Defense Federal Acquisition Regulation Supplement: DFARS Buy American Act Requirements (DFARS Case 2022-D019), 37942-37973 [2023-12019]

Agencies

• Defense Acquisition Regulations System
• DEPARTMENT OF DEFENSE

[Federal Register Volume 88, Number 111 (Friday, June 9, 2023)]
[Proposed Rules]
[Pages 37942-37973]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-12019]



[[Page 37941]]

Vol. 88

Friday,

No. 111

June 9, 2023

Part II





Department of Defense





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Defense Acquisition Regulations System





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48 CFR Parts 213, 225, and 252





Defense Federal Acquisition Regulation Supplement: DFARS Buy American 
Act Requirements (DFARS Case 2022-D019); Proposed Rule

Federal Register / Vol. 88, No. 111 / Friday, June 9, 2023 / Proposed 
Rules

[[Page 37942]]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 213, 225, and 252

[Docket DARS-2023-0024]
RIN 0750-AL74


Defense Federal Acquisition Regulation Supplement: DFARS Buy 
American Act Requirements (DFARS Case 2022-D019)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Proposed rule.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to supplement the Federal Acquisition 
Regulation implementation of an Executive order addressing domestic 
preferences in DoD procurement.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before August 8, 2023, to be considered 
in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2022-D019, using 
any of the following methods:
    [cir] Federal eRulemaking Portal: https://www.regulations.gov. 
Search for ``DFARS Case 2022-D019.'' Select ``Comment'' and follow the 
instructions to submit a comment. Please include your name, company 
name (if any), and ``DFARS Case 2022-D019'' on any attached document.
    [cir] Email: [email protected]. Include DFARS Case 2022-D019 in 
the subject line of the message.
    Comments received generally will be posted without change to 
https://www.regulations.gov, including any personal information 
provided. To confirm receipt of your comment(s), please check https://www.regulations.gov, approximately two to three days after submission 
to verify posting.

FOR FURTHER INFORMATION CONTACT: Kimberly Bass, telephone 703-717-3446.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD is proposing to amend the DFARS to supplement the Federal 
Acquisition Regulation (FAR) implementation of Executive Order (E.O.) 
14005, Ensuring the Future Is Made in All of America by All of 
America's Workers (86 FR 7475, January 28, 2021), by addressing DoD-
unique requirements. The FAR final rule, published at 87 FR 12780 on 
March 7, 2022 (effective October 25, 2022), implemented section 8 of 
E.O. 14005, which requires increasing the impact of the Buy American 
Act and provides for the following--
     An increase to the domestic content threshold, a schedule 
for future increases, and a fallback threshold that would allow for 
products meeting a specific lower domestic content threshold to qualify 
as domestic products under certain circumstances; and
     A framework for application of an enhanced price 
preference for a domestic product that is considered a critical item or 
made up of critical components.
    The proposed revisions to the DFARS will supplement the FAR by 
making conforming changes that incorporate the DoD-unique requirements.

II. Discussion and Analysis

    This proposed rule includes revisions to DFARS part 225 and the 
associated clauses to make conforming changes associated with 
implementation of E.O. 14005 that incorporate the DoD-unique 
requirements (e.g., inclusion of qualifying countries). Revisions are 
proposed to the definitions of ``domestic end product,'' ``qualifying 
country end product,'' and ``domestic construction material'' to 
address the scheduled increases to the domestic content threshold from 
55 percent to 60 percent in calendar year 2023, then to 65 percent in 
calendar year 2024, and to 75 percent in calendar year 2029. See DFARS 
225.101(a)(ii)(A) and the conforming changes at DFARS 213.302-5(d)(i) 
and (ii) to allow use of the appropriate alternate.
    A DoD contractor that is awarded a contract with a period of 
performance that spans the schedule of domestic content threshold 
increases will be required to comply with each increased threshold for 
the items in the year of delivery. However, in instances where this 
requirement to comply with changing domestic content thresholds would 
not be feasible for a particular contract, FAR 25.101(d) provides for a 
senior procurement executive to allow the application of an alternate 
domestic content test in defining ``domestic end product'' after 
consultation with Office of Management and Budget's Made in America 
Office (MIAO). The alternate domestic content test will allow the 
contractor to comply with the domestic content threshold that applies 
at the time of contract award, for the entire period of performance for 
that contract. The contracting officer will be required to select one 
of the newly created alternate clauses for 252.225-7001, Buy American--
Balance of Payments Program, prescribed at 225.1101(2)(iv) and (v); and 
one of the newly created alternate clauses at 252.225-7036, Buy 
American--Free Trade Agreements--Balance of Payments Program, 
prescribed at 225.1101(10)(i).
    This proposed rule also allows for the use of the 55 percent 
domestic content threshold (i.e., the fallback threshold included in 
the FAR final rule), until one year after the increase of the domestic 
content threshold to 75 percent, in instances where an agency has 
determined that there are no end products or construction materials 
that meet the new domestic content threshold, or such products are of 
unreasonable cost. A determination is not required before January 1, 
2030, if there is an offer for a foreign end product that exceeds 55 
percent domestic content, including qualifying country content (see 
225.103(b)(ii) and 225.202(a)(2)). This proposed rule supplements the 
FAR with a consistent 55 percent threshold available until 2030 for use 
where domestic products at a higher threshold are not available or the 
cost to acquire them would be unreasonable. Revisions are proposed to 
the definition of ``domestic end product'' to authorize the use of the 
fallback threshold if the award is made before January 1, 2030, for a 
foreign end product that exceeds 55 percent domestic content (see 
225.103(b)(ii)).
    The fallback threshold requires offerors to indicate which of their 
foreign end products exceed 55 percent domestic content (see proposed 
revisions to solicitation provisions at DFARS 252.225-7000, Buy 
American--Balance of Payments Program Certificate, and 252.225-7035, 
Buy-American--Free Trade Agreements--Balance of Payments Program 
Certificate). The fallback threshold only applies to construction 
material that does not consist wholly or predominantly of iron or steel 
or a combination of both and that are not commercially available off-
the-shelf (COTS) items, as well as to end products that do not consist 
wholly or predominantly of iron or steel or a combination of both and 
that are not COTS items. For example, if a domestic end product that 
exceeds the 60 percent domestic content threshold is determined to be 
of unreasonable cost after application of the price preference, then 
for evaluation purposes DoD will treat an end product that is 
manufactured in the United States or a qualifying country and exceeds 
55

[[Page 37943]]

percent domestic content, instead of 60 percent domestic content, as a 
domestic end product.
    Proposed revisions to DFARS 225.101 implement the alternate 
domestic content test provided in the FAR final rule. A contract with a 
period of performance that spans the schedule of domestic content 
threshold increases will be required to comply with each increased 
threshold for the items in the year of delivery, unless the senior 
procurement executive of the contracting agency allows for application 
of an alternate domestic content test for that contract, under which 
the domestic content threshold in effect at time of contract award will 
apply to the entire period of performance for the contract. Therefore, 
newly created alternates to DFARS clauses are prescribed to reflect the 
domestic content threshold that will apply to the entire period of 
performance for that contract.
    DFARS 225.1101(2)(iv) and (v) prescribe use of new Alternates II 
and III of the clause at 252.225-7001, Buy American and Balance of 
Payments Program. The clause at 252.225-7036, Buy American--Free Trade 
Agreements--Balance of Payments Program, and its new alternates are 
prescribed at 225.1101(10)(i). The contracting officer is required to 
select the correct alternate clause.
    DFARS 225.1101(1)(i) and (ii) prescribe use of the basic 
solicitation provision or alternate at 252.225-7000, Buy American--
Balance of Payments Program Certificate, when using an alternate 
domestic content threshold. DFARS 225.1101(9)(ii) prescribes use of the 
basic solicitation provision or alternates at 252.225-7035, Buy 
American--Free Trade Agreements--Balance of Payments Program 
Certificate, when using an alternate domestic content threshold.
    The FAR final rule provided the framework through which higher 
price preferences will be applied to end products and construction 
material deemed to be critical or made up of critical components. A 
subsequent rulemaking under FAR Case 2022-004, Enhanced Price 
Preference for Critical Components and Critical Items, will establish 
and implement the definitive list at FAR 25.105 of critical items and 
critical components, along with the associated enhanced price 
preference(s). To align with changes to FAR subpart 25.1, the DFARS 
renumbers section 225.105 to 225.106. Therefore, cross references are 
updated at 225.106(b).
    Revisions are proposed to implement the enhanced price preference 
framework in the relevant DFARS provisions and clauses, including the 
alternates, to add the requirement to list each domestic end product 
with critical components or critical items and for foreign end products 
that exceed the required 55 percent (except COTS items), for foreign 
end products that do not consist wholly or predominantly of iron or 
steel or a combination of both; and adds a table for the listing of 
critical components and critical items as applicable (see section III 
of this preamble).
    For the application and use of the DFARS evaluation procedures for 
the evaluation of foreign offers for supply contracts, the proposed 
rule includes revisions to DFARS 225.502(c)(ii)(C) to elucidate that a 
qualifying country offer is subject to the domestic content requirement 
for end products that are wholly or predominantly of iron or steel or a 
combination of both if the low offer is a foreign offer exempt from the 
application of the Buy American statute or Balance of Payments Program 
evaluation factor.
    The proposed rule includes conforming revisions for the definitions 
of ``critical component'', which means a component that is mined, 
produced, or manufactured in the United States and deemed critical to 
the U.S. supply chain, and ``critical item'', which means a domestic 
construction material or domestic end product that is deemed critical 
to the U.S. supply chain. The lists of critical components and critical 
items are at FAR 25.105.
    Several clarifying revisions were implemented in the FAR at 52.212-
3(f)(1)(ii), Offeror Representations and Certifications--Commercial 
Products and Commercial Services; 52.225-2(a)(2), Buy American 
Certificate; and 52.225-4(c), Buy American-Free Trade Agreements--
Israeli Trade Act Certificate (see 86 FR 6180 dated January 19, 2021). 
For consistency with the FAR, conforming revisions were made to remove 
the following excerpt from the DFARS: ``i.e., an end product that is 
not a COTS item and does not meet the component test in paragraph (ii) 
of the definition of ``domestic end product'':''. Accordingly, these 
revisions were made to the provision at 252.225-7000, Buy American--
Balance of Payments Program Certificate, Basic and Alternate I, 
paragraph (c)(3); the provision at 252.225-7035, Buy American--Free 
Trade Agreements--Balance of Payments Program Certificate, Basic and 
Alternates I, II, III, IV, and V, paragraph (c)(2)(iii).

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold (SAT) and for Commercial Services and Commercial Products, 
Including Commercially Available Off-the-Shelf (COTS) Items

    This proposed rule includes amendments to the following 
solicitation provisions and contract clauses: DFARS 252.225-7000, Buy 
American and Balance of Payments Program Certificate (Basic and 
Alternate I); DFARS 252.225-7001, Buy American and Balance of Payments 
Program (Basic and Alternate I); DFARS 252.225-7035, Buy American--Free 
Trade Agreements--Balance of Payments Program Certificate (Basic and 
Alternates I, II, III, IV, and V); DFARS 252.225-7036, Buy American--
Free Trade Agreements--Balance of Payments Program (Basic and 
Alternates I, II, III, IV, and V); DFARS 252.225-7044, Balance of 
Payments Program--Construction Material, (Basic and Alternate I); and 
252.225-7045, Balance of Payments Program--Construction Material Under 
Trade Agreements (Basic and Alternates I, II, and III).
    In addition, this proposed rule includes new alternates for the 
clauses at DFARS 252.225-7001, Buy American and Balance of Payments 
Program, and 252.225-7036, Buy American--Free Trade Agreements--Balance 
of Payments Program. This proposed rule does not add any new 
requirements on contracts at or below the simplified acquisition 
threshold, for commercial products including commercially available off 
the-shelf items, or for commercial services.

IV. Expected Impact of the Rule

    This proposed rule includes changes to the DFARS that supplement 
the FAR's implementation of E.O. 14005 via the final rule for FAR Case 
2021-008 (published March 7, 2022 in the Federal Register at 87 FR 
12780, with an effective date of October 25, 2022). The FAR final rule 
provided for--
    1. An increase to the domestic content threshold that a product 
must meet to be defined as ``domestic''; a schedule for future 
increases; and a fallback threshold that would allow products meeting a 
specific lower domestic content threshold to qualify as a domestic 
product under certain circumstances; and
    2. A framework for the application of an enhanced price preference 
for a domestic product that is considered a critical product or is made 
up of critical components.
    This proposed rule implements these changes in DFARS part 225 and 
in the

[[Page 37944]]

solicitation provisions and contract clauses that contain DoD-unique 
requirements such as the inclusion of qualifying countries. A 
qualifying country is a country that has a reciprocal defense 
procurement memorandum of understanding or international agreement with 
the United States in which both countries agree to remove barriers to 
purchases of supplies produced in the other country or services 
performed by sources of the other country; the memorandum of 
understanding or agreement complies, where applicable, with the 
requirements of section 36 of the Arms Export Control Act (22 U.S.C. 
2776) and with 10 U.S.C. 2457. The DFARS definition of ``domestic end 
product'', for the purpose of compliance with the domestic content 
threshold, includes components that are mined, produced, or 
manufactured in the United States and in qualifying countries. The list 
of qualifying countries appears in the definition of ``qualifying 
country'' at DFARS 225.003 and in certain contract clauses.
    It is anticipated that those domestic industries making adjustments 
for the increased domestic content within their supply chains to 
continue supplying domestic end products are more likely to benefit 
from a competitive advantage when the rule is implemented. Because the 
FAR final rule has been in effect since October 2022, potential 
offerors may already be making those adjustments.
    The Buy American statute and the Balance of Payments Program (e.g., 
certifications required of offerors to demonstrate end products are 
domestic) remain unchanged and continue to reflect processes that have 
been in place for decades. Under this proposed rule, as under the FAR 
final rule, when deciding whether to pursue a procurement and use of 
products (i.e., domestic or foreign), offerors will have to plan for 
the future changes to the domestic content threshold during the period 
of performance of an anticipated contract, unless use of an alternate 
domestic content threshold, in effect at time of contract award, has 
been authorized.
    As under the FAR final rule, those offerors that do not to modify 
their supply chains to comply with the scheduled increases to the 
domestic content threshold will still be able to propose an offer for 
DoD contracts. However, they may no longer have use of a price 
preference.
    Increased domestic sourcing of content facilitates the reduction of 
DoD's supply chain risk. Because the FAR final rule has been in effect 
since October 2022, any increased burden with regard to the timed 
increases to the domestic content threshold, on contractors in 
particular, could be minor if not de minimis.
    The framework for the enhanced price preference is intended to 
provide a stable source of demand for domestically produced critical 
products. This proposed rule merely supplements the FAR with the DoD-
unique requirements. A separate rulemaking will be undertaken to add to 
the FAR critical products and components to establish the associated 
preferences. Therefore, the associated cost impacts and benefits will 
be captured in the subsequent FAR rulemaking (FAR case 2022-004, 
Enhanced Price Preference for Critical Components and Critical Items).
    There is an information collection burden associated with offerors 
identifying when a domestic end product or domestic construction 
material contains a critical component or critical item (see section 
VIII of this preamble), but it is anticipated that the information 
collection will be fully implemented for all agencies that use the FAR 
in the future rulemaking for the FAR case 2022-004. Any of the 
associated burden should be offset by the benefits of the larger price 
preference received for these items. The overall cost impact of this 
rule is not significant, and any associated impact is anticipated to be 
primarily positive.

V. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993.

VI. Regulatory Flexibility Act

    DoD does not expect this proposed rule to have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., 
because the rule contains few additional compliance and reporting 
requirements for certain offerors, including small businesses. However, 
an initial regulatory flexibility analysis has been performed and is 
summarized as follows:
    The proposed rule includes amendments to the Defense Federal 
Acquisition Regulation Supplement (DFARS) to supplement the Federal 
Acquisition Regulation (FAR) implementation of Executive Order (E.O.) 
14005, Ensuring the Future Is Made in All of America by All of 
America's Workers (86 FR 7475, January 28, 2021), by addressing DoD-
unique requirements. The FAR final rule, published at 87 FR 12780 on 
March 7, 2022 (effective October 25, 2022), implemented section 8 of 
E.O. 14005, which requires the impact of the Buy American statute to be 
strengthened by providing--
     An increase to the domestic content threshold required to 
be met for an end product and construction material to be defined as 
``domestic'' and a schedule for future increases;
     A fallback threshold that would allow for end products 
meeting a specific lower domestic content threshold to qualify as a 
domestic end product under certain circumstances; and
     A framework for application of an enhanced price 
preference for a domestic end product that is considered a critical 
item or is made up of critical components.
    The objective of the rule is to make conforming changes associated 
with the FAR implementation of E.O. 14005 that incorporate the DoD-
unique requirements (e.g., inclusion of qualifying countries). E.O. 
14005 addresses a series of actions to enable the U.S. Government to 
maximize the use of goods, products, and materials produced in the 
United States in order to strengthen and diversify domestic supplier 
bases and create new opportunities for U.S. firms and workers. The 
legal basis for this proposed rule is 41 U.S.C. 1303.
    Data was obtained from the Federal Procurement Data System (FPDS) 
for fiscal years 2019, 2020, and 2021 on awards valued over the micro-
purchase threshold for construction and for supplies. Based on the 
data, DoD made an average of 161,686 awards for supplies per year to 
approximately 14,913 small entities and an average of 177 awards for 
construction per year to approximately 167 small entities. This 
proposed rule could apply to those small entities.
    The proposed rule will strengthen domestic preferences under the 
Buy American statute and the Balance of Payments Program and provide 
small businesses the opportunity and

[[Page 37945]]

incentive to deliver U.S.-manufactured products from domestic 
suppliers. It is expected that this proposed rule generally would 
benefit U.S. small business manufacturers. Small business manufacturers 
who do not already meet the increased domestic content requirements of 
this proposed rule may need to adjust their supply chains. DoD does not 
have data on how many small business manufacturers may make such 
adjustments.
    This proposed rule includes new reporting, recordkeeping, or other 
compliance requirements for small businesses. Prior to this rule, small 
businesses already had to monitor compliance with contract requirements 
pertaining to the increased domestic content threshold implemented in 
the FAR for contracted items. This proposed rule makes conforming 
changes to align the DFARS with the FAR while incorporating the DoD-
unique requirements. Due to small businesses' familiarity with the FAR 
final rule, the increases in the domestic content threshold implemented 
in this rule are unlikely to result in additional disruption to 
existing contractor supply chains.
    The rule contains a few additional reporting requirements for 
certain offerors, including small businesses. Small businesses who 
submit an offer for a solicitation subject to the Buy American statute 
or the Balance of Payments Program already have to list the foreign end 
products included in their offer. This proposed rule would require that 
the offeror also identify which of these foreign end products are not 
COTS items, do not consist wholly or predominantly of iron or steel or 
a combination of both, and meet or exceed the fallback domestic content 
threshold.
    The rule does not duplicate, overlap, or conflict with any other 
Federal rules.
    There are no known significant alternative approaches to the rule 
that would meet the requirements of the Executive order.
    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 610 (DFARS Case 2022-D019), in 
correspondence.

VIII. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) applies to this 
rule. However, these changes to the DFARS do not impose additional 
information collection requirements to the paperwork burden previously 
approved under Office of Management and Budget Control Number 0704-
0229, entitled Defense Federal Acquisition Regulation Supplement 
(DFARS) Defense Federal Acquisition Regulation Supplement Part 225, 
Foreign Acquisition, and Related Clauses at 252.225; DD Form 2139.

List of Subjects in 48 CFR Parts 213, 225, and 252

    Government procurement.

Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 213, 225, and 252 are proposed to be 
amended as follows:

0
1. The authority citation for parts 213, 225, and 252 continues to read 
as follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.

PART 213--SIMPLIFIED ACQUSITION PROCEDURES


213.302-5   [Amended]

0
2. Amend section 213.302-5--
0
a. In paragraph (d) introductory text by removing ``Act'' and adding 
``statute'' in its place; and
0
b. In paragraphs (d)(i) and (ii) by removing ``Program,'' and adding 
``Program, or the appropriate alternate,'' in its place.

PART 225--FOREIGN ACQUISITION

0
3. Amend section 225.003--
0
a. In the definition of ``Domestic end product'' by revising paragraph 
(1)(ii)(A) introductory text; and
0
b. In the definition of ``Qualifying country end product'' by revising 
paragraph (2)(i) introductory text and paragraph (ii).


225.003   Definitions.

* * * * *
    Domestic end product means--
    (1) * * *
    (ii) * * *
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds 60 percent of the cost of all its components, except 
that the percentage will be 65 percent for items delivered in calendar 
years 2024 through 2028 and 75 percent for items delivered starting in 
calendar year 2029, unless an alternate percentage is established for a 
contract in accordance with FAR 25.101(d); or award is made before 
January 1, 2030, for a foreign end product that exceeds 55 percent 
domestic content (see 225.103(b)(ii)). The cost of components includes 
transportation costs to the place of incorporation into the end product 
and U.S. duty (whether or not a duty-free entry certificate is issued). 
Components of unknown origin are treated as foreign. Scrap generated, 
collected, and prepared for processing in the United States is 
considered domestic. A component is 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 for which the Government has determined that--
* * * * *
    Qualifying country end product means--
* * * * *
    (2) * * *
    (i) The cost of the following types of components exceeds 60 
percent of the cost of all its components, except that the percentage 
will be 65 percent for items delivered in calendar years 2024 through 
2028 and 75 percent for items delivered starting in calendar year 2029, 
unless an alternate percentage is established for a contract:
* * * * *
    (ii) The end product is a COTS item.
* * * * *
0
4. Amend section 225.101 by--
0
a. Revising paragraph (a)(ii)(A); and
0
b. Adding paragraph (d).


225.101   General.

    (a) * * *
    (ii)(A) Except for an end product that consists wholly or 
predominantly of iron or steel or a combination of both, the cost of 
its U.S. and qualifying country components exceeds 60 percent of the 
cost of all its components, except that the percentage will be 65 
percent for items delivered in calendar years 2024 through 2028 and 75 
percent for items delivered starting in calendar year 2029, but see 
paragraph (d) of this section. This test is applied to end products 
only and not to individual components.
* * * * *
    (d)(1) In lieu of the threshold increases in FAR 25.101(a)(2)(i), 
use the domestic content threshold increases in paragraph (a)(ii) of 
this section. The senior procurement executive may approve application 
of an alternate domestic content test, under which the domestic content 
threshold in effect at the time of contract award will apply to the 
entire period of performance of the

[[Page 37946]]

contract, following consultation with the Office of Management and 
Budget's Made in America Office. See PGI 225.101 for guidance on 
documentation requirements when the senior procurement executive 
approves application of an alternate domestic content test.
    (2) When the senior procurement executive allows for application of 
an alternate domestic content test for the contract pursuant to FAR 
25.101(d)(1) (but see paragraph (d)(1) of this section)--
    (A) See 225.1101(2)(iv) for use of alternate II of the clause at 
252.225-7001, Buy American and Balance of Payments Program;
    (B) See 225.1101(2)(v) for use of alternate III of the clause at 
252.225-7001, Buy American and Balance of Payments Program;
    (C) See 225.1101(9) for use of the basic or alternate provision at 
252.225-7035, Buy American--Free Trade Agreements--Balance of Payments 
Program Certificate, or the basic or alternate clause at 252.225-7036, 
Buy American--Free Trade Agreements--Balance of Payments Program; and
    (D) See 225.1101(10)(i) for use of the basic or alternate clause at 
252.225-7036, Buy American--Free Trade Agreements--Balance of Payments 
Program.
0
5. Amend section 225.103--
0
a. By revising paragraph (b)(ii) introductory text; and
0
b. In paragraph (c) by removing ``Subpart'' and adding ``subpart'' in 
its place.


225.103   Exceptions.

* * * * *
    (b) * * *
    (ii) A determination is not required before January 1, 2030, if 
there is an offer for a foreign end product that exceeds 55 percent 
domestic content. Except as provided in FAR 25.103(b)(3), the 
determination shall be approved--
* * * * *
0
6. Redesignate section 225.105 as section 225.106 and revise newly 
redesignated section 225.106 to read as follows:


225.106   Determining reasonableness of cost.

    (b) Use an evaluation factor of 50 percent instead of the factors 
specified in FAR 25.106(b)(1)(i) and (c)(1)(i).


225.170   [Amended]

0
7. Amend section 225.170 by removing ``Subpart'' and adding ``subpart'' 
in its place.
0
8. Revise section 225.202 to read as follows:


225.202   Exceptions.

    (a)(2) A nonavailability determination is not required for 
construction materials listed in FAR 25.104(a). For other materials, a 
nonavailability determination shall be approved at the levels specified 
in 225.103(b)(ii). Use the estimated value of the construction 
materials to determine the approval level. A nonavailability 
determination is not required before January 1, 2030, if there is an 
offer for foreign construction material that exceeds 55 percent 
domestic content (also see FAR 25.204(b)(1)(ii) and (b)(2)(ii)).
0
9. Amend section 225.502--
0
a. In paragraph (c)(i)(A) by removing ``subject only to the Buy 
American or Balance of Payments Program'' and adding ``subject only to 
the Buy American statute or the Balance of Payments Program'' in its 
place;
0
b. In paragraph (c)(i)(B) by removing ``factor'' and adding ``factor, 
but see 225.106'' in its place; and
0
c. By revising paragraph (c)(ii)(C).
    The revision reads as follows:


225.502   Application.

* * * * *
    (c) * * *
    (ii) * * *
    (C) If the low offer is a foreign offer that is exempt from 
application of the Buy American or Balance of Payments Program 
evaluation factor, award on that offer. If the low offer is a 
qualifying country offer from a country listed at 225.872-1(b), execute 
a determination in accordance with 225.872-4. A qualifying country 
offer is subject to the domestic content requirement for end products 
that are wholly or predominantly of iron or steel or a combination of 
both.
* * * * *
0
10. Amend section 225.1101--
0
a. In paragraph (1)(i) by removing ``basic clause'' and adding ``basic 
clause or alternate II of the clause'' in its place;
0
b. In paragraph (1)(ii) by removing ``alternate I'' and adding 
``alternate I or alternate III of the clause'' in its place;
0
c. In paragraph (2)(i) by--
0
i. Removing ``basic or the alternate'' and adding ``basic or an 
alternate'' in its place; and
0
ii. Removing ``Act'';
0
d. In paragraph (2) by adding paragraphs (iv) and (v);
0
e. In paragraph (9)(i) by removing ``basic of the clause'' and adding 
``basic or alternate VI of the clause'' in its place;
0
f. In paragraph (9)(ii) by removing ``alternate I of the clause'' and 
adding ``alternate I or alternate VII of the clause'' in its place;
0
g. In paragraph (9)(iii) by removing ``alternate II of the clause'' and 
adding ``alternate II or alternate VIII of the clause'' in its place;
0
h. In paragraph (9)(iv) by removing ``alternate III of the clause'' and 
adding ``alternate III or alternate IX of the clause'' in its place;
0
i. In paragraph (9)(v) by removing ``alternate IV of the clause'' and 
adding ``alternate IV or alternate X of the clause'' in its place;
0
j. In paragraph (9)(vi) by removing ``alternate V of the clause'' and 
adding ``alternate V or alternate XI of the clause'' in its place;
0
k. In paragraph (10(i)(D) by removing ``equals or exceeds $25,000, 
but'';
0
l. In paragraph (10)(i) by adding paragraphs (G) through (L); and
0
m. In paragraph (10)(ii)(B) by removing ``sSection'' and adding 
``section'' in its place.
    The additions read as follows:


225.1101   Acquisition of supplies.

* * * * *
    (2) * * *
    (iv) Use alternate II of the clause in lieu of the basic clause in 
solicitations and contracts if--
    (A) The acquisition is not of end products listed in 225.401-70 in 
support of operations in Afghanistan; and
    (B) An alternate domestic content threshold will apply to the 
entire period of performance as approved by the senior procurement 
executive (see 225.101(d)).
    (v) Use alternate III of the clause in lieu of Alternate I of the 
clause in solicitations and contracts if--
    (A) The acquisition is of end products listed in 225.401-70 in 
support of operations in Afghanistan; and
    (B) An alternate domestic content threshold will apply to the 
entire period of performance as approved by the senior procurement 
executive (see 225.101(d)).
* * * * *
    (10) * * *
    (i) * * *
    (G) Use the alternate VI clause in lieu of the basic clause in 
solicitations and contracts, except if the acquisition is of end 
products in support of operations in Afghanistan, when--
    (1) The estimated value equals or exceeds $100,000 but is less than 
$183,000; and
    (2) An alternate domestic content threshold will apply to the 
entire period of performance as approved by the senior procurement 
executive (see 225.101(d)).
    (H) Use the alternate VII clause in lieu of the alternate I clause 
in solicitations and contracts, except if the acquisition is of end 
products in support of operations in Afghanistan, when--

[[Page 37947]]

    (1) The estimated value is less than $92,319; and
    (2) An alternate domestic content threshold will apply to the 
entire period of performance as approved by the senior procurement 
executive (see 225.101(d)).
    (I) Use the alternate VIII clause in lieu of the alternate II 
clause in solicitations and contracts when--
    (1) The estimated value is less than $183,000;
    (2) The acquisition is of end products in support of operations in 
Afghanistan; and
    (3) An alternate domestic content threshold will apply to the 
entire period of performance as approved by the senior procurement 
executive (see 225.101(d)).
    (J) Use the alternate IX clause in lieu of the alternate III clause 
in solicitations and contracts when--
    (1) The estimated value is less than $92,319;
    (2) The acquisition is of end products in support of operations in 
Afghanistan; and
    (3) An alternate domestic content threshold will apply to the 
entire period of performance as approved by the senior procurement 
executive in accordance with FAR 25.101(d).
    (K) Use the alternate X clause in lieu of the alternate IV clause 
in solicitations and contracts, except if the acquisition is of end 
products in support of operations in Afghanistan, when--
    (1) The estimated value equals or exceeds $92,319 but is less than 
$100,000; and
    (2) An alternate domestic content threshold will apply to the 
entire period of performance as approved by the senior procurement 
executive (see 225.101(d)).
    (L) Use the alternate XI clause in lieu of the alternate V clause 
in solicitations and contracts when--
    (1) The estimated value equals or exceeds $92,319 but is less than 
$100,000;
    (2) The acquisition is of end products in support of operations in 
Afghanistan; and
    (3) An alternate domestic content threshold will apply to the 
entire period of performance as approved by the senior procurement 
executive (see 225.101(d)).
* * * * *
0
11. Amend section 225.7503 by--
0
a. Adding paragraphs (a)(3) and (4); and
0
b. Adding paragraphs (b)(5) through (8).
    The additions read as follows:


225.7503   Contract clauses.

    (a) * * *
    (3) Use the alternate II clause in lieu of the basic clause if an 
alternate domestic content threshold will apply to the entire period of 
performance as approved by the senior procurement executive (see 
225.101(d)), unless the acquisition is in support of operations in 
Afghanistan.
    (4) Use the alternate III clause in lieu of the alternate I clause 
if--
    (A) The acquisition is in support of operations in Afghanistan; and
    (B) An alternate domestic content threshold will apply to the 
entire period of performance as approved by the senior procurement 
executive (see 225.101(d)).
    (b) * * *
    (5) Use the alternate IV clause in lieu of the basic clause in 
solicitations and contracts, unless the acquisition is in support of 
operations in Afghanistan, when--
    (A) The estimated value is $12,001,460 or more; and
    (B) An alternate domestic content threshold will apply to the 
entire period of performance as approved by the senior procurement 
executive (see 225.101(d)).
    (6) Use the alternate V clause in lieu of the alternate I clause in 
solicitations and contracts, unless the acquisition is in support of 
operations in Afghanistan, when--
    (A) The estimated value is $7,032,000 or more; and
    (B) An alternate domestic content threshold will apply to the 
entire period of performance as approved by the senior procurement 
executive (see 225.101(d)).
    (7) Use the alternate VI clause in lieu of the alternate II clause 
in solicitations and contracts when--
    (A) The estimated value is $12,001,460 or more;
    (B) The acquisition is in support of operations in Afghanistan; and
    (C) An alternate domestic content threshold will apply to the 
entire period of performance as approved by the senior procurement 
executive (see 225.101(d)).
    (8) Use the alternate VII clause in lieu of the alternate III 
clause in solicitations and contracts when--
    (A) The estimated value is $7,032,000 or more but less than 
$12,001,460;
    (B) The acquisition is in support of operations in Afghanistan; and
    (C) An alternate domestic content threshold will apply to the 
entire period of performance as approved by the senior procurement 
executive (see 225.101(d)).

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
12. Amend section 252.225-7000--
0
a. By revising the provision date and paragraphs (a) and (c); and
0
b. In Alternate I, by revising the provision date and paragraphs (a) 
and (c).
    The revisions read as follows:


252.225-7000   Buy American--Balance of Payments Program Certificate.

* * * * *

Buy American--Balance of Payments Program Certificate--Basic (Date)

    (a) Definitions. Commercially available off-the-shelf (COTS) 
item, component, critical component, critical item, domestic end 
product, foreign end product, qualifying country, qualifying country 
end product, and United States, as used in this provision, have the 
meanings given in the 252.225-7001, Buy American and Balance of 
Payments Program--Basic clause of this solicitation.
* * * * *
    (c) Certifications and identification of country of origin.
    (1) For all line items subject to the Buy American and Balance 
of Payments Program--Basic clause of this solicitation, the Offeror 
certifies that--
    (i) Each end product, except those listed in paragraphs (c)(2) 
or (3) of this provision, is a domestic end product and that each 
domestic end product listed in paragraph (c)(4) of this provision 
contains a critical component or a critical item; and
    (ii) For end products other than COTS items, components of 
unknown origin are considered to have been mined, produced, or 
manufactured outside the United States or a qualifying country. For 
those end products that do not consist wholly or predominantly of 
iron or steel or a combination of both, the Offeror shall also 
indicate whether these foreign end products exceed 55 percent 
domestic content, except for those that are COTS items. If the 
percentage of the domestic content is unknown, select ``no''.
    (2) The Offeror certifies that the following end products are 
qualifying country end products:

               Line item No.                      Country of origin
 

    (3) The following end products are other foreign end products, 
including end products manufactured in the United States that do not 
qualify as domestic end products. For those foreign end products 
that do not consist wholly or predominantly of iron or steel or a 
combination of both, the Offeror shall also indicate whether these 
foreign end products exceed 55 percent domestic content, except for 
those that are COTS items. If the percentage of the domestic content 
is unknown, select ``no''.

[[Page 37948]]



------------------------------------------------------------------------
                                                          Exceeds 55%
          Line item No.            Country of origin   domestic content
                                      (if known)           (yes/no)
------------------------------------------------------------------------
 
 
 
------------------------------------------------------------------------

    (4) The Offeror shall separately list the line item numbers of 
domestic end products that contain a critical component or a 
critical item (see Federal Acquisition Regulation 25.105).
    Domestic end products containing a critical component or a 
critical item:

Line Item Number-------------------------------------------------------
[List as necessary]
* * * * *
    Alternate I. * * *

Buy American--Balance of Payments Program Certificate--Alternate I 
(Date)

    (a) Definitions. Commercially available off-the-shelf (COTS) 
item, component, critical component, critical item, domestic end 
product, foreign end product, qualifying country, qualifying country 
end product, South Caucasus/Central and South Asian (SC/CASA) state, 
South Caucasus/Central and South Asian (SC/CASA) state end product, 
and United States, as used in this provision, have the meanings 
given in the 252.225-7001, Buy American and Balance of Payments 
Program--Alternate I clause of this solicitation.
* * * * *
    (c) Certifications and identification of country of origin.
    (1) For all line items subject to the Buy American and Balance 
of Payments Program--Alternate I clause of this solicitation, the 
Offeror certifies that--
    (i) Each end product, except those listed in paragraphs (c)(2) 
or (3) of this provision, is a domestic end product and that each 
domestic end product listed in paragraph (c)(4) of this provision 
contains a critical component or a critical item; and
    (ii) For end products other than COTS items, components of 
unknown origin are considered to have been mined, produced, or 
manufactured outside the United States or a qualifying country. For 
those end products that do not consist wholly or predominantly of 
iron or steel or a combination of both, the Offeror shall also 
indicate whether these foreign end products exceed 55 percent 
domestic content, except for those that are COTS items. If the 
percentage of the domestic content is unknown, select ``no''.
    (2) The Offeror certifies that the following end products are 
qualifying country end products or SC/CASA state end products:

             Line Item Number                     Country of Origin
 

    (3) The following end products are other foreign end products, 
including end products manufactured in the United States that do not 
qualify as domestic end products. For those foreign end products 
that do not consist wholly or predominantly of iron or steel or a 
combination of both, the Offeror shall also indicate whether these 
foreign end products exceed 55 percent domestic content, except for 
those that are COTS items. If the percentage of the domestic content 
is unknown, select ``no''.

             Line Item Number               Country of Origin (if known)
 

* * * * *
0
13. Amend section 252.225-7001--
0
a. By revising the clause date;
0
b. In paragraph (a)--
0
i. In the definition of ``Commercially available off-the-shelf (COTS) 
item'' paragraph (1)(i) by removing ``Federal Acquisition Regulation'' 
and adding ``Federal Acquisition Regulation (FAR)'' in its place;
0
ii. By adding, in alphabetical order, the definitions of ``Critical 
component'' and ``Critical item'';
0
iii. In the definition of ``Domestic end product'' by revising the 
first sentence of paragraph (1)(ii)(A) introductory text;
0
iv. In the definition of ``Qualifying country end product'' by revising 
paragraph (2)(i) introductory text;
0
c. By revising paragraph (b);
0
d. In Alternate I--
0
i. By revising the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS) 
item'' paragraph (1)(i) by removing ``Federal Acquisition Regulation'' 
and adding ``Federal Acquisition Regulation (FAR)'' in its place;
0
B. By adding, in alphabetical order, the definitions of ``Critical 
component'' and ``Critical item'';
0
C. In the definition of ``Domestic end product'' by revising the first 
sentence of paragraph (1)(ii)(A) introductory text;
0
D. In the definition of ``Qualifying country end product'' by revising 
paragraph (2)(i) introductory text;
0
e. By adding Alternate II and Alternate III.
    The revisions and additions read as follows:


252.225-7001   Buy American and Balance of Payments Program.

* * * * *

Buy American and Balance of Payments Program--Basic (Date)

    (a) * * *
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means a domestic construction material or domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic end product means--
    (1) * * *
    (ii) * * *
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds 60 percent of the cost of all its components, except 
that the percentage will be 65 percent for items delivered in 
calendar years 2024 through 2028 and 75 percent for items delivered 
starting in calendar year 2029, unless an alternate percentage is 
established for a contract in accordance with FAR 25.101(d), or 
award is made before January 1, 2030, for a foreign end product that 
exceeds 55 percent domestic content (see Defense Federal Acquisition 
Regulation Supplement 225.103(b)(ii)). * * *
* * * * *
    Qualifying country end product means-- * * *
    (2) * * *
    (i) The cost of the following types of components exceeds 60 
percent of the cost of all its components, except that the 
percentage will be 65 percent for items delivered in calendar years 
2024 through 2028 and 75 percent for items delivered starting in 
calendar year 2029, unless an alternate percentage is established 
for a contract:
* * * * *
    (b) This clause implements 41 U.S.C. chapter 83, Buy American. 
In accordance with 41 U.S.C. 1907, the component test of the Buy 
American statute is waived for an end product that is a COTS item 
(see FAR 12.505(a)(1)). Unless otherwise specified, this clause 
applies to all line items in the contract.
* * * * *
    Alternate I. * * *

Buy American and Balance of Payments Program--Alternate I (Date)

    (a) * * *
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means a domestic construction material or domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic end product means--
    (1) * * *
    (ii) * * *
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds 60 percent of the cost of all its components, except 
that the percentage will be 65 percent for items delivered in 
calendar years 2024 through 2028 and 75 percent for items delivered

[[Page 37949]]

starting in calendar year 2029, unless an alternate percentage is 
established for a contract in accordance with FAR 25.101(d), or 
award is made before January 1, 2030, for a foreign end product that 
exceeds 55 percent domestic content (see Defense Federal Acquisition 
Regulation Supplement 225.103(b)(ii)). * * *
* * * * *
    Qualifying country end product means-- * * *
    (2) * * *
    (i) The cost of the following types of components exceeds 60 
percent of the cost of all its components, except that the 
percentage will be 65 percent for items delivered in calendar years 
2024 through 2028 and 75 percent for items delivered starting in 
calendar year 2029, unless an alternate percentage is established 
for a contract:
* * * * *
    Alternate II. As prescribed in 225.1101(2)(i) and (2)(iv), use 
the following clause, which includes, in the definitions of 
``domestic end product'' at paragraph (1)(ii)(A) and ``qualifying 
country end product'' at paragraph (2)(i), the domestic content 
threshold that will apply to the entire contract period of 
performance.

Buy American and Balance of Payments Program--Alternate II (Date)

    (a) Definitions. As used in this clause--
    Commercially available off-the-shelf (COTS) item--
    (1) Means any item of supply (including construction material) 
that is--
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' in section 2.101 of the Federal 
Acquisition Regulation (FAR));
    (ii) Sold in substantial quantities in the commercial 
marketplace; and
    (iii) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and
    (2) Does not include bulk cargo, as defined in 46 U.S.C. 
40102(4), such as agricultural products and petroleum products.
    Component means an article, material, or supply incorporated 
directly into an end product.
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means a domestic construction material or domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic end product means--
    (1) For an end product that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured end product mined or produced in the 
United States; or
    (ii) An end product manufactured in the United States if--
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds, for the entire period of performance for a contract 
awarded in: calendar year 2023, 60 percent of the cost of all its 
components; calendar years 2024 through 2028, 65 percent of the cost 
of all its components; or calendar year 2029 or later, 75 percent of 
the cost of all its components. The cost of components includes 
transportation costs to the place of incorporation into the end 
product and U.S. duty (whether or not a duty-free entry certificate 
is issued). Components of unknown origin are treated as foreign. 
Scrap generated, collected, and prepared for processing in the 
United States is considered domestic. A component is 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 for which the Government has determined that--
    (1) Sufficient and reasonably available commercial quantities of 
a satisfactory quality are not mined, produced, or manufactured in 
the United States; or
    (2) It is inconsistent with the public interest to apply the 
restrictions of the Buy American statute; or
    (B) The end product is a COTS item; or
    (2) For an end product that consists wholly or predominantly of 
iron or steel or a combination of both, an end product manufactured 
in the United States, if the cost of iron and steel not produced in 
the United States or a qualifying country constitutes less than 5 
percent of the cost of all the components used in the end product 
(produced in the United States or a qualifying country means that 
all manufacturing processes of the iron or steel must take place in 
the United States or a qualifying country, except metallurgical 
processes involving refinement of steel additives). The cost of iron 
and steel not produced in the United States or a qualifying country 
includes but is not limited to the cost of iron or steel mill 
products (such as bar, billet, slab, wire, plate, or sheet), 
castings, or forgings, not produced in the United States or a 
qualifying country, utilized in the manufacture of the end product 
and a good faith estimate of the cost of all iron or steel 
components not produced in the United States or a qualifying 
country, excluding COTS fasteners. Iron or steel components of 
unknown origin are treated as foreign. If the end product contains 
multiple components, the cost of all the materials used in such end 
product is calculated in accordance with the explanation of cost of 
components in paragraph (1)(ii)(A) of this definition.
    End product means those articles, materials, and supplies to be 
acquired under this contract for public use.
    ``Foreign end product'' means an end product other than a 
domestic end product.
    Predominantly of iron or steel or a combination of both means 
that the cost of the iron and steel content exceeds 50 percent of 
the total cost of all its components. The cost of iron and steel is 
the cost of the iron or steel mill products (such as bar, billet, 
slab, wire, plate, or sheet), castings, or forgings utilized in the 
manufacture of the product and a good faith estimate of the cost of 
iron or steel components excluding COTS fasteners.
    Qualifying country means a country with a reciprocal defense 
procurement memorandum of understanding or international agreement 
with the United States in which both countries agree to remove 
barriers to purchases of supplies produced in the other country or 
services performed by sources of the other country, and the 
memorandum or agreement complies, where applicable, with the 
requirements of section 36 of the Arms Export Control Act (22 U.S.C. 
2776) and with 10 U.S.C. 2457. Accordingly, the following are 
qualifying countries:

Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Greece
Israel
Italy
Japan
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Portugal
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland.

    Qualifying country component means a component mined, produced, 
or manufactured in a qualifying country.
    Qualifying country end product means--
    (1) An unmanufactured end product mined or produced in a 
qualifying country; or
    (2) An end product manufactured in a qualifying country if--
    (i) The cost of the following types of components exceeds, for 
the entire period of performance for a contract awarded in calendar 
year 2023, 60 percent of the cost of all its components; calendar 
years 2024 through 2028, 65 percent of the cost of all its 
components; or calendar year 2029 or later, 75 percent of the cost 
of all its components:
    (A) Components mined, produced, or manufactured in a qualifying 
country.
    (B) Components mined, produced, or manufactured in the United 
States.
    (C) Components of foreign origin of a class or kind for which 
the Government has determined that sufficient and reasonably 
available commercial quantities of a satisfactory quality are not 
mined, produced, or manufactured in the United States. Components of 
unknown origin are treated as foreign; or
    (ii) The end product is a COTS item.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
    United States means the 50 States, the District of Columbia, and 
outlying areas.

[[Page 37950]]

    (b) This clause implements 41 U.S.C. chapter 83, Buy American. 
In accordance with 41 U.S.C. 1907, the component test of the Buy 
American statute is waived for an end product that is a COTS item 
(see FAR 12.505(a)(1)). Unless otherwise specified, this clause 
applies to all line items in the contract.
    (c) The Contractor shall deliver only domestic end products 
unless, in its offer, it specified delivery of other end products in 
the Buy American--Balance of Payments Program Certificate provision 
of the solicitation. If the Contractor certified in its offer that 
it will deliver a qualifying country end product, the Contractor 
shall deliver a qualifying country end product or, at the 
Contractor's option, a domestic end product.
    (d) The contract price does not include duty for end products or 
components for which the Contractor will claim duty-free entry.

(End of clause)
    Alternate III. As prescribed in 225.1101(2)(i) and (2)(v), use 
the following clause, which includes, in the definitions of 
``domestic end product'' at paragraph (1)(ii)(A) and ``qualifying 
country end product'' at paragraph (2)(i), the domestic content 
threshold that will apply to the entire contract period of 
performance; adds ``South Caucasus/Central and South Asian (SC/CASA) 
state'' and ``South Caucasus/Central and South Asian (SC/CASA) state 
end product'' to paragraph (a); and uses different paragraphs (b) 
and (c) than the basic clause:

Buy American and Balance of Payments Program--Alternate III (Date)

    (a) Definitions. As used in this clause--
    Commercially available off-the-shelf (COTS) item--
    (1) Means any item of supply (including construction material) 
that is--
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' in section 2.101 of the Federal 
Acquisition Regulation (FAR));
    (ii) Sold in substantial quantities in the commercial 
marketplace; and
    (iii) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and
    (2) Does not include bulk cargo, as defined in 46 U.S.C. 
40102(4), such as agricultural products and petroleum products.
    Component means an article, material, or supply incorporated 
directly into an end product.
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means a domestic construction material or domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic end product means--
    (1) For an end product that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured end product mined or produced in the 
United States; or
    (ii) An end product manufactured in the United States if--
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds, for the entire period of performance for a contract 
awarded in: calendar year 2023, 60 percent of the cost of all its 
components; calendar years 2024 through 2028, 65 percent of the cost 
of all its components; or calendar year 2029 or later, 75 percent of 
the cost of all its components. The cost of components includes 
transportation costs to the place of incorporation into the end 
product and U.S. duty (whether or not a duty-free entry certificate 
is issued). Components of unknown origin are treated as foreign. 
Scrap generated, collected, and prepared for processing in the 
United States is considered domestic. A component is 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 for which the Government has determined that--
    (1) Sufficient and reasonably available commercial quantities of 
a satisfactory quality are not mined, produced, or manufactured in 
the United States; or
    (2) It is inconsistent with the public interest to apply the 
restrictions of the Buy American statute; or
    (B) The end product is a COTS item; or
    (2) For an end product that consists wholly or predominantly of 
iron or steel or a combination of both, an end product manufactured 
in the United States, if the cost of iron and steel not produced in 
the United States or a qualifying country constitutes less than 5 
percent of the cost of all the components used in the end product 
(produced in the United States or a qualifying country means that 
all manufacturing processes of the iron or steel must take place in 
the United States or a qualifying country, except metallurgical 
processes involving refinement of steel additives). The cost of iron 
and steel not produced in the United States or a qualifying country 
includes but is not limited to the cost of iron or steel mill 
products (such as bar, billet, slab, wire, plate, or sheet), 
castings, or forgings, not produced in the United States or a 
qualifying country, utilized in the manufacture of the end product 
and a good faith estimate of the cost of all iron or steel 
components not produced in the United States or a qualifying 
country, excluding COTS fasteners. Iron or steel components of 
unknown origin are treated as foreign. If the end product contains 
multiple components, the cost of all the materials used in such end 
product is calculated in accordance with the explanation of cost of 
components in paragraph (1)(ii)(A) of this definition.
    End product means those articles, materials, and supplies to be 
acquired under this contract for public use.
    Foreign end product means an end product other than a domestic 
end product.
    Predominantly of iron or steel or a combination of both means 
that the cost of the iron and steel content exceeds 50 percent of 
the total cost of all its components. The cost of iron and steel is 
the cost of the iron or steel mill products (such as bar, billet, 
slab, wire, plate, or sheet), castings, or forgings utilized in the 
manufacture of the product and a good faith estimate of the cost of 
iron or steel components excluding COTS fasteners.
    Qualifying country means a country with a reciprocal defense 
procurement memorandum of understanding or international agreement 
with the United States in which both countries agree to remove 
barriers to purchases of supplies produced in the other country or 
services performed by sources of the other country, and the 
memorandum or agreement complies, where applicable, with the 
requirements of section 36 of the Arms Export Control Act (22 U.S.C. 
2776) and with 10 U.S.C. 2457. Accordingly, the following are 
qualifying countries:

Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Greece
Israel
Italy
Japan
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Portugal
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland.

    Qualifying country component means a component mined, produced, 
or manufactured in a qualifying country.
    Qualifying country end product means--
    (1) An unmanufactured end product mined or produced in a 
qualifying country; or
    (2) An end product manufactured in a qualifying country if--
    (i) The cost of the following types of components exceeds, for 
the entire period of performance for a contract awarded in: calendar 
year 2023, 60 percent of the cost of all its components; calendar 
years 2024 through 2028, 65 percent of the cost of all its 
components; or calendar year 2029 or later, 75 percent of the cost 
of all its components:
    (A) Components mined, produced, or manufactured in a qualifying 
country.
    (B) Components mined, produced, or manufactured in the United 
States.
    (C) Components of foreign origin of a class or kind for which 
the Government has determined that sufficient and reasonably 
available commercial quantities of a satisfactory quality are not 
mined, produced,

[[Page 37951]]

or manufactured in the United States. Components of unknown origin 
are treated as foreign; or
    (ii) The end product is a COTS item.
    South Caucasus/Central and South Asian (SC/CASA) state means 
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 
Tajikistan, Turkmenistan, or Uzbekistan.
    South Caucasus/Central and South Asian (SC/CASA) state end 
product means an article that--
    (1) Is wholly the growth, product, or manufacture of an SC/CASA 
state; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in an SC/CASA state into a new and different article of 
commerce with a name, character, or use distinct from that of the 
article or articles from which it was transformed. The term refers 
to a product offered for purchase under a supply contract, but for 
purposes of calculating the value of the end product includes 
services (except transportation services) incidental to its supply, 
provided that the value of those incidental services does not exceed 
the value of the product itself.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    (b) This clause implements the Balance of Payments Program. 
Unless otherwise specified, this clause applies to all line items in 
the contract.
    (c) The Contractor shall deliver only domestic end products 
unless, in its offer, it specified delivery of other end products in 
the Buy American--Balance of Payments Program Certificate provision 
of the solicitation. If the Contractor certified in its offer that 
it will deliver a qualifying country end product or an SC/CASA state 
end product, the Contractor shall deliver a qualifying country end 
product, an SC/CASA state end product, or, at the Contractor's 
option, a domestic end product.
    (d) The contract price does not include duty for end products or 
components for which the Contractor will claim duty-free entry.


(End of clause)
0
14. Amend section 252.225-7035--
0
a. By revising the provision date;
0
b. In paragraph (a) by removing ````component,'''' and ``Buy American'' 
and adding ````component,'' ``critical component,'' ``critical 
item,'''' and ``252.225-7036, Buy American'' in their places, 
respectively;
0
c. By revising paragraph (c);
0
d. By adding ``(End of provision)'' at the end of the provision;
0
e. In Alternate I--
0
i. By revising the introductory text;
0
ii. By revising the provision date;
0
iii. In paragraph (a) by removing ````component,'''' and ``Buy 
American'' and adding ````component,'' ``critical component,'' 
``critical item,'''' and ``252.225-7036, Buy American'' in their 
places, respectively;
0
iv. Revising paragraph (c);
0
f. In Alternate II--
0
i. By revising the provision date;
0
ii. In paragraph (a) by removing ````component,'''' and ``Buy 
American'' and adding ````component,'' ``critical component,'' 
``critical item,'''' and ``252.225-7036, Buy American'' in their 
places, respectively;
0
iii. By revising paragraph (c);
0
g. In Alternate III--
0
i. By revising the provision date;
0
ii. In paragraph (a) by removing ````component,'''' and ``Buy 
American'' and adding ````component,'' ``critical component,'' 
``critical item,'''' and ``252.225-7036, Buy American'' in their 
places, respectively;
0
iii. By revising paragraph (c);
0
h. In Alternate IV--
0
i. By revising the provision date;
0
ii. In paragraph (a) by removing ````component,'''' and ``Buy 
American'' and adding ````component,'' ``critical component,'' 
``critical item,'''' and ``252.225-7036, Buy American'' in their 
places, respectively;
0
iii. Revising paragraph (c); and
0
i. In Alternate V--
0
i. By revising the provision date;
0
ii. In paragraph (a) by removing ````component,'''' and ``Buy 
American'' and adding ````component,'' ``critical component,'' 
``critical item,'''' and ``252.225-7036, Buy American'' in their 
places, respectively; and
0
iii. By revising paragraph (c).
    The revisions read as follows:


252.225-7035  Buy American--Free Trade Agreements--Balance of Payments 
Program Certificate.

* * * * *

Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate--Basic (Date)

* * * * *
    (c) Certifications and identification of country of origin.
    (1) For all line items subject to the Buy American--Free Trade 
Agreements--Balance of Payments Program--Basic clause of this 
solicitation, the Offeror certifies that--
    (i) Each end product, except the end products listed in 
paragraph (c)(2) of this provision, is a domestic end product;
    (ii) Each domestic end product listed in paragraph (c)(3) of 
this provision contains a critical component or a critical item; and
    (iii) Components of unknown origin are considered to have been 
mined, produced, or manufactured outside the United States or a 
qualifying country.
    (2) The Offeror shall identify all end products that are not 
domestic end products.
    (i) The Offeror certifies that the following supplies are 
qualifying country (except Australian) end products:

              (Line item No.)                    (Country of origin)
 

    (ii) The Offeror certifies that the following supplies are Free 
Trade Agreement country end products other than Bahrainian end 
products, Moroccan end products, Panamanian end products or Peruvian 
end products:

              (Line item No.)                    (Country of origin)
 

    (iii) The following supplies are other foreign end products, 
including end products manufactured in the United States that do not 
qualify as domestic end products. For those foreign end products 
that do not consist wholly or predominantly of iron or steel or a 
combination of both, the Offeror shall also indicate whether these 
foreign end products exceed 55 percent domestic content, except 
those that are COTS items. If the percentage of the domestic content 
is unknown, select ``no''.

------------------------------------------------------------------------
                                                          Exceeds 55%
          Line item No.            Country of origin   domestic content
                                      (if known)           (yes/no)
------------------------------------------------------------------------
 
 
 
------------------------------------------------------------------------

    (3) The Offeror shall list the line item numbers of domestic end 
products that contain a critical component or a critical item (see 
section 25.105 of the Federal Acquisition Regulation).

Line Item No.----------------------------------------------------------
[List as necessary]

(End of provision)

    Alternate I. As prescribed in 225.1101(9) and (9)(ii), use the 
following provision, which does not use the phrases ``Bahrainian end 
product,'' ``Free Trade Agreement country,'' ``Free Trade Agreement 
country end product,'' ``Moroccan end product,'' ``Panamanian end 
product,'' and ``Peruvian end products'' in paragraph (a); does not 
use ``Free Trade Agreement country end products other than 
Bahrainian end products, Moroccan end products, Panamanian end 
products, or Peruvian end products'' in paragraphs (b)(2) and 
(c)(2)(ii); does not use ``Australian or'' in paragraph (c)(2)(i); 
and includes ``that are mined, produced, or manufactured in the 
United States'' in paragraph (c)(2)(ii):

[[Page 37952]]

Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate--Alternate I (Date)

* * * * *
    (c) Certifications and identification of country of origin.
    (1) For all line items subject to the Buy American--Free Trade 
Agreements--Balance of Payments Program--Alternate I clause of this 
solicitation, the Offeror certifies that--
    (i) Each end product, except the end products listed in 
paragraph (c)(2) of this provision, is a domestic end product;
    (ii) Each domestic end product listed in paragraph (c)(3) of 
this provision contains a critical component or a critical item; and
    (iii) Components of unknown origin are considered to have been 
mined, produced, or manufactured outside the United States or a 
qualifying country.
    (2) The Offeror shall identify all end products that are not 
domestic end products.
    (i) The Offeror certifies that the following supplies are 
qualifying country end products:

              (Line item No.)                    (Country of origin)
 

    (ii) The following supplies are other foreign end products, 
including end products manufactured in the United States that do not 
qualify as domestic end products. For those foreign end products 
that do not consist wholly or predominantly of iron or steel or a 
combination of both, the Offeror shall also indicate whether these 
foreign end products exceed 55 percent domestic content, except 
those that are COTS items that are mined, produced, or manufactured 
in the United States. If the percentage of the domestic content is 
unknown, select ``no''.

------------------------------------------------------------------------
                                                          Exceeds 55%
          Line item No.            Country of origin   domestic content
                                      (if known)           (yes/no)
------------------------------------------------------------------------
 
 
 
------------------------------------------------------------------------

    (3) The Offeror shall list the line item numbers of domestic end 
products that contain a critical component or a critical item (see 
section 25.105 of the Federal Acquisition Regulation).

Line item No.----------------------------------------------------------
[List as necessary]
* * * * *

Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate--Alternate II (Date)

* * * * *
    (c) Certifications and identification of country of origin.
    (1) For all line items subject to the Buy American--Free Trade 
Agreements--Balance of Payments Program--Alternate II clause of this 
solicitation, the Offeror certifies that--
    (i) Each end product, except the end products listed in 
paragraph (c)(2) of this provision, is a domestic end product;
    (ii) Each domestic end product listed in paragraph (c)(3) of 
this provision contains a critical component or a critical item; and
    (iii) Components of unknown origin are considered to have been 
mined, produced, or manufactured outside the United States or a 
qualifying country.
    (2) The Offeror shall identify all end products that are not 
domestic end products.
    (i) The Offeror certifies that the following supplies are 
qualifying country (except Australian) or SC/CASA state end 
products:

              (Line item No.)                    (Country of origin)
 

    (ii) The Offeror certifies that the following supplies are Free 
Trade Agreement country end products other than Bahrainian end 
products, Moroccan end products, Panamanian end products, or 
Peruvian end products:

              (Line item No.)                    (Country of origin)
 

    (iii) The following supplies are other foreign end products, 
including end products manufactured in the United States that do not 
qualify as domestic end products. For those foreign end products 
that do not consist wholly or predominantly of iron or steel or a 
combination of both, the Offeror shall also indicate whether these 
foreign end products exceed 55 percent domestic content, except 
those that are COTS items. If the percentage of the domestic content 
is unknown, select ``no''.

------------------------------------------------------------------------
                                                          Exceeds 55%
          Line item No.            Country of origin   domestic content
                                      (if known)           (yes/no)
------------------------------------------------------------------------
 
 
 
------------------------------------------------------------------------

    (3) The Offeror shall list the line item numbers of domestic end 
products that contain a critical component or a critical item (see 
section 25.105 of the Federal Acquisition Regulation).

Line item No.----------------------------------------------------------
[List as necessary]
* * * * *

Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate--Alternate III (Date)

* * * * *
    (c) Certifications and identification of country of origin.
    (1) For all line items subject to the Buy American--Free Trade 
Agreements--Balance of Payments Program--Alternate III clause of 
this solicitation, the Offeror certifies that--
    (i) Each end product, except the end products listed in 
paragraph (c)(2) of this provision, is a domestic end product;
    (ii) Each domestic end product listed in paragraph (c)(3) of 
this provision contains a critical component or a critical item; and
    (iii) Components of unknown origin are considered to have been 
mined, produced, or manufactured outside the United States or a 
qualifying country.
    (2) The Offeror shall identify all end products that are not 
domestic end products.
    (i) The Offeror certifies that the following supplies are 
qualifying country or SC/CASA state end products:

              (Line item No.)                    (Country of origin)
 

    (ii) The Offeror certifies that the following supplies are Free 
Trade Agreement country end products other than Bahrainian end 
products, Moroccan end products, Panamanian end products, or 
Peruvian end products:

              (Line item No.)                    (Country of origin)
 

    (iii) The following supplies are other foreign end products, 
including end products manufactured in the United States that do not 
qualify as domestic end products. For those foreign end products 
that do not consist wholly or predominantly of iron or steel or a 
combination of both, the Offeror shall also indicate whether these 
foreign end products exceed 55 percent domestic content, except 
those that are COTS items. If the percentage of the domestic content 
is unknown, select ``no''.

[[Page 37953]]



------------------------------------------------------------------------
                                                          Exceeds 55%
          Line item No.            Country of origin   domestic content
                                      (if known)           (yes/no)
------------------------------------------------------------------------
 
 
 
------------------------------------------------------------------------

    (3) The Offeror shall list the line item numbers of domestic end 
products that contain a critical component or a critical item (see 
section 25.105 of the Federal Acquisition Regulation).

Line item No.----------------------------------------------------------
[List as necessary]
* * * * *

Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate--Alternate IV (Date)

* * * * *
    (c) Certifications and identification of country of origin.
    (1) For all line items subject to the Buy American--Free Trade 
Agreements--Balance of Payments Program--Alternate IV clause of this 
solicitation, the Offeror certifies that--
    (i) Each end product, except the end products listed in 
paragraph (c)(2) of this provision, is a domestic end product;
    (ii) Each domestic end product listed in paragraph (c)(3) of 
this provision contains a critical component or a critical item; and
    (iii) Components of unknown origin are considered to have been 
mined, produced, or manufactured outside the United States or a 
qualifying country.
    (2) The Offeror shall identify all end products that are not 
domestic end products.
    (i) The Offeror certifies that the following supplies are 
qualifying country (except Australian) end products:

              (Line item No.)                    (Country of origin)
 

    (ii) The Offeror certifies that the following supplies are Free 
Trade Agreement country end products other than Bahrainian end 
products, Korean end products, Moroccan end products, Panamanian end 
products, or Peruvian end products:

              (Line item No.)                    (Country of origin)
 

    (iii) The following supplies are other foreign end products, 
including end products manufactured in the United States that do not 
qualify as domestic end products. For those foreign end products 
that do not consist wholly or predominantly of iron or steel or a 
combination of both, the Offeror shall also indicate whether these 
foreign end products exceed 55 percent domestic content, except 
those that are COTS items. If the percentage of the domestic content 
is unknown, select ``no''.

------------------------------------------------------------------------
                                                          Exceeds 55%
          Line item No.            Country of origin   domestic content
                                      (if known)           (yes/no)
------------------------------------------------------------------------
 
 
 
------------------------------------------------------------------------

    (3) The Offeror shall list the line item numbers of domestic end 
products that contain a critical component or a critical item (see 
section 25.105 of the Federal Acquisition Regulation).

Line item No.----------------------------------------------------------
[List as necessary]
* * * * *

Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate--Alternate V (Date)

* * * * *
    (c) Certifications and identification of country of origin.
    (1) For all line items subject to the Buy American--Free Trade 
Agreements--Balance of Payments Program--Alternate V clause of this 
solicitation, the Offeror certifies that--
    (i) Each end product, except the end products listed in 
paragraph (c)(2) of this provision, is a domestic end product;
    (ii) Each domestic end product listed in paragraph (c)(3) of 
this provision contains a critical component or a critical item; and
    (iii) Components of unknown origin are considered to have been 
mined, produced, or manufactured outside the United States or a 
qualifying country.
    (2) The Offeror shall identify all end products that are not 
domestic end products.
    (i) The Offeror certifies that the following supplies are 
qualifying country (except Australian) or SC/CASA state end 
products:

              (Line item No.)                    (Country of origin)
 

    (ii) The Offeror certifies that the following supplies are Free 
Trade Agreement country end products other than Bahrainian end 
products, Korean end products, Moroccan end products, Panamanian end 
products, or Peruvian end products:

              (Line item No.)                    (Country of origin)
 

    (iii) The following supplies are other foreign end products, 
including end products manufactured in the United States that do not 
qualify as domestic end products. For those foreign end products 
that do not consist wholly or predominantly of iron or steel or a 
combination of both, the Offeror shall also indicate whether these 
foreign end products exceed 55 percent domestic content, except 
those that are COTS items. If the percentage of the domestic content 
is unknown, select ``no''.

------------------------------------------------------------------------
                                                          Exceeds 55%
          Line item No.            Country of origin   domestic content
                                      (if known)           (yes/no)
------------------------------------------------------------------------
 
 
 
------------------------------------------------------------------------

    (3) The Offeror shall list the line item numbers of domestic end 
products that contain a critical component or a critical item (see 
section 25.105 of the Federal Acquisition Regulation).

Line item No.----------------------------------------------------------
[List as necessary]
* * * * *
0
15. Amend section 252.225-7036--
0
a. By revising the clause date;
0
b. In paragraph (a)--
0
i. In the definition of ``Commercially available off-the-shelf (COTS) 
item'' paragraph (1)(i) by removing ``Federal Acquisition Regulation'' 
and adding ``Federal Acquisition Regulation (FAR)'' in its place;
0
ii. By adding, in alphabetical order, the definitions of ``Critical 
component'' and ``Critical item'';
0
iii. In the definition of ``Domestic end product'' by revising the 
first sentence of paragraph (1)(ii)(A) introductory text;
0
iv. In the definition of ``Qualifying country end product'' by revising 
paragraph (2)(i) introductory text;
0
c. In Alternate I--
0
i. By revising the clause date;
0
ii. In paragraph (a)--

[[Page 37954]]

0
A. In the definition of ``Commercially available off-the-shelf (COTS) 
item'' paragraph (1)(i) by removing ``Federal Acquisition Regulation'' 
and adding ``Federal Acquisition Regulation (FAR)'' in its place;
0
B. By adding, in alphabetical order, the definitions of ``Critical 
component'' and ``Critical item'';
0
C. In the definition of ``Domestic end product'' by revising the first 
sentence of paragraph (1)(ii)(A) introductory text;
0
D. In the definition of ``Qualifying country end product'' by revising 
paragraph (2)(i) introductory text;
0
iii. In paragraph (c) by removing ``qualifying country, or other'' and 
adding ``qualifying country or other'' in its place;
0
d. In Alternate II--
0
i. By revising the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS) 
item'' paragraph (1)(i) by removing ``Federal Acquisition Regulation'' 
and adding ``Federal Acquisition Regulation (FAR)'' in its place;
0
B. By adding, in alphabetical order, the definitions of ``Critical 
component'' and ``Critical item'';
0
C. In the definition of ``Domestic end product'' by revising the first 
sentence of paragraph (1)(ii)(A) introductory text and redesignating 
paragraph (1)(C) as paragraph (1)(B);
0
D. In the definition of ``Qualifying country end product'' revising 
paragraph (2)(i) introductory text;
0
e. In Alternate III--
0
i. By revising the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS) 
item'' in paragraph (1)(i) by removing ``Federal Acquisition 
Regulation'' and adding ``Federal Acquisition Regulation (FAR)'' in its 
place;
0
B. By adding, in alphabetical order, the definitions of ``Critical 
component'' and ``Critical item'';
0
C. In the definition of ``Domestic end product'' by revising the first 
sentence of paragraph (1)(ii)(A) introductory text;
0
D. In the definition ``Qualifying country end product'' by revising 
paragraph (2)(i) introductory text;
0
f. In Alternate IV--
0
i. By revising the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS) 
item'' paragraph (1)(i) by removing ``Federal Acquisition Regulation'' 
and adding ``Federal Acquisition Regulation (FAR)'' in its place;
0
B. By adding, in alphabetical order, the definitions of ``Critical 
component'' and ``Critical item'';
0
C. In the definition of ``Domestic end product'' by revising the first 
sentence of paragraph (1)(ii)(A) introductory text;
0
D. In the definition of ``Qualifying country end product'' by revising 
paragraph (2)(i) introductory text;
0
g. In Alternate V--
0
i. By revising the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS) 
item'' paragraph (1)(i) by removing ``Federal Acquisition Regulation'' 
and adding ``Federal Acquisition Regulation (FAR)'' in its place;
0
B. By adding, in alphabetical order, the definitions of ``Critical 
component'' and ``Critical item'';
0
C. In the definition of ``Domestic end product'' by revising the first 
sentence of paragraph (1)(ii)(A) introductory text;
0
D. In the definition of ``Qualifying country end product'' by revising 
paragraph (2)(i) introductory text; and
0
h. By adding Alternates VI through XI.
    The revisions and additions read as follows:


252.225-7036  Buy American--Free Trade Agreements--Balance of Payments 
Program.

* * * * *

Buy American--Free Trade Agreements--Balance of Payments Program--Basic 
(Date)

    (a) * * *
* * * * *
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic end product means--
    (1) * * *
    (ii) * * *
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds 60 percent of the cost of all its components, except 
that the percentage will be 65 percent for items delivered in 
calendar years 2024 through 2028 and 75 percent for items delivered 
starting in calendar year 2029, unless an alternate percentage is 
established for a contract in accordance with Defense Federal 
Acquisition Regulation Supplement (DFARS) 225.101(d); or award is 
made before January 1, 2030, for a foreign end product that exceeds 
55 percent domestic content (see DFARS 225.103(b)(ii)). * * *
* * * * *
    Qualifying country end product means-- * * *
    (2) * * *
    (i) The cost of the following types of components exceeds 60 
percent of the cost of all its components, except that the 
percentage will be 65 percent for items delivered in calendar years 
2024 through 2028 and 75 percent for items delivered starting in 
calendar year 2029, unless an alternate percentage is established 
for a contract: * * *
* * * * *
    Alternate I. * * *

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate I (Date)

    (a) * * *
* * * * *
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic end product means--
    (1) * * *
    (ii) * * *
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds 60 percent of the cost of all its components, except 
that the percentage will be 65 percent for items delivered in 
calendar years 2024 through 2028 and 75 percent for items delivered 
starting in calendar year 2029, unless an alternate percentage is 
established for a contract in accordance with Defense Federal 
Acquisition Regulation Supplement (DFARS) 225.101(d); or award is 
made before January 1, 2030, for a foreign end product that exceeds 
55 percent domestic content (see DFARS 225.103(b)(ii)). * * *
* * * * *
    Qualifying country end product means-- * * *
    (2) * * *
    (i) The cost of the following types of components exceeds 60 
percent of the cost of all its components, except that the 
percentage will be 65 percent for items delivered in calendar years 
2024 through 2028 and 75 percent for items delivered starting in 
calendar year 2029, unless an alternate percentage is established 
for a contract: * * *
* * * * *
    Alternate II. * * *

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate II (Date)

    (a) * * *
* * * * *
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic end product means--
    (1) * * *
    (ii) * * *

[[Page 37955]]

    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds 60 percent of the cost of all its components, except 
that the percentage will be 65 percent for items delivered in 
calendar years 2024 through 2028 and 75 percent for items delivered 
starting in calendar year 2029, unless an alternate percentage is 
established for a contract in accordance with Defense Federal 
Acquisition Regulation Supplement (DFARS) 225.101(d); or award is 
made before January 1, 2030, for a foreign end product that exceeds 
55 percent domestic content (see DFARS 225.103(b)(ii)). * * *
* * * * *
    Qualifying country end product means-- * * *
    (2) * * *
    (i) The cost of the following types of components exceeds 60 
percent of the cost of all its components, except that the 
percentage will be 65 percent for items delivered in calendar years 
2024 through 2028 and 75 percent for items delivered starting in 
calendar year 2029, unless an alternate percentage is established 
for a contract: * * *
* * * * *
    Alternate III. * * *

Buy American--Free Trade Agreements--Balance Of Payments Program--
Alternate III (Date)

    (a) * * *
* * * * *
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic end product means--
    (1) * * *
    (ii) * * *
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds 60 percent of the cost of all its components, except 
that the percentage will be 65 percent for items delivered in 
calendar years 2024 through 2028 and 75 percent for items delivered 
starting in calendar year 2029, unless an alternate percentage is 
established for a contract in accordance with Defense Federal 
Acquisition Regulation Supplement (DFARS) 225.101(d); or award is 
made before January 1, 2030, for a foreign end product that exceeds 
55 percent domestic content (see DFARS 225.103(b)(ii)). * * *
* * * * *
    Qualifying country end product means-- * * *
    (2) * * *
    (i) The cost of the following types of components exceeds 60 
percent of the cost of all its components, except that the 
percentage will be 65 percent for items delivered in calendar years 
2024 through 2028 and 75 percent for items delivered starting in 
calendar year 2029, unless an alternate percentage is established 
for a contract: * * *
* * * * *
    Alternate IV. * * *

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate IV (Date)

    (a) * * *
* * * * *
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic end product means--
    (1) * * *
    (ii) * * *
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds 60 percent of the cost of all its components, except 
that the percentage will be 65 percent for items delivered in 
calendar years 2024 through 2028 and 75 percent for items delivered 
starting in calendar year 2029, unless an alternate percentage is 
established for a contract in accordance with Defense Federal 
Acquisition Regulation Supplement (DFARS) 225.101(d); or award is 
made before January 1, 2030, for a foreign end product that exceeds 
55 percent domestic content (see DFARS 225.103(b)(ii)). * * *
* * * * *
    Qualifying country end product means-- * * *
    (2) * * *
    (i) The cost of the following types of components exceeds 60 
percent of the cost of all its components, except that the 
percentage will be 65 percent for items delivered in calendar years 
2024 through 2028 and 75 percent for items delivered starting in 
calendar year 2029, unless an alternate percentage is established 
for a contract: * * *
* * * * *
    Alternate V. * * *

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate V (Date)

    (a) * * *
* * * * *
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic end product means--
    (1) * * *
    (ii) * * *
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds 60 percent of the cost of all its components, except 
that the percentage will be 65 percent for items delivered in 
calendar years 2024 through 2028 and 75 percent for items delivered 
starting in calendar year 2029, unless an alternate percentage is 
established for a contract in accordance with Defense Federal 
Acquisition Regulation Supplement (DFARS) 225.101(d); or award is 
made before January 1, 2030, for a foreign end product that exceeds 
55 percent domestic content (see DFARS 225.103(b)(ii)). * * *
* * * * *
    Qualifying country end product means-- * * *
    (2) * * *
    (i) The cost of the following types of components exceeds 60 
percent of the cost of all its components, except that the 
percentage will be 65 percent for items delivered in calendar years 
2024 through 2028 and 75 percent for items delivered starting in 
calendar year 2029, unless an alternate percentage is established 
for a contract: * * *
* * * * *
    Alternate VI. As prescribed in 225.1101(10)(i) and (10)(i)(G), use 
the following clause, which includes, in the definitions of domestic 
end product at paragraph (1)(ii)(A) and qualifying country end product 
at paragraph (2)(i), the domestic content threshold that will apply to 
the entire contract period of performance:

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate VI (Date)

    (a) Definitions. As used in this clause--
    Bahrainian end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Bahrain; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Bahrain into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Commercially available off-the-shelf (COTS) item--
    (1) Means any item of supply (including construction material) 
that is--
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' in section 2.101 of the Federal 
Acquisition Regulation (FAR));
    (ii) Sold in substantial quantities in the commercial 
marketplace; and
    (iii) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and

[[Page 37956]]

    (2) Does not include bulk cargo, as defined in 46 U.S.C. 
40102(4), such as agricultural products and petroleum products.
    Component means an article, material, or supply incorporated 
directly into an end product.
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic end product means--
    (1) For an end product that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured end product mined or produced in the 
United States; or
    (ii) An end product manufactured in the United States if--
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds, for the entire period of performance for a contract 
awarded in: calendar year 2023, 60 percent of the cost of all its 
components; calendar years 2024 through 2028, 65 percent of the cost 
of all its components; or calendar year 2029 or later, 75 percent of 
the cost of all its components. The cost of components includes 
transportation costs to the place of incorporation into the end 
product and U.S. duty (whether or not a duty-free entry certificate 
is issued). Components of unknown origin are treated as foreign. 
Scrap generated, collected, and prepared for processing in the 
United States is considered domestic. A component is 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 for which the Government has determined that--
    (1) Sufficient and reasonably available commercial quantities of 
a satisfactory quality are not mined, produced, or manufactured in 
the United States; or
    (2) It is inconsistent with the public interest to apply the 
restrictions of the Buy American statute; or
    (B) The end product is a COTS item; or
    (2) For an end product that consists wholly or predominantly of 
iron or steel or a combination of both, an end product manufactured 
in the United States, if the cost of iron and steel not produced in 
the United States or a qualifying country constitutes less than 5 
percent of the cost of all the components used in the end product 
(produced in the United States or a qualifying country means that 
all manufacturing processes of the iron or steel must take place in 
the United States or a qualifying country, except metallurgical 
processes involving refinement of steel additives). The cost of iron 
and steel not produced in the United States or a qualifying country 
includes but is not limited to the cost of iron or steel mill 
products (such as bar, billet, slab, wire, plate, or sheet), 
castings, or forgings, not produced in the United States or a 
qualifying country, utilized in the manufacture of the end product 
and a good faith estimate of the cost of all iron or steel 
components not produced in the United States or a qualifying 
country, excluding COTS fasteners. Iron or steel components of 
unknown origin are treated as foreign. If the end product contains 
multiple components, the cost of all the materials used in such end 
product is calculated in accordance with the explanation of cost of 
components in paragraph (1)(ii)(A) of this definition.
    End product means those articles, materials, and supplies to be 
acquired under this contract for public use.
    Foreign end product means an end product other than a domestic 
end product.
    Free Trade Agreement country means Australia, Bahrain, Chile, 
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, 
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama, 
Peru, or Singapore.
    Free Trade Agreement country end product means an article that--
    (1) Is wholly the growth, product, or manufacture of a Free 
Trade Agreement country; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in a Free Trade Agreement country into a new and 
different article of commerce with a name, character, or use 
distinct from that of the article or articles from which it was 
transformed. The term refers to a product offered for purchase under 
a supply contract, but for purposes of calculating the value of the 
end product includes services (except transportation services) 
incidental to its supply, provided that the value of those 
incidental services does not exceed the value of the product itself.
    Moroccan end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Morocco; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Morocco into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Panamanian end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Panama; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Panama into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Peruvian end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Peru; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Peru into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Predominantly of iron or steel or a combination of both means 
that the cost of the iron and steel content exceeds 50 percent of 
the total cost of all its components. The cost of iron and steel is 
the cost of the iron or steel mill products (such as bar, billet, 
slab, wire, plate, or sheet), castings, or forgings utilized in the 
manufacture of the product and a good faith estimate of the cost of 
iron or steel components excluding COTS fasteners.
    Qualifying country means a country with a reciprocal defense 
procurement memorandum of understanding or international agreement 
with the United States in which both countries agree to remove 
barriers to purchases of supplies produced in the other country or 
services performed by sources of the other country, and the 
memorandum or agreement complies, where applicable, with the 
requirements of section 36 of the Arms Export Control Act (22 U.S.C. 
2776) and with 10 U.S.C. 2457. Accordingly, the following are 
qualifying countries:

Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Greece
Israel
Italy
Japan
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Portugal
Slovenia
Spain
Sweden
Switzerland

[[Page 37957]]

Turkey
United Kingdom of Great Britain and Northern Ireland

    Qualifying country component means a component mined, produced, 
or manufactured in a qualifying country.
    Qualifying country end product means--
    (1) An unmanufactured end product mined or produced in a 
qualifying country; or
    (2) An end product manufactured in a qualifying country if--
    (i) The cost of the following types of components exceeds, for 
the entire period of performance for a contract awarded in: calendar 
year 2023, 60 percent of the cost of all its components; calendar 
years 2024 through 2028, 65 percent of the cost of all its 
components; or calendar year 2029 or later, 75 percent of the cost 
of all its components:
    (A) Components mined, produced, or manufactured in a qualifying 
country.
    (B) Components mined, produced, or manufactured in the United 
States.
    (C) Components of foreign origin of a class or kind for which 
the Government has determined that sufficient and reasonably 
available commercial quantities of a satisfactory quality are not 
mined, produced, or manufactured in the United States. Components of 
unknown origin are treated as foreign; or
    (ii) The end product is a COTS item.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    (b) Unless otherwise specified, this clause applies to all items 
in the Schedule.
    (c) The Contractor shall deliver under this contract only 
domestic end products unless, in its offer, it specified delivery of 
qualifying country end products, Free Trade Agreement country end 
products other than Bahrainian end products, Moroccan end products, 
Panamanian end products, or Peruvian end products, or other foreign 
end products in the Buy American--Free Trade Agreements--Balance of 
Payments Program Certificate--Basic provision of the solicitation. 
If the Contractor certified in its offer that it will deliver a 
qualifying country end product or a Free Trade Agreement country end 
product other than a Bahrainian end product, a Moroccan end product, 
a Panamanian end product, or a Peruvian end product, the Contractor 
shall deliver a qualifying country end product, a Free Trade 
Agreement country end product other than a Bahrainian end product, a 
Moroccan end product, a Panamanian end product, or a Peruvian end 
product, or, at the Contractor's option, a domestic end product.
    (d) The contract price does not include duty for end products or 
components for which the Contractor will claim duty-free entry.


(End of clause)
    Alternate VII. As prescribed in 225.1101(10)(i) and (10)(i)(H), use 
the following clause, which includes, in the definitions of domestic 
end product at paragraph (1)(ii)(A) and qualifying country end product 
at paragraph (2)(i), the domestic content threshold that will apply to 
the entire contract period of performance and uses a different 
paragraph (c) than the basic clause:

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate VII (Date)

    (a) Definitions. As used in this clause--
    Bahrainian end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Bahrain; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Bahrain into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Commercially available off-the-shelf (COTS) item--
    (1) Means any item of supply (including construction material) 
that is--
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' in section 2.101 of the Federal 
Acquisition Regulation (FAR));
    (ii) Sold in substantial quantities in the commercial 
marketplace; and
    (iii) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and
    (2) Does not include bulk cargo, as defined in 46 U.S.C. 
40102(4), such as agricultural products and petroleum products.
    Component means an article, material, or supply incorporated 
directly into an end product.
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic end product means--
    (1) For an end product that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured end product mined or produced in the 
United States; or
    (ii) An end product manufactured in the United States if--
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds, for the entire period of performance for a contract 
awarded in: calendar year 2023, 60 percent of the cost of all its 
components; calendar years 2024 through 2028, 65 percent of the cost 
of all its components; or calendar year 2029 or later, 75 percent of 
the cost of all its components. The cost of components includes 
transportation costs to the place of incorporation into the end 
product and U.S. duty (whether or not a duty-free entry certificate 
is issued). Components of unknown origin are treated as foreign. 
Scrap generated, collected, and prepared for processing in the 
United States is considered domestic. A component is 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 for which the Government has determined that--
    (1) Sufficient and reasonably available commercial quantities of 
a satisfactory quality are not mined, produced, or manufactured in 
the United States; or
    (2) It is inconsistent with the public interest to apply the 
restrictions of the Buy American statute; or
    (B) The end product is a COTS item; or
    (2) For an end product that consists wholly or predominantly of 
iron or steel or a combination of both, an end product manufactured 
in the United States, if the cost of iron and steel not produced in 
the United States or a qualifying country constitutes less than 5 
percent of the cost of all the components used in the end product 
(produced in the United States or a qualifying country means that 
all manufacturing processes of the iron or steel must take place in 
the United States or a qualifying country, except metallurgical 
processes involving refinement of steel additives). The cost of iron 
and steel not produced in the United States or a qualifying country 
includes but is not limited to the cost of iron or steel mill 
products (such as bar, billet, slab, wire, plate, or sheet), 
castings, or forgings, not produced in the United States or a 
qualifying country, utilized in the manufacture of the end product 
and a good faith estimate of the cost of all iron or steel 
components not produced in the United States or a qualifying 
country, excluding COTS fasteners. Iron or steel components of 
unknown origin are treated as foreign. If the end product contains 
multiple components, the cost of all the materials used in such end 
product is calculated in accordance with the explanation of cost of 
components in paragraph (1)(ii)(A) of this definition.
    End product means those articles, materials, and supplies to be 
acquired under this contract for public use.
    ``Foreign end product'' means an end product other than a 
domestic end product.
    Free Trade Agreement country means Australia, Bahrain, Chile, 
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, 
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama, 
Peru, or Singapore.
    Free Trade Agreement country end product means an article that--
    (1) Is wholly the growth, product, or manufacture of a Free 
Trade Agreement country; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in a Free Trade Agreement country into a new and 
different article of commerce with a name, character, or use 
distinct from that

[[Page 37958]]

of the article or articles from which it was transformed. The term 
refers to a product offered for purchase under a supply contract, 
but for purposes of calculating the value of the end product 
includes services (except transportation services) incidental to its 
supply, provided that the value of those incidental services does 
not exceed the value of the product itself.
    Moroccan end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Morocco; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Morocco into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Panamanian end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Panama; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Panama into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Peruvian end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Peru; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Peru into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Predominantly of iron or steel or a combination of both means 
that the cost of the iron and steel content exceeds 50 percent of 
the total cost of all its components. The cost of iron and steel is 
the cost of the iron or steel mill products (such as bar, billet, 
slab, wire, plate, or sheet), castings, or forgings utilized in the 
manufacture of the product and a good faith estimate of the cost of 
iron or steel components excluding COTS fasteners.
    Qualifying country means a country with a reciprocal defense 
procurement memorandum of understanding or international agreement 
with the United States in which both countries agree to remove 
barriers to purchases of supplies produced in the other country or 
services performed by sources of the other country, and the 
memorandum or agreement complies, where applicable, with the 
requirements of section 36 of the Arms Export Control Act (22 U.S.C. 
2776) and with 10 U.S.C. 2457. Accordingly, the following are 
qualifying countries:

Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Greece
Israel
Italy
Japan
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Portugal
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland.

    Qualifying country component means a component mined, produced, 
or manufactured in a qualifying country.
    Qualifying country end product means--
    (1) An unmanufactured end product mined or produced in a 
qualifying country; or
    (2) An end product manufactured in a qualifying country if--
    (i) The cost of the following types of components exceeds, for 
the entire period of performance for a contract awarded in: calendar 
year 2023, 60 percent of the cost of all its components; calendar 
years 2024 through 2028, 65 percent of the cost of all its 
components; or calendar year 2029 or later, 75 percent of the cost 
of all its components:
    (A) Components mined, produced, or manufactured in a qualifying 
country.
    (B) Components mined, produced, or manufactured in the United 
States.
    (C) Components of foreign origin of a class or kind for which 
the Government has determined that sufficient and reasonably 
available commercial quantities of a satisfactory quality are not 
mined, produced, or manufactured in the United States. Components of 
unknown origin are treated as foreign; or
    (ii) The end product is a COTS item.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    (b) Unless otherwise specified, this clause applies to all items 
in the Schedule.
    (c) The Contractor shall deliver under this contract only 
domestic end products unless, in its offer, it specified delivery of 
qualifying country or other foreign end products in the Buy 
American--Free Trade Agreements--Balance of Payments Program 
Certificate--Alternate I provision of the solicitation. If the 
Contractor certified in its offer that it will deliver a qualifying 
country end product, the Contractor shall deliver a qualifying 
country end product or, at the Contractor's option, a domestic end 
product.
    (d) The contract price does not include duty for end products or 
components for which the Contractor will claim duty-free entry.


(End of clause)

    Alternate VIII. As prescribed in 225.1101(10)(i) and (10)(i)(I), 
use the following clause, which includes, in the definitions of 
domestic end product at paragraph (1)(ii)(A) and qualifying country end 
product at paragraph (2)(i), the domestic content threshold that will 
apply to the entire contract period of performance; adds South 
Caucasus/Central and South Asian (SC/CASA) state and South Caucasus/
Central and South Asian (SC/CASA) state end product to paragraph (a); 
and uses a different paragraph (c) than the basic clause:

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate VIII (Date)

    (a) Definitions. As used in this clause--
    Bahrainian end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Bahrain; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Bahrain into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Commercially available off-the-shelf (COTS) item--
    (1) Means any item of supply (including construction material) 
that is--
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' in section 2.101 of the Federal 
Acquisition Regulation (FAR));
    (ii) Sold in substantial quantities in the commercial 
marketplace; and
    (iii) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and

[[Page 37959]]

    (2) Does not include bulk cargo, as defined in 46 U.S.C. 
40102(4), such as agricultural products and petroleum products.
    Component means an article, material, or supply incorporated 
directly into an end product.
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic end product means--
    (1) For an end product that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured end product mined or produced in the 
United States; or
    (ii) An end product manufactured in the United States if--
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds, for the entire period of performance for a contract 
awarded in: calendar year 2023, 60 percent of the cost of all its 
components; calendar years 2024 through 2028, 65 percent of the cost 
of all its components; or calendar year 2029 or later, 75 percent of 
the cost of all its components. The cost of components includes 
transportation costs to the place of incorporation into the end 
product and U.S. duty (whether or not a duty-free entry certificate 
is issued). Components of unknown origin are treated as foreign. 
Scrap generated, collected, and prepared for processing in the 
United States is considered domestic. A component is 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 for which the Government has determined that--
    (1) Sufficient and reasonably available commercial quantities of 
a satisfactory quality are not mined, produced, or manufactured in 
the United States; or
    (2) It is inconsistent with the public interest to apply the 
restrictions of the Buy American statute; or
    (B) The end product is a COTS item; or
    (2) For an end product that consists wholly or predominantly of 
iron or steel or a combination of both, an end product manufactured 
in the United States, if the cost of iron and steel not produced in 
the United States or a qualifying country constitutes less than 5 
percent of the cost of all the components used in the end product 
(produced in the United States or a qualifying country means that 
all manufacturing processes of the iron or steel must take place in 
the United States or a qualifying country, except metallurgical 
processes involving refinement of steel additives). The cost of iron 
and steel not produced in the United States or a qualifying country 
includes but is not limited to the cost of iron or steel mill 
products (such as bar, billet, slab, wire, plate, or sheet), 
castings, or forgings, not produced in the United States or a 
qualifying country, utilized in the manufacture of the end product 
and a good faith estimate of the cost of all iron or steel 
components not produced in the United States or a qualifying 
country, excluding COTS fasteners. Iron or steel components of 
unknown origin are treated as foreign. If the end product contains 
multiple components, the cost of all the materials used in such end 
product is calculated in accordance with the explanation of cost of 
components in paragraph (1)(ii)(A) of this definition.
    End product means those articles, materials, and supplies to be 
acquired under this contract for public use.
    Foreign end product means an end product other than a domestic 
end product.
    Free Trade Agreement country means Australia, Bahrain, Chile, 
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, 
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama, 
Peru, or Singapore.
    Free Trade Agreement country end product means an article that--
    (1) Is wholly the growth, product, or manufacture of a Free 
Trade Agreement country; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in a Free Trade Agreement country into a new and 
different article of commerce with a name, character, or use 
distinct from that of the article or articles from which it was 
transformed. The term refers to a product offered for purchase under 
a supply contract, but for purposes of calculating the value of the 
end product includes services (except transportation services) 
incidental to its supply, provided that the value of those 
incidental services does not exceed the value of the product itself.
    Moroccan end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Morocco; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Morocco into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Panamanian end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Panama; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Panama into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Peruvian end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Peru; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Peru into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Predominantly of iron or steel or a combination of both means 
that the cost of the iron and steel content exceeds 50 percent of 
the total cost of all its components. The cost of iron and steel is 
the cost of the iron or steel mill products (such as bar, billet, 
slab, wire, plate, or sheet), castings, or forgings utilized in the 
manufacture of the product and a good faith estimate of the cost of 
iron or steel components excluding COTS fasteners.
    Qualifying country means a country with a reciprocal defense 
procurement memorandum of understanding or international agreement 
with the United States in which both countries agree to remove 
barriers to purchases of supplies produced in the other country or 
services performed by sources of the other country, and the 
memorandum or agreement complies, where applicable, with the 
requirements of section 36 of the Arms Export Control Act (22 U.S.C. 
2776) and with 10 U.S.C. 2457. Accordingly, the following are 
qualifying countries:

Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Greece
Israel
Italy
Japan
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Portugal
Slovenia
Spain
Sweden
Switzerland

[[Page 37960]]

Turkey
United Kingdom of Great Britain and Northern Ireland

    Qualifying country component means a component mined, produced, 
or manufactured in a qualifying country.
    Qualifying country end product means--
    (1) An unmanufactured end product mined or produced in a 
qualifying country; or
    (2) An end product manufactured in a qualifying country if--
    (i) The cost of the following types of components exceeds, for 
the entire period of performance for a contract awarded in: calendar 
year 2023, 60 percent of the cost of all its components; calendar 
years 2024 through 2028, 65 percent of the cost of all its 
components; or calendar year 2029 or later, 75 percent of the cost 
of all its components:
    (A) Components mined, produced, or manufactured in a qualifying 
country.
    (B) Components mined, produced, or manufactured in the United 
States.
    (C) Components of foreign origin of a class or kind for which 
the Government has determined that sufficient and reasonably 
available commercial quantities of a satisfactory quality are not 
mined, produced, or manufactured in the United States. Components of 
unknown origin are treated as foreign; or
    (ii) The end product is a COTS item.
    South Caucasus/Central and South Asian (SC/CASA) state means 
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 
Tajikistan, Turkmenistan, or Uzbekistan.
    South Caucasus/Central and South Asian (SC/CASA) state end 
product means an article that--
    (1) Is wholly the growth, product, or manufacture of an SC/CASA 
state; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in an SC/CASA state into a new and different article of 
commerce with a name, character, or use distinct from that of the 
article or articles from which it was transformed. The term refers 
to a product offered for purchase under a supply contract, but for 
purposes of calculating the value of the end product includes 
services (except transportation services) incidental to its supply, 
provided that the value of those incidental services does not exceed 
the value of the product itself.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    (b) Unless otherwise specified, this clause applies to all items 
in the Schedule.
    (c) The Contractor shall deliver under this contract only 
domestic end products unless, in its offer, it specified delivery of 
qualifying country end products, SC/CASA state end products, Free 
Trade Agreement country end products other than Bahrainian end 
products, Moroccan end products, Panamanian end products, or 
Peruvian end products, or other foreign end products in the Buy 
American--Free Trade Agreements--Balance of Payments Program 
Certificate--Alternate II provision of the solicitation. If the 
Contractor certified in its offer that it will deliver a qualifying 
country end product, SC/CASA state end products, or a Free Trade 
Agreement country end product other than a Bahrainian end product, a 
Moroccan end product, a Panamanian end product, or a Peruvian end 
product, the Contractor shall deliver a qualifying country end 
product, an SC/CASA state end product, a Free Trade Agreement 
country end product other than a Bahrainian end product, a Moroccan 
end product, a Panamanian end product, or a Peruvian end product or, 
at the Contractor's option, a domestic end product.
    (d) The contract price does not include duty for end products or 
components for which the Contractor will claim duty-free entry.


(End of clause)

    Alternate IX. As prescribed in 225.1101(10)(i) and (10)(i)(J), use 
the following clause, which includes in the definitions of domestic end 
product at paragraph (1)(ii)(A) and qualifying country end product at 
paragraph (2)(i) the domestic content threshold that will apply to the 
entire contract period of performance; adds South Caucasus/Central and 
South Asian (SC/CASA) state and South Caucasus/Central and South Asian 
(SC/CASA) state end product to paragraph (a); and uses a different 
paragraph (c) than the basic clause:

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate IX (Date)

    (a) Definitions. As used in this clause--
    Bahrainian end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Bahrain; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Bahrain into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Commercially available off-the-shelf (COTS) item--
    (1) Means any item of supply (including construction material) 
that is--
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' in section 2.101 of the Federal 
Acquisition Regulation (FAR));
    (ii) Sold in substantial quantities in the commercial 
marketplace; and
    (iii) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and
    (2) Does not include bulk cargo, as defined in 46 U.S.C. 
40102(4), such as agricultural products and petroleum products.
    Component means an article, material, or supply incorporated 
directly into an end product.
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic end product means--
    (1) For an end product that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured end product mined or produced in the 
United States; or
    (ii) An end product manufactured in the United States if--
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds, for the entire period of performance for a contract 
awarded in: calendar year 2023, 60 percent of the cost of all its 
components; calendar years 2024 through 2028, 65 percent of the cost 
of all its components; or calendar year 2029 or later, 75 percent of 
the cost of all its components. The cost of components includes 
transportation costs to the place of incorporation into the end 
product and U.S. duty (whether or not a duty-free entry certificate 
is issued). Components of unknown origin are treated as foreign. 
Scrap generated, collected, and prepared for processing in the 
United States is considered domestic. A component is 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 for which the Government has determined that--
    (1) Sufficient and reasonably available commercial quantities of 
a satisfactory quality are not mined, produced, or manufactured in 
the United States; or
    (2) It is inconsistent with the public interest to apply the 
restrictions of the Buy American statute; or
    (B) The end product is a COTS item; or
    (2) For an end product that consists wholly or predominantly of 
iron or steel or a combination of both, an end product manufactured 
in the United States, if the cost of iron and steel not produced in 
the United States or a qualifying country constitutes less than 5 
percent of the cost of all the components used in the end product 
(produced in the United States or a qualifying country means that 
all manufacturing processes of the iron and steel must take place in 
the United States or a qualifying country, except metallurgical 
processes involving refinement of steel additives). The cost of iron 
and steel not produced in the United States or a qualifying country 
includes but is not limited to the cost of iron or steel mill 
products (such as bar, billet, slab, wire, plate, or sheet), 
castings, or forgings, not produced in the United States or a 
qualifying country, utilized in the manufacture of the end product 
and a good

[[Page 37961]]

faith estimate of the cost of all iron or steel components not 
produced in the United States or a qualifying country, excluding 
COTS fasteners. Iron or steel components of unknown origin are 
treated as foreign. If the end product contains multiple components, 
the cost of all the materials used in such end product is calculated 
in accordance with the explanation of cost of components in 
paragraph (1)(ii)(A) of this definition.
    End product means those articles, materials, and supplies to be 
acquired under this contract for public use.
    Foreign end product means an end product other than a domestic 
end product.
    Free Trade Agreement country means Australia, Bahrain, Chile, 
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, 
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama, 
Peru, or Singapore.
    Free Trade Agreement country end product means an article that--
    (1) Is wholly the growth, product, or manufacture of a Free 
Trade Agreement country; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in a Free Trade Agreement country into a new and 
different article of commerce with a name, character, or use 
distinct from that of the article or articles from which it was 
transformed. The term refers to a product offered for purchase under 
a supply contract, but for purposes of calculating the value of the 
end product includes services (except transportation services) 
incidental to its supply, provided that the value of those 
incidental services does not exceed the value of the product itself.
    Moroccan end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Morocco; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Morocco into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Panamanian end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Panama; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Panama into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Peruvian end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Peru; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Peru into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Predominantly of iron or steel or a combination of both means 
that the cost of the iron and steel content exceeds 50 percent of 
the total cost of all its components. The cost of iron and steel is 
the cost of the iron or steel mill products (such as bar, billet, 
slab, wire, plate, or sheet), castings, or forgings utilized in the 
manufacture of the product and a good faith estimate of the cost of 
iron or steel components excluding COTS fasteners.
    Qualifying country means a country with a reciprocal defense 
procurement memorandum of understanding or international agreement 
with the United States in which both countries agree to remove 
barriers to purchases of supplies produced in the other country or 
services performed by sources of the other country, and the 
memorandum or agreement complies, where applicable, with the 
requirements of section 36 of the Arms Export Control Act (22 U.S.C. 
2776) and with 10 U.S.C. 2457. Accordingly, the following are 
qualifying countries:

Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Greece
Israel
Italy
Japan
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Portugal
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland

    Qualifying country component means a component mined, produced, 
or manufactured in a qualifying country.
    Qualifying country end product means--
    (1) An unmanufactured end product mined or produced in a 
qualifying country; or
    (2) An end product manufactured in a qualifying country if--
    (i) The cost of the following types of components exceeds, for 
the entire period of performance for a contract awarded in: calendar 
year 2023, 60 percent of the cost of all its components; calendar 
years 2024 through 2028, 65 percent of the cost of all its 
components; or calendar year 2029 or later, 75 percent of the cost 
of all its components:
    (A) Components mined, produced, or manufactured in a qualifying 
country.
    (B) Components mined, produced, or manufactured in the United 
States.
    (C) Components of foreign origin of a class or kind for which 
the Government has determined that sufficient and reasonably 
available commercial quantities of a satisfactory quality are not 
mined, produced, or manufactured in the United States. Components of 
unknown origin are treated as foreign; or
    (ii) The end product is a COTS item.
    South Caucasus/Central and South Asian (SC/CASA) state means 
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 
Tajikistan, Turkmenistan, or Uzbekistan.
    South Caucasus/Central and South Asian (SC/CASA) state end 
product means an article that--
    (1) Is wholly the growth, product, or manufacture of an SC/CASA 
state; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in an SC/CASA state into a new and different article of 
commerce with a name, character, or use distinct from that of the 
article or articles from which it was transformed. The term refers 
to a product offered for purchase under a supply contract, but for 
purposes of calculating the value of the end product includes 
services (except transportation services) incidental to its supply, 
provided that the value of those incidental services does not exceed 
the value of the product itself.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    (b) Unless otherwise specified, this clause applies to all items 
in the Schedule.
    (c) The Contractor shall deliver under this contract only 
domestic end products unless, in its offer, it specified delivery of 
qualifying country end products, SC/CASA state end products, or 
other foreign end products in the Buy American--Free Trade 
Agreements--Balance of Payments Program Certificate--Alternate III 
provision of the solicitation. If the Contractor certified in its 
offer that it will deliver a qualifying country end product or SC/
CASA state end products, the Contractor shall deliver a qualifying 
country end product, an SC/CASA state end product, or, at the 
Contractor's option, a domestic end product.
    (d) The contract price does not include duty for end products or 
components for

[[Page 37962]]

which the Contractor will claim duty-free entry.


(End of clause)

    Alternate X. As prescribed in 225.1101(10)(i) and (10)(i)(K), use 
the following clause, which includes, in the definitions of ``domestic 
end product'' at paragraph (1)(ii)(A) and ``qualifying country end 
product'' at paragraph (2)(i), the domestic content threshold that will 
apply to the entire contract period of performance; adds ``Korean end 
product'' to paragraph (a); and uses a different paragraph (c) than the 
basic clause:

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate X (Date)

    (a) Definitions. As used in this clause--
    Bahrainian end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Bahrain; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Bahrain into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Commercially available off-the-shelf (COTS) item--
    (1) Means any item of supply (including construction material) 
that is--
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' in section 2.101 of the Federal 
Acquisition Regulation (FAR));
    (ii) Sold in substantial quantities in the commercial 
marketplace; and
    (iii) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and
    (2) Does not include bulk cargo, as defined in 46 U.S.C. 
40102(4), such as agricultural products and petroleum products.
    Component means an article, material, or supply incorporated 
directly into an end product.
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic end product means--
    (1) For an end product that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured end product mined or produced in the 
United States; or
    (ii) An end product manufactured in the United States if--
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds, for the entire period of performance for a contract 
awarded in: calendar year 2023, 60 percent of the cost of all its 
components; calendar years 2024 through 2028, 65 percent of the cost 
of all its components; or calendar year 2029 or later, 75 percent of 
the cost of all its components. The cost of components includes 
transportation costs to the place of incorporation into the end 
product and U.S. duty (whether or not a duty-free entry certificate 
is issued). Components of unknown origin are treated as foreign. 
Scrap generated, collected, and prepared for processing in the 
United States is considered domestic. A component is 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 for which the Government has determined that--
    (1) Sufficient and reasonably available commercial quantities of 
a satisfactory quality are not mined, produced, or manufactured in 
the United States; or
    (2) It is inconsistent with the public interest to apply the 
restrictions of the Buy American statute; or
    (B) The end product is a COTS item; or
    (2) For an end product that consists wholly or predominantly of 
iron or steel or a combination of both, an end product manufactured 
in the United States, if the cost of iron and steel not produced in 
the United States or a qualifying country constitutes less than 5 
percent of the cost of all the components used in the end product 
(produced in the United States or a qualifying country means that 
all manufacturing processes of the iron or steel must take place in 
the United States or a qualifying country, except metallurgical 
processes involving refinement of steel additives). The cost of iron 
and steel not produced in the United States or a qualifying country 
includes but is not limited to the cost of iron or steel mill 
products (such as bar, billet, slab, wire, plate, or sheet), 
castings, or forgings, not produced in the United States or a 
qualifying country, utilized in the manufacture of the end product 
and a good faith estimate of the cost of all iron or steel 
components not produced in the United States or a qualifying 
country, excluding COTS fasteners. Iron or steel components of 
unknown origin are treated as foreign. If the end product contains 
multiple components, the cost of all the materials used in such end 
product is calculated in accordance with the explanation of cost of 
components in paragraph (1)(ii)(A) of this definition.
    End product means those articles, materials, and supplies to be 
acquired under this contract for public use.
    Foreign end product means an end product other than a domestic 
end product.
    Free Trade Agreement country means Australia, Bahrain, Chile, 
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, 
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama, 
Peru, or Singapore.
    Free Trade Agreement country end product means an article that--
    (1) Is wholly the growth, product, or manufacture of a Free 
Trade Agreement country; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in a Free Trade Agreement country into a new and 
different article of commerce with a name, character, or use 
distinct from that of the article or articles from which it was 
transformed. The term refers to a product offered for purchase under 
a supply contract, but for purposes of calculating the value of the 
end product includes services (except transportation services) 
incidental to its supply, provided that the value of those 
incidental services does not exceed the value of the product itself.
    Korean end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Korea; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Korea (Republic of) into a new and different article 
of commerce with a name, character, or use distinct from that of the 
article or articles from which it was transformed. The term refers 
to a product offered for purchase under a supply contract, but for 
purposes of calculating the value of the end product, includes 
services (except transportation services) incidental to its supply, 
provided that the value of those incidental services does not exceed 
the value of the product itself.
    Moroccan end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Morocco; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Morocco into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Panamanian end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Panama; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Panama into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided

[[Page 37963]]

that the value of those incidental services does not exceed the 
value of the product itself.
    Peruvian end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Peru; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Peru into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Predominantly of iron or steel or a combination of both means 
that the cost of the iron and steel content exceeds 50 percent of 
the total cost of all its components. The cost of iron and steel is 
the cost of the iron or steel mill products (such as bar, billet, 
slab, wire, plate, or sheet), castings, or forgings utilized in the 
manufacture of the product and a good faith estimate of the cost of 
iron or steel components excluding COTS fasteners.
    Qualifying country means a country with a reciprocal defense 
procurement memorandum of understanding or international agreement 
with the United States in which both countries agree to remove 
barriers to purchases of supplies produced in the other country or 
services performed by sources of the other country, and the 
memorandum or agreement complies, where applicable, with the 
requirements of section 36 of the Arms Export Control Act (22 U.S.C. 
2776) and with 10 U.S.C. 2457. Accordingly, the following are 
qualifying countries:

Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Greece
Israel
Italy
Japan
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Portugal
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland

    Qualifying country component means a component mined, produced, 
or manufactured in a qualifying country.
    Qualifying country end product means--
    (1) An unmanufactured end product mined or produced in a 
qualifying country; or
    (2) An end product manufactured in a qualifying country if--
    (i) The cost of the following types of components exceeds, for 
the entire period of performance for a contract awarded in: calendar 
year 2023, 60 percent of the cost of all its components; calendar 
years 2024 through 2028, 65 percent of the cost of all its 
components; or calendar year 2029 or later, 75 percent of the cost 
of all its components:
    (A) Components mined, produced, or manufactured in a qualifying 
country.
    (B) Components mined, produced, or manufactured in the United 
States.
    (C) Components of foreign origin of a class or kind for which 
the Government has determined that sufficient and reasonably 
available commercial quantities of a satisfactory quality are not 
mined, produced, or manufactured in the United States. Components of 
unknown origin are treated as foreign; or
    (ii) The end product is a COTS item.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    (b) Unless otherwise specified, this clause applies to all items 
in the Schedule.
    (c) The Contractor shall deliver under this contract only 
domestic end products unless, in its offer, it specified delivery of 
qualifying country end products, Free Trade Agreement country end 
products other than Bahrainian end products, Korean end products, 
Moroccan end products, Panamanian end products, or Peruvian end 
products, or other foreign end products in the Buy American--Free 
Trade Agreements--Balance of Payments Program Certificate--Alternate 
IV provision of the solicitation. If the Contractor certified in its 
offer that it will deliver a qualifying country end product or a 
Free Trade Agreement country end product other than a Bahrainian end 
product, a Korean end product, a Moroccan end product, a Panamanian 
end product, or a Peruvian end product, the Contractor shall deliver 
a qualifying country end product, a Free Trade Agreement country end 
product other than a Bahrainian end product, a Korean end product, a 
Moroccan end product, a Panamanian end product, or a Peruvian end 
product, or, at the Contractor's option, a domestic end product.
    (d) The contract price does not include duty for end products or 
components for which the Contractor will claim duty-free entry.


(End of clause)

    Alternate XI. As prescribed in 225.1101(10)(i) and (10)(i)(L), use 
the following clause, which includes, in the definitions of ``domestic 
end product'' at paragraph (1)(ii)(A) and ``qualifying country end 
product'' at paragraph (2)(i), the domestic content threshold that will 
apply to the entire contract period of performance; adds ``Korean end 
product,'' ``South Caucasus/Central and South Asian (SC/CASA) state,'' 
and ``South Caucasus/Central and South Asian (SC/CASA) state end 
product'' to paragraph (a); and uses a different paragraph (c) than the 
basic clause:

Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate XI (Date)

    (a) Definitions. As used in this clause--
    Bahrainian end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Bahrain; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Bahrain into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Commercially available off-the-shelf (COTS) item--
    (1) Means any item of supply (including construction material) 
that is--
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' in section 2.101 of the Federal 
Acquisition Regulation (FAR));
    (ii) Sold in substantial quantities in the commercial 
marketplace; and
    (iii) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and
    (2) Does not include bulk cargo, as defined in 46 U.S.C. 
40102(4), such as agricultural products and petroleum products.
    Component means an article, material, or supply incorporated 
directly into an end product.
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic end product means--
    (1) For an end product that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured end product mined or produced in the 
United States; or
    (ii) An end product manufactured in the United States if--
    (A) The cost of its qualifying country components and its 
components that are mined, produced, or manufactured in the United 
States exceeds, for the entire period of performance for a contract 
awarded in: calendar year 2023, 60 percent of the cost of

[[Page 37964]]

all its components; calendar years 2024 through 2028, 65 percent of 
the cost of all its components; or calendar year 2029 or later, 75 
percent of the cost of all its components. The cost of components 
includes transportation costs to the place of incorporation into the 
end product and U.S. duty (whether or not a duty-free entry 
certificate is issued). Components of unknown origin are treated as 
foreign. Scrap generated, collected, and prepared for processing in 
the United States is considered domestic. A component is 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 for which the Government has determined that--
    (1) Sufficient and reasonably available commercial quantities of 
a satisfactory quality are not mined, produced, or manufactured in 
the United States; or
    (2) It is inconsistent with the public interest to apply the 
restrictions of the Buy American statute; or
    (B) The end product is a COTS item; or
    (2) For an end product that consists wholly or predominantly of 
iron or steel or a combination of both, an end product manufactured 
in the United States, if the cost of iron and steel not produced in 
the United States or a qualifying country constitutes less than 5 
percent of the cost of all the components used in the end product 
(produced in the United States or a qualifying country means that 
all manufacturing processes of the iron or steel must take place in 
the United States or a qualifying country, except metallurgical 
processes involving refinement of steel additives). The cost of iron 
and steel not produced in the United States or a qualifying country 
includes but is not limited to the cost of iron or steel mill 
products (such as bar, billet, slab, wire, plate, or sheet), 
castings, or forgings, not produced in the United States or a 
qualifying country, utilized in the manufacture of the end product 
and a good faith estimate of the cost of all iron or steel 
components not produced in the United States or a qualifying 
country, excluding COTS fasteners. Iron or steel components of 
unknown origin are treated as foreign. If the end product contains 
multiple components, the cost of all the materials used in such end 
product is calculated in accordance with the explanation of cost of 
components in paragraph (1)(ii)(A) of this definition.
    End product means those articles, materials, and supplies to be 
acquired under this contract for public use.
    Foreign end product means an end product other than a domestic 
end product.
    Free Trade Agreement country means Australia, Bahrain, Chile, 
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, 
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama, 
Peru, or Singapore.
    Free Trade Agreement country end product means an article that--
    (1) Is wholly the growth, product, or manufacture of a Free 
Trade Agreement country; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in a Free Trade Agreement country into a new and 
different article of commerce with a name, character, or use 
distinct from that of the article or articles from which it was 
transformed. The term refers to a product offered for purchase under 
a supply contract, but for purposes of calculating the value of the 
end product includes services (except transportation services) 
incidental to its supply, provided that the value of those 
incidental services does not exceed the value of the product itself.
    Korean end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Korea; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Korea (Republic of) into a new and different article 
of commerce with a name, character, or use distinct from that of the 
article or articles from which it was transformed. The term refers 
to a product offered for purchase under a supply contract, but for 
purposes of calculating the value of the end product, includes 
services (except transportation services) incidental to its supply, 
provided that the value of those incidental services does not exceed 
the value of the product itself.
    Moroccan end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Morocco; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Morocco into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Panamanian end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Panama; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Panama into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    Peruvian end product means an article that--
    (1) Is wholly the growth, product, or manufacture of Peru; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Peru into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    ``Predominantly of iron or steel or a combination of both'' 
means that the cost of the iron and steel content exceeds 50 percent 
of the total cost of all its components. The cost of iron and steel 
is the cost of the iron or steel mill products (such as bar, billet, 
slab, wire, plate, or sheet), castings, or forgings utilized in the 
manufacture of the product and a good faith estimate of the cost of 
iron or steel components excluding COTS fasteners.
    Qualifying country means a country with a reciprocal defense 
procurement memorandum of understanding or international agreement 
with the United States in which both countries agree to remove 
barriers to purchases of supplies produced in the other country or 
services performed by sources of the other country, and the 
memorandum or agreement complies, where applicable, with the 
requirements of section 36 of the Arms Export Control Act (22 U.S.C. 
2776) and with 10 U.S.C. 2457. Accordingly, the following are 
qualifying countries:

Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Greece
Israel
Italy
Japan
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Portugal
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland.

    Qualifying country component means a component mined, produced, 
or manufactured in a qualifying country.
    Qualifying country end product means--
    (1) An unmanufactured end product mined or produced in a 
qualifying country; or
    (2) An end product manufactured in a qualifying country if--
    (i) The cost of the following types of components exceeds, for 
the entire period of

[[Page 37965]]

performance for a contract awarded in: calendar year 2023, 60 
percent of the cost of all its components; calendar years 2024 
through 2028, 65 percent of the cost of all its components; or 
calendar year 2029 or later, 75 percent of the cost of all its 
components:
    (A) Components mined, produced, or manufactured in a qualifying 
country.
    (B) Components mined, produced, or manufactured in the United 
States.
    (C) Components of foreign origin of a class or kind for which 
the Government has determined that sufficient and reasonably 
available commercial quantities of a satisfactory quality are not 
mined, produced, or manufactured in the United States. Components of 
unknown origin are treated as foreign; or
    (ii) The end product is a COTS item.
    South Caucasus/Central and South Asian (SC/CASA) state means 
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 
Tajikistan, Turkmenistan, or Uzbekistan.
    South Caucasus/Central and South Asian (SC/CASA) state end 
product means an article that--
    (1) Is wholly the growth, product, or manufacture of an SC/CASA 
state; or
    (2) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in an SC/CASA state into a new and different article of 
commerce with a name, character, or use distinct from that of the 
article or articles from which it was transformed. The term refers 
to a product offered for purchase under a supply contract, but for 
purposes of calculating the value of the end product, includes 
services (except transportation services) incidental to its supply, 
provided that the value of those incidental services does not exceed 
the value of the product itself.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    (b) Unless otherwise specified, this clause applies to all items 
in the Schedule.
    (c) The Contractor shall deliver under this contract only 
domestic end products unless, in its offer, it specified delivery of 
qualifying country end products, SC/CASA state end products, Free 
Trade Agreement country end products other than Bahrainian end 
products, Korean end products, Moroccan end products, Panamanian end 
products, or Peruvian end products, or other foreign end products in 
the Buy American--Free Trade Agreements--Balance of Payments Program 
Certificate--Alternate V provision of the solicitation. If the 
Contractor certified in its offer that it will deliver a qualifying 
country end product, SC/CASA state end products, or a Free Trade 
Agreement country end product other than a Bahrainian end product, a 
Korean end product, a Moroccan end product, a Panamanian end 
product, or a Peruvian end product, the Contractor shall deliver a 
qualifying country end product, an SC/CASA state end product, a Free 
Trade Agreement country end product other than a Bahrainian end 
product, a Korean end product, a Moroccan end product, a Panamanian 
end product, or a Peruvian end product or, at the Contractor's 
option, a domestic end product.
    (d) The contract price does not include duty for end products or 
components for which the Contractor will claim duty-free entry.


(End of clause)
0
16. Amend section 252.225-7044--
0
a. By revising the clause title and date;
0
b. In paragraph (a)--
0
i. In the definition of ``Commercially available off-the-shelf (COTS) 
item'' in paragraph (1)(i) by removing ``Federal Acquisition 
Regulation'' and adding ``Federal Acquisition Regulation (FAR)'' in its 
place;
0
ii. By adding, in alphabetical order, the definitions of ``Critical 
component'' and ``Critical item'';
0
iii. In the definition of ``Domestic construction material'' by 
revising the first sentence of paragraph (1)(ii)(A);
0
c. In Alternate I--
0
i. By revising the clause title and date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS) 
item'' in paragraph (1)(i) by removing ``Federal Acquisition 
Regulation'' and adding ``Federal Acquisition Regulation (FAR)'' in its 
place;
0
B. By adding, in alphabetical order, the definitions of ``Critical 
component'' and ``Critical item'';
0
C. In the definition of ``Domestic construction material'' by revising 
the first sentence of paragraph (1)(ii)(A); and
0
d. By adding Alternates II and III.
    The revisions and additions read as follows:


252.225-7044   Balance of Payments Program--Construction Material.

* * * * *

Balance of Payments Program--Construction Material--Basic (Date)

    (a) * * *
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic construction material means--
    (1) * * *
    (ii) * * *
    (A) The cost of its components mined, produced, or manufactured 
in the United States exceeds 60 percent of the cost of all its 
components, except that the percentage will be 65 percent for items 
delivered in calendar years 2024 through 2028 and 75 percent for 
items delivered starting in calendar year 2029, unless an alternate 
percentage is established for a contract in accordance with FAR 
25.201(c). * * *
* * * * *

    Alternate I. * * *

Balance of Payments Program--Construction Material--Alternate I (Date)

    (a) * * *
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic construction material means--
    (1) * * *
    (ii) * * *
    (A) The cost of its components mined, produced, or manufactured 
in the United States exceeds 60 percent of the cost of all its 
components, except that the percentage will be 65 percent for items 
delivered in calendar years 2024 through 2028 and 75 percent for 
items delivered starting in calendar year 2029, unless an alternate 
percentage is established for a contract in accordance with FAR 
25.201(c). * * *
* * * * *

    Alternate II. As prescribed in 225.7503(a) and (a)(3), use the 
following clause, which includes, in the definition of ``domestic 
construction material'' at paragraph (1)(ii)(A), the domestic content 
threshold that will apply to the entire contract period of performance:

Balance of Payments Program--Construction Material--Alternate II (Date)

    (a) Definitions. As used in this clause--
    Commercially available off-the-shelf (COTS) item--
    (1) Means any item of supply (including construction material) 
that is--
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' in section 2.101 of the Federal 
Acquisition Regulation (FAR));
    (ii) Sold in substantial quantities in the commercial 
marketplace; and
    (iii) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and
    (2) Does not include bulk cargo, as defined in 46 U.S.C. 
40102(4), such as agricultural products and petroleum products.
    Component means any article, material, or supply incorporated 
directly into construction material.
    Construction material means an article, material, or supply 
brought to the construction site by the Contractor or a 
subcontractor for incorporation into the building or work. The term 
also includes an item brought to the site preassembled from 
articles, materials, or supplies. However, emergency life safety 
systems, such as emergency lighting, fire alarm, and audio 
evacuation systems, that are discrete systems incorporated into a 
public building or work and that are produced as complete systems, 
are evaluated as a single and distinct construction material 
regardless of when or how the individual parts or components of 
those systems are delivered to the

[[Page 37966]]

construction site. Materials purchased directly by the Government 
are supplies, not construction material.
    Cost of components means--
    (1) For components purchased by the Contractor, the acquisition 
cost, including transportation costs to the place of incorporation 
into the end product (whether or not such costs are paid to a 
domestic firm), and any applicable duty (whether or not a duty-free 
entry certificate is issued); or
    (2) For components manufactured by the Contractor, all costs 
associated with the manufacture of the component, including 
transportation costs as described in paragraph (1) of this 
definition, plus allocable overhead costs, but excluding profit. 
Cost of components does not include any costs associated with the 
manufacture of the construction material.
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic construction material means--
    (1) For construction material that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured construction material mined or produced in 
the United States; or
    (ii) A construction material manufactured in the United States, 
if--
    (A) The cost of its components mined, produced, or manufactured 
in the United States exceeds, for the entire period of performance 
for a contract awarded in: calendar year 2023, 60 percent of the 
cost of all its components; calendar years 2024 through 2028, 65 
percent of the cost of all its components; or calendar year 2029 or 
later, 75 percent of the cost of all its components. Components of 
foreign origin of the same class or kind for which nonavailability 
determinations have been made are treated as domestic. Components of 
unknown origin are treated as foreign; or
    (B) The construction material is a COTS item; or
    (2) For construction material that consists wholly or 
predominantly of iron or steel or a combination of both, a 
construction material manufactured in the United States if the cost 
of iron and steel not produced in the United States (excluding 
fasteners) as estimated in good faith by the contractor, constitutes 
less than 5 percent of the cost of all the components used in such 
construction material (produced in the United States means that all 
manufacturing processes of the iron or steel must take place in the 
United States, except metallurgical processes involving refinement 
of steel additives). The cost of iron and steel not produced in the 
United States includes but is not limited to the cost of iron or 
steel mill products (such as bar, billet, slab, wire, plate, or 
sheet), castings, or forgings, not produced in the United States, 
utilized in the manufacture of the end product and a good faith 
estimate of the cost of all iron or steel components not produced in 
the United States, excluding COTS fasteners. Iron or steel 
components of unknown origin are treated as foreign. If the 
construction material contains multiple components, the cost of all 
the materials used in such construction material is calculated in 
accordance with the definition of ``cost of components'' in this 
clause.
    Predominantly of iron or steel or a combination of both means 
that the cost of the iron and steel content exceeds 50 percent of 
the total cost of all its components. The cost of iron and steel is 
the cost of the iron or steel mill products (such as bar, billet, 
slab, wire, plate, or sheet), castings, or forgings utilized in the 
manufacture of the product and a good faith estimate of the cost of 
iron or steel components excluding COTS fasteners.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    (b) Domestic preference. This clause implements the Balance of 
Payments Program by providing a preference for domestic construction 
material. The Contractor shall use only domestic construction 
material in performing this contract, except for--
    (1) Construction material valued at or below the simplified 
acquisition threshold in FAR part 2;
    (2) Information technology that is a commercial product; or
    (3) The construction material or components listed by the 
Government as follows:
    [Contracting Officer to list applicable excepted materials or 
indicate ``none''].


(End of clause)

    Alternate III. As prescribed in 225.7503(a) and (a)(4), use the 
following clause, which includes, in the definition of ``domestic 
construction material'' at paragraph (1)(ii)(A), the domestic content 
threshold that will apply to the entire period of performance; adds 
definitions for ``South Caucasus/Central and South Asian (SC/CASA) 
state'' and ``SC/CASA state construction material'' to paragraph (a); 
and uses ``domestic construction material or SC/CASA state construction 
material'' instead of ``domestic construction material'' in the second 
sentence of paragraph (b):

Balance of Payments Program--Construction Material--Alternate III 
(Date)

    (a) Definitions. As used in this clause--
    Commercially available off-the-shelf (COTS) item--
    (1) Means any item of supply (including construction material) 
that is--
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' in section 2.101 of the Federal 
Acquisition Regulation (FAR));
    (ii) Sold in substantial quantities in the commercial 
marketplace; and
    (iii) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and
    (2) Does not include bulk cargo, as defined in 46 U.S.C. 
40102(4), such as agricultural products and petroleum products.
    Component means any article, material, or supply incorporated 
directly into construction material.
    Construction material means an article, material, or supply 
brought to the construction site by the Contractor or a 
subcontractor for incorporation into the building or work. The term 
also includes an item brought to the site preassembled from 
articles, materials, or supplies. However, emergency life safety 
systems, such as emergency lighting, fire alarm, and audio 
evacuation systems, that are discrete systems incorporated into a 
public building or work and that are produced as complete systems, 
are evaluated as a single and distinct construction material 
regardless of when or how the individual parts or components of 
those systems are delivered to the construction site. Materials 
purchased directly by the Government are supplies, not construction 
material.
    Cost of components means--
    (1) For components purchased by the Contractor, the acquisition 
cost, including transportation costs to the place of incorporation 
into the end product (whether or not such costs are paid to a 
domestic firm), and any applicable duty (whether or not a duty-free 
entry certificate is issued); or
    (2) For components manufactured by the Contractor, all costs 
associated with the manufacture of the component, including 
transportation costs as described in paragraph (1) of this 
definition, plus allocable overhead costs, but excluding profit. 
Cost of components does not include any costs associated with the 
manufacture of the construction material.
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Domestic construction material means--
    (1) For construction material that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured construction material mined or produced in 
the United States; or
    (ii) A construction material manufactured in the United States, 
if--
    (A) The cost of its components mined, produced, or manufactured 
in the United States exceeds, for the entire period of performance 
for a contract awarded in: calendar year 2023, 60 percent of the 
cost of all its components; calendar years 2024 through 2028, 65 
percent of the cost of all its components; or calendar year 2029 or 
later, 75 percent of the cost of all its components. Components of 
foreign origin of the same class or kind for which nonavailability 
determinations have been made are treated as domestic. Components of 
unknown origin are treated as foreign; or

[[Page 37967]]

    (B) The construction material is a COTS item; or
    (2) For construction material that consists wholly or 
predominantly of iron or steel or a combination of both, a 
construction material manufactured in the United States if the cost 
of iron and steel not produced in the United States (excluding 
fasteners) as estimated in good faith by the contractor, constitutes 
less than 5 percent of the cost of all the components used in such 
construction material (produced in the United States means that all 
manufacturing processes of the iron or steel must take place in the 
United States, except metallurgical processes involving refinement 
of steel additives). The cost of iron and steel not produced in the 
United States includes but is not limited to the cost of iron or 
steel mill products (such as bar, billet, slab, wire, plate, or 
sheet), castings, or forgings, not produced in the United States, 
utilized in the manufacture of the construction material and a good 
faith estimate of the cost of all iron or steel components not 
produced in the United States, excluding COTS fasteners. Iron or 
steel components of unknown origin are treated as foreign. If the 
construction material contains multiple components, the cost of all 
the materials used in such construction material is calculated in 
accordance with the definition of ``cost of components'' in this 
clause.
    Predominantly of iron or steel or a combination of both means 
that the cost of the iron and steel content exceeds 50 percent of 
the total cost of all its components. The cost of iron and steel is 
the cost of the iron or steel mill products (such as bar, billet, 
slab, wire, plate, or sheet), castings, or forgings utilized in the 
manufacture of the product and a good faith estimate of the cost of 
iron or steel components excluding COTS fasteners.
    South Caucasus/Central and South Asian (SC/CASA) state means 
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 
Tajikistan, Turkmenistan, or Uzbekistan.
    SC/CASA state construction material means construction material 
that--
    (1) Is wholly the growth, product, or manufacture of an SC/CASA 
state; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country, has been 
substantially transformed in an SC/CASA state into a new and 
different construction material distinct from the material from 
which it was transformed.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    (b) Domestic preference. This clause implements the Balance of 
Payments Program by providing a preference for domestic construction 
material. The Contractor shall use only domestic construction 
material or SC/CASA state construction material in performing this 
contract, except for--
    (1) Construction material valued at or below the simplified 
acquisition threshold in FAR part 2;
    (2) Information technology that is a commercial product; or
    (3) The construction material or components listed by the 
Government as follows:
    [Contracting Officer to list applicable excepted materials or 
indicate ``none''].


(End of clause)
0
17. Amend section 252.225-7045--
0
a. By revising the clause date;
0
b. In paragraph (a)--
0
i. In the definition of ``Commercially available off-the-shelf (COTS) 
item'' in paragraph (1)(i) by removing ``Federal Acquisition 
Regulation'' and adding ``Federal Acquisition Regulation (FAR)'' in its 
place;
0
ii. By adding, in alphabetical order, the definitions of ``Critical 
component'' and ``Critical item'';
0
iii. In the definition of ``Domestic construction material'' by 
revising the first sentence of paragraph (1)(ii)(A);
0
c. In Alternate I--
0
i. By revising the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS) 
item'' in paragraph (1)(i) by removing ``Federal Acquisition 
Regulation'' and adding ``Federal Acquisition Regulation (FAR)'' in its 
place;
0
B. By adding, in alphabetical order, the definitions of ``Critical 
component'' and ``Critical item'';
0
C. In the definition of ``Domestic construction material'' by revising 
the first sentence of paragraph (1)(ii)(A);
0
d. In Alternate II--
0
i. By revising the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS) 
item'' in paragraph (1)(i) by removing ``Federal Acquisition 
Regulation'' and adding ``Federal Acquisition Regulation (FAR)'' in its 
place;
0
B. By adding, in alphabetical order, the definitions of ``Critical 
component'' and ``Critical item'';
0
C. In the definition of ``Domestic construction material'' by revising 
the first sentence of paragraph (1)(ii)(A);
0
e. In Alternate III--
0
i. By revising the clause date;
0
ii In paragraph (a)--
0
A. In the definition of ``Commercially available off-the-shelf (COTS) 
item'' in paragraph (1)(i) by removing ``Federal Acquisition 
Regulation'' and adding ``Federal Acquisition Regulation (FAR)'' in its 
place;
0
B. By adding, in alphabetical order, the definitions of ``Critical 
component'' and ``Critical item'';
0
C. In the definition of ``Domestic construction material'' by revising 
the first sentence of paragraph (1)(ii)(A); and
0
f. By adding Alternates IV through VII.
    The revisions and additions read as follows:


252.225-7045   Balance of Payments Program--Construction Material Under 
Trade Agreements.

* * * * *

Balance of Payments Program--Construction Material Under Trade 
Agreements--Basic (Date)

    (a) * * *
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
* * * * *

    Domestic construction material means--
    (1) * * *
    (ii) * * *
    (A) The cost of its components mined, produced, or manufactured in 
the United States exceeds 60 percent of the cost of all its components, 
except that the percentage will be 65 percent for items delivered in 
calendar years 2024 through 2028 and 75 percent for items delivered 
starting in calendar year 2029, unless an alternate percentage is 
established for a contract in accordance with FAR 25.201(c). * * *
* * * * *
    Alternate I. * * *

Balance of Payments Program--Construction Material Under Trade 
Agreements--Alternate I (Date)

    (a) * * *
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
* * * * *
    Domestic construction material means--
    (1) * * *
    (ii) * * *
    (A) The cost of its components mined, produced, or manufactured 
in the United States exceeds 60 percent of the cost of all its 
components, except that the percentage will be 65 percent for items 
delivered in calendar years 2024 through 2028 and 75 percent for 
items delivered starting in calendar year 2029, unless an alternate 
percentage is established for a contract in accordance with FAR 
25.201(c). * * *
* * * * *

    Alternate II. * * *

Balance of Payments Program--Construction Material Under Trade 
Agreements--Alternate II (Date)

    (a) * * *
    Critical component means a component that is mined, produced, or 
manufactured in

[[Page 37968]]

the United States and deemed critical to the U.S. supply chain. The 
list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
* * * * *
    Domestic construction material means--
    (1) * * *
    (ii) * * *
    (A) The cost of its components mined, produced, or manufactured 
in the United States exceeds 60 percent of the cost of all its 
components, except that the percentage will be 65 percent for items 
delivered in calendar years 2024 through 2028 and 75 percent for 
items delivered starting in calendar year 2029, unless an alternate 
percentage is established for a contract in accordance with FAR 
25.201(c). * * *
* * * * *

    Alternate III. * * *

    (a) * * *
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
* * * * *
    Domestic construction material means--
    (1) * * *
    (ii) * * *
    (A) The cost of its components mined, produced, or manufactured 
in the United States exceeds 60 percent of the cost of all its 
components, except that the percentage will be 65 percent for items 
delivered in calendar years 2024 through 2028 and 75 percent for 
items delivered starting in calendar year 2029, unless an alternate 
percentage is established for a contract in accordance with FAR 
25.201(c). * * *
* * * * *

    Alternate IV. As prescribed in 225.7503(b) and (b)(5), use the 
following clause, which includes, in the definition of ``domestic 
construction material'' at paragraph (1)(ii)(A), the domestic content 
threshold that will apply to the entire contract period of performance:

Balance of Payments Program--Construction Material Under Trade 
Agreements--Alternate IV (Date)

    (a) Definitions. As used in this clause--
    Caribbean Basin country construction material means a 
construction material that--
    (1) Is wholly the growth, product, or manufacture of a Caribbean 
Basin country; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country, has been 
substantially transformed in a Caribbean Basin country into a new 
and different construction material distinct from the materials from 
which it was transformed.
    Commercially available off-the-shelf (COTS) item--
    (1) Means any item of supply (including construction material) 
that is--
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' in section 2.101 of the Federal 
Acquisition Regulation (FAR));
    (ii) Sold in substantial quantities in the commercial 
marketplace; and
    (iii) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and
    (2) Does not include bulk cargo, as defined in section 3 of the 
Shipping Act of 1984 (46 U.S.C. 40102), such as agricultural 
products and petroleum products.
    Component means any article, material, or supply incorporated 
directly into construction material.
    Construction material means an article, material, or supply 
brought to the construction site by the Contractor or a 
subcontractor for incorporation into the building or work. The term 
also includes an item brought to the site preassembled from 
articles, materials, or supplies. However, emergency life safety 
systems, such as emergency lighting, fire alarm, and audio 
evacuation systems, that are discrete systems incorporated into a 
public building or work and that are produced as complete systems, 
are evaluated as a single and distinct construction material 
regardless of when or how the individual parts or components of 
those systems are delivered to the construction site. Materials 
purchased directly by the Government are supplies, not construction 
material.
    Cost of components means--
    (1) For components purchased by the Contractor, the acquisition 
cost, including transportation costs to the place of incorporation 
into the end product (whether or not such costs are paid to a 
domestic firm), and any applicable duty (whether or not a duty-free 
entry certificate is issued); or
    (2) For components manufactured by the Contractor, all costs 
associated with the manufacture of the component, including 
transportation costs as described in paragraph (1) of this 
definition, plus allocable overhead costs, but excluding profit. 
Cost of components does not include any costs associated with the 
manufacture of the construction material.
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Designated country means--
    (1) A World Trade Organization Government Procurement Agreement 
(WTO GPA) country (Armenia, Aruba, Australia, Austria, Belgium, 
Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, 
Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, 
Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, 
Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, 
Netherlands, New Zealand, Norway, Poland, Portugal, Romania, 
Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, 
Taiwan (known in the World Trade Organization as ``the Separate 
Customs Territory of Taiwan, Penghu, Kinmen, and Matsu'' (Chinese 
Taipei)), Ukraine, or the United Kingdom);
    (2) A Free Trade Agreement country (Australia, Bahrain, Chile, 
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, 
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama, 
Peru, or Singapore);
    (3) A least developed country (Afghanistan, Angola, Bangladesh, 
Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African 
Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, 
Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, 
Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, 
Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and 
Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South 
Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, 
or Zambia); or
    (4) A Caribbean Basin country (Antigua and Barbuda, Aruba, 
Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, 
Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. 
Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint 
Eustatius, Sint Maarten, or Trinidad and Tobago).
    Designated country construction material means a construction 
material that is a WTO GPA country construction material, a Free 
Trade Agreement country construction material, a least developed 
country construction material, or a Caribbean Basin country 
construction material.
    Domestic construction material'' means--
    (1) For construction material that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured construction material mined or produced in 
the United States; or
    (ii) A construction material manufactured in the United States, 
if--
    (A) The cost of its components mined, produced, or manufactured 
in the United States exceeds, for the entire period of performance 
for a contract awarded in: calendar year 2023, 60 percent of the 
cost of all its components; calendar years 2024 through 2028, 65 
percent of the cost of all its components; or calendar year 2029 or 
later, 75 percent of the cost of all its components. Components of 
foreign origin of the same class or kind for which nonavailability 
determinations have been made are treated as domestic. Components of 
unknown origin are treated as foreign; or
    (B) The construction material is a COTS item; or
    (2) For construction material that consists wholly or 
predominantly of iron or steel or a combination of both, a 
construction material manufactured in the United States if the cost 
of iron and steel not produced in the United States (excluding 
fasteners) as estimated in good faith by the contractor, constitutes 
less than 5 percent of the cost of all the components used in such 
construction material (produced in the United States

[[Page 37969]]

means that all manufacturing processes of the iron or steel must 
take place in the United States, except metallurgical processes 
involving refinement of steel additives). The cost of iron and steel 
not produced in the United States includes but is not limited to the 
cost of iron or steel mill products (such as bar, billet, slab, 
wire, plate, or sheet), castings, or forgings, not produced in the 
United States, utilized in the manufacture of the construction 
material and a good faith estimate of the cost of all iron or steel 
components not produced in the United States, excluding COTS 
fasteners. Iron or steel components of unknown origin are treated as 
foreign. If the construction material contains multiple components, 
the cost of all the materials used in such construction material is 
calculated in accordance with the definition of ``cost of 
components'' in this clause.
    Free Trade Agreement country construction material means a 
construction material that--
    (1) Is wholly the growth, product, or manufacture of a Free 
Trade Agreement country; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country, has been 
substantially transformed in a Free Trade Agreement country into a 
new and different construction material distinct from the material 
from which it was transformed.
    Least developed country construction material means a 
construction material that--
    (1) Is wholly the growth, product, or manufacture of a least 
developed country; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country has been 
substantially transformed in a least developed country into a new 
and different construction material distinct from the materials from 
which it was transformed.
    Predominantly of iron or steel or a combination of both means 
that the cost of the iron and steel content exceeds 50 percent of 
the total cost of all its components. The cost of iron and steel is 
the cost of the iron or steel mill products (such as bar, billet, 
slab, wire, plate, or sheet), castings, or forgings utilized in the 
manufacture of the product and a good faith estimate of the cost of 
iron or steel components excluding COTS fasteners.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    WTO GPA country construction material means a construction 
material that--
    (1) Is wholly the growth, product, or manufacture of a WTO GPA 
country; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country, has been 
substantially transformed in a WTO GPA country into a new and 
different construction material distinct from the materials from 
which it was transformed.
    (b) This clause implements the Balance of Payments Program by 
providing a preference for domestic construction material. In 
addition, the Contracting Officer has determined that the WTO GPA 
and Free Trade Agreements apply to this acquisition. Therefore, the 
Balance of Payments Program restrictions are waived for designated 
country construction materials.
    (c) The Contractor shall use only domestic or designated country 
construction material in performing this contract, except for--
    (1) Construction material valued at or below the simplified 
acquisition threshold in FAR part 2;
    (2) Information technology that is a commercial product; or
    (3) The construction material or components listed by the 
Government as follows:
    [Contracting Officer to list applicable excepted materials or 
indicate ``none''].


(End of clause)

    Alternate V. As prescribed in 225.7503(b) and (b)(6), use the 
following clause, which includes, in the definition of ``domestic 
construction material'' at paragraph (1)(ii)(A), the domestic content 
threshold that will apply to the entire contract period of performance; 
adds ``Bahrainian or Mexican construction material'' to paragraph (a); 
and uses a different paragraph (b) and (c) than the basic clause:

Balance of Payments Program--Construction Material Under Trade 
Agreements--Alternate V (Date)

    (a) Definitions. As used in this clause--
    Bahrainian or Mexican construction material means a construction 
material that--
    (1) Is wholly the growth, product, or manufacture of Bahrain or 
Mexico; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country, has been 
substantially transformed in Bahrain or Mexico into a new and 
different construction material distinct from the materials from 
which it was transformed.
    Caribbean Basin country construction material means a 
construction material that--
    (1) Is wholly the growth, product, or manufacture of a Caribbean 
Basin country; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country, has been 
substantially transformed in a Caribbean Basin country into a new 
and different construction material distinct from the materials from 
which it was transformed.
    Commercially available off-the-shelf (COTS) item--
    (1) Means any item of supply (including construction material) 
that is--
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' in section 2.101 of the Federal 
Acquisition Regulation (FAR));
    (ii) Sold in substantial quantities in the commercial 
marketplace; and
    (iii) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and
    (2) Does not include bulk cargo, as defined in section 3 of the 
Shipping Act of 1984 (46 U.S.C. 40102), such as agricultural 
products and petroleum products.
    Component means any article, material, or supply incorporated 
directly into construction material.
    Construction material means an article, material, or supply 
brought to the construction site by the Contractor or a 
subcontractor for incorporation into the building or work. The term 
also includes an item brought to the site preassembled from 
articles, materials, or supplies. However, emergency life safety 
systems, such as emergency lighting, fire alarm, and audio 
evacuation systems, that are discrete systems incorporated into a 
public building or work and that are produced as complete systems, 
are evaluated as a single and distinct construction material 
regardless of when or how the individual parts or components of 
those systems are delivered to the construction site. Materials 
purchased directly by the Government are supplies, not construction 
material.
    Cost of components means--
    (1) For components purchased by the Contractor, the acquisition 
cost, including transportation costs to the place of incorporation 
into the end product (whether or not such costs are paid to a 
domestic firm), and any applicable duty (whether or not a duty-free 
entry certificate is issued); or
    (2) For components manufactured by the Contractor, all costs 
associated with the manufacture of the component, including 
transportation costs as described in paragraph (1) of this 
definition, plus allocable overhead costs, but excluding profit. 
Cost of components does not include any costs associated with the 
manufacture of the construction material.
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Designated country means--
    (1) A World Trade Organization Government Procurement Agreement 
(WTO GPA) country (Armenia, Aruba, Australia, Austria, Belgium, 
Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, 
Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, 
Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, 
Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, 
Netherlands, New Zealand, Norway, Poland, Portugal, Romania, 
Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, 
Taiwan (known in the World Trade Organization as ``the Separate 
Customs Territory of Taiwan, Penghu, Kinmen, and Matsu'' (Chinese 
Taipei)), Ukraine, or the United Kingdom);
    (2) A Free Trade Agreement country (Australia, Bahrain, Chile, 
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, 
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama, 
Peru, or Singapore);
    (3) A least developed country (Afghanistan, Angola, Bangladesh, 
Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African 
Republic, Chad, Comoros, Democratic

[[Page 37970]]

Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, 
Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, 
Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, 
Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, 
Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, 
Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or
    (4) A Caribbean Basin country (Antigua and Barbuda, Aruba, 
Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, 
Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. 
Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint 
Eustatius, Sint Maarten, or Trinidad and Tobago).
    Designated country construction material means a construction 
material that is a WTO GPA country construction material, a Free 
Trade Agreement country construction material, a least developed 
country construction material, or a Caribbean Basin country 
construction material.
    Domestic construction material means--
    (1) For construction material that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured construction material mined or produced in 
the United States; or
    (ii) A construction material manufactured in the United States, 
if--
    (A) The cost of its components mined, produced, or manufactured 
in the United States exceeds, for the entire period of performance 
for a contract awarded in: calendar year 2023, 60 percent of the 
cost of all its components; calendar years 2024 through 2028, 65 
percent of the cost of all its components; or calendar year 2029 or 
later, 75 percent of the cost of all its components. Components of 
foreign origin of the same class or kind for which nonavailability 
determinations have been made are treated as domestic. Components of 
unknown origin are treated as foreign; or
    (B) The construction material is a COTS item; or
    (2) For construction material that consists wholly or 
predominantly of iron or steel or a combination of both, a 
construction material manufactured in the United States if the cost 
of iron and steel not produced in the United States (excluding 
fasteners) as estimated in good faith by the contractor, constitutes 
less than 5 percent of the cost of all the components used in such 
construction material (produced in the United States means that all 
manufacturing processes of the iron or steel must take place in the 
United States, except metallurgical processes involving refinement 
of steel additives). The cost of iron and steel not produced in the 
United States includes but is not limited to the cost of iron or 
steel mill products (such as bar, billet, slab, wire, plate, or 
sheet), castings, or forgings, not produced in the United States, 
utilized in the manufacture of the construction material and a good 
faith estimate of the cost of all iron or steel components not 
produced in the United States, excluding COTS fasteners. Iron or 
steel components of unknown origin are treated as foreign. If the 
construction material contains multiple components, the cost of all 
the materials used in such construction material is calculated in 
accordance with the definition of ``cost of components'' in this 
clause.
    Free Trade Agreement country construction material means a 
construction material that--
    (1) Is wholly the growth, product, or manufacture of a Free 
Trade Agreement country; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country, has been 
substantially transformed in a Free Trade Agreement country into a 
new and different construction material distinct from the material 
from which it was transformed.
    Least developed country construction material means a 
construction material that--
    (1) Is wholly the growth, product, or manufacture of a least 
developed country; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country has been 
substantially transformed in a least developed country into a new 
and different construction material distinct from the materials from 
which it was transformed.
    Predominantly of iron or steel or a combination of both means 
that the cost of the iron and steel content exceeds 50 percent of 
the total cost of all its components. The cost of iron and steel is 
the cost of the iron or steel mill products (such as bar, billet, 
slab, wire, plate, or sheet), castings, or forgings utilized in the 
manufacture of the product and a good faith estimate of the cost of 
iron or steel components excluding COTS fasteners.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    WTO GPA country construction material means a construction 
material that--
    (1) Is wholly the growth, product, or manufacture of a WTO GPA 
country; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country, has been 
substantially transformed in a WTO GPA country into a new and 
different construction material distinct from the materials from 
which it was transformed.
    (b) This clause implements the Balance of Payments Program by 
providing a preference for domestic construction material. In 
addition, the Contracting Officer has determined that the WTO GPA 
and all Free Trade Agreements except United States-Mexico-Canada 
Agreement and the Bahrain Free Trade Agreement apply to this 
acquisition. Therefore, the Balance of Payments Program restrictions 
are waived for designated country construction material other than 
Bahrainian or Mexican construction material.
    (c) The Contractor shall use only domestic or designated country 
construction material other than Bahrainian or Mexican construction 
material in performing this contract, except for--
    (1) Construction material valued at or below the simplified 
acquisition threshold in FAR part 2; or
    (2) Information technology that is a commercial product; or
    (3) The construction material or components listed by the 
Government as follows:
    [Contracting Officer to list applicable excepted materials or 
indicate ``none''].


(End of clause)
    Alternate VI. As prescribed in 225.7503(b) and (b)(7), use the 
following clause, which includes, in the definition of ``domestic 
construction material'' at paragraph (1)(ii)(A), the domestic content 
threshold that will apply to the entire contract period of performance; 
adds ``South Caucasus/Central and South Asian (SC/CASA) state'' and 
``SC/CASA state construction material'' to paragraph (a); uses a 
different paragraph (b) and introductory text for paragraph (c) than 
the basic clause; and adds paragraph (d):

Balance of Payments Program--Construction Material Under Trade 
Agreements--Alternate VI (Date)

    (a) Definitions. As used in this clause--
    Caribbean Basin country construction material means a 
construction material that--
    (1) Is wholly the growth, product, or manufacture of a Caribbean 
Basin country; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country, has been 
substantially transformed in a Caribbean Basin country into a new 
and different construction material distinct from the materials from 
which it was transformed.
    Commercially available off-the-shelf (COTS) item--
    (1) Means any item of supply (including construction material) 
that is--
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' in section 2.101 of the Federal 
Acquisition Regulation (FAR));
    (ii) Sold in substantial quantities in the commercial 
marketplace; and
    (iii) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and
    (2) Does not include bulk cargo, as defined in section 3 of the 
Shipping Act of 1984 (46 U.S.C. 40102), such as agricultural 
products and petroleum products.
    Component means any article, material, or supply incorporated 
directly into construction material.
    Construction material means an article, material, or supply 
brought to the construction site by the Contractor or a 
subcontractor for incorporation into the building or work. The term 
also includes an item brought to the site preassembled from 
articles, materials, or supplies. However, emergency life safety 
systems, such as emergency lighting, fire alarm, and audio 
evacuation systems, that are discrete systems incorporated into a 
public building or work and that are produced as complete systems, 
are evaluated as a single and distinct construction material 
regardless of when or how the individual parts or components of

[[Page 37971]]

those systems are delivered to the construction site. Materials 
purchased directly by the Government are supplies, not construction 
material.
    Cost of components means--
    (1) For components purchased by the Contractor, the acquisition 
cost, including transportation costs to the place of incorporation 
into the end product (whether or not such costs are paid to a 
domestic firm), and any applicable duty (whether or not a duty-free 
entry certificate is issued); or
    (2) For components manufactured by the Contractor, all costs 
associated with the manufacture of the component, including 
transportation costs as described in paragraph (1) of this 
definition, plus allocable overhead costs, but excluding profit. 
Cost of components does not include any costs associated with the 
manufacture of the construction material.
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Designated country means--
    (1) A World Trade Organization Government Procurement Agreement 
(WTO GPA) country (Armenia, Aruba, Australia, Austria, Belgium, 
Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, 
Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, 
Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, 
Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, 
Netherlands, New Zealand, Norway, Poland, Portugal, Romania, 
Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, 
Taiwan (known in the World Trade Organization as ``the Separate 
Customs Territory of Taiwan, Penghu, Kinmen, and Matsu'' (Chinese 
Taipei)), Ukraine, or the United Kingdom);
    (2) A Free Trade Agreement country (Australia, Bahrain, Chile, 
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, 
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama, 
Peru, or Singapore);
    (3) A least developed country (Afghanistan, Angola, Bangladesh, 
Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African 
Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, 
Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, 
Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, 
Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and 
Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South 
Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, 
or Zambia); or
    (4) A Caribbean Basin country (Antigua and Barbuda, Aruba, 
Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, 
Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. 
Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint 
Eustatius, Sint Maarten, or Trinidad and Tobago).
    Designated country construction material means a construction 
material that is a WTO GPA country construction material, a Free 
Trade Agreement country construction material, a least developed 
country construction material, or a Caribbean Basin country 
construction material.
    Domestic construction material means--
    (1) For construction material that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured construction material mined or produced in 
the United States; or
    (ii) A construction material manufactured in the United States, 
if--
    (A) The cost of its components mined, produced, or manufactured 
in the United States exceeds, for the entire period of performance 
for a contract awarded in: calendar year 2023, 60 percent of the 
cost of all its components; calendar years 2024 through 2028, 65 
percent of the cost of all its components; or calendar year 2029 or 
later, 75 percent of the cost of all its components. Components of 
foreign origin of the same class or kind for which nonavailability 
determinations have been made are treated as domestic. Components of 
unknown origin are treated as foreign; or
    (B) The construction material is a COTS item; or
    (2) For construction material that consists wholly or 
predominantly of iron or steel or a combination of both, a 
construction material manufactured in the United States if the cost 
of iron and steel not produced in the United States (excluding 
fasteners) as estimated in good faith by the contractor, constitutes 
less than 5 percent of the cost of all the components used in such 
construction material (produced in the United States means that all 
manufacturing processes of the iron or steel must take place in the 
United States, except metallurgical processes involving refinement 
of steel additives). The cost of iron and steel not produced in the 
United States includes but is not limited to the cost of iron or 
steel mill products (such as bar, billet, slab, wire, plate, or 
sheet), castings, or forgings, not produced in the United States, 
utilized in the manufacture of the construction material and a good 
faith estimate of the cost of all iron or steel components not 
produced in the United States, excluding COTS fasteners. Iron or 
steel components of unknown origin are treated as foreign. If the 
construction material contains multiple components, the cost of all 
the materials used in such construction material is calculated in 
accordance with the definition of ``cost of components'' in this 
clause.
    Free Trade Agreement country construction material means a 
construction material that--
    (1) Is wholly the growth, product, or manufacture of a Free 
Trade Agreement country; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country, has been 
substantially transformed in a Free Trade Agreement country into a 
new and different construction material distinct from the material 
from which it was transformed.
    Least developed country construction material means a 
construction material that--
    (1) Is wholly the growth, product, or manufacture of a least 
developed country; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country, has been 
substantially transformed in a least developed country into a new 
and different construction material distinct from the materials from 
which it was transformed.
    Predominantly of iron or steel or a combination of both means 
that the cost of the iron and steel content exceeds 50 percent of 
the total cost of all its components. The cost of iron and steel is 
the cost of the iron or steel mill products (such as bar, billet, 
slab, wire, plate, or sheet), castings, or forgings utilized in the 
manufacture of the product and a good faith estimate of the cost of 
iron or steel components excluding COTS fasteners.
    South Caucasus/Central and South Asian (SC/CASA) state means 
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 
Tajikistan, Turkmenistan, or Uzbekistan.
    SC/CASA state construction material means construction material 
that--
    (1) Is wholly the growth, product, or manufacture of an SC/CASA 
state; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country, has been 
substantially transformed in an SC/CASA state into a new and 
different construction material distinct from the material from 
which it was transformed.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    WTO GPA country construction material means a construction 
material that--
    (1) Is wholly the growth, product, or manufacture of a WTO GPA 
country; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country, has been 
substantially transformed in a WTO GPA country into a new and 
different construction material distinct from the materials from 
which it was transformed.
    (b) This clause implements the Balance of Payments Program by 
providing a preference for domestic construction material. In 
addition, the Contracting Officer has determined that the WTO GPA, 
Free Trade Agreements, and other waivers relating to acquisitions in 
support of operations in Afghanistan apply to this acquisition. 
Therefore, the Balance of Payments Program restrictions are waived 
for SC/CASA state and designated country construction materials.
    (c) The Contractor shall use only domestic, SC/CASA state, or 
designated country construction material in performing this 
contract, except for--
    (1) Construction material valued at or below the simplified 
acquisition threshold in FAR part 2;
    (2) Information technology that is a commercial product; or
    (3) The construction material or components listed by the 
Government as follows:

[[Page 37972]]

    [Contracting Officer to list applicable excepted materials or 
indicate ``none''].
    (d) If the Contractor is from an SC/CASA state, the Contractor 
shall inform its government of its participation in this acquisition 
and that it generally will not have such opportunity in the future 
unless its government provides reciprocal procurement opportunities 
to U.S. products and services and suppliers of such products and 
services.


(End of clause)
    Alternate VII. As prescribed in 225.7503(b) and (b)(8), use the 
following clause, which includes, in the definition of ``domestic 
construction material'' at paragraph (1)(ii)(A), the domestic content 
threshold that will apply to the entire contract period of performance; 
adds ``South Caucasus/Central and South Asian (SC/CASA state)'' and 
``SC/CASA state construction material'' to paragraph (a); uses a 
different paragraph (b) and introductory text for paragraph (c) than 
the basic clause; and adds paragraph (d):

Balance of Payments Program--Construction Material Under Trade 
Agreements--Alternate VII (Date)

    (a) Definitions. As used in this clause--
    Caribbean Basin country construction material means a 
construction material that--
    (1) Is wholly the growth, product, or manufacture of a Caribbean 
Basin country; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country, has been 
substantially transformed in a Caribbean Basin country into a new 
and different construction material distinct from the materials from 
which it was transformed.
    Commercially available off-the-shelf (COTS) item--
    (1) Means any item of supply (including construction material) 
that is--
    (i) A commercial product (as defined in paragraph (1) of the 
definition of ``commercial product'' in section 2.101 of the Federal 
Acquisition Regulation (FAR));
    (ii) Sold in substantial quantities in the commercial 
marketplace; and
    (iii) Offered to the Government, under a contract or subcontract 
at any tier, without modification, in the same form in which it is 
sold in the commercial marketplace; and
    (2) Does not include bulk cargo, as defined in section 3 of the 
Shipping Act of 1984 (46 U.S.C. 40102), such as agricultural 
products and petroleum products.
    Component means any article, material, or supply incorporated 
directly into construction material.
    Construction material means an article, material, or supply 
brought to the construction site by the Contractor or a 
subcontractor for incorporation into the building or work. The term 
also includes an item brought to the site preassembled from 
articles, materials, or supplies. However, emergency life safety 
systems, such as emergency lighting, fire alarm, and audio 
evacuation systems, that are discrete systems incorporated into a 
public building or work and that are produced as complete systems, 
are evaluated as a single and distinct construction material 
regardless of when or how the individual parts or components of 
those systems are delivered to the construction site. Materials 
purchased directly by the Government are supplies, not construction 
material.
    Cost of components means--
    (1) For components purchased by the Contractor, the acquisition 
cost, including transportation costs to the place of incorporation 
into the end product (whether or not such costs are paid to a 
domestic firm), and any applicable duty (whether or not a duty-free 
entry certificate is issued); or
    (2) For components manufactured by the Contractor, all costs 
associated with the manufacture of the component, including 
transportation costs as described in paragraph (1) of this 
definition, plus allocable overhead costs, but excluding profit. 
Cost of components does not include any costs associated with the 
manufacture of the construction material.
    Critical component means a component that is mined, produced, or 
manufactured in the United States and deemed critical to the U.S. 
supply chain. The list of critical components is at FAR 25.105.
    Critical item means domestic construction material or a domestic 
end product that is deemed critical to the U.S. supply chain. The 
list of critical items is at FAR 25.105.
    Designated country means--
    (1) A World Trade Organization Government Procurement Agreement 
(WTO GPA) country (Armenia, Aruba, Australia, Austria, Belgium, 
Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, 
Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, 
Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, 
Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, 
Netherlands, New Zealand, Norway, Poland, Portugal, Romania, 
Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, 
Taiwan (known in the World Trade Organization as ``the Separate 
Customs Territory of Taiwan, Penghu, Kinmen, and Matsu'' (Chinese 
Taipei)), Ukraine, or the United Kingdom);
    (2) A Free Trade Agreement country (Australia, Bahrain, Chile, 
Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, 
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama, 
Peru, or Singapore);
    (3) A least developed country (Afghanistan, Angola, Bangladesh, 
Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African 
Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, 
Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, 
Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, 
Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and 
Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South 
Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, 
or Zambia); or
    (4) A Caribbean Basin country (Antigua and Barbuda, Aruba, 
Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, 
Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. 
Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint 
Eustatius, Sint Maarten, or Trinidad and Tobago).
    Designated country construction material means a construction 
material that is a WTO GPA country construction material, a Free 
Trade Agreement country construction material, a least developed 
country construction material, or a Caribbean Basin country 
construction material.
    Domestic construction material means--
    (1) For construction material that does not consist wholly or 
predominantly of iron or steel or a combination of both--
    (i) An unmanufactured construction material mined or produced in 
the United States; or
    (ii) A construction material manufactured in the United States, 
if--
    (A) The cost of its components mined, produced, or manufactured 
in the United States exceeds, for the entire period of performance 
for a contract awarded in: calendar year 2023, 60 percent of the 
cost of all its components; calendar years 2024 through 2028, 65 
percent of the cost of all its components; or calendar year 2029 or 
later, 75 percent of the cost of all its components. Components of 
foreign origin of the same class or kind for which nonavailability 
determinations have been made are treated as domestic. Components of 
unknown origin are treated as foreign; or
    (B) The construction material is a COTS item; or
    (2) For construction material that consists wholly or 
predominantly of iron or steel or a combination of both, a 
construction material manufactured in the United States if the cost 
of iron and steel not produced in the United States (excluding 
fasteners) as estimated in good faith by the contractor, constitutes 
less than 5 percent of the cost of all the components used in such 
construction material (produced in the United States means that all 
manufacturing processes of the iron or steel must take place in the 
United States, except metallurgical processes involving refinement 
of steel additives). The cost of iron and steel not produced in the 
United States includes but is not limited to the cost of iron or 
steel mill products (such as bar, billet, slab, wire, plate, or 
sheet), castings, or forgings, not produced in the United States, 
utilized in the manufacture of the construction material and a good 
faith estimate of the cost of iron or steel components not produced 
in the United States, excluding COTS fasteners. Iron or steel 
components of unknown origin are treated as foreign. If the 
construction material contains multiple components, the cost of all 
the materials used in such construction material is calculated in 
accordance with the definition of ``cost of components'' in this 
clause.
    Free Trade Agreement country construction material means a 
construction material that--
    (1) Is wholly the growth, product, or manufacture of a Free 
Trade Agreement country; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country, has been 
substantially transformed in a Free Trade Agreement

[[Page 37973]]

country into a new and different construction material distinct from 
the material from which it was transformed.
    Least developed country construction material means a 
construction material that--
    (1) Is wholly the growth, product, or manufacture of a least 
developed country; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country, has been 
substantially transformed in a least developed country into a new 
and different construction material distinct from the materials from 
which it was transformed.
    Predominantly of iron or steel or a combination of both means 
that the cost of the iron and steel content exceeds 50 percent of 
the total cost of all its components. The cost of iron and steel is 
the cost of the iron or steel mill products (such as bar, billet, 
slab, wire, plate, or sheet), castings, or forgings utilized in the 
manufacture of the product and a good faith estimate of the cost of 
iron or steel components excluding COTS fasteners.
    South Caucasus/Central and South Asian (SC/CASA) state means 
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan, 
Tajikistan, Turkmenistan, or Uzbekistan.
    SC/CASA state construction material means construction material 
that--
    (1) Is wholly the growth, product, or manufacture of an SC/CASA 
state; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country, has been 
substantially transformed in an SC/CASA state into a new and 
different construction material distinct from the material from 
which it was transformed.
    Steel means an alloy that includes at least 50 percent iron, 
between 0.02 and 2 percent carbon, and may include other elements.
    United States means the 50 States, the District of Columbia, and 
outlying areas.
    WTO GPA country construction material means a construction 
material that--
    (1) Is wholly the growth, product, or manufacture of a WTO GPA 
country; or
    (2) In the case of a construction material that consists in 
whole or in part of materials from another country, has been 
substantially transformed in a WTO GPA country into a new and 
different construction material distinct from the materials from 
which it was transformed.
    (b) This clause implements the Balance of Payments Program by 
providing a preference for domestic construction material. In 
addition, the Contracting Officer has determined that the WTO GPA, 
all Free Trade Agreements except United States-Mexico-Canada 
Agreement and the Bahrain Free Trade Agreement, and other waivers 
relating to acquisitions in support of operations in Afghanistan 
apply to this acquisition. Therefore, the Balance of Payments 
Program restrictions are waived for SC/CASA state and designated 
country construction material other than Bahrainian or Mexican 
construction material.
    (c) The Contractor shall use only domestic, SC/CASA state, or 
designated country construction material other than Bahrainian or 
Mexican construction material in performing this contract, except 
for--
    (1) Construction material valued at or below the simplified 
acquisition threshold in FAR part 2;
    (2) Information technology that is a commercial product; or
    (3) The construction material or components listed by the 
Government as follows:
    [Contracting Officer to list applicable excepted materials or 
indicate ``none''].
    (d) If the Contractor is from an SC/CASA state, the Contractor 
shall inform its government of its participation in this acquisition 
and that it generally will not have such opportunity in the future 
unless its government provides reciprocal procurement opportunities 
to U.S. products and services and suppliers of such products and 
services.


(End of clause)

[FR Doc. 2023-12019 Filed 6-8-23; 8:45 am]
BILLING CODE 5001-06-P