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PART 6-FOREIGN PURCHASES

Table of Contents

Subpart 1—Bay American Act-Supply and Service Contracts

Page 601 601 601 602 602 602

Paragraph
6.100 Scope of Subpart...
6.101 Definitions....
6.102 Statutory Requirements.
6.103 Exceptions..

6.103–1 Use Outside the United States...
6.103–2 Nonavailability in the United States.
6.103–3 Unreasonable Cost or Inconsistency With the

Public Interest....
6.1034 Scrap---

6.103–5 Canadian Supplies... 6.104 Procedures..

6.104-1 Applicability-
6.104–2 Solicitation of Bids and Proposals
6.104-3 Certificate..
6.104-4 Evaluation of Bids and Proposals..

6.104-5 Contract Clause....
6.105 List of Excepted Articles, Materials, and Supplies....

602 602 603 603 603 603 603 603 606 607

Subpart 2-Buy American Act-Construction Contracts

6.200 Scope of Subpart.-----
6.201 Definitions.

6.201-1 Construction...
6.201–2 Construction Materials...
6.201-3 Componente..
6.201-4 United States...
6.201-5 Domestic Construction Material.

6.201-6 Nondomestic Construction Material.
6.202 Statutory Requirements.
6.203 Exceptions..

6.203–1 Nonavailability in the United States....

6.203—2 Unreasonable Costs or Impracticability 6.204 Procedures....

6.204-1 Applicability --
6.204–2 Solicitation of Bids and Proposals.
6.204-3 Evaluation of Bids and Proposals...

6.204-4 Small Business..
6.205 Penalty for Violation...
6.206 List of Excepted Articles, Materials, and Supplies...
6.207 Contract Clauses..

609 609 609 609 609 609 609 609 609 609 609 609 610 610 610 610 611 611 612 612

Subpart 3—(Reserved)

Subpart 4—Purchases from Soviet-Controlled Areas
Paragraph
6.401 Restrictions...

6.401-1 General Policy -
6.401–2 Soviet-Controlled Areas...
6.401-3 Certain Supplies of Foreign Origin....
6.401-4 Certain Supplies from Hong Kong, Macao, and

Soviet-Controlled Areas.
6.401–5 Supplies from North Korea or China.---
6.402 Exceptions..
6.403 Contract Clause ---

Page 617 617 617 617

618 619 619 621

Subpart 5—(Reserved]

Subpart 6—Duty and Customs

6.601 Duties and Customs on Foreign Purchases..

627

Subpart 7—Foreign Contract Procurement

6.700 Scope of Subpart.
6.701 Definition of Foreign Contract Procurement..
6.702 Policy ---
6.703 Assignment of Responsibility for Contract Negotiation.-
6.704 Procedure
6.705 Assignment of Contract Administration.
6.706 Contracts With Foreign Nationals.

629 629 629 629 629 629 630

Subpart 8 Balance of Payment Program-Offshore Procurement

635

6.801 Use of Excess Foreign Currencies
6.801-1 Obligations Incurred in Excess and Near-excess

Currency Countries...
6.801–2 Designation and Announcement of Excess Cur-

rency Countries...

635

635

Subpart 9 [

Reserved]

Subpart 10—Exemption of Certain Contracts With Foreign

Contractors From the Requirement for an Examination of
Records Clause

6.1000 Scope of Subpart.--
6.1001 Statutory Requirements
6.1002 Policy---
6.1003 Requests for Determinations and Findings.
6.1004 Determination and Findings..

651 651 651 651 652

PART 6

FOREIGN PURCHASES

Subpart 1–Buy American Act-Supply and Service Contracts

6.100 Scope of Subpart. This Subpart implements the Buy American Act (41 U.S.C. 10a-d) and the policies set forth in Executive Order 10582, dated December 17, 1954, with respect to supply and service contracts.

6.101 Definitions. As used in this Subpart, the following terms have the meanings set forth below.

(a) 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.

(b) Components means those articles, materials, and supplies which are directly incorporated in end products.

(c) United States means the States, the District of Columbia, Puerto Rico, American Samoa, the Canal Zone, the Virgin Islands, Guam, and any areas subject to the complete sovereignty of the United States.

(d) Domestic source end product means an unmanufactured end product which has been mined or produced in the United States, or an end product manufactured in the United States if the cost of its components 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 (i) 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 (ü) 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.

(e) Canadian end product means an unmanufactured end product, mined or produced in Canada, or an end product manufactured in Canada if the cost of its components which are mined, produced, or manufactured in Canada or the United States exceeds 50 percent of the cost of all its components.

(f) Foreign end product means an end product other than a domestic source end product.

(g) Domestic bid means a bid or offered price for a domestic source end product, including transportation to destination.

(b) Foreign bid means a bid or offered price for a foreign end product, including transportation to destination, and duty (whether or not a duty-free entry certificate may be issued).

6.102 Statutory Requirements. Except as provided in 6.103, the Buy American Act requires that in the procurement of supplies and services only domestic source and products shall be acquired for public use. In determining whether an end product is a domestic source end product, only the end product and its components shall be considered.

FOREIGN PURCHASES 6.103 Exceptions.

6.103–1 Use Outside the United States. The restrictions of the Buy American Act do not apply to articles, materials, or supplies for use outside the United States.

6.103–2 Nonavailability in the United States.

(a) The Buy American Act does not apply to articles, materials, or supplies of a class or kind which the Government has determined are not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality. Such classes or kinds of articles, materials, or supplies are included in the list set forth in 6.105.

(b) Contracting officers are authorized to make additional determinations of nonavailability both prior to entering into contracts and in the course of contract administration, provided, however, that in the latter case the Government receives adequate consideration. A copy of each determination of nonavailability will be included in the contract file.

(c) The following is the format for nonavailability determinations made by contracting officers:

a

Determination of Nonavailability

Pursuant to the authority contained in Section 2, Title III, of the Act of March 3, 1933 (popularly called the Buy American Act (41 U.S.C. 10a-d)), and authority delegate to me by 6.103–2(b), I hereby find: a. (Insert a description of the item or items to be procured, including unit, quantity,

and estimated cost inclusive of duty and transportation costs to destination.) b. (Enter the name and address of proposed contractor or supplier, and country

of origin of the item or items.) c. (Include a brief statement of the necessity for the procurement.) d. (Include a statement of facts establishing the nonavailability of a similar item

or items of domestic origin. If there is no known domestic item or items which

can be used as a reasonable substitute, a statement to this effect will be made.) Based upon these findings, it is determined that the above described item(s) is (are) not mined, produced, or manufactured, or the articles, materials, or supplies from which it (they) is (are) manufactured, are not mined, produced, or manufactured, as the case may be, in the United States in sufficient and reasonably available quantities and of a satisfactory quality.

Accordingly, the requirement of the Buy American Act that procurement be made from domestic sources and that it be of domestic origin is not applicable to this procurement, since said procurement is within the nonavailability exception stated in the Buy American Act. Authority is granted to procure the above-described item(s) of foreign origin (country of origin) at an estimated total cost of including duty and transportation costs to destination.

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6.103–3 Unreasonable Costs or Inconsistency With the Public Interest. When it is determined by the Administrator that the cost of a domestic source end product would be unreasonable or that its acquisition would be inconsistent with the public interest, the restrictions of the Buy American Act do not apply.

6.103–4 Scrap. Scrap generated in, collected in, and prepared for processing in the United States shall be considered as of domestic origin.

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