FOREIGN PURCHASES (b) Regulations governing procedures for application for duty free entry are set forth in 15 CFR 701 and 19 CFR 10.115. To take advantage of this authority, the contracting officer shall, with the advice of legal |counsel, prepare an application in seven copies on U.S. Department of Commerce Form DIB-338P in accordance with the cited regulations. (c) Applications prepared as prescribed above shall be submitted to the United States Customs Service, Attention: Classification and Value, Washington, DC 20229. The Office of General Counsel shall represent NASA before the Customs Bureau and the Court of Customs and Patent Appeals. CFR TITLE 41 CHAPTER 18 Subpart 7-Foreign Contract Procurement 6.700 Scope of Subpart. This Subpart prescribes policy and procedures relating to the negotiation of foreign contracts. 6.70 Definition of Foreign Contract Procurement. The term "foreign contract procurement" as used in this Subpart means the procurement by negotiation of supplies or services, including construction work and contracts for research and development, where the work is to be performed outside the United States, its possessions, and Puerto Rico, by a foreign government or instrumentality thereof, or a foreign private contractor. The term does not include the following: (i) negotiation of government-to-government agreements; (ii) negotiation of contracts with domestic concerns which involves work to be performed outside the United States, its possessions, and the Commonwealth of Puerto Rico; (iii) contracts with the Canadian Commercial Corporation; or (iv) procurement of books and periodicals from foreign sources of supply. 6.702 Policy. Foreign contract procurement is a specialized area which often requires involved negotiation with instrumentalities of foreign governments. Some of the requirements for contract clauses imposed by United States laws conflict with statutory prohibitions imposed by foreign countries. The resolution of these issues generally involves close coordination between the Office of International Affairs and the Office of General Counsel, NASA Headquarters, and the Department of State. Accordingly, it is the policy of NASA that the responsibility for foreign contract procurement be centralized at NASA Headquarters. 6.703 Assignment of Responsibility for Contract Negotiation. The Headquarters Contracts Division (Code: JHC), in conjunction with the Offices of International Affairs and General Counsel, is responsible for negotiating and executing contracts with foreign governments and private foreign organizations. This assignment of responsibility is specifically limited to foreign contract procurement, as defined in 6.701. 6.704 Procedure. A Headquarters or field installation technical office requiring a foreign procurement to be made will submit a properly approved Purchase Request (NASA Form 404, or similar form), through channels, to the Headquarters Contracts Division, NASA Headquarters (Code JHC), for procurement action. In accordance with 7.000, contract forms and clauses to be used in foreign contract procurement will be as prescribed on a case-by-case basis by the Assistant Administrator for Procurement. 6.705 Assignment of Contract Administration. (a) General. Assignment of contract administration responsibility will be made by agreement between the initiating office and the Headquarters Contracts Division. Since principal responsibility for the monitoring of contractor progress and performance generally rests with a field installation, the Headquarters Contracts Division normally will designate the Procurement Officer of the cognizant field installation as his authorized representative for purposes of contract administration. (b) Contracts Performed in Canada. (1) When, in accordance with the provisions of Part 51, Subpart 3, contract administration and related support service functions of the Defense Contract Administration Services are desired on a contract to be performed in Canada (whether placed with Canadian Commercial Corpora NASA PROCUREMENT REGULATION 6.705 FOREIGN PURCHASES tion or direct with a Canadian firm), a letter of delegation shall be issued to: Defense Supply Agency, DCASO, Ottawa, 6th Floor, Canadian Building 219 Laurier Avenue, West Ottawa, Ontario, Canada (K1A035) (2) In order that DCASO, Ottawa may utilize the capabilities of the Canadian Government agencies in the performance of contract administration services functions, each letter of delegation shall provide that the DCASO, Ottawa is delegated authority to act as the contracting officer's representative with power of further delegation for the performance of the requested services. 6.706 Contacts with Foreign Nationals. (a) Proposals by NASA staff members which involve program or contract possibilities with foreign nationals shall be coordinated with the Office of International Affairs, NASA Headquarters, before any contacts are made with foreign nationals. (b) Informal discussions between NASA staff members and foreign nationals could give rise to expectations concerning program or contract possibilities which are not supported by program requirements. Such situations must be avoided to preclude possible embarrassment to the United States, as well as to NASA. (c) Requests or offers by foreign nationals to NASA staff members on program or contract matters shall be reported promptly to the Office of International Affairs. (See NASA Policy Directive 1362.1, "Initiation and Development of International Participation and Cooperation in Aeronautical and Space Programs.") 6.706 CFR TITLE 41 CHAPTER 18 Subpart 8-Balance of Payments Program-Offshore Procurement 6.801 Use of Excess Foreign Currencies. It is the policy of NASA to utilize all possible actions to minimize payments and maximize receipts entering into the balance of payments. In carrying out this policy, procurement offices should, to the maximum extent practicable, ensure that contracts and other obligations incurred in excess and near-excess currency countries are made payable in foreign currencies rather than in U.S. dollars. The expenditure, in these countries, of foreign currencies rather than U.S. dollars provides a saving in the budget and improves the balance of payments situation. 6.801-1 Obligations Incurred in Excess and Near-excess Currency Countries. NASA procurement offices should establish procedures to ensure that contracts and other obligations incurred in excess and near-excess currency countries are made payable in foreign currencies rather than in U.S. dollars, notwithstanding the appropriation or fund that will be used for payment. This should include contracts with American contractors, to the extent that the contractor may be expected to require such currencies for necessary expenses in the country involved. 6.801-2 Designation and Announcement of Excess Currency Countries. Excess and near-excess currency countries are designated by the Treasury Department, and a list of such countries is published in Office of Management and Budget "Foreign Currency Bulletins." Department of State "Foreign Currency Bulletins" list excess and near excess curriencies which are available for travel and transportation expenses, or for payment of obligations incurred in those countries. The Director of Financial Management, NASA Headquarters, maintains a current list of excess currency countries and arranges for its publication in the NASA Travel Regulations. NASA PROCUREMENT REGULATION 6.801-2 |