Page images
PDF
EPUB

(1) To procure items required for military assistance which are not produced in the United States;

(2) To make local purchases for administrative purposes;

(3) To use local currency available for military assistance purposes; or

(4) Where the Assistant Secretary of Defense (ISA) certified that exclusion of procurement outside the United States would seriously impede attainment of Military Assistance Program objectives.

(b) Where MAP orders involve procurement covered by a certification issued in accordance with paragraph (a) (4) of this section, the Director of Military Assistance, Office of the Assistant Secretary of Defense (International Security Affairs), will specify in such order that the Military Department is authorized to procure off-shore.

[blocks in formation]

The following procedures apply to all contracts for the Military Assistance Program (other than those excepted pursuant to § 6.702) citing funds authorized by the Foreign Assistance Act of 1961, or citing funds made available under Department of Defense Appropriation Acts when it is known at the time of procurement that the items being procured are to fill existing Military Assistance Program orders and that Department of Defense appropriations are to be reimbursed from Foreign Assistance Act funds. The requirements of §§ 6.703-6.703-4 do not apply to issues from Department of Defense inventories or to replenishment of such inventories.

§ 6.703-2 Method of purchase.

Procurement for the Military Assistance Program shall be restricted to domestic concerns and to United States end products. Except for this restriction on solicitation, procurement shall be made by formal advertising, wherever practicable, in accordance with the policy of § 2.102-1 of this chapter. Subject to the limitations prescribed in Subpart A, Part 3, of this chapter and pursuant to the authority of 10 U.S.C. 2304(a), procurement may be effected by negotiation under any appropriate exception of 10 U.S.C. 2304 (a) (see Subpart B, Part 3 of this chapter). The Foreign Assistance Act of 1961 shall not be used as authority to negotiate under 10 U.S.C. 2304 (a) (17).

[blocks in formation]

When the procurement is solely to fill existing Military Assistance Program orders, the solicitation shall so state. When the procurement consists of both Military Assistance Program items and non-Military Assistance Program items, the solicitation shall clearly designate the Military Assistance Program items. In either instance, the solicitation shall require that each bid or proposal for end products include a certificate substantially as follows:

UNITED STATES PRODUCTS CERTIFICATE (MILITARY ASSISTANCE PROGRAM) (DEC. 1962)

To the extent that the Government specifies the items being purchased are in implementation of the Military Assistance Program, the bidder or offeror hereby certifies that each such item furnished will be a United States end product (as defined in the contract clause entitled United States Products); that components of unknown origin have been considered to have been mined, produced, or manufactured outside the United States; and that he is a domestic concern.

§ 6.703-4 Contract clause.

The clause set forth herein shall be inserted in all procurements of end products for the Military Assistance Program. UNITED STATES PRODUCTS (MILITARY ASSIST

ANCE PROGRAM) (DEC. 1962)

(a) To the extent that the Government specifies the items being purchased are in implementation of the Military Assistance Program, the contractor agrees that there will be delivered under this contract only United States end products.

(b) For the purpose of this clause: (i) "Components" means those articles, materials, and supplies, which are directly incorporated in end products;

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

(iii) A "United States end product" means (A) An unmanufactured end product which has been mined or produced in the United States, and

(B) 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. A component shall 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 determined by the Government to be not mined, produced, or manufactured in

[merged small][ocr errors][ocr errors][merged small][ocr errors][ocr errors][merged small][ocr errors][ocr errors][ocr errors][ocr errors][merged small][ocr errors][ocr errors][ocr errors][merged small][ocr errors][ocr errors][ocr errors][ocr errors][merged small]

(1) To procure items required for military assistance which are not produced in the United States;

(2) To make local purchases for administrative purposes;

(3) To use local currency available for military assistance purposes; or

(4) Where the Assistant Secretary of Defense (ISA) certified that exclusion of procurement outside the United States would seriously impede attainment of Military Assistance Program objectives.

(b) Where MAP orders involve procurement covered by a certification issued in accordance with paragraph (a) (4) of this section, the Director of Military Assistance, Office of the Assistant Secretary of Defense (International Security Affairs), will specify in such order that the Military Department is authorized to procure off-shore. § 6.703

Procedures.

§ 6.703-1 Applicability.

The following procedures apply to all contracts for the Military Assistance Program (other than those excepted pursuant to § 6.702) citing funds authorized by the Foreign Assistance Act of 1961, or citing funds made available under Department of Defense Appropriation Acts when it is known at the time of procurement that the items being procured are to fill existing Military Assistance Program orders and that Department of Defense appropriations are to be reimbursed from Foreign Assistance Act funds. The requirements of §§ 6.703-6.703-4 do not apply to issues from Department of Defense inventories or to replenishment of such inventories.

§ 6.703-2 Method of purchase.

Procurement for the Military Assistance Program shall be restricted to domestic concerns and to United States end products. Except for this restriction on solicitation, procurement shall be made by formal advertising, wherever practicable, in accordance with the policy of §2.102-1 of this chapter. Subject to the limitations prescribed in Subpart A, Part 3, of this chapter and pursuant to the authority of 10 U.S.C. 2304(a), procurement may be effected by negotiation under any appropriate exception of 10 U.S.C. 2304(a) (see Subpart B, Part 3 of this chapter). The Foreign Assistance Act of 1961 shall not be used as authority to negotiate under 10 U.S.C. 2304 (a) (17).

[blocks in formation]

When the procurement is solely to fill existing Military Assistance Program orders, the solicitation shall so state. When the procurement consists of both Military Assistance Program items and non-Military Assistance Program items, the solicitation shall clearly designate the Military Assistance Program items. In either instance, the solicitation shall require that each bid or proposal for end products include a certificate substantially as follows:

UNITED STATES PRODUCTS CERTIFICATE (MILITARY ASSISTANCE PROGRAM) (DEC. 1962)

To the extent that the Government specifies the items being purchased are in implementation of the Military Assistance Program, the bidder or offeror hereby certifies that each such item furnished will be a United States end product (as defined in the contract clause entitled United States Products); that components of unknown origin have been considered to have been mined, produced, or manufactured outside the United States; and that he is a domestic concern.

§ 6.703-4 Contract clause.

The clause set forth herein shall be inserted in all procurements of end products for the Military Assistance Program. UNITED STATES PRODUCTS (MILITARY ASSISTANCE PROGRAM) (DEC. 1962)

(a) To the extent that the Government specifies the items being purchased are in implementation of the Military Assistance Program, the contractor agrees that there will be delivered under this contract only United States end products.

(b) For the purpose of this clause:

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

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

(iii) A "United States end product" means (A) An unmanufactured end product which has been mined or produced in the United States, and

(B) 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. A component shall 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 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.

§ 6.704 Exemption from examination of records requirement.

§ 6.704-1 General.

With respect to Military Assistance Program purchases authorized to be made outside the United States under the Foreign Assistance Act of 1961, Executive Order No. 10784, dated 1 October 1958, as amended by Executive Order No. 10845, dated 12 October 1959 exempts:

(a) Contracts with foreign contractors to be performed outside the United States from the examination of records requirements of 10 U.S.C. 2313(b); and

(b) Contracts, and amendments and modifications thereof, entered into pursuant to Public Law 85-804 (see § 17.501 of this chapter), from the examination of records requirements of section 3(b) of the law, provided that, with respect to such contracts and amendments and modifications thereof, inclusion of the "Examination of Records" clause or compliance therewith is determined by the Department concerned to be impracticable. Such determinations may be made by any officer or official authorized to approve contracts, and amendments and modifications thereof, pursuant to § 17.201 of this chapter.

[blocks in formation]

(a) Fixed-price contracts. The Examination of Records clause set forth in § 7.104-15 of this chapter shall be omitted from government-to-government contracts within the scope of § 6.7041(a). (b)

Cost-reimbursement type con

tracts. In government-to-government contracts within the scope of § 6.7041(a), the Examination of Records clause set forth in § 7.203-7(a) of this chapter shall be modified as follows: Subparagraph (3) of the clause shall be deleted; the references in subparagraphs (4) and (5) to "documentary evidence delivered pursuant to subparagraph (3) above" shall be deleted; the references to "the Comptroller General" and "his authorized representatives" shall be deleted from subparagraphs (2), (4), (5), and subparagraph (b), and the word "Department" shall be inserted in lieu of the reference to "Comptroller General"

[blocks in formation]

In any particular contract within the scope of § 6.704-1(a) which is made with a foreign contractor other than a foreign government, the Examination of Records clause set forth in § 7.104-15 of this chapter may be omitted (in the case of a fixed-price contract) and the Examination of Records clause set forth in § 7.203-7 of this chapter may be modified as indicated in § 6.704-2(b) (in the case of a cost-reimbursement type contract) if such omission or modification is approved by the contracting activity concerned in accordance with Departmental procedures, following a determination that such omission or modification will further the purposes of the Foreign Assistance Act of 1961.

Sec.

PART 7-CONTRACT CLAUSES Subpart A-Clauses for Fixed-Price Supply Contracts

Applicability. [Revised; redesig-nated]

Contracts subject in part to incentive revision. [Added]

Definitions. [Revised]

7.101

7.102

7.103-1

7.103-2

Changes. [Amended]

[blocks in formation]

Inspection. [Revised]

Assignment of claims. [Amended] Disputes. [Amended]

Renegotiation. [Amended]

compensation. [Revised]

Clauses for contracts involving construction work. [Revised] Workmen's compensation insurance overseas. [Revised] 7.104-12 Military security requirements. [Revised]

7.104-14 Utilization of small business concerns. [Revised j Examination of records. [Amended]

7.104-15

7.104-18 Priorities, allocations and allot

ments. [Revised] 7.104-20 Utilization of concerns in labor surplus areas. [Revised] 7.104-22 Small Business Subcontracting Program. [Revised] 7.104-28 Quality control system. [Revised]

[blocks in formation]
« PreviousContinue »