TITLE 48 - FEDERAL ACQUISITION REGULATIONS SYSTEM

CHAPTER 2 - DEFENSE ACQUISITION REGULATIONS SYSTEMS, DEPARTMENT OF DEFENSE

SUBCHAPTER H - CLAUSES AND FORMS

PART 252 - SOLICITATION PROVISIONS AND CONTRACT CLAUSES

252.225 - 7001 - Buy American Act and Balance of Payments Program.

As prescribed in 225.1101(2), use the following clause: Buy American Act and Balance of Payments Program (JUN 2005) (a) Definitions. As used in this clause (1) Component means an article, material, or supply incorporated directly into an end product.

  (2) Domestic end product means (i) An unmanufactured end product that has been mined or produced in the United States; or (ii) An end product manufactured in the United States if the cost of its qualifying country components and its components that are mined, produced, or manufactured in the United States exceeds 50 percent of the cost of all its components. The cost of components includes transportation costs to the place of incorporation into the end product and U.S. duty (whether or not a duty-free entry certificate is issued).

Scrap generated, collected, and prepared for processing in the United States is considered domestic. A component is considered to have been mined, produced, or manufactured in the United States (regardless of its source in fact) if the end product in which it is incorporated is manufactured in the United States and the component is of a class or kind for which the Government has determined that (A) Sufficient and reasonably available commercial quantities of a satisfactory quality are not mined, produced, or manufactured in the United States; or (B) It is inconsistent with the public interest to apply the restrictions of the Buy American Act.

  (3) End product means those articles, materials, and supplies to be acquired under this contract for public use.

  (4) Foreign end product means an end product other than a domestic end product.

  (5) Qualifying country means any country set forth in subsection 225.8721 of the Defense Federal Acquisition Regulation Supplement.

  (6) Qualifying country component means a component mined, produced, or manufactured in a qualifying country.

  (7) Qualifying country end product means (i) An unmanufactured end product mined or produced in a qualifying country; or (ii) An end product manufactured in a qualifying country if the cost of the following types of components exceeds 50 percent of the cost of all its components: (A) Components mined, produced, or manufactured in a qualifying country.

  (B) Components mined, produced, or manufactured in the United States.

  (C) Components of foreign origin of a class or kind for which the Government has determined that sufficient and reasonably available commercial quantities of a satisfactory quality are not mined, produced, or manufactured in the United States.

  (8) United States means the 50 States, the District of Columbia, and outlying areas.

  (b) This clause implements the Buy American Act (41 U.S.C. Section 10ad).

Unless otherwise specified, this clause applies to all line items in the contract.

  (c) The Contractor shall deliver only domestic end products unless, in its offer, it specified delivery of other end products in the Buy American ActBalance of Payments Program Certificate provision of the solicitation. If the Contractor certified in its offer that it will deliver a qualifying country end product, the Contractor shall deliver a qualifying country end product or, at the Contractor's option, a domestic end product.

  (d) The contract price does not include duty for end products or components for which the Contractor will claim duty-free entry.

(End of clause) [68 FR 15634, Mar. 31, 2003, as amended at 70 FR 35546, June 21, 2005]