```

[Federal Register Volume 79, Number 29 (Wednesday, February 12, 2014)]
[Proposed Rules]
[Pages 8387-8402]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-02928]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 212, 225, and 252

RIN 0750-AH94

Defense Federal Acquisition Regulation Supplement: Clauses With 
Alternates--Foreign Acquisition (DFARS Case 2013-D005)

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

ACTION: Proposed rule.

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

SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to create separate prescriptions for the 
basic clause as well as each alternate in each set of foreign 
acquisition-related provisions/clauses with one or more alternates. In 
addition, the proposed rule would include the full text of each 
provision or clause alternate.

DATES: Comment Date: Comments on the proposed rule should be submitted 
in writing to the address shown below on or before April 14, 2014, to 
be considered in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2013-D005, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by entering ``DFARS Case 2013-D005'' 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 
2013-D005.'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``DFARS Case 2013-D005'' on your attached document.
    [cir] Email: dfars@mail.mil. Include DFARS Case 2013-D005 in the 
subject line of the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. Amy 
Williams, OUSD(AT&L)DPAP/DARS, Room 3B855, 3060 Defense Pentagon, 
Washington, DC 20301-3060.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To 
confirm receipt of your comment(s), please check www.regulations.gov, 
approximately two to three days after submission to verify posting 
(except allow 30 days for posting of comments submitted by mail).

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, Defense Acquisition 
Regulations System, OUSD(AT&L)DPAP/DARS, Room 3B855, 3060 Defense 
Pentagon, Washington, DC 20301-3060. Telephone 571-372-6106.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD is proposing to amend the DFARS to add a separate prescription 
for the basic clause as well as each alternate. In addition, the 
proposed rule would include the full text of each provision/clause 
alternate. For clarity, the preface of the alternate will continue to 
explain what portions of that alternate are different from the basic 
provision/clause. Separate prescriptions for the basic and alternates 
of DFARS provisions and clauses will facilitate the use of automated 
contract writing systems. The proposed rule will not revise the 
prescriptions in any substantive way or change the applicability of the 
provisions/clauses or their alternates.

[[Page 8388]]

    The inclusion of the full text of each provision/clause alternate 
aims to make the terms of a provision/clause alternate clearer to 
offerors and to DoD contracting officers. The current convention for 
alternates is to show only the changed paragraphs from the basic 
provision or clause. This proposed rule would include the full text of 
each provision/clause and each alternate, which will assist in making 
solicitation and contract terms and conditions easier to read and 
understand. By placing alternates in full text, all paragraph 
substitutions from the basic provision/clause will have already been 
made. Inapplicable paragraphs from the basic provision/clause that are 
superseded by the alternate will not be included in the solicitation or 
contract in order to prevent confusion.
    Although this rule proposes to include each alternate in full text, 
it retains the language that precedes the alternate, which includes the 
location of the alternate's prescription and a statement that 
identifies which paragraphs were changed from the basic provision/
clause. Further, alternates are proposed to have individual titles that 
tie them to the basic clause, e.g., ``Trade Agreements--Alternate I'' 
in lieu of ``Alternate I.''
    This rule proposes to revise the naming convention for provisions/
clauses with alternates to indicate that there is at least one 
alternate by revising the title of the basic clause to read ``Title--
Basic.'' Thus, if adopted as final, the naming convention will 
differentiate at the provision/clause title whether there are any 
alternates associated with that provision/clause.

II. Discussion

    Although DFARS part 225 contains eight solicitation provisions and 
clauses that have, or are, alternates, this proposed rule will only 
address six. The other two are currently being revised in another DFARS 
case. The remaining prescriptions in DFARS part 225 are not proposed to 
be changed in any way by this proposed rule.
    The six DFARS foreign acquisition-related provisions/clauses that 
would be affected by this rule are as follows:
     252.225-7000, Buy American--Balance of Payments Program 
Certificate, one alternate;
     252.225-7001, Buy American and Balance of Payments 
Program, one alternate;
     252.225-7020, Trade Agreements Certificate, one alternate.
     252.225-7021, Trade Agreements, two alternates;
     252.225-7035, Buy American--Free Trade Agreements--Balance 
of Payments Program Certificate, five alternates; and
     252.225-7036, Buy American--Free Trade Agreements--Balance 
of Payments Program, five alternates.

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

IV. Regulatory Flexibility Act

    DoD does not expect this rule to have a significant economic impact 
on a substantial number of small entities within the meaning of the 
Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because it merely 
revises the format, not the substance, of prescriptions for provisions 
and clauses with alternates, as well as includes the full text of each 
provision or clause in each alternate. However, an initial regulatory 
flexibility analysis has been performed and is summarized as follows:
    The purpose of this case is to amend the Defense Federal 
Acquisition Regulation Supplement (DFARS) to create an overarching 
prescription for each set of provisions/clauses with one or more 
alternates. The overarching prescription is intended to include the 
common requirements for the use of that provision/clause set.
    The use of automated contract writing systems will be facilitated 
by revising the prescription format for DFARS provisions/clauses that 
have one or more alternates. This rule proposes to revise the 
prescription format so that there is an overarching prescription that 
covers the elements that the basic provision/clause and all its 
alternates have in common. Then, there will be a separate prescription 
for use of the basic prescription/clause and each alternate. In 
addition, each alternate provision/clause will be presented in full 
text, not just the paragraph or section that is different from the 
basic provision/clause. This will make the terms of a provision or 
clause alternate clearer to offerors, as well as to DoD contracting 
officers, because all paragraph substitutions will have already been 
made. Inapplicable paragraphs from the basic provision/clause that are 
superseded by the alternate will not be included in the solicitation or 
contract to prevent confusion.
    Potential offerors, including small businesses, initially may be 
affected by this rule by seeing an unfamiliar format for provision/
clause alternates in solicitations and contracts issued by DoD 
contracting activities. DoD awarded an average of 270,000 contract 
actions (excluding modifications and orders) in Fiscal Year 2012, of 
which an average of 180,000 (67%) were awarded to about 35,000 unique 
small business entities. It is unknown as to how many of these 
contracts were awarded that included an alternate to a DFARS provision 
or clause. Nothing substantive will change in solicitations or 
contracts for potential offerors, and only the appearance of how 
provision/clause alternates are presented in solicitations and 
contracts will be changed. This rule may result in potential offerors, 
including small businesses, expending more time to become familiar with 
and to understand the new format of provision/clause alternates in full 
text contained in contracts issued by any DoD contracting activity. The 
rule also anticipates saving contractors' time by making all paragraph 
substitutions from the basic clause and by not requiring offerors to 
read inapplicable paragraphs contained in the basic provisions/clauses 
where alternates are also included in the solicitations and contracts. 
The overall burden caused by this rule is expected to be negligible and 
will not be any greater on small businesses than it is on large 
businesses.
    This rule does not add any new information collection requirements. 
The rule does not duplicate, overlap, or conflict with any other 
Federal rules. No alternatives were determined that will accomplish the 
objectives of the rule.
    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 610 (DFARS Case 2013-D005), in 
correspondence.

V. Paperwork Reduction Act

    The rule does not contain any new information collection 
requirements that require the approval of the Office of

[[Page 8389]]

Management and Budget under the Paperwork Reduction Act (44 U.S.C. 
chapter 35).

List of Subjects in 48 CFR Parts 212, 225, and 252

    Government procurement.

Manuel Quinones,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 212, 225, and 252 are proposed to be 
amended as follows:

0
1. The authority citation for parts 212, 225, and 252 continues to read 
as follows:

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

PART 212--ACQUISITION OF COMMERCIAL ITEMS

0
2. Amend section 212.301 by revising paragraphs (f)(xix), (xx), and 
(xxxix) to read as follows:

212.301  Solicitation provisions and contract clauses for the 
acquisition of commercial items.

    (f) * * *
    (xix) Use the provision at 252.225-7000, Buy American-Balance of 
Payments Program Certificate, to comply with 41 U.S.C. chapter 83 and 
Executive Order 10582 of December 17, 1954, Prescribing Uniform 
Procedures for Certain Determinations Under the Buy-American Act.
    (A) Use the basic provision as prescribed in 225.1101(1)(i).
    (B) Use the provision with its Alternate I as prescribed in 
225.1101(1)(ii).
    (xx) Use the clause at 252.225-7001, Buy American and Balance of 
Payments Program to comply with 41 U.S.C. chapter 83 and Executive 
Order 10582 of December 17, 1954, Prescribing Uniform Procedures for 
Certain Determinations Under the Buy-American Act.
    (A) Use the basic clause as prescribed in 225.1101(2)(ii).
    (B) Use the clause with its Alternate I as prescribed in 
225.1101(2)(iii).
* * * * *
    (xxxix) Use the clause at 252.225-7036, Buy American--Free Trade 
Agreements--Balance of Payments Program to comply with 41 U.S.C. 
chapter 83 and 19 U.S.C. 3301 note. Alternates II, III, and V also 
implement section 886 of the National Defense Authorization Act for 
Fiscal Year 2008 (Pub. L. 110-181).
    (A) Use the basic clause as prescribed in 225.1101(10)(i)(A).
    (B) Use the clause with its Alternate I as prescribed in 
225.1101(10)(i)(B).
    (C) Use the clause with its Alternate II as prescribed in 
225.1101(10)(i)(C).
    (D) Use the clause with its Alternate III as prescribed in 
225.1101(10)(i)(D).
    (E) Use the clause with its Alternate IV as prescribed in 
225.1101(10)(i)(E).
    (F) Use the clause with its Alternate V as prescribed in 
225.1101(10)(i)(F).
* * * * *

PART 225--FOREIGN ACQUISITION

0
3. Amend section 225.1101 by--
0
a. Revising paragraph (1);
0
b. In paragraph (2)(i), removing the phrase ``Use the clause'' and 
adding in its place ``Use the basic or the alternate of the clause'';
0
c. In paragraph (2)(i)(B), removing ``Subpart'' in two places and 
adding in its place ``subpart'', and by removing ``may still be'' and 
adding in its place ``is still'';
0
d. In paragraph (2)(i)(D), removing ``One or both of the following 
clauses'' and adding in its place ``One or both of the basic or the 
alternates of the following clauses'';
0
e. Redesignating paragraph (2)(ii) as paragraph (2)(iii), adding a new 
paragraph (2)(ii), and revising the newly redesignated paragraph 
(2)(iii).
0
f. In paragraph (3) introductory text, removing the phrase ``one of the 
following clauses:'' and adding in its place ``one of the basic or the 
alternates of the following clauses:'';
0
g. Redesignating paragraph (5)(i) as paragraph (5) introductory text 
and amending the newly redesignated paragraph (5) introductory text by 
removing ``Use the provision'' and adding in its place ``Use the basic 
or the alternate of the provision'', and adding a new paragraph (5)(i);
0
h. Revising paragraph (5)(ii);
0
i. Redesignating paragraph (6)(i) as paragraph (6) introductory text 
and amending the newly redesignated paragraph (6) introductory text by 
removing ``Use the clause'' and adding in its place ``Except as 
provided in paragraph (6)(iv) of this section, use the basic or an 
alternate of the clause'', removing ``World Trade Organization 
Government Procurement Agreement applies'' and adding in its place 
``World Trade Organization Government Procurement Agreement applies, 
i.e. the acquisition is of end products listed at 225.401-70, the value 
of the acquisition equals or exceeds $204,000, and none of the 
exceptions at 25.401(a) applies'', and adding a new paragraph (6)(i);
0
j. In paragraph (6)(ii), by removing ``Use the clause with its 
Alternate II,'' and adding its place ``Use the clause Trade 
Agreements--Alternate II'', and removing ``acquisition of commercial 
items, when'' and adding in its place ``acquisition of commercial 
items, that do not include the clause at 252.225-7024, Requirement for 
Products or Services from Afghanistan, when'';
0
k. In paragraph (6)(iii), revising the introductory text;
0
l. Redesignating paragraph (9)(i) as paragraph (9) introductory text 
and amending the newly redesignated paragraph (9) introductory text by 
removing ``Use the provision'' and adding in its place ``Use the basic 
or an alternate of the provision'', removing ``that include the clause 
at 252.225-7036,'' and adding in its place ``that include the basic or 
an alternate of the clause at 252.225-7036'', and adding a new 
paragraph (9)(i);
0
m. In paragraph (9)(ii), removing ``Use the provision with its 
Alternate I'' and adding its place ``Use the provision Buy American--
Free Trade Agreements--Balance of Payments Program Certificate--
Alternate I'';
0
n. In paragraph (9)(iii), removing ``Use the provision with its 
Alternate II'' and adding its place ``Use the provision Buy American--
Free Trade Agreements--Balance of Payments Program Certificate--
Alternate II'';
0
o. In (9)(iv), removing ``Use the provision with its Alternate III'' 
and adding its place ``Use the provision Buy American--Free Trade 
Agreements--Balance of Payments Program Certificate--Alternate III'';
0
p. In paragraph (9)(v), removing ``Use the provision with its Alternate 
IV'' and adding its place ``Use the provision Buy American--Free Trade 
Agreements--Balance of Payments Program Certificate--Alternate IV'';
0
q. In paragraph (9)(vi), removing ``Use the provision with its 
Alternate V'' and adding its place ``Use the provision Buy American--
Free Trade Agreements--Balance of Payments Program Certificate--
Alternate V'';
0
r. In paragraph (10)(i) introductory text, removing ``,use the clause 
at 252.225-7036,'' and adding in its place ``,use the basic or an 
alternate of the clause at 252.225-7036,'' and removing ``$204,000, and 
a Free Trade Agreement applies to the acquisition.'' and adding in its 
place ``$204,000, unless an exception at 25.401 applies.''
0
s. In paragraph (10)(i)(A), removing ``Use the basic clause'' and 
adding its place ``Use the clause Buy American--Free Trade Agreements--
Balance of Payments Program--Basic,'';
0
t. In paragraph (10)(i)(B), removing ``Use the clause with its 
Alternate I'' and adding its place ``Use the clause Buy American--Free 
Trade Agreements--Balance of Payments Program--Alternate I,'';

[[Page 8390]]

0
u. Redesignating paragraph (10)(i)(C) as paragraph (10)(i)(E) and in 
newly redesignated paragraph (10)(i)(E), removing ``Use the clause with 
its Alternate IV'' and adding its place ``Use the clause Buy American--
Free Trade Agreements--Balance of Payments Program--Alternate IV,'' and 
removing ``in support of operations in Afghanistan, use with its 
Alternate V.'' and adding in its place ``in support of operations in 
Afghanistan.'';
0
v. Adding new paragraphs (10)(i)(C), (10)(i)(D), and (10)(i)(F); and
0
w. In paragraph (10)(ii), revising the introductory text.
    The revisions and additions read as follows:

225.1101  Acquisition of supplies.

    (1) Use the basic or the alternate of the provision at 252.225-
7000, Buy American--Balance of Payments Program Certificate, instead of 
the provision at FAR 52.225-2, Buy American Certificate, in any 
solicitation, including solicitations using FAR part 12 procedures for 
the acquisition of commercial items, that includes the basic or the 
alternate of the clause at 252.225-7001, Buy American and Balance of 
Payments Program. If the solicitation includes the provision at FAR 
52.204-7, do not separately list the provision 252.225-7000 in the 
solicitation.
    (i) Use the provision Buy American--Balance of Payments Program 
Certificate--Basic, when the solicitation, including solicitations 
using FAR part 12 procedures for the acquisition of commercial items, 
includes the basic clause at 252.225-7001.
    (ii) Use the provision Buy American--Balance of Payments Program 
Certificate--Alternate I in solicitations, including solicitations 
using FAR part 12 procedures, when the solicitation includes Alternate 
I of the clause at 252.225-7001.
    (2) * * *
    (ii) Use the clause Buy American and Balance of Payments Program--
Basic, in solicitations and contracts, including solicitations and 
contracts using FAR part 12 procedures for the acquisition of 
commercial items, if the acquisition is not of end products listed in 
225.401-70 in support of operations in Afghanistan.
    (iii) Use the clause Buy American and Balance of Payments Program--
Alternate I, in solicitations and contracts including solicitations and 
contracts using FAR part 12 procedures for the acquisition of 
commercial items, when the acquisition is of end products listed in 
225.401-70 in support of operations in Afghanistan.
* * * * *
    (5) * * *
    (i) Use the provision Trade Agreements Certificate--Basic, if the 
solicitation, including solicitations using FAR part 12 procedures for 
the acquisition of commercial items, includes the basic clause at 
252.225-7021.
    (ii) Use the provision Trade Agreements Certificate--Alternate I, 
if the solicitation, including solicitations using FAR part 12 
procedures for the acquisition of commercial items, includes the 
Alternate II of the clause at 252.225-7021.
    (6) * * *
    (i) Use the clause Trade Agreements--Basic, in solicitations and 
contracts, including solicitations and contracts using FAR part 12 
procedures for the acquisition of commercial items, that are not of end 
products in support of operations in Afghanistan, or that include the 
clause at 252.225-7024, Requirement for Products or Services from Iraq 
or Afghanistan.
* * * * *
    (iii) Do not use the basic or an alternate of the clause if--
* * * * *
    (9) * * *
    (i) Use the provision Buy American--Free Trade Agreements--Balance 
of Payments Program Certificate--Basic in solicitations, including 
solicitations using FAR part 12 procedures for the acquisition of 
commercial items, when the basic of the clause at 252.225-7036 is used.
* * * * *
    (10) * * *
    (i) * * *
    (C) Use the clause Buy American--Free Trade Agreements--Balance of 
Payments Program--Alternate II, in solicitations and contracts, 
including solicitations and contracts using FAR part 12 procedures for 
the acquisition of commercial items, when the estimated value equals or 
exceeds $100,000 and the acquisition is of end products in support of 
operations in Afghanistan.
    (D) Use the clause Buy American--Free Trade Agreements--Balance of 
Payments Program--Alternate III, in solicitations and contracts, 
including solicitations and contracts using FAR part 12 procedures for 
the acquisition of commercial items, when the estimated value is less 
than $79,507 and the acquisition is of end products in support of 
operations in Afghanistan.
* * * * *
    (F) Use the clause Buy American--Free Trade Agreements--Balance of 
Payments Program--Alternate V, in solicitations and contracts, 
including solicitations and contracts using FAR part 12 procedures for 
the acquisition of commercial items, when the estimated value equals or 
exceeds $79,507 but is less than $100,000 and the acquisition is of end 
products in support of operations in Afghanistan.
    (ii) Do not use the basic or an alternate of the clause in 
paragraph (10)(i) of this section if--
* * * * *

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
4. Amend section 252.225-7000 by--
0
a. Revising the introductory text, provision title and date, and 
paragraph (a); and
0
b. Revising Alternate I.
    The revisions read as follows:

252.225-7000  Buy American--Balance of Payments Program Certificate.

    As prescribed in 225.1101(1), use one of the following provisions:

    Basic. As prescribed in 225.1101(1)(i), use the following 
provision.

BUY AMERICAN--BALANCE OF PAYMENTS PROGRAM CERTIFICATE--BASIC (DATE)

    (a) Definitions. Commercially available off-the-shelf (COTS) 
item, component, domestic end product, foreign end product, 
qualifying country, qualifying country end product, South Caucasus/
Central and South Asian (SC/CASA) state, South Caucasus/Central and 
South Asian (SC/CASA) state end product, and United States, as used 
in this provision, have the meanings given in the Buy American and 
Balance of Payments Program clause of this solicitation.
* * * * *
    Alternate I. As prescribed in 225.1101(1)(ii), use the following 
provision, which adds ``South Caucasus/Central and South Asian (SC/
CASA) state'' and ``South Caucasus/Central and South Asian (SC/CASA) 
state end product'' in paragraph (a), and replaces ``qualifying 
country end products'' in paragraphs (b)(2) and (c)(2) with 
``qualifying country end products or SC/CASA state end products.''

BUY AMERICAN--BALANCE OF PAYMENTS PROGRAM CERTIFICATE--ALTERNATE I 
(DATE)

    (a) Definitions. Commercially available off-the-shelf (COTS) 
item, component, domestic end product, foreign end product, 
qualifying country, qualifying country end product, South Caucasus/
Central and South Asian (SC/CASA) state, South Caucasus/Central and 
South Asian (SC/CASA) state end product, and United States, as used 
in this provision, have the meanings given in the Buy American and 
Balance of Payments Program clause of this solicitation.
    (b) Evaluation. The Government--

[[Page 8391]]

    (1) Will evaluate offers in accordance with the policies and 
procedures of part 225 of the Defense Federal Acquisition Regulation 
Supplement; and
    (2) Will evaluate offers of qualifying country end products or 
SC/CASA state end products without regard to the restrictions of the 
Buy American statute or the Balance of Payments Program.
    (c) Certifications and identification of country of origin.
    (1) For all line items subject to the Buy American and Balance 
of Payments Program clause of this solicitation, the offeror 
certifies that--
    (i) Each end product, except those listed in paragraphs (c)(2) 
or (3) of this provision, is a domestic end product; and
    (ii) For end products other than COTS items, components of 
unknown origin are considered to have been mined, produced, or 
manufactured outside the United States or a qualifying country.
    (2) The offeror certifies that the following end products are 
qualifying country end products or SC/CASA state end products:

Line Item Number

Country of Origin

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

    (3) The following end products are other foreign end products, 
including end products manufactured in the United States that do not 
qualify as domestic end products, i.e., an end product that is not a 
COTS item and does not meet the component test in paragraph (ii) of 
the definition of ``domestic end product'':
Line Item Number

Country of Origin (If Known)

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

    (End of provision)
0
5. Amend section 252.225-7001 by--
0
a. Revising the introductory text, clause title and date, and
0
b. Revising Alternate I.
    The revisions read as follows:

252.225-7001  Buy American and Balance of Payments Program.

    As prescribed in 225.1101(2)(i), use one of the following clauses:
    Basic. As prescribed in 225.1101(2)(ii), use the following clause.

BUY AMERICAN AND BALANCE OF PAYMENTS PROGRAM--BASIC (DATE)

* * * * *
    Alternate I. As prescribed in 225.1101(2)(iii), use the 
following clause, which adds ``South Caucasus/Central and South 
Asian (SC/CASA) state'' and ``South Caucasus/Central and South Asian 
(SC/CASA) state end product'' to paragraph (a), and uses different 
paragraphs (b) and (c) than the basic clause.
    BUY AMERICAN AND BALANCE OF PAYMENTS PROGRAM--ALTERNATE I (DATE)
    (a) Definitions. As used in this clause--
    Commercially available off-the-shelf (COTS) item--
    (i) Means any item of supply (including construction material) 
that is--
    (A) A commercial item (as defined in paragraph (1) of the 
definition of ``commercial item'' in section 2.101 of the Federal 
Acquisition Regulation);
    (B) Sold in substantial quantities in the commercial 
marketplace; and
    (C) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and
    (ii) Does not include bulk cargo, as defined in 46 U.S.C. 
40102(4), such as agricultural products and petroleum products.
    Component means an article, material, or supply incorporated 
directly into an end product.
    Domestic end product means--
    (i) An unmanufactured end product that has been mined or 
produced in the United States; or
    (ii) An end product manufactured in the United States if--
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds 50 percent of the cost of all its components. The 
cost of components includes transportation costs to the place of 
incorporation into the end product and U.S. duty (whether or not a 
duty-free entry certificate is issued). Scrap generated, collected, 
and prepared for processing in the United States is considered 
domestic. A component is considered to have been mined, produced, or 
manufactured in the United States (regardless of its source in fact) 
if the end product in which it is incorporated is manufactured in 
the United States and the component is of a class or kind for which 
the Government has determined that--
    (1) Sufficient and reasonably available commercial quantities of 
a satisfactory quality are not mined, produced, or manufactured in 
the United States; or
    (2) It is inconsistent with the public interest to apply the 
restrictions of the Buy American statute; or
    (B) The end product is a COTS item.
    End product means those articles, materials, and supplies to be 
acquired under this contract for public use.
    Foreign end product means an end product other than a domestic 
end product.
    Qualifying country means a country with a reciprocal defense 
procurement memorandum of understanding or international agreement 
with the United States in which both countries agree to remove 
barriers to purchases of supplies produced in the other country or 
services performed by sources of the other country, and the 
memorandum or agreement complies, where applicable, with the 
requirements of section 36 of the Arms Export Control Act (22 U.S.C. 
2776) and with 10 U.S.C. 2457. Accordingly, the following are 
qualifying countries:
    Australia
    Austria
    Belgium
    Canada
    Czech Republic
    Denmark
    Egypt
    Finland
    France
    Germany
    Greece
    Israel
    Italy
    Luxembourg
    Netherlands
    Norway
    Poland
    Portugal
    Spain
    Sweden
    Switzerland
    Turkey
    United Kingdom of Great Britain and Northern Ireland.
    Qualifying country component means a component mined, produced, 
or manufactured in a qualifying country.
    Qualifying country end product means--
    (i) An unmanufactured end product mined or produced in a 
qualifying country; or
    (ii) An end product manufactured in a qualifying country if --
    (A) The cost of the following types of components exceeds 50 
percent of the cost of all its components:
    (1) Components mined, produced, or manufactured in a qualifying 
country.
    (2) Components mined, produced, or manufactured in the United 
States.
    (3) Components of foreign origin of a class or kind for which 
the Government has determined that sufficient and reasonably 
available commercial quantities of a satisfactory quality are not 
mined, produced, or manufactured in the United States; or
    (B) The end product is a COTS item.
    South Caucasus/Central and South Asian (SC/CASA) state means 
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 
Tajikistan, Turkmenistan, or Uzbekistan.
    South Caucasus/Central and South Asian (SC/CASA) state end 
product means an article that--
    (i) Is wholly the growth, product, or manufacture of an SC/CASA 
state; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in an SC/CASA state into a new and different article of 
commerce with a name, character, or use distinct from that of the 
article or articles from which it was transformed. The term refers 
to a product offered for purchase under a supply contract, but for 
purposes of calculating the value of the end product includes 
services (except transportation services) incidental to its supply, 
provided that the value of those incidental services does not exceed 
the value of the product itself.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    (b) This clause implements the Balance of Payments Program. 
Unless otherwise specified, this clause applies to all line items in 
the contract.
    (c) The Contractor shall deliver only domestic end products 
unless, in its offer, it specified delivery of other end products in 
the Buy American Balance of Payments Program Certificate provision 
of the solicitation. If the Contractor certified in its offer that 
it will deliver a qualifying country end product or an SC/CASA state 
end

[[Page 8392]]

product, the Contractor shall deliver a qualifying country end 
product, an SC/CASA state end product, or, at the Contractor's 
option, a domestic end product.
    (d) The contract price does not include duty for end products or 
components for which the Contractor will claim duty-free entry.

(End of clause)

0
6. Amend section 252.225-7013 by--
0
a. Removing the clause date ``(OCT 2013)'' and adding in its place 
``(DATE)''; and
0
b. In paragraph (a), revising the definition for ``Eligible product''.
    The revision reads as follows:

252.225-7013  Duty-Free Entry.

* * * * *
    (a) * * *
    Eligible product means--
    (i) Designated country end product, as defined in the Trade 
Agreements (basic or alternate) clause of this contract;
    (ii) Free Trade Agreement country end product, other than a 
Bahrainian end product, a Moroccan end product, a Panamanian end 
product, or a Peruvian end product, as defined in the Buy American--
Free Trade Agreements--Balance of Payments Program--Basic or the Buy 
American--Free Trade Agreements--Balance of Payments Program--Alternate 
II clause of this contract;
    (iii) Canadian end product, as defined in the Buy American--Free 
Trade Agreements--Balance of Payments Program--Alternate I or Buy 
American--Free Trade Agreements--Balance of Payments Program--Alternate 
III clause of this contract; or
    (iv) Free Trade Agreement country end product other than a 
Bahrainian end product, Korean end product, Moroccan end product, 
Panamanian end product, or Peruvian end product, as defined in the Buy 
American--Free Trade Agreements--Balance of Payments Program--Alternate 
IV or the Buy American--Free Trade Agreements--Balance of Payments 
Program--Alternate V clause of this contract.
* * * * *
0
7. Amend section 252.225-7020 by--
0
a. Revising the introductory text, provision title and date, and 
paragraph (a); and
0
b. Revising Alternate I.
    The revisions read as follows:

252.225-7020  Trade Agreements Certificate.

    As prescribed in 225.1101(5), use one of the following provisions:
    Basic. As prescribed in 225.1101(5)(i), use the following 
provision.

Trade Agreements Certificate--Basic (Date)

    (a) Definitions. Designated country end product, nondesignated 
country end product, qualifying country end product, and U.S.-made 
end product, as used in this provision, have the meanings given in 
the Trade Agreements clause of this solicitation.
* * * * *
    Alternate I. As prescribed in 225.1101(5)(ii), use the following 
provision, which adds ``South Caucasus/Central and South Asian (SC/
CASA) state'' and ``South Caucasus/Central and South Asian (SC/CASA) 
state end product'' to paragraph (a) and uses different paragraphs 
b)(2), and (c) than the basic clause.

Trade Agreements Certificate--Alternate I (Date)

    (a) Definitions. Designated country end product, nondesignated 
country end product, qualifying country end product, South Caucasus/
Central and South Asian (SC/CASA) state, South Caucasus/Central and 
South Asian (SC/CASA) state end product, and U.S.-made end product, 
as used in this provision, have the meanings given in the Trade 
Agreements clause of this solicitation.
    (b) Evaluation. The Government--
    (1) Will evaluate offers in accordance with the policies and 
procedures of part 225 of the Defense Federal Acquisition Regulation 
Supplement; and
    (2) Will consider only offers of end products that are U.S.-
made, qualifying country, SC/CASA state, or designated country end 
products unless--
    (i) There are no offers of such end products;
    (ii) The offers of such end products are insufficient to fulfill 
the Government's requirements; or
    (iii) A national interest waiver has been granted.
    (c) Certification and identification of country of origin.
    (1) For all line items subject to the Trade Agreement clause of 
this solicitation, the offeror certifies that each end product to be 
delivered under this contract, except those listed in paragraph 
(c)(2)(ii) of this provision, is a U.S.-made, qualifying country, 
SC/CASA state, or designated country end product.
    (2)(i) The following supplies are SC/CASA state end products:

(Line Item Number) (Country of Origin)

    (ii) The following are other nondesignated country end products:
(Line Item Number) (Country of Origin)

(End of provision)

0
8. Amend section 252.225-7021 by--
0
a. Revising the introductory text, clause title and date; and
0
b. Revising Alternate II.
    The revisions read as follows:

252.225-7021  Trade Agreements.

    As prescribed in 225.1101(6), use one of the following clauses:
    Basic. As prescribed in 225.1101(6)(i), use the following clause.

Trade Agreements--Basic (Date)

* * * * *
    Alternate II. As prescribed in 225.1101(6)(ii), use the 
following clause, which adds ``South Caucasus/Central and South 
Asian (SC/CASA) state'' and ``South Caucasus/Central and South Asian 
(SC/CASA) state end product'' to paragraph (a); (ii) uses a 
different paragraph (c) than the basic clause; (iii) adds a new 
paragraph (d); and (iv) includes paragraphs (e) and (f) which are 
the same paragraphs (d) and (e) of the basic clause.

Trade Agreements--Alternate II (Date)

    (a) Definitions. As used in this clause--
    Caribbean Basin country end product--
    (i) Means an article that--
    (A) Is wholly the growth, product, or manufacture of a Caribbean 
Basin country; or
    (B) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in a Caribbean Basin country into a new and different 
article of commerce with a name, character, or use distinct from 
that of the article or articles from which it was transformed. The 
term refers to a product offered for purchase under a supply 
contract, but for purposes of calculating the value of the end 
product includes services (except transportation services) 
incidental to its supply, provided that the value of those 
incidental services does not exceed the value of the product itself; 
and
    (ii) Excludes products, other than petroleum and any product 
derived from petroleum, that are not granted duty-free treatment 
under the Caribbean Basin Economic Recovery Act (19 U.S.C. 2703(b)). 
These exclusions presently consist of--
    (A) Textiles, apparel articles, footwear, handbags, luggage, 
flat goods, work gloves, leather wearing apparel, and handloomed, 
handmade, or folklore articles that are not granted duty-free status 
in the Harmonized Tariff Schedule of the United States (HTSUS);
    (B) Tuna, prepared or preserved in any manner in airtight 
containers; and
    (C) Watches and watch parts (including cases, bracelets, and 
straps) of whatever type, including, but not limited to, mechanical, 
quartz digital, or quartz analog, if such watches or watch parts 
contain any material that is the product of any country to which the 
HTSUS column 2 rates of duty (HTSUS General Note 3(b)) apply.
    Commercially available off-the-shelf (COTS) item--
    (i) Means any item of supply (including construction material) 
that is--
    (A) A commercial item (as defined in paragraph (1) of the 
definition of ``commercial item'' in section 2.101 of the Federal 
Acquisition Regulation);
    (B) Sold in substantial quantities in the commercial 
marketplace; and
    (C) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and
    (ii) Does not include bulk cargo, as defined in 46 U.S.C. 
40102(4), such as agricultural products and petroleum products.
    Component means an article, material, or supply incorporated 
directly into an end product.

[[Page 8393]]

    Designated country means--
    (i) A World Trade Organization Government Procurement Agreement 
(WTO GPA) country (Armenia, Aruba, Austria, Belgium, Bulgaria, 
Canada, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, 
Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, 
Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, 
Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, 
Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, 
Taiwan (known in the World Trade Organization as ``the Separate 
Customs Territory of Taiwan, Penghu, Kinmen, and Matsu'' (Chinese 
Taipei)), or the United Kingdom);
    (ii) A Free Trade Agreement country (Australia, Bahrain, Canada, 
Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, 
Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, 
Nicaragua, Peru, or Singapore);
    (iii) A least developed country (Afghanistan, Angola, 
Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central 
African Republic, Chad, Comoros, Democratic Republic of Congo, 
Djibouti, East Timor, Equatorial Guinea, Eritrea, Ethiopia, Gambia, 
Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, 
Madagascar, Malawi, Maldives, Mali, Mauritania, Mozambique, Nepal, 
Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, 
Solomon Islands, Somalia, Tanzania, Togo, Tuvalu, Uganda, Vanuatu, 
Yemen, or Zambia); or
    (iv) A Caribbean Basin country (Antigua and Barbuda, Aruba, 
Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, 
Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. 
Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint 
Eustatius, Sint Maarten, or Trinidad and Tobago).
    Designated country end product means a WTO GPA country end 
product, a Free Trade Agreement country end product, a least 
developed country end product, or a Caribbean Basin country end 
product.
    End product means those articles, materials, and supplies to be 
acquired under this contract for public use.
    Free Trade Agreement country end product means an article that--
    (i) Is wholly the growth, product, or manufacture of a Free 
Trade Agreement country; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in a Free Trade Agreement country into a new and 
different article of commerce with a name, character, or use 
distinct from that of the article or articles from which it was 
transformed. The term refers to a product offered for purchase under 
a supply contract, but for purposes of calculating the value of the 
end product includes services (except transportation services) 
incidental to its supply, provided that the value of those 
incidental services does not exceed the value of the product itself.
    Least developed country end product means an article that--
    (i) Is wholly the growth, product, or manufacture of a least 
developed country; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in a least developed country into a new and different 
article of commerce with a name, character, or use distinct from 
that of the article or articles from which it was transformed. The 
term refers to a product offered for purchase under a supply 
contract, but for purposes of calculating the value of the end 
product includes services (except transportation services) 
incidental to its supply, provided that the value of those 
incidental services does not exceed the value of the product itself.
    Nondesignated country end product means any end product that is 
not a U.S.-made end product or a designated country end product.
    Qualifying country means a country with a reciprocal defense 
procurement memorandum of understanding or international agreement 
with the United States in which both countries agree to remove 
barriers to purchases of supplies produced in the other country or 
services performed by sources of the other country, and the 
memorandum or agreement complies, where applicable, with the 
requirements of section 36 of the Arms Export Control Act (22 U.S.C. 
2776) and with 10 U.S.C. 2457. Accordingly, the following are 
qualifying countries:
    Australia
    Austria
    Belgium
    Canada
    Czech Republic
    Denmark
    Egypt
    Finland
    France
    Germany
    Greece
    Israel
    Italy
    Luxembourg
    Netherlands
    Norway
    Poland
    Portugal
    Spain
    Sweden
    Switzerland
    Turkey
    United Kingdom of Great Britain and Northern Ireland.
    Qualifying country end product means--
    (i) An unmanufactured end product mined or produced in a 
qualifying country; or
    (ii) An end product manufactured in a qualifying country if--
    (A) The cost of the following types of components exceeds 50 
percent of the cost of all its components:
    (1) Components mined, produced, or manufactured in a qualifying 
country.
    (2) Components mined, produced, or manufactured in the United 
States.
    (3) Components of foreign origin of a class or kind for which 
the Government has determined that sufficient and reasonably 
available commercial quantities of a satisfactory quality are not 
mined, produced, or manufactured in the United States; or
    (B) The end product is a COTS item.
    South Caucasus/Central and South Asian (SC/CASA) state means 
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 
Tajikistan, Turkmenistan, or Uzbekistan.
    South Caucasus/Central and South Asian (SC/CASA) state end 
product means an article that--
    (i) Is wholly the growth, product, or manufacture of an SC/CASA 
state; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in an SC/CASA state into a new and different article of 
commerce with a name, character, or use distinct from that of the 
article or articles from which it was transformed. The term refers 
to a product offered for purchase under a supply contract, but for 
purposes of calculating the value of the end product includes 
services (except transportation services) incidental to its supply, 
provided that the value of those incidental services does not exceed 
the value of the product itself.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    U.S.-made end product means an article that--
    (i) Is mined, produced, or manufactured in the United States; or
    (ii) Is substantially transformed in the United States into a 
new and different article of commerce with a name, character, or use 
distinct from that of the article or articles from which it was 
transformed.
    WTO GPA country end product means an article that--
    (i) Is wholly the growth, product, or manufacture of a WTO GPA 
country; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in a WTO GPA country into a new and different article of 
commerce with a name, character, or use distinct from that of the 
article or articles from which it was transformed. The term refers 
to a product offered for purchase under a supply contract, but for 
purposes of calculating the value of the end product includes 
services (except transportation services) incidental to its supply, 
provided that the value of those incidental services does not exceed 
the value of the product itself.
    (b) Unless otherwise specified, this clause applies to all items 
in the Schedule.
    (c) The Contractor shall deliver under this contract only U.S.-
made, qualifying country, SC/CASA state, or designated country end 
products unless--
    (1) In its offer, the Contractor specified delivery of other 
nondesignated country end products in the Trade Agreements 
Certificate provision of the solicitation; and
    (2)(i) Offers of U.S.-made, qualifying country, SC/CASA state, 
or designated country end products from responsive, responsible 
offerors are either not received or are insufficient to fill the 
Government's requirements; or
    (ii) A national interest waiver has been granted.
    (d) If the Contractor is from an SC/CASA state, the Contractor 
shall inform its government of its participation in this acquisition 
and that it generally will not have such opportunity in the future 
unless its government provides reciprocal procurement

[[Page 8394]]

opportunities to U.S. products and services and suppliers of such 
products and services.
    (e) The contract price does not include duty for end products or 
components for which the Contractor will claim duty-free entry.
    (f) The HTSUS is available on the Internet at http://www.usitc.gov/tata/hts/bychapter/index.htm. The following sections 
of the HTSUS provide information regarding duty-free status of 
articles specified in paragraph (a)(2)(ii)(A) of this clause:
    (1) General Note 3(c), Products Eligible for Special Tariff 
Treatment.
    (2) General Note 17, Products of Countries Designated as 
Beneficiary Countries Under the United States--Caribbean Basin Trade 
Partnership Act of 2000.
    (3) Section XXII, Chapter 98, Subchapter II, Articles Exported 
and Returned, Advanced or Improved Abroad, U.S. Note 7(b).
    (4) Section XXII, Chapter 98, Subchapter XX, Goods Eligible for 
Special Tariff Benefits Under the United States--Caribbean Basin 
Trade Partnership Act.

(End of clause)

0
9. Amend section 252.225-7035 by--
0
a. Revising the introductory text, provision title and date; and
0
b. Revising Alternates I, II, III, IV, and V.
    The revisions read as follows:

252.225-7035  Buy American--Free Trade Agreements--Balance of Payments 
Program Certificate.

    As prescribed in 225.1101(9), use one of the following provisions:

    Basic. As prescribed in 225.1101(9)(i), use the following 
provision.

Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate--Basic (Date)

* * * * *
    Alternate I. As prescribed in 225.1101(9)(ii), use the following 
provision, which uses ``Canadian end product'' in paragraph (a), 
rather than ``Bahrainian end product,'' ``Free Trade Agreement 
country,'' ``Free Trade Agreement country end product,'' ``Moroccan 
end product,'' ``Panamanian end product,'' and ``Peruvian end 
products'' in paragraph (a) of the basic provision; uses ``Canadian 
end products'' in paragraphs (b)(2) and (c)(2)(i), rather than 
``Free Trade Agreement country end products other than Bahrainian 
end products, Moroccan end products, Panamanian end products, or 
Peruvian end products'' in paragraphs (b)(2) and (c)(2)(ii) of the 
basic provision; and does not use ``Australian or'' in paragraph 
(c)(2)(i).

Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate--Alternate I (Date)

    (a) Definitions. Canadian end product, commercially available 
off-the-shelf (COTS) item, component, domestic end product, foreign 
end product, qualifying country end product, and United States, as 
used in this provision, have the meanings given in the Buy 
American--Free Trade Agreements--Balance of Payments Program clause 
of this solicitation.
    (b) Evaluation. The Government--
    (1) Will evaluate offers in accordance with the policies and 
procedures of part 225 of the Defense Federal Acquisition Regulation 
Supplement; and
    (2) For line items subject to Free Trade Agreements, will 
evaluate offers of qualifying country end products or Canadian end 
without regard to the restrictions of the Buy American or the 
Balance of Payments Program.
    (c) Certifications and identification of country of origin.
    (1) For all line items subject to the Buy American--Free Trade 
Agreements--Balance of Payments Program clause of this solicitation, 
the offeror certifies that--
    (i) Each end product, except the end products listed in 
paragraph (c)(2) of this provision, is a domestic end product; and
    (ii) Components of unknown origin are considered to have been 
mined, produced, or manufactured outside the United States or a 
qualifying country.
    (2) The offeror shall identify all end products that are not 
domestic end products.
    (i) The offeror certifies that the following supplies are 
qualifying country (except Canadian) end products:

(Line Item Number) (Country of Origin)

    (ii) The offeror certifies that the following supplies are 
Canadian end products:

(Line Item Number) (Country of Origin)

    (iii) The following supplies are other foreign end products, 
including end products manufactured in the United States that do not 
qualify as domestic end products, i.e., an end product that is not a 
COTS item and does not meet the component test in paragraph (ii) of 
the definition of domestic end product:

(Line Item Number) (Country of Origin (If known))

(End of provision)
    Alternate II. As prescribed in 225.1101(9)(iii), use the following 
provision, which adds ``South Caucasus/Central and South Asian (SC/
CASA) state'' and ``South Caucasus/Central and South Asian (SC/CASA) 
state end product'' to paragraph (a), and uses different paragraphs 
(b)(2) and (c)(2)(i) than the basic clause.

Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate--Alternate II (Date)

    (a) Definitions. Bahrainian end product, commercially available 
off-the-shelf (COTS) item, component, domestic end product, Free 
Trade Agreement country, Free Trade Agreement country end product, 
foreign end product, Moroccan end product, Panamanian end product, 
Peruvian end product, qualifying country end product, South 
Caucasus/Central and South Asian (SC/CASA) state, South Caucasus/
Central and South Asian (SC/CASA) state end product, and United 
States, as used in this provision, have the meanings given in the 
Buy American--Free Trade Agreements--Balance of Payments Program 
clause of this solicitation.
    (b) Evaluation. The Government--
    (1) Will evaluate offers in accordance with the policies and 
procedures of part 225 of the Defense Federal Acquisition Regulation 
Supplement; and
    (2) For line items subject to Free Trade Agreements, will 
evaluate offers of qualifying country end products, SC/CASA state 
end products, or Free Trade Agreement country end products other 
than Bahrainian end products, Moroccan end products, Panamanian end 
products, or Peruvian end products without regard to the 
restrictions of the Buy American or the Balance of Payments Program.
    (c) Certifications and identification of country of origin.
    (1) For all line items subject to the Buy American--Free Trade 
Agreements--Balance of Payments Program clause of this solicitation, 
the offeror certifies that--
    (i) Each end product, except the end products listed in 
paragraph (c)(2) of this provision, is a domestic end product; and
    (ii) Components of unknown origin are considered to have been 
mined, produced, or manufactured outside the United States or a 
qualifying country.
    (2) The offeror shall identify all end products that are not 
domestic end products.
    (i) The offeror certifies that the following supplies are 
qualifying country (except Australian or Canadian) or SC/CASA state 
end products:

(Line Item Number) (Country of Origin)

    (ii) The offeror certifies that the following supplies are Free 
Trade Agreement country end products other than Bahrainian end 
products, Moroccan end products, Panamanian end products, or 
Peruvian end products:

(Line Item Number) (Country of Origin)

    (iii) The following supplies are other foreign end products, 
including end products manufactured in the United States that do not 
qualify as domestic end products, i.e., an end product that is not a 
COTS item and does not meet the component test in paragraph (ii) of 
the definition of domestic end product:

(Line Item Number) (Country of Origin (If known))

(End of provision)

    Alternate III. As prescribed in 225.1101(9)(iv), use the following 
provision, which uses different paragraphs (a), (b)(2), (c)(2)(i), and 
(c)(2)(ii) than the basic clause.

Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate--Alternate III (Date)

    (a) Definitions. Canadian end product, commercially available 
off-the-shelf (COTS) item, domestic end product, foreign end 
product, qualifying country end product, South Caucasus/Central and 
South Asian (SC/CASA) state end product, and United States, as used 
in this provision have the meanings given in the Buy American--Free 
Trade Agreements--Balance of Payments Program clause of this 
solicitation.
    (b) Evaluation. The Government--
    (1) Will evaluate offers in accordance with the policies and 
procedures of part 225 of the

[[Page 8395]]

Defense Federal Acquisition Regulation Supplement; and
    (2) For line items subject to Free Trade Agreements, will 
evaluate offers of qualifying country end products, SC/CASA state 
end products, or Canadian end products without regard to the 
restrictions of the Buy American or the Balance of Payments Program.
    (c) Certifications and identification of country of origin.
    (1) For all line items subject to the Buy American--Free Trade 
Agreements--Balance of Payments Program clause of this solicitation, 
the offeror certifies that--
    (i) Each end product, except the end products listed in 
paragraph (c)(2) of this provision, is a domestic end product; and
    (ii) Components of unknown origin are considered to have been 
mined, produced, or manufactured outside the United States or a 
qualifying country.
    (2) The offeror shall identify all end products that are not 
domestic end products.
    (i) The offeror certifies that the following supplies are 
qualifying country (except Canadian) or SC/CASA state end products:

(Line Item Number) (Country of Origin)

    (ii) The offeror certifies that the following supplies are Free 
Trade Agreement country end products other than Bahrainian end 
products, Moroccan end products, Panamanian end products, or 
Peruvian end products:

(Line Item Number) (Country of Origin)

    (iii) The following supplies are other foreign end products, 
including end products manufactured in the United States that do not 
qualify as domestic end products, i.e., an end product that is not a 
COTS item and does not meet the component test in paragraph (ii) of 
the definition of domestic end product:

(Line Item Number) (Country of Origin (If known))

(End of provision)

    Alternate IV. As prescribed in 225.1101(9)(v), use the following 
provision, which adds ``Korean end product'' to paragraph (a) and uses 
``Free Trade Agreement country end products other than Bahrainian end 
products, Korean end products, Moroccan end products, Panamanian end 
products, or Peruvian end products'' in paragraphs (b)(2) and 
(c)(2)(ii), rather than ``Free Trade Agreement country end products 
other than Bahrainian end products, Moroccan end products, Panamanian 
end products, or Peruvian end products'' in paragraphs (b)(2) and 
(c)(2)(ii) of the basic provision.

Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate--Alternate IV (Date)

    (a) Definitions. Bahrainian end product, commercially available 
off-the-shelf (COTS) item, component, domestic end product, Free 
Trade Agreement country, Free Trade Agreement country end product, 
foreign end product, Korean end product, Moroccan end product, 
Panamanian end product, Peruvian end product, qualifying country end 
product, and United States, as used in this provision, have the 
meanings given in the Buy American--Free Trade Agreements--Balance 
of Payments Program clause of this solicitation.
    (b) Evaluation. The Government--
    (1) Will evaluate offers in accordance with the policies and 
procedures of part 225 of the Defense Federal Acquisition Regulation 
Supplement; and
    (2) For line items subject to Free Trade Agreements, will 
evaluate offers of qualifying country end products or Free Trade 
Agreement country end products other than Bahrainian end products, 
Korean end products, Moroccan end products, Panamanian end products, 
or Peruvian end products without regard to the restrictions of the 
Buy American or the Balance of Payments Program.
    (c) Certifications and identification of country of origin.
    (1) For all line items subject to the Buy American--Free Trade 
Agreements--Balance of Payments Program clause of this solicitation, 
the offeror certifies that--
    (i) Each end product, except the end products listed in 
paragraph (c)(2) of this provision, is a domestic end product; and
    (ii) Components of unknown origin are considered to have been 
mined, produced, or manufactured outside the United States or a 
qualifying country.
    (2) The offeror shall identify all end products that are not 
domestic end products.
    (i) The offeror certifies that the following supplies are 
qualifying country (except Australian or Canadian) end products:

(Line Item Number) (Country of Origin)

    (ii) The offeror certifies that the following supplies are Free 
Trade Agreement country end products other than Bahrainian end 
products, Korean end products, Moroccan end products, Panamanian end 
products, or Peruvian end products:

(Line Item Number) (Country of Origin)

    (iii) The following supplies are other foreign end products, 
including end products manufactured in the United States that do not 
qualify as domestic end products, i.e., an end product that is not a 
COTS item and does not meet the component test in paragraph (ii) of 
the definition of domestic end product:

(Line Item Number) (Country of Origin (If known))

(End of provision)

    Alternate V. As prescribed in 225.1101(9)(vi), use the following 
provision, which uses different paragraphs (a), (b)(2), (c)(2)(i), and 
(c)(2)(ii) than the basic clause.

Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate--Alternate V (Date)

    (a) Definitions. Bahrainian end product, commercially available 
off-the-shelf (COTS) item, component, domestic end product, Free 
Trade Agreement country, Free Trade Agreement country end product, 
foreign end product, Korean end product, Moroccan end product, 
Panamanian end product, Peruvian end product, qualifying country end 
product, South Caucasus/Central and South Asian (SC/CASA) state end 
product, and United States, as used in this provision, have the 
meanings given in the Buy American Act--Free Trade Agreements--
Balance of Payments Program clause of this solicitation.
    (b) Evaluation. The Government--
    (1) Will evaluate offers in accordance with the policies and 
procedures of part 225 of the Defense Federal Acquisition Regulation 
Supplement; and
    (2) For line items subject to Free Trade Agreements, will 
evaluate offers of qualifying country end products, SC/CASA state 
end products, or Free Trade Agreement end products other than 
Bahrainian end products, Korean end products, Moroccan end products, 
Panamanian end products, or Peruvian end products without regard to 
the restrictions of the Buy American statute or the Balance of 
Payments Program.
    (c) Certifications and identification of country of origin.
    (1) For all line items subject to the Buy American--Free Trade 
Agreements--Balance of Payments Program clause of this solicitation, 
the offeror certifies that--
    (i) Each end product, except the end products listed in 
paragraph (c)(2) of this provision, is a domestic end product; and
    (ii) Components of unknown origin are considered to have been 
mined, produced, or manufactured outside the United States or a 
qualifying country.
    (2) The offeror shall identify all end products that are not 
domestic end products.
    (i) The offeror certifies that the following supplies are 
qualifying country (except Australian or Canadian) or SC/CASA state 
end products:

(Line Item Number) (Country of Origin)

    (ii) The offeror certifies that the following supplies are Free 
Trade Agreement country end products other than Bahrainian end 
products, Korean end products, Moroccan end products, Panamanian end 
products, or Peruvian end products:

(Line Item Number) (Country of Origin)

    (iii) The following supplies are other foreign end products, 
including end products manufactured in the United States that do not 
qualify as domestic end products, i.e., an end product that is not a 
COTS item and does not meet the component test in paragraph (ii) of 
the definition of domestic end product:

(Line Item Number) (Country of Origin (If known))

(End of provision)

0
10. Amend section 252.225-7036 by--
0
a. Revising the introductory text, clause title and date; and
0
b. Revising Alternates I, II, III, IV, and V.

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

    As prescribed in 225.1101(11)(i), use one of the following clauses:

    Basic. As prescribed in 225.1101(10)(i)(A), use the following 
clause.

[[Page 8396]]

Buy American--Free Trade Agreements--Balance of Payments Program--Basic 
(Date)

* * * * *
    Alternate I. As prescribed in 225.1101(10)(i)(B), use the 
following clause, which adds ``Canadian end product'' to paragraph 
(a) and uses a different paragraph (c) than the basic clause.

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate I (Date)

    (a) Definitions. As used in this clause--
    Bahrainian end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Bahrain; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Bahrain into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Canadian end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Canada; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Canada into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Commercially available off-the-shelf (COTS) item--
    (i) Means any item of supply (including construction material) 
that is--
    (A) A commercial item (as defined in paragraph (1) of the 
definition of ``commercial item'' in section 2.101 of the Federal 
Acquisition Regulation);
    (B) Sold in substantial quantities in the commercial 
marketplace; and
    (C) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and
    (ii) Does not include bulk cargo, as defined in 46 U.S.C. 
40102(4), such as agricultural products and petroleum products.
    Component means an article, material, or supply incorporated 
directly into an end product.
    Domestic end product means--
    (i) An unmanufactured end product that has been mined or 
produced in the United States; or
    (ii) An end product manufactured in the United States if--
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds 50 percent of the cost of all its components. The 
cost of components includes transportation costs to the place of 
incorporation into the end product and U.S. duty (whether or not a 
duty-free entry certificate is issued). Scrap generated, collected, 
and prepared for processing in the United States is considered 
domestic. A component is considered to have been mined, produced, or 
manufactured in the United States (regardless of its source in fact) 
if the end product in which it is incorporated is manufactured in 
the United States and the component is of a class or kind for which 
the Government has determined that--
    (1) Sufficient and reasonably available commercial quantities of 
a satisfactory quality are not mined, produced, or manufactured in 
the United States; or
    (2) It is inconsistent with the public interest to apply the 
restrictions of the Buy American statute; or
    (B) The end product is a COTS item.
    End product means those articles, materials, and supplies to be 
acquired under this contract for public use.
    Foreign end product means an end product other than a domestic 
end product.
    Free Trade Agreement country means Australia, Bahrain, Canada, 
Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, 
Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, 
Nicaragua, Panama, Peru, or Singapore;
    Free Trade Agreement country end product means an article that--
    (i) Is wholly the growth, product, or manufacture of a Free 
Trade Agreement country; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in a Free Trade Agreement country into a new and 
different article of commerce with a name, character, or use 
distinct from that of the article or articles from which it was 
transformed. The term refers to a product offered for purchase under 
a supply contract, but for purposes of calculating the value of the 
end product includes services (except transportation services) 
incidental to its supply, provided that the value of those 
incidental services does not exceed the value of the product itself.
    Moroccan end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Morocco; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Morocco into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Panamanian end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Panama; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Panama into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Peruvian end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Peru; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Peru into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Qualifying country means a country with a reciprocal defense 
procurement memorandum of understanding or international agreement 
with the United States in which both countries agree to remove 
barriers to purchases of supplies produced in the other country or 
services performed by sources of the other country, and the 
memorandum or agreement complies, where applicable, with the 
requirements of section 36 of the Arms Export Control Act (22 U.S.C. 
2776) and with 10 U.S.C. 2457. Accordingly, the following are 
qualifying countries:
    Australia
    Austria
    Belgium
    Canada
    Czech Republic
    Denmark
    Egypt
    Finland
    France
    Germany
    Greece
    Israel
    Italy
    Luxembourg
    Netherlands
    Norway
    Poland
    Portugal
    Spain
    Sweden
    Switzerland
    Turkey
    United Kingdom of Great Britain and Northern Ireland.

[[Page 8397]]

    Qualifying country component means a component mined, produced, 
or manufactured in a qualifying country.
    Qualifying country end product means--
    (i) An unmanufactured end product mined or produced in a 
qualifying country; or
    (ii) An end product manufactured in a qualifying country if--
    (A) The cost of the following types of components exceeds 50 
percent of the cost of all its components:
    (1) Components mined, produced, or manufactured in a qualifying 
country.
    (2) Components mined, produced, or manufactured in the United 
States.
    (3) Components of foreign origin of a class or kind for which 
the Government has determined that sufficient and reasonably 
available commercial quantities of a satisfactory quality are not 
mined, produced, or manufactured in the United States; or
    (B) The end product is a COTS item.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    (b) Unless otherwise specified, this clause applies to all items 
in the Schedule.
    (c) The Contractor shall deliver under this contract only 
domestic end products unless, in its offer, it specified delivery of 
qualifying country, Canadian, or other foreign end products in the 
Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate provision of the solicitation. If the Contractor 
certified in its offer that it will deliver a qualifying country end 
product or a Canadian end product, the Contractor shall deliver a 
qualifying country end product, a Canadian end product, or, at the 
Contractor's option, a domestic end product.
    (d) The contract price does not include duty for end products or 
components for which the Contractor will claim duty-free entry.

(End of clause)

    Alternate II. As prescribed in 225.1101(10)(i)(C), use the 
following clause, which adds ``South Caucasus/Central and South Asian 
(SC/CASA) state'' and ``South Caucasus/Central and South Asian (SC/
CASA) state end product'' to paragraph (a), and uses a different 
paragraph (c) than the basic clause.

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate II (Date)

    (a) Definitions. As used in this clause--
    Bahrainian end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Bahrain; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Bahrain into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Commercially available off-the-shelf (COTS) item--
    (i) Means any item of supply (including construction material) 
that is--
    (A) A commercial item (as defined in paragraph (1) of the 
definition of ``commercial item'' in section 2.101 of the Federal 
Acquisition Regulation);
    (B) Sold in substantial quantities in the commercial 
marketplace; and
    (C) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and
    (ii) Does not include bulk cargo, as defined in 46 U.S.C. 
40102(4), such as agricultural products and petroleum products.
    Component means an article, material, or supply incorporated 
directly into an end product.
    Domestic end product means--
    (i) An unmanufactured end product that has been mined or 
produced in the United States; or
    (ii) An end product manufactured in the United States if--
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds 50 percent of the cost of all its components. The 
cost of components includes transportation costs to the place of 
incorporation into the end product and U.S. duty (whether or not a 
duty-free entry certificate is issued). Scrap generated, collected, 
and prepared for processing in the United States is considered 
domestic. A component is considered to have been mined, produced, or 
manufactured in the United States (regardless of its source in fact) 
if the end product in which it is incorporated is manufactured in 
the United States and the component is of a class or kind for which 
the Government has determined that--
    (1) Sufficient and reasonably available commercial quantities of 
a satisfactory quality are not mined, produced, or manufactured in 
the United States; or
    (2) It is inconsistent with the public interest to apply the 
restrictions of the Buy American statute; or
    (B) The end product is a COTS item.
    End product means those articles, materials, and supplies to be 
acquired under this contract for public use.
    Foreign end product means an end product other than a domestic 
end product.
    Free Trade Agreement country means Australia, Bahrain, Canada, 
Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, 
Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, 
Nicaragua, Panama, Peru, or Singapore;
    Free Trade Agreement country end product means an article that--
    (i) Is wholly the growth, product, or manufacture of a Free 
Trade Agreement country; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in a Free Trade Agreement country into a new and 
different article of commerce with a name, character, or use 
distinct from that of the article or articles from which it was 
transformed. The term refers to a product offered for purchase under 
a supply contract, but for purposes of calculating the value of the 
end product includes services (except transportation services) 
incidental to its supply, provided that the value of those 
incidental services does not exceed the value of the product itself.
    Moroccan end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Morocco; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Morocco into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Panamanian end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Panama; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Panama into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Peruvian end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Peru; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Peru into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Qualifying country means a country with a reciprocal defense 
procurement memorandum of understanding or international agreement 
with the United States in which both countries agree to remove 
barriers to purchases of supplies produced in the other country or 
services performed by sources of the other country,

[[Page 8398]]

and the memorandum or agreement complies, where applicable, with the 
requirements of section 36 of the Arms Export Control Act (22 U.S.C. 
2776) and with 10 U.S.C. 2457. Accordingly, the following are 
qualifying countries:
    Australia
    Austria
    Belgium
    Canada
    Czech Republic
    Denmark
    Egypt
    Finland
    France
    Germany
    Greece
    Israel
    Italy
    Luxembourg
    Netherlands
    Norway
    Poland
    Portugal
    Spain
    Sweden
    Switzerland
    Turkey
    United Kingdom of Great Britain and Northern Ireland.
    Qualifying country component means a component mined, produced, 
or manufactured in a qualifying country.
    Qualifying country end product means--
    (i) An unmanufactured end product mined or produced in a 
qualifying country; or
    (ii) An end product manufactured in a qualifying country if--
    (A) The cost of the following types of components exceeds 50 
percent of the cost of all its components:
    (1) Components mined, produced, or manufactured in a qualifying 
country.
    (2) Components mined, produced, or manufactured in the United 
States.
    (3) Components of foreign origin of a class or kind for which 
the Government has determined that sufficient and reasonably 
available commercial quantities of a satisfactory quality are not 
mined, produced, or manufactured in the United States; or
    (B) The end product is a COTS item.
    South Caucasus/Central and South Asian (SC/CASA) state means 
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 
Tajikistan, Turkmenistan, or Uzbekistan.
    South Caucasus/Central and South Asian (SC/CASA) state end 
product means an article that--
    (i) Is wholly the growth, product, or manufacture of an SC/CASA 
state; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in an SC/CASA state into a new and different article of 
commerce with a name, character, or use distinct from that of the 
article or articles from which it was transformed. The term refers 
to a product offered for purchase under a supply contract, but for 
purposes of calculating the value of the end product includes 
services (except transportation services) incidental to its supply, 
provided that the value of those incidental services does not exceed 
the value of the product itself.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    (b) Unless otherwise specified, this clause applies to all items 
in the Schedule.
    (c) The Contractor shall deliver under this contract only 
domestic end products unless, in its offer, it specified delivery of 
qualifying country end products, SC/CASA state end products, Free 
Trade Agreement country end products other than Bahrainian end 
products, Moroccan end products, Panamanian end products, or 
Peruvian end products, or other foreign end products in the Buy 
American--Free Trade Agreements--Balance of Payments Program 
Certificate provision of the solicitation. If the Contractor 
certified in its offer that it will deliver a qualifying country end 
product, SC/CASA state end products, or a Free Trade Agreement 
country end product other than a Bahrainian end product, a Moroccan 
end product, a Panamanian end product, or a Peruvian end product, 
the Contractor shall deliver a qualifying country end product, an 
SC/CASA state end product, a Free Trade Agreement country end 
product other than a Bahrainian end product, a Moroccan end product, 
a Panamanian end product, or a Peruvian end product or, at the 
Contractor's option, a domestic end product.
    (d) The contract price does not include duty for end products or 
components for which the Contractor will claim duty-free entry.

(End of clause)

    Alternate III. As prescribed in 225.1101(10)(i)(D), use the 
following clause, which adds ``Canadian end product'', ``South 
Caucasus/Central and South Asian (SC/CASA) state'', and ``South 
Caucasus/Central and South Asian (SC/CASA) state end product'' to 
paragraph (a) and uses a different paragraph (c) than the basic clause.

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate III (Date)

    (a) Definitions. As used in this clause--
    Bahrainian end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Bahrain; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Bahrain into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Canadian end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Canada; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Canada into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Commercially available off-the-shelf (COTS) item--
    (i) Means any item of supply (including construction material) 
that is--
    (A) A commercial item (as defined in paragraph (1) of the 
definition of ``commercial item'' in section 2.101 of the Federal 
Acquisition Regulation);
    (B) Sold in substantial quantities in the commercial 
marketplace; and
    (C) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and
    (ii) Does not include bulk cargo, as defined in 46 U.S.C. 
40102(4), such as agricultural products and petroleum products.
    Component means an article, material, or supply incorporated 
directly into an end product.
    Domestic end product means--
    (i) An unmanufactured end product that has been mined or 
produced in the United States; or
    (ii) An end product manufactured in the United States if--
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds 50 percent of the cost of all its components. The 
cost of components includes transportation costs to the place of 
incorporation into the end product and U.S. duty (whether or not a 
duty-free entry certificate is issued). Scrap generated, collected, 
and prepared for processing in the United States is considered 
domestic. A component is considered to have been mined, produced, or 
manufactured in the United States (regardless of its source in fact) 
if the end product in which it is incorporated is manufactured in 
the United States and the component is of a class or kind for which 
the Government has determined that--
    (1) Sufficient and reasonably available commercial quantities of 
a satisfactory quality are not mined, produced, or manufactured in 
the United States; or
    (2) It is inconsistent with the public interest to apply the 
restrictions of the Buy American statute; or
    (B) The end product is a COTS item.
    End product means those articles, materials, and supplies to be 
acquired under this contract for public use.
    Foreign end product means an end product other than a domestic 
end product.
    Free Trade Agreement country means Australia, Bahrain, Canada, 
Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, 
Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, 
Nicaragua, Panama, Peru, or Singapore;

[[Page 8399]]

    Free Trade Agreement country end product means an article that--
    (i) Is wholly the growth, product, or manufacture of a Free 
Trade Agreement country; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in a Free Trade Agreement country into a new and 
different article of commerce with a name, character, or use 
distinct from that of the article or articles from which it was 
transformed. The term refers to a product offered for purchase under 
a supply contract, but for purposes of calculating the value of the 
end product includes services (except transportation services) 
incidental to its supply, provided that the value of those 
incidental services does not exceed the value of the product itself.
    Moroccan end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Morocco; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Morocco into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Panamanian end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Panama; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Panama into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Peruvian end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Peru; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Peru into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Qualifying country means a country with a reciprocal defense 
procurement memorandum of understanding or international agreement 
with the United States in which both countries agree to remove 
barriers to purchases of supplies produced in the other country or 
services performed by sources of the other country, and the 
memorandum or agreement complies, where applicable, with the 
requirements of section 36 of the Arms Export Control Act (22 U.S.C. 
2776) and with 10 U.S.C. 2457. Accordingly, the following are 
qualifying countries:
    Australia
    Austria
    Belgium
    Canada
    Czech Republic
    Denmark
    Egypt
    Finland
    France
    Germany
    Greece
    Israel
    Italy
    Luxembourg
    Netherlands
    Norway
    Poland
    Portugal
    Spain
    Sweden
    Switzerland
    Turkey
    United Kingdom of Great Britain and Northern Ireland.
    Qualifying country component means a component mined, produced, 
or manufactured in a qualifying country.
    Qualifying country end product means--
    (i) An unmanufactured end product mined or produced in a 
qualifying country; or
    (ii) An end product manufactured in a qualifying country if--
    (A) The cost of the following types of components exceeds 50 
percent of the cost of all its components:
    (1) Components mined, produced, or manufactured in a qualifying 
country.
    (2) Components mined, produced, or manufactured in the United 
States.
    (3) Components of foreign origin of a class or kind for which 
the Government has determined that sufficient and reasonably 
available commercial quantities of a satisfactory quality are not 
mined, produced, or manufactured in the United States; or
    (B) The end product is a COTS item.
    South Caucasus/Central and South Asian (SC/CASA) state means 
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 
Tajikistan, Turkmenistan, or Uzbekistan.
    South Caucasus/Central and South Asian (SC/CASA) state end 
product means an article that--
    (i) Is wholly the growth, product, or manufacture of an SC/CASA 
state; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in an SC/CASA state into a new and different article of 
commerce with a name, character, or use distinct from that of the 
article or articles from which it was transformed. The term refers 
to a product offered for purchase under a supply contract, but for 
purposes of calculating the value of the end product includes 
services (except transportation services) incidental to its supply, 
provided that the value of those incidental services does not exceed 
the value of the product itself.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    (b) Unless otherwise specified, this clause applies to all items 
in the Schedule.
    (c) The Contractor shall deliver under this contract only 
domestic end products unless, in its offer, it specified delivery of 
qualifying country end products, SC/CASA state end products, 
Canadian end products, or other foreign end products in the Buy 
American--Free Trade Agreements--Balance of Payments Program 
Certificate provision of the solicitation. If the Contractor 
certified in its offer that it will deliver a qualifying country end 
product, SC/CASA state end products, or a Canadian end product, the 
Contractor shall deliver a qualifying country end product, an SC/
CASA state end product, a Canadian end product or, at the 
Contractor's option, a domestic end product.
    (d) The contract price does not include duty for end products or 
components for which the Contractor will claim duty-free entry.

(End of clause)

    Alternate IV. As prescribed in 225.1101(10)(i)(E), use the 
following clause, which adds ``Korean end product'' to paragraph (a), 
and uses a different paragraph (c) than the basic clause.

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate IV (Date)

    (a) Definitions. As used in this clause--
    Bahrainian end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Bahrain; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Bahrain into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Commercially available off-the-shelf (COTS) item--
    (i) Means any item of supply (including construction material) 
that is--
    (A) A commercial item (as defined in paragraph (1) of the 
definition of ``commercial item'' in section 2.101 of the Federal 
Acquisition Regulation);
    (B) Sold in substantial quantities in the commercial 
marketplace; and
    (C) Offered to the Government, under a contract or subcontract 
at any tier, without

[[Page 8400]]

modification, in the same form in which it is sold in the commercial 
marketplace; and
    (ii) Does not include bulk cargo, as defined in 46 U.S.C. 
40102(4), such as agricultural products and petroleum products.
    Component means an article, material, or supply incorporated 
directly into an end product.
    Domestic end product means--
    (i) An unmanufactured end product that has been mined or 
produced in the United States; or
    (ii) An end product manufactured in the United States if--
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds 50 percent of the cost of all its components. The 
cost of components includes transportation costs to the place of 
incorporation into the end product and U.S. duty (whether or not a 
duty-free entry certificate is issued). Scrap generated, collected, 
and prepared for processing in the United States is considered 
domestic. A component is considered to have been mined, produced, or 
manufactured in the United States (regardless of its source in fact) 
if the end product in which it is incorporated is manufactured in 
the United States and the component is of a class or kind for which 
the Government has determined that--
    (1) Sufficient and reasonably available commercial quantities of 
a satisfactory quality are not mined, produced, or manufactured in 
the United States; or
    (2) It is inconsistent with the public interest to apply the 
restrictions of the Buy American statute; or
    (B) The end product is a COTS item.
    End product means those articles, materials, and supplies to be 
acquired under this contract for public use.
    Foreign end product means an end product other than a domestic 
end product.
    Free Trade Agreement country means Australia, Bahrain, Canada, 
Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, 
Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, 
Nicaragua, Panama, Peru, or Singapore;
    Free Trade Agreement country end product means an article that--
    (i) Is wholly the growth, product, or manufacture of a Free 
Trade Agreement country; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in a Free Trade Agreement country into a new and 
different article of commerce with a name, character, or use 
distinct from that of the article or articles from which it was 
transformed. The term refers to a product offered for purchase under 
a supply contract, but for purposes of calculating the value of the 
end product includes services (except transportation services) 
incidental to its supply, provided that the value of those 
incidental services does not exceed the value of the product itself.
    Korean end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Korea; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Korea (Republic of) into a new and different article 
of commerce with a name, character, or use distinct from that of the 
article or articles from which it was transformed. The term refers 
to a product offered for purchase under a supply contract, but for 
purposes of calculating the value of the end product, includes 
services (except transportation services) incidental to its supply, 
provided that the value of those incidental services does not exceed 
the value of the product itself.
    Moroccan end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Morocco; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Morocco into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Panamanian end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Panama; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Panama into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Peruvian end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Peru; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Peru into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Qualifying country means a country with a reciprocal defense 
procurement memorandum of understanding or international agreement 
with the United States in which both countries agree to remove 
barriers to purchases of supplies produced in the other country or 
services performed by sources of the other country, and the 
memorandum or agreement complies, where applicable, with the 
requirements of section 36 of the Arms Export Control Act (22 U.S.C. 
2776) and with 10 U.S.C. 2457. Accordingly, the following are 
qualifying countries:
    Australia
    Austria
    Belgium
    Canada
    Czech Republic
    Denmark
    Egypt
    Finland
    France
    Germany
    Greece
    Israel
    Italy
    Luxembourg
    Netherlands
    Norway
    Poland
    Portugal
    Spain
    Sweden
    Switzerland
    Turkey
    United Kingdom of Great Britain and Northern Ireland.
    Qualifying country component means a component mined, produced, 
or manufactured in a qualifying country.
    Qualifying country end product means--
    (i) An unmanufactured end product mined or produced in a 
qualifying country; or
    (ii) An end product manufactured in a qualifying country if--
    (A) The cost of the following types of components exceeds 50 
percent of the cost of all its components:
    (1) Components mined, produced, or manufactured in a qualifying 
country.
    (2) Components mined, produced, or manufactured in the United 
States.
    (3) Components of foreign origin of a class or kind for which 
the Government has determined that sufficient and reasonably 
available commercial quantities of a satisfactory quality are not 
mined, produced, or manufactured in the United States; or
    (B) The end product is a COTS item.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    (b) Unless otherwise specified, this clause applies to all items 
in the Schedule.
    (c) The Contractor shall deliver under this contract only 
domestic end products unless, in its offer, it specified delivery of 
qualifying country end products, Free Trade Agreement country end 
products other than Bahrainian end products, Korean end products, 
Moroccan end products, Panamanian end products, or Peruvian end 
products, or other foreign end products in the Buy American--Free 
Trade Agreements--Balance of Payments Program Certificate provision 
of the solicitation. If the Contractor certified in its offer that 
it will deliver a qualifying country end product or a Free Trade 
Agreement country end product other than a Bahrainian end product, a 
Korean end product, a Moroccan end product, a Panamanian end 
product, or a Peruvian end

[[Page 8401]]

product, the Contractor shall deliver a qualifying country end 
product, a Free Trade Agreement country end product other than a 
Bahrainian end product, a Korean end product, a Moroccan end 
product, a Panamanian end product, or a Peruvian end product, or, at 
the Contractor's option, a domestic end product.
    (d) The contract price does not include duty for end products or 
components for which the Contractor will claim duty-free entry.

(End of clause)

    Alternate V. As prescribed in 225.1101(10)(i)(F), use the following 
clause, which adds ``Korean end product'', ``South Caucasus/Central and 
South Asian (SC/CASA) state'', and ``South Caucasus/Central and South 
Asian (SC/CASA) state end product'' to paragraph (a), and uses a 
different paragraph (c) than the basic clause.

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate V (Date)

    (a) Definitions. As used in this clause--
    Bahrainian end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Bahrain; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Bahrain into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Commercially available off-the-shelf (COTS) item--
    (i) Means any item of supply (including construction material) 
that is--
    (A) A commercial item (as defined in paragraph (1) of the 
definition of ``commercial item'' in section 2.101 of the Federal 
Acquisition Regulation);
    (B) Sold in substantial quantities in the commercial 
marketplace; and
    (C) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and
    (ii) Does not include bulk cargo, as defined in 46 U.S.C. 
40102(4), such as agricultural products and petroleum products.
    Component means an article, material, or supply incorporated 
directly into an end product.
    Domestic end product means--
    (i) An unmanufactured end product that has been mined or 
produced in the United States; or
    (ii) An end product manufactured in the United States if--
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds 50 percent of the cost of all its components. The 
cost of components includes transportation costs to the place of 
incorporation into the end product and U.S. duty (whether or not a 
duty-free entry certificate is issued). Scrap generated, collected, 
and prepared for processing in the United States is considered 
domestic. A component is considered to have been mined, produced, or 
manufactured in the United States (regardless of its source in fact) 
if the end product in which it is incorporated is manufactured in 
the United States and the component is of a class or kind for which 
the Government has determined that--
    (1) Sufficient and reasonably available commercial quantities of 
a satisfactory quality are not mined, produced, or manufactured in 
the United States; or
    (2) It is inconsistent with the public interest to apply the 
restrictions of the Buy American statute; or
    (B) The end product is a COTS item.
    End product means those articles, materials, and supplies to be 
acquired under this contract for public use.
    Foreign end product means an end product other than a domestic 
end product.
    Free Trade Agreement country means Australia, Bahrain, Canada, 
Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, 
Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, 
Nicaragua, Panama, Peru, or Singapore;
    Free Trade Agreement country end product means an article that--
    (i) Is wholly the growth, product, or manufacture of a Free 
Trade Agreement country; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in a Free Trade Agreement country into a new and 
different article of commerce with a name, character, or use 
distinct from that of the article or articles from which it was 
transformed. The term refers to a product offered for purchase under 
a supply contract, but for purposes of calculating the value of the 
end product includes services (except transportation services) 
incidental to its supply, provided that the value of those 
incidental services does not exceed the value of the product itself.
    Korean end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Korea; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Korea (Republic of) into a new and different article 
of commerce with a name, character, or use distinct from that of the 
article or articles from which it was transformed. The term refers 
to a product offered for purchase under a supply contract, but for 
purposes of calculating the value of the end product, includes 
services (except transportation services) incidental to its supply, 
provided that the value of those incidental services does not exceed 
the value of the product itself.
    Moroccan end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Morocco; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Morocco into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Panamanian end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Panama; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Panama into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Peruvian end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Peru; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Peru into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Qualifying country means a country with a reciprocal defense 
procurement memorandum of understanding or international agreement 
with the United States in which both countries agree to remove 
barriers to purchases of supplies produced in the other country or 
services performed by sources of the other country, and the 
memorandum or agreement complies, where applicable, with the 
requirements of section 36 of the Arms Export Control Act (22 U.S.C. 
2776) and with 10 U.S.C. 2457. Accordingly, the following are 
qualifying countries:
    Australia
    Austria
    Belgium
    Canada
    Czech Republic
    Denmark
    Egypt

[[Page 8402]]

    Finland
    France
    Germany
    Greece
    Israel
    Italy
    Luxembourg
    Netherlands
    Norway
    Poland
    Portugal
    Spain
    Sweden
    Switzerland
    Turkey
    United Kingdom of Great Britain and Northern Ireland.
    Qualifying country component means a component mined, produced, 
or manufactured in a qualifying country.
    Qualifying country end product means--
    (i) An unmanufactured end product mined or produced in a 
qualifying country; or
    (ii) An end product manufactured in a qualifying country if--
    (A) The cost of the following types of components exceeds 50 
percent of the cost of all its components:
    (1) Components mined, produced, or manufactured in a qualifying 
country.
    (2) Components mined, produced, or manufactured in the United 
States.
    (3) Components of foreign origin of a class or kind for which 
the Government has determined that sufficient and reasonably 
available commercial quantities of a satisfactory quality are not 
mined, produced, or manufactured in the United States; or
    (B) The end product is a COTS item.
    South Caucasus/Central and South Asian (SC/CASA) state means 
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 
Tajikistan, Turkmenistan, or Uzbekistan.
    South Caucasus/Central and South Asian (SC/CASA) state end 
product means an article that--
    (i) Is wholly the growth, product, or manufacture of an SC/CASA 
state; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in an SC/CASA state into a new and different article of 
commerce with a name, character, or use distinct from that of the 
article or articles from which it was transformed. The term refers 
to a product offered for purchase under a supply contract, but for 
purposes of calculating the value of the end product, includes 
services (except transportation services) incidental to its supply, 
provided that the value of those incidental services does not exceed 
the value of the product itself.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    (b) Unless otherwise specified, this clause applies to all items 
in the Schedule.
    (c) The Contractor shall deliver under this contract only 
domestic end products unless, in its offer, it specified delivery of 
qualifying country end products, SC/CASA state end products, Free 
Trade Agreement country end products other than Bahrainian end 
products, Korean end products, Moroccan end products, Panamanian end 
products, or Peruvian end products, or other foreign end products in 
the Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate provision of the solicitation. If the Contractor 
certified in its offer that it will deliver a qualifying country end 
product, SC/CASA state end products, or a Free Trade Agreement 
country end product other than a Bahrainian end product, a Korean 
end product, a Moroccan end product, a Panamanian end product, or a 
Peruvian end product, the Contractor shall deliver a qualifying 
country end product, an SC/CASA state end product, a Free Trade 
Agreement country end product other than a Bahrainian end product, a 
Korean end product, a Moroccan end product, a Panamanian end 
product, or a Peruvian end product or, at the Contractor's option, a 
domestic end product.
    (d) The contract price does not include duty for end products or 
components for which the Contractor will claim duty-free entry.

(End of clause)

[FR Doc. 2014-02928 Filed 2-6-14; 8:45 am]
BILLING CODE 5001-06-P
```