IMMEDIATE ACTION

DEPARTMENT OF THE AIR FORCE                             CT      C 92-46
Headquarters US Air Force
Washington DC  2 3T      il 21, 1995
AIR FORCE ACQUISITION CIRCULAR

This Air Force Acquisition Circular (AFAC) is issued pursuant to the authority of FAR 1.301.  Reproduction is authorized.

POLICY CHANGES/INFORMATION

        Item    Title    								Pages

Section B, DFARS Changes

        B1      Institutions of Higher Education (DDP Memo, 6 Mar 1995; D.L. 95-007)   	 B-1

        B2      Subcontracting Plans for Nonprofit Agencies for the Blind or Severely   	B-2
                Disabled (DDP Memo, 27 Feb 1995; D.L. 95-004)

        B3      Hazardous Materials (DDP Memo, 6 Mar 1995; D.L. 95-006)  			B-3

        B4      Restriction on Procurement of Goods (DDP Memo, 10 Apr 1995; D.L. 95-009)  	B-4

        B5      Federally Funded Research and Development Centers (FFRDCs)         		B-5
                (DDP Memo, 3 Mar 1995; D.L. 95-005)

INSTRUCTIONS

GENERAL 

File this AFAC 92-46 Index (4 pages) with the AFACs.

ITEM B1 

GENERAL: This AFAC item implements Section 558 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337) as it applies to contracts.  Section 558 provides that no funds available to the Department of Defense may be provided by grant or contract to any institution of higher education that has a policy of denying, or which effectively prevents, the Secretary of Defense from obtaining for military recruiting purposes entry to campuses, access to students on campuses, or access to directory information pertaining to students.

FILING INSTRUCTIONS:  File AFAC page B-1 with the AFACs.

POSTING INSTRUCTIONS:  Insert AFAC pages as follows:


No. of Printed Pages: 42
OPR: SAF/AQCF
Distribution: F (Same as FAR)
2               April 21, 1995
        AFAC 92-46


        (i) Page B-1.1 behind DFARS page 209.4-5; and

        (ii) Page B-1.2 facing AFAC 92-43 page B-2.7,. which is currently posted facing page 252.210-1.

MARKING INSTRUCTIONS:  Annotate  AFAC 92-46, B1  in the margin at each of the following locations in the DFARS:

        (i)  The Table of Contents for Part 209 after the reference to 209.406-3;

        (ii)  Page 209.4-5 below 209.406-3(a)(iii); and

        (iii)  The Table of Contents for Part 252 at the reference to 252.209-7002.

EFFECTIVITY INSTRUCTIONS:  This AFAC item is effective from 6 Mar 95 until the change is published in a DAC.

ITEM B2 

GENERAL:  This AFAC item implements Section 804 of the Fiscal Year 1995 Defense Authorization Act (Pub. L. 103-337), which extends the authority through September 30, 1997, for contractors to claim credit towards their small business subcontracting goals for subcontracts with qualified nonprofit agencies for the blind and severely disabled.

FILING INSTRUCTIONS:  File AFAC page B-2 with the AFACs.

POSTING INSTRUCTIONS:  Insert AFAC page B-2.1 facing DFARS page 219.7-1.

MARKING INSTRUCTIONS:  Annotate  AFAC 92-46, B2  in the margin on DFARS page 219.7-1 at 219.703(a).

EFFECTIVITY INSTRUCTIONS:  This AFAC item is effective from 27 Feb 95 until the change is published in a DAC.

ITEM B3 

GENERAL:  This AFAC item implements Section 325 of the Fiscal Year 1995 Defense Authorization Act (Pub. L. 103-337), which adds another exception to the statutory prohibition on storage and disposal of non-DoD-owned toxic and hazardous materials at military installations.

FILING INSTRUCTIONS:  File AFAC page B-3 with the AFACs.

POSTING INSTRUCTIONS:  Insert AFAC pages as follows:

        (i)  Page B-3.1 facing DFARS page 223.71-1;
        (ii)  Page B-3.2 facing page 223.71-2; and
        (iii)  Page B-3.3 facing page 252.223-9.
AFAC 92-46              April 21, 1995  3


MARKING INSTRUCTIONS:  Annotate  AFAC 92-46, B3  in the margin at each of the following locations in the DFARS:

        (i) Page 223.71-1 at 223.7101;

        (ii) Page 223.71-2 at 223.7102(a)(8) and 223.7103; and

        (iii) Page 252.223-9 at 252.223-7006(b).

EFFECTIVITY INSTRUCTIONS:  This AFAC item is effective from 6 Mar 95 until the change is published in a DAC.

Item B4 

GENERAL:  This AFAC item implements 10 U.S.C. 2534 as amended by Section 814 of the Fiscal Year 1995 Defense Authorization Act (Pub. L. 103-337) and Section 4102(i) of the Federal Acquisition Streamlining Act of 1994 (Pub. L. 103-355).  Section 814 revises the existing foreign source restrictions for machine tools and valves, buses, chemical weapons antidote, air circuit breakers, and antifriction bearings, by uniformly permitting acquisition of Canadian items, and by expanding and standardizing the waiver criteria.  Section 4102(i) exempts acquisitions below the simplified acquisition threshold from these restrictions.

FILING INSTRUCTIONS:  File AFAC page B-4 with the AFACs.

POSTING INSTRUCTIONS:  Insert AFAC pages as follows:

        (i) Pages B-4.1/B4.2 between DFARS pages 225.70-4 and 225.70-5;

        (ii) Page B-4.3 facing page 225.70-8;

        (iii) Page B-4.4 facing page 225.70-9;

        (iv) Page B-4.5 facing page 225.70-14;

        (v) Page B-4.6/4.7 between pages 225.70-16 and 225.70-17;

        (vi) Page B-4.8 facing page 252.225-19; and

        (vii) Page B-4.9 facing page 252.225-27.

MARKING INSTRUCTIONS:  Make the following annotations in the DFARS:

        (i)  On page 225.70-5 beside 225.7004,  Section 225.7004 is replaced by AFAC 92-46, B4 ;

        (ii)  On page 225.70-8 beside 225.7007,  Section 225.7007 is replaced by AFAC 92-46, B4 ;
        (iii)  On page 225.70-9 beside 225.7010,  Section 225.7010 is replaced by AFAC 92-46, B4 ;

        (iv) On page 225.70-14 beside 225.7016,  Section 225.7016 is replaced by AFAC 92-46, B4 ;
4               April 21, 1995  AFAC 92-46


        (v) On page 225.70-16 beside 225.7019,  Section 225.7019 is replaced by AFAC 92-46, B4 ;

        (vi) On page 252.225-19 beside 252.225-7017,  252. 225-7017 is replaced by AFAC 92-46, B4 ; and

        (vii) On page 252.225-27 beside 252.225-7029,  252.225-7029 is replaced by AFAC 92-46, B4. 

EFFECTIVITY INSTRUCTIONS:  This AFAC item is effective from 10 Apr 95 until the change is published in a DAC.

Item B5 

GENERAL:  This AFAC item implements Section 217 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337), which allows DoD-sponsored FFRDCs that function primarily as research laboratories to respond to solicitations and announcements for programs which promote research, development, demonstration, or transfer of technology.

FILING INSTRUCTIONS:  File AFAC page B-5 with the AFACs.

POSTING INSTRUCTIONS:  Insert AFAC pages B-5.1 facing DFARS page 235.0-14.

MARKING INSTRUCTIONS:  Annotate  AFAC 92-46, B5  in the margin on page 235.0-14 below 235.017(a)(2).

EFFECTIVITY INSTRUCTIONS:  This AFAC item is effective from 3 Mar 95 until the change is published in a DAC.
        AFAC 92-46       April 21, 1995 B-1

OFFICE THE UNDER SECRETARY OF DEFENSE
3000 DEFENSE PENTAGON
WASHINGTON DC 20301-3000

March 6, 1995

ACQUISITION AND
TECHNOLOGY
     DP (DAR)

        In reply refer to
                DFARS Case: 94-D310
                D. L.  95-007

     MEMORANDUMFOR DIRECTORS OF DEFENSE AGENCIES
                DEPUTY FOR ACQUISITION AND BUSINESS MANAGEMENT,
                        ASN(RD&A)/ABM
                DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
                        (CONTRACTING), SAF/AQC
                DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP
                DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS AGENCY

        

             We have amended the Defense Federal Acquisition Regulation Supplement to implement Section 558 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337) as it applies to contracts.  Section 558 provides that no funds available to the Department of Defense may be provided by grant or contract to any institution of higher education that has a policy of denying, or which effectively prevents, the Secretary of Defense from obtaining for military recruiting purposes entry to campuses, access to students on campuses, or access to directory information pertaining to students.

             This interim rule is effective immediately and will be published in a future Defense Acquisition Circular.




        Eleanor R. Spector
        Director, Defense Procurement

     Attachment

     cc:  DSMC, Ft. Belvoir
AFAC 92-46              April 21, 1995  B-1.1

SUBPART 209.4--DEBARMENT, SUSPENSION, AND INELIGIBILITY

209.470 Military recruiting on campus.

209.470-1 Policy.

        (a) Section 558 of the National Defense Authorization Act for Fiscal Year 1995, (Pub. L. 103-337) provides that no funds available to the Department of Defense may he provided by grant or contract to any institution of higher education that either-

        (1) Has a policy of denying-

        (i) Entry to campuses or access to students on campus; or

                (ii) Access to directory information pertaining to students.

        (2) Effectively prevents the Secretary of Defense from obtaining for military recruiting purposes-

        (i) Entry to campuses or access to students on campus; or

        (ii) Access to directory information pertaining to students.

        (b) Institutions of higher education that are determined under the procedures prescribed by the Secretary of Defense to have the policy or practice in paragraph (a) of this subsection shall be listed as ineligible on the list of Parties Excluded from Federal Procurement Programs published by the General Services Administration (GSA). (See FAR 9.404).

209.470-2 Procedures.

        (a) Agencies shall not solicit offers from, award contracts to, or consent to subcontracts with ineligible contractors.

        (b) After a determination of ineligibility, departments and agencies shall make no further payments under existing contracts with the institutions, and shall initiate termination action.

209.470-3 Contract clause.

Use the clause at 252.209-7007, Military Recruiting on Campus, in all solicitations and contracts with institutions of higher education.

AFAC 92-46      April 21, 1995  B-1.2


252.209-7007 Military Recruiting on Campus

As prescribed in 209.470-3, use the following clause:

MILITARY RECRUITING ON CAMPUS (MAR 1995)

(a) Definitions.

    Directory information," as used in this clause, means, with respect to a student, the student's name, address, telephone listing, date and place of birth, level of education, degrees received, and the most recent previous educational institution enrolled in by the student. Students are individuals who are 17 years of age or older.

(b) General.

   An institution of higher education that has been determined, using procedures established by the Secretary of Defense to implement section 558 of Pub. L. 103-337 (1994): (1) to have a policy of denying, or (2) to be an institution that prevents effectively the Secretary of Defense from obtaining for military recruiting purposes entry to their campuses, access to students on campuses, or access to directory information pertaining to students, is ineligible for contract award and payments under existing contracts. In addition, the Government shall terminate this contract for the contractor's material failure to comply with the terms and conditions of award.

(c)Agreement.

   The contractor represents that it does not now have and agrees that during performance of this contract it will not adopt a policy of denying, and that it does not, is not, and will not during performance of the contract, effectively prevent the Secretary of Defense from obtaining for military recruiting purposes entry to campuses, access to students on campuses, or access to directory information pertaining to students.

(End of clause)
AFAC 92-46              April 21, 1995  B-2


OFFICE OF THE UNDER SECRETARY OF DEFENSE
3000 DEFENSE PENTAGON
WASHINGTON DC 20301-3000
February 27, 1995

        ACQUISITION AND
        TECHNOLOGY
                DP (DAR)

                                                                        In reply refer to
                                                                        DFARS Case: 94-D312
                                                                        D. L. 95-004

     MEMORANDUM FOR DIRECTORS OF DEFENSE AGENCIES
                DEPUTY FOR ACQUISITION AND BUSINESS MANAGEMENT,
                        ASN(RD&A)/ABM
                DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
                        (CONTRACTING), SAF/AQC
                DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP
                DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS AGENCY

SUBJECT: Subcontracting Plans for Nonprofit Agencies for the Blind or Severely Disabled

        We have amended the Defense Federal Acquisition Regulation Supplement (DFARS) to implement Section 804 of the Fiscal Year 1995 Defense Authorization Act (Pub. L. 103-337) .  Section 804 extends the authority through September 30, 1997, for contractors to claim credit towards their small business subcontracting goals for subcontracts with qualified nonprofit agencies for the blind and severely disabled.

        The attached interim DFARS rule is effective immediately and will be published in a future Defense Acquisition Circular.




                Eleanor R. Spector
                Director, Defense Procurement
Attachment

cc:  DSMC, Ft. Belvoir
B-2.1           April 21, 1995  AFAC 92-46




SUBPART 219.7--SUBCONTRACTING WITH SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS

219.703 Eligibility requirements for participating in the program.

      (a) Qualified nonprofit agencies for the blind and other severely disabled, that have been approved by the Committee for Purchase from People Who Are Blind or Severely Disabled under the Javits-Wagner-O'Day Act (41 U.S.C. 46-48), are eligible as a result of Section 9O77 of Pub. L. 102-395, and subsequent Appropriation Acts, and Sections 808 of Pub. L. 102-484 and 804 of Pub. L. 103-337 through September 30, 1997, to participate in the program.  Under this authority, subcontracts awarded to such entities may be counted toward the prime contractor's small business subcontracting goal through fiscal year 1997.

*       *       *       *       *

AFAC 92-46              April 21, 1995  B-3

OFFICE OF THE UNDER SECRETARY OF DEFENSE
3000 DEFENSE PENTAGON
WASHINGTON DC 20301-3000

March 6, 1995

TECHNOLOGY
DP (DAR)

        In reply refer to
                DFARS Case: 94-D309
                D. L. 95-006

     MEMORANDUM FOR DIRECTORS OF DEFENSE AGENCIES
                DEPUTY FOR ACQUISITION AND BUSINESS MANAGEMENT,
                        ASN(RD&A)/ABM
                DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
                        (CONTRACTING), SAF/AQC
                DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP
                DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS
                        AGENCY
                
SUBJECT: Hazardous Materials

      We have amended the Defense Federal Acquisition Regulation Supplement (DFARS) to implement Section 325 of the Fiscal Year 1995 Defense Authorization Act (Pub. L. 103-337).  Section 325 adds another exception to the statutory prohibition on storage and disposal of non-DoD-owned toxic and hazardous materials at military installations.

      The attached interim DFARS rule is effective immediately and will be published in a future Defense Acquisition Circular.




        Eleanor R. Spector
        Director, Defense Procurement
Attachment

cc:  DSMC, Ft. Belvoir
B-3.1           April 21, 1995  AFAC 92-46



SUBPART 223.71--STORAGE AND DISPOSAL OF TOXIC AND HAZARDOUS MATERIALS

223.7100 Policy.

10 U.S.C. 2692 prohibits storage or disposal of non-DoD-owned toxic or hazardous materials on DoD installations, except as provided in 223.7102.  DoD Directive 6050.8, Storage and Disposal of Non-DoD-Owned or Toxic Materials on DoD Installations, implements 10 U.S.C. 2692.

223.7101 Procedures.

      (a) If the contracting officer is uncertain as to whether particular activities are prohibited or fall under one of the exceptions in 223.7102, the contracting officer should seek advice from the cognizant office of counsel.

      (b) When storage, treatment, or disposal of non-DoD-owned toxic or hazardous materials is authorized in accordance with this subpart, the contract or authorization should specify the types, conditions, and quantities of hazardous materials that may be temporarily stored, treated, or disposed of in connection with the contract or as a result of the authorized commercial use of a DoD industrial-type facility.

223.7102 Exceptions.

      (a) The prohibition of 10 U.S.C. 2692 does not apply to--

*       *       *       *       *       *

AFAC 92-46              April 21, 1995  B-3.2


      (9) The treatment and disposal of any non-DoD-owned material if the Secretary of the military department concerned- -

          (i) Determines that the material is required or generated by a private person in connection with the authorized and compatible commercial use by that person of an industrial-type facility of that military department; and
          (ii) Enters a contract with that person that--

                (A) Is consistent with the best interest of national defense and environmental security; and

                (B) Provides for that person's continued financial and environmental responsibility and liability with regard to the material.

      (b) No change.

223.7103 Contract clause.

      (a) Use the clause at 252.223-7006, Prohibition on Storage and Disposal of Toxic and Hazardous Materials, in all solicitations and contracts which require, may require, or permit contractor performance on a DoD installation.

      (b) Use the clause at 252.223-7006 with its Alternate I, when the Secretary of the military department issues a determination under the exception at 223.7102(a)(9).
     
B-3.3           April 21, 1995  AFAC 92-46

252.223-7006 Prohibition on Storage and Disposal of Toxic and Hazardous Materials.
As prescribed in 223.7103(a), use the following clause:

*       *       *       *       *

ALTERNATE I (FEB 1995)
As prescribed in 223.7103(b), add the following paragraphs (c) and (d) to the basic clause:

      (c) With respect to treatment or disposal authorized pursuant to 10 U.S.C. 2692(b)(9), and notwithstanding any other provision of the contract, the Contractor assumes all financial and environmental responsibility and liability resulting from any treatment or disposal of non-DoD-owned toxic or hazardous material on a military installation.  The Contractor shall indemnify, defend, and hold the Government harmless for all costs, liability, or penalties resulting from the Contractor's treatment or disposal of non-DoD-owned toxic or hazardous materials on a military installation.

      (d) The Contractor shall include this clause, including this subparagraph (d) in each subcontract.
     
AFAC 92-46              April 21, 1995  B-4


OFFICE OF THE UNDER SECRETARY OF DEFENSE
3000 DEFENSE PENTAGON
WASHINGTON DC 20301-3000

APR 10, 1995

ACQUISITION AND 
TECHNOLOGY
DP (DAR)
        In reply refer to
                DFARS Case:      94-D314
                D.L. 95-009

MEMORANDUMFOR DIRECTORS OF DEFENSE AGENCIES
                DEPUTY FOR ACQUISITION AND BUSINESS MANAGEMENT, ASN(RD&A)/ABM
                DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
                        (CONTRACTING), SAF/AQC
        DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS AGENCY

SUBJECT:        Restriction on Procurement of Goods

      We have amended the Defense Federal Acquisition Regulation Supplement (DFARS) to implement 10 U.S.C. 2534 as amended by Section 814 of the Fiscal Year 1995 Defense Authorization Act (Pub. L. 103-337) and Section 4102(i) of the Federal Acquisition Streamlining Act of 1994 (Pub. L. 103-355).  Section 814 revises the existing foreign source restrictions for machine tools and valves, buses, chemical weapons antidote, air circuit breakers, and antifriction bearings, by uniformly permitting acquisition of Canadian items, and by expanding and standardizing the waiver criteria.  Section 4102(i) exempts acquisitions below the simplified acquisition threshold from these restrictions.

      The attached interim DFARS rule is effective immediately and will be published in a future Defense Acquisition Circular.



        Eleanor R. Spector
        Director, Defense Procurement
Attachment

cc:  DSMC, Ft. Belvoir
B-4.1& 2                April 21, 1995            AFAC 92-46  


225.7004Restriction on machine tools and powered and non-powered valves.

225.7004-1Restriction.
In accordance with 10 U.S.C. 2534, through fiscal year 1996, do not acquire, either directly as end items or indirectly on behalf of the Government, the machine tools or powered and non-powered valves in 225.7004-2 unless they are of U.S. or Canadian origin.

225.7004-2Applicability.

(a)     Machine tools restricted under this section are those tools listed in Federal supply classes of metalworking machinery in the following categories 

FEDERAL SUPPLY
        CLASSIFICATION (FSC)    NAME

        3405    Saw and filing machines
        3408    Machine centers and way type machines
        3410    Electrical and ultrasonic erosion machines
        3411    Boring machines
        3412    Broaching machines
        3413    Drilling and tapping machines
        3414    Gear cutting and finishing machines
        3415    Grinding machines
        3416    Lathes
        3417    Milling machines
        3418    Planers and shapers
        3419    Miscellaneous machine tools
        3426    Metal finishing equipment
        3433    Gas welding, heat cutting, and metalizing equipment
        3438    Miscellaneous welding equipment
        3441    Bending and forming machines
        3442    Hydraulic and pneumatic presses, power driven
        3443    Mechanical presses, power driven
        3445    Punching and shearing machines
        3446    Forging machinery, and hammers
        3448    Riveting machines
        3449    Miscellaneous secondary metal forming and cutting machines
        3460    Machine tool accessories
        3461    Accessories for secondary metalworking
machinery

(b)     Machine tool accessories classified under FSC 3460 or 3461 are not components under 225.7004-5. Where a solicitation for machine tools includes machine tool accessories, list machine tool accessories separately Each machine tool and each accessory must meet the requirements of this section individually.

(c)     Valves restricted under this section are those powered and non-powered valves listed in Federal supply classes 4810 (valves, powered) and 4820 (valves, non-powered) used in piping for naval surface ships and submarines.

225.7004-3Exception.
This restriction does not apply if the acquisition is below the simplified acquisition threshold.
 
225.7004-4 Waiver.

(a)     The head of the contracting activity may waive the restriction on a case-by-case basis upon execution of a determination and findings that any of the following applies:

        (1)The restriction would cause unreasonable delays.

        (2)United States producers of the item would not be jeopardized by competition from a foreign country, and that country does not discriminate against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country.

        (3)Application of the restriction would impede cooperative programs entered into between DoD and a foreign country, and that country does not discriminate against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country.

        (4)Satisfactory quality items manufactured in the United States or Canada are not available.

        (5)Application of the restriction would result in the existence of only one source for the item in the United States or Canada.

        (6)Application of the restriction is not in the national security interests of the United States.

        (7)Application of the restriction would adversely affect a U.S. company.

(b)     The restriction is waived when it would cause unreasonable costs. The cost of a machine tool or valve of U.S. or Canadian origin is unreasonable if it exceeds 150 percent of the offered price, inclusive of duty, of items which are not of U.S. or Canadian origin.

225.7004-5U.S. or Canadian origin.

(a)     A valve or machine tool shall be considered to be of U.S. or Canadian origin if-

        (1)It is manufactured in the United States or Canada; and
        
        (2)The cost of its components manufactured in the United States or Canada exceeds 50 percent of the cost of all its components.
        
(b)     The cost of components shall include transportation costs to the place of incorporation into the end product and duty (whether or not a duty-free certificate may be issued).

225.7004-6Contract clauses.

(a)     Unless an exception applies or a waiver has been granted, use  the clause at 252.225-7017, Preference for United States and Canadian Valves and Machine Tools, in all solicitations and contracts for valves and machine tools.

(b)     Consider using the clause at 252.225-7001, Buy American Act and Balance of Payments Program, and, if applicable, the clause at 252.225-7007, Trade Agreements Act, whenever an exception or waiver is anticipated. Where these clauses are used, state in the solicitation that offers which do not conform to the restrictions of the more restrictive clause will only be considered if an exception applies or a waiver is granted.


AFAC 92-46               April 21, 1995                     B-4.3

225.7007Restriction on acquisition of foreign buses.

225.7007-1Restriction.
In accordance with 10 U.S.C. 2534, do not acquire a multipassenger motor vehicle (bus) unless it is manufactured in the United States or Canada.

225.7007-2Applicability.
Apply this restriction if the buses are purchased, leased, rented, or made available under contracts for transportation services.

225.7007-3Exceptions.
This restriction does not apply in any of the following circumstances:

(a)     Buses manufactured outside the United States and Canada are needed for temporary use because buses manufactured in the United States or Canada are not available to satisfy requirements that cannot be postponed. Such use may not, however, exceed the lead time required for acquisition and delivery of buses manufactured in the United States or Canada.

(b)     The requirement for buses is temporary in nature. For example, to meet a special, nonrecurring requirement or a sporadic and infrequent recurring requirement, buses manufactured outside the United States and Canada may be used for temporary periods of time. Such use may not, however, exceed the period of time needed to meet the special requirement

(c)     Buses manufactured outside the United States and Canada are available at no cost to the U.S. Government.

(d)     The acquisition is below the simplified acquisition threshold.

225.7007-4Waiver.

(a)     The head of the contracting activity may waive the restriction on a case-by-case basis upon execution of a determination and findings that any of the following applies:

        (1)The restriction would cause unreasonable delays.
        
        (2)United States producers of the item would not be jeopardized by competition from a foreign country, and that country does not discriminate against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country.
        
        (3)Application of the restriction would impede cooperative programs entered into between DoD and a foreign country, and that country does not discriminates against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country.
        
        (4)Satisfactory quality items manufactured in the United States or Canada are not available.
 
        (5)Application of the restriction would result in the existence of only one source for the item in the United States or Canada.
        
        (6)Application of the restriction is not in the national security interests of the United States.
        
        (7)Application of the restriction would adversely affect a U.S. company.

(b)     The restriction is waived when it would cause unreasonable costs. The cost of a bus manufactured in the United States or Canada is unreasonable if it exceeds 150 percent of the offered price, inclusive of duty, of items which are not manufactured in the United States or Canada.

B-4.4                 April 21, 1995          AFAC 92-46


225.7010        Restriction on certain chemical weapons antidote.

225.7010-1Restriction.
In accordance with 10 U.S.C. 2534, do not acquire chemical weapons antidote contained in automatic injectors, or the components for such injectors, unless the injector or component is manufactured in the United States or Canada by a company that 

(a)     Is a producer under the Industrial Preparedness Program at the time of contract award;

(b)     Has received all required regulatory approvals; and

(c)     Has the plant, equipment, and personnel to perform the contract in the United States or Canada at the time of contract award.

225.7010-2Exception.
This restriction does not apply if the acquisition is below the simplified acquisition threshold.

225.7010-3 Waiver.

(a)     The head of the contracting activity may waive the restriction on a case-by-case basis upon execution of a determination and findings that any of the following applies:

        (1)The restriction would cause unreasonable delays.
        
        (2)United States producers of the item would not be jeopardized by competition from a foreign country, and that country does not discriminate against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country.
        
        (3)Application of the restriction would impede cooperative programs entered into between DoD and a foreign country, and that country does not discriminate against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country.
        
        (4)Satisfactory quality items manufactured in the United States or Canada are not available.
        
        (5)Application of the restriction would result in the existence of only one source for the item in the United States or Canada.
        
        (6)Application of the restriction is not in the national security interests of the United States.
        
        (7)Application of the restriction would adversely affect a U.S. company.

(b)     The restriction is waived when it would cause unreasonable costs. The cost of the injector or component manufactured in the United States or Canada is unreasonable if it exceeds 150 percent  of the offered price, inclusive of duty, of items which are not manufactured in the United States or Canada.


AFAC 92-46              April 21, 1995              B-4.5


225.7016Restriction on air circuit breakers for naval vessels.

225.7016-1Restriction.
In accordance with 10 U.S.C. 2534, do not acquire air circuit breakers for naval vessels unless they are manufactured in the United States or Canada

225.7016-2Exceptions.
This restriction does not apply if 

(a)     The acquisition is below the simplified acquisition threshold; or

(b)     Spares and repair parts are needed to support air circuit breakers manufactured outside the United States or Canada. Support includes the purchase of spare air circuit breakers where those from alternate sources are not interchangeable.

225.7016-3Waiver.

(a)     The head of the contracting activity may waive the restriction on a case-by-case basis upon execution of a determination and findings that any of the following applies:

        (1)The restriction would cause unreasonable delays.
        
        (2)United States producers of the item would not be jeopardized by competition from a foreign country, and that country does not discriminate against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country.
        
        (3)Application of the restriction would impede cooperative programs entered into between DoD and a foreign country, and that country does not discriminate against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country.
        
        (4)Satisfactory quality items manufactured in the United States or Canada are not available.
        
        (5)Application of the restriction would result in the existence of only one source for the item in United States or Canada.
        
        (6)Application of the restriction is not in the national security interests of the United States.
        
        (7)Application of the restriction would adversely affect a U.S. company.

(b)     The restriction is waived when it would cause unreasonable costs. The cost of the air circuit breaker manufactured in the United States or Canada is unreasonable if it exceeds 150 percent of the offered price, inclusive of duty, of items which are not manufactured in the United States or Canada.

 225.7016-4Contract clause.
Use the clause at 252.225-7029, Preference for United States or Canadian Air Circuit Breakers, in all solicitations and contracts requiring air circuit breakers for naval vessels, unless

(a)     An exception under 225.7016-2 is known to apply; or

(b)     A waiver has been granted in accordance with 225.7016-3.

AFAC 92-46               April 21, 1995          B-4.6 & 4.7

225.7019Restriction on antifriction bearings.

225.7019-1Restriction.
In accordance with 10 U.S.C. 2534, through fiscal year 1995, do not acquire antifriction bearings or bearing components which are not manufactured in the United States or Canada

225.7019-2Exceptions.

The restriction in 225.7019-1 does not apply to 

(a)     Acquisitions below the simplified acquisition threshold;

(b)     Purchases of commercial products incorporating antifriction bearings;

(c)     Miniature and instrument ball bearings restricted under 225.71;

(d)     Items acquired overseas for use overseas; or

(e)     Antifriction bearings or bearing components or items containing bearings for use in a cooperative or Co-production project under an international agreement.

225.7019-3Waiver.
The head of the contracting activity may waive the restriction in 225.7019-1 

(a)     Upon execution of a determination and findings that 

        (1)No domestic (U.S. or Canadian) bearing manufacturer meets the requirement;
        
        (2)It is not in the best interests of the United States to qualify a domestic bearing to replace a qualified nondomestic bearing. This determination must be based on a finding that the qualification of a domestically manufactured bearing would cause unreasonable costs or delay A finding that a cost is unreasonable should take into consideration DoD policy to assist the domestic industrial mobilization base. Contracts should be awarded to domestic bearing manufacturers to increase their capability to reinvest and become more competitive;
        
        (3)United States producers of the item would not be jeopardized by competition from a foreign country, and that country does not discriminate against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country;
        
        (4)Application of the restriction would impede cooperative programs entered into between DoD and a foreign country, and that country does not discriminates against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country;
        
        (5)Application of the restriction would result in the existence of only ore source for the item in the United States or  Canada;
        
        (6)Application of the restriction is not in the national security interests of the United States; or
        
        (7)Application of the restriction would adversely affect a U.S. company.

(b)     For multiyear contracts or contracts exceeding 12 months, only if-

        (1)The head of the contracting activity executes a determination and findings in accordance with paragraph (a) of this subsection;
        
        (2)The contractor submits a written plan for transitioning from the use of nondomestic to domestically manufactured bearings;
        
        (3)The plan 

        (i)     States whether a domestically manufactured bearing can be qualified, at a reasonable cost, for use during the course of the contract period;
        
        (ii)    Identifies any bearings that are not domestically manufactured, their application, and source of supply; and
        
        (iii)Describes, including cost and timetable, the transition to a domestically manufactured bearing. (The timetable for the transition should normally take no longer than 24 months from the date the waiver is granted); and

        (4)The contracting officer accepts the plan and incorporates it in the contract.

225.7019-4Contract clause.
Use the clause at 252.225-7016, Restriction on Acquisition of Antifriction Bearings, in all solicitations and contracts, unless

(a)     An exception applies or a waiver has been granted; or

(b)     The contracting officer knows that the items being acquired do not contain antifriction bearings.

B-4.8                  April 21, 1995                   AFAC 92-46

252.225-7017  Preference for United States and Canadian Valves and Machine Tools.

As prescribed in 225.7004-6(a), use the following clause:

PREFERENCE FOR UNITED STATES AND CANADIAN VALVES AND MACHINE
TOOLS (APR 1995)

(a)     For the purpose of this clause, a valve, machine tool, or machine tool accessory is considered to be of United States or Canadian origin if 

        (1)It is manufactured in the United States or Canada; and
        
        (2)The cost of its components manufactured in the United States or Canada exceeds 50 percent of the cost of all its components. The cost of components includes transportation costs to the place of incorporation into the end item and duty (whether or not a duty-free entry certificate may be issued).

(b)     Unless otherwise specified in its offer, the Contractor agrees that valves used in piping for naval surface ships and submarines within Federal supply classifications 4810 (valves, powered) and 4820 (valves, non-powered), machine tools within the Federal supply classifications for metalworking machinery numbered 3405, 3408, 3410 through 3419, 3426, 3433, 3438, 3441 through 3443, 3445, 3446, 3448 and 3449, and machine tool accessories numbered 3460 and 3461 delivered as end items or purchased indirectly on behalf of the Government under this contract shall be of United States or Canadian origin.

(c)     Unless an exception applies or a waiver is granted under 225.700-4(a) of the Defense Federal Acquisition Regulation Supplement, preference will be given to valves and machine tools of United States or Canadian origin by adding 50 percent to the offered price of all other valves and machine tools for evaluation purposes.

                             (End of clause)

B-4.9                April 21, 1995                  AFAC 92-46

252.225-7029  Preference for United States or Canadian Air Circuit Breakers.

As prescribed in 225.7016-4, use the following clause:

PREFERENCE FOR UNITED STATES OR CANADIAN AIR CIRCUIT BREAKERS
(APR 1995)

(a)     Unless otherwise specified in its offer, the Contractor agrees that air circuit breakers for naval vessels provided under this contract shall be manufactured in the United States or Canada.

(b)     Unless an exception applies or a waiver is granted under 225.7016-3(a) of the Defense Federal Acquisition Regulation Supplement, preference will be given to air circuit breakers manufactured in the United States or Canada by adding 50 percent to the offered price of all other air circuit breakers for evaluation purposes.
                         (End of clause)

AFAC 92-46      April 21, 1995
        B-5


OFFICE OF THE UNDER SECRETARY OF DEFENSE
3000 DEFENSE PENTAGON
WASHINGTON DC 20301-3000

March 3, 1995

ACQUISITION AND
TECHNOLOGY
DP (DAR)

In reply refer to
                DFARS Case: 94-D306
                D. L. 95-005

MEMORANDUM FOR DIRECTORS OF DEFENSE AGENCIES
                        DEPUTY FOR ACQUISITION AND BUSINESS MANAGEMENT, ASN(RD&A) /ABM
                        DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE (CONTRACTING), SAF/AQC
DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS AGENCY

SUBJECT: Federally Funded Research and Development Centers (FFRDCs)

     We have amended the Defense Federal Acquisition Regulation Supplement (DFARS) to implement Section 217 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337) .  Section 217 allows DoD-sponsored FFRDCs that function primarily as research laboratories to respond to solicitations and announcements for programs which promote research, development, demonstration, or transfer of technology.

     This interim DFARS rule is effective immediately and will be published in a future Defense Acquisition Circular.




Eleanor R. Spector
Director, Defense Procurement
Attachment

cc:  DSMC, Ft. Belvoir


AFAC 92-46              April 21, 1995                       B-5

35.017-1 Sponsoring Agreements.

(c)(4)DoD-sponsored FFRDCs that function primarily as research laboratories may respond to solicitations and announcements for programs which promote research, development, demonstration, or transfer of technology (Section 217, Pub. L. 103-337).