channels, to the Deputy Chief of Staff for Logistics, Department of the Army, Washington 25, D.C., Attn: Chief, Contracts Division. Each submission, in addition to complete information on all factors pertinent to the required Secretarial action, will contain a proposed award recommendation. Appropriate provision will be made by purchasing offices for extending acceptance dates of bids or offers, as required, to permit sufficient time for transmission and Secretarial consideration. [26 F.R. 2177, Mar. 15, 1961] § 595.104-5 Contract clause. In addition to the clause prescribed by § 6.103-5 of this title, the additional special provisions set forth in this section shall be included in all contracts for supplies; experimental, developmental, or research; and in contracts for services when applicable, except that these provisions shall not be included in contracts exclusively for articles, materials or supplies for use outside the United States, for items not listed in § 595.103-5, involving procurements exempt under provisions of § 595.504 (c), and for Civil Works acquired with funds appropriated for Civil Functions, Department of the Army. (a) Supply contracts. The following special provisions shall be included in supply contracts: The following articles, materials, and supplies which are to be acquired under this contract are listed in paragraph 6-103.5 of the Army Procurement Procedure. Accordingly, bids or proposals offering (i) Canadian end products as defined in paragraph 6-101 (e) of the Armed Services Procurement Regulation, or (ii) supplies which are mined, produced or manufactured in Canada and are to be incorporated in end products manufactured in the United States, for the following listed supplies acquired under this contract will be treated as domestic bids or proposals as defined in paragraph 6-101 (g) of the Armed Services Procurement Regulation. (Insert broad class of listed items from APP 6-103.5 as applicable.) (b) Experimental, developmental or research contracts. The following special provision shall be included in experimental, developmental or research contracts: All articles, materials and supplies which are to be acquired under this contract are subject to the provisions of paragraph 6-103.5 of the Army Procurement Procedure. Accordingly, bids or proposals offering (1) Canadian end products as defined in paragraph 6-101(e) of the Armed Services Procurement Regulation, or (11) supplies which are mined, produced or manufactured in Canada and are to be incorporated in end products manufactured in the United States for equipment being acquired under this contract will be treated as domestic bids or proposals as defined in paragraph 6-101 (g) of the Armed Services Procurement Regulation. (c) Service contracts. One of the provisions set forth in paragraph (a) or (b) of this section will be included in service contracts when applicable. [25 F.R. 10132, Oct. 25, 1960, as amended at 26 F.R. 2177, Mar. 15, 1961] § 595.105 List of excepted articles, materials, and supplies. Additional determinations pursuant to § 6.103-2 of this title, covering individual procurements, will be in accordance with § 595.103-2. Subpart B-Buy American Act- § 595.200 Scope of subpart. See § 6.204 of this title. § 595.204-3 Evaluation of bids and proposals. Requests for Secretarial decisions as to proposed awards, referred to in § 6.204-3 (c) of this title, will be forwarded, through channels, to the Deputy Chief of Staff for Logistics, Department of the Army, Washington 25, D.C., Attn: Chief, Contracts Branch. Each submission will include complete information on the conditions set forth in § 6.204-3 (c) of this title and a copy of the bid or proposal which is the basis of the proposed award. § 595.206 List of excepted articles, materials, and supplies. Additional determinations pursuant to § 6.203-1 of this title covering individual contracts for construction will be made by those individuals who have been so authorized in accordance with Such § 595.103-2(b). determinations will be prepared substantially in the format set forth in § 595.103-2(d) and a copy will be forwarded as provided in paragraph (f) of § 595.103-2. Subpart C-Appropriation Act Restrictions on Procurement of Foreign Supplies § 595.300 Scope of subpart. See § 6.300 of this title. § 595.304 Procedures. See § 6.304 of this title. § 595.304-1 Procurement of food, clothing, spun silk yarn for cartridge cloth, or items containing mohair or cotton. Where prices for domestic supplies are unreasonable within the purview of § 6.304-1 of this title, the contracting officer will forward a request for Secretarial determination, through channels, to the Deputy Chief of Staff for Logistics, Department of the Army, Washington 25, D.C., Attn: Chief, Contracts Branch. Each such request, in addition to complete information on all factors pertinent to the requested action, will contain a proposed determination prepared for Secretarial signature. The format of the determination in § 595.1032(d) of this Part may be used, provided that required changes are made therein (such as, modification of the statutory citation and modification of the determination and findings in accordance with the requirements of the exception to the appropriation act restriction, as set forth in § 6.303(g) of this title. Subpart D-Purchases From SovietControlled Areas See § 6.401 of this title. § 595.402 Exceptions. (a) The following procedures will govern where it is proposed to procure supplies originating from sources within Soviet-controlled areas for public use within the United States (as defined in § 6.101 (c) of this title), or where a construction contractor proposes to use such supplies in the performance of a construction contract within the United States (as defined in § 6.201-4 of this title). (1) Where the cost of the proposed procurement of such supplies is $2,500 or less, a Buy American Act determination of the nonavailability of domestic supplies will be made by an authorized delegate in accordance with § 595.103-2 of this Part. This determination will include, in addition to the findings outlined in the format set forth in § 595.1032(d), a finding to the effect that there is no known item or items from sources outside Soviet-controlled areas which can be used as a reasonable substitute. (2) Where the cost of the proposed procurement of such supplies exceeds $2,500, a request for Secretarial approval of the proposed procurement, as provided in § 6.402(b) (2) of this title, will be forwarded, through channels, to the Deputy Chief of Staff for Logistics, Department of the Army, Washington 25, D.C., Attn: Chief, Contracts Branch. Each submission will include all the information required to support a Buy American Act determination of the nonavailability of domestic supplies, as outlined in $595.103-2(c), and in addition a statement to the effect that there is no known item or items from sources outside Soviet-controlled areas which can be used as a reasonable substitute. A proposed determination prepared for Secretarial signature will also be included. The format of the determination set forth in § 595.103-2(d) will be used and will include as a finding the statement referred to above as to the nonavailability of the item or items from outside Soviet-controlled areas. (b) The following procedures will govern where it is proposed to procure supplies, originating from sources within Soviet-controlled areas for public use outside the United States (as defined in § 6.101 (c) of this title), or where a construction contractor proposes to use such supplies in the performance of a construction contract outside the United States (as defined in § 6.201-4 of this title), or where a construction contractor proposes to use such supplies in the performance of a construction contract outside the United States (as defined in § 6.201-4 of this title). (1) Where the cost of the proposed procurement of such supplies is $2,500 or less, the contracting officer will prepare for the contract file a statement establishing the unusual situation, such as an emergency or the nonavailability of acceptable substitute supplies of domestic or non-Soviet-controlled area origin, which justifies the procurement of supplies originating in a Soviet-controlled area. (2) Where the cost of the proposed procurement of such supplies exceeds $2,500, a request for Secretarial approval of the proposed procurement, as provided in § 6.402(b) (2) of this title, will be forwarded, through channels, to the Deputy Chief of Staff for Logistics, Department of the Army, Washington 25, D.C., Attn: Chief, Contracts Branch. Each submission will include complete information establishing the unusual situation, such as an emergency or the nonavailability of acceptable substitute supplies of domestic or non-Soviet-controlled area origin, which justifies the procurement of supplies originating in a Soviet-controlled area. Subpart E-Canadian Purchases § 595.501 Purchase from Canadian sup pliers. The purchase of supplies or services from sources in the Dominion of Canada shall be made from, and administered through the Canadian Commercial Corporation through its Washington Office, except: (a) under circumstances of public exigency as described in § 3.202-2 of this title, procuring activities are authorized to negotiate directly with suppliers or contractors domiciled in the Dominion of Canada without reference to the Canadian Commercial Corporation; (b) subject to applicable restrictions of §§ 592.205 and 592.211 of this subchapter, procuring activities are authorized to negotiate directly for research services with any university, college, or educational institution located in the Dominion of Canada without reference to the Canadian Commercial Corporation or Canadian clearing agency; or (c) when the Canadian Commercial Corporation requests that the procurement be placed directly with Canadian suppliers or contractors. § 595.501-50 firms. Solicitation of Canadian Canadian firms should be included on bidders' mailing lists and comparable source lists only upon request by the Canadian Commercial Corporation. Such requests should be directed to the activity having procurement responsibility for the supplies or services involved. Invitations for Bids and Requests for Proposals will be sent directly to the Canadian firms appearing on the appropriate bidders' mailing list. A copy of the Invitation for Bids or Request for Proposals and a listing of all Canadian firms solicited will be sent to the Canadian Commercial Corporation, 2450 Massachusetts Avenue NW., Washington, D.C., or to the Canadian Commercial Corporation, 56 Lyon Street, Ottawa, Canada. Invitations for Bids and Requests for Proposals will also be furnished to the Canadian Commercial Corporation, if requested by the Corporation for its own account, even though not furnished to Canadian firms. § 595.501-51 Submission of bids and proposals. (a) Except as provided in § 595.501 (a), (b), and (c), bids and proposals received directly from Canadian firms will not be accepted. The Canadian Commercial Corporation will receive bids and proposals from individual Canadian firms for forwarding by cover letter to the procuring activity. Bids and proposals received directly from a Canadian firm shall be referred to the Canadian Commercial Corporation for appropriate action. (b) Bids of the Canadian Commercial Corporation will be subject to the same consideration with respect to determining responsiveness as is applied to domestic bids. § 595.501-52 Pre-award survey requirements of Canadian firms. (a) Except as provided in § 595.501, prime contracts for supplies or services procured from sources in the Dominion of Canada will be made with the Canadian Commercial Corporation and further subcontracted to sources selected by the Canadian Commercial Corporation. (b) In determining the responsibility of the contractor where procurements are placed with Canadian sources, the contracting officer will document the file as required by § 1.904 of this title with a record of his determination as to the responsibility of the first tier subcontractor selected by the Canadian Commercial Corporation to perform the contract. (c) The pre-award qualification check or survey information required by the contracting officer as the basis for the determination referred to in paragraph (b) of this section, may be obtained by direct request to the Canadian Commercial Corporation. To the extent deemed necessary, such surveys may be performed by the contracting officer or by his representative in lieu of or in addition to pre-award qualification survey information furnished by the Canadian Commercial Corporation. § 595.503 Agreement with Department of Defense Production (Canada). See § 6.503 of this title. § 595.503-50 Letter Agreement with Department of Defense Production (Canada). A letter agreement between the Department of Defense Production (Canada) and the Departments of the Army, Navy, and Air Force, dated July 27, 1956 and subsequently amended sets forth policies and procedures applicable to contracts for supplies and services, placed by the Military Departments with the Canadian Commercial Corporation on and after October 1, 1956. The agreement follows: DEAR SIRS: The agreement between the Department of Defence Production (Canada) and the United States Departments of the Army, Navy, and Air Force (hereinafter referred to as the "Military Departments"), evidenced by the letter of February 18, 1952, from the Deputy Minister of Defence Production (Canada), the terms of which were accepted by the Military Departments at Washington on February 26, 1952 (which agreement was amended as of January 13, 1953, December 21, 1955 and June 21, 1956), laid down policies and provided procedures with respect to all contracts for supplies and services placed with the Canadian Commercial Corporation by the Military Departments, up to and including September 30, 1956. Since experience in the administration of contracts placed by the Military Departments with the Canadian Commercial Corporation (hereinafter referred to as the "Corporation") under the agreement indicates that it is desirable to revise certain policies and procedures set forth in said agreement with respect to all contracts entered into on or after October 1, 1956, it is therefore agreed as follows: 1. This agreement applies to all contracts placed, on or after October 1, 1956, by any of the Military Departments with the Corporation. It shall remain in force from year to year until terminated by mutual consent; however, it can be terminated on the 31st day of December or the 30th day of June in any year by either party provided that six months notice of termination has been given in writing. In addition, this agreement provides for certain reciprocal arrangements facilitating procurement by each of the parties in the country of the other. 2. (a) The Corporation agrees that, if the aggregate profit realized by first-tier subcontractors under contracts covered by this agreement, excluding those subcontracts mentioned in subparagraph (b) below, exceeds 10% of the cost (as determined in accordance with Costing Memorandum DDP-31 of the Department of Defence Production (Canada)), the amount of such excess will be refunded by the Corporation to the Military Departments. For this purpose, the aggregate profit shall be computed by the Corporation on all first-tier subcontracts, excluding those mentioned in subparagraph (b) below, taken collectively and not individually. The Corporation shall, in computing such profit, conduct the audits called for in paragraph 5 and such other audits or verifications of costs as it may deem necessary, and shall render to the Military Departments its certificate as to such profit. (b) Subcontracts placed by the Corporation as a result of formal competitive bidding, and subcontracts placed by the Corporation with Canadian Arsenals Limited or any other department or agency of the Canadian Government, shall not be included in computing the aggregate profit referred to in subparagraph (a) above. (c) If, as a result of an audit made by direction of the Minister of Defence Production (Canada) under the powers conferred upon him by Section 21 of the Defence Production Act (Canada), it is disclosed that any individual subcontractor of any tier, including any subcontractor referred to in subparagraphs (a) and (b) above, has made a profit on a subcontract, under a contract covered by this agreement, in excess of an amount which the Minister considers to be fair and reasonable, the Minister shall take appropriate action to recover such excess, and the amount of any such recovery with respect to that subcontract shall be refunded to the Military Departments. (d) Contracts for communication and transportation services, and the supply of power, water, gas, and other utilities shall be excepted from the provisions of subparagraphs (a) and (c) above provided the rates or charges for such services or utilities are fixed by public regulatory bodies; and provided further the Military Departments are accorded any special rates that may be available to the Canadian Government with respect to such contracts. (e) The Canadian Government, its Departments and Agencies, including but not limited to the Corporation and Canadian Arsenals Limited, a Crown Company wholly owned by the Canadian Government, shall not be entitled to any profit on any contract or contracts covered by this agreement. Any profits which may be realized shall be refunded to the Military Departments except as hereinafter provided: Before refunding profits realized from the following sources: (i) Net profits of the Canadian Government, its Departments and Agencies, as defined above, with respect to contracts and subcontracts covered by this agreement, (ii) Excess profits referred to in paragraph (a) above, and (iii) Renegotiation recoveries from subcontractors of any tier under contracts covered by this agreement, which recoveries the Military Departments would otherwise be entitled to receive in accordance with the provisions of subparagraphs (a) and (c). above; the Corporation shall be entitled to deduct any losses it may sustain with respect to contracts covered by this agreement. (f) Interim adjustments and refunds under this paragraph 2 shall be made at such time or times as may be mutually agreed upon but at least once a year as of June 30th. Such interim adjustments shall apply only to completed contracts. The final adjustment and refund shall be made as soon as practicable after the expiration of this agreement. (g) The profit and loss provisions of this paragraph 2 shall not apply to contracts awarded to the Corporation as the result of formal competitive bidding (initiated by Invitation for Bids). 3. (a) All contracts placed by the Military Departments with the Corporation, except those placed as the result of formal competitive bidding, shall provide for prices or cost reimbursement, as the case may be, in terms of Canadian currency, and for payment to be made in such currency. Therefore, quotations and invoices shall be submitted by the Corporation to the Military Departments in terms of Canadian currency, and such cost data, vouchers, etc. as the contracts require shall also be submitted in terms of Canadian currency. However, the Corporation may elect in respect of any of such contracts to quote, submit the said cost data, vouchers, etc., and receive payment in United States currency, in which event such contracts shall provide for payment in United States currency and shall not be subject to adjustment for losses or gains resulting from fluctuations in exchange rates. (b) All formal competitive bids shall be submitted by the Corporation in terms of United States currency and contracts placed as a result of such formal competitive bidding shall not be subject to adjustment for losses or gains resulting from fluctuations in exchange rates. 4. The Military Departments and the Corporation shall avoid, to the extent consistent with the declared policies of the Military Departments and the Canadian Government, the making of any surcharges covering administration costs with respect to contracts placed with the Corporation by any of the Military Departments and contracts placed by the Military Departments in the United States for the Canadian Government. 5. To the extent that contracts placed with the Corporation by the Military Departments provide for the audit of costs and profits such audit will be made without charge to the Military Departments by the Cost Inspection and Audit Division of the Treasury of Canada in accordance with Costing Memorandum Form DDP-31 of the Department of Defence Production, Canada. 6. The Canadian Government shall arrange for inspection personnel of the Department of National Defence (Canada) to act on behalf of the Military Departments with respect to contracts placed by the Military Departments with the Corporation and with respect to subcontracts placed in Canada by United States contractors which are performing contracts for the Military Departments, and for the use of inspection facilities of the Department of National Defence (Canada) for such purposes, such personnel and facilities to be provided without cost to the Military Departments. The Military Departments shall provide and make no charge for inspection services and inspection facilities in connection with contracts placed in the United States by the Military Departments for the Canadian Government and with respect to subcontracts placed in the United States by Canadian contractors which are performing contracts for the Department of Defence Production (Canada). The Department of National Defence (Canada) or any Military Department may provide liaison with the other's inspection personnel in connection with the foregoing. It is understood that either the Department of National Defence (Canada) or any Military Department may in appropriate cases arrange for inspection by its own inspection organization in the other's country. 7. Because of the varying arrangements made by the Canadian Government and the Military Departments in furnishing Government-owned facilities (including buildings and machine tools) to contractors, it is recognized that the matter of inclusion in contract prices of charges, through amortization or otherwise, for use of such facilities will be determined in the negotiation of individual contracts. However, there shall be avoided, to the extent consistent with the policies of the Canadian Government and the Military Departments, any such charges for use of Government-furnished facilities. 8. (a) The Corporation agrees that the prices set out in fixed-price type contracts covered by this agreement will not include any taxes with respect to first-tier subcontracts; nor shall such prices include customs duties to the extent refundable in accordance with Canadian law, paid upon the import of any materials, parts, or components incorporated or to be incorporated in the supplies, with respect to first-tier subcontracts. (b) The Corporation agrees that under cost-reimbursement type contracts the Corporation shall, to the extent practicable with respect to first-tier subcontracts, exclude from its claims all taxes and to the extent refundable in accordance with Canadian law, customs duties, paid upon the import of any materials, parts, or components, incorporated or to be incorporated in the supplies and that any amounts included in such claims representing such taxes and duties shall |