Source: http://farsite.hill.af.mil/reghtml/changes/dac/DPN20141105.htm
Timestamp: 2019-03-25 18:52:10
Document Index: 363707000

Matched Legal Cases: ['arts 217', 'arts 217', 'arts 217', 'art 225', 'art 225', 'art 12', 'art 12', 'art 12']

DPN20141105
[FR Doc No: 2014-26179]
Defense Federal Acquisition Regulation Supplement: Clauses With Alternates--Special Contracting Methods, Major System Acquisition, and Service Contracting (DFARS Case 2014-D004)
SUMMARY: DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to revise and update clauses and their prescriptions for special contracting methods, major system acquisition, and service contracting to create basic and alternate clauses structured in a manner to facilitate use of automated contract writing systems. The rule also includes the full text of each alternate, rather than only showing the paragraphs that differ from the basic clause.
DATES: Effective November 5, 2014.
DoD published a proposed rule in the Federal Register at 79 FR 30535 on May 28, 2014, to revise provisions and clauses with alternates and the associated prescriptions, in order to clarify usage and facilitate the use of automated contract writing systems. No respondents submitted comments in response to the proposed rule, and no changes were made from the proposed rule in the final rule.
The purpose of this case is to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to create unique prescriptions for the basic version and each alternate of DFARS parts 217, 234, and 237 solicitations provisions and clauses, and to include the full text of each clause alternate.
The use of unique prescriptions for the basic version and each alternate of DFARS solicitations provisions and clauses will facilitate use of automated contract writing systems. The current convention requires the prescription for the basic provision or clause to address all the possibilities covered by the alternates, and then the prescription for each alternate addresses only what is different for the use of that particular alternate. This rule revises the prescriptions so that the basic solicitation provision or clause and each alternate is unique and stands on its own. The prescriptions are not revised in any way to change when they are applicable to offerors, contractors, or subcontractors.
Additionally, the inclusion of the full text of each provision or clause alternate aims to make the terms of a provision or clause alternate clearer to offerors, as well as to DoD contracting officers. Instead of the current convention for alternates to show only paragraphs changed from the basic version of the provision or clause, this rule proposes to include the full text of each version of the clause. This will assist in making the terms of the clause clearer, because all paragraph substitutions will have already been made. Inapplicable paragraphs from the basic version of the clause that are superseded by the alternate are not included in the solicitation or contract to prevent confusion. According to the Federal Procurement Data System, in fiscal year 2012, DoD made approximately 270,000 contract awards (not including modification and orders) that exceeded the micro-purchase threshold, of which approximately 180,000 (67%) were awarded to small businesses. It is unknown how many of these contracts were awarded that included an alternate to a DFARS provision or clause. This rule may result in potential offerors, including small businesses, expending more time to become familiar with and to understand the new format of the 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 version of the clause, and not requiring the contractors to read inapplicable paragraphs contained in the basic version of the clause 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 reporting or recordkeeping requirements. The rule does not duplicate, overlap, or conflict with any other Federal rules. No alternatives were identified that will accomplish the objectives of the rule.
Therefore, 48 CFR parts 217, 234, 237, and 252 are amended as follows:
1. The authority citation for 48 CFR parts 217, 234, 237, and 252 continues to read as follows:
(1) Use the basic provision when the solicitation includes the clause at 252.234-7004, Cost and Software Data Reporting--Basic.
(2) Use the alternate I provision when the solicitation includes the clause at 252.234-7004, Cost and Software Data Reporting--Alternate I.
a. Revising the introductory text, clause title, and date;
b. Amending paragraph (b) by removing ``(Insert name of country, or To Be Determined)'' and adding ``(Insert name of country)'' in its place; and
Basic. As prescribed in 217.208-70(a)(1), use the following clause:
EXERCISE OF OPTION TO FULFILL FOREIGN MILITARY SALES COMMITMENTS--BASIC (NOV 2014)
Alternate I. As prescribed in 217.208-70(a)(2), use the following clause, which uses a different paragraph (b) than paragraph (b) of the basic clause:
EXERCISE OF OPTION TO FULFILL FOREIGN MILITARY SALES COMMITMENTS--ALTERNATE I (NOV 2014)
a. Revising the introductory text, provision title, and date;
b. In paragraph (b) introductory text removing ``offeror'' and adding ``Offeror'' in its place; and
c. Revising Alternate I.
As prescribed in 234.7101(a), use one of the following provisions:
Basic. As prescribed in 234.7101(a)(1), use the following provision:
NOTICE OF COST AND SOFTWARE DATA REPORTING SYSTEM--BASIC (NOV 2014)
Alternate I. As prescribed in 234.7101(a)(2), use the following provision, which uses a different paragraph (c) than the basic provision:
NOTICE OF COST AND SOFTWARE DATA REPORTING SYSTEM--ALTERNATE I (NOV 2014)
a. Revising the introductory text, clause title, and date; and
Basic. As prescribed at 234.7101(b)(1), use the following clause:
COST AND SOFTWARE DATA REPORTING SYSTEM--BASIC (NOV 2014)
Alternate I. As prescribed in 234.7101(b)(2), use the following clause, which uses a different paragraph (b) than the basic clause:
COST AND SOFTWARE DATA REPORTING SYSTEM--ALTERNATE I (NOV 2014)
a. Revising the introductory text, provision title, and date; and
Basic. As prescribed in 237.7003(a)(1), use the following provision:
AWARD TO SINGLE OFFEROR--BASIC (NOV 2014)
Alternate I. As prescribed in 237.7003(a)(2), use the following provision, which uses a different paragraph (d) than the basic provision:
b. Revising Alternates I and II.
Basic. As prescribed in 237.7101(e)(1), use the following clause:
DELIVERY TICKETS--BASIC (NOV 2014)
Alternate I. As prescribed in 237.7101(e)(2), use the following clause, which includes paragraphs (c), (d), and (e) not included in the basic clause:
DELIVERY TICKETS--ALTERNATE I (NOV 2014)
(c) Before the Contractor picks up articles for service under this contract, the Contracting Officer will ensure that--
Alternate II. As prescribed in 237.7101(e)(3), use the following clause, which includes paragraphs (c), (d), and (e) not included in the basic clause:
DELIVERY TICKETS--ALTERNATE II (NOV 2014)
[FR Doc. 2014-26179 Filed 11-4-14; 8:45 am]
[FR Doc No: 2014-26161]
Defense Federal Acquisition Regulation Supplement: Clauses With Alternates--Foreign Acquisition (DFARS Case 2013-D005); Final Rule
Federal Register / Vol. 79 , No. 214 / Wednesday, November 5, 2014 / Rules and Regulations
RIN 0750-AH94
Defense Federal Acquisition Regulation Supplement: Clauses With Alternates--Foreign Acquisition (DFARS Case 2013-D005)
SUMMARY: DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to create separate prescriptions for the basic clause as well as each alternate in each set of foreign acquisition-related provisions/clauses with one or more alternates. In addition, the rule includes the full text of each provision or clause alternate.
DoD published a proposed rule in the Federal Register at 79 FR 8387 on February 12, 2014, to revise the presentation of the DFARS part 225 clauses with alternates and their prescriptions. An umbrella prescription is provided for the elements common to the basic clause and the alternate. The specific prescriptions for the basic clause and the alternate address the requirements for their use that enable the selection of the basic or the alternate clause. The full text of each provision and clause alternate is also included in the regulation.
No public comments were submitted in response to the proposed rule. Although DFARS part 225 contains eight solicitation provisions and clauses that have, or are, alternates, the proposed rule only addressed six. The other two were to have been revised in another DFARS case; however, that case was cancelled before publication. This final rule includes these two clauses, 252.225-7044 and 252.225-7045, to reformat them to conform to the new structure paradigm for clauses with alternates. Additionally, some other minor wording changes are made for clarity and consistency in presentation of the clauses and provisions.
This final rule amends the Defense Federal Acquisition Regulation Supplement (DFARS) to revise the format, not the substance, of prescriptions for provisions and clauses with alternates, and include the full text of each provision or clause in each alternate. The rule creates an overarching prescription for each set of provisions/clauses with one or more alternates. The overarching prescription is intended to include the common requirements for the use of that provision/clause set.
This rule facilitates use of automated contract writing systems by revising the prescription format for DFARS provisions/clauses that have one or more alternates. This rule revises the prescription format so that there is an overarching prescription that covers the elements that the basic provision/clause and all its alternates have in common. A separate prescription is provided for use of the basic prescription/clause and each alternate. In addition, each alternate provision/clause is presented in full text, not just the paragraph or section that is different from the basic provision/clause. This makes the terms of a provision or clause alternate clearer to offerors, as well as to DoD contracting officers, because all paragraph substitutions will have already been made. Inapplicable paragraphs from the basic provision/clause that are superseded by the alternate will not be included in the solicitation or contract to prevent confusion.
Potential offerors, including small businesses, initially may be affected by this rule by seeing an unfamiliar format for provision/clause alternates in solicitations and contracts issued by DoD contracting activities. DoD awarded an average of 270,000 contract actions (excluding modifications and orders) in Fiscal Year 2012, of which an average of 180,000 (67%) were awarded to about 35,000 unique small business entities. It is unknown as to how many of these contracts were awarded that included an alternate to a DFARS provision or clause. Nothing substantive will change in solicitations or contracts for potential offerors, and only the appearance of how the provision/clause alternates are presented in solicitations and contracts will be changed. This rule may result in potential offerors, including small businesses, expending more time to become familiar with and to understand the new format of provision/clause alternates in full text contained in contracts issued by any DoD contracting activity. The rule also anticipates saving contractors' time by making all paragraph substitutions from the basic clause and by not requiring offerors to read inapplicable paragraphs contained in the basic provisions/clauses where alternates are also included in the solicitations and contracts. The overall burden caused by this rule is expected to be negligible and will not be any greater on small businesses than it is on large businesses.
This rule does not add any new information collection, reporting, or recording keeping requirements. No alternatives were determined that will accomplish the objectives of the rule.
a. Revising paragraphs (f)(xxiii) and (xxiv);
b. In paragraph (f)(xxxiii)(A), removing the comma and adding a period in its place;
c. In paragraph (f)(xxxiii)(B), removing ``Use the provision with its Alternate I'' and adding ``Use the alternate I provision'' in its place;
d. In paragraph (f)(xxxiv), introductory text, adding a comma after ``Trade Agreements'';
e. In paragraph (f)(xxxiv)(B), removing ``Use the clause with its Alternate II'' and adding ``Use the alternate II clause'' in its place, and removing ``225.1101(6)(iii)'' and adding ``225.1101(6)(ii)'' in its place;
f. Revising paragraphs (f)(xlii)(B) through (F);
g. Revising paragraphs (f)(xliii)(B) through (F).
(xxiii) Use the provision at 252.225-7000, Buy American--Balance of Payments Program Certificate, to comply with 41 U.S.C. chapter 83 and Executive Order 10582 of December 17, 1954, Prescribing Uniform Procedures for Certain Determinations Under the Buy-American Act.
(A) Use the basic provision as prescribed in 225.1101(1)(i).
(B) Use the alternate I provision as prescribed in 225.1101(1)(ii).
(xxiv) Use the clause at 252.225-7001, Buy American and Balance of Payments Program, to comply with 41 U.S.C. chapter 83 and Executive Order 10582 of December 17, 1954, Prescribing Uniform Procedures for Certain Determinations Under the Buy-American Act.
(A) Use the basic clause as prescribed in 225.1101(2)(ii).
(B) Use the alternate I clause as prescribed in 225.1101(2)(iii).
(xlii) * * *
(B) Use the alternate I provision as prescribed in 225.1101(9)(ii).
(C) Use the alternate II provision as prescribed in 225.1101(9)(iii).
(D) Use the alternate III provision as prescribed in 225.1101(9)(iv).
(E) Use the alternate IV provision as prescribed in 225.1101(9)(v).
(F) Use the alternate V provision as prescribed in 225.1101(9)(vi).
(B) Use the alternate I clause as prescribed in 225.1101(10)(i)(B).
(C) Use the alternate II clause as prescribed in 225.1101(10)(i)(C).
(D) Use the alternate III clause as prescribed in 225.1101(10)(i)(D).
(E) Use the alternate IV clause as prescribed in 225.1101(10)(i)(E).
(F) Use the alternate V clause as prescribed in 225.1101(10)(i)(F).
3. Amend section 225.1101 by--
b. In paragraph (2)(i) introductory text, removing the phrase ``Use the clause'' and adding ``Use the basic or the alternate of the clause'' in its place;
c. Revising paragraph (2)(i)(B);
d. In paragraph (2)(i)(D) introductory text, removing ``One or both of the following clauses'' and adding ``One or more of the basic or the alternates of the following clauses'' in its place;
e. Redesignating paragraph (2)(ii) as paragraph (2)(iii), and adding a new paragraph (2)(ii);
f. Revising the newly redesignated paragraph (2)(iii);
g. In paragraph (3) introductory text, removing the phrase ``that include one of the following clauses:'' and adding ``that include the basic or one of the alternates of the following clauses:'' in its place;
h. Revising paragraph (5);
i. Redesignating paragraph (6)(i) as paragraph (6) introductory text, revising the newly redesignated paragraph (6) introductory text, and adding a new paragraph (6)(i);
j. Revising paragraph (6)(ii);
k. Revising paragraph (6)(iii) introductory text;
l. Revising paragraph (9);
m. Revising paragraph (10)(i); and
n. Revising paragraph (10)(ii) introductory text.
(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.
(ii) Use the basic clause if the acquisition is not of end products listed in 225.401-70 in support of operations in Afghanistan. (iii) Use the alternate I clause when the acquisition is of end products listed in 225.401-70 in support of operations in Afghanistan.
(iii) Do not use the basic or an alternate of the clause if--
(9) Use the basic or an alternate of the provision at 252.225-7035, Buy American--Free Trade Agreements--Balance of Payments Program Certificate, instead of the provision at FAR 52.225-4, Buy American--Free Trade Agreements--Israeli Trade Act Certificate, in solicitations, including solicitations using FAR part 12 procedures for the acquisition of commercial items, that include the basic or an alternate of the clause at 252.225-7036, Buy American--Free Trade Agreements--Balance of Payments Program. If the solicitation includes the provision at FAR 52.204-7, do not separately list the provision 252.225-7035 in the solicitation.
(ii) Use the alternate I provision when the clause at 252.225-7036 is used with its Alternate I.
(iii) Use the alternate II provision when the clause at 252.225-7036 is used with its Alternate II.
(iv) Use the alternate III provision when the clause at 252.225-7036 is used with its Alternate III.
(v) Use the alternate IV provision when the clause at 252.225-7036 is used with its Alternate IV.
(vi) Use the alternate V provision when the clause at 252.225-7036 is used with its Alternate V.
(10)(i) Except as provided in paragraph (10)(ii) of this section, use the basic or an alternate of the clause at 252.225-7036, Buy American--Free Trade Agreements--Balance of Payments Program, instead of the clause at FAR 52.225-3, Buy American--Free Trade Agreements--
Israeli Trade Act, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items, for the items listed at 225.401-70, when the estimated value equals or exceeds $25,000, but is less than $204,000, unless an exception at 25.401 applies.
(A) Use the basic clause in solicitations and contracts when the estimated value equals or exceeds $79,507, except if the acquisition is of end products in support of operations in Afghanistan.
(ii) Do not use the basic or an alternate of the clause in paragraph (10)(i) of this section if--
4. Revise section 225.7503 to read as follows:
(a) Use the basic or an alternate of the clause at 252.225-7044, Balance of Payments Program--Construction Material, in solicitations and contracts for construction to be performed outside the United States, including acquisitions of commercial items or components, with an estimated value greater than the simplified acquisition threshold but less than $7,864,000.
(b) Use the basic or an alternate of the clause at 252.225-7045, Balance of Payments Program--Construction Material Under Trade Agreements, in solicitations and contracts for construction to be performed outside the United States with an estimated value of $7,864,000 or more, including acquisitions of commercial items or components.
5. Amend section 252.225-7000 by--
a. Revising the introductory text, provision title, and date, and paragraph (a);
b. In paragraph (c)(1), removing ``Buy American and Balance of Payments Program'' and adding ``Buy American and Balance of Payments Program--Basic'' in its place; and
As prescribed in 225.1101(1), use one of the following provisions:
Basic. As prescribed in 225.1101(1)(i), use the following provision:
Buy American--Balance of Payments Program Certificate--Basic (Nov 2014)
(a) Definitions. Commercially available off-the-shelf (COTS) item, component, domestic end product, foreign end product, qualifying country, qualifying country end product, South Caucasus/Central and South Asian (SC/CASA) state, South Caucasus/Central and South Asian (SC/CASA) state end product, and United States, as used in this provision, have the meanings given in the Buy American and Balance of Payments Program--Basic clause of this solicitation.
Alternate I. As prescribed in 225.1101(1)(ii), use the following provision, which adds South Caucasus/Central and South Asian (SC/CASA) state and South Caucasus/Central and South Asian (SC/CASA) state end product in paragraph (a), and replaces ``qualifying country end products'' in paragraphs (b)(2) and (c)(2) with ``qualifying country end products or SC/CASA state end products'':
Buy American--Balance of Payments Program Certificate--Alternate I (Nov 2014)
(a) Definitions. Commercially available off-the-shelf (COTS) item, component, domestic end product, foreign end product, qualifying country, qualifying country end product, South Caucasus/Central and South Asian (SC/CASA) state, South Caucasus/Central and South Asian (SC/CASA) state end product, and United States, as used in this provision, have the meanings given in the Buy American and Balance of Payments Program--Alternate I clause of this solicitation.
(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.
(1) For all line items subject to the Buy American and Balance of Payments Program--Alternate I clause of this solicitation, the offeror certifies that--
(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:
(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:
6. Amend section 252.225-7001 by--
As prescribed in 225.1101(2)(i), use one of the following clauses:
Basic. As prescribed in 225.1101(2)(ii), use the following clause:
Buy American and Balance of Payments Program--Basic (Nov 2014)
Alternate I. As prescribed in 225.1101(2)(iii), use the following clause, which adds South Caucasus/Central and South Asian (SC/CASA) state and South Caucasus/Central and South Asian (SC/CASA) state end product to paragraph (a), and uses different paragraphs (b) and (c) than the basic clause:
Buy American and Balance of Payments Program--Alternate I (Nov 2014)
(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.
Qualifying country end product means--
(ii) An end product manufactured in a qualifying country if--
South Caucasus/Central and South Asian (SC/CASA) state end product means an article that--
7. Amend section 252.225-7013 by--
a. Removing the clause date ``(OCT 2013)'' and adding ``(NOV 2014)'' in its place; and
b. In paragraph (a), revising the definition for ``Eligible product''.
(i) Designated country end product, as defined in the Trade Agreements (either basic or alternate) clause of this contract;
(ii) Free Trade Agreement country end product, other than a Bahrainian end product, a Moroccan end product, a Panamanian end product, or a Peruvian end product, as defined in the Buy American--Free Trade Agreements--Balance of Payments Program (either basic or alternate II) clause of this contract;
(iii) Canadian end product, as defined in the Buy American--Free Trade Agreements--Balance of Payments Program (either alternate I or alternate III) clause of this contract; or
(iv) Free Trade Agreement country end product other than a Bahrainian end product, Korean end product, Moroccan end product, Panamanian end product, or Peruvian end product, as defined in the Buy American--Free Trade Agreements--Balance of Payments Program (either alternate IV or alternate V) clause of this contract.
c. In paragraph (c)(1), removing ``Trade Agreements clause'' and adding ``Trade Agreements--Basic'' in its place; and
As prescribed in 225.1101(5), use one of the following provisions:
Basic. As prescribed in 225.1101(5)(i), use the following provision:
Trade Agreements Certificate--Basic (Nov 2014)
(a) Definitions. Designated country end product, nondesignated country end product, qualifying country end product, and U.S.-made end product, as used in this provision have the meanings given in the Trade Agreements--Basic clause of this solicitation.
Alternate I. As prescribed in 225.1101(5)(ii), use the following provision, which uses different paragraphs (a), (b)(2), and (c) than the basic clause:
Trade Agreements Certificate--Alternate I (Nov 2014)
(a) Definitions. Designated country end product, nondesignated country end product, qualifying country end product, South Caucasus/Central and South Asian (SC/CASA) state, South Caucasus/Central and South Asian (SC/CASA) state end product, and U.S.-made end product, as used in this provision, have the meanings given in the Trade Agreements--Alternate I clause of this solicitation.
(2) Will consider only offers of end products that are U.S.-made, qualifying country, SC/CASA state, or designated country end products unless--
(1) For all line items subject to the Trade Agreement--Alternate I clause of this solicitation, the offeror certifies that each end product to be delivered under this contract, except those listed in paragraph (c)(2)(ii) of this provision, is a U.S.-made, qualifying country, SC/CASA state, or designated country end product.
b. Revising Alternate II.
As prescribed in 225.1101(6), use one of the following clauses:
Basic. As prescribed in 225.1101(6)(i), use the following clause:
Trade Agreements--Basic (Nov 2014)
Alternate II. As prescribed in 225.1101(6)(ii), use the following clause, which (i) adds South Caucasus/Central and South Asian (SC/CASA) state and South Caucasus/Central and South Asian (SC/CASA) state end product to paragraph (a); (ii) uses a different paragraph (c) than the basic clause; (iii) adds a new paragraph (d); and (iv) includes paragraphs (e) and (f) which are the same paragraphs (d) and (e) of the basic clause:
Trade Agreements--Alternate II (Nov 2014)
(a) Definitions. As used in this clause--Caribbean Basin country end product--
(i) Means an article that--
(A) A commercial item (as defined in paragraph (1) of the definition of commercial item in section 2.101 of the Federal Acquisition Regulation);
(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);
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
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.
Free Trade Agreement country end product means an article that--
Nondesignated country end product means any end product that is not a U.S.-made end product or a designated country end product.
U.S.-made end product means an article that--
(e) The contract price does not include duty for end products or components for which the Contractor will claim duty-free entry.
(f) The HTSUS is available on the Internet at http://www.usitc.gov/tata/hts/bychapter/index.htm. The following sections of the HTSUS provide information regarding duty-free status of articles specified in paragraph (a)(2)(ii)(A) of this clause:
b. In paragraph (a), removing ``Buy American--Free Trade Agreements--Balance of Payments Program'' and adding ``Buy American--Free Trade Agreements--Balance of Payments Program--Basic'' in its place;
c. In paragraph (b)(2), removing ``Free Trade Agreements'' and adding ``Buy American--Free Trade Agreements--Balance of Payments Program--Basic clause of this solicitation'' in its place;
d. In paragraph (c)(1) introductory text, removing ``Buy American--Free Trade Agreements--Balance of Payments Program'' and adding ``Buy American--Free Trade Agreements--Balance of Payments Program--Basic'' in its place; and
e. Revising Alternates I, II, III, IV, and V.
As prescribed in 225.1101(9), use one of the following provisions:
Basic. As prescribed in 225.1101(9)(i), use the following provision:
Buy American--Free Trade Agreements--Balance of Payments Program Certificate--Basic (Nov 2014)
Alternate I. As prescribed in 225.1101(9)(ii), use the following provision, which uses Canadian end product in paragraph (a), rather than the phrases Bahrainian end product, Free Trade Agreement country, Free Trade Agreement country end product, Moroccan end product, Panamanian end product, and Peruvian end products in paragraph (a) of the basic provision; uses ``Canadian end products'' in paragraphs (b)(2) and (c)(2)(i), rather than ``Free Trade Agreement country end products other than Bahrainian end products, Moroccan end products, Panamanian end products, or Peruvian end products'' in paragraphs (b)(2) and (c)(2)(ii) of the basic provision; and does not use ``Australian or'' in paragraph (c)(2)(i):
Buy American--Free Trade Agreements--Balance of Payments Program Certificate--Alternate I (Nov 2014)
(a) Definitions. Canadian end product, commercially available off-the-shelf (COTS) item, component, domestic end product, foreign end product, qualifying country end product, and United States, as used in this provision, have the meanings given in the Buy American--Free Trade Agreements--Balance of Payments Program--Alternate I clause of this solicitation.
(2) For line items subject to the Buy American--Free Trade Agreements--Balance of Payments Program--Alternate I clause of this solicitation, will evaluate offers of qualifying country end products or Canadian end products without regard to the restrictions of the Buy American or the Balance of Payments Program.
(1) For all line items subject to the Buy American--Free Trade Agreements--Balance of Payments Program--Alternate I clause of this solicitation, the offeror certifies that--
(i) The offeror certifies that the following supplies are qualifying country (except Canadian) end products:
(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))
Alternate II. As prescribed in 225.1101(9)(iii), use the following provision, which adds South Caucasus/Central and South Asian (SC/CASA) state and South Caucasus/Central and South Asian (SC/CASA) state end product to paragraph (a), and uses different paragraphs (b)(2) and (c)(2)(i) than the basic provision:
Buy American--Free Trade Agreements--Balance of Payments Program Certificate--Alternate II (Nov 2014)
(a) Definitions. Bahrainian end product, commercially available off-the-shelf (COTS) item, component, domestic end product, Free Trade Agreement country, Free Trade Agreement country end product, foreign end product, Moroccan end product, Panamanian end product, Peruvian end product, qualifying country end product, South Caucasus/Central and South Asian (SC/CASA) state, South Caucasus/Central and South Asian (SC/CASA) state end product, and United States, as used in this provision, have the meanings given in the Buy American--Free Trade Agreements--Balance of Payments Program--Alternate II clause of this solicitation.
(2) For line items subject to the Buy American--Free Trade Agreements--Balance of Payments Program--Alternate II clause of this solicitation, will evaluate offers of qualifying country end products, SC/CASA state end products, or Free Trade Agreement 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.
(1) For all line items subject to the Buy American--Free Trade Agreements--Balance of Payments Program--Alternate II clause of this solicitation, the offeror certifies that--
(i) The offeror certifies that the following supplies are qualifying country (except Australian or Canadian) or SC/CASA state end products:
(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
Alternate III. As prescribed in 225.1101(9)(iv), use the following provision, which uses different paragraphs (a), (b)(2), (c)(2)(i), and (c)(2)(ii) than the basic provision:
Buy American--Free Trade Agreements--Balance of Payments Program Certificate--Alternate III (Nov 2014)
(a) Definitions. Canadian end product, commercially available off-the-shelf (COTS) item, domestic end product, foreign end product, qualifying country end product, South Caucasus/Central and South Asian (SC/CASA) state end product, and United States, as used in this provision have the meanings given in the Buy American--Free Trade Agreements--Balance of Payments Program--Alternate III clause of this solicitation.
(2) For line items subject to the Buy American--Free Trade Agreements--Balance of Payments Program--Alternate III clause of this solicitation, will evaluate offers of qualifying country end products, SC/CASA state end products, or Canadian end products without regard to the restrictions of the Buy American or the Balance of Payments Program.
(1) For all line items subject to the Buy American--Free Trade Agreements--Balance of Payments Program--Alternate III clause of this solicitation, the offeror certifies that--
(i) The offeror certifies that the following supplies are qualifying country (except Canadian) or SC/CASA state end products:
Alternate IV. As prescribed in 225.1101(9)(v), use the following provision, which adds Korean end product to paragraph (a); and uses ``Free Trade Agreement country end products other than Bahrainian end products, Korean end products, Moroccan end products, Panamanian end products, or Peruvian end products'' in paragraphs (b)(2) and (c)(2)(ii), rather than ``Free Trade Agreement country end products other than Bahrainian end products, Moroccan end products, Panamanian end products, or Peruvian end products'' in paragraphs (b)(2) and (c)(2)(ii) of the basic provision:
Buy American--Free Trade Agreements--Balance of Payments Program Certificate--Alternate IV (Nov 2014)
(a) Definitions. Bahrainian end product, commercially available off-the-shelf (COTS) item, component, domestic end product, Free Trade Agreement country, Free Trade Agreement country end product, foreign end product, Korean end product, Moroccan end product, Panamanian end product, Peruvian end product, qualifying country end product, and United States, as used in this provision, have the meanings given in the Buy American--Free Trade Agreements--Balance of Payments Program--Alternate IV clause of this solicitation.
(2) For line items subject to the Buy American--Free Trade Agreements--Balance of Payments Program--Alternate IV clause of this solicitation, will evaluate offers of qualifying country end products or Free Trade Agreement country end products other than Bahrainian end products, Korean end products, Moroccan end products, Panamanian end products, or Peruvian end products without regard to the restrictions of the Buy American or the Balance of Payments Program.
(1) For all line items subject to the Buy American--Free Trade Agreements--Balance of Payments Program--Alternate IV clause of this solicitation, the offeror certifies that--
Alternate V. As prescribed in 225.1101(9)(vi), use the following provision, which uses different paragraphs (a), (b)(2), (c)(2)(i), and (c)(2)(ii) than the basic provision:
Buy American--Free Trade Agreements--Balance of Payments Program Certificate--Alternate V (Nov 2014)
(a) Definitions. Bahrainian end product, commercially available off-the-shelf (COTS) item, component, domestic end product, ``Free Trade Agreement country, Free Trade Agreement country end product, foreign end product, Korean end product, Moroccan end product, Panamanian end product, Peruvian end product, qualifying country end product, South Caucasus/Central and South Asian (SC/CASA) state end product, and United States, as used in this provision, have the meanings given in the Buy American Act--Free Trade Agreements--Balance of Payments Program--Alternate V clause of this solicitation.
(2) For line items subject to the Buy American--Free Trade Agreements--Balance of Payments Program--Alternate V clause of this solicitation, will evaluate offers of qualifying country end products, SC/CASA state end products, or Free Trade Agreement end products other than Bahrainian end products, Korean end products, Moroccan end products, Panamanian end products, or Peruvian end products without regard to the restrictions of the Buy American statute or the Balance of Payments Program.
(1) For all line items subject to the Buy American--Free Trade Agreements--Balance of Payments Program--Alternate V clause of this solicitation, the offeror certifies that--
b. In paragraph (c), removing ``Buy American--Free Trade Agreements--Balance of Payments Program Certificate'' and adding ``Buy American--Free Trade Agreements--Balance of Payments Program Certificate--Basic'' in its place; and
c. Revising Alternates I, II, III, IV, and V.
As prescribed in 225.1101(10)(i), use one of the following clauses:
Basic. As prescribed in 225.1101(10)(i)(A), use the following clause:
Buy American--Free Trade Agreements--Balance of Payments Program--Basic (Nov 2014)
Alternate I. As prescribed in 225.1101(10)(i)(B), use the following clause, which adds Canadian end product to paragraph (a), and uses a different paragraph (c) than the basic clause:
Buy American--Free Trade Agreements--Balance of Payments Program--Alternate I (Nov 2014)
Bahrainian end product means an article that--
Canadian end product means an article that--
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;
Moroccan end product means an article that--
Panamanian end product means an article that--
Peruvian end product means an article that--
(c) The Contractor shall deliver under this contract only domestic end products unless, in its offer, it specified delivery of qualifying country, Canadian, or other foreign end products in the Buy American--Free Trade Agreements--Balance of Payments Program Certificate--Alternate I provision of the solicitation. If the Contractor certified in its offer that it will deliver a qualifying country end product or a Canadian end product, the Contractor shall deliver a qualifying country end product, a Canadian end product, or, at the Contractor's option, a domestic end product.
Alternate II. As prescribed in 225.1101(10)(i)(C), use the following clause, which adds South Caucasus/Central and South Asian (SC/CASA) state and South Caucasus/Central and South Asian (SC/CASA) state end product to paragraph (a), and uses a different paragraph (c) than the basic clause:
Buy American--Free Trade Agreements--Balance of Payments Program--Alternate II (Nov 2014)
(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.
(c) The Contractor shall deliver under this contract only domestic end products unless, in its offer, it specified delivery of qualifying country end products, SC/CASA state end products, Free Trade Agreement country end products other than Bahrainian end products, Moroccan end products, Panamanian end products, or Peruvian end products, or other foreign end products in the Buy American--Free Trade Agreements--Balance of Payments Program Certificate--Alternate II provision of the solicitation. If the Contractor certified in its offer that it will deliver a qualifying country end product, SC/CASA state end products, or a Free Trade Agreement country end product other than a Bahrainian end product, a Moroccan end product, a Panamanian end product, or a Peruvian end product, the Contractor shall deliver a qualifying country end product, an SC/CASA state end product, a Free Trade Agreement country end product other than a Bahrainian end product, a Moroccan end product, a Panamanian end product, or a Peruvian end product or, at the Contractor's option, a domestic end product.
Alternate III. As prescribed in 225.1101(10)(i)(D), use the following clause, which adds Canadian end product, South Caucasus/Central and South Asian (SC/CASA) state, and South Caucasus/Central and South Asian (SC/CASA) state end product to paragraph (a) and uses a different paragraph (c) than the basic clause:
Buy American--Free Trade Agreements--Balance of Payments Program--Alternate III (Nov 2014)
(c) The Contractor shall deliver under this contract only domestic end products unless, in its offer, it specified delivery of qualifying country end products, SC/CASA state end products, Canadian end products, or other foreign end products in the Buy American--Free Trade Agreements--Balance of Payments Program Certificate--Alternate III provision of the solicitation. If the Contractor certified in its offer that it will deliver a qualifying country end product, SC/CASA state end products, or a Canadian end product, the Contractor shall deliver a qualifying country end product, an SC/CASA state end product, a Canadian end product or, at the Contractor's option, a domestic end product.
Alternate IV. As prescribed in 225.1101(10)(i)(E), use the following clause, which adds Korean end product to paragraph (a), and uses a different paragraph (c) than the basic clause:
Buy American--Free Trade Agreements--Balance of Payments Program--Alternate IV (Nov 2014)
Korean end product means an article that--
(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.
(c) The Contractor shall deliver under this contract only domestic end products unless, in its offer, it specified delivery of qualifying country end products, Free Trade Agreement country end products other than Bahrainian end products, Korean end products, Moroccan end products, Panamanian end products, or Peruvian end products, or other foreign end products in the Buy American--Free Trade Agreements--Balance of Payments Program Certificate--Alternate IV provision of the solicitation. If the Contractor certified in its offer that it will deliver a qualifying country end product or a Free Trade Agreement country end product other than a Bahrainian end product, a Korean end product, a Moroccan end product, a Panamanian end product, or a Peruvian end product, the Contractor shall deliver a qualifying country end product, a Free Trade Agreement country end product other than a Bahrainian end product, a Korean end product, a Moroccan end product, a Panamanian end product, or a Peruvian end product, or, at the Contractor's option, a domestic end product.
Alternate V. As prescribed in 225.1101(10)(i)(F), use the following clause, which adds Korean end product, South Caucasus/Central and South Asian (SC/CASA) state, and South Caucasus/Central and South Asian (SC/CASA) state end product to paragraph (a), and uses a different paragraph (c) than the basic clause:
Buy American--Free Trade Agreements--Balance of Payments Program--Alternate V (Nov 2014)
(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.
(c) The Contractor shall deliver under this contract only domestic end products unless, in its offer, it specified delivery of qualifying country end products, SC/CASA state end products, Free Trade Agreement country end products other than Bahrainian end products, Korean end products, Moroccan end products, Panamanian end products, or Peruvian end products, or other foreign end products in the Buy American--Free Trade Agreements--Balance of Payments Program Certificate--Alternate V provision of the solicitation. If the Contractor certified in its offer that it will deliver a qualifying country end product, SC/CASA state end products, or a Free Trade Agreement country end product other than a Bahrainian end product, a Korean end product, a Moroccan end product, a Panamanian end product, or a Peruvian end product, the Contractor shall deliver a qualifying country end product, an SC/CASA state end product, a Free Trade Agreement country end product other than a Bahrainian end product, a Korean end product, a Moroccan end product, a Panamanian end product, or a Peruvian end product or, at the Contractor's option, a domestic end product.
b. In paragraph (a), redesignating the paragraph numbers for--
i. Commercially available off-the shelf (COTS) item by redesignating paragraphs (1) and (2) as (i) and (ii); and in the newly redesignated paragraph (i), redesignating paragraphs (i), (ii), and (iii) as (i)(A), (B), and (C), respectively;
ii. Cost of components by redesignating paragraphs (1) and (2) as (i) and (ii), respectively;
iii. Domestic construction material by redesignating paragraphs (1) and (2) as (i) and (ii); and in the newly redesignated paragraph (ii), redesignating paragraphs (i) and (ii) as (ii)(A) and (B), respectively; and
As prescribed in 225.7503(a), use one of the following clauses:
Basic. As prescribed in 225.7503(a)(1), use the following clause:
Balance of Payments Program--Construction Material--Basic (Nov 2014)
Alternate I. As prescribed in 225.7503(a)(2), use the following clause, which adds definitions for South Caucasus/Central and South Asian (SC/CASA) state and SC/CASA state construction material to paragraph (a), and uses ``domestic construction material or SC/CASA state construction material'' instead of ``domestic construction material'' in the second sentence of paragraph (b):
Balance of Payments Program--Construction Material--Alternate I (Nov 2014)
Commercially available off-the-shelf (COTS) item''--
(ii) Does not include bulk cargo, as defined in 46 U.S.C. 40102(4), such as agricultural products and petroleum products. Component means any article, material, or supply incorporated directly into construction material.
Cost of components means--
(ii) A construction material manufactured in the United States, if--
(b) Domestic preference. This clause implements the Balance of Payments Program by providing a preference for domestic construction material. The Contractor shall use only domestic construction material or SC/CASA state construction material in performing this contract, except for--
i. Caribbean Basin country construction material by redesignating paragraphs (1) and (2) as (i) and (ii), respectively;
ii. Commercially available off-the-shelf (COTS) item by redesignating paragraphs (1) and (2) as (i) and (ii); and in the newly redesignated paragraph (i), redesignating paragraphs (i), (ii), and (iii) as (i)(A), (B), and (C), respectively;
iii. Cost of components by redesignating paragraphs (1) and (2) as (i) and (ii), respectively;
iv. Designated country by redesignating paragraphs (1) through (4) as (i) through (iv), respectively;
v. Domestic construction material by redesignating paragraphs (1) and (2) as (i) and (ii); and in the newly redesignated paragraph (ii) redesignating paragraphs (i) and (ii) as (ii)(A) and (B);
vi. Free Trade Agreement country construction material by redesignating paragraphs (1) and (2) as (i) and (ii);
vii. Least developed country construction material by redesignating paragraphs (1) and (2) as (i) and (ii);
viii. WTO GPA country construction material by redesignating paragraphs (1) and (2) as (i) and (ii); and
c. Revising Alternates I, II, and III.
As prescribed in 225.7503(b), use one of the following clauses:
Basic. As prescribed in 225.7503(b)(1), use the following clause:
Balance of Payments Program--Construction Material Under Trade Agreements--Basic (Nov 2014)
Alternate I. As prescribed in 225.7503(b)(2), use the following clause, which adds Bahrainian or Mexican construction material to paragraph (a), and uses a different paragraph (b) and (c) than the basic clause:
Balance of Payments Program--Construction Material Under Trade Agreements--Alternate I (Nov 2014)
Bahrainian or Mexican construction material means a construction material that--
(i) Is wholly the growth, product, or manufacture of Bahrain or Mexico; or
(ii) In the case of a construction material that consists in whole or in part of materials from another country, has been substantially transformed in Bahrain or Mexico into a new and different construction material distinct from the materials from which it was transformed.
Component means any article, material, or supply incorporated
directly into construction material.
(i) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as ``the Separate Customs Territory of Taiwan, Penghu, Kinmen, and Matsu'' (Chinese Taipei)), or the United Kingdom);
Free Trade Agreement country construction material means a construction material that--
Alternate II. As prescribed in 225.7503(b)(3), use the following clause, which adds South Caucasus/Central and South Asian (SC/CASA) state and SC/CASA state construction material to paragraph (a), uses a different paragraph (b) and introductory text for paragraph (c) than the basic clause, and adds paragraph (d):
Balance of Payments Program--Construction Material Under Trade Agreements--Alternate II (Nov 2014)
(2) Information technology that is a commercial item; or (3) The construction material or components listed by the Government as follows:
Alternate III. As prescribed in 225.7503(b)(4), use the following clause, which adds South Caucasus/Central and South Asian (SC/CASA state and SC/CASA state construction material to paragraph (a), uses a different paragraph (b) and introductory text for paragraph (c) than the basic clause, and adds paragraph (d):
Balance of Payments Program--Construction Material Under Trade Agreements--Alternate III (Nov 2014)
[FR Doc. 2014-26161 Filed 11-4-14; 8:45 am]