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DFARS 225



Part 225—Foreign Acquisition

TABLE OF CONTENTS

(Revised December 11, 2014)

225.001 General.

225.003 Definitions.

225.070 Reporting of acquisition of end products manufactured outside the

SUBPART 225.1--BUY AMERICAN—SUPPLIES

225.101 General.

225.103 Exceptions.

225.105 Determining reasonableness of cost.

225.170 Acquisition from or through other Government agencies.

SUBPART 225.2--BUY AMERICAN--CONSTRUCTION MATERIALS

225.202 Exceptions.

225.206 Noncompliance.

SUBPART 225.3--CONTRACTS PERFORMED OUTSIDE THE UNITED

225.301 Contractor personnel in a designated operational area or supporting a diplomatic or consular mission outside the United

225.301-1 Scope.

225.301-4 Contract clause.

SUBPART 225.4--TRADE AGREEMENTS

225.401 Exceptions.

225.401-70 End products subject to trade agreements.

225.401-71 Products or services in support of operations in Iraq or Afghanistan.

225.402 General.

225.403 World Trade Organization Government Procurement Agreement and Free Trade Agreements.

225.408 Procedures.

SUBPART 225.5--EVALUATING FOREIGN OFFERS--SUPPLY CONTRACTS

225.502 Application.

225.503 Group offers.

225.504 Evaluation examples.

SUBPART 225.7--PROHIBITED SOURCES

225.701 Restrictions.

225.701-70 Exception.

225.770 Prohibition on acquisition of United States Munitions List items

225.770-1 Definitions.

225.770-2 Prohibition.

225.770-3 Exceptions.

225.770-4 Identifying USML items.

225.770-5 Waiver of prohibition.

225.771 Prohibition on contracting or subcontracting with a firm that is owned or controlled by the government of a country that is a state sponsor of terrorism.

225.771-0 Scope.

225.771-1 Definition.

225.771-2 Prohibition.

225.771-3 Notification.

225.771-4 Waiver of prohibition.

225.771-5 Solicitation provision.

225.772 Prohibition on acquisition of commercial satellite services from

225.772-0 Scope.

225.772-1 Definitions.

225.772-2 Prohibition.

225.772-3 Procedures.

225.772-4 Exception.

225.772-5 Solicitation provision.

SUBPART 225.8--OTHER INTERNATIONAL AGREEMENTS AND

225.802 Procedures.

225.802-70 Contracts for performance outside the United States and Canada.

225.802-71 End use certificates.

225.870 Contracting with Canadian contractors.

225.870-1 General.

225.870-2 Solicitation of Canadian contractors.

225.870-3 Submission of offers.

225.870-4 Contracting procedures.

225.870-5 Contract administration.

225.870-6 Termination procedures.

225.870-7 Acceptance of Canadian supplies.

225.870-8 Industrial security.

225.871 North Atlantic Treaty Organization (NATO) cooperative projects.

225.871-1 Scope.

225.871-2 Definitions.

225.871-3 General.

225.871-4 Statutory waivers.

225.871-5 Directed subcontracting.

225.871-6 Disposal of property.

225.871-7 Congressional notification.

225.872 Contracting with qualifying country sources.

225.872-1 General.

225.872-2 Applicability.

225.872-3 Solicitation procedures.

225.872-4 Individual determinations.

225.872-5 Contract administration.

225.872-6 Audit.

225.872-7 Industrial security for qualifying countries.

225.872-8 Subcontracting with qualifying country sources.

225.873 Waiver of United Kingdom commercial exploitation levies.

225.873-1 Policy.

225.873-2 Procedures.

SUBPART 225.9--CUSTOMS AND DUTIES

225.900-70 Definition.

225.901 Policy.

225.902 Procedures.

225.903 Exempted supplies.

SUBPART 225.10--ADDITIONAL FOREIGN ACQUISITION REGULATIONS

225.1070 Clause deviations in overseas contracts.

SUBPART 225.11--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

225.1100 Scope of subpart.

225.1101 Acquisition of supplies.

225.1103 Other provisions and clauses.

SUBPART 225.70--AUTHORIZATION ACTS, APPROPRIATIONS ACTS, AND

225.7000 Scope of subpart.

225.7001 Definitions.

225.7002 Restrictions on food, clothing, fabrics, and hand or measuring tools.

225.7002-1 Restrictions.

225.7002-2 Exceptions.

225.7002-3 Contract clauses.

225.7003 Restrictions on acquisition of specialty metals.

225.7003-1 Definitions.

225.7003-2 Restrictions.

225.7003-3 Exceptions.

225.7003-4 One-time waiver.

225.7003-5 Solicitation provision and contract clauses.

225.7004 Restriction on acquisition of foreign buses.

225.7004-1 Restriction.

225.7004-2 Applicability.

225.7004-3 Exceptions.

225.7004-4 Waiver.

225.7005 Restriction on certain chemical weapons antidote.

225.7005-1 Restriction.

225.7005-2 Exception.

225.7005-3 Waiver.

225.7006 Restriction on air circuit breakers for naval vessels.

225.7006-1 Restriction.

225.7006-2 Exceptions.

225.7006-3 Waiver.

225.7006-4 Solicitation provision and contract clause.

225.7007 Restrictions on anchor and mooring chain.

225.7007-1 Restrictions.

225.7007-2 Waiver.

225.7007-3 Contract clause.

225.7008 Waiver of restrictions of 10 U.S.C. 2534.

225.7009 Restriction on ball and roller bearings.

225.7009-1 Scope.

225.7009-2 Restriction.

225.7009-3 Exception.

225.7009-4 Waiver.

225.7009-5 Contract clause.

225.7010 Reserved.

225.7011 Restriction on carbon, alloy, and armor steel plate.

225.7011-1 Restriction.

225.7011-2 Waiver.

225.7011-3 Contract clause.

225.7012 Restriction on supercomputers.

225.7012-1 Restriction.

225.7012-2 Waiver.

225.7012-3 Contract clause.

225.7013 Restrictions on construction or repair of vessels in foreign shipyards.

225.7014 Restrictions on military construction.

225.7015 Restriction on overseas architect-engineer services.

225.7016 Prohibition.

225.7017 Utilization of domestic photovoltaic devices.

225.7017-1 Definitions.

225.7017-2 Restriction.

225.7017-3 Exceptions.

225.7017-4 Solicitation provisions and contract clauses.

SUBPART 225.71--OTHER RESTRICTIONS ON FOREIGN ACQUISITION

225.7100 Scope of subpart.

225.7101 Definitions.

225.7102 Forgings.

225.7102-1 Policy.

225.7102-2 Exceptions.

225.7102-3 Waiver.

225.7102-4 Contract clause.

SUBPART 225.72--REPORTING CONTRACT PERFORMANCE OUTSIDE THE UNITED STATES

225.7201 Policy.

225.7202 Exception.

225.7203 Contracting officer distribution of reports.

225.7204 Solicitation provision and contract clauses.

SUBPART 225.73--ACQUISITIONS FOR FOREIGN MILITARY SALES

225.7300 Scope of subpart.

225.7301 General.

225.7302 Preparation of letter of offer and acceptance.

225.7303 Pricing acquisitions for FMS.

225.7303-1 Contractor sales to other foreign customers.

225.7303-2 Cost of doing business with a foreign government or an international organization.

225.7303-3 Government-to-government agreements.

225.7303-4 Contingent fees.

225.7303-5 Acquisitions wholly paid for from nonrepayable funds.

225.7304 FMS customer involvement.

225.7305 Limitation of liability.

225.7306 Offset arrangements.

225.7307 Contract clauses.

SUBPART 225.74--DEFENSE CONTRACTORS OUTSIDE THE UNITED

225.7401 Contracts requiring performance or delivery in a foreign country.

225.7402 Contractor personnel supporting U.S. Armed Forces deployed

225.7402-1 Scope.

225.7402-2 Definitions.

225.7402-3 Government support.

225.7402-4 Law of war training.

225.7402-5 Contract clauses.

225.7403 Antiterrorism/force protection.

225.7403-1 General.

225.7403-2 Contract clause.

225.7404 Contract administration in support of contingency operations.

SUBPART 225.75--BALANCE OF PAYMENTS PROGRAM

225.7500 Scope of subpart.

225.7501 Policy.

225.7502 Procedures.

225.7503 Contract clauses.

SUBPART 225.76--SECONDARY ARAB BOYCOTT OF ISRAEL

225.7601 Restriction.

225.7602 Procedures.

225.7603 Exceptions.

225.7604 Waivers.

225.7605 Solicitation provision.

SUBPART 225.77--ACQUISITIONS IN SUPPORT OF OPERATIONS IN AFGHANISTAN

225.7700 Scope.

225.7701 Definitions.

225.7702 Acquisitions not subject to the enhanced authority to acquire products or services from Afghanistan.

225.7702-1 Acquisition of small arms.

225.7702-2 Acquisition of uniform components for the Afghan military or the Afghan policy.

225.7703 Enhanced authority to acquire products or services from Afghanistan.

225.7703-1 Acquisition procedures.

225.7703-2 Determination requirements.

225.7703-3 Evaluating offers.

225.7703-4 Solicitation provisions and contract clauses.

225.7704 Acquisitions of products and services from South Caucasus/Central and South Asian (SC/CASA) states in support of operations in Afghanistan.

225.7704-1 Applicability of trade agreements.

225.7704-2 Applicability of Balance of Payments Program.

225.7704-3 Solicitation provisions and contract clauses.

SUBPART 225.78–ACQUISITIONS IN SUPPORT OF GEOGRAPHIC COMBATANT COMMAND’S THEATER SECURITY COOPERATION EFFORTS

225.7801 Policy.

SUBPART 225.79–EXPORT CONTROL

225.7900 Scope of subpart.

225.7901 Export-controlled items.

225.7901-1 Definitions.

225.7901-2 General.

225.7901-3 Policy.

225.7901-4 Contract clauses.

225.7902 Defense Trade Cooperation Treaty with the United Kingdom.

225.7902-1 Definitions.

225.7902-2 Purpose.

225.7902-3 Policy.

225.7902-4 Procedures.

225.7902-5 Solicitation provision and contract clause.

(Revised February 28, 2014)

225.001 General.

For guidance on evaluating offers of foreign end products, see PGI 225.001.

225.003 Definitions.

As used in this part—

Buy American and Balance of Payments Program; and 252.225-7036, Buy American—Free Trade Agreements—Balance of Payments Program, instead of the meaning in FAR 25.003.

defined in the clauses at 252.225-7001, Buy American and Balance of Payments Program; and 252.225-7036, Buy American–Free Trade Agreements–Balance of Payments Program. "Qualifying country end product" is also defined in the clause at 252.225-7021, Trade Agreements.

(15) “South Caucasus/Central and South Asian (SC/CASA) state construction material” means construction material that

225.070 Reporting of acquisition of end products manufactured outside the United States.

Follow the procedures at PGI 225.070 for entering the data on the acquisition of end products manufactured outside the United States.

SUBPART 225.1--BUY AMERICAN--SUPPLIES

(Revised July 31, 2014)

225.101 General.

225.103 Exceptions.

Buy American statute to end products that are substantially transformed in the United

States.

recommending a public interest exception if the purposes of the Buy American statute

are not served, or in order to meet a need set forth in 10 U.S.C. 2533. For example, a public interest exception may be appropriate—

greater than the simplified acquisition threshold but less than $1.5 million; or

greater than the simplified acquisition threshold but less than $1.5 million; or

acquisitions valued at $1.5 million or more.

225.105 Determining reasonableness of cost.

225.170 Acquisition from or through other Government agencies.

Contracting activities must apply the evaluation procedures in Subpart 225.5 when using Federal supply schedules.

SUBPART 225.2--BUY AMERICAN--CONSTRUCTION MATERIALS

(Revised June 15, 2012)

225.202 Exceptions.

225.206 Noncompliance.

SUBPART 225.3--CONTRACTS PERFORMED OUTSIDE THE UNITED STATES

(Revised November 18, 2013)

225.301 Contractor personnel in a designated operational area or supporting a diplomatic or consular mission outside the United States.

225.301-1 Scope.

(a) “Performance in a designated operational area,” as used in this section, means performance of a service or construction, as required by the contract. For supply contracts, the term includes services associated with the acquisition of supplies (e.g., installation or maintenance), but does not include production of the supplies or associated overhead functions.

(c) For DoD, this section also applies to all personal services contracts.

225.301-4 Contract clause.

(1) Use the clause at FAR 52.225-19, Contractor Personnel in a Designated Operational Area or Supporting a Diplomatic or Consular Mission Outside the United States, in accordance with the prescription at FAR 25.301-4, except that—

SUBPART 225.4--TRADE AGREEMENTS

(Revised September 30, 2013)

225.401 Exceptions.

225.401-70 End products subject to trade agreements.

Acquisitions of end products in the following Federal supply groups (FSG) are covered by trade agreements if the value of the acquisition is at or above the applicable trade agreement threshold and no exception applies. If an end product is not in one of the listed groups, the trade agreements do not apply. The definition of Caribbean Basin country end products in FAR 25.003 excludes those end products that are not eligible for duty-free treatment under 19 U.S.C. 2703(b). Therefore certain watches, watch parts, and luggage from certain Caribbean Basin countries are not eligible products. However, 225.003 expands the definition of Caribbean Basin country end products to include petroleum and any product derived from petroleum, in accordance with Section 8094 of Pub. L. 103-139.

FSG

Category/Description

   

22

Railway equipment

23

Motor vehicles, trailers, and cycles (except 2350 and buses under 2310)

24

Tractors

25

Vehicular equipment components

26

Tires and tubes

29

Engine accessories

30

Mechanical power transmission equipment

32

Woodworking machinery and equipment

34

Metalworking machinery

35

Service and trade equipment

36

Special industry machinery (except 3690)

37

Agricultural machinery and equipment

38

Construction, mining, excavating, and highway maintenance equipment

39

Materials handling equipment

40

Rope, cable, chain and fittings

41

Refrigeration and air conditioning equipment

42

Fire fighting, rescue and safety equipment

43

Pumps and compressors

44

Furnace, steam plant and drying equipment (except 4470)

45

Plumbing, heating, and sanitation equipment

46

Water purification and sewage treatment equipment

47

Piping, tubing, hose, and fitting

48

Valves

49

Maintenance and repair shop equipment (except 4920-4927, 4931-4935, 4960)

53

Hardware and abrasives

54

Prefabricated structures and scaffolding

55

Lumber, millwork, plywood, and veneer

56

Construction and building materials

61

Electric wire, and power and distribution equipment

62

Lighting fixtures and lamps

63

Alarm and signal systems

65

Medical, dental, and veterinary equipment and supplies

66

Instruments and laboratory equipment (except aircraft clocks under 6645) - See FAR 25.003 exclusion of certain watches and watch parts for certain Caribbean Basin countries

67

Photographic equipment

68

Chemicals and chemical products

69

Training aids and devices

70

General purpose ADPE, software, supplies, and support equipment

71

Furniture

72

Household and commercial furnishings and appliances

73

Food preparation and serving equipment

74

Office machines, visible record equipment and ADP equipment

75

Office supplies and devices

76

Books, maps, and other publications

77

Musical instruments, phonographs, and home type radios

78

Recreational and athletic equipment

79

Cleaning equipment and supplies

80

Brushes, paints, sealers, and adhesives

81

Containers, packaging and packing supplies (except 8140)

83

Pins, needles, and sewing kits (only part of 8315) and flag staffs, flagpoles, and flagstaff trucks (only part of 8345)

84

Luggage (only 8460) - See FAR 25.003 for exclusion of luggage for Caribbean Basin countries

85

Toiletries

87

Agricultural supplies

88

Live animals

89

Tobacco products (only 8975)

91

Fuels, oils, and waxes

93

Nonmetallic fabricated materials

94

Nonmetallic crude materials

96

Ores, minerals, and their primary products

99

Miscellaneous

225.401-71 Products or services in support of operations in Afghanistan.

When acquiring products or services, other than small arms, in support of operations in Afghanistan if using a procedure specified in 225.7703-1(a) (2) or (3), the procedures of subpart 25.4 are not applicable.

225.402 General.

To estimate the value of the acquisition, use the total estimated value of end products covered by trade agreements (see 225.401-70).

225.403 World Trade Organization Government Procurement Agreement and Free Trade Agreements.

before accepting any other offers;

or

225.408 Procedures.

SUBPART 225.5--EVALUATING FOREIGN OFFERS--SUPPLY CONTRACTS

(Revised September 30, 2013)

225.502 Application.

subject to the Buy American statute or the Balance of Payments Program:

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).

225.503 Group offers.

Evaluate group offers in accordance with FAR 25.503, but apply the evaluation procedures of 225.502.

225.504 Evaluation examples.

For examples that illustrate the evaluation procedures in 225.502(c)(ii), see PGI 225.504.

SUBPART 225.6

(Removed July 11, 2006)

SUBPART 225.7--PROHIBITED SOURCES

(Revised December 11, 2014)

225.701 Restrictions.

225.701-70 Exception.

DoD personnel are authorized to make emergency acquisitions in direct support of U.S. or allied forces deployed in military contingency, humanitarian, or peacekeeping operations in a country or region subject to economic sanctions administered by the Department of the Treasury, Office of Foreign Assets Control.

225.770 Prohibition on acquisition of United States Munitions List items from Communist Chinese military companies.

This section implements section 1211 of the National Defense Authorization Act for Fiscal Year 2006 (Pub. L. 109-163) and section 1243 of the National Defense Authorization Act for Fiscal Year 2012 (Pub. L. 112-81). See PGI 225.770 for additional information relating to this statute, the terms used in this section, and the United States Munitions List.

225.770-1 Definitions.

As used in this section—

225.770-2 Prohibition.

Do not acquire supplies or services covered by the United States Munitions List (USML) (22 CFR Part 121), through a contract or subcontract at any tier, from any Communist Chinese military company. This prohibition does not apply to components and parts of covered items unless the components and parts are themselves covered by the USML.

225.770-3 Exceptions.

The prohibition in 225.770-2 does not apply to supplies or services acquired—

225.770-4 Identifying USML items.

225.770-5 Waiver of prohibition.

See DoD Class Deviation 2014-O0020, Class Deviation-Prohibition on Contracting with the Enemy. This deviation is applicable to solicitations and contracts awarded on or before December 31, 2018, with an estimated value in excess of $50,000 that are being, or will be performed, in the U.S. Central Command, U.S. European Command, U.S. Africa Command, U.S. Southern Command, or U.S. Pacific Command theaters of operation.

225.771 Prohibition on contracting or subcontracting with a firm that is owned or controlled by the government of a country that is a state sponsor of terrorism.

225.771-0 Scope.

This section implements 10 U.S.C. 2327(b).

225.771-1 Definition.

“State sponsor of terrorism,” as used in this section, is defined in the provision at 252.225-7050, Disclosure of Ownership or Control by the Government of a Country that is a State Sponsor of Terrorism.

225.771-2 Prohibition.

225.771-3 Notification.

Any disclosure that the government of a country that is a state sponsor of terrorism has a significant interest in an offeror, a subsidiary of an offeror, or any other firm that owns or controls an offeror shall be forwarded through agency channels to the address at PGI 225.771-3.

225.771-4 Waiver of prohibition.

The prohibition in 225.771-2 may be waived if the Secretary of Defense determines that a waiver is not inconsistent with the national security objectives of the United States in accordance with 10 U.S.C. 2327(c).

225.771-5 Solicitation provision.

Use the provision at 252.225-7050, Disclosure of Ownership or Control by the Government of a Country that is a State Sponsor of Terrorism, in solicitations, including solicitations using FAR part 12 procedures for the acquisition of commercial items (other than commercial satellite services), that are expected to result in contracts of $150,000 or more. If the solicitation includes the provision at FAR 52.204-7, do not separately list the provision 252.225-7050 in the solicitation.

225.772 Prohibition on acquisition of commercial satellite services from certain foreign entities.

225.772-0 Scope.

This section implements 10 U.S.C. 2279.

225.772-1 Definitions.

As used in this section, “covered foreign country,” “foreign entity,” “government of a covered foreign country,” “satellite services,” and “state sponsor of terrorism” are defined in the provision at 252.225-7049, Prohibition on Acquisition of Commercial Satellite Services from Certain Foreign Entities—Representations.

225.772-2 Prohibition.

The contracting officer shall not award a contract for commercial satellite services to—

225.772-3 Procedures.

225.772-4 Exception.

225.772-5 Solicitation provision.

Use the provision at 252.225-7049, Prohibition on Acquisition of Commercial Satellite Services from Certain Foreign Entities—Representations, in solicitations for the acquisition of commercial satellite services. If the solicitation includes the provision at FAR 52.204-7, do not separately list the provision 252.225-7049 in the solicitation.

SUBPART 225.8--OTHER INTERNATIONAL AGREEMENTS AND COORDINATION

(Revised October 31, 2013)

225.802 Procedures.

225.802-70 Contracts for performance outside the United States and Canada.

Follow the procedures at PGI 225.802-70 when placing a contract requiring performance outside the United States and Canada. Also see subpart 225.74, DefenseContractors Outside the United States.

225.802-71 End use certificates.

Contracting officers considering the purchase of an item from a foreign source may encounter a request for the signing of a certificate to indicate that the Armed Forces of the United States is the end user of the item, and that the U.S. Government will not transfer the item to third parties without authorization from the Government of the country selling the item. When encountering this situation, refer to DoD Directive 2040.3, End Use Certificates, for guidance.

225.870 Contracting with Canadian contractors.

225.870-1 General.

225.870-2 Solicitation of Canadian contractors.

225.870-3 Submission of offers.

225.870-4 Contracting procedures.

(4) Except for contracts described in 225.870-1(c)(1) through (4), Canadian suppliers will provide required data other than certified cost or pricing data exclusively through the Canadian Commercial Corporation.

(5) As specified in FAR 15.403-3(a)(4), an offeror who does not comply with a requirement to submit data that the contracting officer has deemed necessary to determine price reasonableness or cost realism is ineligible for award, unless the head of the contracting activity determines that it is in the best interest of the Government to make the award to that offeror, based on consideration of the following:

that provide for payment in Canadian currency shall—

225.870-5 Contract administration.

Follow the contract administration procedures at PGI 225.870-5.

225.870-6 Termination procedures.

When contract termination is necessary, follow the procedures at 249.7000.

225.870-7 Acceptance of Canadian supplies.

For information on the acceptance of Canadian supplies, see PGI 225.870-7.

225.870-8 Industrial security.

Industrial security for Canada shall be in accordance with the U.S.-Canada Industrial Security Agreement of March 31, 1952, as amended.

225.871 North Atlantic Treaty Organization (NATO) cooperative projects.

225.871-1 Scope.

This section implements 22 U.S.C. 2767 and 10 U.S.C. 2350b.

225.871-2 Definitions.

As used in this section--

225.871-3 General.

225.871-4 Statutory waivers.

225.871-5 Directed subcontracting.

225.871-6 Disposal of property.

Dispose of property that is jointly acquired by the members of a cooperative project under the procedures established in the agreement or in a manner consistent with the terms of the agreement, without regard to any laws of the United States applicable to the disposal of property owned by the United States.

225.871-7 Congressional notification.

225.872 Contracting with qualifying country sources.

225.872-1 General.

225.872-2 Applicability.

225.872-3 Solicitation procedures.

225.872-4 Individual determinations.

If the offer of an end product from a qualifying country source listed in 225.872-1(b), as evaluated, is low or otherwise eligible for award, prepare a determination and findings exempting the acquisition from the Buy American statute and the Balance of Payments Program as inconsistent with the public interest, unless another exception such as the Trade Agreements Act applies. Follow the procedures at PGI 225.872-4.

225.872-5 Contract administration.

225.872-6 Audit.

225.872-7 Industrial security for qualifying countries.

The required procedures for safeguarding classified defense information necessary for the performance of contracts awarded to qualifying country sources are in the DoD Industrial Security Regulation DoD 5220.22-R (implemented for the Army by AR 380-49; for the Navy by SECNAV Instruction 5510.1H; for the Air Force by AFI 31-601; for the Defense Information Systems Agency by DCA Instruction 240-110-8; and for the National Imagery and Mapping Agency by NIMA Instruction 5220.22).

225.872-8 Subcontracting with qualifying country sources.

In reviewing contractor subcontracting procedures, the contracting officer shall ensure that the contract does not preclude qualifying country sources from competing for subcontracts, except when restricted by national security interest reasons, mobilization base considerations, or applicable U.S. laws or regulations (see the clause at 252.225-7002, Qualifying Country Sources as Subcontractors).

225.873 Waiver of United Kingdom commercial exploitation levies.

225.873-1 Policy.

DoD and the Government of the United Kingdom (U.K.) have agreed to waive U.K. commercial exploitation levies and U.S. nonrecurring cost recoupment charges on a reciprocal basis. For U.K. levies to be waived, the offeror or contractor shall identify the levies and the contracting officer shall request a waiver before award of the contract or subcontract under which the levies are charged.

225.873-2 Procedures.

When an offeror or a contractor identifies a levy included in an offered or contract price, follow the procedures at PGI 225.873-2.

SUBPART 225.9--CUSTOMS AND DUTIES

(Revised December 24, 2009)

225.900-70 Definition.

“Component,” as used in this subpart, means any item supplied to the Government as part of an end product or of another component.

225.901 Policy.

Unless the supplies are entitled to duty-free treatment under a special category in the Harmonized Tariff Schedule of the United States (e.g., the Caribbean Basin Economic Recovery Act or a Free Trade Agreement), or unless the supplies already have entered into the customs territory of the United States and the contractor already has paid the duty, DoD will issue duty-free entry certificates for—

225.902 Procedures.

Follow the entry and release procedures at PGI 225.902.

225.903 Exempted supplies.

SUBPART 225.10--ADDITIONAL FOREIGN ACQUISITION REGULATIONS

(Added April 13, 2000)

225.1070 Clause deviations in overseas contracts.

See 201.403(2) for approval authority for clause deviations in overseas contracts with governments of North Atlantic Treaty Organization (NATO) countries or other allies or with United Nations or NATO organizations.

SUBPART 225.11--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

(Revised November 5, 2014)

225.1100 Scope of subpart.

This subpart prescribes the clauses that implement Subparts 225.1 through 225.10. The clauses that implement Subparts 225.70 through 225.75 are prescribed within those subparts.

225.1101 Acquisition of supplies.

Payments Program.

may result in the application of trade agreements to only some of the items acquired. In such case, indicate in the Schedule those items covered by the Trade Agreements clause.

Free Trade Agreements—Balance of Payments Program Certificate, instead of the provision at FAR 52.225-4, Buy American—Free Trade Agreements—Israeli Trade Act Certificate, in solicitations, including solicitations using FAR part 12 procedures for the acquisition of commercial items, that include the basic or an alternate of the clause at 252.225-7036, Buy American—Free Trade Agreements—Balance of Payments Program. If the solicitation includes the provision at FAR 52.204-7, do not separately list the provision 252.225-7035 in the solicitation.

225.1103 Other provisions and clauses.

(3) Use the provision at 252.225-7042, Authorization to Perform, in solicitations when contract performance will be wholly or in part in a foreign country. If the solicitation includes the provision at FAR 52.204-7, do not separately list the provision 252.225-7042 in the solicitation.

SUBPART 225.70--AUTHORIZATION ACTS, APPROPRIATIONS ACTS, AND OTHER STATUTORY RESTRICTIONS ON FOREIGN ACQUISITION

(Revised July 31, 2014)

225.7000 Scope of subpart.

the Balance of Payments Program.

225.7001 Definitions.

As used in this subpart—

225.7002 Restrictions on food, clothing, fabrics, and hand or measuring tools.

225.7002-1 Restrictions.

The following restrictions implement 10 U.S.C. 2533a (the “Berry Amendment”). Except as provided in subsection 225.7002-2, do not acquire—

For additional guidance, see PGI 225.7002-1(b).

225.7002-2 Exceptions.

Acquisitions in the following categories are not subject to the restrictions in 225.7002-1:

225.7002-3 Contract clauses.

See DoD Class Deviation 2014-O0010, Acquisition of the American Flag, issued February 21, 2014. This deviation is effective for contract actions issued using DoD funds appropriated by the Department of Defense Appropriations Act, 2014 (Pub. L. 113-76, Division C).

Unless an exception applies—

in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items, that exceed the

simplified acquisition threshold.

225.7003 Restrictions on acquisition of specialty metals.

225.7003-1 Definitions.

As used in this section—

225.7003-2 Restrictions.

The following restrictions implement 10 U.S.C. 2533b. Except as provided in 225.7003-3

225.7003-3 Exceptions.

(a) Acquisitions in the following categories are not subject to the restrictions in 225.7003-2:

(1) Acquisitions at or below the simplified acquisition threshold.

(b) One or more of the following exceptions may apply to an end item or component that includes any of the following, under a prime contract or subcontract at any tier. The restrictions in 225.7003-2 do not apply to the following:

The supporting documentation for the determination shall include—

(c) Compliance for commercial derivative military articles. The restrictions at 225.7003-2(a) do not apply to an item acquired under a prime contract if—

(2) The USD(AT&L), or the Secretary of the military department concerned, determines that the item is a commercial derivative military article (defense agencies see procedures at PGI 225.7003-3(c)). The contracting officer shall submit the offeror’s certification and a request for a determination to the appropriate official, through agency channels, and shall notify the offeror when a decision has been made.

(3) Because national security waivers will only be granted when the acquisition in question is necessary to the national security interests of the United States, the requirement for a plan will be applied as a condition subsequent, and not a condition precedent, to the granting of a waiver.

225.7003-4 One-time waiver.

DoD may accept articles containing specialty metals that are not in compliance with the specialty metals clause of the contract if—

225.7003-5 Solicitation provision and contract clauses.

Metals, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items, that—

all of the items will be used in support of combat operations or in support of contingency operations, the contracting officer should not rely on the exception at 225.7003-3(a)(2) or (3), but should include the appropriate specialty metals clause or provision in the solicitation and contract.

225.7004 Restriction on acquisition of foreign buses.

225.7004-1 Restriction.

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.

225.7004-2 Applicability.

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

225.7004-3 Exceptions.

This restriction does not apply in any of the following circumstances:

225.7004-4 Waiver.

The waiver criteria at 225.7008(a) apply to this restriction.

225.7005 Restriction on certain chemical weapons antidote.

225.7005-1 Restriction.

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 chemical weapons antidote or component is manufactured in the United States or Canada by a company that—

225.7005-2 Exception.

This restriction does not apply if the acquisition is for an amount at or below the simplified acquisition threshold.

225.7005-3 Waiver.

The waiver criteria at 225.7008(a) apply to this restriction.

225.7006 Restriction on air circuit breakers for naval vessels.

225.7006-1 Restriction.

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.

225.7006-2 Exceptions.

This restriction does not apply if the acquisition is—

225.7006-3 Waiver.

225.7006-4 Solicitation provision and contract clause.

unless--

225.7007 Restrictions on anchor and mooring chain.

225.7007-1 Restrictions.

225.7007-2 Waiver.

225.7007-3 Contract clause.

Unless a waiver has been granted, use the clause at 252.225-7019, Restriction on Acquisition of Anchor and Mooring Chain, in solicitations and contracts requiring welded shipboard anchor or mooring chain four inches or less in diameter.

225.7008 Waiver of restrictions of 10 U.S.C. 2534.

225.7009 Restriction on ball and roller bearings.

225.7009-1 Scope.

This section implements Section 8065 of the Fiscal Year 2002 DoD Appropriations Act (Pub. L. 107-117) and the same restriction in subsequent DoD appropriations acts.

225.7009-2 Restriction.

225.7009-3 Exception.

The restriction in 225.7009-2 does not apply to contracts or subcontracts for the acquisition of commercial items, except for commercial ball and roller bearings acquired as end items.

225.7009-4 Waiver.

The Secretary of the department responsible for acquisition or, for the Defense Logistics Agency, the Component Acquisition Executive, may waive the restriction in 225.7009-2, on a case-by-case basis, by certifying to the House and Senate Committees on Appropriations that--

225.7009-5 Contract clause.

Use the clause at 252.225-7016, Restriction on Acquisition of Ball and Roller Bearings, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items, unless—

225.7010 Reserved.

225.7011 Restriction on carbon, alloy, and armor steel plate.

225.7011-1 Restriction.

225.7011-2 Waiver.

The Secretary of the department responsible for acquisition may waive this restriction, on a case-by-case basis, by certifying to the House and Senate Committees on Appropriations that—

225.7011-3 Contract clause.

Unless a waiver has been granted, use the clause at 252.225-7030, Restriction on Acquisition of Carbon, Alloy, and Armor Steel Plate, in solicitations and contracts that—

225.7012 Restriction on supercomputers.

225.7012-1 Restriction.

In accordance with Section 8112 of Pub. L. 100-202, and similar sections in subsequent DoD appropriations acts, do not purchase a supercomputer unless it is manufactured in the United States.

225.7012-2 Waiver.

The Secretary of Defense may waive this restriction, on a case-by-case basis, after certifying to the Armed Services and Appropriations Committees of Congress that—

225.7012-3 Contract clause.

Unless a waiver has been granted, use the clause at 252.225-7011, Restriction on Acquisition of Supercomputers, in solicitations and contracts for the acquisition of supercomputers.

225.7013 Restrictions on construction or repair of vessels in foreign shipyards.

In accordance with 10 U.S.C. 7309 and 7310—

225.7014 Restrictions on military construction.

225.7015 Restriction on overseas architect-engineer services.

For restriction on award of architect-engineer contracts to be performed in Japan, in any North Atlantic Treaty Organization member country, or in countries bordering the

Arabian Sea, see 236.602-70.

225.7016 Prohibition on requiring the use of fire-resistant rayon fiber.

In accordance with section 821 of the National Defense Authorization Act for Fiscal Year 2011, do not include in any solicitation issued before January 1, 2015, a requirement that proposals submitted pursuant to such solicitation shall include the use of fire-resistant rayon fiber. However, this does not preclude issuing a solicitation that allows offerors to propose the use of fire-resistant rayon fiber.

225.7017 Utilization of domestic photovoltaic devices.

225.7017-1 Definitions. As used in this section—

225.7017-2 Restriction.

In accordance with section 846 of the National Defense Authorization Act for Fiscal Year 2011, photovoltaic devices provided under any covered contract shall comply with 41 U.S.C. chapter 83, Buy American, subject to the exceptions to that statute provided in the Trade Agreements Act of 1979 (19 U.S.C. 2501 et seq.) or otherwise provided by law.

225.7017-3 Exceptions.

DoD requires the contractor to utilize domestic photovoltaic devices in covered contracts, with the following exceptions:

(c) Trade agreements.

covered contracts that utilize photovoltaic devices that are valued at $204,000 or more, only U.S.-made photovoltaic devices, designated country photovoltaic devices, or qualifying country photovoltaic devices may be utilized.

225.7017-4 Solicitation provisions and contract clauses.

SUBPART 225.71--OTHER RESTRICTIONS ON FOREIGN ACQUISITION

(Revised December 24, 2009)

225.7100 Scope of subpart.

This subpart contains foreign product restrictions that are based on policies designed to protect the defense industrial base.

225.7101 Definitions.

“Component” and “domestic manufacture,” as used in this subpart, are defined in the clause at 252.225-7025, Restriction on Acquisition of Forgings.

225.7102 Forgings.

225.7102-1 Policy.

When acquiring the following forging items, whether as end items or components, acquire items that are of domestic manufacture to the maximum extent practicable:

ITEMS

CATEGORIES

   

Ship propulsion shafts

Excludes service and landing craft shafts

Periscope tubes

All

Ring forgings for bull gears

All greater than 120 inches in diameter

225.7102-2 Exceptions.

The policy in 225.7102-1 does not apply to acquisitions—

225.7102-3 Waiver.

Upon request from a contractor, the contracting officer may waive the requirement for domestic manufacture of the items listed in 225.7102-1.

225.7102-4 Contract clause.

Use the clause at 252.225-7025, Restriction on Acquisition of Forgings, in solicitations and contracts, unless—

SUBPART 225.72--REPORTING CONTRACT PERFORMANCE OUTSIDE THE UNITED STATES

(Revised December 11, 2014)

225.7201 Policy.

10 U.S.C. 2410g requires offerors and contractors to notify DoD of any intention to perform a DoD contract outside the United States and Canada when the contract could be performed inside the United States or Canada.

225.7202 Exception.

This subpart does not apply to contracts for commercial items, construction, ores, natural gas, utilities, petroleum products and crudes, timber (logs), or subsistence.

225.7203 Contracting officer distribution of reports.

Follow the procedures at PGI 225.7203 for distribution of reports submitted with offers in accordance with the provision at 252.225-7003, Report of Intended Performance Outside the United States and Canada—Submission with Offer.

225.7204 Solicitation provision and contract clauses.

Except for acquisitions described in 225.7202

SUBPART 225.73--ACQUISITIONS FOR FOREIGN MILITARY SALES

(Revised December 6, 2013)

225.7300 Scope of subpart.

225.7301 General.

225.7302 Preparation of letter of offer and acceptance.

For FMS programs that will require an acquisition, the contracting officer shall assist the DoD implementing agency responsible for preparing the Letter of Offer and Acceptance (LOA) by—

225.7303 Pricing acquisitions for FMS.

225.7303-1 Contractor sales to other foreign customers.

If the contractor has made sales of the item required for the foreign military sale to foreign customers under comparable conditions, including quantity and delivery, price the FMS contract in accordance with FAR Part 15.

225.7303-2 Cost of doing business with a foreign government or an international organization.

225.7303-3 Government-to-government agreements.

If a government-to-government agreement between the United States and a foreign government for the sale, coproduction, or cooperative logistic support of a specifically defined weapon system, major end item, or support item, contains language in conflict with the provisions of this section, the language of the government-to-government agreement prevails.

225.7303-4 Contingent fees.

225.7303-5 Acquisitions wholly paid for from nonrepayable funds.

225.7304 FMS customer involvement.

225.7305 Limitation of liability.

Advise the contractor when the foreign customer will assume the risk for loss or damage under the appropriate limitation of liability clause(s) (see FAR Subpart 46.8). Consider the costs of necessary insurance, if any, obtained by the contractor to cover the risk of loss or damage in establishing the FMS contract price.

225.7306 Offset arrangements.

In accordance with the Presidential policy statement of April 16, 1990, DoD does not encourage, enter into, or commit U.S. firms to FMS offset arrangements. The decision whether to engage in offsets, and the responsibility for negotiating and implementing offset arrangements, resides with the companies involved. (Also see 225.7303-2(a)(3).)

225.7307 Contract clauses.

Military Sales, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items, that are for FMS. Insert in paragraph (b)(1) of the clause the name(s) of any foreign country customer(s) listed in 225.7303-4(b).

SUBPART 225.74--DEFENSE CONTRACTORS OUTSIDE THE UNITED STATES

(Revised May 28, 2014)

225.7401 Contracts requiring performance or delivery in a foreign country.

http://www.eur.army.mil/g1/content/CPD/docper.html.

225.7402 Contractor personnel supporting U.S. Armed Forces deployed outside the United States.

For additional information on contractor personnel authorized to accompany the U.S. Armed Forces, see PGI 225.7402.

225.7402-1 Scope.

225.7402-2 Definition.

“Designated operational area” is defined in the clause at 252.225-7040. See PGI 225.7402-2 for additional information on designated operational areas.

225.7402-3 Government support.

225.7402-4 Law of war training.

225.7402-5 Contract clauses.

Use the clause 252.225-7985, Contractor Personnel Performing in Support of Operation United Assistance (OUA) in the United States Africa Command (USAFRICOM) Theater of Operations (DEVIATION 2015-O0003), in solicitations and contracts that will require contractor personnel to perform construction or services, or to deliver supplies, in support of OUA in the USAFRICOM theater of operations.

Use the clause 252.225-7995, Contractor Personnel Performing in the United States Central Command Area of Responsibility (DEVIATION 2014-O0018)(JULY 2014), in lieu of DFARS 252.225-7040, in all solicitations and contracts that require performance in the United States Central Command Area of Responsibility. This class deviation remains in effect until incorporated in the DFARS or otherwise rescinded.

Use the clause 252.225-7987, Requirements for Contractor Personnel Performing in USSOUTHCOM Area of Responsibility (DEVIATION 2014-O0016)(OCT 2014), in all solicitations and contracts that require performance in the USSOUTHCOM Area of Responsibility, unless the clause at DFARS 252.225-7040 applies. This class deviation remains in effect until incorporated in the DFARS or otherwise rescinded.

225.7403 Antiterrorism/force protection.

225.7403-1 General.

Information and guidance pertaining to DoD antiterrorism/force protection policy for contracts that require performance or travel outside the United States can be obtained from the offices listed in PGI 225.7403-1.

225.7403-2 Contract clause.

Use the clause at 252.225-7043, Antiterrorism/Force Protection Policy for Defense Contractors Outside the United States, in solicitations and contracts, and contracts using FAR part 12 procedures for the acquisition of commercial items, that require performance or travel outside the United States, except for contracts with

225.7404 Contract administration in support of contingency operations.

For additional guidance on contract administration considerations when supporting contingency operations, see PGI 225.7404.

SUBPART 225.75--BALANCE OF PAYMENTS PROGRAM

(Revised November 5, 2014)

225.7500 Scope of subpart.

This subpart provides policies and procedures implementing the Balance of Payments Program. It applies to contracts for the acquisition of—

225.7501 Policy.

Acquire only domestic end products for use outside the United States, and use only domestic construction material for construction to be performed outside the United States, including end products and construction material for foreign military sales, unless—

225.7502 Procedures.

If the Balance of Payments Program applies to the acquisition, follow the procedures at PGI 225.7502.

225.7503 Contract clauses.

Unless the entire acquisition is exempt from the Balance of Payments Program—

SUBPART 225.76—SECONDARY ARAB BOYCOTT OF ISRAEL

(Revised June 25, 2013)

225.7601 Restriction.

In accordance with 10 U.S.C. 2410i, do not enter into a contract with a foreign entity unless it has certified that it does not comply with the secondary Arab boycott of Israel.

225.7602 Procedures.

For contracts awarded to the Canadian Commercial Corporation (CCC), the CCC will submit a certification from its proposed subcontractor with the other required precontractual information (see 225.870).

225.7603 Exceptions.

This restriction does not apply to—

225.7604 Waivers.

The Secretary of Defense may waive this restriction on the basis of national security interests. To request a waiver, follow the procedures at PGI 225.7604.

225.7605 Solicitation provision.

Unless an exception at 225.7603 applies or a waiver has been granted in accordance with 225.7604, use the provision at 252.225-7031, Secondary Arab Boycott of Israel, in all solicitations, including solicitations using FAR part 12 procedures for the acquisition of commercial items. If the solicitation includes the provision at FAR 52.204-7, do not separately list 252.225-7031 in the solicitation.

SUBPART 225.77—ACQUISITIONS IN SUPPORT OF OPERATIONS IN AFGHANISTAN

(Revised September 30, 2014)

225.7700 Scope.

This subpart implements—

225.7701 Definitions.

As used in this subpart—

“Product from Afghanistan” means a product that is mined, produced, or manufactured in Afghanistan.

“Service from Afghanistan” means a service including construction that is performed in Afghanistan predominantly by citizens or permanent resident aliens of Afghanistan.

“Small arms” means pistols and other weapons less than 0.50 caliber.

“Source from Afghanistan” means a source that—

“Textile component” is defined in the clause at 252.225-7029, Acquisition of Uniform Components for Afghan Military or Afghan National Police.

225.7702-1 Acquisition of small arms.

225.7702-2 Acquisition of uniform components for the Afghan military or the Afghan police.

Any textile components supplied by DoD to the Afghan National Army or the Afghan National Police for purpose of production of uniforms shall be produced in the United States.

225.7703 Enhanced authority to acquire products or services from Afghanistan.

225.7703-1 Acquisition procedures.

be acquired by—

225.7703-2 Determination requirements.

Before use of a procedure specified in 225.7703-1(a), a written determination must be prepared and executed as follows:

225.7703-3 Evaluating offers.

Evaluate offers submitted in response to solicitations that include the provision at 252.225-7023, Preference for Products or Services from Afghanistan, as follows:

225.7703-4 Solicitation provisions and contract clauses.

(2) 252.225-7001, Buy American Act and Balance of Payments Program.

(3) 252.225-7002, Qualifying Country Sources as Subcontractors.

(4) 252.225-7035, Buy American Act—Free Trade Agreements—Balance of Payments Program Certificate.

(5) 252.225-7036, Buy American Act—Free Trade Agreements—Balance of Payments Program.

(6) 252.225-7044, Balance of Payments Program—Construction Material.

(7) 252.225-7045, Balance of Payments Program—Construction Material Under Trade Agreements.

225.7704 Acquisitions of products and services from South Caucasus/Central and South Asian (SC/CASA) state in support of operations in Afghanistan.

225.7704-1 Applicability of trade agreements.

As authorized by the United States Trade Representative, the Secretary of Defense has waived the prohibition in section 302(a) of the Trade Agreements Act (see subpart 225.4) for acquisitions by DoD, and by GSA on behalf of DoD, of products and services from SC/CASA states in direct support of operations in Afghanistan.

225.7704-2 Applicability of Balance of Payments Program.

The Deputy Secretary of Defense has determined, because of importance to national security, that it would be inconsistent with the public interest to apply the provisions of the Balance of Payments Program (see subpart 225.75) to offers of end products other than arms, ammunition, and war materials (i.e., end products listed in 225.401-70) and construction materials from the SC/CASA states that are being acquired by or on behalf of DoD in direct support of operations in Afghanistan.

225.7704-3 Solicitation provisions and contract clauses.

Appropriate solicitation provisions and contract clauses are prescribed as alternates to the Buy American-Trade Agreements-Balance of Payments Program solicitation provisions and contract clauses prescribed at 225.1101 and 225.7503.

225.7799 Authority to acquire products and services (including construction) from countries along a major supply route of supply to Afghanistan and Afghanistan.

See Class Deviation 2014-O00014, dated April 4, 2014, implementing section 801 of the FY 2010 National Defense Authorization Act (NDAA), as most recently amended by section 832 of the FY 2014 NDAA and section 886 of the FY 2008 NDAA, as amended by section 842 of the FY 2013 NDAA. Contracting officers shall limit competition to, or provide a preference for products mined, produced, or manufactured in, or services from the Central Asian states of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, or Uzbekistan or from Afghanistan before considering other sourcing options that include Pakistan and the South Caucasus.

See DoD Class Deviation 2014-O0020, Class Deviation-Prohibition on Contracting with the Enemy. This deviation is applicable to solicitations and contracts awarded on or before December 31, 2018, with an estimated value in excess of $50,000 that are being, or will be performed, in the U.S. Central Command, U.S. European Command, U.S. Africa Command, U.S. Southern Command, or U.S. Pacific Command theaters of operation.

SUBPART 225.78—ACQUISITIONS IN SUPPORT OF GEOGRAPHIC COMBATANT COMMAND’S THEATER SECURITY COOPERATION EFFORTS

(Added May 11, 2011)

225.7801 Policy.

For guidance on procurement support of the geographic combatant command’s theater security cooperation efforts, see PGI 225.78.

SUBPART 225.79—EXPORT CONTROL

(Revised June 26, 2013)

225.7900 Scope of subpart.

This subpart implements –

225.7901 Export-controlled items.

This section implements section 890(a) of the National Defense Authorization Act for Fiscal Year 2008 (Pub. L. 110-181).

225.7901-1 Definitions.

“Export-controlled items,” as used in this section, is defined in the clause at 252.225-7048.

225.7901-2 General.

Certain types of items are subject to export controls in accordance with the Arms Export Control Act (22 U.S.C. 2751, et seq.), the International Traffic in Arms Regulations (22 CFR Parts 120-130), the Export Administration Act of 1979, as amended (50 U.S.C. App. 2401 et seq.), and the Export Administration Regulations (15 CFR Parts 730-774). See PGI 225.7901-2 for additional information.

225.7901-3 Policy.

225.7901-4 Contract clauses.

Use the clause at 252.225-7048, Export-Controlled Items, in all solicitations and contracts.

225.7902 Defense Trade Cooperation Treaties.

This section implements the Defense Trade Cooperation (DTC) Treaties with Australia and the United Kingdom and the associated Implementing Arrangements for DoD solicitations and contracts that authorize prospective contractors and contractors to use the DTC Treaties to respond to DoD solicitations and in the performance of DoD contracts.

225.7902-1 Definitions.

"Approved community," “defense articles," “Defense Trade Cooperation (DTC) Treaty”, "export," “Implementing Arrangement," “qualifying defense articles,” "transfer," and "U.S. DoD Treaty-eligible requirements" are defined in contract clause DFARS 252.225-7047, Exports by Approved Community Members in Performance of the Contract.

225.7902-2 Purpose.

The DTC Treaties permits the export of certain U.S. defense articles, technical data, and defense services, without U.S. export licenses or other written authorization under the International Traffic in Arms Regulation (ITAR) into and within the Approved Community, as long as the exports are in support of purposes specified in the DTC Treaties. All persons must continue to comply with statutory and regulatory requirements outside of DFARS and ITAR concerning the import of defense articles and defense services or the possession or transfer of defense articles, including, but not limited to, regulations issued by the Bureau of Alcohol, Tobacco, Firearms and Explosives found at 27 CFR Parts 447, 478, and 479, which are unaffected by the DTC Treaties. The Approved Community consists of U.S. entities that are registered with the Department of State and are eligible exporters, the U.S. Government, and certain governmental and commercial facilities in Australia and the United Kingdom that are approved and listed by the U.S. Government. See PGI 225.7902-2 for additional information.

225.7902-3 Policy.

DoD will facilitate maximum use of the DTC Treaties by prospective contractors responding to DoD solicitations and by contractors eligible to export qualifying defense articles under DoD contracts in accordance with 22 CFR 126.16(g) and 22 CFR 126.17(g).

225.7902-4 Procedures.

(a) For all solicitations and contracts that may be eligible for DTC Treaty coverage (see PGI 225.7902-4(1)), the program manager shall identify in writing and submit to the contracting officer prior to issuance of a solicitation and prior to award of a contract—

(1) The qualifying DTC Treaty Scope paragraph (Article 3(1)(a), 3(1)(b), or 3(1)(d) of the U.S.-Australia DTC Treaty or Article (3)(1)(a), (3(1)(b), or 3(1)(d) of the U.S.-U.K. DTC Treaty); and

(2) The qualifying defense article(s) using the categories described in 22 CFR 126.16(g) and 22 CFR 126.17(g).

(b) If applicable, the program manager shall also identify in writing and submit to the contracting officer any specific Part C, DTC Treaty-exempted technology list items, terms and conditions for applicable contract line item numbers (See PGI 225.7902-4(2)).

225.7902-5 Solicitation provision and contract clause.

(a) Use the provision at 252.225-7046, Exports by Approved Community Members in Response to the Solicitation, in solicitations containing the clause at 252.225-7047.

(b)(1) Use the clause at 252.225-7047, Exports by Approved Community Members in Performance of the Contract, in solicitations and contracts when—

(i) Export-controlled items are expected to be involved in the performance of the contract and the clause at 252.225-7048 is used; and

(ii) At least one contract line item is intended to satisfy a U.S. DoD Treaty-eligible requirement.

(2) The contracting officer shall complete paragraph (b) of the clause using information the program manager provided as required by 225.7902-4(a).

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