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Subpart 3-Reserved]

NASA PROCUREMENT REGULATION

Subpart 4-Purchases From Certain
Communist Areas

6.401 General Policy. It is the general policy of NASA that were I North

supplies which originated in, were located in, or

transferred from or through the Communist areas of Korea, Vietnam, or Cuba (except supplies which have been lawfully imported into the United States, its possessions, or Puerto Rico), shall not be acquired for public use, notwithstanding the provisions of any Subpart of this Part 6, and that NASA contractors and subcontractors shall not acquire for use in the performance of any NASA contract or subcontract thereunder any supplies or services originating from such Communist areas.

6.402 Exceptions. Supplies from the Communist areas of North Korea, Vietnam, or Cuba may be acquired only in unusual situations; for example, in an emergency, or where supplies are not available from any other source and a substitute supply is not acceptable. For small purchases (as defined in Part 3, Subpart 6), the contracting officer shall determine that there is a need for an exception in accordance with the procedures set forth in 6.403. For other than small purchases, exception must be approved by the Administrator in accordance with the procedures set forth in 6.403.

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6.403 Procedures.

(a) When it is proposed to procure supplies originating from the Communist areas of North Korea, Vietnam, or Cuba for public use within the United States (as defined in 6.001 (c)), or when a construction contractor proposes to use such supplies in the performance of a contract for construction within the United States (as defined in 6.201-4), the following procedures shall be followed:

a

(1) If the proposed procurement of such supplies does not | exceed $10,000, the contracting officer shall make determination of nonavailability, as authorized in 6.103-2. This determination shall include, in addition to the findings required in 6.103-2, a finding to the effect that there is no known item or items from sources other than the Communist sources which can be used as a reasonable substitute. Such determination shall be made a part of the contract file.

(2) If the proposed procurement of such supplies exceeds $10,000, the contracting officer shall prepare a determination of nonavailability for signature by the Administrator. The format of the determination set forth in 6.103-2(c) shall be used and such determination shall include, as an additional finding, a statement to the effect that there is no known item or items from sources other than the Communist sources which I can be used as a reasonable substitute. Such determination shall be forwarded in triplicate, to the Office of Procurement, NASA Headquarters (Code HS−1).

(b) When it is proposed to procure supplies originating from the Communist areas of North Korea, Vietnam, or Cuba for Sublic use outside the United States, or when a construction

NASA PROCUREMENT REGULATION

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FOREIGN PURCHASES

contractor proposes to use such supplies in the performance of a contract for construction outside the United States, the following procedures shall be followed:

(1) If the proposed procurement of such supplies does not exceed $10,000, the contracting officer shall make a written finding setting forth the unusual situation, such as an emergency or the nonavailability of acceptable substitute supplies of domestic origin or from sources other than the Coummunist sources, which justifies the procurement. finding shall be made a part of the contract file.

Such

(2) If the proposed procurement of such supplies exceeds $10,000, the contracting officer shall make a written finding, as described in (a) (2) above. Such finding shall be forwarded, in triplicate, to the Office of Procurement, NASA Headquarters, (Code HS-1), for approval by the Administrator of the exception authorizing the proposed procurement. 6.404 Contract Clause.

(a) Except as provided in (b) below, in contracts for supplies, services, or construction, where acceptance is to take place outside the United States, its possessions, Puerto Rico, the following clause shall be included in the contract:

or

CERTAIN COMMUNIST AREAS

(AUGUST 1981)

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(a) Unless written approval is obtained from the Contracting Officer, the Contractor shall not acquire for use in the performance of this contract:

(i) any supplies or services originating from sources within the Communist areas of North Korea, Vietnam, or Cuba; (ii) any supplies, however processed, which are or were located in or transported from or through North Korea, Vietnam, or Cuba.

(b) The

Contractor agrees to insert the provisions of this paragraph (b), in all subcontracts

clause, including this hereunder.

End of clause

(b) The requirements of (a) above do not apply to small purchases (see Part 3, Subpart 6, of this Regulation) When there is other reasonable assurance of compliance with the policy set forth in this Subpart.

CFR TITLE 41 CHAPTER 18

Subpart 5-[Reserved]

NASA PROCUREMENT REGULATION

FOREIGN PURCHASES

BUY AMERICAN ACT AND TRADE AGREEMENTS ACT (JANUARY 1981)

(a) This clause implements the Buy American Act (41 U.S.C. Section 10a-d) and the Trade Agreements Act of 1979 (19 U.S.C. 2501 et seq.) by providing a preference to domestic end products over foreign end products except for certain foreign end products which meet the requirements for classification as designated country end products. For the purpose of this clause:

(i) "Components" means those articles, materials, and supplies which are directly incorporated into end products. (ii) "End products" means articles, materials, and supplies which are to be acquired for public use. As to a given contract, the end products are the items to be delivered to the Government, as specified in the contract, including supplies to be acquired by the Government for public use in connection with service contracts but excluding installation and other services to be performed after delivery.

(iii) "Domestic end product" means (A) an unmanufactured end product which has been mined or produced in the United States, or (B) an end product manufactured in the United States if the cost of its designated country components, and its components which are mined, produced, or manufactured in the United States exceeds 50 percent of the cost of all its components. The cost of components shall include transportation costs to the place of incorporation into the end product and U.S. duty (whether or not a duty-free entry certificate may be issued). A component shall also be considered to have been mined, produced, or manufactured in the United States (regardless of its source in fact) if the end product in which it is incorporated is manufactured in the United States and the component is of a class or kind (A) determined by the Government to be not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality, or (B) as to which the Administrator has determined that it would be inconsistent with the public interest to apply the restrictions of the Buy American Act.

(iv) "Foreign end product” means an end product other than a domestic end product.

(v) "Designated country end product" means an item that (i) is wholly the growth, product, or manufacture of the designated country, or (ii) in the case of an article which consists in whole or in part of materials from another country or instrumentality, has been substantially transformed into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was so transformed. The term includes services (except transportation services) incidental to its supply, provided that the value of those incidental services does not exceed that of the product itself. It does not include service contracts per se.

(b) The contractor agrees that there will be delivered under this contract only domestic end products unless, in its offer, it specified delivery of foreign end products in the certificate entitled "Buy American - Trade Agreements Certificate," An offer certifying that a designated country end product will be supplied requires the contractor to supply a designated country end product, or, at the contractor's option, a domestic end product.

(c) Offers will be evaluated in accordance with the policies and procedures of NASA PR Part 6.

6.105 List of Excepted Articles, Materials, and Supplies. The articles, materials, and supplies listed below may be acquired for public use without regard to country of origin, except as provided in Subpart 4, of this Part. The Administrator, by NASA Management Instruction 5106.1, "Determinations Under the Buy American Act - End Products and Construction Materials," has determined that it would be inconsistent with the public interest to apply the restrictions of the Buy American Act to petroleum included in the list below. The remaining articles, materials, and supplies in the list below are included on the basis of nonavailability (see 6.1032(a)). Acetylene black

Asbestos, amosite

Bananas

Beef extract

Bismuth

Brazil nuts, unroasted

Cadmium, ores and flue dust

Calcium cyanamide

Capers

Cashew nuts

Chestnuts

Chicle

Chrome ore or chromite

Cinchona bark

Cobalt, in cathodes, rondelles, or other primary forms

Cocoa beans

Coconut and coconut meat, unsweetened, in shredded, desiccated, or similarly prepared form Coffee, raw or green bean

Cork, wood or bark and waste

Diamonds, industrial, stones

6.105

CFR TITLE 41 CHAPTER 18

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