Xxxxxxx, Xxxxxx, Xxxxx Xxxxxxxx, Denmark, Egypt, Xxxxxxx, Xxxxxxx, Xxxxxx, Xxxxxxx, Xxx- xxxx, Xxxxxx, Xxxxxxx, Ireland, Italy, Japan, Xxxxxx, Xxxxxx- xxx, Xxxxxxxxxx, Xxxxx Xxxxx, Malta, Montenegro, the Xxxxxxxxxxx, Xxxxxx, Xxxxxx, Xxxxxxxx, Xxxxxxx, Xxxxxxxx, Xxxxxxxx, Xxxxx, Sweden, Switzerland, Taiwan (Chinese Tai- pei), and the United Kingdom.
25.408 Procedures.
(a) If the WTO GPA or an FTA applies (see 25.401), the contracting officer must—
(1) Comply with the requirements of 5.203, Publicizing and response time;
(2) Comply with the requirements of 5.207, Preparation and transmittal of synopses;
(3) Not include technical requirements in solicitations solely to preclude the acquisition of eligible products;
(4) Specify in solicitations that offerors must submit offers in the English language and in U.S. dollars (see 52.214-34, Submission of Offers in the English Language, and 52.214-35, Submission of Offers in U.S. Currency, or paragraph (c)(5) of 52.215-1, Instruction to Offerors—Com- petitive Acquisitions); and
(5) Provide unsuccessful offerors from WTO GPA or FTA countries notice in accordance with 14.409-1 or 15.503.
(b) See subpart 25.5 for evaluation procedures and examples.
FAC 2005–73 MAY 29, 2014
Subpart 25.5—Evaluating Foreign Offers—Supply Contracts 25.503
Subpart 25.5—Evaluating Foreign Offers— Supply Contracts
25.501 General.
The contracting officer—
(a) Must apply the evaluation procedures of this subpart to each line item of an offer unless either the offer or the solici- tation specifies evaluation on a group basis (see 25.503);
(b) May rely on the offeror’s certification of end product origin when evaluating a foreign offer;
(c) Must identify and reject offers of end products that are prohibited in accordance with Subpart 25.7; and
(d) Must not use the Buy American statute evaluation fac- tors prescribed in this subpart to provide a preference for one foreign offer over another foreign offer.
25.502 Application.
(a) Unless otherwise specified in agency regulations, per- form the following steps in the order presented:
(1) Eliminate all offers or offerors that are unacceptable for reasons other than price; e.g., nonresponsive, debarred or suspended, or a prohibited source (see Subpart 25.7).
(2) Rank the remaining offers by price.
(3) If the solicitation specifies award on the basis of fac- tors in addition to cost or price, apply the evaluation factors as specified in this section and use the evaluated cost or price in determining the offer that represents the best value to the Government.
(b) For acquisitions covered by the WTO GPA (see Subpart 25.4)—
(1) Consider only offers of U.S.-made or designated country end products, unless no offers of such end products were received;
(2) If the agency gives the same consideration given eli- gible offers to offers of U.S.-made end products that are not domestic end products, award on the low offer. Otherwise, evaluate in accordance with agency procedures; and
(3) If there were no offers of U.S.-made or designated country end products, make a nonavailability determination (see 25.103(b)(2)) and award on the low offer (see 25.403(c)).
(c) For acquisitions not covered by the WTO GPA, but sub- ject to the Buy American statute (an FTA or the Israeli Trade Act also may apply), the following applies:
(1) If the low offer is a domestic offer or an eligible offer under an FTA or the Israeli Trade Act, award on that offer.
(2) If the low offer is a noneligible offer and there were no domestic offers (see 25.103(b)(3)), award on the low offer.
(3) If the low offer is a noneligible offer and there is an eligible offer that is lower than the lowest domestic offer, award on the low offer. The Buy American statute provides an evaluation preference only for domestic offers.
(4) Otherwise, apply the appropriate evaluation factor provided in 25.105 to the low offer.
(i) If the evaluated price of the low offer remains less than the lowest domestic offer, award on the low offer.
(ii) If the price of the lowest domestic offer is less than the evaluated price of the low offer, award on the lowest domestic offer.
(d) Ties. (1) If application of an evaluation factor results in a tie between a domestic offer and a foreign offer, award on the domestic offer.
(2) If no evaluation preference was applied (i.e., offers afforded nondiscriminatory treatment under the Buy Ameri- can statute), resolve ties between domestic and foreign offers by a witnessed drawing of lots by an impartial individual.
(3) Resolve ties between foreign offers from small busi- ness concerns (under the Buy American statute, a small busi- ness offering a manufactured article that does not meet the definition of “domestic end product” is a foreign offer) or for- eign offers from a small business concern and a large business concern in accordance with 14.408-6(a).
25.503 Group offers.
(a) If the solicitation or an offer specifies that award can be made only on a group of line items or on all line items con- tained in the solicitation or offer, reject the offer—
(1) If any part of the award would consist of prohibited end products (see Subpart 25.7); or
(2) If the acquisition is covered by the WTO GPA and any part of the offer consists of items restricted in accordance with 22.403(c).
(b) If an offer restricts award to a group of line items or to all line items contained in the offer, determine for each line item whether to apply an evaluation factor (see 25.504-4, Example 1).
(1) First, evaluate offers that do not specify an award restriction on a line item basis in accordance with 25.502, determining a tentative award pattern by selecting for each line item the offer with the lowest evaluated price.
(2) Evaluate an offer that specifies an award restriction against the offered prices of the tentative award pattern, apply- ing the appropriate evaluation factor on a line item basis.
(3) Compute the total evaluated price for the tentative award pattern and the offer that specified an award restriction.
(4) Unless the total evaluated price of the offer that specified an award restriction is less than the total evaluated price of the tentative award pattern, award based on the ten- tative award pattern.
(c) If the solicitation specifies that award will be made only on a group of line items or all line items contained in the solic- itation, determine the category of end products on the basis of each line item, but determine whether to apply an evaluation factor on the basis of the group of items (see 25.504-4, Exam- ple 2).
(1) If the proposed price of domestic end products exceeds 50 percent of the total proposed price of the group,
FAC 2005–73 MAY 29, 2014
25.504 Federal Acquisition Regulation
evaluate the entire group as a domestic offer. Evaluate all other groups as foreign offers.
(2) For foreign offers, if the proposed price of domestic end products and eligible products exceeds 50 percent of the total proposed price of the group, evaluate the entire group as an eligible offer.
(3) Apply the evaluation factor to the entire group in accordance with 25.502.
25.504 Evaluation examples.
The following examples illustrate the application of the evaluation procedures in 25.502 and 25.503. The examples assume that the contracting officer has eliminated all offers that are unacceptable for reasons other than price or a trade agreement (see 25.502(a)(1)). The evaluation factor may change as provided in agency regulations.
25.504-1 Buy American statute.
(a)(1) Example 1.
Offer A | $12,000 | Domestic end product, small business |
Offer B | $11,700 | Domestic end product, small business |
Offer C | $10,000 | U.S.-made end product (not domestic), |
small business |
(2) Analysis: This acquisition is for end products for use in the United States and is set aside for small business con- cerns. The Buy American statute applies. Since the acquisi- tion value is less than $25,000 and the acquisition is set aside, none of the trade agreements apply. Perform the steps in 25.502(a). Offer C is evaluated as a foreign end product because it is the product of a small business, but is not a domestic end product (see 25.502(c)(4)). Since Offer B is a domestic offer, apply the 12 percent factor to Offer C (see 25.105(b)(2)). The resulting evaluated price of $11,200 remains lower than Offer B. The cost of Offer B is therefore unreasonable (see 25.105(c)). Award on Offer C at $10,000 (see 25.502(c)(4)(i)).
(b)(1) Example 2.
Offer A | $11,000 | Domestic end product, small business |
Offer B | $10,700 | Domestic end product, small business |
Offer C | $10,200 | U.S.-made end product (not domestic), |
small business |
(2) Analysis: This acquisition is for end products for use in the United States and is set aside for small business con- cerns. The Buy American statute applies. Perform the steps in 25.502(a). Offer C is evaluated as a foreign end product because it is the product of a small business but is not a domes- tic end product (see 25.502(c)(4)). After applying the
12 percent factor, the evaluated price of Offer C is $11,424. Award on Offer B at $10,700 (see 25.502(c)(4)(ii)).
25.504-2 WTO GPA/Caribbean Basin Trade Initiative/ FTAs.
Example 1.
Offer A | $304,000 | U.S.-made end product (not domestic) |
Offer B | $303,000 | U.S.-made end product (domestic), |
small business | ||
Offer C | $300,000 | Eligible product |
Offer D | $295,000 | Noneligible product (not U.S.-made) |
Analysis: Eliminate Offer D because the acquisition is cov- ered by the WTO GPA and there is an offer of a U.S.-made or an eligible product (see 25.502(b)(1)). If the agency gives the same consideration given eligible offers to offers of U.S.- made end products that are not domestic offers, it is unneces- sary to determine if U.S.-made end products are domestic (large or small business). No further analysis is necessary. Award on the low remaining offer, Offer C (see 25.502(b)(2)).
25.504-3 FTA/Israeli Trade Act.
(a) Example 1.
Offer A $105,000 Domestic end product, small business Offer B $100,000 Eligible product
Analysis: Since the low offer is an eligible offer, award on the low offer (see 25.502(c)(1)).
(b) Example 2.
Offer A $105,000 Eligible product Offer B $103,000 Noneligible product
Analysis: Since the acquisition is not covered by the WTO GPA, the contracting officer can consider the noneligible offer. Since no domestic offer was received, make a nonavail- ability determination and award on Offer B (see 25.502(c)(2)).
(c) Example 3.
Offer A | $105,000 | Domestic end product, large business |
Offer B | $103,000 | Eligible product |
Offer C | $100,000 | Noneligible product |
Analysis: Since the acquisition is not covered by the WTO GPA, the contracting officer can consider the noneligible offer. Because the eligible offer (Offer B) is lower than the domestic offer (Offer A), no evaluation factor applies to the low offer (Offer C). Award on the low offer (see 25.502(c)(3)).
FAC 2005–73 MAY 29, 2014
Subpart 25.5—Evaluating Foreign Offers—Supply Contracts 25.504-4
25.504-4 Group award basis.
Key:
DO = Domestic end product
EL = Eligible product
NEL = Noneligible product
OFFERS | |||||||||
Item | A | B | C | ||||||
1 | DO | = | $55,000 | EL | = | $56,000 | NEL | = | $50,000 |
2 | NEL | = | 13,000 | EL | = | 10,000 | EL | = | 13,000 |
3 | NEL | = | 11,500 | DO | = | 12,000 | DO | = | 10,000 |
4 | NEL | = | 24,000 | EL | = | 28,000 | NEL | = | 22,000 |
5 | DO | = | 18,000 | NEL | = | 10,000 | DO | = | 14,000 |
$121,500 | $116,000 | $109,000 | |||||||
(a) Example 1.
Problem: Offeror C specifies all-or-none award. Assume all offerors are large businesses. The acquisition is not cov- ered by the WTO GPA.
Analysis: (see 25.503)
STEP 1: Evaluate Offers A & B before considering Offer C and determine which offer has the lowest evaluated cost for each line item (the tentative award pattern):
Item 1: Low offer A is domestic; select A.
Item 2: Low offer B is eligible; do not apply factor; select B.
Item 3: Low offer A is noneligible and Offer B is a domestic offer. Apply a 6 percent factor to Offer A. The eval- uated price of Offer A is higher than Offer B; select B.
Item 4: Low offer A is noneligible. Since neither offer is a domestic offer, no evaluation factor applies; select A.
Item 5: Low offer B is noneligible; apply a 6 percent fac- tor to Offer B. Offer A is still higher than Offer B; select B.
OFFERS | |||||||
Item | Low Offer | Tentative Award Xxxxxxx xxxx X xxx X | X | ||||
0 | X | XX | = | $ 55,000 | NEL | = | $53,000* |
2 | B | EL | = | 10,000 | EL | = | 13,000 |
3 | B | DO | = | 12,000 | DO | = | 10,000 |
4 | A | NEL | = | 24,000 | NEL | = | 22,000 |
5 | B | NEL | = | 10,600* | DO | = | 14,000 |
$111,600 | $112,000 | ||||||
STEP 2: Evaluate Offer C against the tentative award pat- tern for Offers A and B:
*Offer + 6 percent.
On a line item basis, apply a factor to any noneligible offer if the other offer for that line item is domestic.
For Item 1, apply a factor to Offer C because Offer A is domestic and the acquisition was not covered by the WTO GPA. The evaluated price of Offer C, Item 1, becomes
$53,000 ($50,000 plus 6 percent). Apply a factor to Offer B, Item 5, because it is a noneligible product and Offer C is domestic. The evaluated price of Offer B is $10,600 ($10,000 plus 6 percent). Evaluate the remaining items without apply- ing a factor.
STEP 3: The tentative unrestricted award pattern from Offers A and B is lower than the evaluated price of Offer C. Award the combination of Offers A and B. Note that if Offer C had not specified all-or-none award, award would be made on Offer C for line items 1, 3, and 4, totaling an award of
$82,000.
(b) Example 2.
OFFERS | ||||||||
Item | A | B | C | |||||
1 | DO | = | $50,000 | EL | = | $50,500 | NEL = | $50,000 |
2 | NEL | = | 10,300 | NEL | = | 10,000 | EL = | 10,200 |
3 | EL | = | 20,400 | EL | = | 21,000 | NEL = | 20,200 |
4 | DO | = | 10,500 | DO | = | 10,300 | DO = | 10,400 |
$91,200 | $91,800 | $90,800 | ||||||
Problem: The solicitation specifies award on a group basis. Assume the Buy American statute applies and the acquisition cannot be set aside for small business concerns. All offerors are large businesses.
Analysis: (see 25.503(c))
STEP 1: Determine which of the offers are domestic (see 25.503(c)(1)):
Domestic% | Determination | |
A | 60,500/91,200 = 66.3% | Domestic |
B | 10,300/91,800 = 11.2% | Foreign |
C | 10,400/90,800 = 11.5% | Foreign |
STEP 2: Determine whether foreign offers are eligible or noneligible offers (see 25.503(c)(2)):
Domestic + Eligible% | Determination | |
A | N/A | Domestic |
B | 81,800/91,800 = 89.1% | Eligible |
C | 20,600/90,800 = 22.7% | Noneligible |
25.504-4 Federal Acquisition Regulation
STEP 3: Determine whether to apply an evaluation fac- tor (see 25.503(c)(3)). The low offer (Offer C) is a foreign offer. There is no eligible offer lower than the domestic offer. Therefore, apply the factor to the low offer. Addition of the 6 percent factor (use 12 percent if Offer A is a small business)
to Offer C yields an evaluated price of $96,248 ($90,800 + 6 percent). Award on Offer A (see 25.502(c)(4)(ii)). Note that, if Offer A were greater than Offer B, an evaluation factor would not be applied and award would be on Offer C (see 25.502(c)(3)).
Subpart 25.6—American Recovery and Reinvestment Act—Buy American statute—
Construction Materials 25.602-1
Subpart 25.6—American Recovery and Reinvestment Act—Buy American statute— Construction Materials
25.600 Scope of subpart.
This subpart implements section 1605 in Division A of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5) (Recovery Act) with regard to manufactured construc- tion material and the 41 U.S.C. chapter 83, Buy American (referred to in this subpart as the Buy American statute) with regard to unmanufactured construction material. It applies to construction projects that use funds appropriated or otherwise provided by the Recovery Act.
25.601 Definitions.
As used in this subpart—
“Domestic construction material” means the following:
(1) An unmanufactured construction material mined or produced in the United States. (The Buy American statute applies.)
(2) A manufactured construction material that is manu- factured in the United States and, if the construction material consists wholly or predominantly of iron or steel, the iron or steel was produced in the United States. (Section 1605 of the Recovery Act applies.)
“Foreign construction material” means a construction material other than a domestic construction material.
“Manufactured construction material” means any con- struction material that is not unmanufactured construction material.
“Public building or public work” means a building or work, the construction, prosecution, completion, or repair of which is carried on directly or indirectly by authority of, or with funds of, a Federal agency to serve the interest of the general public regardless of whether title thereof is in a Federal agency (see 22.401). These buildings and works may include, without limitation, bridges, dams, plants, highways, park- ways, streets, subways, tunnels, sewers, mains, power lines, pumping stations, heavy generators, railways, airports, termi- nals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, and canals, and the construction, alter- ation, maintenance, or repair of such buildings and works.
“Recovery Act designated country” means a World Trade Organization Government Procurement Agreement country, a Free Trade Agreement country, or a least developed country. “Steel” means an alloy that includes at least 50 percent iron, between .02 and 2 percent carbon, and may include other
elements.
“Unmanufactured construction material” means raw mate- rial brought to the construction site for incorporation into the building or work that has not been—
(1) Processed into a specific form and shape; or
(2) Combined with other raw material to create a mate- rial that has different properties than the properties of the indi- vidual raw materials.
25.602 Policy.
25.602-1 Section 1605 of the Recovery Act.
Except as provided in 25.603—
(a) None of the funds appropriated or otherwise made available by the Recovery Act may be used for a project for the construction, alteration, maintenance, or repair of a public building or public work unless the public building or public work is located in the United States and—
(1) All of the iron, steel, and manufactured goods used as construction material in the project are produced or manu- factured in the United States.
(i) All manufactured construction material must be manufactured in the United States.
(ii) Iron or steel components. (A) Iron or steel components of construction material consisting wholly or pre- dominantly of iron or steel must be produced in the United States. This does not restrict the origin of the elements of the iron or steel, but requires that all manufacturing processes of the iron or steel must take place in the United States, except metallurgical processes involving refinement of steel addi- tives.
(B) The requirement in paragraph (a)(1)(ii)(A) of this section does not apply to iron or steel components or sub- components in construction material that does not consist wholly or predominantly of iron or steel.
(iii) All other components. There is no restriction on the origin or place of production or manufacture of compo- nents or subcomponents that do not consist of iron or steel.
(iv) Examples. (A) If a steel guardrail consists pre- dominantly of steel, even though coated with aluminum, then the steel would be subject to the section 1605 restriction requiring that all stages of production of the steel occur in the United States, in addition to the requirement to manufacture the guardrail in the United States. There would be no restric- tions on the other components of the guardrail.
(B) If a wooden window frame is delivered to the site as a single construction material, there is no restriction on any of the components, including the steel lock on the window frame; or
(2) If trade agreements apply, the manufactured con- struction material shall either comply with the requirements of paragraph (a)(1) of this subsection, or be wholly the product of or be substantially transformed in a Recovery Act desig- nated country;
(b) Manufactured materials purchased directly by the Gov- ernment and delivered to the site for incorporation into the project shall meet the same domestic source requirements as
FAC 2005–86 JANUARY 1, 2016
25.602-2 Federal Acquisition Regulation
specified for manufactured construction material in para- graphs (a)(1) and (a)(2) of this section; and
(c) A project may include several contracts, a single con- tract, or one or more line items on a contract.
25.602-2 Buy American statute
Except as provided in 25.603, use only unmanufactured construction material mined or produced in the United States, as required by the Buy American statute or, if trade agree- ments apply, unmanufactured construction material mined or produced in a designated country may also be used.
25.603 Exceptions.
(a)(1) When one of the following exceptions applies, the contracting officer may allow the contractor to incorporate foreign manufactured construction materials without regard to the restrictions of section 1605 of the Recovery Act or for- eign unmanufactured construction material without regard to the restrictions of the Buy American statute:
(i) Nonavailability. The head of the contracting activity may determine that a particular construction material is not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities of a satisfactory quality. The determinations of nonavailabil- ity of the articles listed at 25.104(a) and the procedures at 25.103(b)(1) also apply if any of those articles are acquired as construction materials.
(ii) Unreasonable cost. The contracting officer con- cludes that the cost of domestic construction material is unrea- sonable in accordance with 25.605.
(iii) Inconsistent with public interest. The head of the agency may determine that application of the restrictions of section 1605 of the Recovery Act to a particular manufactured construction material, or the restrictions of the Buy American statute to a particular unmanufactured construction material would be inconsistent with the public interest.
(2) In addition, the head of the agency may determine that application of the Buy American statute to a particular unmanufactured construction material would be impractica- ble.
(b) Determinations. When a determination is made, for any of the reasons stated in this section, that certain foreign con- struction materials may be used—
(1) The contracting officer shall list the excepted mate- rials in the contract; and
(2) For determinations with regard to the inapplicability of section 1605 of the Recovery Act, unless the construction material has already been determined to be domestically nonavailable (see list at 25.104), the head of the agency shall provide a notice to the Federal Register within three business days after the determination is made, with a copy to the Administrator for Federal Procurement Policy and to the
Recovery Accountability and Transparency Board. The notice shall include—
(i) The title “Buy American Exception under the American Recovery and Reinvestment Act of 2009”;
(ii) The dollar value and brief description of the proj-
ect; and
(iii) A detailed justification as to why the restriction is being waived.
(c) Acquisitions under trade agreements. (1) For con- struction contracts with an estimated acquisition value of
$7,358,000 or more, also see subpart 25.4. Offers proposing the use of construction material from a designated country shall receive equal consideration with offers proposing the use of domestic construction material.
(2) For purposes of applying section 1605 of the Recov- ery Act to evaluation of manufactured construction material, designated countries do not include the Caribbean Basin Countries.
25.604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American statute.
(a) For any acquisition, an offeror may request from the contracting officer a determination concerning the inapplica- bility of section 1605 of the Recovery Act or the Buy Amer- ican statute for specifically identified construction materials. The time for submitting the request is specified in the solici- tation in paragraph (b) of either 52.225-22 or 52.225-24, whichever applies. The information and supporting data that must be included in the request are also specified in the solic- itation in paragraphs (c) and (d) of either 52.225-21 or 52.225-23, whichever applies.
(b) Before award, the contracting officer must evaluate all requests based on the information provided and may supple- ment this information with other readily available informa- tion.
(c) Determination based on unreasonable cost of domestic construction material.
(1) Manufactured construction material. The contract- ing officer must compare the offered price of the contract using foreign manufactured construction material (i.e., any construction material not manufactured in the United States, or construction material consisting predominantly of iron or steel and the iron or steel is not produced in the United States) to the estimated price if all domestic manufactured construc- tion material were used. If use of domestic manufactured con- struction material would increase the overall offered price of the contract by more than 25 percent, then the contracting offi- cer shall determine that the cost of the domestic manufactured construction material is unreasonable
(2) Unmanufactured construction material. The con- tracting officer must compare the cost of each foreign unman- ufactured construction material to the cost of domestic
FAC 2005–73 MAY 29, 2014
Subpart 25.6—American Recovery and Reinvestment Act—Buy American statute—
Construction Materials 25.607
unmanufactured construction material. If the cost of the domestic unmanufactured construction material exceeds the cost of the foreign unmanufactured construction material by more than 6 percent, then the contracting officer shall deter- mine that the cost of the domestic unmanufactured construc- tion material is unreasonable.
25.605 Evaluating offers of foreign construction material.
(a) If the contracting officer has determined that an excep- tion applies because the cost of certain domestic construction material is unreasonable, in accordance with section 25.604, then the contracting officer shall apply evaluation factors to the offer incorporating the use of such foreign construction material as follows:
(1) Use an evaluation factor of 25 percent, applied to the total offered price of the contract, if foreign manufactured construction material is incorporated in the offer based on an exception for unreasonable cost of comparable domestic con- struction material requested by the offeror.
(2) In addition, use an evaluation factor of 6 percent applied to the cost of foreign unmanufactured construction material incorporated in the offer based on an exception for unreasonable cost of comparable domestic unmanufactured construction material requested by the offeror.
(3) Total evaluated price = offered price + (.25 x offered price, if (a)(1) applies) + (.06 x cost of foreign unmanufac- tured construction material, if (a)(2) applies).
(b) If the solicitation specifies award on the basis of factors in addition to cost or price, apply the evaluation factors as specified in paragraph (a) of this section and use the evaluated price in determining the offer that represents the best value to the Government
(c) Unless paragraph (b) applies, if two or more offers are equal in price, the contracting officer must give preference to an offer that does not include foreign construction material excepted at the request of the offeror on the basis of unreason- able cost.
(d) Offerors also may submit alternate offers based on use of equivalent domestic construction material to avoid possible rejection of the entire offer if the Government determines that an exception permitting use of a particular foreign construc- tion material does not apply.
(e) If the contracting officer awards a contract to an offeror that proposed foreign construction material not listed in the applicable clause in the solicitation (paragraph (b)(3) of 52.225-21, or paragraph (b)(3) of 52.225-23), the contracting officer must add the excepted materials to the list in the con- tract clause.
25.606 Postaward determinations.
(a) If a contractor requests a determination regarding the inapplicability of section 1605 of the Recovery Act or the Buy American statute after contract award, the contractor must
explain why it could not request the determination before con- tract award or why the need for such determination otherwise was not reasonably foreseeable. If the contracting officer con- cludes that the contractor should have made the request before contract award, the contracting officer may deny the request.
(b) The contracting officer must base evaluation of any request for a determination regarding the inapplicability of section 1605 of the Recovery Act or the Buy American statute made after contract award on information required by para- graphs (c) and (d) of the applicable clause at 52.225-21 or 52.225-23 and/or other readily available information.
(c) If a determination, under 25.603(a), is made after con- tract award that an exception to section 1605 of the Recovery Act or to the Buy American statute applies, the contracting officer must negotiate adequate consideration and modify the contract to allow use of the foreign construction material. When the basis for the exception is the unreasonable cost of a domestic construction material, adequate consideration is at least the differential established in 25.605(a).
25.607 Noncompliance.
The contracting officer must—
(a) Review allegations of violations of section 1605 of the Recovery Act or Buy American statute;
(b) Unless fraud is suspected, notify the contractor of the apparent unauthorized use of foreign construction material and request a reply, to include proposed corrective action; and
(c) If the review reveals that a contractor or subcontractor has used foreign construction material without authorization, take appropriate action, including one or more of the follow- ing:
(1) Process a determination concerning the inapplica- bility of section 1605 of the Recovery Act or the Buy Amer- ican statute in accordance with 25.606.
(2) Consider requiring the removal and replacement of the unauthorized foreign construction material.
(3) If removal and replacement of foreign construction material incorporated in a building or work would be imprac- ticable, cause undue delay, or otherwise be detrimental to the interests of the Government, the contracting officer may determine in writing that the foreign construction material need not be removed and replaced. A determination to retain foreign construction material does not constitute a determina- tion that an exception to section 1605 of the Recovery Act or the Buy American statute applies, and this should be stated in the determination. Further, a determination to retain foreign construction material does not affect the Government’s right to suspend or debar a contractor, subcontractor, or supplier for violation of section 1605 of the Recovery Act or the Buy American statute, or to exercise other contractual rights and remedies, such as reducing the contract price or terminating the contract for default.
25.607 Federal Acquisition Regulation
(4) If the noncompliance is sufficiently serious, con- sider exercising appropriate contractual remedies, such as ter- minating the contract for default. Also consider preparing and forwarding a report to the agency suspending or debarring
official in accordance with subpart 9.4. If the noncompliance appears to be fraudulent, refer the matter to other appropriate agency officials, such as the agency’s inspector general or the officer responsible for criminal investigation.
FAC 2005–73 MAY 29, 2014
Subpart 25.7—Prohibited Sources 25.702-3
Subpart 25.7—Prohibited Sources
25.700 Scope of subpart.
This subpart implements—
(a) Economic sanctions administered by the Office of For- eign Assets Control (OFAC) in the Department of the Trea- sury prohibiting transactions involving certain countries, entities, and individuals;
(b) The Sudan Accountability and Divestment Act of 2007 (Pub. L. 110-174) (50 U.S.C. 1701 note);
(c) The Iran Sanctions Act of 1996 (Iran Sanctions Act) (Pub. L. 104-172; 50 U.S.C. 1701 note), including amend- ments by the Iran Freedom Support Act (Pub. L. 109-293), section 102 of the Comprehensive Iran Sanctions, Account- ability, and Divestment Act of 2010 (Pub. L. 111-195), and Titles II and III of the Iran Threat Reduction and Syria Human Rights Act of 2012 (Pub. L. 112-158); and
(d) Prohibition against contracting with entities that export sensitive technologies to Iran (22 U.S.C. 8515).
25.701 Restrictions administered by the Department of the Treasury on acquisitions of supplies or services from prohibited sources.
(a) Except as authorized by OFAC, agencies and their con- tractors and subcontractors must not acquire any supplies or services if any proclamation, Executive order, or statute administered by OFAC, or if OFAC’s implementing regula- tions at 31 CFR Chapter V, would prohibit such a transaction by a person subject to the jurisdiction of the United States.
(b) Except as authorized by OFAC, most transactions involving Cuba, Iran, and Sudan are prohibited, as are most imports from Burma or North Korea into the United States or its outlying areas. In addition, lists of entities and individuals subject to economic sanctions are included in OFAC’s List of Specially Designated Nationals and Blocked Persons at http:/
/xxx.xxxxx.xxx/xxxxxxx/xxxxxxxxxxx/xxxx/xxx. More infor- mation about these restrictions, as well as updates, is available in OFAC’s regulations at 31 CFR Chapter V and/or on OFAC’s website at xxxx://xxx.xxxxx.xxx/xxxxxxx/xxxxxxx- ment/ofac.
(c) Refer questions concerning the restrictions in para- graphs (a) or (b) of this section to the—
Department of the Treasury Office of Foreign Assets Control Washington, DC 20220
(Telephone (000) 000-0000).
25.702 Prohibition on contracting with entities that conduct restricted business operations in Sudan.
25.702-1 Definitions.
As used in this section—
“Appropriate Congressional committees” means—
(1) The Committee on Banking, Housing, and Urban Affairs, The Committee on Foreign Relations, and the Select Committee on Intelligence of the Senate; and
(2) The Committee on Financial Services, the Commit- tee on Foreign Relations, and the Permanent Select Commit- tee on Intelligence of the House of Representatives.
“Business operations” means engaging in commerce in any form, including by acquiring, developing, maintaining, owning, selling, possessing, leasing, or operating equipment, facilities, personnel, products, services, personal property, real property, or any other apparatus of business or commerce.
“Marginalized populations of Sudan” means—
(1) Adversely affected groups in regions authorized to receive assistance under section 8(c) of the Darfur Peace and Accountability Act (Pub. L. 109-344) (50 U.S.C. 1701 note); and
(2) Marginalized areas in Northern Sudan described in section 4(9) of such Act.
“Restricted business operations”—
(1) Means, except as provided in paragraph (2) of this definition, business operations in Sudan that include power production activities, mineral extraction activities, oil-related activities, or the production of military equipment, as those terms are defined in the Sudan Accountability and Divestment Act of 2007 (Pub. L. 110-174).
(2) Does not include business operations that the person (as that term is defined in Section 2 of the Sudan Accountabil- ity and Divestment Act of 2007) conducting the business can demonstrate—
(i) Are conducted under contract directly and exclu- sively with the regional government of southern Sudan;
(ii) Are conducted pursuant to specific authorization from the Office of Foreign Assets Control in the Department of the Treasury, or are expressly exempted under Federal law from the requirement to be conducted under such authoriza- tion;
(iii) Consist of providing goods or services to mar- ginalized populations of Sudan;
(iv) Consist of providing goods or services to an internationally recognized peacekeeping force or humanitar- ian organization;
(v) Consist of providing goods or services that are used only to promote health or education; or
(vi) Have been voluntarily suspended.
25.702-2 Certification.
As required by the Sudan Accountability and Divestment Act of 2007 (Pub. L. 110-174), each offeror must certify that it does not conduct restricted business operations in Sudan.
25.702-3 Remedies.
Upon the determination of a false certification under sub- section 25.702-2—
25.702-4 Federal Acquisition Regulation
(a) The contracting officer may terminate the contract;
(b) The suspending official may suspend the contractor in accordance with the procedures in Subpart 9.4; and
(c) The debarring official may debar the contractor for a period not to exceed 3 years in accordance with the procedures in Subpart 9.4.
25.702-4 Waiver.
(a) The President may waive the requirement of subsection 25.702-2 on a case-by-case basis if the President determines and certifies in writing to the appropriate congressional com- mittees that it is in the national interest to do so.
(b) An agency seeking waiver of the requirement shall sub- mit the request to the Administrator of the Office of Federal Procurement Policy (OFPP), allowing sufficient time for review and approval. Upon receipt of the waiver request, OFPP shall consult with the President’s National Security Council, Office of African Affairs, and the Department of State Sudan Office and Sanctions Office to assess foreign pol- icy aspects of making a national interest recommendation.
(c) Agencies may request a waiver on an individual or class basis; however, waivers are not indefinite and can be can- celled if warranted.
(1) A class waiver may be requested only when the class of supplies is not available from any other source and it is in the national interest.
(2) Prior to submitting the waiver request, the request must be reviewed and cleared by the agency head.
(3) All waiver requests must include the following information:
(i) Agency name, complete mailing address, and point of contact name, telephone number, and email address;
(ii) Offeror’s name, complete mailing address, and point of contact name, telephone number, and email address;
(iii) Description/nature of product or service;
(iv) The total cost and length of the contract;
(v) Justification, with market research demonstrat- ing that no other offeror can provide the product or service and stating why the product or service must be procured from this offeror, as well as why it is in the national interest for the Pres- ident to waive the prohibition on contracting with this offeror that conducts restricted business operations in Sudan, includ- ing consideration of foreign policy aspects identified in con- sultation(s) pursuant to 25.702-4(b);
(vi) Documentation regarding the offeror’s past per- formance and integrity (see the Past Performance Information Retrieval System including the Federal Awardee Performance Information and Integrity System at xxx.xxxxx.xxx and any other relevant information);
(vii) Information regarding the offeror’s relationship or connection with other firms that conduct prohibited busi- ness operations in Sudan; and
(viii) Any humanitarian efforts engaged in by the offeror, the human rights impact of doing business with the offeror for which the waiver is requested, and the extent of the offeror’s business operations in Sudan.
(d) The consultation in 25.702-4(b) and the information in 25.702-4(c)(3) will be considered in determining whether to recommend that the President waive the requirement of sub- section 25.702-2. In accordance with section 6(c) of the Sudan Accountability and Divestment Act of 2007, OFPP will semi- annually submit a report to Congress, on April 15th and Octo- ber 15th, on the waivers granted.
25.703 Prohibition on contracting with entities that engage in certain activities or transactions relating to Iran.
25.703-1 Definitions.
As used in this section— “Person”—
(1) Means—
(i) A natural person;
(ii) A corporation, business association, partnership, society, trust, financial institution, insurer, underwriter, guar- antor, and any other business organization, any other nongov- ernmental entity, organization, or group, and any governmental entity operating as a business enterprise; and
(iii) Any successor to any entity described in para- graph (1)(ii) of this definition; and
(2) Does not include a government or governmental entity that is not operating as a business enterprise.
“Sensitive technology”—
(1) Means hardware, software, telecommunications equipment, or any other technology that is to be used specif- ically—
(i) To restrict the free flow of unbiased information in Iran; or
(ii) To disrupt, monitor, or otherwise restrict speech of the people of Iran; and
(2) Does not include information or informational mate- rials the export of which the President does not have the authority to regulate or prohibit pursuant to section 203(b)(3) of the International Emergency Economic Powers Act (50 U.S.C. 1702(b)(3)).
25.703-2 Iran Sanctions Act.
(a) Certification. (1) Certification relating to activities described in section 5 of the Iran Sanctions Act. As required by section 6(b)(1)(A) of the Iran Sanctions Act (50 U.S.C. 1701 note), unless an exception applies in accordance with paragraph (c) of this subsection, or a waiver is granted in accordance with 25.703-4, each offeror must certify that the offeror, and any person owned or controlled by the offeror, does not engage in any activity for which sanctions may be
FAC 2005–83 OCTOBER 1, 2015
Subpart 25.7—Prohibited Sources 25.703-4
imposed under section 5 of the Iran Sanctions Act. Such activ- ities, which are described in detail in section 5 of the Iran Sanctions Act, relate to the energy sector of Iran and develop- ment by Iran of weapons of mass destruction or other military capabilities.
(2) Certification relating to transactions with Iran's Revolutionary Guard Corps. As required by section 6(b)(1)(B) of the Iran Sanctions Act (50 U.S.C. 1701 note), unless an exception applies in accordance with paragraph (c) of this subsection, or a waiver is granted in accordance with 25.703-4, each offeror must certify that the offeror, and any person owned or controlled by the offeror, does not knowingly engage in any significant transaction (i.e., a transaction that exceeds $3,500) with Iran's Revolutionary Guard Corps or any of its officials, agents, or affiliates, the property and inter- ests in property of which are blocked pursuant to the Interna- tional Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)(see OFAC's Specially Designated Nationals and Blocked Persons List at xxxx://xxx.xxxxxxxx.xxx/xxxx/xxxxxxxxx/x00xxx.xxx).
(b) Remedies. Upon the determination of a false certifica- tion under paragraph (a) of this subsection, the agency shall take one or more of the following actions:
(1) The contracting officer terminates the contract in accordance with procedures in part 49, or for commercial items, see 12.403.
(2) The suspending official suspends the contractor in accordance with the procedures in subpart 9.4.
(3) The debarring official debars the contractor for a period of at least two years in accordance with the procedures in subpart 9.4.
(c) Exception for trade agreements. The certification requirements of paragraph (a) of this subsection do not apply if the acquisition is subject to trade agreements and the offeror certifies that all the offered products are designated country end products or designated country construction material (see subpart 25.4).
25.703-3 Prohibition on contracting with entities that export sensitive technology to Iran.
(a) The head of an executive agency may not enter into or extend a contract for the procurement of goods or services with a person that exports certain sensitive technology to Iran, as determined by the President and listed in the System for Award Management Exclusions via http:// xxx.xxxxxxxxxxx.xxx (22 U.S.C. 8515).
(b) Each offeror must represent that it does not export any sensitive technology to the government of Iran or any entities or individuals owned or controlled by, or acting on behalf or at the direction of, the government of Iran.
(c) Exception for trade agreements. The representation requirement of paragraph (b) of this subsection does not apply if the acquisition is subject to trade agreements and the offeror
certifies that all the offered products are designated country end products or designated country construction material (see subpart 25.4).
25.703-4 Waiver.
(a) An agency or contractor seeking a waiver of the requirements of 25.703-2 or 25.703-3, consistent with section 6(b)(5) of the Iran Sanctions Act or 22 U.S.C. 8551(b), respec- tively, and the Presidential Memorandum of September 23, 2010 (75 FR 67025), shall submit the request to the Office of Federal Procurement Policy, allowing sufficient time for review and approval.
(b) Agencies may request a waiver on an individual or class basis; however, waivers are not indefinite and can be can- celled, if warranted.
(1) A class waiver may be requested only when the class of supplies or equipment is not available from any other source and it is in the national interest.
(2) Prior to submitting the waiver request, the request must be reviewed and cleared by the agency head.
(c) In general, all waiver requests should include the fol- lowing information:
(1) Agency name, complete mailing address, and point of contact name, telephone number, and e-mail address.
(2) Offeror’s name, complete mailing address, and point of contact name, telephone number, and e-mail address.
(3) Description/nature of product or service.
(4) The total cost and length of the contract.
(5) Justification, with market research demonstrating that no other offeror can provide the product or service and stating why the product or service must be procured from this offeror.
(i) If the offeror exports sensitive technology to the government of Iran or any entities or individuals owned or controlled by, or acting on behalf or at the direction of, the government of Iran, provide rationale why it is in the national interest for the President to waive the prohibition on contract- ing with this offeror, as required by 22 U.S.C. 8551(b).
(ii) If the offeror conducts activities for which sanc- tions may be imposed under section 5 of the Iran Sanctions Act or engages in any transaction that exceeds $3,500 with Iran’s Revolutionary Guard Corps or any of its officials, agents, or affiliates, the property and interests in property of which are blocked pursuant to the International Emergency Economic Powers Act, provide rationale why it is essential to the national security interests of the United States for the Pres- ident to waive the prohibition on contracting with this offeror, as required by section 6(b)(5) of the Iran Sanctions Act.
(6) Documentation regarding the offeror’s past perfor- mance and integrity (see the Past Performance Information Retrieval System and the Federal Awardee Performance Information and Integrity System at xxx.xxxxx.xxx, and any other relevant information).
FAC 2005–83 OCTOBER 1, 2015
25.703-4 Federal Acquisition Regulation
(7) Information regarding the offeror’s relationship or connection with other firms that—
(i) Export sensitive technology to the government of Iran or any entities or individuals owned or controlled by, or acting on behalf or at the direction of, the government of Iran;
(ii) Conduct activities for which sanctions may be imposed under section 5 of the Iran Sanctions Act; or
(iii) Conduct any transaction that exceeds $3,500 with Iran’s Revolutionary Guard Corps or any of its officials, agents, or affiliates, the property and interests in property of which are blocked pursuant to the International Emergency Economic Powers Act.
(8) Describe—
(i) The sensitive technology and the entity or indi- vidual to which it was exported (i.e., the government of Iran or an entity or individual owned or controlled by, or acting on behalf or at the direction of, the government of Iran);
(ii) The activities in which the offeror is engaged for which sanctions may be imposed under section 5 of the Iran Sanctions Act; or
(iii) The transactions that exceed $3,500 with Iran’s Revolutionary Guard Corps or any of its officials, agents, or affiliates, the property and interests in property of which are blocked pursuant to the International Emergency Economic Powers Act.
Subpart 25.8—Other International Agreements and Coordination 25.802
Subpart 25.8—Xxxxx Xxxxxxxxxxxxx Xxxxxxxxxx xxx Xxxxxxxxxxxx
00.000 Xxxxxxx.
Xxxxxxxx xxx xxxxxxxxxx xxxxxxx xxx Xxxxxx Xxxxxx and for- eign governments affect the evaluation of offers from foreign entities and the performance of contracts in foreign countries.
25.802 Procedures.
(a) When placing contracts with contractors located out- side the United States, for performance outside the United States, contracting officers must—
(1) Determine the existence and applicability of any international agreements and ensure compliance with these agreements; and
(2) Conduct the necessary advance acquisition planning and coordination between the appropriate U.S. executive agencies and foreign interests as required by these agreements.
(b) The Department of State publishes many international agreements in the “United States Treaties and Other Interna- tional Agreements” series. Copies of this publication nor- mally are available in overseas legal offices and U.S. diplomatic missions.
(c) Contracting officers must award all contracts with Tai- wanese firms or organizations through the American Institute of Taiwan (AIT). AIT is under contract to the Department of State.
Subpart 25.9—Customs and Duties 25.903
Subpart 25.9—Customs and Duties
25.900 Scope of subpart.
This subpart provides policies and procedures for exempt- ing from import duties certain supplies purchased under Gov- ernment contracts.
25.901 Policy.
United States laws impose duties on foreign supplies imported into the customs territory of the United States. Cer- tain exemptions from these duties are available to Govern- ment agencies. Agencies must use these exemptions when the anticipated savings to appropriated funds will outweigh the administrative costs associated with processing required documentation.
25.902 Procedures.
For regulations governing importations and duties, see the Customs Regulations issued by the U.S. Customs Service, Department of the Treasury (19 CFR Chapter 1). Except as provided elsewhere in the Customs Regulations (see 19 CFR 10.100), all shipments of imported supplies pur- chased under Government contracts are subject to the usual
Customs entry and examination requirements. Unless the agency obtains an exemption (see 25.903), those shipments are also subject to duty.
25.903 Exempted supplies.
(a) Subchapters VIII and X of Chapter 98 of the Harmo- nized Tariff Schedule of the United States (19 U.S.C. 1202) list supplies for which exemptions from duty may be obtained when imported into the customs territory of the United States under a Government contract. For certain of these supplies, the contracting agency must certify to the Commissioner of Customs that they are for the purpose stated in the Harmo- nized Tariff Schedule (see 19 CFR 10.102-104, 10.114, and
10.121 and 15 CFR Part 301 for requirements and formats).
(b) Supplies (excluding equipment) for Government-oper- ated vessels or aircraft may be withdrawn from any customs- bonded warehouse, from continuous customs custody else- where than in a bonded warehouse, or from a foreign-trade zone, free of duty and internal revenue tax as provided in 19 U.S.C. 1309 and 1317. The contracting activity must cite this authority on the appropriate customs form when making purchases (see 19 CFR 10.59 - 10.65).
FAC 2005–73 MAY 29, 2014
Subpart 25.10—Additional Foreign Acquisition Regulations 25.1002
Subpart 25.10—Additional Foreign Acquisition Regulations
25.1001 Waiver of right to examination of records.
(a) Policy. The clause at 52.215-2, Audit and Records— Negotiation, prescribed at 15.209(b), and paragraph (d) of the clause at 52.212-5, Contract Terms and Conditions Required to Implement Statutes or Executive Orders—Commercial Items, prescribed at 12.301(b)(4), implement 10 U.S.C. 2313 and 41 U.S.C. 4706. The basic clauses authorize examination of records by the Comptroller General.
(1) Insert the appropriate basic clause, whenever possi- ble, in negotiated contracts with foreign contractors.
(2) The contracting officer may use 52.215-2 with its Alternate III or 52.212-5 with its Alternate I after—
(i) Exhausting all reasonable efforts to include the basic clause;
(ii) Considering factors such as alternate sources of supply, additional cost, and time of delivery; and
(iii) The head of the agency has executed a determi- nation and findings in accordance with paragraph (b) of this section, with the concurrence of the Comptroller General. However, concurrence of the Comptroller General is not required if the contractor is a foreign government or agency thereof or is precluded by the laws of the country involved from making its records available for examination.
(b) Determination and findings. The determination and findings must—
(1) Identify the contract and its purpose, and identify if the contract is with a foreign contractor or with a foreign gov- ernment or an agency of a foreign government;
(2) Describe the efforts to include the basic clause;
(3) State the reasons for the contractor’s refusal to include the basic clause;
(4) Describe the price and availability of the supplies or services from the United States and other sources; and
(5) Determine that it will best serve the interest of the United States to use the appropriate alternate clause in paragraph (a)(2) of this section.
25.1002 Use of foreign currency.
(a) Unless an international agreement or the WTO GPA (see 25.408(a)(4)) requires a specific currency, contracting officers must determine whether solicitations for contracts to be entered into and performed outside the United States will require submission of offers in U.S. currency or a specified foreign currency. In unusual circumstances, the contracting officer may permit submission of offers in other than a spec- ified currency.
(b) To ensure a fair evaluation of offers, solicitations gen- erally should require all offers to be priced in the same cur- rency. However, if the solicitation permits submission of offers in other than a specified currency, the contracting offi- cer must convert the offered prices to U.S. currency for eval- uation purposes. The contracting officer must use the current market exchange rate from a commonly used source in effect as follows:
(1) For acquisitions conducted using sealed bidding procedures, on the date of bid opening.
(2) For acquisitions conducted using negotiation procedures—
(i) On the date specified for receipt of offers, if award is based on initial offers; otherwise
(ii) On the date specified for receipt of final proposal revisions.
(c) If a contract is priced in foreign currency, the agency must ensure that adequate funds are available to cover cur- rency fluctuations to avoid a violation of the Anti-Deficiency Act (31 U.S.C. 1341, 1342, 1511-1519).
FAC 2005–88 JUNE 15, 2016
Subpart 25.11—Solicitation Provisions and Contract Clauses 25.1102
Subpart 25.11—Solicitation Provisions and Contract Clauses
25.1101 Acquisition of supplies.
The following provisions and clauses apply to the acquisi- tion of supplies and the acquisition of services involving the furnishing of supplies.
(a)(1) Insert the clause at 52.225-1, Buy American—Sup- plies, in solicitations and contracts with a value exceeding the micro-purchase threshold but not exceeding $25,000; and in solicitations and contracts with a value exceeding $25,000, if none of the clauses prescribed in paragraphs (b) and (c) of this section apply, except if—
(i) The solicitation is restricted to domestic end prod- ucts in accordance with subpart 6.3;
(ii) The acquisition is for supplies for use within the United States and an exception to the Buy American statute applies (e.g., nonavailability, public interest, or information technology that is a commercial item); or
(iii) The acquisition is for supplies for use outside the United States.
(2) Insert the provision at 52.225-2, Buy American Cer- tificate, in solicitations containing the clause at 52.225-1.
(b) (1) (i) Insert the clause at 52.225-3, Buy American— Free Trade Agreements—Israeli Trade Act, in solicitations and contracts if—
(A) The acquisition is for supplies, or for services involving the furnishing of supplies, for use within the United States, and the acquisition value is $25,000 or more, but is less than $191,000;
(B) The acquisition is not for information tech- nology that is a commercial item, using fiscal year 2004 or subsequent fiscal year funds; and
(C) No exception in 25.401 applies. For acquisi- tions of agencies not subject to the Israeli Trade Act (see 25.406), see agency regulations.
(ii) If the acquisition value is $25,000 or more but is less than $50,000, use the clause with its Alternate I.
(iii) If the acquisition value is $50,000 or more but is less than $77,533, use the clause with its Alternate II.
(iv) If the acquisition value is $77,533 or more but is less than $100,000, use the clause with its Alternate III.
(2)(i) Insert the provision at 52.225-4, Buy American— Free Trade Agreements—Israeli Trade Act Certificate, in solicitations containing the clause at 52.225-3.
(ii) If the acquisition value is $25,000 or more but is less than $50,000, use the provision with its Alternate I.
(iii) If the acquisition value is $50,000 or more but is less than $77,533, use the provision with its Alternate II.
(iv) If the acquisition value is $77,533 or more, but is less than $100,000, use the provision with its Alternate III. (c)(1) Insert the clause at 52.225-5, Trade Agreements, in solicitations and contracts valued at $191,000 or more, if the
acquisition is covered by the WTO GPA (see subpart 25.4) and the agency has determined that the restrictions of the Buy American statute are not applicable to U.S.-made end prod- ucts. If the agency has not made such a determination, the con- tracting officer must follow agency procedures.
(2) Insert the provision at 52.225-6, Trade Agreements Certificate, in solicitations containing the clause at 52.225-5.
(d) Insert the provision at 52.225-7, Waiver of Buy Amer- ican Statute for Civil Aircraft and Related Articles, in solici- tations for civil aircraft and related articles (see 25.407), if the acquisition value is less than $191,000.
(e) Insert the clause at 52.225-8, Duty-Free Entry, in solic- itations and contracts for supplies that may be imported into the United States and for which duty-free entry may be obtained in accordance with 25.903(a), if the value of the acquisition—
(1) Exceeds the simplified acquisition threshold; or
(2) Does not exceed the simplified acquisition thresh- old, but the savings from waiving the duty is anticipated to be more than the administrative cost of waiving the duty. When used for acquisitions that do not exceed the simplified acqui- sition threshold, the contracting officer may modify para- graphs (c)(1) and (j)(2) of the clause to reduce the dollar figure.
(f) Insert the provision at 52.225-18, Place of Manufacture, in solicitations that are predominantly for the acquisition of manufactured end products (i.e., the estimated value of the manufactured end products exceeds the estimated value of other items to be acquired as a result of the solicitation).
25.1102 Acquisition of construction.
When using funds other than those appropriated under the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5) (Recovery Act), follow the prescriptions in paragraphs
(a) through (d) of this section. Otherwise, follow the prescrip- tion in paragraph (e).
(a) Insert the clause at 52.225-9, Buy American—Con- struction Materials, in solicitations and contracts for construc- tion that is performed in the United States valued at less than
$7,358,000.
(1) List in paragraph (b)(2) of the clause all foreign con- struction material excepted from the requirements of the Buy American statute.
(2) If the head of the agency determines that a higher percentage is appropriate, substitute the higher evaluation percentage in paragraph (b)(3)(i) of the clause.
(b)(1) Insert the provision at 52.225-10, Notice of Buy American Requirement—Construction Materials, in solicita- tions containing the clause at 52.225-9.
(2) If insufficient time is available to process a determi- nation regarding the inapplicability of the Buy American stat- ute before receipt of offers, use the provision with its Alternate I.
25.1103 Federal Acquisition Regulation
(c) Insert the clause at 52.225-11, Buy American—Con- struction Materials under Trade Agreements, in solicitations and contracts for construction that is performed in the United States valued at $7,358,000 or more.
(1) List in paragraph (b)(3) of the clause all foreign con- struction material excepted from the requirements of the Buy American statute, other than designated country construction material.
(2) If the head of the agency determines that a higher percentage is appropriate, substitute the higher evaluation percentage in paragraph (b)(4)(i) of the clause.
(3) For acquisitions valued at $7,358,000 or more, but less than $10,079,365, use the clause with its Alternate I. List in paragraph (b)(3) of the clause all foreign construction mate- rial excepted from the requirements of the Buy American stat- ute, unless the excepted foreign construction material is from a designated country other than Bahrain, Mexico, and Oman.
(d)(1) Insert the provision at 52.225-12, Notice of Buy American Requirement—Construction Materials under Trade Agreements, in solicitations containing the clause at 52.225-11.
(2) If insufficient time is available to process a determi- nation regarding the inapplicability of the Buy American stat- ute before receipt of offers, use the provision with its Alternate I.
(3) For acquisitions valued at $7,358,000 or more, but less than $10,079,365, use the provision with its Alternate II. (e)(1) When using funds appropriated under the Recovery Act for construction, use provisions and clauses 52.225-21, 52.225-22, 52.225-23, or 52.225-24 (with appropriate Alter-
nates) in lieu of the provisions and clauses 52.225-9, 52.225-10, 52.225-11, or 52.225-12 (with appropriate Alter- nates), respectively, that would be applicable as prescribed in paragraphs (a) through (d) of this section if Recovery Act funds were not used.
(2) If these Recovery Act provisions and clauses are only applicable to a project consisting of certain line items in the contract, identify in the schedule the line items to which the provisions and clauses apply.
(3) When using clause 52.225-23, list foreign construc- tion material in paragraph (b)(3) of the clause as follows:
(i) Basic clause. List all foreign construction materi- als excepted from the Buy American statute or section 1605 of the Recovery Act, other than manufactured construction material from a Recovery Act designated country or unman- ufactured construction material from a designated country.
(ii) Alternate I. List in paragraph (b)(3) of the clause all foreign construction material excepted from the Buy American statute or section 1605 of the Recovery Act, other than—
(A) Manufactured construction material from a Recovery Act designated country other than Bahrain, Mexico, or Oman; or
(B) Unmanufactured construction material from a designated country xxxxx xxxx Xxxxxxx, Xxxxxx, xx Xxxx.
00.0000 Xxxxx provisions and clauses.
(a) Restrictions on certain foreign purchases. Insert the clause at 52.225-13, Restrictions on Certain Foreign Pur- chases, in solicitations and contracts, unless an exception applies.
(b) Translations. Insert the clause at 52.225-14, Inconsis- tency Between English Version and Translation of Contract, in solicitations and contracts if anticipating translation into another language.
(c) Foreign currency offers. Insert the provision at 52.225-17, Evaluation of Foreign Currency Offers, in solici- tations that permit the use of other than a specified currency. Insert in the provision the source of the rate to be used in the evaluation of offers.
(d) The contracting officer shall include in each solicitation for the acquisition of products or services (other than commer- cial items procured under Part 12) the provision at 52.225-20, Prohibition on Conducting Restricted Business Operations in Sudan—Certification.
(e) The contracting officer shall include in all solicitations the provision at 52.225-25, Prohibition on Contracting with Entities Engaging in Certain Activities or Transactions Relat- ing to Iran-Representation and Certifications.
* * * * * *
25.11-2
(FAC 2005–88)