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The clause set forth below shall be inserted in contracts resulting from Balance of Payments Program procurements.

U.S. PRODUCTS AND SERVICES (BALANCE OF
PAYMENTS PROGRAM)

(a) To the extent that the Government specifies that the items being purchased are in implementation of the Balance of Payments Program, the Contractor agrees that there will be delivered or performed under this contract only U.S. end products or U.S. services.

(b) For the purpose of this clause:

(1) "Components" means those articles, materials, and supplies which are directly incorporated in the end products;

(2) "End products" means those articles, materials, and supplies which are acquired under this contract for public use;

(3) "U.S. end product" means:

(i) An unmanufactured end product which has been mined or produced in the United States; or

(ii) An end product manufactured in the United States, if the cost of the components thereof which are mined, produced, or manufactured in the United States exceeds 50 percent of the cost of all its components. For the purpose of this subparagraph, components of foreign origin of the same type and kind which the Government determines are not mined, produced, or manufactured in sufficient and reasonably available commercial quantities and of satisfactory quality shall be treated as components mined, produced, or manufactured in the United States.

(4) "U.S. services" means those that are performed within the United States. In some instances, services provided under a single contract are performed partially in the United States and partially abroad. Such services shall be considered U.S. services if 25 percent or less of the total cost of the services is attributable to services (including incidental supplies used in connection therewith) performed outside the United States.

Subpart 1-6.9-[Reserved]

Subpart 1-6.10-Omission of the Examination of Records Clause From Contracts With Foreign Contractors

SOURCE: 34 FR 6844, Apr. 24, 1969, unless otherwise noted.

§ 1-6.1000 Scope.

This subpart sets forth policies and procedures for omitting the Examination of Records clause from contracts with foreign contractors and foreign subcontractors where agencies desire to omit such clause under the authority granted in section 304(c) of the Federal Property and Administrative Services Act of 1949, as amended.

§ 1-6.1001 Statutory requirements.

(a) In accordance with section 304(c) of the Federal Property and Administrative Services Act of 1949, as amended (41 U.S.C. 254(c)), the Examination of Records by Comptroller General clause (see § 1-7.103-3) may be omitted from negotiated contracts and subcontracts with foreign contractors and foreign subcontractors.

(1) Where the head of the agency determines, with the concurrence of the Comptroller General or his designee, that omission of the clause will serve the best interests of the United States; or

(2) Where (i) the contractor or subcontractor is a foreign government or agency thereof, or is precluded by the law of the country involved from making its books, documents, papers, or records available for examination; and (ii) the head of the agency determines, after taking into account the price and availability of the property or services from U.S sources, that the public interest would best be served by the omission of the clause.

(b) A determination by the head of the agency under paragraph (a) (2) of this § 1-6.1001 does not require the concurrence of the Comptroller General or his designee. However, where a determination by the head of the agency under paragraph (a) (2) of this § 1-6.1001 is the basis for omission of the Examination of Records clause, the statute requires that a written report be furnished to the Congress. This report, which shall explain the reasons for the determination, shall be prepared and forwarded to the Congress in accordance with agency procedures.

[34 FR 6844, Apr. 24, 1969, as amended at 41 FR 19313, May 12, 1976]

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§ 1-6.1004 Determinations and findings.

The determinations and findings by the head of an agency authorizing the omission of the Examination of Records clause from a contract with a foreign contractor or foreign subcontractor shall:

(a) Identify the contract or subcontract and its purpose, and state that it is a contract or subcontract with a foreign contractor or foreign subcontractor, or that the contractor or subcontractor is a foreign government or agency thereof;

(b) Describe the efforts that have been made to include the clause in the contract or subcontract;

(c) State the reasons for the contractor's or subcontractor's refusal to include the clause;

(d) Describe the price and availability of the property or services from United States and other sources; and

(e) Determine, as appropriate, (1) that the omission of the clause will serve the best interests of the United

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