Vol. 79 Wednesday, 

No. 214 November 5, 2014 

Part III 

Department of Defense 

Defense Acquisition Regulations System 

48 CFR Parts 212, 225, and 252 

Defense Federal Acquisition Regulation Supplement: Clauses With 

Alternates—Foreign Acquisition (DFARS Case 2013–D005); Final Rule 

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65816 Federal Register / Vol. 79, No. 214 / Wednesday, November 5, 2014 / Rules and Regulations 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 212, 225, and 252 

RIN 0750–AH94 

Defense Federal Acquisition 

Regulation Supplement: Clauses With 

Alternates—Foreign Acquisition 

(DFARS Case 2013–D005) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is issuing a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to create separate prescriptions 

for the basic clause as well as each 

alternate in each set of foreign 

acquisition-related provisions/clauses 

with one or more alternates. In addition, 

the rule includes the full text of each 

provision or clause alternate. 

DATES: Effective November 5, 2014. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Amy Williams, telephone 571–372– 

6106. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published a proposed rule in the 

Federal Register at 79 FR 8387 on 

February 12, 2014, to revise the 

presentation of the DFARS part 225 

clauses with alternates and their 

prescriptions. An umbrella prescription 

is provided for the elements common to 

the basic clause and the alternate. The 

specific prescriptions for the basic 

clause and the alternate address the 

requirements for their use that enable 

the selection of the basic or the alternate 

clause. The full text of each provision 

and clause alternate is also included in 

the regulation. 

II. Discussion and Analysis 

No public comments were submitted 

in response to the proposed rule. 

Although DFARS part 225 contains 

eight solicitation provisions and clauses 

that have, or are, alternates, the 

proposed rule only addressed six. The 

other two were to have been revised in 

another DFARS case; however, that case 

was cancelled before publication. This 

final rule includes these two clauses, 

252.225–7044 and 252.225–7045, to 

reformat them to conform to the new 

structure paradigm for clauses with 

alternates. Additionally, some other 

minor wording changes are made for 

clarity and consistency in presentation 

of the clauses and provisions. 

III. Executive Orders 12866 and 13563 

Executive Orders (E.O.s) 12866 and 

13563 direct agencies to assess all costs 

and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). E.O. 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This is not a significant 

regulatory action and, therefore, was not 

subject to review under section 6(b) of 

E.O. 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

rule is not a major rule under 5 U.S.C. 

804. 

IV. Regulatory Flexibility Act 

A final regulatory flexibility analysis 

has been prepared consistent with the 

Regulatory Flexibility Act, 5 U.S.C. 601, 

et seq., and is summarized as follows: 

This final rule amends the Defense 

Federal Acquisition Regulation 

Supplement (DFARS) to revise the 

format, not the substance, of 

prescriptions for provisions and clauses 

with alternates, and include the full text 

of each provision or clause in each 

alternate. The rule creates an 

overarching prescription for each set of 

provisions/clauses with one or more 

alternates. The overarching prescription 

is intended to include the common 

requirements for the use of that 

provision/clause set. 

This rule facilitates use of automated 

contract writing systems by revising the 

prescription format for DFARS 

provisions/clauses that have one or 

more alternates. This rule revises the 

prescription format so that there is an 

overarching prescription that covers the 

elements that the basic provision/clause 

and all its alternates have in common. 

A separate prescription is provided for 

use of the basic prescription/clause and 

each alternate. In addition, each 

alternate provision/clause is presented 

in full text, not just the paragraph or 

section that is different from the basic 

provision/clause. This makes the terms 

of a provision or clause alternate clearer 

to offerors, as well as to DoD contracting 

officers, because all paragraph 

substitutions will have already been 

made. Inapplicable paragraphs from the 

basic provision/clause that are 

superseded by the alternate will not be 

included in the solicitation or contract 

to prevent confusion. 

No comments were received from the 

public in response to the initial 

regulatory flexibility analysis. 

Potential offerors, including small 

businesses, initially may be affected by 

this rule by seeing an unfamiliar format 

for provision/clause alternates in 

solicitations and contracts issued by 

DoD contracting activities. DoD awarded 

an average of 270,000 contract actions 

(excluding modifications and orders) in 

Fiscal Year 2012, of which an average of 

180,000 (67%) were awarded to about 

35,000 unique small business entities. It 

is unknown as to how many of these 

contracts were awarded that included 

an alternate to a DFARS provision or 

clause. Nothing substantive will change 

in solicitations or contracts for potential 

offerors, and only the appearance of 

how the provision/clause alternates are 

presented in solicitations and contracts 

will be changed. This rule may result in 

potential offerors, including small 

businesses, expending more time to 

become familiar with and to understand 

the new format of provision/clause 

alternates in full text contained in 

contracts issued by any DoD contracting 

activity. The rule also anticipates saving 

contractors’ time by making all 

paragraph substitutions from the basic 

clause and by not requiring offerors to 

read inapplicable paragraphs contained 

in the basic provisions/clauses where 

alternates are also included in the 

solicitations and contracts. The overall 

burden caused by this rule is expected 

to be negligible and will not be any 

greater on small businesses than it is on 

large businesses. 

This rule does not add any new 

information collection, reporting, or 

recording keeping requirements. No 

alternatives were determined that will 

accomplish the objectives of the rule. 

V. Paperwork Reduction Act 

The rule does not contain any new 

information collection requirements that 

require the approval of the Office of 

Management and Budget under the 

Paperwork Reduction Act (44 U.S.C. 

chapter 35). 

List of Subjects in 48 CFR Parts 212, 

225, and 252 

Government procurement. 

Manuel Quinones, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR parts 212, 225, and 

252 are amended as follows: 

■ 1. The authority citation for 48 CFR 

parts 212, 225, and 252 continues to 

read as follows: 

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

chapter 1. 

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Federal Register / Vol. 79, No. 214 / Wednesday, November 5, 2014 / Rules and Regulations 65817 

PART 212—ACQUISITION OF 

COMMERCIAL ITEMS 

■ 2. Amend section 212.301 by— 

■ a. Revising paragraphs (f)(xxiii) and 

(xxiv); 

■ b. In paragraph (f)(xxxiii)(A), 

removing the comma and adding a 

period in its place; 

■ c. In paragraph (f)(xxxiii)(B), removing 

‘‘Use the provision with its Alternate I’’ 

and adding ‘‘Use the alternate I 

provision’’ in its place; 

■ d. In paragraph (f)(xxxiv), 

introductory text, adding a comma after 

‘‘Trade Agreements’’; 

■ e. In paragraph (f)(xxxiv)(B), removing 

‘‘Use the clause with its Alternate II’’ 

and adding ‘‘Use the alternate II clause’’ 

in its place, and removing 

‘‘225.1101(6)(iii)’’ and adding 

‘‘225.1101(6)(ii)’’ in its place; 

■ f. Revising paragraphs (f)(xlii)(B) 

through (F); 

■ g. Revising paragraphs (f)(xliii)(B) 

through (F). 

212.301 Solicitation provisions and 

contract clauses for the acquisition of 

commercial items. 

(f) * * * 

(xxiii) Use the provision at 252.225– 

7000, Buy American—Balance of 

Payments Program Certificate, to 

comply with 41 U.S.C. chapter 83 and 

Executive Order 10582 of December 17, 

1954, Prescribing Uniform Procedures 

for Certain Determinations Under the 

Buy-American Act. 

(A) Use the basic provision as 

prescribed in 225.1101(1)(i). 

(B) Use the alternate I provision as 

prescribed in 225.1101(1)(ii). 

(xxiv) Use the clause at 252.225–7001, 

Buy American and Balance of Payments 

Program, to comply with 41 U.S.C. 

chapter 83 and Executive Order 10582 

of December 17, 1954, Prescribing 

Uniform Procedures for Certain 

Determinations Under the BuyAmerican Act. 

(A) Use the basic clause as prescribed 

in 225.1101(2)(ii). 

(B) Use the alternate I clause as 

prescribed in 225.1101(2)(iii). 

* * * * * 

(xlii) * * * 

(B) Use the alternate I provision as 

prescribed in 225.1101(9)(ii). 

(C) Use the alternate II provision as 

prescribed in 225.1101(9)(iii). 

(D) Use the alternate III provision as 

prescribed in 225.1101(9)(iv). 

(E) Use the alternate IV provision as 

prescribed in 225.1101(9)(v). 

(F) Use the alternate V provision as 

prescribed in 225.1101(9)(vi). 

(xliii) * * * 

(B) Use the alternate I clause as 

prescribed in 225.1101(10)(i)(B). 

(C) Use the alternate II clause as 

prescribed in 225.1101(10)(i)(C). 

(D) Use the alternate III clause as 

prescribed in 225.1101(10)(i)(D). 

(E) Use the alternate IV clause as 

prescribed in 225.1101(10)(i)(E). 

(F) Use the alternate V clause as 

prescribed in 225.1101(10)(i)(F). 

* * * * * 

PART 225—FOREIGN ACQUISITION 

■ 3. Amend section 225.1101 by— 

■ a. Revising paragraph (1); 

■ b. In paragraph (2)(i) introductory 

text, removing the phrase ‘‘Use the 

clause’’ and adding ‘‘Use the basic or 

the alternate of the clause’’ in its place; 

■ c. Revising paragraph (2)(i)(B); 

■ d. In paragraph (2)(i)(D) introductory 

text, removing ‘‘One or both of the 

following clauses’’ and adding ‘‘One or 

more of the basic or the alternates of the 

following clauses’’ in its place; 

■ e. Redesignating paragraph (2)(ii) as 

paragraph (2)(iii), and adding a new 

paragraph (2)(ii); 

■ f. Revising the newly redesignated 

paragraph (2)(iii); 

■ g. In paragraph (3) introductory text, 

removing the phrase ‘‘that include one 

of the following clauses:’’ and adding 

‘‘that include the basic or one of the 

alternates of the following clauses:’’ in 

its place; 

■ h. Revising paragraph (5); 

■ i. Redesignating paragraph (6)(i) as 

paragraph (6) introductory text, revising 

the newly redesignated paragraph (6) 

introductory text, and adding a new 

paragraph (6)(i); 

■ j. Revising paragraph (6)(ii); 

■ k. Revising paragraph (6)(iii) 

introductory text; 

■ l. Revising paragraph (9); 

■ m. Revising paragraph (10)(i); and 

■ n. Revising paragraph (10)(ii) 

introductory text. 

The revisions and additions read as 

follows: 

225.1101 Acquisition of supplies. 

(1) Use the basic or the alternate of the 

provision at 252.225–7000, Buy 

American—Balance of Payments 

Program Certificate, instead of the 

provision at FAR 52.225–2, Buy 

American Certificate, in any solicitation, 

including solicitations using FAR part 

12 procedures for the acquisition of 

commercial items, that includes the 

basic or the alternate of the clause at 

252.225–7001, Buy American and 

Balance of Payments Program. If the 

solicitation includes the provision at 

FAR 52.204–7, do not separately list the 

provision 252.225–7000 in the 

solicitation. 

(i) Use the basic provision when the 

solicitation includes the basic clause at 

252.225–7001. 

(ii) Use the alternate I provision when 

the solicitation includes alternate I of 

the clause at 252.225–7001. 

(2)(i) * * * 

(B) All line items require domestic or 

qualifying country end products in 

accordance with subpart 225.70, but 

note that this exception does not apply 

if subpart 225.70 only requires 

manufacture of the end product in the 

United States or in the United States or 

Canada, without a corresponding 

requirement for use of domestic 

components; 

* * * * * 

(ii) Use the basic clause if the 

acquisition is not of end products listed 

in 225.401–70 in support of operations 

in Afghanistan. 

(iii) Use the alternate I clause when 

the acquisition is of end products listed 

in 225.401–70 in support of operations 

in Afghanistan. 

* * * * * 

(5) Use the basic or the alternate of the 

provision at 252.225–7020, Trade 

Agreements Certificate, instead of the 

provision at FAR 52.225–6, Trade 

Agreements Certificate, in solicitations, 

including solicitations using FAR part 

12 procedures for the acquisition of 

commercial items, that include the basic 

or alternate II of the clause at 252.225– 

7021, Trade Agreements. If the 

solicitation includes the provision at 

FAR 52.204–7, do not separately list the 

provision 252.225–7020 in the 

solicitation. 

(i) Use the basic provision if the 

solicitation includes the basic clause at 

252.225–7021. 

(ii) Use the alternate I provision if the 

solicitation includes alternate II of the 

clause at 252.225–7021. 

(6) Except as provided in paragraph 

(6)(iv) of this section, use the basic or an 

alternate of the clause at 252.225–7021, 

Trade Agreements, instead of the clause 

at FAR 52.225–5, Trade Agreements, in 

solicitations and contracts, including 

solicitations and contracts using FAR 

part 12 procedures for the acquisition of 

commercial items, if the World Trade 

Organization Government Procurement 

Agreement applies, i.e., the acquisition 

is of end products listed at 225.401–70, 

the value of the acquisition equals or 

exceeds $204,000, and none of the 

exceptions at 25.401(a) applies. 

(i) Use the basic clause in solicitations 

and contracts that are not of end 

products in support of operations in 

Afghanistan, or that include the clause 

at 252.225–7024, Requirement for 

Products or Services from Afghanistan. 

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65818 Federal Register / Vol. 79, No. 214 / Wednesday, November 5, 2014 / Rules and Regulations 

(ii) Use the alternate II clause in 

solicitations and contracts that do not 

include the clause at 252.225–7024, 

Requirement for Products or Services 

from Afghanistan, when the acquisition 

is of end products in support of 

operations in Afghanistan. 

(iii) Do not use the basic or an 

alternate of the clause if— 

* * * * * 

(9) Use the basic or an alternate of the 

provision at 252.225–7035, Buy 

American—Free Trade Agreements— 

Balance of Payments Program 

Certificate, instead of the provision at 

FAR 52.225–4, Buy American—Free 

Trade Agreements—Israeli Trade Act 

Certificate, in solicitations, including 

solicitations using FAR part 12 

procedures for the acquisition of 

commercial items, that include the basic 

or an alternate of the clause at 252.225– 

7036, Buy American—Free Trade 

Agreements—Balance of Payments 

Program. If the solicitation includes the 

provision at FAR 52.204–7, do not 

separately list the provision 252.225– 

7035 in the solicitation. 

(i) Use the basic provision in 

solicitations when the basic of the 

clause at 252.225–7036 is used. 

(ii) Use the alternate I provision when 

the clause at 252.225–7036 is used with 

its Alternate I. 

(iii) Use the alternate II provision 

when the clause at 252.225–7036 is 

used with its Alternate II. 

(iv) Use the alternate III provision 

when the clause at 252.225–7036 is 

used with its Alternate III. 

(v) Use the alternate IV provision 

when the clause at 252.225–7036 is 

used with its Alternate IV. 

(vi) Use the alternate V provision 

when the clause at 252.225–7036 is 

used with its Alternate V. 

(10)(i) Except as provided in 

paragraph (10)(ii) of this section, use the 

basic or an alternate of the clause at 

252.225–7036, Buy American—Free 

Trade Agreements—Balance of 

Payments Program, instead of the clause 

at FAR 52.225–3, Buy American—Free 

Trade Agreements—Israeli Trade Act, in 

solicitations and contracts, including 

solicitations and contracts using FAR 

part 12 procedures for the acquisition of 

commercial items, for the items listed at 

225.401–70, when the estimated value 

equals or exceeds $25,000, but is less 

than $204,000, unless an exception at 

25.401 applies. 

(A) Use the basic clause in 

solicitations and contracts when the 

estimated value equals or exceeds 

$79,507, except if the acquisition is of 

end products in support of operations in 

Afghanistan. 

(B) Use the alternate I clause in 

solicitations and contracts when the 

estimated value is less than $79,507, 

except if the acquisition is of end 

products in support of operations in 

Afghanistan. 

(C) Use the alternate II clause in 

solicitations and contracts when the 

estimated value equals or exceeds 

$100,000 and the acquisition is of end 

products in support of operations in 

Afghanistan. 

(D) Use the alternate III clause in 

solicitations and contracts when the 

estimated value is less than $79,507 and 

the acquisition is of end products in 

support of operations in Afghanistan. 

(E) Use the alternate IV clause in 

solicitations and contracts when the 

estimated value equals or exceeds 

$79,507 but is less than $100,000, 

except if the acquisition is of end 

products in support of operations in 

Afghanistan. 

(F) Use the alternate V clause in 

solicitations and contracts when the 

estimated value equals or exceeds 

$79,507 but is less than $100,000 and 

the acquisition is of end products in 

support of operations in Afghanistan. 

(ii) Do not use the basic or an 

alternate of the clause in paragraph 

(10)(i) of this section if— 

* * * * * 

■ 4. Revise section 225.7503 to read as 

follows: 

225.7503 Contract clauses. 

Unless the entire acquisition is 

exempt from the Balance of Payments 

Program— 

(a) Use the basic or an alternate of the 

clause at 252.225–7044, Balance of 

Payments Program—Construction 

Material, in solicitations and contracts 

for construction to be performed outside 

the United States, including 

acquisitions of commercial items or 

components, with an estimated value 

greater than the simplified acquisition 

threshold but less than $7,864,000. 

(1) Use the basic clause unless the 

acquisition is in support of operations 

in Afghanistan. 

(2) Use the alternate I clause if the 

acquisition is in support of operations 

in Afghanistan. 

(b) Use the basic or an alternate of the 

clause at 252.225–7045, Balance of 

Payments Program—Construction 

Material Under Trade Agreements, in 

solicitations and contracts for 

construction to be performed outside 

the United States with an estimated 

value of $7,864,000 or more, including 

acquisitions of commercial items or 

components. 

(1) Use the basic clause in 

solicitations and contracts with an 

estimated value of $10,335,931 or more, 

unless the acquisition is in support of 

operations in Afghanistan. 

(2) Use the alternate I clause in 

solicitations and contracts with an 

estimated value of $7,864,000 or more, 

but less than $10,335,931 unless the 

acquisition is in support of operations 

in Afghanistan. 

(3) Use the alternate II clause in 

solicitations and contracts with an 

estimated value of $10,335,931 or more 

and is in support of operations in 

Afghanistan. 

(4) Use the alternate III clause in 

solicitations and contracts with an 

estimated value of $7,864,000 or more, 

but less than $10,335,931, and is in 

support of operations in Afghanistan. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 5. Amend section 252.225–7000 by— 

■ a. Revising the introductory text, 

provision title, and date, and paragraph 

(a); 

■ b. In paragraph (c)(1), removing ‘‘Buy 

American and Balance of Payments 

Program’’ and adding ‘‘Buy American 

and Balance of Payments Program— 

Basic’’ in its place; and 

■ c. Revising Alternate I. 

The revisions read as follows: 

252.225–7000 Buy American—Balance of 

Payments Program Certificate. 

As prescribed in 225.1101(1), use one 

of the following provisions: 

Basic. As prescribed in 225.1101(1)(i), 

use the following provision: 

Buy American—Balance of Payments 

Program Certificate—Basic (Nov 2014) 

(a) Definitions. Commercially available offthe-shelf (COTS) item, component, domestic 

end product, foreign end product, qualifying 

country, qualifying country end product, 

South Caucasus/Central and South Asian 

(SC/CASA) state, South Caucasus/Central 

and South Asian (SC/CASA) state end 

product, and United States, as used in this 

provision, have the meanings given in the 

Buy American and Balance of Payments 

Program—Basic clause of this solicitation. 

* * * * * 

Alternate I. As prescribed in 

225.1101(1)(ii), use the following 

provision, which adds South Caucasus/ 

Central and South Asian (SC/CASA) 

state and South Caucasus/Central and 

South Asian (SC/CASA) state end 

product in paragraph (a), and replaces 

‘‘qualifying country end products’’ in 

paragraphs (b)(2) and (c)(2) with 

‘‘qualifying country end products or SC/ 

CASA state end products’’: 

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Federal Register / Vol. 79, No. 214 / Wednesday, November 5, 2014 / Rules and Regulations 65819 

Buy American—Balance of Payments 

Program Certificate—Alternate I (Nov 

2014) 

(a) Definitions. Commercially available offthe-shelf (COTS) item, component, domestic 

end product, foreign end product, qualifying 

country, qualifying country end product, 

South Caucasus/Central and South Asian 

(SC/CASA) state, South Caucasus/Central 

and South Asian (SC/CASA) state end 

product, and United States, as used in this 

provision, have the meanings given in the 

Buy American and Balance of Payments 

Program—Alternate I clause of this 

solicitation. 

(b) Evaluation. The Government— 

(1) Will evaluate offers in accordance with 

the policies and procedures of part 225 of the 

Defense Federal Acquisition Regulation 

Supplement; and 

(2) Will evaluate offers of qualifying 

country end products or SC/CASA state end 

products without regard to the restrictions of 

the Buy American statute or the Balance of 

Payments Program. 

(c) Certifications and identification of 

country of origin. 

(1) For all line items subject to the Buy 

American and Balance of Payments 

Program—Alternate I clause of this 

solicitation, the offeror certifies that— 

(i) Each end product, except those listed in 

paragraphs (c)(2) or (3) of this provision, is 

a domestic end product; and 

(ii) For end products other than COTS 

items, components of unknown origin are 

considered to have been mined, produced, or 

manufactured outside the United States or a 

qualifying country. 

(2) The offeror certifies that the following 

end products are qualifying country end 

products or SC/CASA state end products: 

Line Item Number 

lllllllllllllllllllll

Country of Origin 

lllllllllllllllllllll

(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 

lllllllllllllllllllll

Country of Origin (If known) 

lllllllllllllllllllll

(End of provision) 

■ 6. Amend section 252.225–7001 by— 

■ a. Revising the introductory text, 

clause title, and date; and 

■ b. Revising Alternate I. 

252.225–7001 Buy American and Balance 

of Payments Program. 

As prescribed in 225.1101(2)(i), use 

one of the following clauses: 

Basic. As prescribed in 

225.1101(2)(ii), use the following clause: 

Buy American and Balance of 

Payments Program—Basic (Nov 2014) 

* * * * * 

Alternate I. As prescribed in 

225.1101(2)(iii), use the following 

clause, which adds South Caucasus/

Central and South Asian (SC/CASA) 

state and South Caucasus/Central and 

South Asian (SC/CASA) state end 

product to paragraph (a), and uses 

different paragraphs (b) and (c) than the 

basic clause: 

Buy American and Balance of 

Payments Program—Alternate I (Nov 

2014) 

(a) Definitions. As used in this clause— 

Commercially available off-the-shelf 

(COTS) item— 

(i) Means any item of supply (including 

construction material) that is— 

(A) A commercial item (as defined in 

paragraph (1) of the definition of 

‘‘commercial item’’ in section 2.101 of the 

Federal Acquisition Regulation); 

(B) Sold in substantial quantities in the 

commercial marketplace; and 

(C) Offered to the Government, under a 

contract or subcontract at any tier, without 

modification, in the same form in which it 

is sold in the commercial marketplace; and 

(ii) Does not include bulk cargo, as defined 

in 46 U.S.C. 40102(4), such as agricultural 

products and petroleum products. 

Component means an article, material, or 

supply incorporated directly into an end 

product. 

Domestic end product means— 

(i) An unmanufactured end product that 

has been mined or produced in the United 

States; or 

(ii) An end product manufactured in the 

United States if— 

(A) The cost of its qualifying country 

components and its components that are 

mined, produced, or manufactured in the 

United States exceeds 50 percent of the cost 

of all its components. The cost of 

components includes transportation costs to 

the place of incorporation into the end 

product and U.S. duty (whether or not a 

duty-free entry certificate is issued). Scrap 

generated, collected, and prepared for 

processing in the United States is considered 

domestic. A component is considered to have 

been mined, produced, or manufactured in 

the United States (regardless of its source in 

fact) if the end product in which it is 

incorporated is manufactured in the United 

States and the component is of a class or kind 

for which the Government has determined 

that— 

(1) Sufficient and reasonably available 

commercial quantities of a satisfactory 

quality are not mined, produced, or 

manufactured in the United States; or 

(2) It is inconsistent with the public 

interest to apply the restrictions of the Buy 

American statute; or 

(B) The end product is a COTS item. 

End product means those articles, 

materials, and supplies to be acquired under 

this contract for public use. 

Foreign end product means an end product 

other than a domestic end product. 

Qualifying country means a country with a 

reciprocal defense procurement 

memorandum of understanding or 

international agreement with the United 

States in which both countries agree to 

remove barriers to purchases of supplies 

produced in the other country or services 

performed by sources of the other country, 

and the memorandum or agreement 

complies, where applicable, with the 

requirements of section 36 of the Arms 

Export Control Act (22 U.S.C. 2776) and with 

10 U.S.C. 2457. Accordingly, the following 

are qualifying countries: 

Australia 

Austria 

Belgium 

Canada 

Czech Republic 

Denmark 

Egypt 

Finland 

France 

Germany 

Greece 

Israel 

Italy 

Luxembourg 

Netherlands 

Norway 

Poland 

Portugal 

Spain 

Sweden 

Switzerland 

Turkey 

United Kingdom of Great Britain and 

Northern Ireland. 

Qualifying country component means a 

component mined, produced, or 

manufactured in a qualifying country. 

Qualifying country end product means— 

(i) An unmanufactured end product mined 

or produced in a qualifying country; or 

(ii) An end product manufactured in a 

qualifying country if— 

(A) The cost of the following types of 

components exceeds 50 percent of the cost of 

all its components: 

(1) Components mined, produced, or 

manufactured in a qualifying country. 

(2) Components mined, produced, or 

manufactured in the United States. 

(3) Components of foreign origin of a class 

or kind for which the Government has 

determined that sufficient and reasonably 

available commercial quantities of a 

satisfactory quality are not mined, produced, 

or manufactured in the United States; or 

(B) The end product is a COTS item. 

South Caucasus/Central and South Asian 

(SC/CASA) state means Armenia, Azerbaijan, 

Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 

Tajikistan, Turkmenistan, or Uzbekistan. 

South Caucasus/Central and South Asian 

(SC/CASA) state end product means an 

article that— 

(i) Is wholly the growth, product, or 

manufacture of an SC/CASA state; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in an SC/CASA state into a new and different 

article of commerce with a name, character, 

or use distinct from that of the article or 

articles from which it was transformed. The 

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term refers to a product offered for purchase 

under a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

United States means the 50 States, the 

District of Columbia, and outlying areas. 

(b) This clause implements the Balance of 

Payments Program. Unless otherwise 

specified, this clause applies to all line items 

in the contract. 

(c) The Contractor shall deliver only 

domestic end products unless, in its offer, it 

specified delivery of other end products in 

the Buy American Balance of Payments 

Program Certificate provision of the 

solicitation. If the Contractor certified in its 

offer that it will deliver a qualifying country 

end product or an SC/CASA state end 

product, the Contractor shall deliver a 

qualifying country end product, an SC/CASA 

state end product, or, at the Contractor’s 

option, a domestic end product. 

(d) The contract price does not include 

duty for end products or components for 

which the Contractor will claim duty-free 

entry. 

(End of clause) 

* * * * * 

■ 7. Amend section 252.225–7013 by— 

■ a. Removing the clause date ‘‘(OCT 

2013)’’ and adding ‘‘(NOV 2014)’’ in its 

place; and 

■ b. In paragraph (a), revising the 

definition for ‘‘Eligible product’’. 

The revision reads as follows: 

252.225–7013 Duty-free entry. 

* * * * * 

(a) * * * 

Eligible product means— 

(i) Designated country end product, as 

defined in the Trade Agreements (either 

basic or alternate) clause of this 

contract; 

(ii) Free Trade Agreement country end 

product, other than a Bahrainian end 

product, a Moroccan end product, a 

Panamanian end product, or a Peruvian 

end product, as defined in the Buy 

American—Free Trade Agreements— 

Balance of Payments Program (either 

basic or alternate II) clause of this 

contract; 

(iii) Canadian end product, as defined 

in the Buy American—Free Trade 

Agreements—Balance of Payments 

Program (either alternate I or alternate 

III) clause of this contract; or 

(iv) Free Trade Agreement country 

end product other than a Bahrainian 

end product, Korean end product, 

Moroccan end product, Panamanian 

end product, or Peruvian end product, 

as defined in the Buy American—Free 

Trade Agreements—Balance of 

Payments Program (either alternate IV or 

alternate V) clause of this contract. 

* * * * * 

■ 8. Amend section 252.225–7020 by— 

■ a. Revising the introductory text, 

provision title, and date; 

■ b. Revising paragraph (a); 

■ c. In paragraph (c)(1), removing 

‘‘Trade Agreements clause’’ and adding 

‘‘Trade Agreements—Basic’’ in its place; 

and 

■ d. Revising Alternate I. 

The revisions read as follows: 

252.225–7020 Trade Agreements 

Certificate. 

As prescribed in 225.1101(5), use one 

of the following provisions: 

Basic. As prescribed in 225.1101(5)(i), 

use the following provision: 

Trade Agreements Certificate—Basic 

(Nov 2014) 

(a) Definitions. Designated country end 

product, nondesignated country end product, 

qualifying country end product, and U.S.- 

made end product, as used in this provision 

have the meanings given in the Trade 

Agreements—Basic clause of this solicitation. 

* * * * * 

Alternate I. As prescribed in 

225.1101(5)(ii), use the following 

provision, which uses different 

paragraphs (a), (b)(2), and (c) than the 

basic clause: 

Trade Agreements Certificate— 

Alternate I (Nov 2014) 

(a) Definitions. Designated country end 

product, nondesignated country end product, 

qualifying country end product, South 

Caucasus/Central and South Asian (SC/

CASA) state, South Caucasus/Central and 

South Asian (SC/CASA) state end product, 

and U.S.-made end product, as used in this 

provision, have the meanings given in the 

Trade Agreements—Alternate I clause of this 

solicitation. 

(b) Evaluation. The Government— 

(1) Will evaluate offers in accordance with 

the policies and procedures of part 225 of the 

Defense Federal Acquisition Regulation 

Supplement; and 

(2) Will consider only offers of end 

products that are U.S.-made, qualifying 

country, SC/CASA state, or designated 

country end products unless— 

(i) There are no offers of such end 

products; 

(ii) The offers of such end products are 

insufficient to fulfill the Government’s 

requirements; or 

(iii) A national interest waiver has been 

granted. 

(c) Certification and identification of 

country of origin. 

(1) For all line items subject to the Trade 

Agreement—Alternate I clause of this 

solicitation, the offeror certifies that each end 

product to be delivered under this contract, 

except those listed in paragraph (c)(2)(ii) of 

this provision, is a U.S.-made, qualifying 

country, SC/CASA state, or designated 

country end product. 

(2)(i) The following supplies are SC/CASA 

state end products: 

(Line Item Number) (Country of Origin) 

(ii) The following are other nondesignated 

country end products: 

(Line Item Number) (Country of Origin) 

(End of provision) 

■ 9. Amend section 252.225–7021 by— 

■ a. Revising the introductory text, 

clause title, and date; and 

■ b. Revising Alternate II. 

The revisions read as follows: 

252.225–7021 Trade agreements. 

As prescribed in 225.1101(6), use one 

of the following clauses: 

Basic. As prescribed in 225.1101(6)(i), 

use the following clause: 

Trade Agreements—Basic (Nov 2014) 

* * * * * 

Alternate II. As prescribed in 

225.1101(6)(ii), use the following clause, 

which (i) adds South Caucasus/Central 

and South Asian (SC/CASA) state and 

South Caucasus/Central and South 

Asian (SC/CASA) state end product to 

paragraph (a); (ii) uses a different 

paragraph (c) than the basic clause; (iii) 

adds a new paragraph (d); and (iv) 

includes paragraphs (e) and (f) which 

are the same paragraphs (d) and (e) of 

the basic clause: 

Trade Agreements—Alternate II (Nov 

2014) 

(a) Definitions. As used in this clause— 

Caribbean Basin country end product— 

(i) Means an article that— 

(A) Is wholly the growth, product, or 

manufacture of a Caribbean Basin country; or 

(B) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in a Caribbean Basin country into a new and 

different article of commerce with a name, 

character, or use distinct from that of the 

article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself; and 

(ii) Excludes products, other than 

petroleum and any product derived from 

petroleum, that are not granted duty-free 

treatment under the Caribbean Basin 

Economic Recovery Act (19 U.S.C. 2703(b)). 

These exclusions presently consist of— 

(A) Textiles, apparel articles, footwear, 

handbags, luggage, flat goods, work gloves, 

leather wearing apparel, and handloomed, 

handmade, or folklore articles that are not 

granted duty-free status in the Harmonized 

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Tariff Schedule of the United States 

(HTSUS); 

(B) Tuna, prepared or preserved in any 

manner in airtight containers; and 

(C) Watches and watch parts (including 

cases, bracelets, and straps) of whatever type, 

including, but not limited to, mechanical, 

quartz digital, or quartz analog, if such 

watches or watch parts contain any material 

that is the product of any country to which 

the HTSUS column 2 rates of duty (HTSUS 

General Note 3(b)) apply. 

Commercially available off-the-shelf 

(COTS) item— 

(i) Means any item of supply (including 

construction material) that is— 

(A) A commercial item (as defined in 

paragraph (1) of the definition of commercial 

item in section 2.101 of the Federal 

Acquisition Regulation); 

(B) Sold in substantial quantities in the 

commercial marketplace; and 

(C) Offered to the Government, under a 

contract or subcontract at any tier, without 

modification, in the same form in which it 

is sold in the commercial marketplace; and 

(ii) Does not include bulk cargo, as defined 

in 46 U.S.C. 40102(4), such as agricultural 

products and petroleum products. 

Component means an article, material, or 

supply incorporated directly into an end 

product. 

Designated country means— 

(i) A World Trade Organization 

Government Procurement Agreement (WTO 

GPA) country (Armenia, Aruba, Austria, 

Belgium, Bulgaria, Canada, Cyprus, Czech 

Republic, Denmark, Estonia, Finland, France, 

Germany, Greece, Hong Kong, Hungary, 

Iceland, Ireland, Israel, Italy, Japan, Korea 

(Republic of), Latvia, Liechtenstein, 

Lithuania, Luxembourg, Malta, Netherlands, 

Norway, Poland, Portugal, Romania, 

Singapore, Slovak Republic, Slovenia, Spain, 

Sweden, Switzerland, Taiwan (known in the 

World Trade Organization as ‘‘the Separate 

Customs Territory of Taiwan, Penghu, 

Kinmen, and Matsu’’ (Chinese Taipei)), or the 

United Kingdom); 

(ii) A Free Trade Agreement country 

(Australia, Bahrain, Canada, Chile, Colombia, 

Costa Rica, Dominican Republic, El Salvador, 

Guatemala, Honduras, Korea (Republic of), 

Mexico, Morocco, Nicaragua, Peru, or 

Singapore); 

(iii) A least developed country 

(Afghanistan, Angola, Bangladesh, Benin, 

Bhutan, Burkina Faso, Burundi, Cambodia, 

Central African Republic, Chad, Comoros, 

Democratic Republic of Congo, Djibouti, East 

Timor, Equatorial Guinea, Eritrea, Ethiopia, 

Gambia, Guinea, Guinea-Bissau, Haiti, 

Kiribati, Laos, Lesotho, Liberia, Madagascar, 

Malawi, Maldives, Mali, Mauritania, 

Mozambique, Nepal, Niger, Rwanda, Samoa, 

Sao Tome and Principe, Senegal, Sierra 

Leone, Solomon Islands, Somalia, Tanzania, 

Togo, Tuvalu, Uganda, Vanuatu, Yemen, or 

Zambia); or 

(iv) A Caribbean Basin country (Antigua 

and Barbuda, Aruba, Bahamas, Barbados, 

Belize, Bonaire, British Virgin Islands, 

Curacao, Dominica, Grenada, Guyana, Haiti, 

Jamaica, Montserrat, Saba, St. Kitts and 

Nevis, St. Lucia, St. Vincent and the 

Grenadines, Sint Eustatius, Sint Maarten, or 

Trinidad and Tobago). 

Designated country end product means a 

WTO GPA country end product, a Free Trade 

Agreement country end product, a least 

developed country end product, or a 

Caribbean Basin country end product. 

End product means those articles, 

materials, and supplies to be acquired under 

this contract for public use. 

Free Trade Agreement country end product 

means an article that— 

(i) Is wholly the growth, product, or 

manufacture of a Free Trade Agreement 

country; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in a Free Trade Agreement country into a 

new and different article of commerce with 

a name, character, or use distinct from that 

of the article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

Least developed country end product 

means an article that— 

(i) Is wholly the growth, product, or 

manufacture of a least developed country; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in a least developed country into a new and 

different article of commerce with a name, 

character, or use distinct from that of the 

article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

Nondesignated country end product means 

any end product that is not a U.S.-made end 

product or a designated country end product. 

Qualifying country means a country with a 

reciprocal defense procurement 

memorandum of understanding or 

international agreement with the United 

States in which both countries agree to 

remove barriers to purchases of supplies 

produced in the other country or services 

performed by sources of the other country, 

and the memorandum or agreement 

complies, where applicable, with the 

requirements of section 36 of the Arms 

Export Control Act (22 U.S.C. 2776) and with 

10 U.S.C. 2457. Accordingly, the following 

are qualifying countries: 

Australia 

Austria 

Belgium 

Canada 

Czech Republic 

Denmark 

Egypt 

Finland 

France 

Germany 

Greece 

Israel 

Italy 

Luxembourg 

Netherlands 

Norway 

Poland 

Portugal 

Spain 

Sweden 

Switzerland 

Turkey 

United Kingdom of Great Britain and 

Northern Ireland. 

Qualifying country end product means— 

(i) An unmanufactured end product mined 

or produced in a qualifying country; or 

(ii) An end product manufactured in a 

qualifying country if— 

(A) The cost of the following types of 

components exceeds 50 percent of the cost of 

all its components: 

(1) Components mined, produced, or 

manufactured in a qualifying country. 

(2) Components mined, produced, or 

manufactured in the United States. 

(3) Components of foreign origin of a class 

or kind for which the Government has 

determined that sufficient and reasonably 

available commercial quantities of a 

satisfactory quality are not mined, produced, 

or manufactured in the United States; or 

(B) The end product is a COTS item. 

South Caucasus/Central and South Asian 

(SC/CASA) state means Armenia, Azerbaijan, 

Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 

Tajikistan, Turkmenistan, or Uzbekistan. 

South Caucasus/Central and South Asian 

(SC/CASA) state end product means an 

article that— 

(i) Is wholly the growth, product, or 

manufacture of an SC/CASA state; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in an SC/CASA state into a new and different 

article of commerce with a name, character, 

or use distinct from that of the article or 

articles from which it was transformed. The 

term refers to a product offered for purchase 

under a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

United States means the 50 States, the 

District of Columbia, and outlying areas. 

U.S.-made end product means an article 

that— 

(i) Is mined, produced, or manufactured in 

the United States; or 

(ii) Is substantially transformed in the 

United States into a new and different article 

of commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. 

WTO GPA country end product means an 

article that— 

(i) Is wholly the growth, product, or 

manufacture of a WTO GPA country; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in a WTO GPA country into a new and 

different article of commerce with a name, 

character, or use distinct from that of the 

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article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

(b) Unless otherwise specified, this clause 

applies to all items in the Schedule. 

(c) The Contractor shall deliver under this 

contract only U.S.-made, qualifying country, 

SC/CASA state, or designated country end 

products unless— 

(1) In its offer, the Contractor specified 

delivery of other nondesignated country end 

products in the Trade Agreements Certificate 

provision of the solicitation; and 

(2)(i) Offers of U.S.-made, qualifying 

country, SC/CASA state, or designated 

country end products from responsive, 

responsible offerors are either not received or 

are insufficient to fill the Government’s 

requirements; or 

(ii) A national interest waiver has been 

granted. 

(d) If the Contractor is from an SC/CASA 

state, the Contractor shall inform its 

government of its participation in this 

acquisition and that it generally will not have 

such opportunity in the future unless its 

government provides reciprocal procurement 

opportunities to U.S. products and services 

and suppliers of such products and services. 

(e) The contract price does not include 

duty for end products or components for 

which the Contractor will claim duty-free 

entry. 

(f) The HTSUS is available on the Internet 

at http://www.usitc.gov/tata/hts/bychapter/

index.htm. The following sections of the 

HTSUS provide information regarding dutyfree 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) 

■ 10. Amend section 252.225–7035 by— 

■ a. Revising the introductory text, 

provision title, and date; 

■ b. In paragraph (a), removing ‘‘Buy 

American—Free Trade Agreements— 

Balance of Payments Program’’ and 

adding ‘‘Buy American—Free Trade 

Agreements—Balance of Payments 

Program—Basic’’ in its place; 

■ c. In paragraph (b)(2), removing ‘‘Free 

Trade Agreements’’ and adding ‘‘Buy 

American—Free Trade Agreements— 

Balance of Payments Program—Basic 

clause of this solicitation’’ in its place; 

■ d. In paragraph (c)(1) introductory 

text, removing ‘‘Buy American—Free 

Trade Agreements—Balance of 

Payments Program’’ and adding ‘‘Buy 

American—Free Trade Agreements— 

Balance of Payments Program—Basic’’ 

in its place; and 

■ e. Revising Alternates I, II, III, IV, and 

V. 

252.225–7035 Buy American—Free Trade 

Agreements—Balance of Payments 

Program Certificate. 

As prescribed in 225.1101(9), use one 

of the following provisions: 

Basic. As prescribed in 225.1101(9)(i), 

use the following provision: 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program Certificate—Basic (Nov 2014) 

* * * * * 

Alternate I. As prescribed in 

225.1101(9)(ii), use the following 

provision, which uses Canadian end 

product in paragraph (a), rather than the 

phrases Bahrainian end product, Free 

Trade Agreement country, Free Trade 

Agreement country end product, 

Moroccan end product, Panamanian 

end product, and Peruvian end products 

in paragraph (a) of the basic provision; 

uses ‘‘Canadian end products’’ in 

paragraphs (b)(2) and (c)(2)(i), rather 

than ‘‘Free Trade Agreement country 

end products other than Bahrainian end 

products, Moroccan end products, 

Panamanian end products, or Peruvian 

end products’’ in paragraphs (b)(2) and 

(c)(2)(ii) of the basic provision; and does 

not use ‘‘Australian or’’ in paragraph 

(c)(2)(i): 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program Certificate—Alternate I (Nov 

2014) 

(a) Definitions. Canadian end product, 

commercially available off-the-shelf (COTS) 

item, component, domestic end product, 

foreign end product, qualifying country end 

product, and United States, as used in this 

provision, have the meanings given in the 

Buy American—Free Trade Agreements— 

Balance of Payments Program—Alternate I 

clause of this solicitation. 

(b) Evaluation. The Government— 

(1) Will evaluate offers in accordance with 

the policies and procedures of part 225 of the 

Defense Federal Acquisition Regulation 

Supplement; and 

(2) For line items subject to the Buy 

American—Free Trade Agreements—Balance 

of Payments Program—Alternate I clause of 

this solicitation, will evaluate offers of 

qualifying country end products or Canadian 

end products without regard to the 

restrictions of the Buy American or the 

Balance of Payments Program. 

(c) Certifications and identification of 

country of origin. 

(1) For all line items subject to the Buy 

American—Free Trade Agreements—Balance 

of Payments Program—Alternate I clause of 

this solicitation, the offeror certifies that— 

(i) Each end product, except the end 

products listed in paragraph (c)(2) of this 

provision, is a domestic end product; and 

(ii) Components of unknown origin are 

considered to have been mined, produced, or 

manufactured outside the United States or a 

qualifying country. 

(2) The offeror shall identify all end 

products that are not domestic end products. 

(i) The offeror certifies that the following 

supplies are qualifying country (except 

Canadian) end products: 

(Line Item Number) (Country of Origin) 

(ii) The offeror certifies that the following 

supplies are Canadian end products: 

(Line Item Number) (Country of Origin) 

(iii) The following supplies are other 

foreign end products, including end products 

manufactured in the United States that do 

not qualify as domestic end products, i.e., an 

end product that is not a COTS item and does 

not meet the component test in paragraph (ii) 

of the definition of domestic end product: 

(Line Item Number) (Country of Origin 

(If known)) 

(End of provision) 

Alternate II. As prescribed in 

225.1101(9)(iii), use the following 

provision, which adds South Caucasus/ 

Central and South Asian (SC/CASA) 

state and South Caucasus/Central and 

South Asian (SC/CASA) state end 

product to paragraph (a), and uses 

different paragraphs (b)(2) and (c)(2)(i) 

than the basic provision: 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program Certificate—Alternate II (Nov 

2014) 

(a) Definitions. Bahrainian end product, 

commercially available off-the-shelf (COTS) 

item, component, domestic end product, Free 

Trade Agreement country, Free Trade 

Agreement country end product, foreign end 

product, Moroccan end product, 

Panamanian end product, Peruvian end 

product, qualifying country end product, 

South Caucasus/Central and South Asian 

(SC/CASA) state, South Caucasus/Central 

and South Asian (SC/CASA) state end 

product, and United States, as used in this 

provision, have the meanings given in the 

Buy American—Free Trade Agreements— 

Balance of Payments Program—Alternate II 

clause of this solicitation. 

(b) Evaluation. The Government— 

(1) Will evaluate offers in accordance with 

the policies and procedures of part 225 of the 

Defense Federal Acquisition Regulation 

Supplement; and 

(2) For line items subject to the Buy 

American—Free Trade Agreements—Balance 

of Payments Program—Alternate II clause of 

this solicitation, will evaluate offers of 

qualifying country end products, SC/CASA 

state end products, or Free Trade Agreement 

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country end products other than Bahrainian 

end products, Moroccan end products, 

Panamanian end products, or Peruvian end 

products without regard to the restrictions of 

the Buy American or the Balance of 

Payments Program. 

(c) Certifications and identification of 

country of origin. 

(1) For all line items subject to the Buy 

American—Free Trade Agreements—Balance 

of Payments Program—Alternate II clause of 

this solicitation, the offeror certifies that— 

(i) Each end product, except the end 

products listed in paragraph (c)(2) of this 

provision, is a domestic end product; and 

(ii) Components of unknown origin are 

considered to have been mined, produced, or 

manufactured outside the United States or a 

qualifying country. 

(2) The offeror shall identify all end 

products that are not domestic end products. 

(i) The offeror certifies that the following 

supplies are qualifying country (except 

Australian or Canadian) or SC/CASA state 

end products: 

(Line Item Number) (Country of Origin) 

(ii) The offeror certifies that the following 

supplies are Free Trade Agreement country 

end products other than Bahrainian end 

products, Moroccan end products, 

Panamanian end products, or Peruvian end 

products: 

(Line Item Number) (Country of Origin) 

(iii) The following supplies are other 

foreign end products, including end products 

manufactured in the United States that do 

not qualify as domestic end products, i.e., an 

end product that is not a COTS item and does 

not meet the component test in paragraph (ii) 

of the definition of domestic end product: 

(Line Item Number) (Country of Origin (If 

known)) 

(End of provision) 

Alternate III. As prescribed in 

225.1101(9)(iv), use the following 

provision, which uses different 

paragraphs (a), (b)(2), (c)(2)(i), and 

(c)(2)(ii) than the basic provision: 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program Certificate—Alternate III (Nov 

2014) 

(a) Definitions. Canadian end product, 

commercially available off-the-shelf (COTS) 

item, domestic end product, foreign end 

product, qualifying country end product, 

South Caucasus/Central and South Asian 

(SC/CASA) state end product, and United 

States, as used in this provision have the 

meanings given in the Buy American—Free 

Trade Agreements—Balance of Payments 

Program—Alternate III clause of this 

solicitation. 

(b) Evaluation. The Government— 

(1) Will evaluate offers in accordance with 

the policies and procedures of part 225 of the 

Defense Federal Acquisition Regulation 

Supplement; and 

(2) For line items subject to the Buy 

American—Free Trade Agreements—Balance 

of Payments Program—Alternate III clause of 

this solicitation, will evaluate offers of 

qualifying country end products, SC/CASA 

state end products, or Canadian end products 

without regard to the restrictions of the Buy 

American or the Balance of Payments 

Program. 

(c) Certifications and identification of 

country of origin. 

(1) For all line items subject to the Buy 

American—Free Trade Agreements—Balance 

of Payments Program—Alternate III clause of 

this solicitation, the offeror certifies that— 

(i) Each end product, except the end 

products listed in paragraph (c)(2) of this 

provision, is a domestic end product; and 

(ii) Components of unknown origin are 

considered to have been mined, produced, or 

manufactured outside the United States or a 

qualifying country. 

(2) The offeror shall identify all end 

products that are not domestic end products. 

(i) The offeror certifies that the following 

supplies are qualifying country (except 

Canadian) or SC/CASA state end products: 

(Line Item Number) (Country of Origin) 

(ii) The offeror certifies that the following 

supplies are Free Trade Agreement country 

end products other than Bahrainian end 

products, Moroccan end products, 

Panamanian end products, or Peruvian end 

products: 

(Line Item Number) (Country of Origin) 

(iii) The following supplies are other 

foreign end products, including end products 

manufactured in the United States that do 

not qualify as domestic end products, i.e., an 

end product that is not a COTS item and does 

not meet the component test in paragraph (ii) 

of the definition of domestic end product: 

(Line Item Number) (Country of Origin (If 

known)) 

(End of provision) 

Alternate IV. As prescribed in 

225.1101(9)(v), use the following 

provision, which adds Korean end 

product to paragraph (a); and uses ‘‘Free 

Trade Agreement country end products 

other than Bahrainian end products, 

Korean end products, Moroccan end 

products, Panamanian end products, or 

Peruvian end products’’ in paragraphs 

(b)(2) and (c)(2)(ii), rather than ‘‘Free 

Trade Agreement country end products 

other than Bahrainian end products, 

Moroccan end products, Panamanian 

end products, or Peruvian end 

products’’ in paragraphs (b)(2) and 

(c)(2)(ii) of the basic provision: 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program Certificate—Alternate IV (Nov 

2014) 

(a) Definitions. Bahrainian end product, 

commercially available off-the-shelf (COTS) 

item, component, domestic end product, Free 

Trade Agreement country, Free Trade 

Agreement country end product, foreign end 

product, Korean end product, Moroccan end 

product, Panamanian end product, Peruvian 

end product, qualifying country end product, 

and United States, as used in this provision, 

have the meanings given in the Buy 

American—Free Trade Agreements—Balance 

of Payments Program—Alternate IV clause of 

this solicitation. 

(b) Evaluation. The Government— 

(1) Will evaluate offers in accordance with 

the policies and procedures of part 225 of the 

Defense Federal Acquisition Regulation 

Supplement; and 

(2) For line items subject to the Buy 

American—Free Trade Agreements—Balance 

of Payments Program—Alternate IV clause of 

this solicitation, will evaluate offers of 

qualifying country end products or Free 

Trade Agreement country end products other 

than Bahrainian end products, Korean end 

products, Moroccan end products, 

Panamanian end products, or Peruvian end 

products without regard to the restrictions of 

the Buy American or the Balance of 

Payments Program. 

(c) Certifications and identification of 

country of origin. 

(1) For all line items subject to the Buy 

American—Free Trade Agreements—Balance 

of Payments Program—Alternate IV clause of 

this solicitation, the offeror certifies that— 

(i) Each end product, except the end 

products listed in paragraph (c)(2) of this 

provision, is a domestic end product; and 

(ii) Components of unknown origin are 

considered to have been mined, produced, or 

manufactured outside the United States or a 

qualifying country. 

(2) The offeror shall identify all end 

products that are not domestic end products. 

(i) The offeror certifies that the following 

supplies are qualifying country (except 

Australian or Canadian) end products: 

(Line Item Number) (Country of Origin) 

(ii) The offeror certifies that the following 

supplies are Free Trade Agreement country 

end products other than Bahrainian end 

products, Korean end products, Moroccan 

end products, Panamanian end products, or 

Peruvian end products: 

(Line Item Number) (Country of Origin) 

(iii) The following supplies are other 

foreign end products, including end products 

manufactured in the United States that do 

not qualify as domestic end products, i.e., an 

end product that is not a COTS item and does 

not meet the component test in paragraph (ii) 

of the definition of domestic end product: 

(Line Item Number) (Country of Origin (If 

known)) 

(End of provision) 

Alternate V. As prescribed in 

225.1101(9)(vi), use the following 

provision, which uses different 

paragraphs (a), (b)(2), (c)(2)(i), and 

(c)(2)(ii) than the basic provision: 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program Certificate—Alternate V (Nov 

2014) 

(a) Definitions. Bahrainian end product, 

commercially available off-the-shelf (COTS) 

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65824 Federal Register / Vol. 79, No. 214 / Wednesday, November 5, 2014 / Rules and Regulations 

item, component, domestic end product, 

‘‘Free Trade Agreement country, Free Trade 

Agreement country end product, foreign end 

product, Korean end product, Moroccan end 

product, Panamanian end product, Peruvian 

end product, qualifying country end product, 

South Caucasus/Central and South Asian 

(SC/CASA) state end product, and United 

States, as used in this provision, have the 

meanings given in the Buy American Act— 

Free Trade Agreements—Balance of 

Payments Program—Alternate V clause of 

this solicitation. 

(b) Evaluation. The Government— 

(1) Will evaluate offers in accordance with 

the policies and procedures of part 225 of the 

Defense Federal Acquisition Regulation 

Supplement; and 

(2) For line items subject to the Buy 

American—Free Trade Agreements—Balance 

of Payments Program—Alternate V clause of 

this solicitation, will evaluate offers of 

qualifying country end products, SC/CASA 

state end products, or Free Trade Agreement 

end products other than Bahrainian end 

products, Korean end products, Moroccan 

end products, Panamanian end products, or 

Peruvian end products without regard to the 

restrictions of the Buy American statute or 

the Balance of Payments Program. 

(c) Certifications and identification of 

country of origin. 

(1) For all line items subject to the Buy 

American—Free Trade Agreements—Balance 

of Payments Program—Alternate V clause of 

this solicitation, the offeror certifies that— 

(i) Each end product, except the end 

products listed in paragraph (c)(2) of this 

provision, is a domestic end product; and 

(ii) Components of unknown origin are 

considered to have been mined, produced, or 

manufactured outside the United States or a 

qualifying country. 

(2) The offeror shall identify all end 

products that are not domestic end products. 

(i) The offeror certifies that the following 

supplies are qualifying country (except 

Australian or Canadian) or SC/CASA state 

end products: 

(Line Item Number) (Country of Origin) 

(ii) The offeror certifies that the following 

supplies are Free Trade Agreement country 

end products other than Bahrainian end 

products, Korean end products, Moroccan 

end products, Panamanian end products, or 

Peruvian end products: 

(Line Item Number) (Country of Origin) 

(iii) The following supplies are other 

foreign end products, including end products 

manufactured in the United States that do 

not qualify as domestic end products, i.e., an 

end product that is not a COTS item and does 

not meet the component test in paragraph (ii) 

of the definition of domestic end product: 

(Line Item Number) (Country of Origin 

(If known)) 

(End of provision) 

■ 11. Amend section 252.225–7036 by— 

■ a. Revising the introductory text, 

clause title, and date; 

■ b. In paragraph (c), removing ‘‘Buy 

American—Free Trade Agreements— 

Balance of Payments Program 

Certificate’’ and adding ‘‘Buy 

American—Free Trade Agreements— 

Balance of Payments Program 

Certificate—Basic’’ in its place; and 

■ c. Revising Alternates I, II, III, IV, and 

V. 

252.225–7036 Buy American—Free Trade 

Agreements—Balance of Payments 

Program. 

As prescribed in 225.1101(10)(i), use 

one of the following clauses: 

Basic. As prescribed in 

225.1101(10)(i)(A), use the following 

clause: 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program—Basic (Nov 2014) 

* * * * * 

Alternate I. As prescribed in 

225.1101(10)(i)(B), use the following 

clause, which adds Canadian end 

product to paragraph (a), and uses a 

different paragraph (c) than the basic 

clause: 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program—Alternate I (Nov 2014) 

(a) Definitions. As used in this clause— 

Bahrainian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Bahrain; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Bahrain into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Canadian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Canada; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Canada into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Commercially available off-the-shelf 

(COTS) item— 

(i) Means any item of supply (including 

construction material) that is— 

(A) A commercial item (as defined in 

paragraph (1) of the definition of commercial 

item in section 2.101 of the Federal 

Acquisition Regulation); 

(B) Sold in substantial quantities in the 

commercial marketplace; and 

(C) Offered to the Government, under a 

contract or subcontract at any tier, without 

modification, in the same form in which it 

is sold in the commercial marketplace; and 

(ii) Does not include bulk cargo, as defined 

in 46 U.S.C. 40102(4), such as agricultural 

products and petroleum products. 

Component means an article, material, or 

supply incorporated directly into an end 

product. 

Domestic end product means— 

(i) An unmanufactured end product that 

has been mined or produced in the United 

States; or 

(ii) An end product manufactured in the 

United States if— 

(A) The cost of its qualifying country 

components and its components that are 

mined, produced, or manufactured in the 

United States exceeds 50 percent of the cost 

of all its components. The cost of 

components includes transportation costs to 

the place of incorporation into the end 

product and U.S. duty (whether or not a 

duty-free entry certificate is issued). Scrap 

generated, collected, and prepared for 

processing in the United States is considered 

domestic. A component is considered to have 

been mined, produced, or manufactured in 

the United States (regardless of its source in 

fact) if the end product in which it is 

incorporated is manufactured in the United 

States and the component is of a class or kind 

for which the Government has determined 

that— 

(1) Sufficient and reasonably available 

commercial quantities of a satisfactory 

quality are not mined, produced, or 

manufactured in the United States; or 

(2) It is inconsistent with the public 

interest to apply the restrictions of the Buy 

American statute; or 

(B) The end product is a COTS item. 

End product means those articles, 

materials, and supplies to be acquired under 

this contract for public use. 

Foreign end product means an end product 

other than a domestic end product. 

Free Trade Agreement country means 

Australia, Bahrain, Canada, Chile, Colombia, 

Costa Rica, Dominican Republic, El Salvador, 

Guatemala, Honduras, Korea (Republic of), 

Mexico, Morocco, Nicaragua, Panama, Peru, 

or Singapore; 

Free Trade Agreement country end product 

means an article that— 

(i) Is wholly the growth, product, or 

manufacture of a Free Trade Agreement 

country; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in a Free Trade Agreement country into a 

new and different article of commerce with 

a name, character, or use distinct from that 

of the article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

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but for purposes of calculating the value of 

the end product includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

Moroccan end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Morocco; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Morocco into a new and different article 

of commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Panamanian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Panama; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Panama into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Peruvian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Peru; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Peru into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Qualifying country means a country with a 

reciprocal defense procurement 

memorandum of understanding or 

international agreement with the United 

States in which both countries agree to 

remove barriers to purchases of supplies 

produced in the other country or services 

performed by sources of the other country, 

and the memorandum or agreement 

complies, where applicable, with the 

requirements of section 36 of the Arms 

Export Control Act (22 U.S.C. 2776) and with 

10 U.S.C. 2457. Accordingly, the following 

are qualifying countries: 

Australia 

Austria 

Belgium 

Canada 

Czech Republic 

Denmark 

Egypt 

Finland 

France 

Germany 

Greece 

Israel 

Italy 

Luxembourg 

Netherlands 

Norway 

Poland 

Portugal 

Spain 

Sweden 

Switzerland 

Turkey 

United Kingdom of Great Britain and 

Northern Ireland. 

Qualifying country component means a 

component mined, produced, or 

manufactured in a qualifying country. 

Qualifying country end product means— 

(i) An unmanufactured end product mined 

or produced in a qualifying country; or 

(ii) An end product manufactured in a 

qualifying country if— 

(A) The cost of the following types of 

components exceeds 50 percent of the cost of 

all its components: 

(1) Components mined, produced, or 

manufactured in a qualifying country. 

(2) Components mined, produced, or 

manufactured in the United States. 

(3) Components of foreign origin of a class 

or kind for which the Government has 

determined that sufficient and reasonably 

available commercial quantities of a 

satisfactory quality are not mined, produced, 

or manufactured in the United States; or 

(B) The end product is a COTS item. 

United States means the 50 States, the 

District of Columbia, and outlying areas. 

(b) Unless otherwise specified, this clause 

applies to all items in the Schedule. 

(c) The Contractor shall deliver under this 

contract only domestic end products unless, 

in its offer, it specified delivery of qualifying 

country, Canadian, or other foreign end 

products in the Buy American—Free Trade 

Agreements—Balance of Payments Program 

Certificate—Alternate I provision of the 

solicitation. If the Contractor certified in its 

offer that it will deliver a qualifying country 

end product or a Canadian end product, the 

Contractor shall deliver a qualifying country 

end product, a Canadian end product, or, at 

the Contractor’s option, a domestic end 

product. 

(d) The contract price does not include 

duty for end products or components for 

which the Contractor will claim duty-free 

entry. 

(End of clause) 

Alternate II. As prescribed in 

225.1101(10)(i)(C), use the following 

clause, which adds South Caucasus/ 

Central and South Asian (SC/CASA) 

state and South Caucasus/Central and 

South Asian (SC/CASA) state end 

product to paragraph (a), and uses a 

different paragraph (c) than the basic 

clause: 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program—Alternate II (Nov 2014) 

(a) Definitions. As used in this clause— 

Bahrainian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Bahrain; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Bahrain into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Commercially available off-the-shelf 

(COTS) item— 

(i) Means any item of supply (including 

construction material) that is— 

(A) A commercial item (as defined in 

paragraph (1) of the definition of commercial 

item in section 2.101 of the Federal 

Acquisition Regulation); 

(B) Sold in substantial quantities in the 

commercial marketplace; and 

(C) Offered to the Government, under a 

contract or subcontract at any tier, without 

modification, in the same form in which it 

is sold in the commercial marketplace; and 

(ii) Does not include bulk cargo, as defined 

in 46 U.S.C. 40102(4), such as agricultural 

products and petroleum products. 

Component means an article, material, or 

supply incorporated directly into an end 

product. 

Domestic end product means— 

(i) An unmanufactured end product that 

has been mined or produced in the United 

States; or 

(ii) An end product manufactured in the 

United States if— 

(A) The cost of its qualifying country 

components and its components that are 

mined, produced, or manufactured in the 

United States exceeds 50 percent of the cost 

of all its components. The cost of 

components includes transportation costs to 

the place of incorporation into the end 

product and U.S. duty (whether or not a 

duty-free entry certificate is issued). Scrap 

generated, collected, and prepared for 

processing in the United States is considered 

domestic. A component is considered to have 

been mined, produced, or manufactured in 

the United States (regardless of its source in 

fact) if the end product in which it is 

incorporated is manufactured in the United 

States and the component is of a class or kind 

for which the Government has determined 

that— 

(1) Sufficient and reasonably available 

commercial quantities of a satisfactory 

quality are not mined, produced, or 

manufactured in the United States; or 

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65826 Federal Register / Vol. 79, No. 214 / Wednesday, November 5, 2014 / Rules and Regulations 

(2) It is inconsistent with the public 

interest to apply the restrictions of the Buy 

American statute; or 

(B) The end product is a COTS item. 

End product means those articles, 

materials, and supplies to be acquired under 

this contract for public use. 

Foreign end product means an end product 

other than a domestic end product. 

Free Trade Agreement country means 

Australia, Bahrain, Canada, Chile, Colombia, 

Costa Rica, Dominican Republic, El Salvador, 

Guatemala, Honduras, Korea (Republic of), 

Mexico, Morocco, Nicaragua, Panama, Peru, 

or Singapore; 

Free Trade Agreement country end product 

means an article that— 

(i) Is wholly the growth, product, or 

manufacture of a Free Trade Agreement 

country; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in a Free Trade Agreement country into a 

new and different article of commerce with 

a name, character, or use distinct from that 

of the article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

Moroccan end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Morocco; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Morocco into a new and different article 

of commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Panamanian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Panama; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Panama into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Peruvian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Peru; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Peru into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Qualifying country means a country with a 

reciprocal defense procurement 

memorandum of understanding or 

international agreement with the United 

States in which both countries agree to 

remove barriers to purchases of supplies 

produced in the other country or services 

performed by sources of the other country, 

and the memorandum or agreement 

complies, where applicable, with the 

requirements of section 36 of the Arms 

Export Control Act (22 U.S.C. 2776) and with 

10 U.S.C. 2457. Accordingly, the following 

are qualifying countries: 

Australia 

Austria 

Belgium 

Canada 

Czech Republic 

Denmark 

Egypt 

Finland 

France 

Germany 

Greece 

Israel 

Italy 

Luxembourg 

Netherlands 

Norway 

Poland 

Portugal 

Spain 

Sweden 

Switzerland 

Turkey 

United Kingdom of Great Britain and 

Northern Ireland. 

Qualifying country component means a 

component mined, produced, or 

manufactured in a qualifying country. 

Qualifying country end product means— 

(i) An unmanufactured end product mined 

or produced in a qualifying country; or 

(ii) An end product manufactured in a 

qualifying country if— 

(A) The cost of the following types of 

components exceeds 50 percent of the cost of 

all its components: 

(1) Components mined, produced, or 

manufactured in a qualifying country. 

(2) Components mined, produced, or 

manufactured in the United States. 

(3) Components of foreign origin of a class 

or kind for which the Government has 

determined that sufficient and reasonably 

available commercial quantities of a 

satisfactory quality are not mined, produced, 

or manufactured in the United States; or 

(B) The end product is a COTS item. 

South Caucasus/Central and South Asian 

(SC/CASA) state means Armenia, Azerbaijan, 

Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 

Tajikistan, Turkmenistan, or Uzbekistan. 

South Caucasus/Central and South Asian 

(SC/CASA) state end product means an 

article that— 

(i) Is wholly the growth, product, or 

manufacture of an SC/CASA state; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in an SC/CASA state into a new and different 

article of commerce with a name, character, 

or use distinct from that of the article or 

articles from which it was transformed. The 

term refers to a product offered for purchase 

under a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

United States means the 50 States, the 

District of Columbia, and outlying areas. 

(b) Unless otherwise specified, this clause 

applies to all items in the Schedule. 

(c) The Contractor shall deliver under this 

contract only domestic end products unless, 

in its offer, it specified delivery of qualifying 

country end products, SC/CASA state end 

products, Free Trade Agreement country end 

products other than Bahrainian end products, 

Moroccan end products, Panamanian end 

products, or Peruvian end products, or other 

foreign end products in the Buy American— 

Free Trade Agreements—Balance of 

Payments Program Certificate—Alternate II 

provision of the solicitation. If the Contractor 

certified in its offer that it will deliver a 

qualifying country end product, SC/CASA 

state end products, or a Free Trade 

Agreement country end product other than a 

Bahrainian end product, a Moroccan end 

product, a Panamanian end product, or a 

Peruvian end product, the Contractor shall 

deliver a qualifying country end product, an 

SC/CASA state end product, a Free Trade 

Agreement country end product other than a 

Bahrainian end product, a Moroccan end 

product, a Panamanian end product, or a 

Peruvian end product or, at the Contractor’s 

option, a domestic end product. 

(d) The contract price does not include 

duty for end products or components for 

which the Contractor will claim duty-free 

entry. 

(End of clause) 

Alternate III. As prescribed in 

225.1101(10)(i)(D), use the following 

clause, which adds Canadian end 

product, South Caucasus/Central and 

South Asian (SC/CASA) state, and 

South Caucasus/Central and South 

Asian (SC/CASA) state end product to 

paragraph (a) and uses a different 

paragraph (c) than the basic clause: 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program—Alternate III (Nov 2014) 

(a) Definitions. As used in this clause— 

Bahrainian end product means an article 

that— 

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(i) Is wholly the growth, product, or 

manufacture of Bahrain; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Bahrain into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Canadian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Canada; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Canada into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Commercially available off-the-shelf 

(COTS) item— 

(i) Means any item of supply (including 

construction material) that is— 

(A) A commercial item (as defined in 

paragraph (1) of the definition of commercial 

item in section 2.101 of the Federal 

Acquisition Regulation); 

(B) Sold in substantial quantities in the 

commercial marketplace; and 

(C) Offered to the Government, under a 

contract or subcontract at any tier, without 

modification, in the same form in which it 

is sold in the commercial marketplace; and 

(ii) Does not include bulk cargo, as defined 

in 46 U.S.C. 40102(4), such as agricultural 

products and petroleum products. 

Component means an article, material, or 

supply incorporated directly into an end 

product. 

Domestic end product means— 

(i) An unmanufactured end product that 

has been mined or produced in the United 

States; or 

(ii) An end product manufactured in the 

United States if— 

(A) The cost of its qualifying country 

components and its components that are 

mined, produced, or manufactured in the 

United States exceeds 50 percent of the cost 

of all its components. The cost of 

components includes transportation costs to 

the place of incorporation into the end 

product and U.S. duty (whether or not a 

duty-free entry certificate is issued). Scrap 

generated, collected, and prepared for 

processing in the United States is considered 

domestic. A component is considered to have 

been mined, produced, or manufactured in 

the United States (regardless of its source in 

fact) if the end product in which it is 

incorporated is manufactured in the United 

States and the component is of a class or kind 

for which the Government has determined 

that— 

(1) Sufficient and reasonably available 

commercial quantities of a satisfactory 

quality are not mined, produced, or 

manufactured in the United States; or 

(2) It is inconsistent with the public 

interest to apply the restrictions of the Buy 

American statute; or 

(B) The end product is a COTS item. 

End product means those articles, 

materials, and supplies to be acquired under 

this contract for public use. 

Foreign end product means an end product 

other than a domestic end product. 

Free Trade Agreement country means 

Australia, Bahrain, Canada, Chile, Colombia, 

Costa Rica, Dominican Republic, El Salvador, 

Guatemala, Honduras, Korea (Republic of), 

Mexico, Morocco, Nicaragua, Panama, Peru, 

or Singapore; 

Free Trade Agreement country end product 

means an article that— 

(i) Is wholly the growth, product, or 

manufacture of a Free Trade Agreement 

country; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in a Free Trade Agreement country into a 

new and different article of commerce with 

a name, character, or use distinct from that 

of the article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

Moroccan end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Morocco; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Morocco into a new and different article 

of commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Panamanian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Panama; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Panama into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Peruvian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Peru; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Peru into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Qualifying country means a country with a 

reciprocal defense procurement 

memorandum of understanding or 

international agreement with the United 

States in which both countries agree to 

remove barriers to purchases of supplies 

produced in the other country or services 

performed by sources of the other country, 

and the memorandum or agreement 

complies, where applicable, with the 

requirements of section 36 of the Arms 

Export Control Act (22 U.S.C. 2776) and with 

10 U.S.C. 2457. Accordingly, the following 

are qualifying countries: 

Australia 

Austria 

Belgium 

Canada 

Czech Republic 

Denmark 

Egypt 

Finland 

France 

Germany 

Greece 

Israel 

Italy 

Luxembourg 

Netherlands 

Norway 

Poland 

Portugal 

Spain 

Sweden 

Switzerland 

Turkey 

United Kingdom of Great Britain and 

Northern Ireland. 

Qualifying country component means a 

component mined, produced, or 

manufactured in a qualifying country. 

Qualifying country end product means— 

(i) An unmanufactured end product mined 

or produced in a qualifying country; or 

(ii) An end product manufactured in a 

qualifying country if— 

(A) The cost of the following types of 

components exceeds 50 percent of the cost of 

all its components: 

(1) Components mined, produced, or 

manufactured in a qualifying country. 

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(2) Components mined, produced, or 

manufactured in the United States. 

(3) Components of foreign origin of a class 

or kind for which the Government has 

determined that sufficient and reasonably 

available commercial quantities of a 

satisfactory quality are not mined, produced, 

or manufactured in the United States; or 

(B) The end product is a COTS item. 

South Caucasus/Central and South Asian 

(SC/CASA) state means Armenia, Azerbaijan, 

Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 

Tajikistan, Turkmenistan, or Uzbekistan. 

South Caucasus/Central and South Asian 

(SC/CASA) state end product means an 

article that— 

(i) Is wholly the growth, product, or 

manufacture of an SC/CASA state; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in an SC/CASA state into a new and different 

article of commerce with a name, character, 

or use distinct from that of the article or 

articles from which it was transformed. The 

term refers to a product offered for purchase 

under a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

United States means the 50 States, the 

District of Columbia, and outlying areas. 

(b) Unless otherwise specified, this clause 

applies to all items in the Schedule. 

(c) The Contractor shall deliver under this 

contract only domestic end products unless, 

in its offer, it specified delivery of qualifying 

country end products, SC/CASA state end 

products, Canadian end products, or other 

foreign end products in the Buy American— 

Free Trade Agreements—Balance of 

Payments Program Certificate—Alternate III 

provision of the solicitation. If the Contractor 

certified in its offer that it will deliver a 

qualifying country end product, SC/CASA 

state end products, or a Canadian end 

product, the Contractor shall deliver a 

qualifying country end product, an SC/CASA 

state end product, a Canadian end product 

or, at the Contractor’s option, a domestic end 

product. 

(d) The contract price does not include 

duty for end products or components for 

which the Contractor will claim duty-free 

entry. 

(End of clause) 

Alternate IV. As prescribed in 

225.1101(10)(i)(E), use the following 

clause, which adds Korean end product 

to paragraph (a), and uses a different 

paragraph (c) than the basic clause: 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program—Alternate IV (Nov 2014) 

(a) Definitions. As used in this clause— 

Bahrainian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Bahrain; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Bahrain into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Commercially available off-the-shelf 

(COTS) item— 

(i) Means any item of supply (including 

construction material) that is— 

(A) A commercial item (as defined in 

paragraph (1) of the definition of commercial 

item in section 2.101 of the Federal 

Acquisition Regulation); 

(B) Sold in substantial quantities in the 

commercial marketplace; and 

(C) Offered to the Government, under a 

contract or subcontract at any tier, without 

modification, in the same form in which it 

is sold in the commercial marketplace; and 

(ii) Does not include bulk cargo, as defined 

in 46 U.S.C. 40102(4), such as agricultural 

products and petroleum products. 

Component means an article, material, or 

supply incorporated directly into an end 

product. 

Domestic end product means— 

(i) An unmanufactured end product that 

has been mined or produced in the United 

States; or 

(ii) An end product manufactured in the 

United States if— 

(A) The cost of its qualifying country 

components and its components that are 

mined, produced, or manufactured in the 

United States exceeds 50 percent of the cost 

of all its components. The cost of 

components includes transportation costs to 

the place of incorporation into the end 

product and U.S. duty (whether or not a 

duty-free entry certificate is issued). Scrap 

generated, collected, and prepared for 

processing in the United States is considered 

domestic. A component is considered to have 

been mined, produced, or manufactured in 

the United States (regardless of its source in 

fact) if the end product in which it is 

incorporated is manufactured in the United 

States and the component is of a class or kind 

for which the Government has determined 

that— 

(1) Sufficient and reasonably available 

commercial quantities of a satisfactory 

quality are not mined, produced, or 

manufactured in the United States; or 

(2) It is inconsistent with the public 

interest to apply the restrictions of the Buy 

American statute; or 

(B) The end product is a COTS item. 

End product means those articles, 

materials, and supplies to be acquired under 

this contract for public use. 

Foreign end product means an end product 

other than a domestic end product. 

Free Trade Agreement country means 

Australia, Bahrain, Canada, Chile, Colombia, 

Costa Rica, Dominican Republic, El Salvador, 

Guatemala, Honduras, Korea (Republic of), 

Mexico, Morocco, Nicaragua, Panama, Peru, 

or Singapore; 

Free Trade Agreement country end product 

means an article that— 

(i) Is wholly the growth, product, or 

manufacture of a Free Trade Agreement 

country; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in a Free Trade Agreement country into a 

new and different article of commerce with 

a name, character, or use distinct from that 

of the article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

Korean end product means an article that— 

(i) Is wholly the growth, product, or 

manufacture of Korea; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Korea (Republic of) into a new and 

different article of commerce with a name, 

character, or use distinct from that of the 

article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product, includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

Moroccan end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Morocco; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Morocco into a new and different article 

of commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Panamanian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Panama; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Panama into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

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Peruvian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Peru; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Peru into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Qualifying country means a country with a 

reciprocal defense procurement 

memorandum of understanding or 

international agreement with the United 

States in which both countries agree to 

remove barriers to purchases of supplies 

produced in the other country or services 

performed by sources of the other country, 

and the memorandum or agreement 

complies, where applicable, with the 

requirements of section 36 of the Arms 

Export Control Act (22 U.S.C. 2776) and with 

10 U.S.C. 2457. Accordingly, the following 

are qualifying countries: 

Australia 

Austria 

Belgium 

Canada 

Czech Republic 

Denmark 

Egypt 

Finland 

France 

Germany 

Greece 

Israel 

Italy 

Luxembourg 

Netherlands 

Norway 

Poland 

Portugal 

Spain 

Sweden 

Switzerland 

Turkey 

United Kingdom of Great Britain and 

Northern Ireland. 

Qualifying country component means a 

component mined, produced, or 

manufactured in a qualifying country. 

Qualifying country end product means— 

(i) An unmanufactured end product mined 

or produced in a qualifying country; or 

(ii) An end product manufactured in a 

qualifying country if— 

(A) The cost of the following types of 

components exceeds 50 percent of the cost of 

all its components: 

(1) Components mined, produced, or 

manufactured in a qualifying country. 

(2) Components mined, produced, or 

manufactured in the United States. 

(3) Components of foreign origin of a class 

or kind for which the Government has 

determined that sufficient and reasonably 

available commercial quantities of a 

satisfactory quality are not mined, produced, 

or manufactured in the United States; or 

(B) The end product is a COTS item. 

United States means the 50 States, the 

District of Columbia, and outlying areas. 

(b) Unless otherwise specified, this clause 

applies to all items in the Schedule. 

(c) The Contractor shall deliver under this 

contract only domestic end products unless, 

in its offer, it specified delivery of qualifying 

country end products, Free Trade Agreement 

country end products other than Bahrainian 

end products, Korean end products, 

Moroccan end products, Panamanian end 

products, or Peruvian end products, or other 

foreign end products in the Buy American— 

Free Trade Agreements—Balance of 

Payments Program Certificate—Alternate IV 

provision of the solicitation. If the Contractor 

certified in its offer that it will deliver a 

qualifying country end product or a Free 

Trade Agreement country end product other 

than a Bahrainian end product, a Korean end 

product, a Moroccan end product, a 

Panamanian end product, or a Peruvian end 

product, the Contractor shall deliver a 

qualifying country end product, a Free Trade 

Agreement country end product other than a 

Bahrainian end product, a Korean end 

product, a Moroccan end product, a 

Panamanian end product, or a Peruvian end 

product, or, at the Contractor’s option, a 

domestic end product. 

(d) The contract price does not include 

duty for end products or components for 

which the Contractor will claim duty-free 

entry. 

(End of clause) 

Alternate V. As prescribed in 

225.1101(10)(i)(F), use the following 

clause, which adds Korean end product, 

South Caucasus/Central and South 

Asian (SC/CASA) state, and South 

Caucasus/Central and South Asian (SC/ 

CASA) state end product to paragraph 

(a), and uses a different paragraph (c) 

than the basic clause: 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program—Alternate V (Nov 2014) 

(a) Definitions. As used in this clause— 

Bahrainian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Bahrain; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Bahrain into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Commercially available off-the-shelf 

(COTS) item— 

(i) Means any item of supply (including 

construction material) that is— 

(A) A commercial item (as defined in 

paragraph (1) of the definition of commercial 

item in section 2.101 of the Federal 

Acquisition Regulation); 

(B) Sold in substantial quantities in the 

commercial marketplace; and 

(C) Offered to the Government, under a 

contract or subcontract at any tier, without 

modification, in the same form in which it 

is sold in the commercial marketplace; and 

(ii) Does not include bulk cargo, as defined 

in 46 U.S.C. 40102(4), such as agricultural 

products and petroleum products. 

Component means an article, material, or 

supply incorporated directly into an end 

product. 

Domestic end product means— 

(i) An unmanufactured end product that 

has been mined or produced in the United 

States; or 

(ii) An end product manufactured in the 

United States if— 

(A) The cost of its qualifying country 

components and its components that are 

mined, produced, or manufactured in the 

United States exceeds 50 percent of the cost 

of all its components. The cost of 

components includes transportation costs to 

the place of incorporation into the end 

product and U.S. duty (whether or not a 

duty-free entry certificate is issued). Scrap 

generated, collected, and prepared for 

processing in the United States is considered 

domestic. A component is considered to have 

been mined, produced, or manufactured in 

the United States (regardless of its source in 

fact) if the end product in which it is 

incorporated is manufactured in the United 

States and the component is of a class or kind 

for which the Government has determined 

that— 

(1) Sufficient and reasonably available 

commercial quantities of a satisfactory 

quality are not mined, produced, or 

manufactured in the United States; or 

(2) It is inconsistent with the public 

interest to apply the restrictions of the Buy 

American statute; or 

(B) The end product is a COTS item. 

End product means those articles, 

materials, and supplies to be acquired under 

this contract for public use. 

Foreign end product means an end product 

other than a domestic end product. 

Free Trade Agreement country means 

Australia, Bahrain, Canada, Chile, Colombia, 

Costa Rica, Dominican Republic, El Salvador, 

Guatemala, Honduras, Korea (Republic of), 

Mexico, Morocco, Nicaragua, Panama, Peru, 

or Singapore; 

Free Trade Agreement country end product 

means an article that— 

(i) Is wholly the growth, product, or 

manufacture of a Free Trade Agreement 

country; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in a Free Trade Agreement country into a 

new and different article of commerce with 

a name, character, or use distinct from that 

of the article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

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but for purposes of calculating the value of 

the end product includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

Korean end product means an article that— 

(i) Is wholly the growth, product, or 

manufacture of Korea; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Korea (Republic of) into a new and 

different article of commerce with a name, 

character, or use distinct from that of the 

article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product, includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

Moroccan end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Morocco; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Morocco into a new and different article 

of commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Panamanian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Panama; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Panama into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Peruvian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Peru; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in Peru into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Qualifying country means a country with a 

reciprocal defense procurement 

memorandum of understanding or 

international agreement with the United 

States in which both countries agree to 

remove barriers to purchases of supplies 

produced in the other country or services 

performed by sources of the other country, 

and the memorandum or agreement 

complies, where applicable, with the 

requirements of section 36 of the Arms 

Export Control Act (22 U.S.C. 2776) and with 

10 U.S.C. 2457. Accordingly, the following 

are qualifying countries: 

Australia 

Austria 

Belgium 

Canada 

Czech Republic 

Denmark 

Egypt 

Finland 

France 

Germany 

Greece 

Israel 

Italy 

Luxembourg 

Netherlands 

Norway 

Poland 

Portugal 

Spain 

Sweden 

Switzerland 

Turkey 

United Kingdom of Great Britain and 

Northern Ireland. 

Qualifying country component means a 

component mined, produced, or 

manufactured in a qualifying country. 

Qualifying country end product means— 

(i) An unmanufactured end product mined 

or produced in a qualifying country; or 

(ii) An end product manufactured in a 

qualifying country if— 

(A) The cost of the following types of 

components exceeds 50 percent of the cost of 

all its components: 

(1) Components mined, produced, or 

manufactured in a qualifying country. 

(2) Components mined, produced, or 

manufactured in the United States. 

(3) Components of foreign origin of a class 

or kind for which the Government has 

determined that sufficient and reasonably 

available commercial quantities of a 

satisfactory quality are not mined, produced, 

or manufactured in the United States; or 

(B) The end product is a COTS item. 

South Caucasus/Central and South Asian 

(SC/CASA) state means Armenia, Azerbaijan, 

Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 

Tajikistan, Turkmenistan, or Uzbekistan. 

South Caucasus/Central and South Asian 

(SC/CASA) state end product means an 

article that— 

(i) Is wholly the growth, product, or 

manufacture of an SC/CASA state; or 

(ii) In the case of an article that consists in 

whole or in part of materials from another 

country, has been substantially transformed 

in an SC/CASA state into a new and different 

article of commerce with a name, character, 

or use distinct from that of the article or 

articles from which it was transformed. The 

term refers to a product offered for purchase 

under a supply contract, but for purposes of 

calculating the value of the end product, 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

United States means the 50 States, the 

District of Columbia, and outlying areas. 

(b) Unless otherwise specified, this clause 

applies to all items in the Schedule. 

(c) The Contractor shall deliver under this 

contract only domestic end products unless, 

in its offer, it specified delivery of qualifying 

country end products, SC/CASA state end 

products, Free Trade Agreement country end 

products other than Bahrainian end products, 

Korean end products, Moroccan end 

products, Panamanian end products, or 

Peruvian end products, or other foreign end 

products in the Buy American—Free Trade 

Agreements—Balance of Payments Program 

Certificate—Alternate V provision of the 

solicitation. If the Contractor certified in its 

offer that it will deliver a qualifying country 

end product, SC/CASA state end products, or 

a Free Trade Agreement country end product 

other than a Bahrainian end product, a 

Korean end product, a Moroccan end 

product, a Panamanian end product, or a 

Peruvian end product, the Contractor shall 

deliver a qualifying country end product, an 

SC/CASA state end product, a Free Trade 

Agreement country end product other than a 

Bahrainian end product, a Korean end 

product, a Moroccan end product, a 

Panamanian end product, or a Peruvian end 

product or, at the Contractor’s option, a 

domestic end product. 

(d) The contract price does not include 

duty for end products or components for 

which the Contractor will claim duty-free 

entry. 

(End of clause) 

■ 12. Amend section 252.225–7044 by— 

■ a. Revising the introductory text, 

clause title, and date; 

■ b. In paragraph (a), redesignating the 

paragraph numbers for— 

■ i. Commercially available off-the shelf 

(COTS) item by redesignating 

paragraphs (1) and (2) as (i) and (ii); and 

in the newly redesignated paragraph (i), 

redesignating paragraphs (i), (ii), and 

(iii) as (i)(A), (B), and (C), respectively; 

■ ii. Cost of components by 

redesignating paragraphs (1) and (2) as 

(i) and (ii), respectively; 

■ iii. Domestic construction material by 

redesignating paragraphs (1) and (2) as 

(i) and (ii); and in the newly 

redesignated paragraph (ii), 

redesignating paragraphs (i) and (ii) as 

(ii)(A) and (B), respectively; and 

■ c. Revising Alternate I. 

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Federal Register / Vol. 79, No. 214 / Wednesday, November 5, 2014 / Rules and Regulations 65831 

252.225–7044 Balance of Payments 

Program—Construction Material. 

As prescribed in 225.7503(a), use one 

of the following clauses: 

Basic. As prescribed in 225.7503(a)(1), 

use the following clause: 

Balance of Payments Program— 

Construction Material—Basic (Nov 

2014) 

* * * * * 

Alternate I. As prescribed in 

225.7503(a)(2), use the following clause, 

which adds definitions for South 

Caucasus/Central and South Asian (SC/ 

CASA) state and SC/CASA state 

construction material to paragraph (a), 

and uses ‘‘domestic construction 

material or SC/CASA state construction 

material’’ instead of ‘‘domestic 

construction material’’ in the second 

sentence of paragraph (b): 

Balance of Payments Program— 

Construction Material—Alternate I 

(Nov 2014) 

(a) Definitions. As used in this clause— 

Commercially available off-the-shelf 

(COTS) item’’— 

(i) Means any item of supply (including 

construction material) that is— 

(A) A commercial item (as defined in 

paragraph (1) of the definition of commercial 

item in section 2.101 of the Federal 

Acquisition Regulation); 

(B) Sold in substantial quantities in the 

commercial marketplace; and 

(C) Offered to the Government, under a 

contract or subcontract at any tier, without 

modification, in the same form in which it 

is sold in the commercial marketplace; and 

(ii) Does not include bulk cargo, as defined 

in 46 U.S.C. 40102(4), such as agricultural 

products and petroleum products. 

Component means any article, material, or 

supply incorporated directly into 

construction material. 

Construction material means an article, 

material, or supply brought to the 

construction site by the Contractor or a 

subcontractor for incorporation into the 

building or work. The term also includes an 

item brought to the site preassembled from 

articles, materials, or supplies. However, 

emergency life safety systems, such as 

emergency lighting, fire alarm, and audio 

evacuation systems, that are discrete systems 

incorporated into a public building or work 

and that are produced as complete systems, 

are evaluated as a single and distinct 

construction material regardless of when or 

how the individual parts or components of 

those systems are delivered to the 

construction site. Materials purchased 

directly by the Government are supplies, not 

construction material. 

Cost of components means— 

(i) For components purchased by the 

Contractor, the acquisition cost, including 

transportation costs to the place of 

incorporation into the end product (whether 

or not such costs are paid to a domestic firm), 

and any applicable duty (whether or not a 

duty-free entry certificate is issued); or 

(ii) For components manufactured by the 

Contractor, all costs associated with the 

manufacture of the component, including 

transportation costs as described in 

paragraph (1) of this definition, plus 

allocable overhead costs, but excluding 

profit. Cost of components does not include 

any costs associated with the manufacture of 

the construction material. 

Domestic construction material means— 

(i) An unmanufactured construction 

material mined or produced in the United 

States; or 

(ii) A construction material manufactured 

in the United States, if— 

(A) The cost of its components mined, 

produced, or manufactured in the United 

States exceeds 50 percent of the cost of all 

its components. Components of foreign origin 

of the same class or kind for which 

nonavailability determinations have been 

made are treated as domestic; or 

(B) The construction material is a COTS 

item. 

South Caucasus/Central and South Asian 

(SC/CASA) state means Armenia, Azerbaijan, 

Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 

Tajikistan, Turkmenistan, or Uzbekistan. 

SC/CASA state construction material 

means construction material that— 

(i) Is wholly the growth, product, or 

manufacture of an SC/CASA state; or 

(ii) In the case of a construction material 

that consists in whole or in part of materials 

from another country, has been substantially 

transformed in an SC/CASA state into a new 

and different construction material distinct 

from the material from which it was 

transformed. 

United States means the 50 States, the 

District of Columbia, and outlying areas. 

(b) Domestic preference. This clause 

implements the Balance of Payments 

Program by providing a preference for 

domestic construction material. The 

Contractor shall use only domestic 

construction material or SC/CASA state 

construction material in performing this 

contract, except for— 

(1) Construction material valued at or 

below the simplified acquisition threshold in 

part 2 of the Federal Acquisition Regulation; 

(2) Information technology that is a 

commercial item; or 

(3) The construction material or 

components listed by the Government as 

follows: 

lllllllllllllllllllll

[Contracting Officer to list applicable 

excepted materials or indicate ‘‘none’’]. 

(End of clause) 

■ 13. Amend section 252.225–7045 by— 

■ a. Revising the introductory text, 

clause title, and date; 

■ b. In paragraph (a), redesignating the 

paragraph numbers for— 

■ i. Caribbean Basin country 

construction material by redesignating 

paragraphs (1) and (2) as (i) and (ii), 

respectively; 

■ ≤ii. Commercially available off-theshelf (COTS) item by redesignating 

paragraphs (1) and (2) as (i) and (ii); and 

in the newly redesignated paragraph (i), 

redesignating paragraphs (i), (ii), and 

(iii) as (i)(A), (B), and (C), respectively; 

■ iii. Cost of components by 

redesignating paragraphs (1) and (2) as 

(i) and (ii), respectively; 

■ iv. Designated country by 

redesignating paragraphs (1) through (4) 

as (i) through (iv), respectively; 

■ v. Domestic construction material by 

redesignating paragraphs (1) and (2) as 

(i) and (ii); and in the newly 

redesignated paragraph (ii) 

redesignating paragraphs (i) and (ii) as 

(ii)(A) and (B); 

■ vi. Free Trade Agreement country 

construction material by redesignating 

paragraphs (1) and (2) as (i) and (ii); 

■ vii. Least developed country 

construction material by redesignating 

paragraphs (1) and (2) as (i) and (ii); 

■ viii. WTO GPA country construction 

material by redesignating paragraphs (1) 

and (2) as (i) and (ii); and 

■ c. Revising Alternates I, II, and III. 

252.225–7045 Balance of Payments 

Program—Construction Material Under 

Trade Agreements. 

As prescribed in 225.7503(b), use one 

of the following clauses: 

Basic. As prescribed in 

225.7503(b)(1), use the following clause: 

Balance of Payments Program— 

Construction Material Under Trade 

Agreements—Basic (Nov 2014) 

* * * * * 

Alternate I. As prescribed in 

225.7503(b)(2), use the following clause, 

which adds Bahrainian or Mexican 

construction material to paragraph (a), 

and uses a different paragraph (b) and 

(c) than the basic clause: 

Balance of Payments Program— 

Construction Material Under Trade 

Agreements—Alternate I (Nov 2014) 

(a) Definitions. As used in this clause— 

Bahrainian or Mexican construction 

material means a construction material that— 

(i) Is wholly the growth, product, or 

manufacture of Bahrain or Mexico; or 

(ii) In the case of a construction material 

that consists in whole or in part of materials 

from another country, has been substantially 

transformed in Bahrain or Mexico into a new 

and different construction material distinct 

from the materials from which it was 

transformed. 

Caribbean Basin country construction 

material means a construction material that— 

(i) Is wholly the growth, product, or 

manufacture of a Caribbean Basin country; or 

(ii) In the case of a construction material 

that consists in whole or in part of materials 

from another country, has been substantially 

transformed in a Caribbean Basin country 

into a new and different construction 

material distinct from the materials from 

which it was transformed. 

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65832 Federal Register / Vol. 79, No. 214 / Wednesday, November 5, 2014 / Rules and Regulations 

Commercially available off-the-shelf 

(COTS) item— 

(i) Means any item of supply (including 

construction material) that is— 

(A) A commercial item (as defined in 

paragraph (1) of the definition of commercial 

item in section 2.101 of the Federal 

Acquisition Regulation); 

(B) Sold in substantial quantities in the 

commercial marketplace; and 

(C) Offered to the Government, under a 

contract or subcontract at any tier, without 

modification, in the same form in which it 

is sold in the commercial marketplace; and 

(ii) Does not include bulk cargo, as defined 

in section 3 of the Shipping Act of 1984 (46 

U.S.C. 40102), such as agricultural products 

and petroleum products. 

Component means any article, material, or 

supply incorporated directly into 

construction material. 

Construction material means an article, 

material, or supply brought to the 

construction site by the Contractor or a 

subcontractor for incorporation into the 

building or work. The term also includes an 

item brought to the site preassembled from 

articles, materials, or supplies. However, 

emergency life safety systems, such as 

emergency lighting, fire alarm, and audio 

evacuation systems, that are discrete systems 

incorporated into a public building or work 

and that are produced as complete systems, 

are evaluated as a single and distinct 

construction material regardless of when or 

how the individual parts or components of 

those systems are delivered to the 

construction site. Materials purchased 

directly by the Government are supplies, not 

construction material. 

Cost of components means— 

(i) For components purchased by the 

Contractor, the acquisition cost, including 

transportation costs to the place of 

incorporation into the end product (whether 

or not such costs are paid to a domestic firm), 

and any applicable duty (whether or not a 

duty-free entry certificate is issued); or 

(ii) For components manufactured by the 

Contractor, all costs associated with the 

manufacture of the component, including 

transportation costs as described in 

paragraph (1) of this definition, plus 

allocable overhead costs, but excluding 

profit. Cost of components does not include 

any costs associated with the manufacture of 

the construction material. 

Designated country means— 

(i) A World Trade Organization 

Government Procurement Agreement (WTO 

GPA) country (Armenia, Aruba, Austria, 

Belgium, Bulgaria, Canada, Croatia, Cyprus, 

Czech Republic, Denmark, Estonia, Finland, 

France, Germany, Greece, Hong Kong, 

Hungary, Iceland, Ireland, Israel, Italy, Japan, 

Korea (Republic of), Latvia, Liechtenstein, 

Lithuania, Luxembourg, Malta, Netherlands, 

Norway, Poland, Portugal, Romania, 

Singapore, Slovak Republic, Slovenia, Spain, 

Sweden, Switzerland, Taiwan (known in the 

World Trade Organization as ‘‘the Separate 

Customs Territory of Taiwan, Penghu, 

Kinmen, and Matsu’’ (Chinese Taipei)), or the 

United Kingdom); 

(ii) A Free Trade Agreement country 

(Australia, Bahrain, Canada, Chile, Colombia, 

Costa Rica, Dominican Republic, El Salvador, 

Guatemala, Honduras, Korea (Republic of), 

Mexico, Morocco, Nicaragua, Panama, Peru, 

or Singapore); 

(iii) A least developed country 

(Afghanistan, Angola, Bangladesh, Benin, 

Bhutan, Burkina Faso, Burundi, Cambodia, 

Central African Republic, Chad, Comoros, 

Democratic Republic of Congo, Djibouti, 

Equatorial Guinea, Eritrea, Ethiopia, Gambia, 

Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, 

Lesotho, Liberia, Madagascar, Malawi, Mali, 

Mauritania, Mozambique, Nepal, Niger, 

Rwanda, Samoa, Sao Tome and Principe, 

Senegal, Sierra Leone, Solomon Islands, 

Somalia, South Sudan, Tanzania, TimorLeste, Togo, Tuvalu, Uganda, Vanuatu, 

Yemen, or Zambia); or 

(iv) A Caribbean Basin country (Antigua 

and Barbuda, Aruba, Bahamas, Barbados, 

Belize, Bonaire, British Virgin Islands, 

Curacao, Dominica, Grenada, Guyana, Haiti, 

Jamaica, Montserrat, Saba, St. Kitts and 

Nevis, St. Lucia, St. Vincent and the 

Grenadines, Sint Eustatius, Sint Maarten, or 

Trinidad and Tobago). 

Designated country construction material 

means a construction material that is a WTO 

GPA country construction material, a Free 

Trade Agreement country construction 

material, a least developed country 

construction material, or a Caribbean Basin 

country construction material. 

Domestic construction material means— 

(i) An unmanufactured construction 

material mined or produced in the United 

States; or 

(ii) A construction material manufactured 

in the United States, if— 

(A) The cost of its components mined, 

produced, or manufactured in the United 

States exceeds 50 percent of the cost of all 

its components. Components of foreign origin 

of the same class or kind for which 

nonavailability determinations have been 

made are treated as domestic; or 

(B) The construction material is a COTS 

item. 

Free Trade Agreement country 

construction material means a construction 

material that— 

(i) Is wholly the growth, product, or 

manufacture of a Free Trade Agreement 

country; or 

(ii) In the case of a construction material 

that consists in whole or in part of materials 

from another country, has been substantially 

transformed in a Free Trade Agreement 

country into a new and different construction 

material distinct from the material from 

which it was transformed. 

Least developed country construction 

material means a construction material that— 

(i) Is wholly the growth, product, or 

manufacture of a least developed country; or 

(ii) In the case of a construction material 

that consists in whole or in part of materials 

from another country, has been substantially 

transformed in a least developed country into 

a new and different construction material 

distinct from the materials from which it was 

transformed. 

United States means the 50 States, the 

District of Columbia, and outlying areas. 

WTO GPA country construction material 

means a construction material that— 

(i) Is wholly the growth, product, or 

manufacture of a WTO GPA country; or 

(ii) In the case of a construction material 

that consists in whole or in part of materials 

from another country, has been substantially 

transformed in a WTO GPA country into a 

new and different construction material 

distinct from the materials from which it was 

transformed. 

(b) This clause implements the Balance of 

Payments Program by providing a preference 

for domestic construction material. In 

addition, the Contracting Officer has 

determined that the WTO GPA and all Free 

Trade Agreements except NAFTA and the 

Bahrain Free Trade Agreement apply to this 

acquisition. Therefore, the Balance of 

Payments Program restrictions are waived for 

designated country construction material 

other than Bahrainian or Mexican 

construction material. 

(c) The Contractor shall use only domestic 

or designated country construction material 

other than Bahrainian or Mexican 

construction material in performing this 

contract, except for— 

(1) Construction material valued at or 

below the simplified acquisition threshold in 

part 2 of the Federal Acquisition Regulation; 

or 

(2) Information technology that is a 

commercial item; or 

(3) The construction material or 

components listed by the Government as 

follows: 

lllllllllllllllllllll

[Contracting Officer to list applicable 

excepted materials or indicate ‘‘none’’]. 

(End of clause) 

Alternate II. As prescribed in 

225.7503(b)(3), use the following clause, 

which adds South Caucasus/Central 

and South Asian (SC/CASA) state and 

SC/CASA state construction material to 

paragraph (a), uses a different paragraph 

(b) and introductory text for paragraph 

(c) than the basic clause, and adds 

paragraph (d): 

Balance of Payments Program— 

Construction Material Under Trade 

Agreements—Alternate II (Nov 2014) 

(a) Definitions. As used in this clause— 

Caribbean Basin country construction 

material means a construction material that— 

(i) Is wholly the growth, product, or 

manufacture of a Caribbean Basin country; or 

(ii) In the case of a construction material 

that consists in whole or in part of materials 

from another country, has been substantially 

transformed in a Caribbean Basin country 

into a new and different construction 

material distinct from the materials from 

which it was transformed. 

Commercially available off-the-shelf 

(COTS) item— 

(i) Means any item of supply (including 

construction material) that is— 

(A) A commercial item (as defined in 

paragraph (1) of the definition of commercial 

item in section 2.101 of the Federal 

Acquisition Regulation); 

(B) Sold in substantial quantities in the 

commercial marketplace; and 

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Federal Register / Vol. 79, No. 214 / Wednesday, November 5, 2014 / Rules and Regulations 65833 

(C) Offered to the Government, under a 

contract or subcontract at any tier, without 

modification, in the same form in which it 

is sold in the commercial marketplace; and 

(ii) Does not include bulk cargo, as defined 

in section 3 of the Shipping Act of 1984 (46 

U.S.C. 40102), such as agricultural products 

and petroleum products. 

Component means any article, material, or 

supply incorporated directly into 

construction material. 

Construction material means an article, 

material, or supply brought to the 

construction site by the Contractor or a 

subcontractor for incorporation into the 

building or work. The term also includes an 

item brought to the site preassembled from 

articles, materials, or supplies. However, 

emergency life safety systems, such as 

emergency lighting, fire alarm, and audio 

evacuation systems, that are discrete systems 

incorporated into a public building or work 

and that are produced as complete systems, 

are evaluated as a single and distinct 

construction material regardless of when or 

how the individual parts or components of 

those systems are delivered to the 

construction site. Materials purchased 

directly by the Government are supplies, not 

construction material. 

Cost of components means— 

(i) For components purchased by the 

Contractor, the acquisition cost, including 

transportation costs to the place of 

incorporation into the end product (whether 

or not such costs are paid to a domestic firm), 

and any applicable duty (whether or not a 

duty-free entry certificate is issued); or 

(ii) For components manufactured by the 

Contractor, all costs associated with the 

manufacture of the component, including 

transportation costs as described in 

paragraph (1) of this definition, plus 

allocable overhead costs, but excluding 

profit. Cost of components does not include 

any costs associated with the manufacture of 

the construction material. 

Designated country means— 

(i) A World Trade Organization 

Government Procurement Agreement (WTO 

GPA) country (Armenia, Aruba, Austria, 

Belgium, Bulgaria, Canada, Croatia, Cyprus, 

Czech Republic, Denmark, Estonia, Finland, 

France, Germany, Greece, Hong Kong, 

Hungary, Iceland, Ireland, Israel, Italy, Japan, 

Korea (Republic of), Latvia, Liechtenstein, 

Lithuania, Luxembourg, Malta, Netherlands, 

Norway, Poland, Portugal, Romania, 

Singapore, Slovak Republic, Slovenia, Spain, 

Sweden, Switzerland, Taiwan (known in the 

World Trade Organization as ‘‘the Separate 

Customs Territory of Taiwan, Penghu, 

Kinmen, and Matsu’’ (Chinese Taipei)), or the 

United Kingdom); 

(ii) A Free Trade Agreement country 

(Australia, Bahrain, Canada, Chile, Colombia, 

Costa Rica, Dominican Republic, El Salvador, 

Guatemala, Honduras, Korea (Republic of), 

Mexico, Morocco, Nicaragua, Panama, Peru, 

or Singapore); 

(iii) A least developed country 

(Afghanistan, Angola, Bangladesh, Benin, 

Bhutan, Burkina Faso, Burundi, Cambodia, 

Central African Republic, Chad, Comoros, 

Democratic Republic of Congo, Djibouti, 

Equatorial Guinea, Eritrea, Ethiopia, Gambia, 

Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, 

Lesotho, Liberia, Madagascar, Malawi, Mali, 

Mauritania, Mozambique, Nepal, Niger, 

Rwanda, Samoa, Sao Tome and Principe, 

Senegal, Sierra Leone, Solomon Islands, 

Somalia, South Sudan, Tanzania, TimorLeste, Togo, Tuvalu, Uganda, Vanuatu, 

Yemen, or Zambia); or 

(iv) A Caribbean Basin country (Antigua 

and Barbuda, Aruba, Bahamas, Barbados, 

Belize, Bonaire, British Virgin Islands, 

Curacao, Dominica, Grenada, Guyana, Haiti, 

Jamaica, Montserrat, Saba, St. Kitts and 

Nevis, St. Lucia, St. Vincent and the 

Grenadines, Sint Eustatius, Sint Maarten, or 

Trinidad and Tobago). 

Designated country construction material 

means a construction material that is a WTO 

GPA country construction material, a Free 

Trade Agreement country construction 

material, a least developed country 

construction material, or a Caribbean Basin 

country construction material. 

Domestic construction material means— 

(i) An unmanufactured construction 

material mined or produced in the United 

States; or 

(ii) A construction material manufactured 

in the United States, if— 

(A) The cost of its components mined, 

produced, or manufactured in the United 

States exceeds 50 percent of the cost of all 

its components. Components of foreign origin 

of the same class or kind for which 

nonavailability determinations have been 

made are treated as domestic; or 

(B) The construction material is a COTS 

item. 

Free Trade Agreement country 

construction material means a construction 

material that— 

(i) Is wholly the growth, product, or 

manufacture of a Free Trade Agreement 

country; or 

(ii) In the case of a construction material 

that consists in whole or in part of materials 

from another country, has been substantially 

transformed in a Free Trade Agreement 

country into a new and different construction 

material distinct from the material from 

which it was transformed. 

Least developed country construction 

material means a construction material that— 

(i) Is wholly the growth, product, or 

manufacture of a least developed country; or 

(ii) In the case of a construction material 

that consists in whole or in part of materials 

from another country, has been substantially 

transformed in a least developed country into 

a new and different construction material 

distinct from the materials from which it was 

transformed. 

South Caucasus/Central and South Asian 

(SC/CASA) state means Armenia, Azerbaijan, 

Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 

Tajikistan, Turkmenistan, or Uzbekistan. 

SC/CASA state construction material 

means construction material that— 

(i) Is wholly the growth, product, or 

manufacture of an SC/CASA state; or 

(ii) In the case of a construction material 

that consists in whole or in part of materials 

from another country, has been substantially 

transformed in an SC/CASA state into a new 

and different construction material distinct 

from the material from which it was 

transformed. 

United States means the 50 States, the 

District of Columbia, and outlying areas. 

WTO GPA country construction material 

means a construction material that— 

(i) Is wholly the growth, product, or 

manufacture of a WTO GPA country; or 

(ii) In the case of a construction material 

that consists in whole or in part of materials 

from another country, has been substantially 

transformed in a WTO GPA country into a 

new and different construction material 

distinct from the materials from which it was 

transformed. 

(b) This clause implements the Balance of 

Payments Program by providing a preference 

for domestic construction material. In 

addition, the Contracting Officer has 

determined that the WTO GPA, Free Trade 

Agreements, and other waivers relating to 

acquisitions in support of operations in 

Afghanistan apply to this acquisition. 

Therefore, the Balance of Payments Program 

restrictions are waived for SC/CASA state 

and designated country construction 

materials. 

(c) The Contractor shall use only domestic, 

SC/CASA state, or designated country 

construction material in performing this 

contract, except for— 

(1) Construction material valued at or 

below the simplified acquisition threshold in 

part 2 of the Federal Acquisition Regulation; 

(2) Information technology that is a 

commercial item; or 

(3) The construction material or 

components listed by the Government as 

follows: 

lllllllllllllllllllll

[Contracting Officer to list applicable 

excepted materials or indicate ‘‘none’’]. 

(d) If the Contractor is from an SC/CASA 

state, the Contractor shall inform its 

government of its participation in this 

acquisition and that it generally will not have 

such opportunity in the future unless its 

government provides reciprocal procurement 

opportunities to U.S. products and services 

and suppliers of such products and services. 

(End of clause) 

Alternate III. As prescribed in 

225.7503(b)(4), use the following clause, 

which adds South Caucasus/Central 

and South Asian (SC/CASA state and 

SC/CASA state construction material to 

paragraph (a), uses a different paragraph 

(b) and introductory text for paragraph 

(c) than the basic clause, and adds 

paragraph (d): 

Balance of Payments Program— 

Construction Material Under Trade 

Agreements—Alternate III (Nov 2014) 

(a) Definitions. As used in this clause— 

Caribbean Basin country construction 

material means a construction material that— 

(i) Is wholly the growth, product, or 

manufacture of a Caribbean Basin country; or 

(ii) In the case of a construction material 

that consists in whole or in part of materials 

from another country, has been substantially 

transformed in a Caribbean Basin country 

into a new and different construction 

material distinct from the materials from 

which it was transformed. 

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65834 Federal Register / Vol. 79, No. 214 / Wednesday, November 5, 2014 / Rules and Regulations 

Commercially available off-the-shelf 

(COTS) item— 

(i) Means any item of supply (including 

construction material) that is— 

(A) A commercial item (as defined in 

paragraph (1) of the definition of commercial 

item in section 2.101 of the Federal 

Acquisition Regulation); 

(B) Sold in substantial quantities in the 

commercial marketplace; and 

(C) Offered to the Government, under a 

contract or subcontract at any tier, without 

modification, in the same form in which it 

is sold in the commercial marketplace; and 

(ii) Does not include bulk cargo, as defined 

in section 3 of the Shipping Act of 1984 (46 

U.S.C. 40102), such as agricultural products 

and petroleum products. 

Component means any article, material, or 

supply incorporated directly into 

construction material. 

Construction material means an article, 

material, or supply brought to the 

construction site by the Contractor or a 

subcontractor for incorporation into the 

building or work. The term also includes an 

item brought to the site preassembled from 

articles, materials, or supplies. However, 

emergency life safety systems, such as 

emergency lighting, fire alarm, and audio 

evacuation systems, that are discrete systems 

incorporated into a public building or work 

and that are produced as complete systems, 

are evaluated as a single and distinct 

construction material regardless of when or 

how the individual parts or components of 

those systems are delivered to the 

construction site. Materials purchased 

directly by the Government are supplies, not 

construction material. 

Cost of components means— 

(i) For components purchased by the 

Contractor, the acquisition cost, including 

transportation costs to the place of 

incorporation into the end product (whether 

or not such costs are paid to a domestic firm), 

and any applicable duty (whether or not a 

duty-free entry certificate is issued); or 

(ii) For components manufactured by the 

Contractor, all costs associated with the 

manufacture of the component, including 

transportation costs as described in 

paragraph (1) of this definition, plus 

allocable overhead costs, but excluding 

profit. Cost of components does not include 

any costs associated with the manufacture of 

the construction material. 

Designated country means— 

(i) A World Trade Organization 

Government Procurement Agreement (WTO 

GPA) country (Armenia, Aruba, Austria, 

Belgium, Bulgaria, Canada, Croatia, Cyprus, 

Czech Republic, Denmark, Estonia, Finland, 

France, Germany, Greece, Hong Kong, 

Hungary, Iceland, Ireland, Israel, Italy, Japan, 

Korea (Republic of), Latvia, Liechtenstein, 

Lithuania, Luxembourg, Malta, Netherlands, 

Norway, Poland, Portugal, Romania, 

Singapore, Slovak Republic, Slovenia, Spain, 

Sweden, Switzerland, Taiwan (known in the 

World Trade Organization as ‘‘the Separate 

Customs Territory of Taiwan, Penghu, 

Kinmen, and Matsu’’ (Chinese Taipei)), or the 

United Kingdom); 

(ii) A Free Trade Agreement country 

(Australia, Bahrain, Canada, Chile, Colombia, 

Costa Rica, Dominican Republic, El Salvador, 

Guatemala, Honduras, Korea (Republic of), 

Mexico, Morocco, Nicaragua, Panama, Peru, 

or Singapore); 

(iii) A least developed country 

(Afghanistan, Angola, Bangladesh, Benin, 

Bhutan, Burkina Faso, Burundi, Cambodia, 

Central African Republic, Chad, Comoros, 

Democratic Republic of Congo, Djibouti, 

Equatorial Guinea, Eritrea, Ethiopia, Gambia, 

Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, 

Lesotho, Liberia, Madagascar, Malawi, Mali, 

Mauritania, Mozambique, Nepal, Niger, 

Rwanda, Samoa, Sao Tome and Principe, 

Senegal, Sierra Leone, Solomon Islands, 

Somalia, South Sudan, Tanzania, TimorLeste, Togo, Tuvalu, Uganda, Vanuatu, 

Yemen, or Zambia); or 

(iv) A Caribbean Basin country (Antigua 

and Barbuda, Aruba, Bahamas, Barbados, 

Belize, Bonaire, British Virgin Islands, 

Curacao, Dominica, Grenada, Guyana, Haiti, 

Jamaica, Montserrat, Saba, St. Kitts and 

Nevis, St. Lucia, St. Vincent and the 

Grenadines, Sint Eustatius, Sint Maarten, or 

Trinidad and Tobago). 

Designated country construction material 

means a construction material that is a WTO 

GPA country construction material, a Free 

Trade Agreement country construction 

material, a least developed country 

construction material, or a Caribbean Basin 

country construction material. 

Domestic construction material means— 

(i) An unmanufactured construction 

material mined or produced in the United 

States; or 

(ii) A construction material manufactured 

in the United States, if— 

(A) The cost of its components mined, 

produced, or manufactured in the United 

States exceeds 50 percent of the cost of all 

its components. Components of foreign origin 

of the same class or kind for which 

nonavailability determinations have been 

made are treated as domestic; or 

(B) The construction material is a COTS 

item. 

Free Trade Agreement country 

construction material means a construction 

material that— 

(i) Is wholly the growth, product, or 

manufacture of a Free Trade Agreement 

country; or 

(ii) In the case of a construction material 

that consists in whole or in part of materials 

from another country, has been substantially 

transformed in a Free Trade Agreement 

country into a new and different construction 

material distinct from the material from 

which it was transformed. 

Least developed country construction 

material means a construction material that— 

(i) Is wholly the growth, product, or 

manufacture of a least developed country; or 

(ii) In the case of a construction material 

that consists in whole or in part of materials 

from another country, has been substantially 

transformed in a least developed country into 

a new and different construction material 

distinct from the materials from which it was 

transformed. 

South Caucasus/Central and South Asian 

(SC/CASA) state means Armenia, Azerbaijan, 

Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 

Tajikistan, Turkmenistan, or Uzbekistan. 

SC/CASA state construction material 

means construction material that— 

(i) Is wholly the growth, product, or 

manufacture of An SC/CASA state; or 

(ii) In the case of a construction material 

that consists in whole or in part of materials 

from another country, has been substantially 

transformed in an SC/CASA state into a new 

and different construction material distinct 

from the material from which it was 

transformed. 

United States means the 50 States, the 

District of Columbia, and outlying areas. 

WTO GPA country construction material 

means a construction material that— 

(i) Is wholly the growth, product, or 

manufacture of a WTO GPA country; or 

(ii) In the case of a construction material 

that consists in whole or in part of materials 

from another country, has been substantially 

transformed in a WTO GPA country into a 

new and different construction material 

distinct from the materials from which it was 

transformed. 

(b) This clause implements the Balance of 

Payments Program by providing a preference 

for domestic construction material. In 

addition, the Contracting Officer has 

determined that the WTO GPA, all Free 

Trade Agreements except NAFTA and the 

Bahrain Free Trade Agreement, and other 

waivers relating to acquisitions in support of 

operations in Afghanistan apply to this 

acquisition. Therefore, the Balance of 

Payments Program restrictions are waived for 

SC/CASA state and designated country 

construction material other than Bahrainian 

or Mexican construction material. 

(c) The Contractor shall use only domestic, 

SC/CASA state, or designated country 

construction material other than Bahrainian 

or Mexican construction material in 

performing this contract, except for— 

(1) Construction material valued at or 

below the simplified acquisition threshold in 

part 2 of the Federal Acquisition Regulation; 

(2) Information technology that is a 

commercial item; or 

(3) The construction material or 

components listed by the Government as 

follows: 

lllllllllllllllllllll

[Contracting Officer to list applicable 

excepted materials or indicate ‘‘none’’]. 

(d) If the Contractor is from an SC/CASA 

state, the Contractor shall inform its 

government of its participation in this 

acquisition and that it generally will not have 

such opportunity in the future unless its 

government provides reciprocal procurement 

opportunities to U.S. products and services 

and suppliers of such products and services. 

(End of clause) 

[FR Doc. 2014–26161 Filed 11–4–14; 8:45 am] 

BILLING CODE 5001–06–P 

mstockstill on DSK4VPTVN1PROD with RULES3