
97-82
Procurement Notice
BACKGROUND: This PN revises the NASA FAR Supplement to implement the
determination of the Assistant Administrator for Procurement that, for
procurements subject to the Trade Agreements Act, it would be inconsistent with
the public interest to apply the Buy American Act for U.S.-made end products
that are substantially transformed in the United States.
ACQUISITIONS AFFECTED BY CHANGES: All procurements subject to the Trade Agreements Act.
ACTION REQUIRED BY CONTRACTING OFFICERS: Comply with existing procedures at FAR 25.1101(c)(1).
CLAUSE CHANGES: This PN makes no changes to clauses or provisions.
PARTS AFFECTED: Changes are made in Part 1825.
REPLACEMENT PAGES: You may use the enclosed pages to Part1825.
TYPE OF RULE AND PUBLICATION DATE: The PN was published as a final rule in the Federal Register (68 FR 11747 - 11748) on March 12, 2003.
HEADQUARTERS CONTACT: Patrick Flynn, Code HK, (202) 358-0460, email: Patrick.Flynn@nasa.gov.
R. Scott Thompson
Director, Contract Management Division
Enclosures
PART 1825
FOREIGN ACQUISITION
TABLE OF
CONTENTS
1825.003 Definitions.
1825.003-70 NASA
definitions.
SUBPART 1825.1 BUY AMERICAN ACT--SUPPLIES
1825.103 Exceptions
SUBPART 1825.4 TRADE AGREEMENTS
1825.400 Scope
of subpart.
SUBPART 1825.9 CUSTOMS AND DUTIES
1825.901 Policy.
1825.903 Exempted
supplies.
SUBPART 1825.10 ADDITIONAL FOREIGN ACQUISITION
REGULATIONS
1825.1001 Waiver
of right to examination of records.
1825.1002 Use
of foreign currency.
SUBPART 1825.11 SOLICITATION PROVISIONS AND CONTRACT
CLAUSES
1825.1101 Acquisition
of Supplies.
1825.1103 Other
provisions and clauses.
1825.1103-70 Export
control.
SUBPART 1825.70
FOREIGN CONTRACTS AND INTERNATIONAL
AGREEMENT CLEARANCES
1825.7000 Scope of subpart.
1825.7001 Definition.
1825.7002 Foreign
Contracts.
1825.7003 International
Agreements.
PART 1825
FOREIGN ACQUISITION
1825.003 Definitions.
1825.003-70 NASA
definitions.
"Canadian end product”, for
an item with an estimated value of $25,000 or less, means an unmanufactured end
product mined or produced in Canada or an end product manufactured in Canada,
if the cost of its components mined, produced, or manufactured in Canada or the
United States 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 product. For an end product with an estimated value
in excess of $25,000, the definition at FAR 25.401 applies.
Subpart 1825.1--Buy
American Act--Supplies
1825.103 Exceptions.
(a)(i) The
procurement officer shall send proposed public interest determinations to the
Assistant Administrator for Procurement (Code HS) for approval.
(ii) The Assistant Administrator for
Procurement has determined that it is inconsistent with the public interest to
apply restrictions of the Buy American Act to Canadian end products with
estimated values of $25,000 or less as defined in 1825.003-70. Accordingly, contracting officers must
evaluate all offers for such Canadian end products on a parity with offers for
domestic end products, except that applicable duty (whether or not a duty free
entry certificate may be issued) must be included in evaluating offers for
Canadian end products.
(iii) The Assistant Administrator for Procurement has
determined that for procurements subject to the Trade Agreements Act, it would
be inconsistent with the public interest to apply the Buy American Act to
U.S.-made end products that are substantially transformed in the United States. (iii) The Assistant
Administrator for Procurement has determined that for procurements subject to
the Trade Agreements Act, it would be inconsistent with the public interest to
apply the Buy American Act to U.S.-made end products that are substantially
transformed in the United States.
Subpart 1825.4--Trade
Agreements
1825.400 Scope of subpart.
(b) The Buy American Act applies to all
acquisitions of Japanese end products or services in excess of $2,500.
Subpart 1825.9--Customs
and Duties
1825.901
Policy.
NASA has
statutory authority to exempt certain articles from import duties, including
articles that will be launched into space, spare parts for such articles,
ground support equipment, and unique equipment used in connection with an
international program or launch service agreement. This authority is fully described in 14 CFR 1217.
1825.903 Exempted supplies.
(a) Through delegation from the Assistant
Administrator for Procurement, Procurement Officers are authorized to certify duty
free entry for articles imported into the United States, if those articles are
procured by NASA or by other U.S. Government agencies, or by U.S. Government
contractors or subcontractors when title to the articles is or will be vested
in the U.S. Government in accordance with the terms of the contract or
subcontract. Procurement officers shall
complete the certification set forth in 14 CFR 1217.104(a) or 1217.104(c) (http://www.access.gpo.gov/nara/cfr/cfr-retrieve.html
- page1). Upon arrival of foreign supplies at a port of entry, the
consignee, generally the commercial carrier or its agent (import broker), will
file Customs Form 7501, Entry Summary.
This form is available from Service Ports (http://www.customs.ustreas.gov/location/ports/index.htm)
or from NASA Headquarters' forms library (https://extranet.hq.nasa.gov/nef/user/form_search.cfm). All duty-free certificates must be
coordinated with the center Chief Counsel.
Procurement officers must maintain a record of each certification and
make this record available for periodic review by NASA Headquarters and the
U.S. Customs Service.
Subpart 1825.10--Additional Foreign Acquisition Regulations
1825.1001 Wavier of right to examination of records.
(b) The Administrator is the approval authority
for waivers. The contracting officer
must submit the waiver request, consisting of the determination and findings
prescribed in FAR 25.1001(b) and any relevant supporting information, to the
Headquarters Office of Procurement (Code HS).
1825.1002 Use of foreign currency.
The NASA Headquarters
Comptroller (Code B) is the designated official for making the determination of
the feasibility of using excess or near-excess currency.
Subpart 1825.11--Solicitation
Provisions and Contract Clause
1825.1101 Acquisition of supplies.
(c)(1) NASA has determined that the restrictions of the Buy American Act
are not applicable to U.S.-made end products. (c)(1) NASA has determined that the restrictions of
the Buy American Act are not applicable to U.S.-made end products.
(e) The contracting officer must add paragraph (k)
as set forth in 1852.225-8, Duty-Free Entry of Space Articles, in
solicitations and contracts when the supplies that will be accorded duty-free
entry are identifiable before award.
Insert the supplies determined in accordance with FAR Subpart 25.9 and
1825.903.
1825.1103 Other provisions and clauses.
1825.1103-70
Export control.
(a) Background.
(1) NASA contractors and
subcontractors are subject to U.S. export control laws and regulations,
including the International Traffic in Arms Regulations (ITAR), 22 CFR Parts
120 through 130, and the Export Administration Regulations (EAR), 15 CFR Parts
730 through 799. The contractor is
responsible for obtaining the appropriate licenses or other approvals from the
Department of State or the Department of Commerce when it exports hardware,
technical data, or software, or provides technical assistance to a foreign
destination or "foreign person", as defined in 22 CFR 120.16, and
there are no applicable or available exemptions/exceptions to the ITAR/ EAR,
respectively. A person who is lawfully
admitted for permanent residence in the United States is not a "foreign
person". (See 22 CFR 120.16 and 15 CFR 734.2(b)(2)(ii).)
(2) The exemption at 22 CFR 125.4(b)(3) of the
ITAR provides that a contractor may export technical data without a license if
the contract between the agency and the exporter provides for the export of the
data. The clause at 1852.225-70, Alternate I, provides contractual authority for
the exemption, but the exemption is available only after the contracting
officer, or designated representative, provides written authorization or
direction enabling its use. It is NASA
policy that the exemption at 22 CFR 125.4(b)(3) may only be used when technical
data (including software) is exchanged with a NASA foreign partner pursuant to
the terms of an international agreement in furtherance of an international
collaborative effort. The contracting
officer must obtain the approval of the Center Export Administrator before
granting the contractor the authority to use this
exemption.
(b) Contract clause. Insert the clause at
1852.225-70, Export Licenses, in all solicitations and contracts, except in
contracts with foreign entities.
Insert the clause with its Alternate I when the NASA project office
indicates that technical data (including software) is to be exchanged by the
contractor with a NASA foreign partner pursuant to an international agreement.
Subpart 1825.70--Foreign
Contract and International Agreement Clearances
1825.7000 Scope of subpart.
This
subpart prescribes policy and procedures for pre-award clearance of foreign contracts, and for coordination of international
agreements that contemplate award of contracts using appropriated funds.
1825.7001 Definition.
"Foreign contract acquisition”, as used in this subpart, means the acquisition by
negotiation of supplies or services, including construction work and research
and development when the work is to be performed outside the United States, its
possessions, and Puerto Rico by a foreign government or instrumentality thereof
or by a foreign private contractor. The
term does not include --
(a) Negotiation of contracts with domestic
concerns involving work to be performed outside the United States, its possessions,
and Puerto Rico; or
(b) Contracts with the Canadian Commercial
Corporation.
1825.7002 Foreign
Contracts.
(a) Policy. Following the procedure in paragraph (b) of this section, the
Acquisition Team must coordinate with Headquarters before initiating any
foreign contract acquisition if the acquisition is valued above $100,000 or
involves export control issues. An
acquisition involves export control issues if it entails --
(1) Importing or exporting goods or technical data
from or to a country listed in 22 CFR 126.1(a) or (d) (Subchapter M, the
International Traffic in Arms Regulations) (http://www.pmdtc.org/reference.htm#ITAR):
(2) Importing or exporting Defense Articles or
Defense Services on the United States Munitions List at 22 CFR Part 121 which
would require NASA to obtain a license from the State Department's Office of
Defense Trade Controls;
(3) Exporting goods or technical data on the
Commerce Control List at 15 CFR Part 744 and that require NASA to obtain either
a Special or an Individual Validated License;
(4) Importing and/or exporting goods or technical
data from or to an entity listed in 15 CFR Part 740, Supplements 1, Country
Group D; or
(5) Exporting and/or importing of goods,
technology, or services to or from any entity subject to transaction control,
embargo, or sanctions pursuant to 31 CFR Chapter V.
(b) Procedure.
(1) The Headquarters or field installation
technical office requiring a foreign contract acquisition meeting any of the
criteria listed in paragraph (a) of this section must submit the
following information to the Headquarters Office of
External Relations (Code I) through the contracting officer and the
Headquarters Office of Procurement (Code HS) --
(i) The name of the foreign entity, the country
or countries involved, and the purpose of the contract;
(ii) The Space Act agreement(s) involved
(pursuant to NMI 1050.9), if any;
(iii)
A description of the goods or technical data requiring prior written approval
or the issuance of the license for their import or export from the Departments
of Commerce, State, or Treasury; and
(iv) The reason why the acquisition is being
placed with a foreign entity.
(2) All coordination required between NASA and the
Departments of Commerce, State, and Treasury regarding foreign contract
acquisitions shall be accomplished through the Headquarters Office of External
Relations (Code I).
(3) The
lead-time for obtaining an export license is 60 to 90 days. Requests for Headquarters clearance should
be initiated as early as possible.
1825.7003 International Agreements.
Office of Procurement (Code HS) concurrence is required for all Memoranda of Understanding with foreign entities and for other types of international agreements which contemplate the procurement of goods or services using U.S. appropriated funds. No Code H concurrence is required for agreements which are done solely on a cooperative basis.