Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Rules and Regulations 31649

Buy American Act—North American Free

Trade Agreement Implementation Act—

Balance of Payments Program Provision (Jun

1996)

(a) Each end product being offered, except

those listed in paragraph (b) of this provision,

is a domestic end product (as defined in the

clause entitled ‘‘Buy American Act—North

American Free Trade Agreement

Implementation Act—Balance of Payments

Program’’). Components of unknown origin

have been considered to have been mined,

produced, or manufactured outside the

United States.

* * * * *

(c) Offers will be evaluated by giving

certain preferences to domestic end products

or NAFTA country end products over other

end products. In order to obtain these

preferences in the evaluation of each

excluded end product listed in paragraph (b)

of this provision, offerors must identify

below those excluded end products that are

NAFTA country end products. Products that

are not identified below will not be deemed

NAFTA country end products.

The following supplies qualify as ‘‘NAFTA

country end products’’ as that term is defined

in the clause entitled ‘‘Buy American Act—

North American Free Trade Agreement

Implementation Act—Balance of Payments

Program’’:

Line item no. Country of origin

(List as necessary)

(d) Offers will be evaluated in accordance

with Part 25 of the Federal Acquisition

Regulation. In addition, if this solicitation is

for supplies for use outside the United States,

an evaluation factor of 50 percent will be

applied to offers of end products that are not

domestic or NAFTA country end products.

(End of provision)

Alternate I (JUN 1996). As prescribed in

25.408(a)(3), substitute the following

paragraph (c) for paragraph (c) of the basic

provision:

(c) Offers will be evaluated by giving

certain preferences to domestic end products

or Canadian end products over other end

products. In order to obtain these preferences

in the evaluation of each excluded end

product listed in paragraph (b) of this

provision, offerors must identify below those

excluded end products that are Canadian end

products. Products that are not identified

below will not be deemed Canadian end

products.

The following supplies qualify as

‘‘Canadian end products’’ as that term is

defined in the clause entitled ‘‘Buy American

Act—North American Free Trade Agreement

Implementation Act—Balance of Payments

Program’’:

lllllllllllllllllllll

(Insert line item numbers)

9. Section 52.225–21 is amended by

revising the date of the clause to read

‘‘(JUN 1996)’’; in the fourth sentence of

paragraph (c) by revising the word

‘‘certifying’’ to read ‘‘specifying’’;

removing paragraph (d) of the clause;

and by adding Alternate I to read as

follows:

52.225–21 Buy American Act—North

American Free Trade Agreement

Implementation Act—Balance of Payments

Program.

* * * * *

Buy American Act—North American Free

Trade Agreement Implementation Act—

Balance of Payments Program (Jun 1996)

* * * * *

Alternate I (JUN 1996). As prescribed in

25.408(a)(4), add the following definition to

paragraph (a) and substitute the following

paragraph (c) for paragraph (c) of the basic

clause:

Canadian end product means an article

that (1) is wholly the growth, product, or

manufacture of Canada, or (2) in the case of

an article which consists in whole or in part

of materials from another country or

instrumentality, 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 that of

the product itself.

(c) The Contracting Officer has determined

that NAFTA applies to this acquisition.

Unless otherwise specified, NAFTA applies

to all items in the schedule. The Contractor

agrees to deliver under this contract only

domestic end products unless, in its offer, it

specifies delivery of foreign end products in

the provision entitled ‘‘Buy American Act—

North American Free Trade Agreement

Implementation Act—Balance of Payments

Program Certificate.’’ An offer specifying that

a Canadian end product will be supplied

requires the Contractor to supply a Canadian

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

domestic end product.

10. Section 52.225–22 is added to

read as follows:

52.225–22 Balance of Payments Program—

Construction Materials—NAFTA.

As prescribed in 25.305(c)(2), insert

the following clause:

Balance of Payments Program—

Construction Materials—NAFTA (Jun 1996)

(a) Definitions. As used in this clause—

Components means those articles,

materials, and supplies incorporated directly

into construction materials.

Construction material means an article,

material, or supply brought to the

construction site for incorporation into the

building or work. Construction material also

includes an item brought to the site preassembled from articles, materials, or

supplies. However, emergency life safety

systems, such as emergency lighting, fire

alarm, and audio evacuation systems, which

are discrete systems incorporated into a

public building or work and which are

produced as a complete system, shall be

evaluated as a single and distinct

construction material regardless of when or

how the individual parts or components of

such systems are delivered to the

construction site.

Domestic construction material means (1)

an unmanufactured construction material

mined or produced in the United States, or

(2) a construction material manufactured in

the United States, if the cost of its

components mined, produced, or

manufactured in the United States exceeds

50 percent of the cost of all its components.

Components of foreign origin of the same

class or kind as the construction materials

determined to be unavailable pursuant to

subparagraph 25.202(a)(3) of the Federal

Acquisition Regulation shall be treated as

domestic.

NAFTA country construction material

means a construction material that (1) is

wholly the growth, product, or manufacture

of a NAFTA country, or (2) in the case of a

construction material which consists in

whole or in part of materials from another

country or instrumentality, has been

substantially transformed in a NAFTA

country into a new and different construction

material distinct from the materials from

which it was transformed.

North American Free Trade Agreement

(NAFTA) country means Canada and Mexico.

(b) The Balance of Payments Program

provides that the Government give preference

to domestic construction material.

(c) The Contractor agrees that only

domestic construction material or NAFTA

country construction material will be used by

the Contractor, subcontractors, material men,

and suppliers in the performance of this

contract, except for other foreign

construction materials, if any, listed in this

contract.

(End of clause)

[FR Doc. 96–14529 Filed 6–19–96; 8:45 am]

BILLING CODE 6820–EP–P

48 CFR Part 25

[FAC 90–39; FAR Case 95–030; Item XV]

RIN 9000–AG96

Federal Acquisition Regulation;

Caribbean Basin Countries

AGENCIES: Department of Defense (DOD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council have

agreed on a final rule to amend the

Federal Acquisition Regulation (FAR) to

implement the extension by the U.S.

Trade Representative of the date of

eligibility under the Trade Agreements
31650 Federal Register / Vol. 61, No. 120 / Thursday, June 20, 1996 / Rules and Regulations

Act for products of Caribbean Basin

countries. This regulatory action was

not subject to Office of Management and

Budget review under Executive Order

12866, dated September 30, 1993, and is

not a major rule under 5 U.S.C. 804.

EFFECTIVE DATE: September 30, 1995.

FOR FURTHER INFORMATION CONTACT: Mr.

Peter O’Such at (202) 501–1759 in

reference to this FAR case. For general

information, contact the FAR

Secretariat, Room 4037, GS Building,

Washington, DC 20405 (202) 501–4755.

Please cite FAC 90–39, FAR case 95–

030.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends FAR 25.402(b)

by changing the date ‘‘1995’’ to ‘‘1996.’’

Products of Caribbean Basin countries

were to be treated as eligible products

until September 30, 1995, unless

otherwise extended by the U.S. Trade

Representative (USTR) by means of a

Federal Register notice. On October 3,

1995, the USTR published an extension

through September 30, 1996 (60 FR

51822).

B. Regulatory Flexibility Act

The final rule does not constitute a

significant FAR revision within the

meaning of FAR 1.501 and Public Law

98–577, and publication for public

comments is not required. Therefore,

the Regulatory Flexibility Act does not

apply. However, comments from small

entities concerning the affected FAR

subpart will be considered in

accordance with 5 U.S.C. 610. Such

comments must be submitted separately

and cite 5 U.S.C. 601, et seq. (FAC 90–

39, FAR case 95–030), in

correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

FAR do not impose recordkeeping or

information collection requirements, or

collections of information from offerors,

contractors, or members of the public

which require the approval of the Office

of Management and Budget under 44

U.S.C. 3501, et seq.

List of Subjects in 48 CFR Part 25

Government procurement.

Dated: June 4, 1996.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Part 25 is amended

as set forth below:

PART 25—FOREIGN ACQUISITION

1. The authority citation for 48 CFR

Part 25 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C.

chapter 137; and 42 U.S.C. 2473(c).

§ 25.402 [Amended]

2. Section 25.402 is amended in the

first sentence of paragraph (b) by

removing ‘‘(see 51 FR 6964–6965,

February 27, 1986)’’; and in the second

sentence by revising ‘‘1995’’ to read

‘‘1996’’.

[FR Doc. 96–14530 Filed 6–19–96; 8:45 am]

BILLING CODE 6820–EP–P

48 CFR Parts 25 and 52

[FAC 90–39; FAR Case 92–048; Item XVI]

RIN 9000–AF83

Federal Acquisition Regulation;

Fluctuating Exchange Rates

AGENCIES: Department of Defense (DOD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council have

agreed on a final rule to amend the

Federal Acquisition Regulation (FAR) to

provide guidance and a solicitation

provision regarding evaluation of

foreign currency offers. This regulatory

action was not subject to Office of

Management and Budget review under

Executive Order 12866, dated

September 30, 1993, and is not a major

rule under 5 U.S.C. 804.

EFFECTIVE DATE: August 19, 1996.

FOR FURTHER INFORMATION CONTACT: Mr.

Peter O’Such at (202) 501–1759 in

reference to this FAR case. For general

information, contact the FAR

Secretariat, Room 4037, GS Building,

Washington, DC 20405 (202) 501–4755.

Please cite FAC 90–39, FAR case 92–

048.

SUPPLEMENTARY INFORMATION:

A. Background

An amendment to FAR Subpart 25.5

and a corresponding solicitation

provision were published in the Federal

Register as a proposed rule, with a

request for comments (see 59 FR 16391,

April 6, 1994). Two responses were

received. The Council’s analysis of

those comments resulted in a revision to

the rule to delete ‘‘commercially

available’’ in the description of the

current market exchange rate used in

the evaluation of foreign currency offers.

The final rule also adds language at

25.501(b) and 52.225–4 to address

evaluation of offers in negotiated

acquisitions, when award is based on

initial offers received.

B. Regulatory Flexibility Act

The Department of Defense, the

General Services Administration, and

the National Aeronautics and Space

Administration certify that this final

rule will not have a significant

economic impact on a substantial

number of small entities within the

meaning of the Regulatory Flexibility

Act, 5 U.S.C. 601, et seq., because the

rule pertains to contracts entered into

and performed overseas and, with rare

exceptions, will affect only foreign

concerns. No comments were received

on the impact of this rule on small

entities during the public comment

period.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

FAR do not impose recordkeeping or

information collection requirements, or

collections of information from offerors,

contractors, or members of the public

which require the approval of the Office

of Management and Budget under 44

U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 25 and

52

Government procurement.

Dated: June 4, 1996.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, 48 CFR Parts 25 and 52 are

amended as set forth below:

1. The authority citation for 48 CFR

Parts 25 and 52 continues to read as

follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C.

chapter 137; and 42 U.S.C. 2473(c).

PART 25—FOREIGN ACQUISITION

2. In part 25, subpart 25.5, the

heading is revised to read as follows:

Subpart 25.5—Use of Foreign Currency

3. Section 25.501 is revised to read as

follows:

25.501 Policy.

(a) Unless a specific currency is

required by international agreement or

by the Trade Agreements Act (see

25.405(d)), contracting officers shall

determine whether solicitations for

contracts to be entered into and

performed outside the United States

will require submission of offers either

in U.S. currency or in a specified foreign