Federal Register / Vol. 79, No. 29 / Wednesday, February 12, 2014 / Proposed Rules 8387 

• 30 TAC Section 116.730 adopted 

November 16, 1994, and repealed and 

readopted June 17, 1998. 

• 30 TAC Section 116.740(b), adopted 

June 17, 1998, and amended September 

2, 1999, withdrawn October 21, 2013. 30 

TAC Section 116.803, adopted August 

21, 2002, withdrawn October 21, 2013. 

If the conditional approval of the 

Texas Flexible Permit Program is 

finalized following EPA’s review of 

comments received and the TCEQ 

satisfies the terms of the commitment 

letter, the TCEQ will then submit a SIP 

revision to the EPA for review which 

must contain all the terms of the 

commitment letter. If the EPA 

determines that the TCEQ has met all 

the conditions, we will make such a 

finding in the Federal Register. 

VI. Statutory and Executive Order 

Reviews 

Under the CAA, the Administrator is 

required to approve a SIP submission 

that complies with the provisions of the 

CAA and applicable Federal regulations. 

See, 42 U.S.C. 7410(k); 40 CFR 52.02(a). 

Thus, in reviewing SIP submissions, 

EPA’s role is to approve state choices, 

provided that they meet the criteria of 

the CAA. Accordingly, this action 

merely proposes to approve state law as 

meeting Federal requirements and does 

not impose additional requirements 

beyond those imposed by state law. For 

that reason, this action: 

• Is not a ‘‘significant regulatory 

action’’ subject to review by the Office 

of Management and Budget under 

Executive Order 12866 (58 FR 51735, 

October 4, 1993); 

• does not impose an information 

collection burden under the provisions 

of the Paperwork Reduction Act (44 

U.S.C. 3501 et seq.); 

• is certified as not having a 

significant economic impact on a 

substantial number of small entities 

under the Regulatory Flexibility Act (5 

U.S.C. 601 et seq.); 

• does not contain any unfunded 

mandate or significantly or uniquely 

affect small governments, as described 

in the Unfunded Mandates Reform Act 

of 1995 (Pub. L. 104–4); 

• does not have Federalism 

implications as specified in Executive 

Order 13132 (64 FR 43255, August 10, 

1999); 

• is not an economically significant 

regulatory action based on health or 

safety risks subject to Executive Order 

13045 (62 FR 19885, April 23, 1997); 

• is not a significant regulatory action 

subject to Executive Order 13211 (66 FR 

28355, May 22, 2001); 

• is not subject to requirements of 

Section 12(d) of the National 

Technology Transfer and Advancement 

Act of 1995 (15 U.S.C. 272 note) because 

application of those requirements would 

be inconsistent with the CAA; and 

• does not provide EPA with the 

discretionary authority to address, as 

appropriate, disproportionate human 

health or environmental effects, using 

practicable and legally permissible 

methods, under Executive Order 12898 

(59 FR 7629, February 16, 1994). 

In addition, this rule does not have 

tribal implications as specified by 

Executive Order 13175 (65 FR 67249, 

November 9, 2000), because the SIP is 

not approved to apply in Indian country 

located in the state, and EPA notes that 

it will not impose substantial direct 

costs on tribal governments or preempt 

tribal law. 

List of Subjects in 40 CFR Part 52 

Environmental protection, Air 

pollution control, Carbon monoxide, 

Intergovernmental relations, Lead, 

Nitrogen dioxide, Ozone, Particulate 

matter, Reporting and recordkeeping 

requirements, Sulfur oxides, Volatile 

organic compounds and Incorporation 

by reference. 

Authority: 42 U.S.C. 7401 et seq. 

Dated: January 29, 2014. 

Ron Curry, 

Regional Administrator, Region 6. 

[FR Doc. 2014–03119 Filed 2–11–14; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 212, 225, and 252 

RIN 0750–AH94 

Defense Federal Acquisition 

Regulation Supplement: Clauses With 

Alternates—Foreign Acquisition 

(DFARS Case 2013–D005) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Proposed rule. 

SUMMARY: DoD is proposing to amend 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

create separate prescriptions for the 

basic clause as well as each alternate in 

each set of foreign acquisition-related 

provisions/clauses with one or more 

alternates. In addition, the proposed 

rule would include the full text of each 

provision or clause alternate. 

DATES: Comment Date: Comments on 

the proposed rule should be submitted 

in writing to the address shown below 

on or before April 14, 2014, to be 

considered in the formation of a final 

rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2013–D005, 

using any of the following methods: 

Æ Regulations.gov: http://

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

entering ‘‘DFARS Case 2013–D005’’ 

under the heading ‘‘Enter keyword or 

ID’’ and selecting ‘‘Search.’’ Select the 

link ‘‘Submit a Comment’’ that 

corresponds with ‘‘DFARS Case 2013– 

D005.’’ Follow the instructions provided 

at the ‘‘Submit a Comment’’ screen. 

Please include your name, company 

name (if any), and ‘‘DFARS Case 2013– 

D005’’ on your attached document. 

Æ Email: dfars@mail.mil. Include 

DFARS Case 2013–D005 in the subject 

line of the message. 

Æ Fax: 571–372–6094. 

Æ Mail: Defense Acquisition 

Regulations System, Attn: Ms. Amy 

Williams, OUSD(AT&L)DPAP/DARS, 

Room 3B855, 3060 Defense Pentagon, 

Washington, DC 20301–3060. 

Comments received generally will be 

posted without change to http://

www.regulations.gov, including any 

personal information provided. To 

confirm receipt of your comment(s), 

please check www.regulations.gov, 

approximately two to three days after 

submission to verify posting (except 

allow 30 days for posting of comments 

submitted by mail). 

FOR FURTHER INFORMATION CONTACT: Ms. 

Amy Williams, Defense Acquisition 

Regulations System, 

OUSD(AT&L)DPAP/DARS, Room 

3B855, 3060 Defense Pentagon, 

Washington, DC 20301–3060. 

Telephone 571–372–6106. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD is proposing to amend the 

DFARS to add a separate prescription 

for the basic clause as well as each 

alternate. In addition, the proposed rule 

would include the full text of each 

provision/clause alternate. For clarity, 

the preface of the alternate will continue 

to explain what portions of that 

alternate are different from the basic 

provision/clause. Separate prescriptions 

for the basic and alternates of DFARS 

provisions and clauses will facilitate the 

use of automated contract writing 

systems. The proposed rule will not 

revise the prescriptions in any 

substantive way or change the 

applicability of the provisions/clauses 

or their alternates. 


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8388 Federal Register / Vol. 79, No. 29 / Wednesday, February 12, 2014 / Proposed Rules 

The inclusion of the full text of each 

provision/clause alternate aims to make 

the terms of a provision/clause alternate 

clearer to offerors and to DoD 

contracting officers. The current 

convention for alternates is to show 

only the changed paragraphs from the 

basic provision or clause. This proposed 

rule would include the full text of each 

provision/clause and each alternate, 

which will assist in making solicitation 

and contract terms and conditions easier 

to read and understand. By placing 

alternates in full text, all paragraph 

substitutions from the basic provision/

clause will have already been made. 

Inapplicable paragraphs from the basic 

provision/clause that are superseded by 

the alternate will not be included in the 

solicitation or contract in order to 

prevent confusion. 

Although this rule proposes to 

include each alternate in full text, it 

retains the language that precedes the 

alternate, which includes the location of 

the alternate’s prescription and a 

statement that identifies which 

paragraphs were changed from the basic 

provision/clause. Further, alternates are 

proposed to have individual titles that 

tie them to the basic clause, e.g., ‘‘Trade 

Agreements—Alternate I’’ in lieu of 

‘‘Alternate I.’’ 

This rule proposes to revise the 

naming convention for provisions/

clauses with alternates to indicate that 

there is at least one alternate by revising 

the title of the basic clause to read 

‘‘Title—Basic.’’ Thus, if adopted as 

final, the naming convention will 

differentiate at the provision/clause title 

whether there are any alternates 

associated with that provision/clause. 

II. Discussion 

Although DFARS part 225 contains 

eight solicitation provisions and clauses 

that have, or are, alternates, this 

proposed rule will only address six. The 

other two are currently being revised in 

another DFARS case. The remaining 

prescriptions in DFARS part 225 are not 

proposed to be changed in any way by 

this proposed rule. 

The six DFARS foreign acquisitionrelated provisions/clauses that would be 

affected by this rule are as follows: 

• 252.225–7000, Buy American— 

Balance of Payments Program 

Certificate, one alternate; 

• 252.225–7001, Buy American and 

Balance of Payments Program, one 

alternate; 

• 252.225–7020, Trade Agreements 

Certificate, one alternate. 

• 252.225–7021, Trade Agreements, 

two alternates; 

• 252.225–7035, Buy American—Free 

Trade Agreements—Balance of 

Payments Program Certificate, five 

alternates; and 

• 252.225–7036, Buy American—Free 

Trade Agreements—Balance of 

Payments Program, five alternates. 

III. Executive Orders 12866 and 13563 

Executive Orders (E.O.s) 12866 and 

13563 direct agencies to assess all costs 

and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). E.O. 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This is not a significant 

regulatory action and, therefore, was not 

subject to review under section 6(b) of 

E.O. 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

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

804. 

IV. Regulatory Flexibility Act 

DoD does not expect this rule to have 

a significant economic impact on a 

substantial number of small entities 

within the meaning of the Regulatory 

Flexibility Act, 5 U.S.C. 601, et seq., 

because it merely revises the format, not 

the substance, of prescriptions for 

provisions and clauses with alternates, 

as well as includes the full text of each 

provision or clause in each alternate. 

However, an initial regulatory flexibility 

analysis has been performed and is 

summarized as follows: 

The purpose of this case is to amend 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

create an overarching prescription for 

each set of provisions/clauses with one 

or more alternates. The overarching 

prescription is intended to include the 

common requirements for the use of that 

provision/clause set. 

The use of automated contract writing 

systems will be facilitated by revising 

the prescription format for DFARS 

provisions/clauses that have one or 

more alternates. This rule proposes to 

revise the prescription format so that 

there is an overarching prescription that 

covers the elements that the basic 

provision/clause and all its alternates 

have in common. Then, there will be a 

separate prescription for use of the basic 

prescription/clause and each alternate. 

In addition, each alternate provision/

clause will be presented in full text, not 

just the paragraph or section that is 

different from the basic provision/

clause. This will make the terms of a 

provision or clause alternate clearer to 

offerors, as well as to DoD contracting 

officers, because all paragraph 

substitutions will have already been 

made. Inapplicable paragraphs from the 

basic provision/clause that are 

superseded by the alternate will not be 

included in the solicitation or contract 

to prevent confusion. 

Potential offerors, including small 

businesses, initially may be affected by 

this rule by seeing an unfamiliar format 

for provision/clause alternates in 

solicitations and contracts issued by 

DoD contracting activities. DoD awarded 

an average of 270,000 contract actions 

(excluding modifications and orders) in 

Fiscal Year 2012, of which an average of 

180,000 (67%) were awarded to about 

35,000 unique small business entities. It 

is unknown as to how many of these 

contracts were awarded that included 

an alternate to a DFARS provision or 

clause. Nothing substantive will change 

in solicitations or contracts for potential 

offerors, and only the appearance of 

how provision/clause alternates are 

presented in solicitations and contracts 

will be changed. This rule may result in 

potential offerors, including small 

businesses, expending more time to 

become familiar with and to understand 

the new format of provision/clause 

alternates in full text contained in 

contracts issued by any DoD contracting 

activity. The rule also anticipates saving 

contractors’ time by making all 

paragraph substitutions from the basic 

clause and by not requiring offerors to 

read inapplicable paragraphs contained 

in the basic provisions/clauses where 

alternates are also included in the 

solicitations and contracts. The overall 

burden caused by this rule is expected 

to be negligible and will not be any 

greater on small businesses than it is on 

large businesses. 

This rule does not add any new 

information collection requirements. 

The rule does not duplicate, overlap, or 

conflict with any other Federal rules. No 

alternatives were determined that will 

accomplish the objectives of the rule. 

DoD invites comments from small 

business concerns and other interested 

parties on the expected impact of this 

rule on small entities. 

DoD will also consider comments 

from small entities concerning the 

existing regulations in subparts affected 

by this rule in accordance with 5 U.S.C. 

610. Interested parties must submit such 

comments separately and should cite 5 

U.S.C. 610 (DFARS Case 2013–D005), in 

correspondence. 

V. Paperwork Reduction Act 

The rule does not contain any new 

information collection requirements that 

require the approval of the Office of 


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Federal Register / Vol. 79, No. 29 / Wednesday, February 12, 2014 / Proposed Rules 8389 

Management and Budget under the 

Paperwork Reduction Act (44 U.S.C. 

chapter 35). 

List of Subjects in 48 CFR Parts 212, 

225, and 252 

Government procurement. 

Manuel Quinones, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR parts 212, 225, and 

252 are proposed to be amended as 

follows: 

■ 1. The authority citation for parts 212, 

225, and 252 continues to read as 

follows: 

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

chapter 1. 

PART 212—ACQUISITION OF 

COMMERCIAL ITEMS 

■ 2. Amend section 212.301 by revising 

paragraphs (f)(xix), (xx), and (xxxix) to 

read as follows: 

212.301 Solicitation provisions and 

contract clauses for the acquisition of 

commercial items. 

(f) * * * 

(xix) Use the provision at 252.225– 

7000, Buy American–Balance of 

Payments Program Certificate, to 

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

Executive Order 10582 of December 17, 

1954, Prescribing Uniform Procedures 

for Certain Determinations Under the 

Buy-American Act. 

(A) Use the basic provision as 

prescribed in 225.1101(1)(i). 

(B) Use the provision with its 

Alternate I as prescribed in 

225.1101(1)(ii). 

(xx) Use the clause at 252.225–7001, 

Buy American and Balance of Payments 

Program to comply with 41 U.S.C. 

chapter 83 and Executive Order 10582 

of December 17, 1954, Prescribing 

Uniform Procedures for Certain 

Determinations Under the BuyAmerican Act. 

(A) Use the basic clause as prescribed 

in 225.1101(2)(ii). 

(B) Use the clause with its Alternate 

I as prescribed in 225.1101(2)(iii). 

* * * * * 

(xxxix) Use the clause at 252.225– 

7036, Buy American—Free Trade 

Agreements—Balance of Payments 

Program to comply with 41 U.S.C. 

chapter 83 and 19 U.S.C. 3301 note. 

Alternates II, III, and V also implement 

section 886 of the National Defense 

Authorization Act for Fiscal Year 2008 

(Pub. L. 110–181). 

(A) Use the basic clause as prescribed 

in 225.1101(10)(i)(A). 

(B) Use the clause with its Alternate 

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

(C) Use the clause with its Alternate 

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

(D) Use the clause with its Alternate 

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

(E) Use the clause with its Alternate 

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

(F) Use the clause with its Alternate 

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

* * * * * 

PART 225—FOREIGN ACQUISITION 

■ 3. Amend section 225.1101 by— 

■ a. Revising paragraph (1); 

■ b. In paragraph (2)(i), removing the 

phrase ‘‘Use the clause’’ and adding in 

its place ‘‘Use the basic or the alternate 

of the clause’’; 

■ c. In paragraph (2)(i)(B), removing 

‘‘Subpart’’ in two places and adding in 

its place ‘‘subpart’’, and by removing 

‘‘may still be’’ and adding in its place 

‘‘is still’’; 

■ d. In paragraph (2)(i)(D), removing 

‘‘One or both of the following clauses’’ 

and adding in its place ‘‘One or both of 

the basic or the alternates of the 

following clauses’’; 

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

paragraph (2)(iii), adding a new 

paragraph (2)(ii), and revising the newly 

redesignated paragraph (2)(iii). 

■ f. In paragraph (3) introductory text, 

removing the phrase ‘‘one of the 

following clauses:’’ and adding in its 

place ‘‘one of the basic or the alternates 

of the following clauses:’’; 

■ g. Redesignating paragraph (5)(i) as 

paragraph (5) introductory text and 

amending the newly redesignated 

paragraph (5) introductory text by 

removing ‘‘Use the provision’’ and 

adding in its place ‘‘Use the basic or the 

alternate of the provision’’, and adding 

a new paragraph (5)(i); 

■ h. Revising paragraph (5)(ii); 

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

paragraph (6) introductory text and 

amending the newly redesignated 

paragraph (6) introductory text by 

removing ‘‘Use the clause’’ and adding 

in its place ‘‘Except as provided in 

paragraph (6)(iv) of this section, use the 

basic or an alternate of the clause’’, 

removing ‘‘World Trade Organization 

Government Procurement Agreement 

applies’’ and adding in its place ‘‘World 

Trade Organization Government 

Procurement Agreement applies, i.e. the 

acquisition is of end products listed at 

225.401–70, the value of the acquisition 

equals or exceeds $204,000, and none of 

the exceptions at 25.401(a) applies’’, 

and adding a new paragraph (6)(i); 

■ j. In paragraph (6)(ii), by removing 

‘‘Use the clause with its Alternate II,’’ 

and adding its place ‘‘Use the clause 

Trade Agreements—Alternate II’’, and 

removing ‘‘acquisition of commercial 

items, when’’ and adding in its place 

‘‘acquisition of commercial items, that 

do not include the clause at 252.225– 

7024, Requirement for Products or 

Services from Afghanistan, when’’; 

■ k. In paragraph (6)(iii), revising the 

introductory text; 

■ l. Redesignating paragraph (9)(i) as 

paragraph (9) introductory text and 

amending the newly redesignated 

paragraph (9) introductory text by 

removing ‘‘Use the provision’’ and 

adding in its place ‘‘Use the basic or an 

alternate of the provision’’, removing 

‘‘that include the clause at 252.225– 

7036,’’ and adding in its place ‘‘that 

include the basic or an alternate of the 

clause at 252.225–7036’’, and adding a 

new paragraph (9)(i); 

■ m. In paragraph (9)(ii), removing ‘‘Use 

the provision with its Alternate I’’ and 

adding its place ‘‘Use the provision Buy 

American—Free Trade Agreements— 

Balance of Payments Program 

Certificate—Alternate I’’; 

■ n. In paragraph (9)(iii), removing ‘‘Use 

the provision with its Alternate II’’ and 

adding its place ‘‘Use the provision Buy 

American—Free Trade Agreements— 

Balance of Payments Program 

Certificate—Alternate II’’; 

■ o. In (9)(iv), removing ‘‘Use the 

provision with its Alternate III’’ and 

adding its place ‘‘Use the provision Buy 

American—Free Trade Agreements— 

Balance of Payments Program 

Certificate—Alternate III’’; 

■ p. In paragraph (9)(v), removing ‘‘Use 

the provision with its Alternate IV’’ and 

adding its place ‘‘Use the provision Buy 

American—Free Trade Agreements— 

Balance of Payments Program 

Certificate—Alternate IV’’; 

■ q. In paragraph (9)(vi), removing ‘‘Use 

the provision with its Alternate V’’ and 

adding its place ‘‘Use the provision Buy 

American—Free Trade Agreements— 

Balance of Payments Program 

Certificate—Alternate V’’; 

■ r. In paragraph (10)(i) introductory 

text, removing ‘‘,use the clause at 

252.225–7036,’’ and adding in its place 

‘‘,use the basic or an alternate of the 

clause at 252.225–7036,’’ and removing 

‘‘$204,000, and a Free Trade Agreement 

applies to the acquisition.’’ and adding 

in its place ‘‘$204,000, unless an 

exception at 25.401 applies.’’ 

■ s. In paragraph (10)(i)(A), removing 

‘‘Use the basic clause’’ and adding its 

place ‘‘Use the clause Buy American— 

Free Trade Agreements—Balance of 

Payments Program—Basic,’’; 

■ t. In paragraph (10)(i)(B), removing 

‘‘Use the clause with its Alternate I’’ and 

adding its place ‘‘Use the clause Buy 

American—Free Trade Agreements— 

Balance of Payments Program— 

Alternate I,’’; 


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■ u. Redesignating paragraph (10)(i)(C) 

as paragraph (10)(i)(E) and in newly 

redesignated paragraph (10)(i)(E), 

removing ‘‘Use the clause with its 

Alternate IV’’ and adding its place ‘‘Use 

the clause Buy American—Free Trade 

Agreements—Balance of Payments 

Program—Alternate IV,’’ and removing 

‘‘in support of operations in 

Afghanistan, use with its Alternate V.’’ 

and adding in its place ‘‘in support of 

operations in Afghanistan.’’; 

■ v. Adding new paragraphs (10)(i)(C), 

(10)(i)(D), and (10)(i)(F); and 

■ w. In paragraph (10)(ii), revising the 

introductory text. 

The revisions and additions read as 

follows: 

225.1101 Acquisition of supplies. 

(1) Use the basic or the alternate of the 

provision at 252.225–7000, Buy 

American—Balance of Payments 

Program Certificate, instead of the 

provision at FAR 52.225–2, Buy 

American Certificate, in any solicitation, 

including solicitations using FAR part 

12 procedures for the acquisition of 

commercial items, that includes the 

basic or the alternate of the clause at 

252.225–7001, Buy American and 

Balance of Payments Program. If the 

solicitation includes the provision at 

FAR 52.204–7, do not separately list the 

provision 252.225–7000 in the 

solicitation. 

(i) Use the provision Buy American— 

Balance of Payments Program 

Certificate—Basic, when the 

solicitation, including solicitations 

using FAR part 12 procedures for the 

acquisition of commercial items, 

includes the basic clause at 252.225– 

7001. 

(ii) Use the provision Buy American— 

Balance of Payments Program 

Certificate—Alternate I in solicitations, 

including solicitations using FAR part 

12 procedures, when the solicitation 

includes Alternate I of the clause at 

252.225–7001. 

(2) * * * 

(ii) Use the clause Buy American and 

Balance of Payments Program—Basic, in 

solicitations and contracts, including 

solicitations and contracts using FAR 

part 12 procedures for the acquisition of 

commercial items, if the acquisition is 

not of end products listed in 225.401– 

70 in support of operations in 

Afghanistan. 

(iii) Use the clause Buy American and 

Balance of Payments Program— 

Alternate I, in solicitations and 

contracts including solicitations and 

contracts using FAR part 12 procedures 

for the acquisition of commercial items, 

when the acquisition is of end products 

listed in 225.401–70 in support of 

operations in Afghanistan. 

* * * * * 

(5) * * * 

(i) Use the provision Trade 

Agreements Certificate—Basic, if the 

solicitation, including solicitations 

using FAR part 12 procedures for the 

acquisition of commercial items, 

includes the basic clause at 252.225– 

7021. 

(ii) Use the provision Trade 

Agreements Certificate—Alternate I, if 

the solicitation, including solicitations 

using FAR part 12 procedures for the 

acquisition of commercial items, 

includes the Alternate II of the clause at 

252.225–7021. 

(6) * * * 

(i) Use the clause Trade Agreements— 

Basic, in solicitations and contracts, 

including solicitations and contracts 

using FAR part 12 procedures for the 

acquisition of commercial items, that 

are not of end products in support of 

operations in Afghanistan, or that 

include the clause at 252.225–7024, 

Requirement for Products or Services 

from Iraq or Afghanistan. 

* * * * * 

(iii) Do not use the basic or an 

alternate of the clause if— 

* * * * * 

(9) * * * 

(i) Use the provision Buy American— 

Free Trade Agreements—Balance of 

Payments Program Certificate—Basic in 

solicitations, including solicitations 

using FAR part 12 procedures for the 

acquisition of commercial items, when 

the basic of the clause at 252.225–7036 

is used. 

* * * * * 

(10) * * * 

(i) * * * 

(C) Use the clause Buy American— 

Free Trade Agreements—Balance of 

Payments Program—Alternate II, in 

solicitations and contracts, including 

solicitations and contracts using FAR 

part 12 procedures for the acquisition of 

commercial items, when the estimated 

value equals or exceeds $100,000 and 

the acquisition is of end products in 

support of operations in Afghanistan. 

(D) Use the clause Buy American— 

Free Trade Agreements—Balance of 

Payments Program—Alternate III, in 

solicitations and contracts, including 

solicitations and contracts using FAR 

part 12 procedures for the acquisition of 

commercial items, when the estimated 

value is less than $79,507 and the 

acquisition is of end products in 

support of operations in Afghanistan. 

* * * * * 

(F) Use the clause Buy American— 

Free Trade Agreements—Balance of 

Payments Program—Alternate V, in 

solicitations and contracts, including 

solicitations and contracts using FAR 

part 12 procedures for the acquisition of 

commercial items, when the estimated 

value equals or exceeds $79,507 but is 

less than $100,000 and the acquisition 

is of end products in support of 

operations in Afghanistan. 

(ii) Do not use the basic or an 

alternate of the clause in paragraph 

(10)(i) of this section if— 

* * * * * 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 4. Amend section 252.225–7000 by— 

■ a. Revising the introductory text, 

provision title and date, and paragraph 

(a); and 

■ b. Revising Alternate I. 

The revisions read as follows: 

252.225–7000 Buy American—Balance of 

Payments Program Certificate. 

As prescribed in 225.1101(1), use one 

of the following provisions: 

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

the following provision. 

BUY AMERICAN—BALANCE OF 

PAYMENTS PROGRAM CERTIFICATE— 

BASIC (DATE) 

(a) Definitions. Commercially available 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 clause of this solicitation. 

* * * * * 

Alternate I. As prescribed in 

225.1101(1)(ii), use the following provision, 

which adds ‘‘South Caucasus/Central and 

South Asian (SC/CASA) state’’ and ‘‘South 

Caucasus/Central and South Asian (SC/

CASA) state end product’’ in paragraph (a), 

and replaces ‘‘qualifying country end 

products’’ in paragraphs (b)(2) and (c)(2) with 

‘‘qualifying country end products or SC/

CASA state end products.’’ 

BUY AMERICAN—BALANCE OF 

PAYMENTS PROGRAM CERTIFICATE— 

ALTERNATE I (DATE) 

(a) Definitions. Commercially available 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 clause of this solicitation. 

(b) Evaluation. The Government— 


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(1) Will evaluate offers in accordance with 

the policies and procedures of part 225 of the 

Defense Federal Acquisition Regulation 

Supplement; and 

(2) Will evaluate offers of qualifying 

country end products or SC/CASA state end 

products without regard to the restrictions of 

the Buy American statute or the Balance of 

Payments Program. 

(c) Certifications and identification of 

country of origin. 

(1) For all line items subject to the Buy 

American and Balance of Payments Program 

clause of this solicitation, the offeror certifies 

that— 

(i) Each end product, except those listed in 

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

a domestic end product; and 

(ii) For end products other than COTS 

items, components of unknown origin are 

considered to have been mined, produced, or 

manufactured outside the United States or a 

qualifying country. 

(2) The offeror certifies that the following 

end products are qualifying country end 

products or SC/CASA state end products: 

Line Item Number 

Country of Origin 

lllllllllllllllllllll

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 

Country of Origin (If Known) 

lllllllllllllllllllll

lllllllllllllllllllll

(End of provision) 

■ 5. Amend section 252.225–7001 by— 

■ a. Revising the introductory text, 

clause title and date, and 

■ b. Revising Alternate I. 

The revisions read as follows: 

252.225–7001 Buy American and Balance 

of Payments Program. 

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

one of the following clauses: 

Basic. As prescribed in 

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

BUY AMERICAN AND BALANCE OF 

PAYMENTS PROGRAM—BASIC (DATE) 

* * * * * 

Alternate I. As prescribed in 

225.1101(2)(iii), use the following clause, 

which adds ‘‘South Caucasus/Central and 

South Asian (SC/CASA) state’’ and ‘‘South 

Caucasus/Central and South Asian (SC/

CASA) state end product’’ to paragraph (a), 

and uses different paragraphs (b) and (c) than 

the basic clause. 

BUY AMERICAN AND BALANCE OF 

PAYMENTS PROGRAM—ALTERNATE I 

(DATE) 

(a) Definitions. As used in this clause— 

Commercially available off-the-shelf 

(COTS) item— 

(i) Means any item of supply (including 

construction material) that is— 

(A) A commercial item (as defined in 

paragraph (1) of the definition of 

‘‘commercial item’’ in section 2.101 of the 

Federal Acquisition Regulation); 

(B) Sold in substantial quantities in the 

commercial marketplace; and 

(C) Offered to the Government, under a 

contract or subcontract at any tier, without 

modification, in the same form in which it 

is sold in the commercial marketplace; and 

(ii) Does not include bulk cargo, as defined 

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

products and petroleum products. 

Component means an article, material, or 

supply incorporated directly into an end 

product. 

Domestic end product means— 

(i) An unmanufactured end product that 

has been mined or produced in the United 

States; or 

(ii) An end product manufactured in the 

United States if— 

(A) The cost of its qualifying country 

components and its components that are 

mined, produced, or manufactured in the 

United States exceeds 50 percent of the cost 

of all its components. The cost of 

components includes transportation costs to 

the place of incorporation into the end 

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

duty-free entry certificate is issued). Scrap 

generated, collected, and prepared for 

processing in the United States is considered 

domestic. A component is considered to have 

been mined, produced, or manufactured in 

the United States (regardless of its source in 

fact) if the end product in which it is 

incorporated is manufactured in the United 

States and the component is of a class or kind 

for which the Government has determined 

that— 

(1) Sufficient and reasonably available 

commercial quantities of a satisfactory 

quality are not mined, produced, or 

manufactured in the United States; or 

(2) It is inconsistent with the public 

interest to apply the restrictions of the Buy 

American statute; or 

(B) The end product is a COTS item. 

End product means those articles, 

materials, and supplies to be acquired under 

this contract for public use. 

Foreign end product means an end product 

other than a domestic end product. 

Qualifying country means a country with a 

reciprocal defense procurement 

memorandum of understanding or 

international agreement with the United 

States in which both countries agree to 

remove barriers to purchases of supplies 

produced in the other country or services 

performed by sources of the other country, 

and the memorandum or agreement 

complies, where applicable, with the 

requirements of section 36 of the Arms 

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

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

are qualifying countries: 

Australia 

Austria 

Belgium 

Canada 

Czech Republic 

Denmark 

Egypt 

Finland 

France 

Germany 

Greece 

Israel 

Italy 

Luxembourg 

Netherlands 

Norway 

Poland 

Portugal 

Spain 

Sweden 

Switzerland 

Turkey 

United Kingdom of Great Britain and 

Northern Ireland. 

Qualifying country component means a 

component mined, produced, or 

manufactured in a qualifying country. 

Qualifying country end product means— 

(i) An unmanufactured end product mined 

or produced in a qualifying country; or 

(ii) An end product manufactured in a 

qualifying country if — 

(A) The cost of the following types of 

components exceeds 50 percent of the cost of 

all its components: 

(1) Components mined, produced, or 

manufactured in a qualifying country. 

(2) Components mined, produced, or 

manufactured in the United States. 

(3) Components of foreign origin of a class 

or kind for which the Government has 

determined that sufficient and reasonably 

available commercial quantities of a 

satisfactory quality are not mined, produced, 

or manufactured in the United States; or 

(B) The end product is a COTS item. 

South Caucasus/Central and South Asian 

(SC/CASA) state means Armenia, Azerbaijan, 

Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 

Tajikistan, Turkmenistan, or Uzbekistan. 

South Caucasus/Central and South Asian 

(SC/CASA) state end product means an 

article that— 

(i) Is wholly the growth, product, or 

manufacture of an SC/CASA state; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in an SC/CASA state into a new and different 

article of commerce with a name, character, 

or use distinct from that of the article or 

articles from which it was transformed. The 

term refers to a product offered for purchase 

under a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

United States means the 50 States, the 

District of Columbia, and outlying areas. 

(b) This clause implements the Balance of 

Payments Program. Unless otherwise 

specified, this clause applies to all line items 

in the contract. 

(c) The Contractor shall deliver only 

domestic end products unless, in its offer, it 

specified delivery of other end products in 

the Buy American Balance of Payments 

Program Certificate provision of the 

solicitation. If the Contractor certified in its 

offer that it will deliver a qualifying country 

end product or an SC/CASA state end 


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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) 

■ 6. Amend section 252.225–7013 by— 

■ a. Removing the clause date ‘‘(OCT 

2013)’’ and adding in its place 

‘‘(DATE)’’; 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 (basic 

or alternate) clause of this contract; 

(ii) Free Trade Agreement country end 

product, other than a Bahrainian end 

product, a Moroccan end product, a 

Panamanian end product, or a Peruvian 

end product, as defined in the Buy 

American—Free Trade Agreements— 

Balance of Payments Program—Basic or 

the Buy American—Free Trade 

Agreements—Balance of Payments 

Program—Alternate II clause of this 

contract; 

(iii) Canadian end product, as defined 

in the Buy American—Free Trade 

Agreements—Balance of Payments 

Program—Alternate I or Buy 

American—Free Trade Agreements— 

Balance of Payments Program— 

Alternate III clause of this contract; or 

(iv) Free Trade Agreement country 

end product other than a Bahrainian 

end product, Korean end product, 

Moroccan end product, Panamanian 

end product, or Peruvian end product, 

as defined in the Buy American—Free 

Trade Agreements—Balance of 

Payments Program—Alternate IV or the 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program—Alternate V clause of this 

contract. 

* * * * * 

■ 7. Amend section 252.225–7020 by— 

■ a. Revising the introductory text, 

provision title and date, and paragraph 

(a); and 

■ b. Revising Alternate I. 

The revisions read as follows: 

252.225–7020 Trade Agreements 

Certificate. 

As prescribed in 225.1101(5), use one 

of the following provisions: 

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

use the following provision. 

Trade Agreements Certificate—Basic (Date) 

(a) Definitions. Designated country end 

product, nondesignated country end product, 

qualifying country end product, and U.S.- 

made end product, as used in this provision, 

have the meanings given in the Trade 

Agreements clause of this solicitation. 

* * * * * 

Alternate I. As prescribed in 

225.1101(5)(ii), use the following provision, 

which adds ‘‘South Caucasus/Central and 

South Asian (SC/CASA) state’’ and ‘‘South 

Caucasus/Central and South Asian (SC/

CASA) state end product’’ to paragraph (a) 

and uses different paragraphs b)(2), and (c) 

than the basic clause. 

Trade Agreements Certificate—Alternate I 

(Date) 

(a) Definitions. Designated country end 

product, nondesignated country end product, 

qualifying country end product, South 

Caucasus/Central and South Asian (SC/

CASA) state, South Caucasus/Central and 

South Asian (SC/CASA) state end product, 

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

provision, have the meanings given in the 

Trade Agreements clause of this solicitation. 

(b) Evaluation. The Government— 

(1) Will evaluate offers in accordance with 

the policies and procedures of part 225 of the 

Defense Federal Acquisition Regulation 

Supplement; and 

(2) Will consider only offers of end 

products that are U.S.-made, qualifying 

country, SC/CASA state, or designated 

country end products unless— 

(i) There are no offers of such end 

products; 

(ii) The offers of such end products are 

insufficient to fulfill the Government’s 

requirements; or 

(iii) A national interest waiver has been 

granted. 

(c) Certification and identification of 

country of origin. 

(1) For all line items subject to the Trade 

Agreement clause of this solicitation, the 

offeror certifies that each end product to be 

delivered under this contract, except those 

listed in paragraph (c)(2)(ii) of this provision, 

is a U.S.-made, qualifying country, SC/CASA 

state, or designated country end product. 

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

state end products: 

(Line Item Number) (Country of Origin) 

(ii) The following are other nondesignated 

country end products: 

(Line Item Number) (Country of Origin) 

(End of provision) 

■ 8. 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 (Date) 

* * * * * 

Alternate II. As prescribed in 

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

which adds ‘‘South Caucasus/Central and 

South Asian (SC/CASA) state’’ and ‘‘South 

Caucasus/Central and South Asian (SC/

CASA) state end product’’ to paragraph (a); 

(ii) uses a different paragraph (c) than the 

basic clause; (iii) adds a new paragraph (d); 

and (iv) includes paragraphs (e) and (f) which 

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

basic clause. 

Trade Agreements—Alternate II (Date) 

(a) Definitions. As used in this clause— 

Caribbean Basin country end product— 

(i) Means an article that— 

(A) Is wholly the growth, product, or 

manufacture of a Caribbean Basin country; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in a Caribbean Basin country into a new and 

different article of commerce with a name, 

character, or use distinct from that of the 

article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself; and 

(ii) Excludes products, other than 

petroleum and any product derived from 

petroleum, that are not granted duty-free 

treatment under the Caribbean Basin 

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

These exclusions presently consist of— 

(A) Textiles, apparel articles, footwear, 

handbags, luggage, flat goods, work gloves, 

leather wearing apparel, and handloomed, 

handmade, or folklore articles that are not 

granted duty-free status in the Harmonized 

Tariff Schedule of the United States 

(HTSUS); 

(B) Tuna, prepared or preserved in any 

manner in airtight containers; and 

(C) Watches and watch parts (including 

cases, bracelets, and straps) of whatever type, 

including, but not limited to, mechanical, 

quartz digital, or quartz analog, if such 

watches or watch parts contain any material 

that is the product of any country to which 

the HTSUS column 2 rates of duty (HTSUS 

General Note 3(b)) apply. 

Commercially available off-the-shelf 

(COTS) item— 

(i) Means any item of supply (including 

construction material) that is— 

(A) A commercial item (as defined in 

paragraph (1) of the definition of 

‘‘commercial item’’ in section 2.101 of the 

Federal Acquisition Regulation); 

(B) Sold in substantial quantities in the 

commercial marketplace; and 

(C) Offered to the Government, under a 

contract or subcontract at any tier, without 

modification, in the same form in which it 

is sold in the commercial marketplace; and 

(ii) Does not include bulk cargo, as defined 

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

products and petroleum products. 

Component means an article, material, or 

supply incorporated directly into an end 

product. 


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Designated country means— 

(i) A World Trade Organization 

Government Procurement Agreement (WTO 

GPA) country (Armenia, Aruba, Austria, 

Belgium, Bulgaria, Canada, Cyprus, Czech 

Republic, Denmark, Estonia, Finland, France, 

Germany, Greece, Hong Kong, Hungary, 

Iceland, Ireland, Israel, Italy, Japan, Korea 

(Republic of), Latvia, Liechtenstein, 

Lithuania, Luxembourg, Malta, Netherlands, 

Norway, Poland, Portugal, Romania, 

Singapore, Slovak Republic, Slovenia, Spain, 

Sweden, Switzerland, Taiwan (known in the 

World Trade Organization as ‘‘the Separate 

Customs Territory of Taiwan, Penghu, 

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

United Kingdom); 

(ii) A Free Trade Agreement country 

(Australia, Bahrain, Canada, Chile, Colombia, 

Costa Rica, Dominican Republic, El Salvador, 

Guatemala, Honduras, Korea (Republic of), 

Mexico, Morocco, Nicaragua, Peru, or 

Singapore); 

(iii) A least developed country 

(Afghanistan, Angola, Bangladesh, Benin, 

Bhutan, Burkina Faso, Burundi, Cambodia, 

Central African Republic, Chad, Comoros, 

Democratic Republic of Congo, Djibouti, East 

Timor, Equatorial Guinea, Eritrea, Ethiopia, 

Gambia, Guinea, Guinea-Bissau, Haiti, 

Kiribati, Laos, Lesotho, Liberia, Madagascar, 

Malawi, Maldives, Mali, Mauritania, 

Mozambique, Nepal, Niger, Rwanda, Samoa, 

Sao Tome and Principe, Senegal, Sierra 

Leone, Solomon Islands, Somalia, Tanzania, 

Togo, Tuvalu, Uganda, Vanuatu, Yemen, or 

Zambia); or 

(iv) A Caribbean Basin country (Antigua 

and Barbuda, Aruba, Bahamas, Barbados, 

Belize, Bonaire, British Virgin Islands, 

Curacao, Dominica, Grenada, Guyana, Haiti, 

Jamaica, Montserrat, Saba, St. Kitts and 

Nevis, St. Lucia, St. Vincent and the 

Grenadines, Sint Eustatius, Sint Maarten, or 

Trinidad and Tobago). 

Designated country end product means a 

WTO GPA country end product, a Free Trade 

Agreement country end product, a least 

developed country end product, or a 

Caribbean Basin country end product. 

End product means those articles, 

materials, and supplies to be acquired under 

this contract for public use. 

Free Trade Agreement country end product 

means an article that— 

(i) Is wholly the growth, product, or 

manufacture of a Free Trade Agreement 

country; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in a Free Trade Agreement country into a 

new and different article of commerce with 

a name, character, or use distinct from that 

of the article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

Least developed country end product 

means an article that— 

(i) Is wholly the growth, product, or 

manufacture of a least developed country; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in a least developed country into a new and 

different article of commerce with a name, 

character, or use distinct from that of the 

article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

Nondesignated country end product means 

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

product or a designated country end product. 

Qualifying country means a country with a 

reciprocal defense procurement 

memorandum of understanding or 

international agreement with the United 

States in which both countries agree to 

remove barriers to purchases of supplies 

produced in the other country or services 

performed by sources of the other country, 

and the memorandum or agreement 

complies, where applicable, with the 

requirements of section 36 of the Arms 

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

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

are qualifying countries: 

Australia 

Austria 

Belgium 

Canada 

Czech Republic 

Denmark 

Egypt 

Finland 

France 

Germany 

Greece 

Israel 

Italy 

Luxembourg 

Netherlands 

Norway 

Poland 

Portugal 

Spain 

Sweden 

Switzerland 

Turkey 

United Kingdom of Great Britain and 

Northern Ireland. 

Qualifying country end product means— 

(i) An unmanufactured end product mined 

or produced in a qualifying country; or 

(ii) An end product manufactured in a 

qualifying country if— 

(A) The cost of the following types of 

components exceeds 50 percent of the cost of 

all its components: 

(1) Components mined, produced, or 

manufactured in a qualifying country. 

(2) Components mined, produced, or 

manufactured in the United States. 

(3) Components of foreign origin of a class 

or kind for which the Government has 

determined that sufficient and reasonably 

available commercial quantities of a 

satisfactory quality are not mined, produced, 

or manufactured in the United States; or 

(B) The end product is a COTS item. 

South Caucasus/Central and South Asian 

(SC/CASA) state means Armenia, Azerbaijan, 

Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 

Tajikistan, Turkmenistan, or Uzbekistan. 

South Caucasus/Central and South Asian 

(SC/CASA) state end product means an 

article that— 

(i) Is wholly the growth, product, or 

manufacture of an SC/CASA state; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in an SC/CASA state into a new and different 

article of commerce with a name, character, 

or use distinct from that of the article or 

articles from which it was transformed. The 

term refers to a product offered for purchase 

under a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

United States means the 50 States, the 

District of Columbia, and outlying areas. 

U.S.-made end product means an article 

that— 

(i) Is mined, produced, or manufactured in 

the United States; or 

(ii) Is substantially transformed in the 

United States into a new and different article 

of commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. 

WTO GPA country end product means an 

article that— 

(i) Is wholly the growth, product, or 

manufacture of a WTO GPA country; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in a WTO GPA country into a new and 

different article of commerce with a name, 

character, or use distinct from that of the 

article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

(b) Unless otherwise specified, this clause 

applies to all items in the Schedule. 

(c) The Contractor shall deliver under this 

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

SC/CASA state, or designated country end 

products unless— 

(1) In its offer, the Contractor specified 

delivery of other nondesignated country end 

products in the Trade Agreements Certificate 

provision of the solicitation; and 

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

country, SC/CASA state, or designated 

country end products from responsive, 

responsible offerors are either not received or 

are insufficient to fill the Government’s 

requirements; or 

(ii) A national interest waiver has been 

granted. 

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

state, the Contractor shall inform its 

government of its participation in this 

acquisition and that it generally will not have 

such opportunity in the future unless its 

government provides reciprocal procurement 


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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) 

■ 9. Amend section 252.225–7035 by— 

■ a. Revising the introductory text, 

provision title and date; and 

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

V. 

The revisions read as follows: 

252.225–7035 Buy American—Free Trade 

Agreements—Balance of Payments 

Program Certificate. 

As prescribed in 225.1101(9), use one 

of the following provisions: 

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

the following provision. 

Buy American—Free Trade Agreements— 

Balance of Payments Program Certificate— 

Basic (Date) 

* * * * * 

Alternate I. As prescribed in 

225.1101(9)(ii), use the following provision, 

which uses ‘‘Canadian end product’’ in 

paragraph (a), rather than ‘‘Bahrainian end 

product,’’ ‘‘Free Trade Agreement country,’’ 

‘‘Free Trade Agreement country end 

product,’’ ‘‘Moroccan end product,’’ 

‘‘Panamanian end product,’’ and ‘‘Peruvian 

end products’’ in paragraph (a) of the basic 

provision; uses ‘‘Canadian end products’’ in 

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

‘‘Free Trade Agreement country end products 

other than Bahrainian end products, 

Moroccan end products, Panamanian end 

products, or Peruvian end products’’ in 

paragraphs (b)(2) and (c)(2)(ii) of the basic 

provision; and does not use ‘‘Australian or’’ 

in paragraph (c)(2)(i). 

Buy American—Free Trade Agreements— 

Balance of Payments Program Certificate— 

Alternate I (Date) 

(a) Definitions. Canadian end product, 

commercially available off-the-shelf (COTS) 

item, component, domestic end product, 

foreign end product, qualifying country end 

product, and United States, as used in this 

provision, have the meanings given in the 

Buy American—Free Trade Agreements— 

Balance of Payments Program clause of this 

solicitation. 

(b) Evaluation. The Government— 

(1) Will evaluate offers in accordance with 

the policies and procedures of part 225 of the 

Defense Federal Acquisition Regulation 

Supplement; and 

(2) For line items subject to Free Trade 

Agreements, will evaluate offers of qualifying 

country end products or Canadian end 

without regard to the restrictions of the Buy 

American or the Balance of Payments 

Program. 

(c) Certifications and identification of 

country of origin. 

(1) For all line items subject to the Buy 

American—Free Trade Agreements—Balance 

of Payments Program clause of this 

solicitation, the offeror certifies that— 

(i) Each end product, except the end 

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

provision, is a domestic end product; and 

(ii) Components of unknown origin are 

considered to have been mined, produced, or 

manufactured outside the United States or a 

qualifying country. 

(2) The offeror shall identify all end 

products that are not domestic end products. 

(i) The offeror certifies that the following 

supplies are qualifying country (except 

Canadian) end products: 

(Line Item Number) (Country of Origin) 

(ii) The offeror certifies that the following 

supplies are Canadian end products: 

(Line Item Number) (Country of Origin) 

(iii) The following supplies are other 

foreign end products, including end products 

manufactured in the United States that do 

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

end product that is not a COTS item and does 

not meet the component test in paragraph (ii) 

of the definition of domestic end product: 

(Line Item Number) (Country of Origin (If 

known)) 

(End of provision) 

Alternate II. As prescribed in 

225.1101(9)(iii), use the following 

provision, which adds ‘‘South 

Caucasus/Central and South Asian (SC/ 

CASA) state’’ and ‘‘South Caucasus/

Central and South Asian (SC/CASA) 

state end product’’ to paragraph (a), and 

uses different paragraphs (b)(2) and 

(c)(2)(i) than the basic clause. 

Buy American—Free Trade Agreements— 

Balance of Payments Program Certificate— 

Alternate II (Date) 

(a) Definitions. Bahrainian end product, 

commercially available off-the-shelf (COTS) 

item, component, domestic end product, Free 

Trade Agreement country, Free Trade 

Agreement country end product, foreign end 

product, Moroccan end product, 

Panamanian end product, Peruvian end 

product, qualifying country end product, 

South Caucasus/Central and South Asian 

(SC/CASA) state, South Caucasus/Central 

and South Asian (SC/CASA) state end 

product, and United States, as used in this 

provision, have the meanings given in the 

Buy American—Free Trade Agreements— 

Balance of Payments Program clause of this 

solicitation. 

(b) Evaluation. The Government— 

(1) Will evaluate offers in accordance with 

the policies and procedures of part 225 of the 

Defense Federal Acquisition Regulation 

Supplement; and 

(2) For line items subject to Free Trade 

Agreements, will evaluate offers of qualifying 

country end products, SC/CASA state end 

products, or Free Trade Agreement country 

end products other than Bahrainian end 

products, Moroccan end products, 

Panamanian end products, or Peruvian end 

products without regard to the restrictions of 

the Buy American or the Balance of 

Payments Program. 

(c) Certifications and identification of 

country of origin. 

(1) For all line items subject to the Buy 

American—Free Trade Agreements—Balance 

of Payments Program clause of this 

solicitation, the offeror certifies that— 

(i) Each end product, except the end 

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

provision, is a domestic end product; and 

(ii) Components of unknown origin are 

considered to have been mined, produced, or 

manufactured outside the United States or a 

qualifying country. 

(2) The offeror shall identify all end 

products that are not domestic end products. 

(i) The offeror certifies that the following 

supplies are qualifying country (except 

Australian or Canadian) or SC/CASA state 

end products: 

(Line Item Number) (Country of Origin) 

(ii) The offeror certifies that the following 

supplies are Free Trade Agreement country 

end products other than Bahrainian end 

products, Moroccan end products, 

Panamanian end products, or Peruvian end 

products: 

(Line Item Number) (Country of Origin) 

(iii) The following supplies are other 

foreign end products, including end products 

manufactured in the United States that do 

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

end product that is not a COTS item and does 

not meet the component test in paragraph (ii) 

of the definition of domestic end product: 

(Line Item Number) (Country of Origin (If 

known)) 

(End of provision) 

Alternate III. As prescribed in 

225.1101(9)(iv), use the following 

provision, which uses different 

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

(c)(2)(ii) than the basic clause. 

Buy American—Free Trade Agreements— 

Balance of Payments Program Certificate— 

Alternate III (Date) 

(a) Definitions. Canadian end product, 

commercially available off-the-shelf (COTS) 

item, domestic end product, foreign end 

product, qualifying country end product, 

South Caucasus/Central and South Asian 

(SC/CASA) state end product, and United 

States, as used in this provision have the 

meanings given in the Buy American—Free 

Trade Agreements—Balance of Payments 

Program clause of this solicitation. 

(b) Evaluation. The Government— 

(1) Will evaluate offers in accordance with 

the policies and procedures of part 225 of the 


tkelley on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 79, No. 29 / Wednesday, February 12, 2014 / Proposed Rules 8395 

Defense Federal Acquisition Regulation 

Supplement; and 

(2) For line items subject to Free Trade 

Agreements, will evaluate offers of qualifying 

country end products, SC/CASA state end 

products, or Canadian end products without 

regard to the restrictions of the Buy American 

or the Balance of Payments Program. 

(c) Certifications and identification of 

country of origin. 

(1) For all line items subject to the Buy 

American—Free Trade Agreements—Balance 

of Payments Program clause of this 

solicitation, the offeror certifies that— 

(i) Each end product, except the end 

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

provision, is a domestic end product; and 

(ii) Components of unknown origin are 

considered to have been mined, produced, or 

manufactured outside the United States or a 

qualifying country. 

(2) The offeror shall identify all end 

products that are not domestic end products. 

(i) The offeror certifies that the following 

supplies are qualifying country (except 

Canadian) or SC/CASA state end products: 

(Line Item Number) (Country of Origin) 

(ii) The offeror certifies that the following 

supplies are Free Trade Agreement country 

end products other than Bahrainian end 

products, Moroccan end products, 

Panamanian end products, or Peruvian end 

products: 

(Line Item Number) (Country of Origin) 

(iii) The following supplies are other 

foreign end products, including end products 

manufactured in the United States that do 

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

end product that is not a COTS item and does 

not meet the component test in paragraph (ii) 

of the definition of domestic end product: 

(Line Item Number) (Country of Origin (If 

known)) 

(End of provision) 

Alternate IV. As prescribed in 

225.1101(9)(v), use the following 

provision, which adds ‘‘Korean end 

product’’ to paragraph (a) and uses 

‘‘Free Trade Agreement country end 

products other than Bahrainian end 

products, Korean end products, 

Moroccan end products, Panamanian 

end products, or Peruvian end 

products’’ in paragraphs (b)(2) and 

(c)(2)(ii), rather than ‘‘Free Trade 

Agreement country end products other 

than Bahrainian end products, 

Moroccan end products, Panamanian 

end products, or Peruvian end 

products’’ in paragraphs (b)(2) and 

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

Buy American—Free Trade Agreements— 

Balance of Payments Program Certificate— 

Alternate IV (Date) 

(a) Definitions. Bahrainian end product, 

commercially available off-the-shelf (COTS) 

item, component, domestic end product, Free 

Trade Agreement country, Free Trade 

Agreement country end product, foreign end 

product, Korean end product, Moroccan end 

product, Panamanian end product, Peruvian 

end product, qualifying country end product, 

and United States, as used in this provision, 

have the meanings given in the Buy 

American—Free Trade Agreements—Balance 

of Payments Program clause of this 

solicitation. 

(b) Evaluation. The Government— 

(1) Will evaluate offers in accordance with 

the policies and procedures of part 225 of the 

Defense Federal Acquisition Regulation 

Supplement; and 

(2) For line items subject to Free Trade 

Agreements, will evaluate offers of qualifying 

country end products or Free Trade 

Agreement country end products other than 

Bahrainian end products, Korean end 

products, Moroccan end products, 

Panamanian end products, or Peruvian end 

products without regard to the restrictions of 

the Buy American or the Balance of 

Payments Program. 

(c) Certifications and identification of 

country of origin. 

(1) For all line items subject to the Buy 

American—Free Trade Agreements—Balance 

of Payments Program clause of this 

solicitation, the offeror certifies that— 

(i) Each end product, except the end 

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

provision, is a domestic end product; and 

(ii) Components of unknown origin are 

considered to have been mined, produced, or 

manufactured outside the United States or a 

qualifying country. 

(2) The offeror shall identify all end 

products that are not domestic end products. 

(i) The offeror certifies that the following 

supplies are qualifying country (except 

Australian or Canadian) end products: 

(Line Item Number) (Country of Origin) 

(ii) The offeror certifies that the following 

supplies are Free Trade Agreement country 

end products other than Bahrainian end 

products, Korean end products, Moroccan 

end products, Panamanian end products, or 

Peruvian end products: 

(Line Item Number) (Country of Origin) 

(iii) The following supplies are other 

foreign end products, including end products 

manufactured in the United States that do 

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

end product that is not a COTS item and does 

not meet the component test in paragraph (ii) 

of the definition of domestic end product: 

(Line Item Number) (Country of Origin (If 

known)) 

(End of provision) 

Alternate V. As prescribed in 

225.1101(9)(vi), use the following 

provision, which uses different 

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

(c)(2)(ii) than the basic clause. 

Buy American—Free Trade Agreements— 

Balance of Payments Program Certificate— 

Alternate V (Date) 

(a) Definitions. Bahrainian end product, 

commercially available off-the-shelf (COTS) 

item, component, domestic end product, Free 

Trade Agreement country, Free Trade 

Agreement country end product, foreign end 

product, Korean end product, Moroccan end 

product, Panamanian end product, Peruvian 

end product, qualifying country end product, 

South Caucasus/Central and South Asian 

(SC/CASA) state end product, and United 

States, as used in this provision, have the 

meanings given in the Buy American Act— 

Free Trade Agreements—Balance of 

Payments Program clause of this solicitation. 

(b) Evaluation. The Government— 

(1) Will evaluate offers in accordance with 

the policies and procedures of part 225 of the 

Defense Federal Acquisition Regulation 

Supplement; and 

(2) For line items subject to Free Trade 

Agreements, will evaluate offers of qualifying 

country end products, SC/CASA state end 

products, or Free Trade Agreement end 

products other than Bahrainian end products, 

Korean end products, Moroccan end 

products, Panamanian end products, or 

Peruvian end products without regard to the 

restrictions of the Buy American statute or 

the Balance of Payments Program. 

(c) Certifications and identification of 

country of origin. 

(1) For all line items subject to the Buy 

American—Free Trade Agreements—Balance 

of Payments Program clause of this 

solicitation, the offeror certifies that— 

(i) Each end product, except the end 

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

provision, is a domestic end product; and 

(ii) Components of unknown origin are 

considered to have been mined, produced, or 

manufactured outside the United States or a 

qualifying country. 

(2) The offeror shall identify all end 

products that are not domestic end products. 

(i) The offeror certifies that the following 

supplies are qualifying country (except 

Australian or Canadian) or SC/CASA state 

end products: 

(Line Item Number) (Country of Origin) 

(ii) The offeror certifies that the following 

supplies are Free Trade Agreement country 

end products other than Bahrainian end 

products, Korean end products, Moroccan 

end products, Panamanian end products, or 

Peruvian end products: 

(Line Item Number) (Country of Origin) 

(iii) The following supplies are other 

foreign end products, including end products 

manufactured in the United States that do 

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

end product that is not a COTS item and does 

not meet the component test in paragraph (ii) 

of the definition of domestic end product: 

(Line Item Number) (Country of Origin (If 

known)) 

(End of provision) 

■ 10. Amend section 252.225–7036 by— 

■ a. Revising the introductory text, 

clause title and date; and 

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

V. 

252.225–7036 Buy American—Free Trade 

Agreements—Balance of Payments 

Program. 

As prescribed in 225.1101(11)(i), use 

one of the following clauses: 

Basic. As prescribed in 225.1101(10)(i)(A), 

use the following clause. 


tkelley on DSK3SPTVN1PROD with PROPOSALS
8396 Federal Register / Vol. 79, No. 29 / Wednesday, February 12, 2014 / Proposed Rules 

Buy American—Free Trade Agreements— 

Balance of Payments Program—Basic (Date) 

* * * * * 

Alternate I. As prescribed in 

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

which adds ‘‘Canadian end product’’ to 

paragraph (a) and uses a different paragraph 

(c) than the basic clause. 

Buy American—Free Trade Agreements— 

Balance of Payments Program—Alternate I 

(Date) 

(a) Definitions. As used in this clause— 

Bahrainian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Bahrain; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Bahrain into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Canadian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Canada; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Canada into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Commercially available off-the-shelf 

(COTS) item— 

(i) Means any item of supply (including 

construction material) that is— 

(A) A commercial item (as defined in 

paragraph (1) of the definition of 

‘‘commercial item’’ in section 2.101 of the 

Federal Acquisition Regulation); 

(B) Sold in substantial quantities in the 

commercial marketplace; and 

(C) Offered to the Government, under a 

contract or subcontract at any tier, without 

modification, in the same form in which it 

is sold in the commercial marketplace; and 

(ii) Does not include bulk cargo, as defined 

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

products and petroleum products. 

Component means an article, material, or 

supply incorporated directly into an end 

product. 

Domestic end product means— 

(i) An unmanufactured end product that 

has been mined or produced in the United 

States; or 

(ii) An end product manufactured in the 

United States if— 

(A) The cost of its qualifying country 

components and its components that are 

mined, produced, or manufactured in the 

United States exceeds 50 percent of the cost 

of all its components. The cost of 

components includes transportation costs to 

the place of incorporation into the end 

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

duty-free entry certificate is issued). Scrap 

generated, collected, and prepared for 

processing in the United States is considered 

domestic. A component is considered to have 

been mined, produced, or manufactured in 

the United States (regardless of its source in 

fact) if the end product in which it is 

incorporated is manufactured in the United 

States and the component is of a class or kind 

for which the Government has determined 

that— 

(1) Sufficient and reasonably available 

commercial quantities of a satisfactory 

quality are not mined, produced, or 

manufactured in the United States; or 

(2) It is inconsistent with the public 

interest to apply the restrictions of the Buy 

American statute; or 

(B) The end product is a COTS item. 

End product means those articles, 

materials, and supplies to be acquired under 

this contract for public use. 

Foreign end product means an end product 

other than a domestic end product. 

Free Trade Agreement country means 

Australia, Bahrain, Canada, Chile, Colombia, 

Costa Rica, Dominican Republic, El Salvador, 

Guatemala, Honduras, Korea (Republic of), 

Mexico, Morocco, Nicaragua, Panama, Peru, 

or Singapore; 

Free Trade Agreement country end product 

means an article that— 

(i) Is wholly the growth, product, or 

manufacture of a Free Trade Agreement 

country; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in a Free Trade Agreement country into a 

new and different article of commerce with 

a name, character, or use distinct from that 

of the article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

Moroccan end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Morocco; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Morocco into a new and different article 

of commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Panamanian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Panama; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Panama into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Peruvian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Peru; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Peru into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Qualifying country means a country with a 

reciprocal defense procurement 

memorandum of understanding or 

international agreement with the United 

States in which both countries agree to 

remove barriers to purchases of supplies 

produced in the other country or services 

performed by sources of the other country, 

and the memorandum or agreement 

complies, where applicable, with the 

requirements of section 36 of the Arms 

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

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

are qualifying countries: 

Australia 

Austria 

Belgium 

Canada 

Czech Republic 

Denmark 

Egypt 

Finland 

France 

Germany 

Greece 

Israel 

Italy 

Luxembourg 

Netherlands 

Norway 

Poland 

Portugal 

Spain 

Sweden 

Switzerland 

Turkey 

United Kingdom of Great Britain and 

Northern Ireland. 


tkelley on DSK3SPTVN1PROD with PROPOSALS
Federal Register / Vol. 79, No. 29 / Wednesday, February 12, 2014 / Proposed Rules 8397 

Qualifying country component means a 

component mined, produced, or 

manufactured in a qualifying country. 

Qualifying country end product means— 

(i) An unmanufactured end product mined 

or produced in a qualifying country; or 

(ii) An end product manufactured in a 

qualifying country if— 

(A) The cost of the following types of 

components exceeds 50 percent of the cost of 

all its components: 

(1) Components mined, produced, or 

manufactured in a qualifying country. 

(2) Components mined, produced, or 

manufactured in the United States. 

(3) Components of foreign origin of a class 

or kind for which the Government has 

determined that sufficient and reasonably 

available commercial quantities of a 

satisfactory quality are not mined, produced, 

or manufactured in the United States; or 

(B) The end product is a COTS item. 

United States means the 50 States, the 

District of Columbia, and outlying areas. 

(b) Unless otherwise specified, this clause 

applies to all items in the Schedule. 

(c) The Contractor shall deliver under this 

contract only domestic end products unless, 

in its offer, it specified delivery of qualifying 

country, Canadian, or other foreign end 

products in the Buy American—Free Trade 

Agreements—Balance of Payments Program 

Certificate provision of the solicitation. If the 

Contractor certified in its offer that it will 

deliver a qualifying country end product or 

a Canadian end product, the Contractor shall 

deliver a qualifying country end product, a 

Canadian end product, or, at the Contractor’s 

option, a domestic end product. 

(d) The contract price does not include 

duty for end products or components for 

which the Contractor will claim duty-free 

entry. 

(End of clause) 

Alternate II. As prescribed in 

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

clause, which adds ‘‘South Caucasus/

Central and South Asian (SC/CASA) 

state’’ and ‘‘South Caucasus/Central and 

South Asian (SC/CASA) state end 

product’’ to paragraph (a), and uses a 

different paragraph (c) than the basic 

clause. 

Buy American—Free Trade Agreements— 

Balance of Payments Program—Alternate II 

(Date) 

(a) Definitions. As used in this clause— 

Bahrainian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Bahrain; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Bahrain into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Commercially available off-the-shelf 

(COTS) item— 

(i) Means any item of supply (including 

construction material) that is— 

(A) A commercial item (as defined in 

paragraph (1) of the definition of 

‘‘commercial item’’ in section 2.101 of the 

Federal Acquisition Regulation); 

(B) Sold in substantial quantities in the 

commercial marketplace; and 

(C) Offered to the Government, under a 

contract or subcontract at any tier, without 

modification, in the same form in which it 

is sold in the commercial marketplace; and 

(ii) Does not include bulk cargo, as defined 

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

products and petroleum products. 

Component means an article, material, or 

supply incorporated directly into an end 

product. 

Domestic end product means— 

(i) An unmanufactured end product that 

has been mined or produced in the United 

States; or 

(ii) An end product manufactured in the 

United States if— 

(A) The cost of its qualifying country 

components and its components that are 

mined, produced, or manufactured in the 

United States exceeds 50 percent of the cost 

of all its components. The cost of 

components includes transportation costs to 

the place of incorporation into the end 

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

duty-free entry certificate is issued). Scrap 

generated, collected, and prepared for 

processing in the United States is considered 

domestic. A component is considered to have 

been mined, produced, or manufactured in 

the United States (regardless of its source in 

fact) if the end product in which it is 

incorporated is manufactured in the United 

States and the component is of a class or kind 

for which the Government has determined 

that— 

(1) Sufficient and reasonably available 

commercial quantities of a satisfactory 

quality are not mined, produced, or 

manufactured in the United States; or 

(2) It is inconsistent with the public 

interest to apply the restrictions of the Buy 

American statute; or 

(B) The end product is a COTS item. 

End product means those articles, 

materials, and supplies to be acquired under 

this contract for public use. 

Foreign end product means an end product 

other than a domestic end product. 

Free Trade Agreement country means 

Australia, Bahrain, Canada, Chile, Colombia, 

Costa Rica, Dominican Republic, El Salvador, 

Guatemala, Honduras, Korea (Republic of), 

Mexico, Morocco, Nicaragua, Panama, Peru, 

or Singapore; 

Free Trade Agreement country end product 

means an article that— 

(i) Is wholly the growth, product, or 

manufacture of a Free Trade Agreement 

country; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in a Free Trade Agreement country into a 

new and different article of commerce with 

a name, character, or use distinct from that 

of the article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

Moroccan end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Morocco; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Morocco into a new and different article 

of commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Panamanian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Panama; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Panama into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Peruvian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Peru; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Peru into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Qualifying country means a country with a 

reciprocal defense procurement 

memorandum of understanding or 

international agreement with the United 

States in which both countries agree to 

remove barriers to purchases of supplies 

produced in the other country or services 

performed by sources of the other country, 


tkelley on DSK3SPTVN1PROD with PROPOSALS
8398 Federal Register / Vol. 79, No. 29 / Wednesday, February 12, 2014 / Proposed Rules 

and the memorandum or agreement 

complies, where applicable, with the 

requirements of section 36 of the Arms 

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

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

are qualifying countries: 

Australia 

Austria 

Belgium 

Canada 

Czech Republic 

Denmark 

Egypt 

Finland 

France 

Germany 

Greece 

Israel 

Italy 

Luxembourg 

Netherlands 

Norway 

Poland 

Portugal 

Spain 

Sweden 

Switzerland 

Turkey 

United Kingdom of Great Britain and 

Northern Ireland. 

Qualifying country component means a 

component mined, produced, or 

manufactured in a qualifying country. 

Qualifying country end product means— 

(i) An unmanufactured end product mined 

or produced in a qualifying country; or 

(ii) An end product manufactured in a 

qualifying country if— 

(A) The cost of the following types of 

components exceeds 50 percent of the cost of 

all its components: 

(1) Components mined, produced, or 

manufactured in a qualifying country. 

(2) Components mined, produced, or 

manufactured in the United States. 

(3) Components of foreign origin of a class 

or kind for which the Government has 

determined that sufficient and reasonably 

available commercial quantities of a 

satisfactory quality are not mined, produced, 

or manufactured in the United States; or 

(B) The end product is a COTS item. 

South Caucasus/Central and South Asian 

(SC/CASA) state means Armenia, Azerbaijan, 

Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 

Tajikistan, Turkmenistan, or Uzbekistan. 

South Caucasus/Central and South Asian 

(SC/CASA) state end product means an 

article that— 

(i) Is wholly the growth, product, or 

manufacture of an SC/CASA state; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in an SC/CASA state into a new and different 

article of commerce with a name, character, 

or use distinct from that of the article or 

articles from which it was transformed. The 

term refers to a product offered for purchase 

under a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

United States means the 50 States, the 

District of Columbia, and outlying areas. 

(b) Unless otherwise specified, this clause 

applies to all items in the Schedule. 

(c) The Contractor shall deliver under this 

contract only domestic end products unless, 

in its offer, it specified delivery of qualifying 

country end products, SC/CASA state end 

products, Free Trade Agreement country end 

products other than Bahrainian end products, 

Moroccan end products, Panamanian end 

products, or Peruvian end products, or other 

foreign end products in the Buy American— 

Free Trade Agreements—Balance of 

Payments Program Certificate provision of 

the solicitation. If the Contractor certified in 

its offer that it will deliver a qualifying 

country end product, SC/CASA state end 

products, or a Free Trade Agreement country 

end product other than a Bahrainian end 

product, a Moroccan end product, a 

Panamanian end product, or a Peruvian end 

product, the Contractor shall deliver a 

qualifying country end product, an SC/CASA 

state end product, a Free Trade Agreement 

country end product other than a Bahrainian 

end product, a Moroccan end product, a 

Panamanian end product, or a Peruvian end 

product or, at the Contractor’s option, a 

domestic end product. 

(d) The contract price does not include 

duty for end products or components for 

which the Contractor will claim duty-free 

entry. 

(End of clause) 

Alternate III. As prescribed in 

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

clause, which adds ‘‘Canadian end 

product’’, ‘‘South Caucasus/Central and 

South Asian (SC/CASA) state’’, and 

‘‘South Caucasus/Central and South 

Asian (SC/CASA) state end product’’ to 

paragraph (a) and uses a different 

paragraph (c) than the basic clause. 

Buy American—Free Trade Agreements— 

Balance of Payments Program—Alternate III 

(Date) 

(a) Definitions. As used in this clause— 

Bahrainian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Bahrain; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Bahrain into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Canadian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Canada; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Canada into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Commercially available off-the-shelf 

(COTS) item— 

(i) Means any item of supply (including 

construction material) that is— 

(A) A commercial item (as defined in 

paragraph (1) of the definition of 

‘‘commercial item’’ in section 2.101 of the 

Federal Acquisition Regulation); 

(B) Sold in substantial quantities in the 

commercial marketplace; and 

(C) Offered to the Government, under a 

contract or subcontract at any tier, without 

modification, in the same form in which it 

is sold in the commercial marketplace; and 

(ii) Does not include bulk cargo, as defined 

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

products and petroleum products. 

Component means an article, material, or 

supply incorporated directly into an end 

product. 

Domestic end product means— 

(i) An unmanufactured end product that 

has been mined or produced in the United 

States; or 

(ii) An end product manufactured in the 

United States if— 

(A) The cost of its qualifying country 

components and its components that are 

mined, produced, or manufactured in the 

United States exceeds 50 percent of the cost 

of all its components. The cost of 

components includes transportation costs to 

the place of incorporation into the end 

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

duty-free entry certificate is issued). Scrap 

generated, collected, and prepared for 

processing in the United States is considered 

domestic. A component is considered to have 

been mined, produced, or manufactured in 

the United States (regardless of its source in 

fact) if the end product in which it is 

incorporated is manufactured in the United 

States and the component is of a class or kind 

for which the Government has determined 

that— 

(1) Sufficient and reasonably available 

commercial quantities of a satisfactory 

quality are not mined, produced, or 

manufactured in the United States; or 

(2) It is inconsistent with the public 

interest to apply the restrictions of the Buy 

American statute; or 

(B) The end product is a COTS item. 

End product means those articles, 

materials, and supplies to be acquired under 

this contract for public use. 

Foreign end product means an end product 

other than a domestic end product. 

Free Trade Agreement country means 

Australia, Bahrain, Canada, Chile, Colombia, 

Costa Rica, Dominican Republic, El Salvador, 

Guatemala, Honduras, Korea (Republic of), 

Mexico, Morocco, Nicaragua, Panama, Peru, 

or Singapore; 


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Free Trade Agreement country end product 

means an article that— 

(i) Is wholly the growth, product, or 

manufacture of a Free Trade Agreement 

country; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in a Free Trade Agreement country into a 

new and different article of commerce with 

a name, character, or use distinct from that 

of the article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

Moroccan end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Morocco; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Morocco into a new and different article 

of commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Panamanian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Panama; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Panama into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Peruvian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Peru; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Peru into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Qualifying country means a country with a 

reciprocal defense procurement 

memorandum of understanding or 

international agreement with the United 

States in which both countries agree to 

remove barriers to purchases of supplies 

produced in the other country or services 

performed by sources of the other country, 

and the memorandum or agreement 

complies, where applicable, with the 

requirements of section 36 of the Arms 

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

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

are qualifying countries: 

Australia 

Austria 

Belgium 

Canada 

Czech Republic 

Denmark 

Egypt 

Finland 

France 

Germany 

Greece 

Israel 

Italy 

Luxembourg 

Netherlands 

Norway 

Poland 

Portugal 

Spain 

Sweden 

Switzerland 

Turkey 

United Kingdom of Great Britain and 

Northern Ireland. 

Qualifying country component means a 

component mined, produced, or 

manufactured in a qualifying country. 

Qualifying country end product means— 

(i) An unmanufactured end product mined 

or produced in a qualifying country; or 

(ii) An end product manufactured in a 

qualifying country if— 

(A) The cost of the following types of 

components exceeds 50 percent of the cost of 

all its components: 

(1) Components mined, produced, or 

manufactured in a qualifying country. 

(2) Components mined, produced, or 

manufactured in the United States. 

(3) Components of foreign origin of a class 

or kind for which the Government has 

determined that sufficient and reasonably 

available commercial quantities of a 

satisfactory quality are not mined, produced, 

or manufactured in the United States; or 

(B) The end product is a COTS item. 

South Caucasus/Central and South Asian 

(SC/CASA) state means Armenia, Azerbaijan, 

Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 

Tajikistan, Turkmenistan, or Uzbekistan. 

South Caucasus/Central and South Asian 

(SC/CASA) state end product means an 

article that— 

(i) Is wholly the growth, product, or 

manufacture of an SC/CASA state; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in an SC/CASA state into a new and different 

article of commerce with a name, character, 

or use distinct from that of the article or 

articles from which it was transformed. The 

term refers to a product offered for purchase 

under a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

United States means the 50 States, the 

District of Columbia, and outlying areas. 

(b) Unless otherwise specified, this clause 

applies to all items in the Schedule. 

(c) The Contractor shall deliver under this 

contract only domestic end products unless, 

in its offer, it specified delivery of qualifying 

country end products, SC/CASA state end 

products, Canadian end products, or other 

foreign end products in the Buy American— 

Free Trade Agreements—Balance of 

Payments Program Certificate provision of 

the solicitation. If the Contractor certified in 

its offer that it will deliver a qualifying 

country end product, SC/CASA state end 

products, or a Canadian end product, the 

Contractor shall deliver a qualifying country 

end product, an SC/CASA state end product, 

a Canadian end product or, at the 

Contractor’s option, a domestic end product. 

(d) The contract price does not include 

duty for end products or components for 

which the Contractor will claim duty-free 

entry. 

(End of clause) 

Alternate IV. As prescribed in 

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

clause, which adds ‘‘Korean end 

product’’ to paragraph (a), and uses a 

different paragraph (c) than the basic 

clause. 

Buy American—Free Trade Agreements— 

Balance of Payments Program—Alternate IV 

(Date) 

(a) Definitions. As used in this clause— 

Bahrainian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Bahrain; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Bahrain into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Commercially available off-the-shelf 

(COTS) item— 

(i) Means any item of supply (including 

construction material) that is— 

(A) A commercial item (as defined in 

paragraph (1) of the definition of 

‘‘commercial item’’ in section 2.101 of the 

Federal Acquisition Regulation); 

(B) Sold in substantial quantities in the 

commercial marketplace; and 

(C) Offered to the Government, under a 

contract or subcontract at any tier, without 


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modification, in the same form in which it 

is sold in the commercial marketplace; and 

(ii) Does not include bulk cargo, as defined 

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

products and petroleum products. 

Component means an article, material, or 

supply incorporated directly into an end 

product. 

Domestic end product means— 

(i) An unmanufactured end product that 

has been mined or produced in the United 

States; or 

(ii) An end product manufactured in the 

United States if— 

(A) The cost of its qualifying country 

components and its components that are 

mined, produced, or manufactured in the 

United States exceeds 50 percent of the cost 

of all its components. The cost of 

components includes transportation costs to 

the place of incorporation into the end 

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

duty-free entry certificate is issued). Scrap 

generated, collected, and prepared for 

processing in the United States is considered 

domestic. A component is considered to have 

been mined, produced, or manufactured in 

the United States (regardless of its source in 

fact) if the end product in which it is 

incorporated is manufactured in the United 

States and the component is of a class or kind 

for which the Government has determined 

that— 

(1) Sufficient and reasonably available 

commercial quantities of a satisfactory 

quality are not mined, produced, or 

manufactured in the United States; or 

(2) It is inconsistent with the public 

interest to apply the restrictions of the Buy 

American statute; or 

(B) The end product is a COTS item. 

End product means those articles, 

materials, and supplies to be acquired under 

this contract for public use. 

Foreign end product means an end product 

other than a domestic end product. 

Free Trade Agreement country means 

Australia, Bahrain, Canada, Chile, Colombia, 

Costa Rica, Dominican Republic, El Salvador, 

Guatemala, Honduras, Korea (Republic of), 

Mexico, Morocco, Nicaragua, Panama, Peru, 

or Singapore; 

Free Trade Agreement country end product 

means an article that— 

(i) Is wholly the growth, product, or 

manufacture of a Free Trade Agreement 

country; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in a Free Trade Agreement country into a 

new and different article of commerce with 

a name, character, or use distinct from that 

of the article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

Korean end product means an article that— 

(i) Is wholly the growth, product, or 

manufacture of Korea; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Korea (Republic of) into a new and 

different article of commerce with a name, 

character, or use distinct from that of the 

article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product, includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

Moroccan end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Morocco; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Morocco into a new and different article 

of commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Panamanian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Panama; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Panama into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Peruvian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Peru; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Peru into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Qualifying country means a country with a 

reciprocal defense procurement 

memorandum of understanding or 

international agreement with the United 

States in which both countries agree to 

remove barriers to purchases of supplies 

produced in the other country or services 

performed by sources of the other country, 

and the memorandum or agreement 

complies, where applicable, with the 

requirements of section 36 of the Arms 

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

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

are qualifying countries: 

Australia 

Austria 

Belgium 

Canada 

Czech Republic 

Denmark 

Egypt 

Finland 

France 

Germany 

Greece 

Israel 

Italy 

Luxembourg 

Netherlands 

Norway 

Poland 

Portugal 

Spain 

Sweden 

Switzerland 

Turkey 

United Kingdom of Great Britain and 

Northern Ireland. 

Qualifying country component means a 

component mined, produced, or 

manufactured in a qualifying country. 

Qualifying country end product means— 

(i) An unmanufactured end product mined 

or produced in a qualifying country; or 

(ii) An end product manufactured in a 

qualifying country if— 

(A) The cost of the following types of 

components exceeds 50 percent of the cost of 

all its components: 

(1) Components mined, produced, or 

manufactured in a qualifying country. 

(2) Components mined, produced, or 

manufactured in the United States. 

(3) Components of foreign origin of a class 

or kind for which the Government has 

determined that sufficient and reasonably 

available commercial quantities of a 

satisfactory quality are not mined, produced, 

or manufactured in the United States; or 

(B) The end product is a COTS item. 

United States means the 50 States, the 

District of Columbia, and outlying areas. 

(b) Unless otherwise specified, this clause 

applies to all items in the Schedule. 

(c) The Contractor shall deliver under this 

contract only domestic end products unless, 

in its offer, it specified delivery of qualifying 

country end products, Free Trade Agreement 

country end products other than Bahrainian 

end products, Korean end products, 

Moroccan end products, Panamanian end 

products, or Peruvian end products, or other 

foreign end products in the Buy American— 

Free Trade Agreements—Balance of 

Payments Program Certificate provision of 

the solicitation. If the Contractor certified in 

its offer that it will deliver a qualifying 

country end product or a Free Trade 

Agreement country end product other than a 

Bahrainian end product, a Korean end 

product, a Moroccan end product, a 

Panamanian end product, or a Peruvian end 


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product, the Contractor shall deliver a 

qualifying country end product, a Free Trade 

Agreement country end product other than a 

Bahrainian end product, a Korean end 

product, a Moroccan end product, a 

Panamanian end product, or a Peruvian end 

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

domestic end product. 

(d) The contract price does not include 

duty for end products or components for 

which the Contractor will claim duty-free 

entry. 

(End of clause) 

Alternate V. As prescribed in 

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

clause, which adds ‘‘Korean end 

product’’, ‘‘South Caucasus/Central and 

South Asian (SC/CASA) state’’, and 

‘‘South Caucasus/Central and South 

Asian (SC/CASA) state end product’’ to 

paragraph (a), and uses a different 

paragraph (c) than the basic clause. 

Buy American—Free Trade Agreements— 

Balance of Payments Program—Alternate V 

(Date) 

(a) Definitions. As used in this clause— 

Bahrainian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Bahrain; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Bahrain into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Commercially available off-the-shelf 

(COTS) item— 

(i) Means any item of supply (including 

construction material) that is— 

(A) A commercial item (as defined in 

paragraph (1) of the definition of 

‘‘commercial item’’ in section 2.101 of the 

Federal Acquisition Regulation); 

(B) Sold in substantial quantities in the 

commercial marketplace; and 

(C) Offered to the Government, under a 

contract or subcontract at any tier, without 

modification, in the same form in which it 

is sold in the commercial marketplace; and 

(ii) Does not include bulk cargo, as defined 

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

products and petroleum products. 

Component means an article, material, or 

supply incorporated directly into an end 

product. 

Domestic end product means— 

(i) An unmanufactured end product that 

has been mined or produced in the United 

States; or 

(ii) An end product manufactured in the 

United States if— 

(A) The cost of its qualifying country 

components and its components that are 

mined, produced, or manufactured in the 

United States exceeds 50 percent of the cost 

of all its components. The cost of 

components includes transportation costs to 

the place of incorporation into the end 

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

duty-free entry certificate is issued). Scrap 

generated, collected, and prepared for 

processing in the United States is considered 

domestic. A component is considered to have 

been mined, produced, or manufactured in 

the United States (regardless of its source in 

fact) if the end product in which it is 

incorporated is manufactured in the United 

States and the component is of a class or kind 

for which the Government has determined 

that— 

(1) Sufficient and reasonably available 

commercial quantities of a satisfactory 

quality are not mined, produced, or 

manufactured in the United States; or 

(2) It is inconsistent with the public 

interest to apply the restrictions of the Buy 

American statute; or 

(B) The end product is a COTS item. 

End product means those articles, 

materials, and supplies to be acquired under 

this contract for public use. 

Foreign end product means an end product 

other than a domestic end product. 

Free Trade Agreement country means 

Australia, Bahrain, Canada, Chile, Colombia, 

Costa Rica, Dominican Republic, El Salvador, 

Guatemala, Honduras, Korea (Republic of), 

Mexico, Morocco, Nicaragua, Panama, Peru, 

or Singapore; 

Free Trade Agreement country end product 

means an article that— 

(i) Is wholly the growth, product, or 

manufacture of a Free Trade Agreement 

country; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in a Free Trade Agreement country into a 

new and different article of commerce with 

a name, character, or use distinct from that 

of the article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

Korean end product means an article that— 

(i) Is wholly the growth, product, or 

manufacture of Korea; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Korea (Republic of) into a new and 

different article of commerce with a name, 

character, or use distinct from that of the 

article or articles from which it was 

transformed. The term refers to a product 

offered for purchase under a supply contract, 

but for purposes of calculating the value of 

the end product, includes services (except 

transportation services) incidental to its 

supply, provided that the value of those 

incidental services does not exceed the value 

of the product itself. 

Moroccan end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Morocco; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Morocco into a new and different article 

of commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Panamanian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Panama; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Panama into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Peruvian end product means an article 

that— 

(i) Is wholly the growth, product, or 

manufacture of Peru; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in Peru into a new and different article of 

commerce with a name, character, or use 

distinct from that of the article or articles 

from which it was transformed. The term 

refers to a product offered for purchase under 

a supply contract, but for purposes of 

calculating the value of the end product 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

Qualifying country means a country with a 

reciprocal defense procurement 

memorandum of understanding or 

international agreement with the United 

States in which both countries agree to 

remove barriers to purchases of supplies 

produced in the other country or services 

performed by sources of the other country, 

and the memorandum or agreement 

complies, where applicable, with the 

requirements of section 36 of the Arms 

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

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

are qualifying countries: 

Australia 

Austria 

Belgium 

Canada 

Czech Republic 

Denmark 

Egypt 


tkelley on DSK3SPTVN1PROD with PROPOSALS
8402 Federal Register / Vol. 79, No. 29 / Wednesday, February 12, 2014 / Proposed Rules 

Finland 

France 

Germany 

Greece 

Israel 

Italy 

Luxembourg 

Netherlands 

Norway 

Poland 

Portugal 

Spain 

Sweden 

Switzerland 

Turkey 

United Kingdom of Great Britain and 

Northern Ireland. 

Qualifying country component means a 

component mined, produced, or 

manufactured in a qualifying country. 

Qualifying country end product means— 

(i) An unmanufactured end product mined 

or produced in a qualifying country; or 

(ii) An end product manufactured in a 

qualifying country if— 

(A) The cost of the following types of 

components exceeds 50 percent of the cost of 

all its components: 

(1) Components mined, produced, or 

manufactured in a qualifying country. 

(2) Components mined, produced, or 

manufactured in the United States. 

(3) Components of foreign origin of a class 

or kind for which the Government has 

determined that sufficient and reasonably 

available commercial quantities of a 

satisfactory quality are not mined, produced, 

or manufactured in the United States; or 

(B) The end product is a COTS item. 

South Caucasus/Central and South Asian 

(SC/CASA) state means Armenia, Azerbaijan, 

Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 

Tajikistan, Turkmenistan, or Uzbekistan. 

South Caucasus/Central and South Asian 

(SC/CASA) state end product means an 

article that— 

(i) Is wholly the growth, product, or 

manufacture of an SC/CASA state; or 

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

whole or in part of materials from another 

country, has been substantially transformed 

in an SC/CASA state into a new and different 

article of commerce with a name, character, 

or use distinct from that of the article or 

articles from which it was transformed. The 

term refers to a product offered for purchase 

under a supply contract, but for purposes of 

calculating the value of the end product, 

includes services (except transportation 

services) incidental to its supply, provided 

that the value of those incidental services 

does not exceed the value of the product 

itself. 

United States means the 50 States, the 

District of Columbia, and outlying areas. 

(b) Unless otherwise specified, this clause 

applies to all items in the Schedule. 

(c) The Contractor shall deliver under this 

contract only domestic end products unless, 

in its offer, it specified delivery of qualifying 

country end products, SC/CASA state end 

products, Free Trade Agreement country end 

products other than Bahrainian end products, 

Korean end products, Moroccan end 

products, Panamanian end products, or 

Peruvian end products, or other foreign end 

products in the Buy American—Free Trade 

Agreements—Balance of Payments Program 

Certificate provision of the solicitation. If the 

Contractor certified in its offer that it will 

deliver a qualifying country end product, SC/ 

CASA state end products, or a Free Trade 

Agreement country end product other than a 

Bahrainian end product, a Korean end 

product, a Moroccan end product, a 

Panamanian end product, or a Peruvian end 

product, the Contractor shall deliver a 

qualifying country end product, an SC/CASA 

state end product, a Free Trade Agreement 

country end product other than a Bahrainian 

end product, a Korean end product, a 

Moroccan end product, a Panamanian end 

product, or a Peruvian end product or, at the 

Contractor’s option, a domestic end product. 

(d) The contract price does not include 

duty for end products or components for 

which the Contractor will claim duty-free 

entry. 

(End of clause) 

[FR Doc. 2014–02928 Filed 2–6–14; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Chapter 2 

[Docket No. DARS–2014–0012] 

Review of Statutory and Regulatory 

Requirements 

AGENCY: Department of Defense. 

ACTION: Request for public comments. 

SUMMARY: The Director of Defense 

Procurement and Acquisition Policy 

(DPAP) is currently conducting an 

assessment to identify impacts 

experienced by industry resulting from 

contracting statutes. 

DATES: Submit written comments to the 

address shown below on or before 

March 14, 2014. Comments received 

will be considered by DoD in the 

formation of a recommendation to the 

Secretary of Defense if a revision to the 

definition is necessary and appropriate. 

ADDRESSES: Submit comments to: Mr. 

Michael Canales, Room 5E621, 3060 

Defense Pentagon, Washington, DC 

20301–3060. Comments may also be 

submitted by fax at (703) 614–1254, or 

by email at michael.j.canales4.civ@

mail.mil. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Michael Canales, DPAP/CPIC, by 

telephone at (703) 695–8571, or by 

email at michael.j.canales4.civ@

mail.mil. 

SUPPLEMENTARY INFORMATION: The 

purpose of the assessment is to support 

an internal Department of Defense (DoD) 

effort to reduce compliance impacts that 

do not achieve the benefits intended by 

contracting statutes. As part of this 

assessment, DPAP would like to receive 

the views of interested parties 

identifying particular impacts 

associated with specific contracting 

statutes. There is an extensive body of 

law and regulation that govern the 

Department’s business. We are seeking 

to better understand the impact 

experienced by industry resulting from 

requirements based on statute. Our 

initial review identified approximately 

400 DFARS requirements based solely 

on statute. The Director, DPAP, is 

soliciting public input to identify 

particular impacts associated with 

specific contracting statutes, with 

reference to— 

• Particular impacts associated with 

specific contracting statutes; 

• Why the identified impact does not 

achieve the intended benefit of the 

identified legislation, or why the 

intended benefit is not helpful to the 

Department; and 

• Any recommendations for 

alternative approaches to achieve the 

intended benefit of the identified 

legislation. 

We are also interested in candidate 

DFARS and component supplements 

requirements that, although not based in 

statute, warrant similar consideration. 

Manuel Quinones, 

Editor, Defense Acquisition Regulations 

System. 

[FR Doc. 2014–03038 Filed 2–11–14; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF THE INTERIOR 

Fish and Wildlife Service 

50 CFR Part 17 

[Docket No. FWS–R1–ES–2010–0071; 

4500030114] 

RIN 1018–AX16 

Endangered and Threatened Wildlife 

and Plants; Designation of Critical 

Habitat for Lepidium papilliferum 

AGENCY: Fish and Wildlife Service, 

Interior. 

ACTION: Revised proposed rule; 

reopening of comment period. 

SUMMARY: We, the U.S. Fish and 

Wildlife Service (Service), are amending 

our proposal to designate critical habitat 

for Lepidium papilliferum (slickspot 

peppergrass) under the Endangered 

Species Act (Act). In total, 

approximately 24,808 hectares (61,301 

acres) in Ada, Payette, Elmore, and 


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