510 likes | 719 Vues
FAR Part 25. Purpose: Acquisition of foreign supplies, services, and construction materials Includes contracts performed outside the US Implements the Buy American Act, trade agreements, and other laws and regulations. 25.001 - General. The Buy American Act (BAA) :
E N D
FAR Part 25 Purpose: Acquisition of foreign supplies, services, and construction materials Includes contracts performed outside the US Implements the Buy American Act, trade agreements, and other laws and regulations
25.001 - General • The Buy American Act (BAA): • Restricts the purchase of foreign end products unless the CO determines the price of the lowest US offer is unreasonable. • Restricts purchase if the contract for US construction requires domestic construction materials only. • Some acquisitions (end products/ construction materials) from certain countries that are subject to certain trade agreements are not bound by the BAA and receive nondiscriminatory treatment. Dollar value typically determines which of the trade agreement applies. • Country of origin determination: Buy American Act vs. Trade Agreements vs. Report on End Products: • BAA: 2-part test to define a “domestic end product” or “domestic construction material.” 1. Article must be manufactured in the US. 2. Cost of domestic components must exceed 50% of the cost of all the components. This test has been waived for acquisitions of COTS times • Trade Agreements (TAs): “substantial transformation” test is used. Was an article transformed into a new and different article of commerce (use, name, and character)? • Reporting on end products: Where was the place of manufacture of an end product regardless of the origin of the components? • ARRA Funds: requires manuf. in the US but does not include a req’t as to the origin of the components. With construction materials, iron/steel must be produced in the US.
25.101 - General 25.003 Definitions 25.100 – Scope of Subpart • Please refer to this section of the FAR for details on definitions • The head of each Federal agency must submit a report to Congress on the amount of the acquisitions made by the agency from entities that manufacture end products outside the US in that fiscal year. • The criteria only covers whether the place of manufacture of an end product is in the US or outside the US regardless of the origin of the components. • “Micro-Purchases:” are Federal level sales under $3,000 that are purchased by the government using a credit card. These are typically products or services that need to be obtained quickly. 25.004 – Reporting of Acquisition of End Products Manufactured Outside the US • The BAA restricts the purchase of supplies that are not domestic end products and applies to small business set-asides. • Just because a manufactured product of a small business concern is a US made end product, does not mean it is a domestic end product unless it meets the component test described on slide 2, Part 25.001 (BAA). • The unreasonable cost exception is used as an evaluation factor and applied to low foreign offers that are not considered eligible offers. It is not used to provide a preference for one foreign offer over another.
25.103 - Exceptions • When can a CO acquire a foreign end product w/out regard to the BAA? • Public interest: when domestic preference is inconsistent with public interest. Ex. When an agency has an agreement with a foreign gov’t that provides a blanket exception to the Act. • Nonavailability: the act does not apply to articles, materials, or supplies if they are not mined, produced, or manufactured in the U.S. in sufficient and reasonably avail commercial quantities and of a satisfactory quality. See 25.104 for a list of nonavailable articles. • If a domestic source can only meet 50% or less of total U.S. Gov’t and non-gov’t demand, it will receive a nonavailablity determination. • The procuring agency must always conduct market research in accordance with the circumstances and seek domestic sources before the acquisition of an article can be made. • If an article is available domestically in sufficient and reasonable available commercial quantities of a satisfactory quality, the CO must: • Be sure to include the appropriate BAA provision and clause is included in the SOL. • State in the SOL that the article is available domestically and that offerors and contractors may not treat foreign components of the same class or kind as domestic components. • Submit supporting documentation to the appropriate council for possible removal of the article from the list.
25.103– Exceptions (Cont’d) • Individual Determinations: the head of the contracting activity may determine that an article, material, or supply is nonavailable. • If an article is considered nonavailable and may affect future acquisitions, the CO may submit a copy of the determination to the appropriate council identified for possible addition to the list in 25.104. • A written determination is not required if all of the following are present: • The acquisition was conducted through the use of full and open competition • The acquisition was synopsized in accordance with 5.201. • And no offer for a domestic end product was received. • Unreasonable cost: CO may determine the cost of a domestic end product is unreasonable in accordance with 25.105 and Subpart 25.5. • Resale: CO may purchase foreign end products specifically for commissary resale. • Information technology that is a commercial item: foreign restrictions do not apply to the acquisition of IT that is a commercial item when using FY 2004 or subsequent fiscal year funds. 25.104 – Nonavailable Articles • This section lists all of the nonavailable items discussed in section 25.103 above. Please see FARSite for details. • Published in the Federal Register for public comment no less frequently than once every 5 years. Unsolicited recommendations for deletions from this list may be submitted at any time and should provide sufficient data and rationale to permit evaluation.
25.2 – Buy American Act : Construction Materials 25.105 – Determining Reasonableness of Cost • The CO must use the evaluation factors (EF) below unless the head of the agency makes a written determination that the use of higher factors is more appropriate. If this determination applies to all agency acquisitions, the agency EF must be published in agency regulations. • The CO must not apply EFs to offers of eligible products if the acquisition is subject to a TA under Subpart 25.4. • 6%, if the lowest domestic offer is from a large business concern, or… • 12%, if lowest domestic offer is from a small business concern. CO must use this factor, or another factor established in agency regulations, in small business set-asides if the low offer is from a small business concern offering the product of a small business concern that is not a domestic end product. • Price of the domestic offer is reasonable if: it does not exceed the evaluated price of the low offer after addition of the appropriate evaluation factor in accordance with the 25.105 criteria. 25.105 – Cont’d • Evaluation Factors: • If there is a domestic offer that is not the low offer, and the restrictions of the BAA apply to the low offer, the CO must determine the reasonableness of the cost of the domestic offer by adding to the price of the low offer, inclusive of duty:
25.202– Exceptions 25.200 – Scope • When one of the following applies, the CO may allow the contractor to acquire foreign construction materials without regard to the restrictions of BAA: • Impracticable or inconsistent with public interest: Head of agency may determine that the restrictions of BAA to a particular construction material is impracticable or inconsistent with the public interest. Applies when an agency has an agreement with a foreign gov’t that provides a blanket exception to the BAA. • Nonavailablity: Head of contracting activity may determine a construction material is not mined, produced, or manuf. in the US in sufficient and reasonably available commercial quantities of a satisfactory quality. See nonavailablity articles in 25.104 and procedures in 25.103 even if those articles are acquired as construction materials. • Covers: • Buy American Act (BAA) • Executive Order 10582, December 17, 1954 • Waiver of the component test of the BAA for acquisitions of COTS items in accordance with 41 U.S.C. 431 • Applies to contracts for construction, alteration, or repair of any public building or public work in the U.S. • When using funds provided by ARRA of 2009 for construction see Subpart 25.6 • Except as provided in 25.202, use only domestic construction materials in construction contracts performed in the U.S. 25.201 – Policy
25.202– Exceptions (Cont’d) 25.203 – Preaward Determinations 3. Unreasonable cost: The CO concludes that the cost of domestic construction material is unreasonable in accordance with 25.204. 4. Information technology (IT) that is a commercial item: Restriction on purchasing foreign construction material does not apply to the acquisition of IT that is a commercial item, when using FY 2004 or subsequent FY funds. • Determination of findings: When a determination is made for any of the reasons stated in this section that certain foreign construction materials may be used, the CO must list the excepted materials in the contract. The agency must make the findings justifying the exception available for public inspection. • Acquisitions under trade agreements: For construction contracts with an estimated acquisition value of $7.777M or more, see 25.4. • For any acquisition, an offeror may request from the CO a determination concerning the inapplicability of the BAA for specifically identified construction materials. The time for submitting the request is specified in the SOL (52.225-10 or 52.225-12), whichever applies. Information and supporting data to be included with the request is in the SOL (52.225-9 or 52.225-11), which ever applies. • Before award: CO must evaluate all requests based on the info provided and may supplement this info with other readily available information. 25.204 – Evaluating Offers of Foreign Construction Material
25.205– Postaward Determinations • Offerors proposing to use foreign construction material other than that listed by the Gov’t in 52.225-9 or 52.225-11, or covered by the WTO GPA or a FTA, must provide the info required by the respective clauses. • Unless the head of the agency specifies a higher %, the CO must add to the offered price 6% of the cost of any foreign construction material (FCM) proposed for exception from the requirements of the BAA based on the unreasonable cost of domestic construction materials (DCM). Ties: The CO must give preference to an offer that does not include FCM excepted at the request of the offer on the basis of unreasonable cost. • Offerors may also submit alternate offers based on use of equivalent DCM to avoid possible rejection of the entire offer, if the Gov’t determines that an exception permitting use of a particular FCM does not apply. • If the CO awards a contract to an offeror that proposed FCM not listed in 52.225-9 or 52.225-11, the CO must add the excepted materials to the list in the contract clause. • If contractor requests a determination regarding the inapplicability of the BAA after award, the contractor must explain why this wasn’t done before award or why the need for determination otherwise was not reasonably foreseeable. If CO concludes that the contractor should have made request before award, the CO may deny request. • CO must base evaluation of request for determination on info required by 52.225-9 or 52.225-11, and/or other readily available info. • If determination under 25.202 is made after award that an exception to the BAA applies, the CO must negotiate adequate consideration and modify the contract to allow use of FCM. When basis for exception is unreasonable price of a DCM, adequate consideration is at least the differential established in 25.202 or in accordance with agency procedures.
25.206 – Noncompliance • The CO must: • Review allegations of BAA violations • Notify the contractor of the apparent unauthorized use of FCM and request a reply, to include proposed corrective action • If review reveals contractor/subcontractor has used FCM without authorization, take appropriate action: • Process a determination concerning the inapplicability of the BAA in accordance with 25.205 • Consider requiring the removal and replacement of the unauthorized FCM. • If removal and replacement of FCM already incorporated would be impracticable, cause due delay, or be detrimental to the interest of the Gov’t, the CO may determine in writing that the FCM need not be removed and replaced. A determination to retain FCM does not constitute a determination that an exception to the BAA applies, and this should be stated in the determination. It also does not affect the Gov’ts right to suspend or debar a contractor, subcontractor, or supplier for violation of the BAA, or to exercise other contractual rights or remedies (reducing the contract price or terminating the contract for default) • If noncompliance is sufficiently serious, consider exercising appropriate contractual remedies (terminating the contract for default and/or preparing and forwarding a report to the agency suspending or debarring official). If noncompliance seems fraudulent, refer matter to other appropriate agency officials (officer responsible for criminal investigation). 25.3 – Contracts Performed Outside the U.S. 25.301- Contractor Personnel in a Designated Operational Area or Supporting a Diplomatic or Consular Mission Outside the U.S.
25.301-1 – Scope • Establishment or maintenance of a safe and secure environment; • Provision of emergency infrastructure reconstruction, humanitarian relief, or essential gov’tal services. • This section does not apply to personal service contracts unless specified otherwise in agency procedures. • Applies to contracts requiring contractor personnel to perform outside the U.S. • In designated operational area during: • Contingency operations • Humanitarian or peacekeeping operations • Or, other military operations/exercises, when designated by the combatant commander • When supporting a diplomatic or consular mission: • That has been designated by the Dept of State as a danger pay post • Or, the CO determines is a post at which application of clause 52.225-19 is appropriate. • Any types of operations listed in the above operational areas may include stability operations such as: 25.301-2 – Gov’t Support • Contractors are responsible for providing their own logistical and security support as well as for employees. Agency will provide if appropriate agency official determines that: • Such Gov’t support is available and is needed to ensure continuation of essential contractor services, and • Contractor cannot obtain adequate support from other sources at a reasonable cost. • CO shall specify in contract and SOL , exact support provided and if support is provided on a reimbursable basis, and citing authority for reimbursement.
25.301-3 – Weapons 25.301-4– Contract Clause • CO shall follow agency procedures and the weapons policy established by the combatant commander or the chief of mission when authorizing contractor personnel to carry weapons – see clause 52.225-19 • That has been designated by Dept. of State as a danger pay post, or • One that the CO determines is a post as which application of the clause 52.225-19 is appropriate. 25.4 – Trade Agreements 25.400 - Scope • Policies and procedures applicable to acquisitions covered by: • WTO Government Procurement Agreement (WTO GPA) • Free Trade Agreements (FTAs) • Insert clause 52.225-19 in SOL’s and contracts, other than personal service contracts with individuals, that will require contractor personnel to perform outside the U.S. • In a designated operational area during: • Contingency operations • Humanitarian or peacekeeping operations • Or, other military operations/exercises, when designated by the combatant commander • When supporting a diplomatic or consular mission: • The least developed country designation made by the U.S. Trade Representative • The Caribbean Basin Trade Initiative (CBTI) (end products or construction material granted duty-free entry from countries designated as beneficiaries, must be treated as eligible products in acquisitions covered by the WTO GPA); • The Israeli Trade Act, or • The Agreement on Trade in Civil Aircraft
25.401 – Exceptions • Subpart does not apply to acquisitions: • set aside for small businesses; • of arms, ammunition, or war materials, or purchases indispensable for national security or for national defense purposes; • of end products for resale; • from Federal Prison Industries, Inc, and acquisitions under Subpart 8.7, acquisition from nonprofit agencies employing people who are blind or severely disabled; and • not using full and open competition when the limitation of competition would preclude use of the procedures of this subpart; or sole source acquisitions • Acquisitions of the following services are excluded from coverage by the U.S. schedule of the WTO GPA or an FTA as indicated in this table:
25.402 – General 25.403 – WTO GPA & FTAs • The Trade Agreements Act (TAA) provides the authority for the President to waive the BAA and other discriminatory provisions for eligible products from countries that have signed an international TA with the U.S. or that meet certain other criteria, such as being a least developed country. President delegated this waiver authority to the U.S. Trade Representative. In acquisitions covered by the WTO GPA, FTAs, or the Israeli Trade Act (ITA), the USTR has waived the BAA and other discriminatory provisions for eligible products. Offers of eligible products receive equal consideration with domestic offers. • The CO shall determine the origin of services by the country in which the firm providing the services is established. • The value of the acquisition is a determining factor in the applicability of the TAs. Most thresholds are subject to revision by U.S. Trade Rep. about every 2 years. See this section for the various dollar thresholds • Eligible products from WTO GPA and FTA countries are entitled to the nondiscriminatory treatment. They specify procurement procedures designed to ensure fairness • Thresholds: • To determine whether the acquisition of products by lease, rental, or lease-purchase contract is covered by the WTO GPA or an FTA, calculate the estimated acquisition value as follows: • If a fixed-term contract of 12 months or less is contemplated, use the total estimated value of the acquisition. • If a fixed-term contract of more than 12 months is contemplated, use the total estimated value of the acquisition plus the estimated residual value of the leased equipment at the conclusion of the contemplated term of the contract.
25.403 – WTO GPA & FTAs • If an indefinite-term contract is contemplated, use the estimated monthly payment multiplied by the total # of months that ordering would be possible under the proposed contract, i.e., the initial ordering period plus any optional ordering periods. • (iv) If there is any doubt as to the contemplated term of the contract, use the estimated monthly payment multiplied by 48. • The estimated value includes the value of all options. • If, in any 12-month period, recurring or multiple awards for the same type of product or products are anticipated, use the TEV of these projected awards to determine whether the WTO GPA or FTA applies. Do not divide any acquisition with the intent of reducing the EV of the acquisition below the dollar threshold of the WTO GPA or FTA. • Purchase restriction: • Under the TA Act, in acquisitions covered by the WTO GPA, acquire only US-made or designated country end products or US or designated country services, unless offers for such end products or services are either not received or are insufficient to fulfill the requirements. • Does not apply to purchases of supplies by DOD from a country with which it has entered into a reciprocal agreement, as provided in departmental regulations. 25.404 – Least Developed Countries • For acquisitions covered by the WTO GPA, least developed country end products, construction material, and services must be treated as eligible products.
25.405 – Caribbean Basin Trade Initiative (CBTI) 25.407 – Agreement on Trade in Civil Aircraft • Under the CBTI, the US TR has determined that, for acquisitions covered by the WTO GPA, CB country end products, construction material, and services must be treated as eligible products. When the CAFTA-DR agreement enters into force with respect to a country, that country is no longer designated as a beneficiary country for purposes of the CBERA, and is therefore no longer included in the definition of “CB country” for purposes of the CBTI. • Under the authority of Section 303 of the TAA, the U.S. TR has waived the BAA for civil aircraft and related articles that meet the substantial transformation test of the TAA, from countries that are parties to the Agreement on Trade in Civil Aircraft. See this section of the FAR for a list of those countries that are listed. 25.408 – Procedures If the WTO GPA or an FTA applies, the CO must: Comply with the req’s of 5.203and 5.207; Not include technical req’s in SOLs solely to preclude the acquisition of eligible products; Specify in SOLs that offerors must submit offers in English and in U.S. dollars. Submission of Offers in English, andSubmission of Offers in U.S. Currency, Instruction to Offerors--Competitive Acquisitions; and Provide unsuccessful offerors from WTO GPA or FTA countries notice 25.406 – Israeli Trade Act (ITA) • Acquisitions of supplies by most agencies are covered by the ITA, if the estimated value of the acquisition is $50K or more but does not exceed the WTO GPA threshold for supplies. Agencies other than DOD, DOE, DOT, the BRDI, the FHFB, and the OTS must evaluate offers of Israeli end products without regard to the restrictions of the BAA. The ITA does not prohibit the purchase of other foreign end products.
25.5 – Evaluating Foreign Offers – Supply Contracts 25.501 – General • The CO: • Must apply the evaluation procedures of this subpart to each line item of an offer unless either the offer or the SOL specifies evaluation on a group basis • May rely on the offeror's certification of end product origin when evaluating a foreign offer; • Must identify and reject offers of end products that are prohibited • Must not use the BAA evaluation factors prescribed in this subpart to provide a preference for one foreign offer over another foreign offer. • Unless otherwise specified in agency regulations, perform the following steps in order: • Eliminate all offers or offerors that are unacceptable for reasons other than price (nonresponsive, debarred or suspended), or a prohibited source • Rank the remaining offers by price. • If the SOL specifies award on the basis of factors in addition to cost/price, apply evaluation factors as specified in this section and use evaluated cost/price in determining the offer that represents the best value to the Gov’t. • For acquisitions covered by the WTO GPA: • Consider only offers of U.S.-made or designated country end products, unless no offers of such end products were received; • If agency gives the same consideration given eligible offers to offers of U.S.-made end products that are not domestic end products, award on the low offer. Otherwise, evaluate in accordance with agency procedures; and • If there were no offers of U.S.-made or designated country end products, make a nonavailability determination and award on the low offer. 25.502 – Application
25.502 – Application (Cont’d) • For acquisitions not covered by the WTO GPA, but subject to the BAA (an FTA or the ITA also may apply), the following applies: • If the low offer is a domestic offer or an eligible offer under an FTA or the ITA, award on that offer. • If the low offer is a noneligible offer and there were no domestic offers, award on the low offer. • If the low offer is a noneligible offer and there is an eligible offer that is lower than the lowest domestic offer, award on the low offer. The BAA provides an evaluation preference only for domestic offers. • Otherwise, apply the appropriate evaluation factor provided in 25.105 to the low offer. • If the evaluated price of the low offer remains less than the lowest domestic offer, award on the low offer. • If the price of the lowest domestic offer is less than the evaluated price of the low offer, award on the lowest domestic offer. • Ties: • If application of an evaluation factor results in a tie between a domestic offer and a foreign offer, award on the domestic offer. • If no evaluation preference was applied, resolve ties between domestic and foreign offers by a witnessed drawing of lots by an impartial individual. • Resolve ties between foreign offers from small business concerns or foreign offers from a small business concern and a large business concern in accordance with 14.408-6 25.503 – Group Offers
If the SOL or an offer specifies that award can be made only on a group of line items or on all line items contained in the SOL or offer, reject the offer: • If any part of the award would consist of prohibited end products or • If the acquisition is covered by the WTO GPA and any part of the offer consists of items restricted in accordance with 25.403. • If an offer restricts award to a group of line items or to all line items contained in the offer, determine for each line item whether to apply an evaluation factor. • First, evaluate offers that do not specify an award restriction on a line item, determining a tentative award pattern by selecting for each line item the offer with the lowest evaluated price. • Evaluate an offer that specifies an award restriction against the offered prices of the tentative award pattern, applying the appropriate evaluation factor on a line item basis. • Compute the total evaluated price for the tentative award pattern and the offer that specified an award restriction. 4. Unless the total evaluated price of the offer that specified an award restriction is less than the total evaluated price of the tentative award pattern, award based on the tentative award pattern. • If the SOL specifies that award will be made only on a group of line items or all line items contained in the SOL, determine the category of end products on the basis of each line item, but determine whether to apply an evaluation factor on the basis of the group of items. • If the proposed price of domestic end products exceeds 50% of total proposed price of the group, evaluate entire group as a domestic offer. Evaluate all other groups as foreign offers. • For foreign offers, if the proposed price of domestic end products and eligible products exceeds50% of the total proposed price of the group, evaluate the entire group as an eligible offer. • Apply the evaluation factor to the entire group.
25.504 – Evaluation Examples • Analysis: This acquisition is for end products for use in the U.S. and is set aside for small business concerns. The BAA applies. Since the acquisition value is less than $25K and the acquisition is set aside, none of the TAs apply. Perform the steps in 25.502. Offer C is evaluated as a foreign end product because it is the product of a small business, but is not a domestic end product (see 25.502). Since Offer B is a domestic offer, apply the 12% factor to Offer C (see 25.105). The resulting evaluated price of $11,200 remains lower than Offer B. The cost of Offer B is therefore unreasonable (see 25.105). Award on Offer C at $10,000 (see 25.502). • The following examples illustrate the application of the evaluation procedures. Examples assume that the CO has eliminated all offers that are unacceptable for reasons other than price or a TA. The evaluation factor may change as provided in agency regulations. 25.504-1 – BAA
Analysis: This acquisition is for end products for use outside the U.S. and is set aside for small business concerns. The BAA applies. Perform the steps in 25.502. Offer C is evaluated as a foreign end product because it is the product of a small business, but is not a domestic end product (see 25.502). After applying the 12% factor, the evaluated price of Offer C is $11,424. Award on Offer B at $10,700 (see 25.502). • Analysis:Eliminate Offer D because the acquisition is covered by the WTP GPA and there is an offer of a U.S.-made or an eligible product (see 25.502). If the agency gives the same consideration given eligible offers to offers of U.S.-made end products that are not domestic offers, it is unnecessary to determine if U.S.-made end products are domestic (large/small business). No further analysis is necessary. Award on the low remaining offer, Offer C (see 25.502). 25.504-2 – WTO GPA/ CBTI/FTAs 25.504-3 – FTA/ITA
Analysis: Since the low offer is an eligible offer, award on the low offer (see 25.502). • Analysis: Since the acquisition is not covered by the WTO GPA, the CO can consider the noneligible offer. Because the eligible offer (Offer B) is lower than the domestic offer (Offer A), no evaluation factor applies to the low offer (Offer C). Award on the low offer (see 25.502). • Analysis: Since the acquisition is not covered by the WTO GPA, the CO can consider the noneligible offer. Since no domestic offer was received, make a nonavailability determination and award on Offer B (see 25.502). 25.504-4 – Group Award Basis Key: DO = Domestic end product EL = Eligible product NEL = Noneligible product
Problem:Offeror C specifies all-or-none award. Assume all offerors are large businesses. The acquisition is not covered by the WTO GPA. • Analysis: (see 25.503) • STEP 1: Evaluate Offers A & B before considering Offer C and determine which offer has the lowest evaluated cost for each line item: • Item 1: Low offer A is domestic; select A. • Item 2:Low offer B is eligible; do not apply factor; select B. • Item 3: Low offer A is noneligible and Offer B is a domestic offer. Apply a 6% factor to Offer A. The evaluated price of Offer A is higher than Offer B; select B. • Item 4: Low offer A is noneligible. Since neither offer is a domestic offer, no evaluation factor applies; select A. • Item 5: Low offer B is noneligible; apply a 6% factor to Offer B. Offer A is still higher than Offer B; select B. • STEP 2: Evaluate Offer C against the tentative award pattern for Offers A and B:
* Offer + 6 % • On a line item basis, apply a factor to any noneligible offer if the other offer for that line item is domestic. • For Item 1, apply a factor to Offer C because Offer A is domestic and the acquisition was not covered by the WTO GPA. The evaluated price of Offer C, Item 1, becomes $53K ($50K plus 6%). Apply a factor to Offer B, Item 5, because it is a noneligible product and Offer C is domestic. The evaluated price of Offer B is $10,600 ($10K plus 6%). Evaluate the remaining items without applying a factor. • STEP 3: The tentative unrestricted award pattern from Offers A and B is lower than the evaluated price of Offer C. Award the combination of Offers A and B. Note that if Offer C had not specified all-or-none award, award would be made on Offer C for line items 1, 3, and 4, totaling an award of $82K.
STEP 1: Determine which of the offers are domestic (see 25.503): • Problem: The SOL specifies award on a group basis. Assume the BAA applies and the acquisition cannot be set aside for small business concerns. All offerors are large businesses. • Analysis: (see 25.503) • STEP 2: Determine whether foreign offers are eligible or noneligible offers (see 25.503):
25.6 – ARRA – BAA – Construction Materials 25.600 – Scope • STEP 3: Determine whether to apply an evaluation factor (see 25.503). The low offer (Offer C) is a foreign offer. There is no eligible offer lower than the domestic offer. Therefore, apply the factor to the low offer. Addition of the 6% factor (use 12% if Offer A is a small business) to Offer C yields an evaluated price of $96,248 ($90,800 + 6%). Award on Offer A (see 25.502). Note that, if Offer A were greater than Offer B, an evaluation factor would not be applied and award would be on Offer C (see 25.502). • This subpart implements section 1605 in Division A of the ARRA with regard to manuf. construction material and the BAA with regard to unmanuf. construction material. It applies to construction projects that use funds appropriated or otherwise provided by the RA. • See this section of the FAR for details 25.601 – Definitions
25.602 – Policy • Iron/steel components of construction material consisting wholly or predominantly of iron/steel must be produced in the US. This does not restrict the origin of the elements of the iron/steel, but requires that all manufacturing processes of the iron/steel must take place in the US, except metallurgical processes involving refinement of steel additives. • The requirement in paragraph (1) above does not apply to iron/steel components or subcomponents in construction material that does not consist wholly or predominantly of iron/steel. • All other components. There is no restriction on the origin or place of production or manuf. of components or subcomponents that do not consist of iron/ steel. • Examples:Please read this section of the FAR for examples • Except as provided in 25.603: • None of the funds appropriated or otherwise made available by the RA may be used for a project for the construction, alteration, maintenance, or repair of a public building or public work unless the public building or public work is located in the US and: • All of the iron, steel, and other manuf. goods used as construction material in the project are produced or manuf. in the US. • All manufactured construction material must be manufactured in the US. • Iron /steel components. 25.602-1 – Section 1605 of the RA
25.602-1 – Section 1605 of the Recovery Act (Cont’d) 25.603 – Exceptions When one of the following exceptions applies, the CO may allow the contractor to incorporate foreign manuf. construction materials without regard to the restrictions of section 1605 of the RA or foreign unmanuf. construction material without regard to the restrictions of the BAA: Nonavailability. The head of the contracting activity may determine that a particular construction material is not mined, produced, or manufactured in the US in sufficient and reasonably available commercial quantities of a satisfactory quality. The determinations of nonavailability of the and the procedures also apply if any of those articles are acquired as construction materials. Unreasonable cost. The CO concludes that the cost of DCM is unreasonable in accordance with 25.605. • If TAs apply, the manufactured construction material (MCM) shall either comply with this subsection, or be wholly the product of or be substantially transformed in a RA designated country; • Manuf. materials purchased directly by the Gov’t and delivered to the site for incorporation into the project shall meet the same domestic source requirements as specified for MCM of this section; and • A project may include several contracts, a single contract, or one or more line items on a contract. 25.602-2 – BAA • Except as provided in 25.603, use only unmanufacf. construction material mined or produced in the US, as required by the BAA or, if TAs apply, unmanuf. construction material mined or produced in a designated country may also be used.
25.603 – Exceptions (Cont’d) • For determination with regard to the inapplicability of section 1605 of the RA, unless the construction material has already been determined to be domestically nonavailable (see list at 25.104), the head of the agency shall provide notice to the FR within 3 business days after the determination is made, with a copy to the Administrator for FPP and to the Recovery Accountability and Transparency Board. The notice shall include: • The title “Buy American Exception under ARRA of 2009”; • Dollar value and brief description of the project; and • A detailed justification as to why the restriction is being waived. • Inconsistent with public interest. The head of the agency may determine that application of the restrictions of section 1605 of the RA to a particular manufactured construction material, or the restrictions of the BAA to a particular unmanufactured construction material would be inconsistent with the public interest. • Determinations. When a determination is made, for any of the reasons stated in this section, that certain foreign construction materials may be used: • The CO shall list the excepted materials in the contract; and
25.604 – Preaward Determination Concerning the Inapplicability of Section 1605 of the RA or the BAA 25.603 – Exceptions (Cont’d) 3. Acquisitions under trade agreements: • For construction contracts with an estimated acquisition value of $7.777M or more. Offers proposing the use of construction material from a designated country shall receive equal consideration with offers proposing the use of DCMl. • For purposes of applying section 1605 of the RA to evaluation of MCM, designated countries do not include the Caribbean Basin Countries. • For any acquisition, an offeror may request from the CO a determination concerning the inapplicability of section 1605 of the RA or the BAA for specifically identified construction materials. The time for submitting the request is specified in the SOL of either 52.225-22 or 52.225-24, whichever applies. The info and supporting data that must be included in the request are also specified in the SOL of either 52.225-21 or 52.225-23, whichever applies. • Before award, the CO must evaluate all requests based on the information provided and may supplement this info with other readily available info. • Determination based on unreasonable cost of domestic construction material.
25.605 – Evaluating Offers of Foreign Construction Materials • If the CO has determined that an exception applies because the cost of certain DCM is unreasonable, in accordance with section25.604, then the CO shall apply evaluation factors to the offer incorporating the use of such FCM as follows: • Use an evaluation factor of 25%, applied to the total offered price of the contract, if foreign MCM is incorporated in the offer based on an exception for unreasonable cost of comparable DCM requested by the offeror. • In addition, use an evaluation factor of 6% applied to the cost of foreign unmanuf. construction material incorporated in the offer based on an exception for unreasonable cost of comparable domestic unmanuf. construction material requested by the offeror. • Total evaluated price = offered price + (.25 x offered price, if (a)(1) applies) + (.06 x cost of foreign unmanuf. construction material). • MCM. The CO must compare the offered price of the contract using foreign MCM (i.e., any construction, construction material consisting predominantly of iron/steel that is not produced in the US) to the estimated price if all domestic MCM were used. If use of domestic MCM would increase the overall offered price of the contract by more than 25%, then the CO shall determine that the cost of the domestic MCM is unreasonable. • Unmanuf. construction material. The CO must compare the cost of each foreign unmanuf. construction material to the cost of domestic unmanuf. construction material. If the cost of the domestic unmanuf. construction material exceeds the cost of the foreign unmanuf. construction material by more than 6%, then the CO shall determine that the cost of the domestic unmanuf. construction material is unreasonable.
If the SOL specifies award on the basis of factors in addition to cost or price, apply the evaluation factors of this section and use the evaluated price in determining the offer that represents the best value to the Gov’t. • Unless the paragraph above applies, if 2 or more offers are equal in price, the CO must give preference to an offer that does not include FCM excepted at the request of the offeror on the basis of unreasonable cost. • Offerors also may submit alternate offers based on use of equivalent DCM to avoid possible rejection of the entire offer if the Gov’t determines that an exception permitting use of a particular FCM does not apply. • If the CO awards a contract to an offeror that proposed FCMnot listed in the applicable clause in the SOL, the CO must add the excepted materials to the list in the contract clause. • If a contractor requests a determination regarding the inapplicability of section 1605 of the RA or the BAA after contract award, the contractor must explain why it could not request the determination before contract award or why the need for such determination otherwise was not reasonably foreseeable. If the CO concludes that the contractor should have made the request before contract award, the CO may deny the request. • The CO must base evaluation of any request for a determination regarding the inapplicability of section 1605 of the RA or the BAA made after contract award on information required and/or other readily available information. • If a determination is made after contract award that an exception to section 1605 of the RA or to the BAA applies, the CO must negotiate adequate consideration and modify the contract to allow use of the FCM. When the basis for the exception is the unreasonable cost of a DCM, adequate consideration is at least the differential established in 25.605. 25.606 – Postaward Determinations
25.607 – Noncompliance • If removal and replacement of FCM incorporated in a building or work would be impracticable, cause undue delay, or otherwise be detrimental to the interests of the Gov’t, the CO may determine in writing that the FCM need not be removed and replaced. A determination to retain FCM does not constitute a determination that an exception to section 1605 of the RA or the BAA applies, and this should be stated in the determination. Further, a determination to retain FCM does not affect the Govt's right to suspend or debar a contractor, subcontractor, or supplier for violation of section 1605 of the RA or the BAA, or to exercise other contractual rights and remedies, such as reducing the contract price or terminating the contract for default. • If the noncompliance is sufficiently serious, consider exercising appropriate contractual remedies, such as terminating the contract for default. Also consider preparing and forwarding a report to the agency suspending or debarring official. If the noncompliance appears to be fraudulent, refer the matter to other appropriate agency officials, such as the agency’s inspector general or the officer responsible for criminal investigation. • The CO must: • Review allegations of violations of section 1605 of the RA or BAA; • Unless fraud is suspected, notify the contractor of the apparent unauthorized use of FCM and request a reply, to include proposed corrective action; and • If the review reveals that a contractor or subcontractor has used FCM without authorization, take appropriate action, including 1 or more of the following: • Process a determination concerning the inapplicability of section 1605 of the RA or the BAA in accordance with 25.606. • Consider requiring the removal and replacement of the unauthorized foreign construction material.
25.7 – Prohibited Sources 25.701 – Restrictions Administered by the Dept of Treasury on Acquisitions of Supplies or Services from Prohibited Sources 25.700 – Scope • This subpart implements: • Economic sanctions administered by OFAC in the Department of the Treasury prohibiting transactions involving certain countries, entities, and individuals; and • The Sudan Accountability and Divestment Act of 2007 (Pub. L. 110-174). • The Iran Sanctions Act of 1996 including amendments by the Iran Freedom Support Act and section 102 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 • Section 106 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 . • Except as authorized by OFAC, agencies and their contractors and subcontractors must not acquire any supplies or services if any proclamation, Executive order, or statute administered by OFAC, or if OFAC’s implementing regulations at 31 CFR chapter V, would prohibit such a transaction by a person subject to the jurisdiction of the US. • Except as authorized by OFAC, most transactions involving Cuba, Iran, and Sudan are prohibited, as are most imports from Burma or North Korea into the US or its outlying areas. In addition, lists of entities and individuals, subject to economic sanctions are included in OFAC’s List of Specially Designated Nationals and Blocked Persons. OFAC’s regulations at 31 CFR chapter V provides more information.
25.702 – Prohibition on Contracting with Entities that Conduct Restricted Business Operations in Sudan • “Marginalized populations of Sudan” means: • Adversely affected groups in regions authorized to receive assistance under section 8(c) of the Darfur Peace and Accountability Act (Pub. L. 109-344) (50 U.S.C. 1707 note); and • Marginalized areas in Northern Sudan described in section 4(9) of such Act. • “Restricted business operations” means: • Business operations in Sudan that include power production activities, mineral extraction activities, oil-related activities, or the production of military equipment, as those terms are defined in the Sudan Accountability and Divestment Act of 2007. • Does not include business operations that the conducting the business can demonstrate: • As used in this section: • “Appropriate Congressional committees” means: • The Committee on Banking, Housing, and Urban Affairs, The Committee on Foreign Relations, and the Select Committee on Intelligence of the Senate; and • The Committee on Financial Services, the Committee on Foreign Relations, and the Permanent Select Committee on Intelligence of the House of Representatives. • “Business operations” means engaging in commerce in any form, including by acquiring, developing, maintaining, owning, selling, possessing, leasing, or operating equipment, facilities, personnel, products, services, personal property, real property, or any other apparatus of business or commerce.
25.702 – Prohibition on Contracting with Entities that Conduct Restricted Business Operations in Sudan (Cont’d) 25.702-2 – Certification • Are conducted under contract directly and exclusively with the regional government of southern Sudan; • Are conducted pursuant to specific authorization from the OFAC in the Department of the Treasury, or are expressly exempted under Federal law from the requirement to be conducted under such authorization; • Consist of providing goods or services to marginalized populations of Sudan; • Consist of providing goods or services to an internationally recognized peacekeeping force or humanitarian organization; • Consist of providing goods or services that are used only to promote health or education; or • Have been voluntarily suspended. • As required by the Sudan Accountability and Divestment Act of 2007, each offeror must certify that it does not conduct restricted business operations in Sudan. 25.702-3 – Remedies Upon the determination of a false certification under subsection 25.702-2: The CO may terminate the contract; The suspending official may suspend the contractor in accordance with the procedures in Subpart 9.4; and The debarring official may debar the contractor for a period not to exceed 3 years in accordance with the procedures in Subpart 9.4.
25.702-4 – Waiver • A class waiver may be requested only when the class of supplies is not available from any other source and it is in the national interest. • Prior to submitting the waiver request, the request must be reviewed and cleared by the agency head. • All waiver requests must include the following information included in this section • The consultation and information in 25.702-4 will be considered in determining whether to recommend that the President waive the requirement of subsection 25.702-2. In accordance with the Sudan Accountability and Divestment Act of 2007, OFPP will semiannually submit a report to Congress, on April 15th and October 15th, on the waivers granted. • The President may waive the requirement of subsection 25.702-2 on a case-by-case basis if the President determines and certifies in writing to the appropriate congressional committees that it is in the national interest to do so. • An agency seeking waiver of the requirement shall submit the request to the Administrator of the Office of Federal Procurement Policy (OFPP), allowing sufficient time for review and approval. Upon receipt of the waiver request, OFPP shall consult with the President's National Security Council, Office of African Affairs, and the Department of State Sudan Office and Sanctions Office to assess foreign policy aspects of making a national interest recommendation. • Agencies may request a waiver on an individual or class basis; however, waivers are not indefinite and can be cancelled if warranted.
25.703 – Prohibition on Contracting with Entities that Engage in Certain Activities Relating to Iran 25.703-1 – Definitions • Please read this section on your own for details • Knowingly making an investment of $20 M or more, or a combination of investments of $5 M or more that equal or exceed $20 M in a 12-month period, that directly and significantly contribute to the enhancement of Iran's ability to develop petroleum resources. • Knowingly selling/leasing/providing to Iran goods/services/tech/info/support with a FMV of $1 M or more, or during a 12-mo period with an aggregate FMV of $5 M or more, that could directly and significantly facilitate the maintenance or expansion of Iran's domestic production of refined petroleum products, including any direct and significant assistance with respect to the construction, modernization, or repair of petrol. refineries. • Knowingly selling/providing to Iran refined petrol. products with a FMV of $1 M or more, or during a 12-mo period with an aggregate FMV of $5 M or more. • Knowingly selling/leasing/providing to Iran goods/services/tech/info/support with a FMV of $1 M or more, or during a 12-mo period with an aggregate FMV of $5 M or more, that could directly and significantly contribute to the enhancement of Iran's ability to import refined petrol. products, including: 25.703-2 – Iran Sanctions Act (ISA) • Certification: • As required by the ISA, unless an exception applies in accordance with this section, or a waiver is granted in accordance with 25.703-4, each offeror must certify that they, and any person owned or controlled by the offeror, does not engage in any activity for which sanctions may be imposed under section 5 of the ISA. • The following activities, which are described in detail in section 5 of the ISA, are activities for which sanctions may be imposed on or after July 1, 2010:
c) Exception for Tas:The certification requirements of this subsection do not apply with respect to the procurement of eligible products, as defined in the TAA of 1974, of any foreign country. 25.703-2 – Iran Sanctions Act (ISA) (Cont’d) • Certain insurance or reinsurance, underwriting, financing, or brokering for the sale, lease, or provision of such items, or • Providing ships or shipping services to deliver refined petroleum products to Iran. e) Exporting, transferring, or otherwise providing to Iran any goods/services/tech or other items knowing that it would contribute materially to the ability of Iran to acquire or develop chemical/biological/nuclear weapons or related technologies, or acquire or develop destabilizing #’s and types of advanced conventional weapons. • Remedies:Upon the determination of a false certification under this subsection, the agency shall take 1 or more of the following actions: • The CO may terminate contract • The suspending official may suspend the contractor • The debarring official may debar the contractor for a period not to exceed 3 years • The head of an Executive agency may not enter into or extend a contract for the procurement of goods or services with a person that exports certain sensitive tech to Iran, as determined by the President and listed on the Excluded Parties List System • Each offeror must represent that it does not export any sensitive tech to the gov’t of Iran or any entities/individuals owned or controlled by/acting on behalf /or at the direction of, the gov’t of Iran. • Exception for Tas: The reps requirement of this subsection does not apply with respect to the procurement of eligible products, as defined in the TAA of 1974, of any foreign country (see subpart 25.4). 25.703-3 – Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, Section 106
25.8 – Other International Agreements and Coordination 25.703-4 – Waiver 25.801 – General • An agency or contractor seeking a waiver of these requirements, consistent with the ISA or the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, and the Presidential Memorandum of September 23, 2010, shall submit the request to the OFPP, allowing sufficient time for review and approval. • Agencies may request a waiver on an individual or class basis; however, waivers are not indefinite and can be cancelled, if warranted. • A class waiver may be requested only when the class of supplies/equipment is not available from any other source and it is in the national interest. • Prior to submitting waiver, the request must be reviewed and cleared by the agency head. c) In general, all waiver requests should include the information described in this section of the FAR, please see this section for details • Treaties/agreements between the US and foreign gov’ts affect the evaluation of offers from foreign entities and the performance of contracts in foreign countries. 25.802 – Procedures • When placing contracts with contractors locatedoutside the US, for performance outside the US, CO’s must: • Determine existence and applicability of any international agreements and ensure compliance with these agreements; and • Conduct the necessary advance acquisition planning and coordination between the appropriate U.S. executive agencies and foreign interests as required by these agreements.
25.802 – Procedures (Cont’d) • COs must award all contracts with Taiwanese firms or organizations through the American Institute of Taiwan (AIT). AIT is under contract to the Department of State. • U.S. laws impose duties on foreign supplies imported into the customs territory of the US. Certain exemptions from these duties are available to Gov’t agencies. Agencies must use these exemptions when the anticipated savings to appropriated funds will outweigh the admin costs associated with processing required documentation. 25.9 – Customs and Duties 25.902 – Procedures 25.900 – Scope • For regulations governing importations and duties, see the Customs Regulations issued by the U.S. Customs Service, Department of the Treasury. Except as provided elsewhere in the Customs Regulations, all shipments of imported supplies purchased under Gov’t contracts are subject to the usual Customs entry and examination requirements. Unless the agency obtains an exemption (see 25.903, those shipments are also subject to duty. • Covers policies/procedures for exempting from import duties certain supplies purchased under Gov’t contracts. 25.901 – Policy
25.903 – Exempted Supplies 25.1001 – Waiver of Right to Examination of Records • The Harmonized Tariff Schedule of the U.S. list supplies for which exemptions from duty may be obtained when imported into the customs territory of the US under a Gov’t contract. For certain of these supplies, the contracting agency must certify to the Commissioner of Customs that they are for the purpose stated in the Harmonized Tariff Schedule . • Supplies(excluding equipment) for Gov’t-operated vessels or aircraft may be withdrawn from any customs-bonded warehouse, from continuous customs custody elsewhere than in a bonded warehouse, or from a foreign-trade zone, free of duty and internal revenue tax . The contracting activity must cite this authority on the appropriate customs form when making purchases. • Policy. The clause at 52.215-2, 15.209, 52.212-5, 12.301, implement 10 U.S.C. 2313 and 41 U.S.C. 254d. The basic clauses authorize examination of records by the Comptroller General. • Insert the appropriate basic clause, whenever possible, in negotiated contracts with foreign contractors. • The CO may use 52.215-2 with its Alternate III or 52.212-5 with its Alternate I after: • Exhausting all reasonable efforts to include the basic clause; • Considering factors such as alternate sources of supply, additional cost, and time of delivery; and • Head of the agency has executed a D&F in accordance with this section, with the concurrence of the Comptroller General. However, concurrence of the Comptroller General is not required if the contractor is a foreign gov’t or agency thereof or is precluded by the laws of the country involved from making its records available for examination. 25.10 – Additional Foreign Acquisition Regulations
25.1001 – Waiver of Right to Examination of Records (Cont’d) • The determination and findings must: • Identify the contract and its purpose, and identify if the contract is with a foreign contractor or with a foreign gov’t or an agency of a foreign gov’t; • Describe efforts to include the basic clause; • State reasons for the contractor's refusal to include the basic clause; • Describe price and availability of the supplies/services from the US and other sources; and • Determine that it will best serve the interest of the US to use the appropriate alternate clause in this section. • Unless an IA or the WTO GPA (see 25.408) requires a specific currency, COs must determine whether SOLs for contracts to be entered into/performed outside the US will require submission of offers in U.S. currency or foreign currency. In unusual circumstances, the CO may permit submission of offers in other than a specified currency. • To ensure fair evaluation of offers, SOLs should require all offers be priced in the same currency. However, if SOL permits submission of offers in other than a specified currency, the CO must convert offered prices to U.S. currency for evaluation purposes. The CO must use current market exchange rate from a commonly used source in effect as follows: • Acquisitions conducted using sealed bidding procedures, on the date of bid opening. • Acquisitions conducted using negotiation procedures: • On date specified for receipt of offers, if award is based on initial offers; otherwise • On date specified for receipt of final proposal revisions. • If a contract is priced in foreign currency, agency must ensure adequate funds are avail to cover currency fluctuations to avoid a violation of the Anti-Deficiency Act . 25.1002 – Use of Foreign Currency
25.11 – Solicitation Provisions and Contract Clauses 25.1101 – Acquisition of Supplies • The following provisions and clauses apply to the acquisition of supplies and acquisition of services involving the furnishing of supplies: • Insert clause at 52.225-1, BAA-Supplies, in SOLs/contracts with a value exceeding the micro-purchase threshold but not exceeding $25K; and in SOLs/contracts with a value exceeding $25K, if none of the clauses prescribed in paragraphs (b) and (c) of this section apply, except if: • The SOL is restricted to domestic end products; • The acquisition is for supplies for use within US and an exception to the BAA applies (e.g., nonavailability, public interest, or IT that is a commercial item); or • Acquisition is for supplies for use outside US. • Insert provision at 52.225-2, BAA Certificate, in SOLs containing the clause at 52.225-1. • 1. Insert clause at 52.225-3, BAA--FTAs-Israeli Trade Act, in SOLs and contracts if : • Acquisition is for supplies/services involving the furnishing of supplies, for use within the US, and the acquisition value is $25K or more, but is less than $202K; • Acquisition is not for IT that is a commercial item, using FY 2004 or subsequent FY funds; and • No exception in 25.401 applies. For acquisitions of agencies not subject to the Israeli Trade Act (see 25.406), see agency regulations. • If the acquisition value is $25K or more but is less than $50K, use the clause with its Alternate I. • If the acquisition value is $50K or more but is less than $77,494, use the clause with its Alternate II. • If the acquisition value is $77,494 or more but is less than $100K, use the clause with its Alternate III.
25.1101 – Acquisition of Supplies (Cont’d) • Insert provision at 52.225-7, Waiver of BAA for Civil Aircraft and Related Articles, in SOLs for civil aircraft and related articles (see 25.407), if acquisition value is less than $202K. • Insert clause at 52.225-8, Duty-Free Entry, in SOLs and contracts for supplies that may be imported into the US and for which duty-free entry may be obtained in accordance with 25.903, if the value of the acquisition: • Exceeds simplified acquisition threshold; • Does not exceed simplified acquisition threshold, but savings from waiving the duty is anticipated to be more than admin cost of waiving the duty. When used for acquisitions that do not exceed the simplified acquisition threshold, the CO may modify paragraphs (c)(1) and (j)(2) of the clause to reduce the dollar figure. • Insert provision at 52.225-18, in SOLs that are predominantly for the acquisition of manufend products, as defined in provision 52.225-18 (i.e.,estimated value of manufactured end products exceeds estimated value of other items to be acquired as a result of the SOL). • 2. Insert provision at 52.225-4, BAA –FTA -Israeli Trade Act Certificate, in SOLs containing the clause at 52.225-3. • If acquisition value is $25K or more but is less than $50K, use provision with its Alternate I. • If acquisition value is $50K or more but less than $77,494, use provision with its Alternate II. • If acquisition value is $77,494 or more, but is less than $100K, use provision with its Alternate III. • 1. Insert clause at 52.225-5, TAs, in SOLs and contracts valued at $202Kor more, if acquisition is covered by the WTO GPA and the agency has determined that the restrictions of the BAA are not applicable to U.S.-made end products If the agency has not made such a determination, the CO must follow agency procedures. 2. Insert provision at 52.225-6, TAs Certificate, in SOLs containing the clause at 52.225-5.
25.1102 – Acquisition of Construction • Insert clause 52.225-11, BAA--Construction Materials under TAs, in SOLs/contracts for construction that is performed in US valued at $7.777M +. • List in para(b)(3) of the clause all FCM excepted from requirements of the BAA, other than designated country construction material. • If head of agency determines that a higher % is appropriate, substitute the higher evaluation % in paragraph (b)(4)(i) of the clause. • For acquisitions valued at $7.777M +, but less than $10,074,262, use clause with its Alternate I. List in para(b)(3) of the clause all FCM excepted from the req’tsof the BAA, unless the excepted FCMis from a designated country other than Bahrain, Mexico, and Oman. • 1. Insert provision 52.225-12, Notice of BAA Requirement--Construction Materials under TAs, in SOLs containing clause at 52.225-11. • If insufficient time is avail to process a determination regarding the inapplicability of the BAA before receipt of offers, use provision with its Alternate I. • For acquisitions valued at $7.777M +, but less than $10,074,262, use clause with its Alternate II. • When using funds other than those appropriated under ARRA of 2009, follow prescriptions in paragraphs (a) through (d) of this section. Otherwise, follow the prescription in paragraph (e). • Insert clause at 52.225-9, BAA--Construction Materials, in SOLs and contracts for construction that is performed in the US valued at less than $7.777M. • List in para(b)(2) of clause all FCM excepted from the requirements of the BAA. • If the head of agency determines that a higher % is appropriate, substitute the higher evaluation % in paragraph (b)(3)(i) of the clause. • 1. Insert provision at 52.225-10, Notice of BAA Requirement--Construction Materials, in SOLs containing clause at 52.225-9. • If insufficient time is avail to process a determination regarding the inapplicability of the BAA before receipt of offers, use the provision with its Alternate I.
25.1102 – Acquisition of Construction (Cont’d) • 1. When using funds appropriated under the RA for construction, use provisions and clauses 52.225-21, 52.225-22,52.225-23, or 52.225-24 (with appropriate Alternates) in lieu of the provisions and clauses 52.225-9, 52.225-10, 52.225-11, or 52.225-12 (with appropriate Alternates), respectively, that would be applicable as prescribed in para’s(a) through (d) of this section if RA funds were not used. • If these RA provisions and clauses are only applicable to a project consisting of certain line items in the contract, identify in the schedule the line items to which the provisions and clauses apply. • When using clause 52.225-23, list FCM in para(b)(3) of the clause as follows: • Basic clause:List all FCM excepted from the BAA or section 1605 of the RA, other than MCM from a RA designated country or unmanufconstruction material from a designated country. • Alternate I. List in para(b)(3) of the clause all FCM excepted from the BAA or section 1605 of the RA, other than: • MCM from a RA designated country other than Bahrain, Mexico, or Oman; or • Unmanufconstruction material is from a designated country other than Bahrain, Mexico, or Oman. 25.1103 – Other Provisions and Clauses • Restrictions on certain foreign purchases. Insert clause at 52.225-13, in SOLs/contracts, unless an exception applies. • Translations. Insert clause at 52.225-14, in SOLs/contracts if anticipating translation into another language. • Foreign currency offers. Insert provision at 52.225-17, in SOLs that permit the use of other than a specified currency. Insert in the provision the source of the rate to be used in the evaluation of offers. • The CO shall include in each SOL for the acquisition of products or services (other than commercial items) the provision at 52.225-20 • The CO shall include in all SOLs the provision at 52.225-25