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BUY AMERICAN ACT-SUPPLY AND SERVICE CONTRACTS

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 (ii) as to which the Administrator has determined that it would be inconsistent with the public interest to apply the restrictions of the Act.

(b) 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. The cost of components shall include transportation costs to the place of incorporation into the end product.

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

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

including

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

6.102 General.

6.102-1 Statutory Requirements. Except as provided in 6.103, the Buy American Act requires that in the procurement of supplies and services caly domestic source end 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.

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. 10 3-2 Nonavailability in the United States. (a) The Buy American Act does not apply to (i) end products of a class or kind which the

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NASA PROCUREMENT REGULATION

FOREIGN PURCHASES

Government has determined are not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantitiies and of a satisfactory quality, or (ii) components of end products manufactured in the United States if 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. Certain items determined to be exempt under these exceptions are 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:

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 delegated to me by 6.1032(b), I hereby find:

a.

(Insert a description of the item or items to be procured, including unit, quantity, and of duty and

estimated

cost inclusive

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.)

CFR TITLE 41 CHAPTER 18

BUY AMERICAN ACT-SUPPLY AND SERVICE CONTRACTS

is

Based upon these findings, it is determined that
the above described item(s) is (are) not mined,
Froduced, or manufactured, or the articles,
materials, or supplies from which it (they)
(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 abovedescribed item (s) of foreign origin (country of origin) at an estimated total cost of $ including duty

transportation costs to destination.

and

(Date)

(Contracting Officer)

6.103-3 Unreasonable costs or Inconsistency with the Public Interest. The restrictions of the Buy American Act do not apply 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. Such determination shall be made in accordance with 6.104-4.

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

6.103-5 Canadian Supplies.

Buy

(a) The Administrator, by NASA Management Instruction 5106.2, "Determination Under the American Act-Canadian Supplies", has determined that it would be inconsistent with the public interest to apply the restrictions of the Buy American Act to the acquisition of certain supplies mined, produced, or manufactured in Canada. Accordingly, contracting officers shall:

(i) evaluate all bids and proposals offering Canadian end products on a parity with bids and proposals offering domestic source end products, except that applicable duty (whether or not a

NASA PROCUREMENT REGULATION

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FOREIGN PURCHASES

duty-free entry certificate may be issued) shall be included in evaluating such bids and proposals cffering Canadian end products; and

(ii) treat all components mined, produced, or manufactured in Canada as though they were mined, produced, or manufactured in the United States, except that, in evaluating bids and proposals containing such components, applicable duty (whether or not a duty-free entry certificate may te issued) shall be included.

(b) The procedures set forth in (a) above do not apply to or affect (i) items listed in 6.105 or (ii) items determined to be nonavailable in accordance with the procedures set forth in 6.103

2.

6.104 Procedures.

6.104-1 Applicability. The procedures in this paragraph 6.104 apply to all contracts involving the procurement of supplies, except contracts exclusively for articles, materials, or supplies for use outside the United States. For Canadian supplies, see 6.103-5 (a) .

6.104-2 Solicitation of Bids and Proposals. Invitations for bids and requests for proposals shall state that specific information as to articles, materials, and supplies excepted from the Buy American Act (see 6.105) is available to prospective contractors upon request.

6.104-3 Certificate. Invitations for bids and requests for proposals shall require that each bid or proposal include a certificate substantially as follows:

BUY AMERICAN CERTIFICATE (JANUARY

1964)

The bidder or offeror hereby certifies that each end product, except the end products excluded below, is a domestic source end product (as defined in the contract clause entitled Buy American Act); and that components of unknown origin have been considered to have been mined,

produced, or manufactured outside the United

States.

EXCLUDED ITEMS:.

6.104-4 Evaluation of Bids and Proposals.

CFR TITLE 41 CHAPTER 18

BUY AMERICAN ACT-SUPPLY AND SERVICE CONTRACTS

(a) The Administrator, by NASA Management Instruction 5106.1, "Determinations Under the Buy American Act-End Products and Construction Materials," has determined that where the procedures outlined in (b), (c), and (d), below, result in the acquisition of foreign end products, the acquisition of domestic source end products would be (i) unreasonable in cost or (ii) inconsistent with the public interest (see 6.1033). These procedures do not apply to evaluation of bids and proposals offering Canadian end products; such bids and proposals shall be evaluated as provided in 6.103-5(a) (i).

the

(b) Except as provided in 6.103-5(a) (i), bids and proposals shall be, evaluated so as to give preference to domestic bids. Award shall be made to the low acceptable bidder, after applying the procedures set forth in (c) below except for bids or proposals requiring decision of the Administrator, in accordance with (d) below. When more than one line item is offered in response to

an

invitation for bids or request for proposals, the appropriate percentage factor set forth in (c) celow shall be applied, for evaluation purposes, on an item-by-item basis, except that such percentage factor may be applied to any group of items when the invitation for bids or request for proposals specifically provides that award may be rade on a particular group of items.

(c) For purposes of evaluating bids and proposals, a factor of 6 percent of the amount of each foreign bid or proposal (which does not offer Canadian end products) shall be added to such tid or proposal. If, after applying such 6 percent factor, the low acceptable domestic bid or proposal is the low bid or proposal, award shall te made to the low domestic bidder or offeror. If, after applying such 6 percent factor, the low acceptable foreign bid or proposal is the low tid or proposal, award shall be made to such low foreign bidder or offeror, except that:

(i) when the firm submitting the low acceptable domestic bid or proposal is a small business or labor surplus area concern, or both, and its bid cr proposal exceeds $100,000, the proposed award submitted through the Office of

shall

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NASA PROCUREMENT REGULATION

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