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DFARS 225



Part 225-Foreign Acquisition

TABLE OF CONTENTS

225.000 Scope of part.

225.000-70 Definitions.

225.000-71 General guidelines.

SUBPART 225.1--BUY AMERICAN ACT--SUPPLIES

225.102 Policy.

225.103 Agreements with certain foreign governments.

225.105 Evaluating offers.

225.107 Acquisition from or through other Government agencies.

225.108 Excepted articles, materials, and supplies.

225.109 Solicitation provisions and contract clauses.

225.109-70 Additional provisions and clauses.

SUBPART 225.2--BUY AMERICAN ACT--CONSTRUCTION MATERIALS

225.202 Policy.

SUBPART 225.3--BALANCE OF PAYMENTS PROGRAM

225.302 Policy.

225.303 Procedures.

225.305 Solicitation provision and contract clause.

225.305-70 Additional clause.

SUBPART 225.4--TRADE AGREEMENTS

225.401 Definitions.

225.402 Policy.

225.403 Exceptions.

225.403-70 Products subject to trade agreements act.

225.405 Procedures.

225.408 Solicitation provisions and contract clauses.

SUBPART 225.6--CUSTOMS AND DUTIES

225.602 Policy.

225.603 Procedures.

225.604 Exempted supplies.

225.605 Contract clause.

225.605-70 Additional solicitation provisions and contract clauses.

SUBPART 225.7--RESTRICTIONS ON CERTAIN FOREIGN PURCHASES

225.702 Restrictions.

225.770 Secondary Arab boycott of Israel.

225.770-1 Restriction.

225.770-2 Procedures.

225.770-3 Exceptions.

225.770-4 Waivers.

225.770-5 Solicitation provision and contract clause.

SUBPART 225.8--INTERNATIONAL AGREEMENTS AND COORDINATION

225.801 International agreements.

225.802 Procedures.

225.802-70 Contracts for performance outside the United States and Canada.

225.802-71 End user certificates.

225.870 Contracting with Canadian contractors.

225.870-1 General.

225.870-2 Solicitation of Canadian contractors.

225.870-3 Submission of offers.

225.870-4 Contracting procedures.

225.870-5 Contract administration.

225.870-6 Termination procedures.

225.870-7 Acceptance of Canadian supplies.

225.870-8 Industrial security.

225.871 North Atlantic Treaty Organization (NATO) cooperative projects.

225.871-1 Scope.

225.871-2 Definitions.

225.871-3 General.

225.871-4 Statutory waivers.

225.871-5 Directed subcontracting.

225.871-6 Disposal of property.

225.871-7 Congressional notification.

225.872 Contracting with qualifying country sources.

225.872-1 General.

225.872-2 Applicability.

225.872-3 Solicitation procedures.

225.872-4 Evaluation of offers.

225.872-5 Contract administration.

225.872-6 Audit.

225.872-7 Industrial security for qualifying countries.

225.872-8 Subcontracting with qualifying country sources.

225.873 Waiver of United Kingdom commercial exploitation levies.

225.873-1 Policy.

225.873-2 Procedures.

225.873-3 Contract clause.

SUBPART 225.9--ADDITIONAL FOREIGN ACQUISITION CLAUSES

225.970 Clause deviations in overseas contracts.

225.971 Correspondence in English.

225.972 Authorization to perform.

SUBPART 225.70--AUTHORIZATION ACTS, APPROPRIATIONS ACTS, AND

225.7000 Scope of subpart.

225.7001 Definitions.

225.7002 Restrictions on food, clothing, fabrics, specialty metals, and hand

225.7002-1 Restrictions.

225.7002-2 Exceptions.

225.7002-3 Contract clauses.

225.7003 Restriction on overseas military construction.

225.7004 Restriction on overseas architect-engineer services.

225.7005 Waiver of certain restrictions.

225.7006 Restrictions on construction or repair of vessels in foreign shipyards.

225.7007 Restriction on acquisition of foreign buses.

225.7007-1 Restriction.

225.7007-2 Applicability.

225.7007-3 Exceptions.

225.7007-4 Waiver.

225.7008 Restriction on research and development.

225.7009 Reserved.

225.7010 Restriction on certain chemical weapons antidote.

225.7010-1 Restriction.

225.7010-2 Exception.

225.7010-3 Waiver.

225.7011 Restriction on Ballistic Missile Defense research, development,

225.7011-1 Definitions.

225.7011-2 Restriction.

225.7011-3 Exceptions.

225.7011-4 Procedures.

225.7011-5 Solicitation provision.

225.7012 Restrictions on anchor and mooring chain.

225.7012-1 Restrictions.

225.7012-2 Waiver.

225.7012-3 Contract clause.

225.7013 Reserved.

225.7014 Reserved.

225.7015 Restriction on night vision image intensifier tubes and devices.

225.7015-1 Restriction.

225.7015-2 Exception.

225.7015-3 Contract clause.

225.7016 Restriction on air circuit breakers for naval vessels.

225.7016-1 Restriction.

225.7016-2 Exceptions.

225.7016-3 Waiver.

225.7016-4 Contract clause.

225.7017 Restriction on carbon, alloy, and armor steel plate.

225.7017-1 Restriction.

225.7017-2 Exceptions.

225.7017-3 Waiver.

225.7017-4 Contract clause.

225.7018 Restriction on four ton dolly jacks.

225.7018-1 Restriction.

225.7018-2 Waiver.

225.7018-3 Contract clause.

225.7019 Restrictions on ball and roller bearings.

225.7019-1 Restrictions.

225.7019-2 Exceptions.

225.7019-3 Waiver.

225.7019-4 Contract clause.

225.7020 Reserved.

225.7021 Restriction on aircraft fuel cells.

225.7021-1 Restriction.

225.7021-2 Waiver.

225.7021-3 Contract clause.

225.7022 Restrictions on totally enclosed lifeboat survival systems.

225.7022-1 Restrictions.

225.7022-2 Exceptions.

225.7022-3 Waiver.

225.7022-4 Contract clause.

225.7023 Restriction on supercomputers.

225.7023-1 Restriction.

225.7023-2 Waiver.

225.7023-3 Contract clause.

SUBPART 225.71--OTHER RESTRICTIONS ON FOREIGN ACQUISITION

225.7100 Scope of subpart.

225.7101 Definitions.

225.7102 Forgings.

225.7102-1 Policy.

225.7102-2 Exceptions.

225.7102-3 Waiver.

225.7102-4 Contract clause.

225.7103 Polyacrylonitrile (PAN) carbon fiber.

225.7103-1 Policy.

225.7103-2 Waivers.

225.7103-3 Contract clause.

SUBPART 225.72--REPORTING CONTRACT PERFORMANCE OUTSIDE THE UNITED STATES

225.7200 Scope of subpart.

225.7201 Exception.

225.7202 Distribution of reports.

225.7203 Contract clause.

SUBPART 225.73--ACQUISITIONS FOR FOREIGN MILITARY SALES

225.7300 Scope of subpart.

225.7301 General.

225.7302 Procedures.

225.7303 Pricing acquisitions for FMS.

225.7303-1 Contractor sales to other foreign customers.

225.7303-2 Cost of doing business with a foreign government or an international

225.7303-3 Government-to-government agreements.

225.7303-4 Contingent fees.

225.7303-5 Acquisitions wholly paid for from nonrepayable funds.

225.7304 Source selection.

225.7305 Limitation of liability.

225.7306 Exercise of options for FMS.

225.7307 Offset arrangements.

225.7308 Contract clauses.

SUBPART 225.74--ANTITERRORISM/FORCE POLICY PROTECTION FOR
DEFENSE CONTRACTORS OUTSIDE THE UNITED STATES

225.7400 Scope of subpart.

225.7401 General.

225.7402 Contract clause.

225.000 Scope of part.

This part also provides policy and procedures for-

225.000-70 Definitions.

As used in this part-

225.000-71 General guidelines.

To apply the policies and procedures of this part, analyze and evaluate offers of foreign end products generally as follows-

209.104-1(g).

SUBPART 225.1--BUY AMERICAN ACT--SUPPLIES

225.102 Policy.

225.103 Agreements with certain foreign governments.

See 225.872.

225.105 Evaluating offers.

Use the following procedures instead of those in FAR 25.105. 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.

TABLE 25-1, EVALUATION

 

Example 1

 

Alternate I: Duty Not Exempted for Nonqualifying Country Offers:

 

Nonqualifying Country Offer (including $100 duty)

$

6,000

 

Domestic Offer

8,900

 

Qualifying Country Offer

9,100

 

Award on Domestic Offer. The 50% evaluation factor is added to the nonqualifying country offer, inclusive of duty, yielding an evaluated price of $9,000.

 

Alternate II: Duty Exempted:

 
 

Nonqualifying Country Offer (including $1,000 duty)

$

600,000

 

Domestic Offer

 

910,000

 

Qualifying Country Offer

 

920,000

 

Award on Nonqualifying Country Offer. The addition of the evaluation factor yields an evaluated price of $900,000. Since duty is being exempted for nonqualifying country offers, the duty is subtracted from the offered price which is awarded at $599,000.

 

Example 2

 

Alternate I: Duty Not Exempted for Nonqualifying Country Offers:

 
 

Nonqualifying Country Offer (including $100 duty)

$

6,000

 

Domestic Offer

 

8,500

 

Qualifying Country Offer

 

7,800

 

Award on Nonqualifying Country Offer. Since the qualifying country offer is lower than the domestic offer, the nonqualifying country offer is evaluated without the factor. Since duty is not being exempted for nonqualifying country offers, the offer is evaluated and award is made at the price inclusive of duty ($6,000).

 

Alternate II: Duty Exempted:

 
 

Nonqualifying Country Offer (including $1,000 duty)

$

880,500

 

Domestic Offer

 

950,000

 

Qualifying Country Offer

 

880,000

 

Award on Nonqualifying Country Offer. Again, the qualifying country offer is lower than the domestic offer. The nonqualifying country offer is, therefore, evaluated without the factor. Since duty is being exempted for nonqualifying country offers, the duty identified by the offeror is subtracted from the offered price, which is evaluated and awarded at $879,500.

 

Example 3

 

Alternate I: Duty Not Exempted for Nonqualifying Country Offers:

 
 

Nonqualifying Country Offer (including $150 duty)

$

9,600

 

Qualifying Country Offer

 

9,500

 

Award on Qualifying Country Offer. Since no domestic offers are received, the nonqualifying country offer is evaluated without the evaluation factor. Since duty is not being exempted and would be paid by the Government, the nonqualifying country offer is evaluated inclusive of duty.

 

Alternate II: Duty Exempted:

 
 

Nonqualifying Country Offer (including $1,000 duty)

$

880,500

 

Qualifying Country Offer

 

880,000

 

Award on Nonqualifying Country Offer. Since no domestic offers are received, the nonqualifying country offer is evaluated without the evaluation factor. Since duty is being exempted, duty is subtracted from the nonqualifying country offer, which is evaluated and awarded at $879,500.

 

Example 4

 

Alternate I:

 
 

Offer of U.S. Made End Product which is not a Domestic Offer

$

800,000

 

Domestic Offer

 

820,000

 

Eligible Product

 

830,000

 

Award on Domestic End Product. U.S. made end products which are not also domestic end products are evaluated the same as nonqualifying country end products. Adding the 50% evaluation factor yields an evaluated price of $1,200,000.

 

Alternate II:

 
 

Offer of U.S. Made End Product which is not a Domestic Offer

$

800,000

 

Eligible Product

 

820,000

 

Domestic Offer

 

830,000

 

Award on U.S. Made End Product. Adding the 50% evaluation factor to the U.S. made end product would not result in the award of a domestic end product since the eligible product, which is evaluated the same as a qualifying country offer, is lower. All offers are evaluated without the factor.

225.107 Acquisition from or through other Government agencies.

Contracting activities must apply the evaluation procedures in 225.105 when using Federal supply schedules.

225.108 Excepted articles, materials, and supplies.

Sperm oil.

225.109 Solicitation provisions and contract clauses.

225.109-70 Additional provisions and clauses.

SUBPART 225.2--BUY AMERICAN ACT--CONSTRUCTION MATERIALS

225.202 Policy.

SUBPART 225.3--BALANCE OF PAYMENTS PROGRAM

225.302 Policy.

225.303 Procedures.

225.305 Solicitation provision and contract clause.

225.305-70 Additional clause.

In order to allow accurate reporting, by cognizant accounting and disbursing officers, of foreign and domestic expenditures, use the clause at 252.225-7005, Identification of Expenditures in the United States, in all negotiated contracts over $25,000 where-

SUBPART 225.4--TRADE AGREEMENTS

225.401 Definitions.

"Caribbean Basin country end product" includes petroleum or any product derived from petroleum.

"Eligible product" means, instead of the definition at FAR 25.401, a designated, NAFTA, or Caribbean Basin country end product in the categories listed in 225.403-70.

225.402 Policy.

225.403 Exceptions.

225.403-70 Products subject to trade agreement acts.

Foreign end products subject to the Trade Agreements Act and NAFTA are those in the following Federal supply groups (FSG). If a product is not in one of the listed groups, the Trade Agreements Act and NAFTA do not apply. The definition of Caribbean Basin country end products in FAR 25.401 excludes those end products which are not eligible for duty-free treatment under 19 U.S.C. 2703(b). However, 225.401 expands the definition of Caribbean Basin country end products to include petroleum and any product derived from petroleum. The list of products has been annotated to indicate those products which are eligible for designated and NAFTA countries, but are not presently eligible for Caribbean Basin countries.

FSG

Category/Description

   

22

Railway equipment

23

Motor vehicles, trailers, and cycles (except 2350 and buses under 2310)

24

Tractors

25

Vehicular equipment components

26

Tires and tubes

29

Engine accessories

30

Mechanical power transmission equipment

32

Woodworking machinery and equipment

34

Metalworking machinery

35

Service and trade equipment

36

Special industry machinery (except 3690)

37

Agricultural machinery and equipment

38

Construction, mining, excavating, and highway maintenance equipment

39

Materials handling equipment

40

Rope, cable, chain and fittings

41

Refrigeration and air conditioning equipment

42

Fire fighting, rescue and safety equipment

43

Pumps and compressors

44

Furnace, steam plant and drying equipment (except 4470)

45

Plumbing, heating, and sanitation equipment

46

Water purification and sewage treatment equipment

47

Piping, tubing, hose, and fitting

48

Valves

49

Maintenance and repair shop equipment (except 4920-4927, 4931-4935, 4960)

53

Hardware and abrasives

54

Prefabricated structures and scaffolding

55

Lumber, millwork, plywood, and veneer

56

Construction and building materials

61

Electric wire, and power and distribution equipment

62

Lighting fixtures and lamps

63

Alarm and signal systems

65

Medical, dental, and veterinary equipment and supplies

66

Instruments and laboratory equipment (except aircraft clocks under 6645) - See FAR 25.401 exclusion of certain watches and watch parts for certain Caribbean Basin countries

67

Photographic equipment

68

Chemicals and chemical products

69

Training aids and devices

70

General purpose ADPE, software, supplies, and support equipment

71

Furniture

72

Household and commercial furnishings and appliances

73

Food preparation and serving equipment

74

Office machines, visible record equipment and ADP equipment

75

Office supplies and devices

76

Books, maps, and other publications

77

Musical instruments, phonographs, and home type radios

78

Recreational and athletic equipment

79

Cleaning equipment and supplies

80

Brushes, paints, sealers, and adhesives

81

Containers, packaging and packing supplies (except 8140)

84

Luggage (only 8460) - See FAR 25.401 for exclusion of luggage for Caribbean Basin countries

85

Toiletries

87

Agricultural supplies

88

Live animals

91

Fuels, oils, and waxes

93

Nonmetallic fabricated materials

94

Nonmetallic crude materials

96

Ores, minerals, and their primary products

99

Miscellaneous

225.405 Procedures.

225.408 Solicitation provisions and contract clauses.

SUBPART 225.6--CUSTOMS AND DUTIES

225.602 Policy.

225.603 Procedures.

225.604 Exempted supplies.

225.605 Contract clause.

225.605-70 Additional solicitation provisions and contract clauses.

SUBPART 225.7--RESTRICTIONS ON CERTAIN FOREIGN PURCHASES

225.702 Restrictions.

See 209.104-1(g)(i) for restrictions on contracting with firms owned or controlled by foreign governments that support terrorism. See 209.104-1(g)(ii) for prohibition on award of a DoD contract under a national security program to an entity controlled by a foreign government when access to proscribed information is required to perform the contract.

225.770 Secondary Arab boycott of Israel.

225.770-1 Restriction.

In accordance with 10 U.S.C. 2410i, do not enter into a prime contract with a foreign person, company, or entity unless it has certified that it does not comply with the secondary Arab boycott of Israel.

225.770-2 Procedures.

For contracts awarded to the Canadian Commercial Corporation (CCC), the CCC will submit a certification from its proposed subcontractor with the other required precontractual material (see 225.870).

225.770-3 Exceptions.

The restriction does not apply to-

225.770-4 Waivers.

The Secretary of Defense may waive the restriction on the basis of national security interests. Waiver requests should be forwarded to the Director of Defense Procurement, USD(A&T)DP.

225.770-5 Solicitation provision and contract clause.

Unless an exception applies or a waiver has been granted, use the clause at 252.225-7031, Secondary Arab Boycott of Israel, in all solicitations and contracts.

SUBPART 225.8--INTERNATIONAL AGREEMENTS AND COORDINATION

225.801 International agreements.

225.802 Procedures.

225.802-70 Contracts for performance outside the United States and Canada.

225.802-71 End user certificates.

Contracting officers considering the purchase of an item from a foreign source may encounter a request for the signing of a certificate to the effect that the Armed Forces of the United States is the end user of the equipment, and that it will not be transferred to third parties without authorization from the Government of the country selling the item. When encountering this situation, refer to DoD Directive 2040.3, End User Certificates, for guidance.

225.870 Contracting with Canadian contractors.

225.870-1 General.

225.870-2 Solicitation of Canadian contractors.

225.870-3 Submission of offers.

225.870-4 Contracting procedures.

225.870-5 Contract administration.

225.870-6 Termination procedures.

225.870-7 Acceptance of Canadian supplies.

225.870-8 Industrial security.

Industrial security for Canada shall be in accordance with the U.S.-Canada Industrial Security Agreement of March 31, 1952, as amended.

225.871 North Atlantic Treaty Organization (NATO) cooperative projects.

225.871-1 Scope.

225.871-2 Definitions.

225.871-3 General.

225.871-4 Statutory waivers.

225.871-5 Directed subcontracting.

225.871-6 Disposal of property.

Dispose of property that is jointly acquired by the members of a cooperative project under the procedures established in the agreement or in a manner consistent with the terms of the agreement.

225.871-7 Congressional notification.

225.872 Contracting with qualifying country sources.

225.872-1 General.

225.872-2 Applicability.

225.872-3 Solicitation procedures.

225.872-4 Evaluation of offers.

225.872-5 Contract administration.

225.872-6 Audit.

225.872-7 Industrial security for qualifying countries.

The required procedures for safeguarding classified defense information necessary for the performance of contracts awarded to qualifying country sources are in the DoD Industrial Security Regulation DoD 5220.22-R (implemented for the Army by AR 380-49; for the Navy by OPNAV Instruction 5540.8L; for the Air Force by AFR 205-4; for the Defense Information Systems Agency by DCA Instruction 240-110-8; and for the Defense Mapping Agency by DMA Instruction 5220.22).

225.872-8 Subcontracting with qualifying country sources.

In reviewing contractor subcontracting procedures, the contracting officer shall ensure that the prime contract does not preclude qualifying country sources from competing for subcontracts, except when restricted by national security interest reasons, mobilization base considerations, or applicable U.S. laws or regulations. (See the clause at 252.225-7002, Qualifying Country Sources as Subcontractors.)

225.873 Waiver of United Kingdom commercial exploitation levies.

225.873-1 Policy.

DoD and the Government of the United Kingdom (U.K.) have agreed to waive U.K. commercial exploitation levies and U.S. nonrecurring cost recoupment charges on a reciprocal basis. In order for U.K. levies to be waived, they must be identified and a waiver must be requested before award of the contract or subcontract under which the levies are charged.

225.873-2 Procedures.

225.873-3 Contract clause.

Use the clause at 252.225-7032, Waiver of United Kingdom Levies, in all solicitations and contracts for supplies-

SUBPART 225.9--ADDITIONAL FOREIGN ACQUISITION CLAUSES

225.970 Clause deviations in overseas contracts.

See 201.402(2) for approval authority for clause deviations in overseas contracts with governments of North Atlantic Treaty Organization (NATO) countries or other allies or with United Nations or NATO organizations.

225.971 Correspondence in English.

Use the clause at 252.225-7041, Correspondence in English, in solicitations and contracts when contract performance will be wholly or in part in a foreign country.

225.972 Authorization to perform.

Use the clause at 252.225-7042, Authorization to Perform, in solicitations and contracts when contract performance will be wholly or in part in a foreign country.

SUBPART 225.70--AUTHORIZATION ACTS, APPROPRIATIONS ACTS, AND OTHER STATUTORY RESTRICTIONS ON FOREIGN ACQUISITION

225.7000 Scope of subpart.

225.7001 Definitions.

As used in this subpart-

225.7002 Restrictions on food, clothing, fabrics, specialty metals, and hand or measuring tools.

225.7002-1 Restrictions.

225.7002-2 Exceptions.

Acquisitions in the following categories are not subject to the restrictions in 225.7002-1-

225.7002-3 Contract clauses.

Unless an exception is known to apply-

225.7003 Restriction on overseas military construction.

For restriction on award of military construction contracts to be performed in the United States territories and possessions in the Pacific and on Kwajalein Atoll, or in countries bordering the Arabian Gulf, see 236.274(a).

225.7004 Restriction on overseas architect-engineer services.

For restriction on award of architect-engineer contracts to be performed in Japan, in any North Atlantic Treaty Organization member country, or in countries bordering the Arabian Gulf, see 236.602-70.

225.7005 Waiver of certain restrictions.

225.7006 Restrictions on construction or repair of vessels in foreign shipyards.

10 U.S.C. 7309 restricts constructing or repairing vessels in foreign shipyards.

225.7007 Restriction on acquisition of foreign buses.

225.7007-1 Restriction.

In accordance with 10 U.S.C. 2534, do not acquire a multipassenger motor vehicle (bus) unless it is manufactured in the United States or Canada.

225.7007-2 Applicability.

Apply this restriction if the buses are purchased, leased, rented, or made available under contracts for transportation services.

225.7007-3 Exceptions.

This restriction does not apply in any of the following circumstances:

225.7007-4 Waiver.

The waiver criteria at 225.7005(a) apply to this restriction.

225.7008 Restriction on research and development.

225.7009 Reserved.

225.7010 Restriction on certain chemical weapons antidote.

225.7010-1 Restriction.

In accordance with 10 U.S.C. 2534 and defense industrial mobilization requirements (see Subpart 208.72), do not acquire chemical weapons antidote contained in automatic injectors, or the components for such injectors, unless the chemical weapons antidote or component is manufactured in the United States or Canada by a company that-

225.7010-2 Exception.

The restriction of 225.7010-1 does not apply if the acquisition is for an amount that does not exceed the simplified acquisition threshold.

225.7010-3 Waiver.

The waiver criteria at 225.7005(a) apply to this restriction.

225.7011 Restriction on Ballistic Missile Defense research, development, test, and evaluation.

225.7011-1 Definitions.

"Competent," "foreign firm," and "U.S. firm" have the meanings given in the provision at 252.225-7018, Notice of Prohibition of Certain Contracts with Foreign Entities for the Conduct of Ballistic Missile Defense RDT&E.

225.7011-2 Restriction.

225.7011-3 Exceptions.

This prohibition shall not apply-

225.7011-4 Procedures.

225.7011-5 Solicitation provision.

Use the provision at 252.225-7018, Notice of Prohibition of Certain Contracts With Foreign Entities for the Conduct of Ballistic Missile Defense RDT&E, in all competitively negotiated BMD solicitations for research, development, test, and evaluation, unless foreign participation is otherwise excluded.

225.7012 Restrictions on anchor and mooring chain.

225.7012-1 Restrictions.

225.7012-2 Waiver.

The restriction in 225.7012-1(a) may be waived by the Secretary of the Department responsible for acquisition, on a case-by-case basis, where sufficient domestic suppliers are not available to meet DoD requirements on a timely basis and the acquisition is necessary to acquire capability for national security purposes.

225.7012-3 Contract clause.

Use the clause at 252.225-7019, Restriction on Acquisition of Foreign Anchor and Mooring Chain, in all solicitations and contracts-

225.7013 Reserved.

225.7014 Reserved.

225.7015 Restriction on night vision image intensifier tubes and devices.

225.7015-1 Restriction.

In accordance with Pub. L. 101-165 and 101-511, fiscal years 1990 and 1991 funds may not be used to acquire second and third generation night vision image intensifier tubes and devices unless they are manufactured in the United States or Canada.

225.7015-2 Exception.

Second and third generation night vision image intensifier tubes and devices manufactured outside the United States or Canada may be acquired if-

225.7015-3 Contract clause.

Use the clause at 252.225-7024, Restriction on Acquisition of Night Vision Image Intensifier Tubes and Devices, in all solicitations and contracts which-

225.7016 Restriction on air circuit breakers for naval vessels.

225.7016-1 Restriction.

In accordance with 10 U.S.C. 2534 and 225.7005(b), do not acquire air circuit breakers for naval vessels unless they are manufactured in the United States, Canada, or the United Kingdom.

225.7016-2 Exceptions.

This restriction does not apply if-

225.7016-3 Waiver.

The waiver criteria at 225.7005(a) apply to this restriction.

225.7016-4 Contract clause.

Use the clause at 252.225-7029, Preference for United States or Canadian Air Circuit Breakers, in all solicitations and contracts requiring air circuit breakers for naval vessels, unless-

225.7017 Restriction on carbon, alloy, and armor steel plate.

225.7017-1 Restriction.

In accordance with Section 8111 of Pub. L. 102-172, and similar sections in subsequent appropriations acts, all carbon, alloy, and armor steel plate in Federal stock class 9515 or described by American Society for Testing Materials (ASTM) or American Iron and Steel Institute (AISI) specifications, purchased by the Government or a contractor for use in a Government-owned facility or in a facility controlled (e.g., leased) by DoD, shall be melted and rolled in the United States or Canada.

225.7017-2 Exceptions.

This restriction does not apply to-

225.7017-3 Waiver.

The restriction may be waived by the Secretary of the department responsible for acquisition, on a case-by-case basis, by certifying to the House and Senate Committees on Appropriations that-

225.7017-4 Contract clause.

Unless an exception under 225.7017-2 is known to apply or a waiver has been granted in accordance with 225.7017-3, use the clause at 252.225-7030, Restriction on Acquisition of Carbon, Alloy, and Armor Steel Plate, in all solicitations and contracts which-

225.7018 Restriction on four ton dolly jacks.

225.7018-1 Restriction.

In accordance with Section 9108 of Pub. L. 102-396, no fiscal year 1993 funds shall be used to procure four ton dolly jacks manufactured outside the United States.

225.7018-2 Waiver.

The restriction in 225.7018-1 may be waived on a case-by-case basis where the Secretary of the Military Department or the Under Secretary of Defense (Acquisition & Technology) certifies to the Committees on Appropriations of the House and Senate that-

225.7018-3 Contract clause.

Use the clause at 252.225-7033, Restriction on Acquisition of Four Ton Dolly Jacks, in solicitations and contracts that use fiscal year 1993 funds for the acquisition of four ton dolly jacks.

225.7019 Restrictions on ball and roller bearings.

225.7019-1 Restrictions.

225.7019-2 Exceptions.

225.7019-3 Waiver.

225.7019-4 Contract clause.

Use the clause at 252.225-7016, Restriction on Acquisition of Ball and Roller Bearings, in all solicitations and contracts, unless-

225.7020 Reserved.

225.7021 Restriction on aircraft fuel cells.

225.7021-1 Restriction.

In accordance with Section 8090 of the Fiscal Year 1994 Defense Appropriations Act (Pub. L. 103-139) and Section 8075 of the Fiscal Year 1995 Defense Appropriations Act (Pub. L. 103-335), do not purchase aircraft fuel cells unless they are produced or manufactured in the United States by a domestic-operated entity.

225.7021-2 Waiver.

The restriction in 225.7021-1 may be waived by the Secretary of the department responsible for the acquisition, on a case-by-case basis, by certifying to the House and Senate Committees on Appropriations that-

225.7021-3 Contract clause.

Unless a waiver has been granted in accordance with 225.7021-2, use the clause at 252.225-7038, Restriction on Acquisition of Aircraft Fuel Cells, in all solicitations and contracts which-

225.7022 Restrictions on totally enclosed lifeboat survival systems.

225.7022-1 Restrictions.

225.7022-2 Exceptions.

The restriction in 225.7022-1(b) does not apply if-

225.7022-3 Waiver.

The waiver criteria at 225.7005(a) apply only to the restriction of 225.7022-1(b).

225.7022-4 Contract clause.

Use the clause at 252.225-7039, Restriction on Acquisition of Totally Enclosed Lifeboat Survival Systems, in all solicitations and contracts which require delivery of totally enclosed lifeboat survival systems.

225.7023 Restriction on supercomputers.

225.7023-1 Restriction.

In accordance with Section 8112 of Pub. L. 100-202, and similar sections in subsequent Defense Appropriations Acts, do not purchase any supercomputer that is not manufactured in the United States.

225.7023-2 Waiver.

The restriction in 225.7023-1 may be waived by the Secretary of Defense on a case-by-case basis, after the Secretary of Defense certifies to the Armed Services and Appropriations Committees of Congress that-

225.7023-3 Contract clause.

Use the clause at 252.225-7011, Restriction on Acquisition of Supercomputers, in solicitations and contracts for the acquisition of supercomputers.

SUBPART 225.71--OTHER RESTRICTIONS ON FOREIGN ACQUISITION

225.7100 Scope of subpart.

This subpart contains foreign product restrictions which are based on policies designed to protect the defense industrial base.

225.7101 Definitions.

Relevant definitions are in the clause at 252.225-7025, Restriction on Acquisition of Forgings.

225.7102 Forgings.

225.7102-1 Policy.

DoD requirements for the following forging items, whether as end items or components, shall be acquired from domestic sources (as described in the clause at 252.225-7025) to the maximum extent practicable-

ITEMS

CATEGORIES

   

Ship propulsion shafts

Excludes service and landing craft shafts

Periscope tubes

All

Ring forgings for bull gears

All greater than 120 inches in diameter

225.7102-2 Exceptions.

The policy in 225.7102-1 does not apply to acquisitions-

225.7102-3 Waiver.

Upon request from a prime contractor, the contracting officer may waive the requirement for domestic manufacture of the items covered by the policy in 225.7102-1.

225.7102-4 Contract clause.

225.7103 Polyacrylonitrile (PAN) carbon fiber.

225.7103-1 Policy.

All new major systems must use U.S. or Canadian manufacturers or producers for all PAN carbon fiber requirements.

225.7103-2 Waivers.

Contracting officers may, with the approval of the chief of the contracting office, waive, in whole or in part, the requirement of the clause at 252.225-7022. For example, a waiver may be justified if a qualified U.S. or Canadian source cannot meet scheduling requirements.

225.7103-3 Contract clause.

Use the clause at 252.225-7022, Restriction on Acquisition of Polyacrylonitrile (PAN) Carbon Fiber, in all acquisitions for major systems (as defined in FAR Part 2) that are not yet in production (milestone III as defined in DoD 5000.2-R, Mandatory Procedures for Major Defense Acquisition Programs (MDAPS) and Major Automated Information System (MAIS) Acquisition Programs). Also use the clause in contracts for major systems if the clause was used in prior program contracts.

SUBPART 225.72--REPORTING CONTRACT PERFORMANCE OUTSIDE THE UNITED STATES

225.7200 Scope of subpart.

This subpart prescribes procedures for contractor reporting and DoD monitoring of the volume, type, and nature of contract performance outside the United States, to include subcontracts, purchases, and intracompany transfers. It implements 10 U.S.C. 2410g which requires advance notification of contract performance outside the United States and Canada when the contract could have been performed inside the United States or Canada.

225.7201 Exception.

This subpart does not apply to contracts for commercial items, construction, ores, natural gas, utilities, petroleum products and crudes, timber (logs), or subsistence.

225.7202 Distribution of reports.

The contracting officer shall forward a copy of reports submitted by successful offerors as required by the clause at 252.225-7026, Reporting of Contract Performance Outside the United States, to the Deputy Director of Defense Procurement (Foreign Contracting), OUSD(A&T)DP(FC), Washington, DC 20301-3060. This is necessary to satisfy the requirement of 10 U.S.C. 2410g that the notifications (or copies) be maintained in compiled form for five years after the date of submission.

225.7203 Contract clause.

Except for acquisitions in 225.7201, use the clause at 252.225-7026, Reporting of Contract Performance Outside the United States, in all solicitations and contracts with an estimated or actual value exceeding $500,000, including those modified to exceed $500,000.

SUBPART 225.73--ACQUISITIONS FOR FOREIGN MILITARY SALES

225.7300 Scope of subpart.

225.7301 General.

225.7302 Procedures.

On FMS programs that will require an acquisition, the contracting officer assists the departmental/agency activity responsible for preparing the LOA by-

225.7303 Pricing acquisitions for FMS.

Price FMS contracts using the same principles as are used in pricing other defense contracts. Application of the pricing principles in FAR Parts 15 and 31 to an FMS contract, however, may result in prices that differ from other defense contract prices for the same item due to the considerations in this section.

225.7303-1 Contractor sales to other foreign customers.

If the contractor has made sales of the item required for the foreign military sale to foreign customers under comparable conditions, including quantity and delivery, price the FMS contract in accordance with FAR Part 15.

225.7303-2 Cost of doing business with a foreign government or an international organization.

225.7303-3 Government-to-government agreements.

If a government-to-government agreement between the United States and a foreign government for the sale, coproduction, or cooperative logistic support of a specifically defined weapon system, major end item, or support item, contains language in conflict with the provisions of this section, the language of the government-to-government agreement prevails.

225.7303-4 Contingent fees.

225.7303-5 Acquisitions wholly paid for from nonrepayable funds.

225.7304 Source selection.

225.7305 Limitation of liability.

The contracting officer must advise the contractor whenever the foreign customer will assume the risk for loss or damage under the appropriate limitation of liability clause(s) (see FAR Subpart 46.8). Consider the costs of necessary insurance, if any, obtained by the contractor to cover the risk of loss or damage in establishing the FMS contract price.

225.7306 Exercise of options for FMS.

Consider changes to cost and profit attributable to pricing differences between U.S. and FMS requirements when exercising an option to satisfy an FMS requirement. Also consider such changes if the option is already identified for FMS, but it is exercised for country B requirements instead of the country A requirements for which it was priced.

225.7307 Offset arrangements.

In accordance with the Presidential policy statement of April 16, 1990, DoD does not encourage, enter into, or commit U.S. firms to FMS offset arrangements. The decision whether to engage in offsets, and the responsibility for negotiating and implementing offset arrangements, resides with the companies involved.

225.7308 Contract clauses.

SUBPART 225.74--ANTITERRORISM/FORCE PROTECTION POLICY FOR DEFENSE CONTRACTORS OUTSIDE THE UNITED STATES

225.7400 Scope of subpart.

This subpart pertains to antiterrorism/force protection policy for contracts that require performance or travel outside the United States.

225.7401 General.

Information and guidance pertaining to DoD antiterrorism/force protection can be obtained from the following offices:

225.7402 Contract clause.

Use the clause at 252.225-7043, Antiterrorism/Force Protection Policy for Defense Contractors Outside the United States, in solicitations and contracts that require performance or travel outside the United States, except for contracts with-

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