Source: http://farsite.hill.af.mil/reghtml/changes/dac/DCN20021220.htm
Timestamp: 2018-10-22 10:21:37
Document Index: 667238773

Matched Legal Cases: ['art 252', 'art 2', 'art 219', 'art 225', 'art 225', 'art 225', 'art 225', 'art 225', 'ART 225', 'art 19', 'ART 225', 'ART 225', 'art 225', 'art 225', 'art 208', 'art 208', 'art 208', 'art 42', 'art 213', 'art 25']

DCN20021220
DEFENSE FAR SUPPLEMENT (DFARS) Change Notice 20021220
DoD published 1 proposed and 3 final DFARS rules in the Federal Register on December 20, 2002. The final rules apply to solicitations issued on or after December 20, 2002, except as otherwise permitted by FAR 1.108(d). The proposed rule solicits public comments, which are due by February 18, 2003. A summary of each rule follows:
Extension of DoD Pilot Mentor-Protégé Program (DFARS Case 2002-D029)
Changes the DFARS to extend, through September 30, 2005, the period during which companies may enter into agreements under the DoD Pilot Mentor-Protégé Program; and to extend, through, September 30, 2008, the period during which mentor firms may incur costs that are eligible for reimbursement or credit under the Program. The Program provides incentives for DoD contractors to assist protégé firms in enhancing their capabilities and increasing their participation in Government and commercial contracts. The rule implements Section 812 of the National Defense Authorization Act for Fiscal Year 2002.
Trade Agreements Act - Exception for U.S.-Made End Products (DFARS Case 2002-D008)
Changes the DFARS to implement a determination of the Under Secretary of Defense (Acquisition, Technology, and Logistics) (USD(AT&L)) that it is inconsistent with the public interest to apply the restrictions of the Buy American Act to U.S.-made end products that are substantially transformed in the United States. The rule simplifies evaluation of offers in acquisitions subject to the Trade Agreements Act, because it eliminates the need to determine if a U.S.-made end product is also a domestic end product, i.e., the cost of domestic components exceeds the cost of all components by more than 50 percent. Additionally, the provision at DFARS 252.225-7006, Buy American Act-Trade Agreements-Balance of Payments Program Certificate, and the clause at DFARS 252.225-7007, Buy American Act-Trade Agreements-Balance of Payments Program, are no longer necessary, because the provision at DFARS 252.225-7020, Trade Agreements Certificate, and the clause at DFARS 252.225-7021, Trade Agreements, are now appropriate for all acquisitions subject to the Trade Agreements Act. This rule also applies the USD(AT&L) determination to acquisitions subject to the Balance of Payments Program, since the Balance of Payments Program is an extension of the Buy American Act restrictions to acquisitions of supplies for overseas use.
Affected subparts/sections: 225.0; 225.1; 225.4; 225.5; 225.11; 225.75; Part 252 Table of Contents; 252.212; 252.225
Changes the DFARS to update titles, section numbers, and paragraph designations.
Affected subparts/sections: 208.0; 208.70; 252.242; Appendix G, Part 2
Purchase Card Internal Controls (DFARS Case 2002-D025)
Proposes to add DFARS policy on internal controls for proper use of the Governmentwide commercial purchase card and convenience checks. The rule implements recommendations made by the DoD Charge Card Task Force, in its final report dated June 27, 2002, to strengthen management of the purchase card program.
Extension of DoD Pilot Mentor-Protégé Program
[DFARS Case 2002-D029]
Defense Federal Acquisition Regulation Supplement; Extension of DoD Pilot Mentor-ProtEgE Program
SUMMARY: DoD has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement section 812 of the National Defense Authorization Act for Fiscal Year 2002. Section 812 extends, through September 30, 2005, the period during which companies may enter into agreements under the DoD Pilot Mentor-Proteg'E Program.
Regulations Council, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-1302; facsimile (703) 602-0350. Please cite DFARS Case 2002-D029.
A. Background This final rule amends DFARS 219.7104 and Appendix I to implement
section 812 of the National Defense Authorization Act for Fiscal Year 2002 (Pub. L. 107-107). Section 812 extends, through September 30, 2005, the period during which companies may enter into agreements under the DoD Pilot Mentor-Protege Program. In addition, section 812 extends, through September 30, 2008, the period during which mentor firms may incur costs that are eligible for reimbursement or credit under the Program.
B. Regulatory Flexibility Act This rule will not have a significant cost or administrative impact on contractors or offerors, or a significant effect beyond the internal operating procedures of DoD. Therefore, publication for public comment is not required. However, DoD will consider comments from small entities concerning the affected DFARS subparts in accordance with 5 U.S.C. 610. Such comments should cite DFARS Case 2002-D029.
C. Paperwork Reduction Act The information collection requirements associated with the DoD Pilot Mentor Protege Program have been approved by the Office of Management and Budget, under Control Number 0704-0332, for use through March 31, 2004.
List of Subjects in 48 CFR Part 219 Government procurement.
(b) Before incurring any costs under the Program, mentor firms must establish the accounting treatment of developmental assistance costs eligible for reimbursement or credit. Advance agreements are encouraged. To be eligible for reimbursement under the Program, the mentor firm must incur the costs before October 1, 2005 [2008].
(d) Developmental assistance costs, incurred by a mentor firm before October 1, 2005 [2008], that are eligible for crediting under the Program, may be credited toward subcontracting plan goals as set forth in Appendix I.
I-102 General procedures.
(a) At any time between October 1, 1991, and September 30, 2002 [2005], companies interested in becoming mentor firms that want to take credit toward applicable subcontracting goals for costs incurred for providing developmental assistance to one or more protege firms must apply to DoD for participation in the Program pursuant to the application process set forth at I-106(a).
(b) At any time between October 1, 1991, and September 30, 2002 [2005], companies interested in becoming mentor firms that are able to identify funding from a DoD program manager(s) to provide developmental assistance to one or more protege firms must apply to DoD for participation in the Program, pursuant to the application process set forth at I-106(d).
Activities under the Program may occur only during the following periods:
(a) From October 1, 1991, until September 30, 2002 [2005], companies that have been approved for participation in the Program as mentor firms pursuant to I-102, General Procedures, may enter into mentor-protege agreements, pursuant to I-107, Mentor-Protege Agreements.
(b) From October 1, 1991, until September 30, 2005 [2008], DoD may reimburse a mentor firm's costs of providing developmental assistance to its protege firm only if a DoD program manager has identified the funding for such costs and-
(1)(i) For mentor-protege agreements entered into prior to October 1, 1999, the mentor firm incurs such costs after DoD and the mentor firm enter into a separate contract, cooperative agreement, or other agreement; or
(ii) For mentor-protege agreements entered into on or after October 1, 1999, the mentor firm incurs such costs after DoD and the mentor firm enter into a separate contract based upon a determination by the Director, Small and Disadvantaged Business Utilization, Office of the Under Secretary of Defense (Acquisition, Technology, and Logistics) (SADBU, OUSD(AT&L)), that unusual circumstances justify using a separate contract; or
(2) The mentor firm incurs such costs pursuant to the execution of a separately priced contract line item added to a DoD contract(s).
(c) From October 1, 1991, until September 30, 2005 [2008], a mentor firm may receive credit toward the attainment of its applicable subcontracting goals, for unreimbursed costs incurred in providing developmental assistance to its protege firms, only if such costs are incurred pursuant to an approved mentor-protege agreement.
(e) A mentor firm may receive credit toward the attainment of an SDB subcontracting goal for each subcontract awarded for a product or a service by the mentor firm to an entity that qualifies as an SDB protege firm pursuant to I-104(a)(1)(i) through (iv). With respect to former SDB protege firm(s), a mentor may take credit for awards to such concern(s) that, except for its size would be a small business concern owned and controlled by socially and economically disadvantaged individuals, but only if-
(1) The size of such business concern is not more than two times the appropriate size standard;
(2) The business concern formerly had a mentor-protégé agreement with such mentor firm that was not terminated for cause; and
(3) The credit is taken not later than October 1, 2005 [2008].
Trade Agreements Act - Exception for U.S.-Made End Products
DFARS Case 2002-D008
[DFARS Case 2002-D008]
Defense Federal Acquisition Regulation Supplement; Trade Agreements Act--Exception for U.S.-Made End Products
SUMMARY: DoD has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement the determination of the Under Secretary of Defense (Acquisition, Technology, and Logistics) that, for procurements subject to the Trade Agreements Act, it would be inconsistent with the public interest to apply the Buy American Act to U.S.-made end products that are substantially transformed in the United States.
Regulations Council, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0328; facsimile (703) 602-0350. Please cite DFARS Case 2002-D008.
A. Background On March 14, 2002, the Under Secretary of Defense (Acquisition,
Technology, and Logistics) (USD(AT&L)) determined that, for procurements subject to the Trade Agreements Act, it would be inconsistent with the public interest to apply the Buy American Act to U.S.-made end products that are substantially transformed in the United States. This determination expands the May 16, 1997, USD(AT&L) determination (presently implemented in DFARS part 225) that it would be inconsistent with the public interest to apply the Buy American Act to U.S.-made information technology products in Federal Supply Group 70 or 74. The March 14, 2002, determination is consistent with Federal Acquisition Regulation policy applicable to civilian agencies with regard to the treatment of U.S.-made end products.
This DFARS rule implements the March 14, 2002, USD(AT&L) determination. The rule simplifies evaluation of offers in acquisitions subject to the Trade Agreements Act, because it is no longer necessary to determine if a U.S.-made end product is also a domestic end product, i.e., the cost of domestic components exceeds the cost of all
components by more than 50 percent. Additionally, the provision at DFARS 252.225-7006, Buy American Act--Trade Agreements--Balance of Payments Program Certificate, and the clause at DFARS 252.225-7007, Buy American Act--Trade Agreements--Balance of Payments Program, are no longer necessary, because the provision at DFARS 252.225-7020, Trade Agreements Certificate, and the clause at DFARS 252.225-7021, Trade
Agreements, are now appropriate for all acquisitions subject to the Trade Agreements Act. This rule also applies the March 14, 2002, USD(AT&L) determination to acquisitions subject to the Balance of Payments Program, since the Balance of Payments Program is an extension of the Buy American Act restrictions to acquisitions of supplies for overseas use.
DoD published a proposed rule at 67 FR 49278 on July 30, 2002. Two sources submitted comments on the proposed rule. Both sources supported the DFARS changes in the proposed rule. Therefore, DoD is adopting the proposed rule as a final rule without change.
B. Regulatory Flexibility Act This rule may 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. A final regulatory flexibility analysis has been prepared and is summarized as follows:
The objective of the rule is to avoid treating products substantially transformed in the United States less favorably than products substantially transformed in a designated, Caribbean Basin, or NAFTA country. Under existing DFARS policy, offers of domestic end products are given a 50 percent price evaluation preference over offers of U.S.-made end products for which the cost of foreign components exceeds the cost of domestic components by 50 percent or more. However, for acquisitions subject to the Trade Agreements Act, an end product of a designated, Caribbean Basin, or NAFTA country is exempt from application of the 50 percent evaluation factor, regardless of the source of the components. Therefore, a company might be encouraged to manufacture a product in a designated, Caribbean Basin, or NAFTA country rather than in the United States. This DFARS rule revises evaluation procedures for acquisitions subject to the Trade Agreements Act to eliminate the 50 percent price advantage that DoD presently gives to domestic end products over U.S.-made end products with foreign component content of 50 percent or more. Therefore, the cost incentive to manufacture components in the United States is removed. However, for companies that provide U.S.-made end products containing foreign components, the incentive to move end product manufacturing facilities to a designated, Caribbean Basin, or NAFTA country is reduced. There
were no significant issues raised by the public comments in response to the initial regulatory flexibility analysis.
C. Paperwork Reduction Act The rule eliminates the requirement for offerors to track and document the origin of components of U.S.-made end products in acquisitions subject to the Trade Agreements Act. This reduces by 960 hours the annual paperwork burden requirements previously approved by the Office of Management and Budget under Control Number 0704-0229.
To apply the policies and procedures of this part, analyze and evaluate offers of foreign end products generally as follows:
(3) Trade agreements.
(i) Determine whether the product is covered by the Trade Agreements Act or the North American Free Trade Agreement Implementation Act (see Subpart 225.4).
(ii) If the product is an eligible product under Subpart 225.4, evaluate the offer under Subpart 225.5.
(iii) If the product is not an eligible product, a qualifying country end product, or a U.S.[-]made end product, purchase of the foreign end product may be prohibited (see FAR 25.403(c) and 225.403(c).
(4) "Domestic end product" has the meaning given in the clauses at 252.225-7001, Buy American Act and Balance of Payments Program; 252.225-7007, Buy American Act-Trade Agreements-Balance of Payments Program; and 252.225-7036, Buy American Act-North American Free Trade Agreement Implementation Act-Balance of Payments Program, instead of the meaning in FAR 25.003.
(12) "Qualifying country component" and "qualifying country end product" are defined in the clauses at 252.225-7001, Buy American Act and Balance of Payments Program; 252.225-7007, Buy American Act-Trade Agreements-Balance of Payments Program; and 252.225-7036, Buy American Act-North American Free Trade Agreement Implementation Act-Balance of Payments Program. "Qualifying country end product" is also defined in the clause at 252.225-7021, Trade Agreements.
(a)(i)(A) Specific public interest exceptions for DoD for certain countries are in 225.872.
(B) The Under Secretary of Defense (Acquisition, Technology, and Logistics) has determined that, for procurements subject to the Trade Agreements Act, it is inconsistent with the public interest to apply the Buy American Act to information technology [end] products in Federal Supply Group 70 or 74 that are substantially transformed in the United States.
(1) To estimate the value of the acquisition, use the total estimated value of end products subject to trade agreement acts (see 225.401-70).
(2) See Subpart 225.5 for evaluation of eligible products and U.S. made end products, except when acquiring information technology end products in Federal Supply Group 70 or 74 that are subject to the Trade Agreements Act.
SUBPART 225.5-EVALUATING FOREIGN OFFERS-SUPPLY CONTRACTS
[(b) Use the following procedures instead of the procedures in FAR 25.502(b) for acquisitions subject to the Trade Agreements Act:
(i) Consider only offers of U.S.-made, qualifying country, or eligible end products, except as permitted by 225.403.
(c)] Use the following procedures instead of those in FAR 25.502[(c) for acquisitions subject to the Buy American Act or the Balance of Payments Program]. These procedures do not apply to acquisitions of information technology end products in Federal Supply Group 70 or 74 that are subject to the Trade Agreements Act.
(1[i]) Treat offers of eligible end products under acquisitions subject to the Trade Agreements Act or NAFTA as if they were qualifying country offers. As used in this section, the term "nonqualifying country offer" may also apply to an offer that is not an eligible offer under [NAFTA] a trade agreement (see 225.504(4)).
(2[ii]) Except as provided in paragraph (3)[(c)(iii)] of this section, evaluate offers by adding a 50 percent factor to the price (including duty) of each nonqualifying country offer (see 225.504(1)).
(i[A]) Nonqualifying country offers include duty in the offered price. When applying the factor, evaluate based on the inclusion of duty, whether or not duty is to be exempted. If award is made on the nonqualifying country offer and duty is to be exempted through inclusion of the clause at FAR 52.225-8, Duty-Free Entry, award at the offered price minus the amount of duty identified in the provision at 252.225-7003, Information for Duty-Free Entry Evaluation (see 225.504(1)(ii)).
(ii[B]) When a nonqualifying country offer includes more than one line item, apply the 50 percent factor-
(A[1]) On an item-by-item basis; or
(B[2]) On a group of items, if the solicitation specifically provides for award on a group basis.
(3[iii]) When application of the factor would not result in the award of a domestic end product, i.e., when no domestic offers are received (see 225.504(3)) or when a qualifying [or NAFTA] country offer is lower than the domestic offer (see 225.504(2)), evaluate nonqualifying country offers without the 50 percent factor.
(i[A]) If duty is to be exempted through inclusion of the clause at FAR 52.225-8, Duty-Free Entry, evaluate the nonqualifying country offer exclusive of duty by reducing the offered price by the amount of duty identified in the clause at 252.225-7003, Information for Duty-Free Entry Evaluation (see 225.504(2)(ii) and (3)(ii)). If award is made on the nonqualifying country offer, award at the offered price minus duty.
(ii[B]) If duty is not to be exempted, evaluate the nonqualifying country offer inclusive of duty (see 225.504(2)(i) and (3)(i)).
(4[iv]) If these evaluation procedures result in a tie between a nonqualifying country offer and a domestic offer, make award on the domestic offer.
(5[v])(i[A]) There are two tests that must be met to determine whether a manufactured item is a domestic end product-
(A[1]) The end product must have been manufactured in the United States; and
(B[2]) The cost of its U.S. and qualifying country components must exceed 50 percent of the cost of all of its components. This test is applied to end products only, and not to individual components.
(ii[B]) Because of the component test, the definition of "domestic end product" is more restrictive than the definition for-
(A[1]) "U.S.[-]made end product" under trade agreements;
(B[2]) "Domestically produced or manufactured products" under small business set-asides or small business reservations; and
(C[3]) Products of small businesses under FAR Part 19.
Offer of U.S. Made End Product which is
not a Domestic Offer $800,000
Domestic Offer 820,000
Eligible Product 830,000
Eligible Product 820,000
Domestic Offer 830,000
SUBPART 225.11-SOLICITATION PROVISIONS AND CONTRACT CLAUSES
(2) Use the clause at 252.225-7001, Buy American Act and Balance of Payments Program, instead of the clause at FAR 52.225-1, Buy American Act-Supplies, in solicitations and contracts for supplies or services that require the furnishing of supplies.
(i) Do not use the clause if an exception to the Buy American Act or Balance of Payments Program is known to apply or if using the clause at 252.225-7007, Buy American Act-Trade Agreements-Balance of Payments Program; 252.225-7021, Trade Agreements; or 252.225-7036, Buy American Act-North American Free Trade Agreement Implementation Act-Balance of Payments Program.
(ii) 252.225-7007, Buy American Act-Trade Agreements-Balance of Payments Program.
(iv[iii]) 252.225-7036, Buy American Act-North American Free Trade Agreement Implementation Act-Balance of Payments Program.
(5) Use the provision at 252.225-7006, Buy American Act-Trade Agreements-Balance of Payments Program Certificate, instead of the provision at FAR 52.225-6, Trade Agreements Certificate, in all solicitations that include the clause at 252.225-7007, Buy American Act-Trade Agreements-Balance of Payments Program.
(6) Except as provided in paragraph (11) of this section, use the clause at 252.225-7007, Buy American Act-Trade Agreements-Balance of Payments Program, instead of the clause at FAR 52.225-5, Trade Agreements. The clause need not be used where purchase from foreign sources is restricted (see 225.401(b)(ii)). The clause may be used where the contracting officer anticipates a waiver of the restriction.
(7[5]) Use the clause at 252.225-7008, Supplies to be Accorded Duty-Free Entry, in solicitations and contracts that provide for duty-free entry and that include the clause at FAR 52.225-8, Duty-Free Entry.
(8[6]) Use the clause at 252.225-7009, Duty-Free Entry-Qualifying Country Supplies (End Products and Components), in solicitations and contracts for supplies and in solicitations and contracts for services involving the furnishing of supplies, except for solicitations and contracts for supplies for exclusive use outside the United States.
(9[7]) Use the clause at 252.225-7010, Duty-Free Entry-Additional Provisions, in solicitations and contracts that include the clause at FAR 52.225-8, Duty-Free Entry.
(10[8]) Use the provision at 252.225-7020, Trade Agreements Certificate, in all solicitations that include the clause at 252.225-7021, Trade Agreements.
(11[9]) Use the clause at 252.225-7021, Trade Agreements, instead of the clause at FAR 52.225-5, Trade Agreements, when acquiring information technology products in Federal Supply Group 70 or 74 [if the acquisition is subject to the Trade Agreements Act].
(12[10]) Use the provision at 252.225-7035, Buy American Act-North American Free Trade Agreement Implementation Act-Balance of Payments Program Certificate, instead of the provision at FAR 52.225-4, Buy American Act-North American Free Trade Agreement-Israeli Trade Act Certificate, in all solicitations that include the clause at 252.225-7036, Buy American Act-North American Free Trade Agreement Implementation Act-Balance of Payments Program.
(13[11]) Use the clause at 252.225-7036, Buy American Act-North American Free Trade Agreement Implementation Act-Balance of Payments Program, instead of the clause at FAR 52.225-3, Buy American Act-North American Free Trade Agreement-Israeli Trade Act. The clause need not be used where purchase from foreign sources is restricted (see 225.401(b)(ii)). The clause may be used where the contracting officer anticipates a waiver of the restriction.
(14[12]) Use the clause at 252.225-7037, Duty-Free Entry-Eligible End Products, in solicitations and contracts for supplies and services when the clause at 252.225-7007, Buy American Act-Trade Agreements-Balance of Payments Program; 252.225-7021, Trade Agreements; or 252.225-7036, Buy American Act-North American Free Trade Agreement Implementation Act-Balance of Payments Program, is used.
SUBPART 225.75-BALANCE OF PAYMENTS PROGRAM
Acquire only domestic end products for use outside the United States, and use only domestic construction material for construction to be performed outside the United States, including end products and construction material for foreign military sales, unless--
(b) After receipt of offers--
(1) The evaluated low offer (see Subpart 225.5) is an offer of an end product that--
(iii) For acquisitions subject to the Trade Agreements Act, is an information technology product in Federal Supply Group 70 or 74 that is substantially transformed in the United States [a U.S.-made end product]; or
CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERS APPLICABLE TO DEFENSE ACQUISITIONS OF COMMERCIAL ITEMS (NOV[DEC] 2002)
___ 252.225-7007 Buy American Act--Trade Agreements--Balance of Payments Program (OCT 2002) (41 U.S.C. 10a- 10d, 19 U.S.C. 2501-2518, and 19 U.S.C. 3301 note).
252.225-7006 Buy American Act-Trade Agreements-Balance of Payments Program Certificate [Reserved].
BUY AMERICAN ACT-TRADE AGREEMENTS-
BALANCE OF PAYMENTS PROGRAM CERTIFICATE (MAR 1998)
(a) Definitions. "Caribbean Basin country end product," "designated country end product," "domestic end product," "NAFTA country end product," "nondesignated country end product," "qualifying country end product," and "U.S. made end product" have the meanings given in the Buy American Act-Trade Agreements-Balance of Payments Program clause of this solicitation.
(b) Evaluation. Offers will be evaluated in accordance with the policies and procedures of Part 225 of the Defense Federal Acquisition Regulation Supplement. Offers of foreign end products that are not U.S. made, qualifying country, designated country, Caribbean Basin country, or NAFTA country end products will not be considered for award, unless the Contracting Officer determines that there are no offers of such end products; or the offers of such end products are insufficient to fulfill the requirements; or a national interest exception to the Trade Agreements Act is granted.
(2) The Offeror must identify all end products that are not domestic end products.
(i) The Offeror certifies that the following supplies qualify as "U.S. made end products" but do not meet the definition of "domestic end product":
(insert line item number) (insert country of origin)
(v) The Offeror certifies that the following supplies quality as NAFTA country end products:
(vi) The following supplies are other nondesignated country end products.
252.225-7007 Buy American Act-Trade Agreements-Balance of Payments Program [Reserved].
BALANCE OFPAYMENTS PROGRAM (OCT 2002)
(2) "Caribbean Basin country end product"-
(B) In the case of an article that consists in whole or in part of materials from another country or instrumentality, 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 so 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
(3) "Components" means those articles, materials, and supplies directly incorporated into end products.
(5) "Designated country end product" means an article that-
(i) Is wholly the growth, product, or manufacture of the designated country; or
(ii) In the case of an article that consists in whole or in part of materials from another country or instrumentality, has been substantially transformed in a designated 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 so 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.
(6) "Domestic end product" means-
(ii) An end product manufactured in the United States if 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 shall include transportation costs to the place of incorporation into the end product and U.S. duty (whether or not a duty-free entry certification may be issued). A component shall be 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-
(A) Determined to be not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality; or
(B) That the Secretary concerned determines would be inconsistent with the public interest to apply the restrictions of the Buy American Act.
(7) "End product" means those articles, materials, and supplies to be acquired for public use under the contract. For this contract, the end products are the line items to be delivered to the Government (including supplies to be acquired by the Government for public use in connection with service contracts, but excluding installation and other services to be performed after delivery).
(8) "NAFTA country end product" means an article that-
(9) "Nondesignated country end product" means any end product that is not a U.S. made end product or a designated country end product.
(10) "North American Free Trade Agreement (NAFTA) country" means Canada or Mexico.
(11) "Qualifying country" means any country set forth in subsection 225.872-1 of the Defense Federal Acquisition Regulation Supplement.
(12) "Qualifying country component" means an item mined, produced, or manufactured in a qualifying country.
(13) "Qualifying country end product" means-
(ii) An end product manufactured in a qualifying country if the cost of the components mined, produced, or manufactured in the qualifying country and its components mined, produced or manufactured in the United States exceeds 50 percent of the cost of all its components.
(14) "United States" means the United States, its possessions, Puerto Rico, and any other place subject to its jurisdiction, but does not include leased bases or trust territories.
(15) "U.S. made end product" means an article that-
(c)(1) The Contractor agrees to deliver under this contract only domestic end products unless, in its offer, it specified delivery of U.S. made, qualifying country, designated country, Caribbean Basin country, NAFTA country, or other nondesignated country end products in the Buy American Act-Trade Agreements-
Balance of Payments Program Certificate provision of the solicitation.
(ii) The Contracting Officer has determined that offers of U.S. made end products or qualifying, designated, NAFTA, or Caribbean Basin country end products from responsive, responsible offerors are either not received or are insufficient to fill the Government's requirements; or
(iii) A national interest waiver has been granted under section 302 of the Trade Agreements Act of 1979.
(d) The offered price of qualifying country end products and the offered price of designated country end products, NAFTA country end products, and Caribbean Basin country end products, for line items subject to the Trade Agreements Act or the North American Free Trade Agreement Implementation Act, should not include custom fees or duty. The offered price of end products listed in paragraph (c)(2)(vi) of the Buy American Act-Trade Agreements-
Balance of Payments Program Certificate provision of the solicitation, or the offered price of U.S. made end products that contain nonqualifying country components, must include all applicable duty. The award price will not include duty for end products or components that are to be accorded duty-free entry. Generally, each offer of a U.S. made end product that does not meet the definition of "domestic end product" is adjusted for the purpose of evaluation by adding 50 percent of the offered price, inclusive of duty.
As prescribed in 225.1101(7[5]), use the following clause:
252.225-7009 Duty-Free Entry-Qualifying Country Supplies (End Products and Components).
As prescribed in 225.1101(8[6]), use the following clause:
252.225-7010 Duty-Free Entry-Additional Provisions.
As prescribed in 225.1101(9[7]), use the following clause:
As prescribed in 225.1101(10[8]), use the following provision:
As prescribed in 225.1101(11[9]), use the following clause:
252.225-7035 Buy American Act-North American Free Trade Agreement Implementation Act-Balance of Payments Program Certificate.
As prescribed in 225.1101(12[10]), use the following provision:
As prescribed in 225.1101(12[10])(ii), substitute the phrase "Canadian end product" for the phrase "NAFTA country end product" in paragraph (a); and substitute the phrase "Canadian end products" for the phrase "NAFTA country end products" in paragraphs (b) and (c)(2)(ii) of the basic clause.
252.225-7036 Buy American Act-North American Free Trade Agreement Implementation Act-Balance of Payments Program.
As prescribed in 225.1101(13[11]), use the following clause:
As prescribed in 225.1101(13[11])(i)(B), substitute the following paragraphs (a)(6), (c), and (d) for paragraphs (a)(6), (c), and (d) of the basic clause:
252.225-7037 Duty-Free Entry-Eligible End Products.
As prescribed in 225.1101(14[12]), use the following clause:
48 CFR Part 208 and Appendix G to Chapter 2
SUMMARY: DoD is making technical amendments to the Defense Federal Acquisition Regulation Supplement to update titles, section numbers, and paragraph designations.
FOR FURTHER INFORMATION CONTACT: Ms. Michele Peterson, Defense
Acquisition Regulations Council, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062
Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0311;
facsimile (703) 602-0350.
List of Subjects in 48 CFR Part 208 Government procurement.
Therefore, 48 CFR part 208 and Appendix G to chapter 2 are amended as follows:
208.001[2] Priorities for use of Government supply sources.
208.002[3] Use of other Government supply sources.
(f[d]) * * *
(g[e]) * * *
(b) The Integrated Materiel Management Program (assignments are in DoD 4140.26-M, [Defense] Integrated Materiel Management [Manual] for Consumable Items).
The Contractor agrees to attend any postaward conference convened by the contracting activity or contract administration office in accordance with Federal Acqu[i]sition Regulation Subpart 42.5.
DABK15 ACA, Fort Hood
1Q Directorate of Contracting [Command]
761st Tank Bat[t]allion Avenue, Room W103
Fort Hood, TX 76544-5025
Purchase Card Internal Controls
SUMMARY: DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to add policy on internal controls for proper use of the Governmentwide commercial purchase card.
ADDRESSES: Respondents may submit comments directly on the World Wide Web at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. As an alternative, respondents may e-mail comments to: dfars@acq.osd.mil. Please cite DFARS Case 2002-D025 in the subject line of e-mailed comments.
At the end of the comment period, interested parties may view public comments on the World Wide Web at http://emissary.acq.osd.mil/dar/dfars.nsf .
A. Background This proposed rule revises DFARS subpart 213.3 to add policy on
internal controls for proper use of the Governmentwide commercial purchase card and convenience checks. The rule implements recommendations made by the DoD Charge Card Task Force, in its final report dated June 27, 2002, to strengthen management of the purchase card program.
B. 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 the rule pertains primarily to internal DoD procedures for use of the Governmentwide commercial purchase card and convenience checks. Therefore, DoD has not performed an initial regulatory flexibility
analysis. DoD invites comments from small businesses and other interested parties. DoD also will consider comments from small entities concerning the affected DFARS subpart in accordance with 5 U.S.C. 610. Such comments should be submitted separately and should cite DFARS Case 2002-D025.
[(1) Only formally appointed and trained cardholders are authorized to use the purchase card.
(4) When ordering against a Federal Supply Schedule-
(7) Do not issue purchase cards to contractors. Under certain conditions, GSA can authorize contractors to establish cards directly with the issuing bank. Refer contractors that ask for a card to GSA. A listing of GSA points of contact can be found on the Internet at: http://www.gsa.gov/Portal/content/offerings_content.jsp
(1) DoD 7000.14-R, Financial Management Regulation, Volume 10, Chapter 10, Section XXXX, available on the Internet at http://www.dtic.mil/comptroller/fmr.
(2) DoD Purchase Card Concept of Operations, available on the Internet at http://purchasecard.saalt.army.mil/ConOps,%2031%20Jul%2002.pdf.
213.301-71 Overseas use of the Governmentwide commercial purchase card.]
(1[a]) "United States," as used in this section, means the 50 States and the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, Guam, American Samoa, Wake Island, Johnston Island, Canton Island, the outer Continental Shelf lands, and any other place subject to the jurisdiction of the United States (but not including leased bases).
(2[b]) An individual appointed in accordance with 201.603-3(b) also may use the Governmentwide commercial purchase card to make a purchase that exceeds the micro-purchase threshold but does not exceed $25,000, if-
(i[1]) The purchase-
(A[i]) Is made outside the United States for use outside the United States; and
(B[ii]) Is for a commercial item; but
(C[iii]) Is not for work to be performed by employees recruited within the United States;
(D[iv]) Is not for supplies or services originating from, or transported from or through, sources identified in FAR Subpart 25.7;
(E[v]) Is not for ball or roller bearings as end items;
(F[vi]) Does not require access to classified or Privacy Act information; and
(G[vii]) Does not require transportation of supplies by sea; and
(ii[2]) The individual making the purchase-
(A[i]) Is authorized and trained in accordance with agency procedures;
(B[ii]) Complies with the requirements of FAR 8.001 in making the purchase; and
(C[iii]) Seeks maximum practicable competition for the purchase in accordance with FAR 13.104(b).
(3[c]) A contracting officer supporting a contingency operation as defined in 10 U.S.C. 101(a)(13) or a humanitarian or peacekeeping operation as defined in 10 U.S.C. 2302(8) also may use the Governmentwide commercial purchase card to make a purchase that exceeds the micro-purchase threshold but does not exceed the simplified acquisition threshold, if--
(i[1]) The supplies or services being purchased are immediately available;
(ii[2]) One delivery and one payment will be made; and
(iii[3]) The requirements of paragraphs (2[b])(i[1]) and (ii[2]) of this [sub]section are met.
[213.301-72 Convenience checks.
(b) Use a convenience check only when-
(c) Write convenience checks only for the amount of the purchase.]