federal acquisition circular...15, 32, 42, 45, and 52. these changes are to clarify and correct the...

33
FEDERAL ACQUISITION CIRCULAR July 2, 2010 Number 2005-43 Federal Acquisition Circular (FAC) 2005-43 is issued under the authority of the Secretary of Defense, the Administrator of General Services, and the Administrator for the National Aeronautics and Space Administration. Unless otherwise specified, all Federal Acquisition Regulation (FAR) and other directive material contained in FAC 2005-43 is effective July 2, 2010, except for Items I, II, and IV which are effective August 2, 2010.

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Page 1: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

FEDERAL ACQUISITION CIRCULAR July 2 2010 Number 2005-43 Federal Acquisition Circular (FAC) 2005-43 is issued under the authority of the Secretary of Defense the Administrator of General Services and the Administrator for the National Aeronautics and Space Administration Unless otherwise specified all Federal Acquisition Regulation (FAR) and other directive material contained in FAC 2005-43 is effective July 2 2010 except for Items I II and IV which are effective August 2 2010

(BLANK PAGE)

FAC 2005-43 LIST OF SUBJECTS Item Title Page I Government Property i

II Registry of Disaster Response Contractors i III Recovery Act Subcontract Reporting ii Procedures (Interim) IV Clarification of Criteria for Sole Source ii Awards to Service-disabled Veteran-owned Small Business Concerns V Trade Agreements Thresholds (Interim) iii

(BLANK PAGE)

FAC 2005-43 SUMMARY OF ITEMS

Federal Acquisition Circular (FAC) 2005-43 amends the Federal Acquisition Regulation (FAR) as specified below Item ImdashGovernment Property (FAR Case 2008-011)

This final rule amends the FAR to revise FAR part 45 and its associated clauses Changes are being made to FAR parts 2 4 15 32 42 45 and 52 These changes are to clarify and correct the previous FAR rule for part 45 Government Property published under Federal Acquisition Circular 2005-17 FAR case 2004-025 May 15 2007 (72 FR 27364) Minor changes are made to the proposed rule published August 6 2009 (74 FR 39262) The rule specifically impacts contracting officers property administrators and contractors responsible for the management of Government property The rule does not affect the method of managing Government property The rule merely clarifies and corrects the previous FAR rule Replacement pages 21-11 thru 21-14 47-1 and 47-2 154-7 and 154-8 312-15 and 312-16 325-7 and 325-8 3210-3 and 3210-4 423-1 and 423-2 Part 45 TOC pp 45-1 and 45-2 451-1 and 451-2 452-1 and 452-2 454-1 and 454-2 455-1 and 455-2 456-1 thru 456-4 522-209 thru 522-212 522-229 and 522-230 522-267 thru 522-274 and 522-3621 and 522-3622 Item IImdashRegistry of Disaster Response Contractors (FAR Case 2008-035) This final rule adopts without change the interim rule implementing Pub L 109-295 the Department of Homeland Security Appropriations Act 2007 section 697 which requires the establishment and maintenance of a registry of disaster response contractors The Disaster Response Registry is located at wwwccrgov The Federal Emergency Management Agency (within the Department of Homeland Security) has a link to the registry for vendors on its website at httpwwwfemagovbusinesscontractorshtm The Registry covers domestic disaster and emergency relief activities Replacement pages None

i

Item IIImdashRecovery Act Subcontract Reporting Procedures (FAR Case 2010-008) (Interim) This interim rule amends the FAR to revise the clause at FAR 52204-11 American Recovery and Reinvestment ActmdashReporting Requirements The revised clause will require first-tier subcontractors with Recovery Act funded awards of $25000 or more to report jobs information to the prime contractor for reporting into FederalReportinggov It also will require the prime contractor to submit its first report on or before the 10th day after the end of the calendar quarter in which the prime contractor received the award and quarterly thereafter The revised clause will be used for all new solicitations and awards issued on or after the effective date of this interim rule This clause is not required for any existing contracts or task and delivery orders issued under a contract that contain the original clause FAR 52204-11 (March 2009) Therefore this interim rule does not require renegotiation of existing Recovery Act contracts that include the clause dated March 2009 Replacement pages 415-1 and 415-2 522-121 and 522-122 (522-123 and 522-124 removed) and 522-39 and 522-40 Item IVmdashClarification of Criteria for Sole Source Awards to Service-disabled Veteran-owned Small Business Concerns (FAR Case 2008-023) This final rule amends FAR 191406(a) to clarify the criteria that need to be met in order to conduct a sole source service-disabled veteran-owned small business (SDVOSB) concern acquisition The FAR language is amended to be consistent with the Veterans Benefit Act of 2003 (15 USC 657f) and the Small Business Administrationrsquos regulation (13 CFR 12520) that implements the Act This final rule also amends FAR 191306(a) to clarify the criteria that need to be met in order to conduct a sole source for Historically Underutilized Business Zone (HUBZone) small business concern acquisitions These amendments to the FAR alleviate confusion for contracting officers on the appropriate use of the criteria needed to conduct sole source HUBZONE small business and SDVOSB concern acquisitions Replacement pages 1913-1 and 1913-2 and 1914-1 and 1914-2

ii

Item VmdashTrade Agreements Thresholds (FAR Case 2009-040) (Interim) This interim rule adjusts the thresholds for application of the World Trade Organization Government Procurement Agreement and the free trade agreements as determined by the United States Trade Representative according to a pre-determined formula under the agreements Replacement pages 2215-1 and 2215-2 252-1 and 252-2 254-3 and 254-4 255-1 and 255-2 256-1 and 256-2 2511-1 and 2511-2 522-39 and 522-40 522-421 and 522-422 and 522-111 and 522-112

iii

(BLANK PAGE)

FAC 2005-43 FILING INSTRUCTIONS

NOTE The FAR is segmented by subparts The FAR page numbers reflect FAR subparts For example ldquo415-1rdquo is page one of subpart 415

Remove Pages Insert Pages

415-1 and 415-2 415-1 and 415-2 2215-1 and 2215-2 2215-1 and 2215-2 252-1 and 252-2 252-1 and 252-2 254-3 and 254-4 254-3 and 254-4 255-1 and 255-2 255-1 and 255-2 256-1 and 256-2 256-1 and 256-2 2511-1 and 2511-2 2511-1 and 2511-2 522-121 thru 522-124 522-121 and 522-122 522-39 and 522-40 522-39 and 522-40 522-421 and 522-422 522-421 and 522-422 522-111 and 522-112 522-111 and 522-112

(BLANK PAGE)

SUBPART 415mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS 41502

415-1

Subpart 415mdashAmerican Recovery and Reinvestment ActmdashReporting Requirements

41500 Scope of subpartThis subpart implements section 1512(c) of Division A of

the American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) which requires as a condition ofreceipt of funds quarterly reporting on the use of funds Thesubpart also implements the data elements of the FederalFunding Accountability and Transparency Act of 2006 asamended (Pub L 109-282) Contractors that receive awards(or modifications to existing awards) funded in whole or inpart by the Recovery Act must report information includingbut not limited tomdash

(a) The dollar amount of contractor invoices(b) The supplies delivered and services performed(c) An assessment of the completion status of the work(d) An estimate of the number of jobs created and the num-

ber of jobs retained as a result of the Recovery Act funds(e) Names and total compensation of each of the five most

highly compensated officers for the calendar year in which thecontract is awarded and

(f) Specific information on first-tier subcontractors

41501 Procedures(a) In any contract action funded in whole or in part by the

Recovery Act the contracting officer shall indicate that thecontract action is being made under the Recovery Act andindicate which products or services are funded under theRecovery Act This requirement applies whenever RecoveryAct funds are used regardless of the contract instrument

(b) To maximize transparency of Recovery Act funds thatmust be reported by the contractor the contracting officer

shall structure contract awards to allow for separately trackingRecovery Act funds For example the contracting officer mayconsider awarding dedicated separate contracts when usingRecovery Act funds or establishing contract line item number(CLIN) structures to mitigate commingling of Recovery fundswith other funds

(c) Contracting officers shall ensure that the contractorcomplies with the reporting requirements of 52204-11American Recovery and Reinvestment ActmdashReportingRequirements If the contractor fails to comply with thereporting requirements the contracting officer shall exerciseappropriate contractual remedies

(d) The contracting officer shall make the contractorrsquos fail-ure to comply with the reporting requirements a part of thecontractorrsquos performance information under Subpart 4215

41502 Contract clauseInsert the clause at 52204-11 American Recovery and

Reinvestment ActmdashReporting Requirements in all solicita-tions and contracts funded in whole or in part with RecoveryAct funds except classified solicitations and contracts Thisincludes but is not limited to Governmentwide AcquisitionContracts (GWACs) multi-agency contracts (MACs) Fed-eral Supply Schedule (FSS) contracts or agency indefinite-deliveryindefinite-quantity (IDIQ) contracts that will befunded with Recovery Act funds Contracting officers shallinclude this clause in any existing contract or order that willbe funded with Recovery Act funds Contracting officers maynot use Recovery Act funds on existing contracts and ordersif the clause at 52204-11 is not incorporated This clause isnot required for any existing contracts or task and deliveryorders issued under a contract that contains the originalclause FAR 52204-11 (March 2009)

FAC 2005-43 JULY 2 2010

415-2

This page intentionally left blank

SUBPART 2215mdashPROHIBITION OF ACQUISITION OF PRODUCTS PRODUCED BY FORCED OR INDENTURED CHILD LABOR 221503

2215-1

Subpart 2215mdashProhibition of Acquisition of Products Produced by Forced or Indentured

Child Labor

221500 ScopeThis subpart applies to acquisitions of supplies that exceed

the micro-purchase threshold

221501 DefinitionsAs used in this subpartmdashldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

ldquoList of Products Requiring Contractor Certification as toForced or Indentured Child Laborrdquo means the list publishedby the Department of Labor in accordance with EO 13126 ofJune 12 1999 Prohibition of Acquisition of Products Pro-duced by Forced or Indentured Child Labor The list identifiesproducts by their country of origin that the Departments ofLabor Treasury and State have a reasonable basis to believemight have been mined produced or manufactured by forcedor indentured child labor

221502 PolicyAgencies must take appropriate action to enforce the laws

prohibiting the manufacture or importation of products thathave been mined produced or manufactured wholly or in partby forced or indentured child labor (19 USC 130729 USC 201 et seq and 41 USC 35 et seq) Agenciesshould make every effort to avoid acquiring such products

221503 Procedures for acquiring end products on the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor(a) When issuing a solicitation for supplies expected to

exceed the micro-purchase threshold the contracting officermust check the List of Products Requiring Contractor Certifi-cation as to Forced or Indentured Child Labor (the List)(wwwdolgovilab) (see 221505(a)) Appearance of a prod-uct on the List is not a bar to purchase of any such productmined produced or manufactured in the identified countrybut rather is an alert that there is a reasonable basis to believethat such product may have been mined produced or manu-factured by forced or indentured child labor

(b) The requirements of this subpart that result from theappearance of any end product on the List do not apply to asolicitation or contract if the identified country of origin on theList ismdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more (Subpart 254)

(2) Israel and the anticipated value of the acquisition is$50000 or more (see 25406)

(3) Mexico and the anticipated value of the acquisitionis $70079 or more (see Subpart 254) or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more (see 25402(b))

(c) Except as provided in paragraph (b) of this sectionbefore the contracting officer may make an award for an endproduct (regardless of country of origin) of a type identifiedby country of origin on the List the offeror must certify thatmdash

(1) It will not supply any end product on the List thatwas mined produced or manufactured in a country identifiedon the List for that product as specified in the solicitation bythe contracting officer in the Certification Regarding Knowl-edge of Child Labor for Listed End Products or

(2)(i) It has made a good faith effort to determinewhether forced or indentured child labor was used to mineproduce or manufacture any end product to be furnishedunder the contract that is on the List and was mined producedor manufactured in a country identified on the List for thatproduct and

(ii) On the basis of those efforts the offeror isunaware of any such use of child labor

(d) Absent any actual knowledge that the certification isfalse the contracting officer must rely on the offerorsrsquo certi-fications in making award decisions

(e) Whenever a contracting officer has reason to believethat forced or indentured child labor was used to mine pro-duce or manufacture an end product furnished pursuant to acontract awarded subject to the certification required inparagraph (c) of this section the contracting officer must referthe matter for investigation by the agencyrsquos Inspector Generalthe Attorney General or the Secretary of the Treasury which-ever is determined appropriate in accordance with agency pro-cedures except to the extent that the end product is from thecountry listed in paragraph (b) of this section under a contractexceeding the applicable threshold

(f) Proper certification will not prevent the head of anagency from imposing remedies in accordance withsection 221504(a)(4) if it is later discovered that the contrac-tor has furnished an end product or component that has in factbeen mined produced or manufactured wholly or in partusing forced or indentured child labor

FAC 2005ndash43 JULY 2 2010

221504 FEDERAL ACQUISITION REGULATION

2215-2

221504 Violations and remedies(a) Violations The Government may impose remedies set

forth in paragraph (b) of this section for the following viola-tions (note that the violations in paragraphs (a)(3) and (a)(4)of this section go beyond violations of the requirements relat-ing to certification of end products) (see 221503)

(1) The contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor

(2) The contractor has failed to cooperate as required inaccordance with the clause at 52222-19 Child Labor Coop-eration with Authorities and Remedies with an investigationof the use of forced or indentured child labor by an InspectorGeneral the Attorney General or the Secretary of theTreasury

(3) The contractor uses forced or indentured child laborin its mining production or manufacturing processes

(4) The contractor has furnished an end product or com-ponent mined produced or manufactured wholly or in partby forced or indentured child labor Remedies inparagraphs (b)(2) and (b)(3) of this section are inappropriateunless the contractor knew of the violation

(b) Remedies (1) The contracting officer may terminatethe contract

(2) The suspending official may suspend the contractorin accordance with the procedures in Subpart 94

(3) The debarring official may debar the contractor fora period not to exceed 3 years in accordance with the proce-dures in Subpart 94

221505 Solicitation provision and contract clause(a) Except as provided in paragraph (b) of 221503 insert

the provision at 52222-18 Certification Regarding Knowl-edge of Child Labor for Listed End Products in all solicita-tions that are expected to exceed the micro-purchase thresholdand are for the acquisition of end products (regardless of coun-try of origin) of a type identified by country of origin on theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor except solicitations forcommercial items that include the provision at 52212-3 Off-eror Representations and CertificationsmdashCommercial ItemsThe contracting officer must identify in paragraph (b) of theprovision at 52222-18 Certification Regarding Knowledgeof Child Labor for Listed End Products or paragraph (i)(1) ofthe provision at 52212-3 any applicable end products andcountries of origin from the List For solicitations estimatedto equal or exceed $25000 the contracting officer mustexclude from the List in the solicitation end products from anycountries identified at 221503(b) in accordance with thespecified thresholds

(b) Insert the clause at 52222-19 Child LabormdashCoopera-tion with Authorities and Remedies in all solicitations andcontracts for the acquisition of supplies that are expected toexceed the micro-purchase thresholds

SUBPART 252mdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25205

252-1

Subpart 252mdashBuy American ActmdashConstruction Materials

25200 Scope of Subpart(a) This subpart implementsmdash

(1) The Buy American Act (41 USC 10a - 10d)(2) Executive Order 10582 December 17 1954 and(3) Waiver of the component test of the Buy American

Act for acquisitions of commercially available off-the-shelf(COTS) items in accordance with 41 USC 431

(b) It applies to contracts for the construction alteration orrepair of any public building or public work in the UnitedStates

(c) When using funds appropriated or otherwise providedby the American Recovery and Reinvestment Act of 2009(Pub L 111-5) (Recovery Act) for construction seeSubpart 256

25201 PolicyExcept as provided in 25202 use only domestic construc-

tion materials in construction contracts performed in theUnited States

25202 Exceptions(a) When one of the following exceptions applies the con-

tracting officer may acquire foreign construction materialswithout regard to the restrictions of the Buy American Act

(1) Impracticable or inconsistent with public interestThe head of the agency may determine that application of therestrictions of the Buy American Act to a particular construc-tion material would be impracticable or would be inconsistentwith the public interest The public interest exception applieswhen an agency has an agreement with a foreign governmentthat provides a blanket exception to the Buy American Act

(2) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(3) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25204

(b) Determination and findings When a determination ismade for any of the reasons stated in this section that certainforeign construction materials may be used the contractingofficer must list the excepted materials in the contract Theagency must make the findings justifying the exception avail-able for public inspection

(c) Acquisitions under trade agreements For constructioncontracts with an estimated acquisition value of $7804000 ormore see Subpart 254

25203 Preaward determinations(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of the Buy American Act for specifically identified con-struction materials The time for submitting the request isspecified in the solicitation in paragraph (b) of either52225-10 or 52225-12 whichever applies The informationand supporting data that must be included in the request arealso specified in the solicitation in paragraphs (c) and (d) ofeither 52225-9 or 52225-11 whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily availableinformation

25204 Evaluating offers of foreign construction material(a) Offerors proposing to use foreign construction material

other than that listed by the Government in the applicableclause at 52225-9 paragraph (b)(2) or 52225-11paragraph (b)(3) or covered by the WTO GPA or a Free TradeAgreement (paragraph (b)(2) of 52225-11) must provide theinformation required by paragraphs (c) and (d) of the respec-tive clauses

(b) Unless the head of the agency specifies a higher per-centage the contracting officer must add to the offered price6 percent of the cost of any foreign construction material pro-posed for exception from the requirements of the Buy Amer-ican Act based on the unreasonable cost of domesticconstruction materials In the case of a tie the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(2) of52225-9 or paragraph (b)(3) of 52225-11) the contractingofficer must add the excepted materials to the list in the con-tract clause

25205 Postaward determinations(a) If a contractor requests a determination regarding the

inapplicability of the Buy American Act after contract awardthe contractor must explain why it could not request the deter-mination before contract award or why the need for such

FAC 2005ndash43 JULY 2 2010

25206 FEDERAL ACQUISITION REGULATION

252-2

determination otherwise was not reasonably foreseeable Ifthe contracting officer concludes that the contractor shouldhave made the request before contract award the contractingofficer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability of theBuy American Act made after contract award on informationrequired by paragraphs (c) and (d) of the applicable clause at52225-9 or 52225-11 andor other readily availableinformation

(c) If a determination under 25202(a) is made after con-tract award that an exception to the Buy American Actapplies the contracting officer must negotiate adequate con-sideration and modify the contract to allow use of the foreignconstruction material When the basis for the exception is theunreasonable price of a domestic construction material ade-quate consideration is at least the differential established in25202(a) or in accordance with agency procedures

25206 NoncomplianceThe contracting officer mustmdash(a) Review allegations of Buy American Act violations(b) Unless fraud is suspected notify the contractor of the

apparent unauthorized use of foreign construction materialand request a reply to include proposed corrective action and

(c) If the review reveals that a contractor or subcontractorhas used foreign construction material without authorizationtake appropriate action including one or more of thefollowing

(1) Process a determination concerning the inapplica-bility of the Buy American Act in accordance with 25205

(2) Consider requiring the removal and replacement ofthe unauthorized foreign construction material

(3) If removal and replacement of foreign constructionmaterial incorporated in a building or work would be imprac-ticable cause undue delay or otherwise be detrimental to theinterests of the Government the contracting officer maydetermine in writing that the foreign construction materialneed not be removed and replaced A determination to retainforeign construction material does not constitute a determina-tion that an exception to the Buy American Act applies andthis should be stated in the determination Further a determi-nation to retain foreign construction material does not affectthe Governmentrsquos right to suspend or debar a contractor sub-contractor or supplier for violation of the Buy American Actor to exercise other contractual rights and remedies such asreducing the contract price or terminating the contract fordefault

(4) If the noncompliance is sufficiently serious con-sider exercising appropriate contractual remedies such as ter-minating the contract for default Also consider preparing andforwarding a report to the agency suspending or debarringofficial in accordance with Subpart 94 If the noncomplianceappears to be fraudulent refer the matter to other appropriateagency officials such as the officer responsible for criminalinvestigation

SUBPART 254mdashTRADE AGREEMENTS 25404

254-3

25402 General(a)(1) The Trade Agreements Act (19 USC 2501 et seq)

provides the authority for the President to waive the BuyAmerican Act and other discriminatory provisions for eligibleproducts from countries that have signed an internationaltrade agreement with the United States or that meet certainother criteria such as being a least developed country ThePresident has delegated this waiver authority to the US TradeRepresentative In acquisitions covered by the WTO GPAFree Trade Agreements or the Israeli Trade Act the USTRhas waived the Buy American Act and other discriminatoryprovisions for eligible products Offers of eligible productsreceive equal consideration with domestic offers

(2) The contracting officer shall determine the origin ofservices by the country in which the firm providing the ser-vices is established See Subpart 255 for evaluation proce-dures for supply contracts covered by trade agreements

(b) The value of the acquisition is a determining factor inthe applicability of trade agreements Most of these dollarthresholds are subject to revision by the US Trade Represen-tative approximately every 2 years The various thresholds aresummarized as follows

25403 World Trade Organization Government Procurement Agreement and Free Trade Agreements(a) Eligible products from WTO GPA and FTA countries

are entitled to the nondiscriminatory treatment specified in25402(a)(1) The WTO GPA and FTAs specify procurementprocedures designed to ensure fairness (see 25408)

(b) Thresholds (1) To determine whether the acquisitionof products by lease rental or lease-purchase contract(including lease-to-ownership or lease-with-option-to pur-chase) is covered by the WTO GPA or an FTA calculate theestimated acquisition value as follows

(i) If a fixed-term contract of 12 months or less iscontemplated use the total estimated value of the acquisition

(ii) If a fixed-term contract of more than 12 monthsis contemplated use the total estimated value of the acquisi-tion plus the estimated residual value of the leased equipmentat the conclusion of the contemplated term of the contract

(iii) If an indefinite-term contract is contemplateduse the estimated monthly payment multiplied by the totalnumber of months that ordering would be possible under theproposed contract ie the initial ordering period plus anyoptional ordering periods

(iv) If there is any doubt as to the contemplated termof the contract use the estimated monthly payment multipliedby 48

(2) The estimated value includes the value of alloptions

(3) If in any 12-month period recurring or multipleawards for the same type of product or products are antici-pated use the total estimated value of these projected awardsto determine whether the WTO GPA or an FTA applies Donot divide any acquisition with the intent of reducing the esti-mated value of the acquisition below the dollar threshold ofthe WTO GPA or an FTA

(c) Purchase restriction (1) Under the Trade AgreementsAct (19 USC 2512) in acquisitions covered by the WTOGPA acquire only US-made or designated country end prod-ucts or US or designated country services unless offers forsuch end products or services are either not received or areinsufficient to fulfill the requirements This purchase restric-tion does not apply below the WTO GPA threshold for sup-plies and services even if the acquisition is covered by anFTA

(2) This restriction does not apply to purchases of sup-plies by the Department of Defense from a country with whichit has entered into a reciprocal agreement as provided indepartmental regulations

25404 Least developed countriesFor acquisitions covered by the WTO GPA least devel-

oped country end products construction material and ser-vices must be treated as eligible products

Trade Agreement

Supply Contract

(equal to or exceeding)

Service Contract

(equal to or exceeding)

Construction Contract

(equal to or exceeding)

WTO GPA $203000 $203000 $7804000FTAs

Australia FTA 70079 70079 7804000Bahrain FTA 203000 203000 9110318CAFTA-DR (Costa Rica Dominican Republic El Salvador Guatemala Honduras and Nicaragua)

70079 70079 7804000

Chile FTA 70079 70079 7804000Morocco FTA 203000 203000 7804000NAFTAmdashCanada 25000 70079 9110318mdashMexico 70079 70079 9110318Oman FTA 203000 203000 9110318Peru FTA 203000 203000 7804000Singapore FTA 70079 70079 7804000

Israeli Trade Act 50000 mdash mdash

FAC 2005ndash43 JULY 2 2010

25405 FEDERAL ACQUISITION REGULATION

254-4

25405 Caribbean Basin Trade InitiativeUnder the Caribbean Basin Trade Initiative the United

States Trade Representative has determined that for acquisi-tions covered by the WTO GPA Caribbean Basin country endproducts construction material and services must be treatedas eligible products In accordance with Section 201 (a)(3) ofthe Dominican Republic-Central America-United States FreeTrade Implementation Act (Pub L 109-53) when theCAFTA-DR agreement enters into force with respect to acountry that country is no longer designated as a beneficiarycountry for purposes of the Caribbean Basin EconomicRecovery Act and is therefore no longer included in the def-inition of ldquoCaribbean Basin countryrdquo for purposes of the Car-ibbean Basin Trade Initiative

25406 Israeli Trade ActAcquisitions of supplies by most agencies are covered by

the Israeli Trade Act if the estimated value of the acquisitionis $50000 or more but does not exceed the WTO GPA thresh-old for supplies (see 25402(b)) Agencies other than theDepartment of Defense the Department of Energy theDepartment of Transportation the Bureau of Reclamation ofthe Department of the Interior the Federal Housing FinanceBoard and the Office of Thrift Supervision must evaluateoffers of Israeli end products without regard to the restrictionsof the Buy American Act The Israeli Trade Act does not pro-hibit the purchase of other foreign end products

25407 Agreement on Trade in Civil AircraftUnder the authority of Section 303 of the Trade Agree-

ments Act the US Trade Representative has waived the Buy

American Act for civil aircraft and related articles that meetthe substantial transformation test of the Trade AgreementsAct from countries that are parties to the Agreement on Tradein Civil Aircraft Those countries are Austria Belgium Bul-garia Canada Denmark Egypt Finland France GermanyGreece Ireland Italy Japan Luxembourg Macao the Neth-erlands Norway Portugal Romania Spain Sweden Swit-zerland and the United Kingdom

25408 Procedures(a) If the WTO GPA or an FTA applies (see 25401) the

contracting officer mustmdash(1) Comply with the requirements of 5203 Publicizing

and response time(2) Comply with the requirements of 5207 Preparation

and transmittal of synopses(3) Not include technical requirements in solicitations

solely to preclude the acquisition of eligible products(4) Specify in solicitations that offerors must submit

offers in the English language and in US dollars (see52214-34 Submission of Offers in the English Languageand 52214-35 Submission of Offers in US Currency orparagraph (c)(5) of 52215-1 Instruction to OfferorsmdashCom-petitive Acquisitions) and

(5) Provide unsuccessful offerors from WTO GPA orFTA countries notice in accordance with 14409-1 or 15503

(b) See Subpart 255 for evaluation procedures andexamples

SUBPART 255mdashEVALUATING FOREIGN OFFERSmdashSUPPLY CONTRACTS 25503

255-1

Subpart 255mdashEvaluating Foreign OffersmdashSupply Contracts

25501 GeneralThe contracting officermdash(a) Must apply the evaluation procedures of this subpart to

each line item of an offer unless either the offer or the solici-tation specifies evaluation on a group basis (see 25503)

(b) May rely on the offerorrsquos certification of end productorigin when evaluating a foreign offer

(c) Must identify and reject offers of end products that areprohibited in accordance with Subpart 257 and

(d) Must not use the Buy American Act evaluation factorsprescribed in this subpart to provide a preference for one for-eign offer over another foreign offer

25502 Application(a) Unless otherwise specified in agency regulations per-

form the following steps in the order presented(1) Eliminate all offers or offerors that are unacceptable

for reasons other than price eg nonresponsive debarred orsuspended or a prohibited source (see Subpart 257)

(2) Rank the remaining offers by price(3) If the solicitation specifies award on the basis of fac-

tors in addition to cost or price apply the evaluation factorsas specified in this section and use the evaluated cost or pricein determining the offer that represents the best value to theGovernment

(b) For acquisitions covered by the WTO GPA (seeSubpart 254)mdash

(1) Consider only offers of US-made or designatedcountry end products unless no offers of such end productswere received

(2) If the agency gives the same consideration given eli-gible offers to offers of US-made end products that are notdomestic end products award on the low offer Otherwiseevaluate in accordance with agency procedures and

(3) If there were no offers of US-made or designatedcountry end products make a nonavailability determination(see 25103(b)(2)) and award on the low offer (see 25403(c))

(c) For acquisitions not covered by the WTO GPA but sub-ject to the Buy American Act (an FTA or the Israeli Trade Actalso may apply) the following applies

(1) If the low offer is a domestic offer or an eligible offerunder an FTA or the Israeli Trade Act award on that offer

(2) If the low offer is a noneligible offer and there wereno domestic offers (see 25103(b)(3)) award on the low offer

(3) If the low offer is a noneligible offer and there is aneligible offer that is lower than the lowest domestic offeraward on the low offer The Buy American Act provides anevaluation preference only for domestic offers

(4) Otherwise apply the appropriate evaluation factorprovided in 25105 to the low offer

(i) If the evaluated price of the low offer remains lessthan the lowest domestic offer award on the low offer

(ii) If the price of the lowest domestic offer is lessthan the evaluated price of the low offer award on the lowestdomestic offer

(d) Ties (1) If application of an evaluation factor results ina tie between a domestic offer and a foreign offer award onthe domestic offer

(2) If no evaluation preference was applied (ie offersafforded nondiscriminatory treatment under the Buy Ameri-can Act) resolve ties between domestic and foreign offers bya witnessed drawing of lots by an impartial individual

(3) Resolve ties between foreign offers from small busi-ness concerns (under the Buy American Act a small businessoffering a manufactured article that does not meet the defini-tion of ldquodomestic end productrdquo is a foreign offer) or foreignoffers from a small business concern and a large business con-cern in accordance with 14408-6(a)

25503 Group offers(a) If the solicitation or an offer specifies that award can be

made only on a group of line items or on all line items con-tained in the solicitation or offer reject the offermdash

(1) If any part of the award would consist of prohibitedend products (see Subpart 257) or

(2) If the acquisition is covered by the WTO GPA andany part of the offer consists of items restricted in accordancewith 22403(c)

(b) If an offer restricts award to a group of line items or toall line items contained in the offer determine for each lineitem whether to apply an evaluation factor (see 25504-4Example 1)

(1) First evaluate offers that do not specify an awardrestriction on a line item basis in accordance with 25502determining a tentative award pattern by selecting for eachline item the offer with the lowest evaluated price

(2) Evaluate an offer that specifies an award restrictionagainst the offered prices of the tentative award pattern apply-ing the appropriate evaluation factor on a line item basis

(3) Compute the total evaluated price for the tentativeaward pattern and the offer that specified an award restriction

(4) Unless the total evaluated price of the offer thatspecified an award restriction is less than the total evaluatedprice of the tentative award pattern award based on the ten-tative award pattern

(c) If the solicitation specifies that award will be made onlyon a group of line items or all line items contained in the solic-itation determine the category of end products on the basis ofeach line item but determine whether to apply an evaluationfactor on the basis of the group of items (see 25504-4 Exam-ple 2)

(1) If the proposed price of domestic end productsexceeds 50 percent of the total proposed price of the group

FAC 2005ndash09 APRIL 19 2006

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 2: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

(BLANK PAGE)

FAC 2005-43 LIST OF SUBJECTS Item Title Page I Government Property i

II Registry of Disaster Response Contractors i III Recovery Act Subcontract Reporting ii Procedures (Interim) IV Clarification of Criteria for Sole Source ii Awards to Service-disabled Veteran-owned Small Business Concerns V Trade Agreements Thresholds (Interim) iii

(BLANK PAGE)

FAC 2005-43 SUMMARY OF ITEMS

Federal Acquisition Circular (FAC) 2005-43 amends the Federal Acquisition Regulation (FAR) as specified below Item ImdashGovernment Property (FAR Case 2008-011)

This final rule amends the FAR to revise FAR part 45 and its associated clauses Changes are being made to FAR parts 2 4 15 32 42 45 and 52 These changes are to clarify and correct the previous FAR rule for part 45 Government Property published under Federal Acquisition Circular 2005-17 FAR case 2004-025 May 15 2007 (72 FR 27364) Minor changes are made to the proposed rule published August 6 2009 (74 FR 39262) The rule specifically impacts contracting officers property administrators and contractors responsible for the management of Government property The rule does not affect the method of managing Government property The rule merely clarifies and corrects the previous FAR rule Replacement pages 21-11 thru 21-14 47-1 and 47-2 154-7 and 154-8 312-15 and 312-16 325-7 and 325-8 3210-3 and 3210-4 423-1 and 423-2 Part 45 TOC pp 45-1 and 45-2 451-1 and 451-2 452-1 and 452-2 454-1 and 454-2 455-1 and 455-2 456-1 thru 456-4 522-209 thru 522-212 522-229 and 522-230 522-267 thru 522-274 and 522-3621 and 522-3622 Item IImdashRegistry of Disaster Response Contractors (FAR Case 2008-035) This final rule adopts without change the interim rule implementing Pub L 109-295 the Department of Homeland Security Appropriations Act 2007 section 697 which requires the establishment and maintenance of a registry of disaster response contractors The Disaster Response Registry is located at wwwccrgov The Federal Emergency Management Agency (within the Department of Homeland Security) has a link to the registry for vendors on its website at httpwwwfemagovbusinesscontractorshtm The Registry covers domestic disaster and emergency relief activities Replacement pages None

i

Item IIImdashRecovery Act Subcontract Reporting Procedures (FAR Case 2010-008) (Interim) This interim rule amends the FAR to revise the clause at FAR 52204-11 American Recovery and Reinvestment ActmdashReporting Requirements The revised clause will require first-tier subcontractors with Recovery Act funded awards of $25000 or more to report jobs information to the prime contractor for reporting into FederalReportinggov It also will require the prime contractor to submit its first report on or before the 10th day after the end of the calendar quarter in which the prime contractor received the award and quarterly thereafter The revised clause will be used for all new solicitations and awards issued on or after the effective date of this interim rule This clause is not required for any existing contracts or task and delivery orders issued under a contract that contain the original clause FAR 52204-11 (March 2009) Therefore this interim rule does not require renegotiation of existing Recovery Act contracts that include the clause dated March 2009 Replacement pages 415-1 and 415-2 522-121 and 522-122 (522-123 and 522-124 removed) and 522-39 and 522-40 Item IVmdashClarification of Criteria for Sole Source Awards to Service-disabled Veteran-owned Small Business Concerns (FAR Case 2008-023) This final rule amends FAR 191406(a) to clarify the criteria that need to be met in order to conduct a sole source service-disabled veteran-owned small business (SDVOSB) concern acquisition The FAR language is amended to be consistent with the Veterans Benefit Act of 2003 (15 USC 657f) and the Small Business Administrationrsquos regulation (13 CFR 12520) that implements the Act This final rule also amends FAR 191306(a) to clarify the criteria that need to be met in order to conduct a sole source for Historically Underutilized Business Zone (HUBZone) small business concern acquisitions These amendments to the FAR alleviate confusion for contracting officers on the appropriate use of the criteria needed to conduct sole source HUBZONE small business and SDVOSB concern acquisitions Replacement pages 1913-1 and 1913-2 and 1914-1 and 1914-2

ii

Item VmdashTrade Agreements Thresholds (FAR Case 2009-040) (Interim) This interim rule adjusts the thresholds for application of the World Trade Organization Government Procurement Agreement and the free trade agreements as determined by the United States Trade Representative according to a pre-determined formula under the agreements Replacement pages 2215-1 and 2215-2 252-1 and 252-2 254-3 and 254-4 255-1 and 255-2 256-1 and 256-2 2511-1 and 2511-2 522-39 and 522-40 522-421 and 522-422 and 522-111 and 522-112

iii

(BLANK PAGE)

FAC 2005-43 FILING INSTRUCTIONS

NOTE The FAR is segmented by subparts The FAR page numbers reflect FAR subparts For example ldquo415-1rdquo is page one of subpart 415

Remove Pages Insert Pages

415-1 and 415-2 415-1 and 415-2 2215-1 and 2215-2 2215-1 and 2215-2 252-1 and 252-2 252-1 and 252-2 254-3 and 254-4 254-3 and 254-4 255-1 and 255-2 255-1 and 255-2 256-1 and 256-2 256-1 and 256-2 2511-1 and 2511-2 2511-1 and 2511-2 522-121 thru 522-124 522-121 and 522-122 522-39 and 522-40 522-39 and 522-40 522-421 and 522-422 522-421 and 522-422 522-111 and 522-112 522-111 and 522-112

(BLANK PAGE)

SUBPART 415mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS 41502

415-1

Subpart 415mdashAmerican Recovery and Reinvestment ActmdashReporting Requirements

41500 Scope of subpartThis subpart implements section 1512(c) of Division A of

the American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) which requires as a condition ofreceipt of funds quarterly reporting on the use of funds Thesubpart also implements the data elements of the FederalFunding Accountability and Transparency Act of 2006 asamended (Pub L 109-282) Contractors that receive awards(or modifications to existing awards) funded in whole or inpart by the Recovery Act must report information includingbut not limited tomdash

(a) The dollar amount of contractor invoices(b) The supplies delivered and services performed(c) An assessment of the completion status of the work(d) An estimate of the number of jobs created and the num-

ber of jobs retained as a result of the Recovery Act funds(e) Names and total compensation of each of the five most

highly compensated officers for the calendar year in which thecontract is awarded and

(f) Specific information on first-tier subcontractors

41501 Procedures(a) In any contract action funded in whole or in part by the

Recovery Act the contracting officer shall indicate that thecontract action is being made under the Recovery Act andindicate which products or services are funded under theRecovery Act This requirement applies whenever RecoveryAct funds are used regardless of the contract instrument

(b) To maximize transparency of Recovery Act funds thatmust be reported by the contractor the contracting officer

shall structure contract awards to allow for separately trackingRecovery Act funds For example the contracting officer mayconsider awarding dedicated separate contracts when usingRecovery Act funds or establishing contract line item number(CLIN) structures to mitigate commingling of Recovery fundswith other funds

(c) Contracting officers shall ensure that the contractorcomplies with the reporting requirements of 52204-11American Recovery and Reinvestment ActmdashReportingRequirements If the contractor fails to comply with thereporting requirements the contracting officer shall exerciseappropriate contractual remedies

(d) The contracting officer shall make the contractorrsquos fail-ure to comply with the reporting requirements a part of thecontractorrsquos performance information under Subpart 4215

41502 Contract clauseInsert the clause at 52204-11 American Recovery and

Reinvestment ActmdashReporting Requirements in all solicita-tions and contracts funded in whole or in part with RecoveryAct funds except classified solicitations and contracts Thisincludes but is not limited to Governmentwide AcquisitionContracts (GWACs) multi-agency contracts (MACs) Fed-eral Supply Schedule (FSS) contracts or agency indefinite-deliveryindefinite-quantity (IDIQ) contracts that will befunded with Recovery Act funds Contracting officers shallinclude this clause in any existing contract or order that willbe funded with Recovery Act funds Contracting officers maynot use Recovery Act funds on existing contracts and ordersif the clause at 52204-11 is not incorporated This clause isnot required for any existing contracts or task and deliveryorders issued under a contract that contains the originalclause FAR 52204-11 (March 2009)

FAC 2005-43 JULY 2 2010

415-2

This page intentionally left blank

SUBPART 2215mdashPROHIBITION OF ACQUISITION OF PRODUCTS PRODUCED BY FORCED OR INDENTURED CHILD LABOR 221503

2215-1

Subpart 2215mdashProhibition of Acquisition of Products Produced by Forced or Indentured

Child Labor

221500 ScopeThis subpart applies to acquisitions of supplies that exceed

the micro-purchase threshold

221501 DefinitionsAs used in this subpartmdashldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

ldquoList of Products Requiring Contractor Certification as toForced or Indentured Child Laborrdquo means the list publishedby the Department of Labor in accordance with EO 13126 ofJune 12 1999 Prohibition of Acquisition of Products Pro-duced by Forced or Indentured Child Labor The list identifiesproducts by their country of origin that the Departments ofLabor Treasury and State have a reasonable basis to believemight have been mined produced or manufactured by forcedor indentured child labor

221502 PolicyAgencies must take appropriate action to enforce the laws

prohibiting the manufacture or importation of products thathave been mined produced or manufactured wholly or in partby forced or indentured child labor (19 USC 130729 USC 201 et seq and 41 USC 35 et seq) Agenciesshould make every effort to avoid acquiring such products

221503 Procedures for acquiring end products on the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor(a) When issuing a solicitation for supplies expected to

exceed the micro-purchase threshold the contracting officermust check the List of Products Requiring Contractor Certifi-cation as to Forced or Indentured Child Labor (the List)(wwwdolgovilab) (see 221505(a)) Appearance of a prod-uct on the List is not a bar to purchase of any such productmined produced or manufactured in the identified countrybut rather is an alert that there is a reasonable basis to believethat such product may have been mined produced or manu-factured by forced or indentured child labor

(b) The requirements of this subpart that result from theappearance of any end product on the List do not apply to asolicitation or contract if the identified country of origin on theList ismdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more (Subpart 254)

(2) Israel and the anticipated value of the acquisition is$50000 or more (see 25406)

(3) Mexico and the anticipated value of the acquisitionis $70079 or more (see Subpart 254) or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more (see 25402(b))

(c) Except as provided in paragraph (b) of this sectionbefore the contracting officer may make an award for an endproduct (regardless of country of origin) of a type identifiedby country of origin on the List the offeror must certify thatmdash

(1) It will not supply any end product on the List thatwas mined produced or manufactured in a country identifiedon the List for that product as specified in the solicitation bythe contracting officer in the Certification Regarding Knowl-edge of Child Labor for Listed End Products or

(2)(i) It has made a good faith effort to determinewhether forced or indentured child labor was used to mineproduce or manufacture any end product to be furnishedunder the contract that is on the List and was mined producedor manufactured in a country identified on the List for thatproduct and

(ii) On the basis of those efforts the offeror isunaware of any such use of child labor

(d) Absent any actual knowledge that the certification isfalse the contracting officer must rely on the offerorsrsquo certi-fications in making award decisions

(e) Whenever a contracting officer has reason to believethat forced or indentured child labor was used to mine pro-duce or manufacture an end product furnished pursuant to acontract awarded subject to the certification required inparagraph (c) of this section the contracting officer must referthe matter for investigation by the agencyrsquos Inspector Generalthe Attorney General or the Secretary of the Treasury which-ever is determined appropriate in accordance with agency pro-cedures except to the extent that the end product is from thecountry listed in paragraph (b) of this section under a contractexceeding the applicable threshold

(f) Proper certification will not prevent the head of anagency from imposing remedies in accordance withsection 221504(a)(4) if it is later discovered that the contrac-tor has furnished an end product or component that has in factbeen mined produced or manufactured wholly or in partusing forced or indentured child labor

FAC 2005ndash43 JULY 2 2010

221504 FEDERAL ACQUISITION REGULATION

2215-2

221504 Violations and remedies(a) Violations The Government may impose remedies set

forth in paragraph (b) of this section for the following viola-tions (note that the violations in paragraphs (a)(3) and (a)(4)of this section go beyond violations of the requirements relat-ing to certification of end products) (see 221503)

(1) The contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor

(2) The contractor has failed to cooperate as required inaccordance with the clause at 52222-19 Child Labor Coop-eration with Authorities and Remedies with an investigationof the use of forced or indentured child labor by an InspectorGeneral the Attorney General or the Secretary of theTreasury

(3) The contractor uses forced or indentured child laborin its mining production or manufacturing processes

(4) The contractor has furnished an end product or com-ponent mined produced or manufactured wholly or in partby forced or indentured child labor Remedies inparagraphs (b)(2) and (b)(3) of this section are inappropriateunless the contractor knew of the violation

(b) Remedies (1) The contracting officer may terminatethe contract

(2) The suspending official may suspend the contractorin accordance with the procedures in Subpart 94

(3) The debarring official may debar the contractor fora period not to exceed 3 years in accordance with the proce-dures in Subpart 94

221505 Solicitation provision and contract clause(a) Except as provided in paragraph (b) of 221503 insert

the provision at 52222-18 Certification Regarding Knowl-edge of Child Labor for Listed End Products in all solicita-tions that are expected to exceed the micro-purchase thresholdand are for the acquisition of end products (regardless of coun-try of origin) of a type identified by country of origin on theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor except solicitations forcommercial items that include the provision at 52212-3 Off-eror Representations and CertificationsmdashCommercial ItemsThe contracting officer must identify in paragraph (b) of theprovision at 52222-18 Certification Regarding Knowledgeof Child Labor for Listed End Products or paragraph (i)(1) ofthe provision at 52212-3 any applicable end products andcountries of origin from the List For solicitations estimatedto equal or exceed $25000 the contracting officer mustexclude from the List in the solicitation end products from anycountries identified at 221503(b) in accordance with thespecified thresholds

(b) Insert the clause at 52222-19 Child LabormdashCoopera-tion with Authorities and Remedies in all solicitations andcontracts for the acquisition of supplies that are expected toexceed the micro-purchase thresholds

SUBPART 252mdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25205

252-1

Subpart 252mdashBuy American ActmdashConstruction Materials

25200 Scope of Subpart(a) This subpart implementsmdash

(1) The Buy American Act (41 USC 10a - 10d)(2) Executive Order 10582 December 17 1954 and(3) Waiver of the component test of the Buy American

Act for acquisitions of commercially available off-the-shelf(COTS) items in accordance with 41 USC 431

(b) It applies to contracts for the construction alteration orrepair of any public building or public work in the UnitedStates

(c) When using funds appropriated or otherwise providedby the American Recovery and Reinvestment Act of 2009(Pub L 111-5) (Recovery Act) for construction seeSubpart 256

25201 PolicyExcept as provided in 25202 use only domestic construc-

tion materials in construction contracts performed in theUnited States

25202 Exceptions(a) When one of the following exceptions applies the con-

tracting officer may acquire foreign construction materialswithout regard to the restrictions of the Buy American Act

(1) Impracticable or inconsistent with public interestThe head of the agency may determine that application of therestrictions of the Buy American Act to a particular construc-tion material would be impracticable or would be inconsistentwith the public interest The public interest exception applieswhen an agency has an agreement with a foreign governmentthat provides a blanket exception to the Buy American Act

(2) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(3) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25204

(b) Determination and findings When a determination ismade for any of the reasons stated in this section that certainforeign construction materials may be used the contractingofficer must list the excepted materials in the contract Theagency must make the findings justifying the exception avail-able for public inspection

(c) Acquisitions under trade agreements For constructioncontracts with an estimated acquisition value of $7804000 ormore see Subpart 254

25203 Preaward determinations(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of the Buy American Act for specifically identified con-struction materials The time for submitting the request isspecified in the solicitation in paragraph (b) of either52225-10 or 52225-12 whichever applies The informationand supporting data that must be included in the request arealso specified in the solicitation in paragraphs (c) and (d) ofeither 52225-9 or 52225-11 whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily availableinformation

25204 Evaluating offers of foreign construction material(a) Offerors proposing to use foreign construction material

other than that listed by the Government in the applicableclause at 52225-9 paragraph (b)(2) or 52225-11paragraph (b)(3) or covered by the WTO GPA or a Free TradeAgreement (paragraph (b)(2) of 52225-11) must provide theinformation required by paragraphs (c) and (d) of the respec-tive clauses

(b) Unless the head of the agency specifies a higher per-centage the contracting officer must add to the offered price6 percent of the cost of any foreign construction material pro-posed for exception from the requirements of the Buy Amer-ican Act based on the unreasonable cost of domesticconstruction materials In the case of a tie the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(2) of52225-9 or paragraph (b)(3) of 52225-11) the contractingofficer must add the excepted materials to the list in the con-tract clause

25205 Postaward determinations(a) If a contractor requests a determination regarding the

inapplicability of the Buy American Act after contract awardthe contractor must explain why it could not request the deter-mination before contract award or why the need for such

FAC 2005ndash43 JULY 2 2010

25206 FEDERAL ACQUISITION REGULATION

252-2

determination otherwise was not reasonably foreseeable Ifthe contracting officer concludes that the contractor shouldhave made the request before contract award the contractingofficer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability of theBuy American Act made after contract award on informationrequired by paragraphs (c) and (d) of the applicable clause at52225-9 or 52225-11 andor other readily availableinformation

(c) If a determination under 25202(a) is made after con-tract award that an exception to the Buy American Actapplies the contracting officer must negotiate adequate con-sideration and modify the contract to allow use of the foreignconstruction material When the basis for the exception is theunreasonable price of a domestic construction material ade-quate consideration is at least the differential established in25202(a) or in accordance with agency procedures

25206 NoncomplianceThe contracting officer mustmdash(a) Review allegations of Buy American Act violations(b) Unless fraud is suspected notify the contractor of the

apparent unauthorized use of foreign construction materialand request a reply to include proposed corrective action and

(c) If the review reveals that a contractor or subcontractorhas used foreign construction material without authorizationtake appropriate action including one or more of thefollowing

(1) Process a determination concerning the inapplica-bility of the Buy American Act in accordance with 25205

(2) Consider requiring the removal and replacement ofthe unauthorized foreign construction material

(3) If removal and replacement of foreign constructionmaterial incorporated in a building or work would be imprac-ticable cause undue delay or otherwise be detrimental to theinterests of the Government the contracting officer maydetermine in writing that the foreign construction materialneed not be removed and replaced A determination to retainforeign construction material does not constitute a determina-tion that an exception to the Buy American Act applies andthis should be stated in the determination Further a determi-nation to retain foreign construction material does not affectthe Governmentrsquos right to suspend or debar a contractor sub-contractor or supplier for violation of the Buy American Actor to exercise other contractual rights and remedies such asreducing the contract price or terminating the contract fordefault

(4) If the noncompliance is sufficiently serious con-sider exercising appropriate contractual remedies such as ter-minating the contract for default Also consider preparing andforwarding a report to the agency suspending or debarringofficial in accordance with Subpart 94 If the noncomplianceappears to be fraudulent refer the matter to other appropriateagency officials such as the officer responsible for criminalinvestigation

SUBPART 254mdashTRADE AGREEMENTS 25404

254-3

25402 General(a)(1) The Trade Agreements Act (19 USC 2501 et seq)

provides the authority for the President to waive the BuyAmerican Act and other discriminatory provisions for eligibleproducts from countries that have signed an internationaltrade agreement with the United States or that meet certainother criteria such as being a least developed country ThePresident has delegated this waiver authority to the US TradeRepresentative In acquisitions covered by the WTO GPAFree Trade Agreements or the Israeli Trade Act the USTRhas waived the Buy American Act and other discriminatoryprovisions for eligible products Offers of eligible productsreceive equal consideration with domestic offers

(2) The contracting officer shall determine the origin ofservices by the country in which the firm providing the ser-vices is established See Subpart 255 for evaluation proce-dures for supply contracts covered by trade agreements

(b) The value of the acquisition is a determining factor inthe applicability of trade agreements Most of these dollarthresholds are subject to revision by the US Trade Represen-tative approximately every 2 years The various thresholds aresummarized as follows

25403 World Trade Organization Government Procurement Agreement and Free Trade Agreements(a) Eligible products from WTO GPA and FTA countries

are entitled to the nondiscriminatory treatment specified in25402(a)(1) The WTO GPA and FTAs specify procurementprocedures designed to ensure fairness (see 25408)

(b) Thresholds (1) To determine whether the acquisitionof products by lease rental or lease-purchase contract(including lease-to-ownership or lease-with-option-to pur-chase) is covered by the WTO GPA or an FTA calculate theestimated acquisition value as follows

(i) If a fixed-term contract of 12 months or less iscontemplated use the total estimated value of the acquisition

(ii) If a fixed-term contract of more than 12 monthsis contemplated use the total estimated value of the acquisi-tion plus the estimated residual value of the leased equipmentat the conclusion of the contemplated term of the contract

(iii) If an indefinite-term contract is contemplateduse the estimated monthly payment multiplied by the totalnumber of months that ordering would be possible under theproposed contract ie the initial ordering period plus anyoptional ordering periods

(iv) If there is any doubt as to the contemplated termof the contract use the estimated monthly payment multipliedby 48

(2) The estimated value includes the value of alloptions

(3) If in any 12-month period recurring or multipleawards for the same type of product or products are antici-pated use the total estimated value of these projected awardsto determine whether the WTO GPA or an FTA applies Donot divide any acquisition with the intent of reducing the esti-mated value of the acquisition below the dollar threshold ofthe WTO GPA or an FTA

(c) Purchase restriction (1) Under the Trade AgreementsAct (19 USC 2512) in acquisitions covered by the WTOGPA acquire only US-made or designated country end prod-ucts or US or designated country services unless offers forsuch end products or services are either not received or areinsufficient to fulfill the requirements This purchase restric-tion does not apply below the WTO GPA threshold for sup-plies and services even if the acquisition is covered by anFTA

(2) This restriction does not apply to purchases of sup-plies by the Department of Defense from a country with whichit has entered into a reciprocal agreement as provided indepartmental regulations

25404 Least developed countriesFor acquisitions covered by the WTO GPA least devel-

oped country end products construction material and ser-vices must be treated as eligible products

Trade Agreement

Supply Contract

(equal to or exceeding)

Service Contract

(equal to or exceeding)

Construction Contract

(equal to or exceeding)

WTO GPA $203000 $203000 $7804000FTAs

Australia FTA 70079 70079 7804000Bahrain FTA 203000 203000 9110318CAFTA-DR (Costa Rica Dominican Republic El Salvador Guatemala Honduras and Nicaragua)

70079 70079 7804000

Chile FTA 70079 70079 7804000Morocco FTA 203000 203000 7804000NAFTAmdashCanada 25000 70079 9110318mdashMexico 70079 70079 9110318Oman FTA 203000 203000 9110318Peru FTA 203000 203000 7804000Singapore FTA 70079 70079 7804000

Israeli Trade Act 50000 mdash mdash

FAC 2005ndash43 JULY 2 2010

25405 FEDERAL ACQUISITION REGULATION

254-4

25405 Caribbean Basin Trade InitiativeUnder the Caribbean Basin Trade Initiative the United

States Trade Representative has determined that for acquisi-tions covered by the WTO GPA Caribbean Basin country endproducts construction material and services must be treatedas eligible products In accordance with Section 201 (a)(3) ofthe Dominican Republic-Central America-United States FreeTrade Implementation Act (Pub L 109-53) when theCAFTA-DR agreement enters into force with respect to acountry that country is no longer designated as a beneficiarycountry for purposes of the Caribbean Basin EconomicRecovery Act and is therefore no longer included in the def-inition of ldquoCaribbean Basin countryrdquo for purposes of the Car-ibbean Basin Trade Initiative

25406 Israeli Trade ActAcquisitions of supplies by most agencies are covered by

the Israeli Trade Act if the estimated value of the acquisitionis $50000 or more but does not exceed the WTO GPA thresh-old for supplies (see 25402(b)) Agencies other than theDepartment of Defense the Department of Energy theDepartment of Transportation the Bureau of Reclamation ofthe Department of the Interior the Federal Housing FinanceBoard and the Office of Thrift Supervision must evaluateoffers of Israeli end products without regard to the restrictionsof the Buy American Act The Israeli Trade Act does not pro-hibit the purchase of other foreign end products

25407 Agreement on Trade in Civil AircraftUnder the authority of Section 303 of the Trade Agree-

ments Act the US Trade Representative has waived the Buy

American Act for civil aircraft and related articles that meetthe substantial transformation test of the Trade AgreementsAct from countries that are parties to the Agreement on Tradein Civil Aircraft Those countries are Austria Belgium Bul-garia Canada Denmark Egypt Finland France GermanyGreece Ireland Italy Japan Luxembourg Macao the Neth-erlands Norway Portugal Romania Spain Sweden Swit-zerland and the United Kingdom

25408 Procedures(a) If the WTO GPA or an FTA applies (see 25401) the

contracting officer mustmdash(1) Comply with the requirements of 5203 Publicizing

and response time(2) Comply with the requirements of 5207 Preparation

and transmittal of synopses(3) Not include technical requirements in solicitations

solely to preclude the acquisition of eligible products(4) Specify in solicitations that offerors must submit

offers in the English language and in US dollars (see52214-34 Submission of Offers in the English Languageand 52214-35 Submission of Offers in US Currency orparagraph (c)(5) of 52215-1 Instruction to OfferorsmdashCom-petitive Acquisitions) and

(5) Provide unsuccessful offerors from WTO GPA orFTA countries notice in accordance with 14409-1 or 15503

(b) See Subpart 255 for evaluation procedures andexamples

SUBPART 255mdashEVALUATING FOREIGN OFFERSmdashSUPPLY CONTRACTS 25503

255-1

Subpart 255mdashEvaluating Foreign OffersmdashSupply Contracts

25501 GeneralThe contracting officermdash(a) Must apply the evaluation procedures of this subpart to

each line item of an offer unless either the offer or the solici-tation specifies evaluation on a group basis (see 25503)

(b) May rely on the offerorrsquos certification of end productorigin when evaluating a foreign offer

(c) Must identify and reject offers of end products that areprohibited in accordance with Subpart 257 and

(d) Must not use the Buy American Act evaluation factorsprescribed in this subpart to provide a preference for one for-eign offer over another foreign offer

25502 Application(a) Unless otherwise specified in agency regulations per-

form the following steps in the order presented(1) Eliminate all offers or offerors that are unacceptable

for reasons other than price eg nonresponsive debarred orsuspended or a prohibited source (see Subpart 257)

(2) Rank the remaining offers by price(3) If the solicitation specifies award on the basis of fac-

tors in addition to cost or price apply the evaluation factorsas specified in this section and use the evaluated cost or pricein determining the offer that represents the best value to theGovernment

(b) For acquisitions covered by the WTO GPA (seeSubpart 254)mdash

(1) Consider only offers of US-made or designatedcountry end products unless no offers of such end productswere received

(2) If the agency gives the same consideration given eli-gible offers to offers of US-made end products that are notdomestic end products award on the low offer Otherwiseevaluate in accordance with agency procedures and

(3) If there were no offers of US-made or designatedcountry end products make a nonavailability determination(see 25103(b)(2)) and award on the low offer (see 25403(c))

(c) For acquisitions not covered by the WTO GPA but sub-ject to the Buy American Act (an FTA or the Israeli Trade Actalso may apply) the following applies

(1) If the low offer is a domestic offer or an eligible offerunder an FTA or the Israeli Trade Act award on that offer

(2) If the low offer is a noneligible offer and there wereno domestic offers (see 25103(b)(3)) award on the low offer

(3) If the low offer is a noneligible offer and there is aneligible offer that is lower than the lowest domestic offeraward on the low offer The Buy American Act provides anevaluation preference only for domestic offers

(4) Otherwise apply the appropriate evaluation factorprovided in 25105 to the low offer

(i) If the evaluated price of the low offer remains lessthan the lowest domestic offer award on the low offer

(ii) If the price of the lowest domestic offer is lessthan the evaluated price of the low offer award on the lowestdomestic offer

(d) Ties (1) If application of an evaluation factor results ina tie between a domestic offer and a foreign offer award onthe domestic offer

(2) If no evaluation preference was applied (ie offersafforded nondiscriminatory treatment under the Buy Ameri-can Act) resolve ties between domestic and foreign offers bya witnessed drawing of lots by an impartial individual

(3) Resolve ties between foreign offers from small busi-ness concerns (under the Buy American Act a small businessoffering a manufactured article that does not meet the defini-tion of ldquodomestic end productrdquo is a foreign offer) or foreignoffers from a small business concern and a large business con-cern in accordance with 14408-6(a)

25503 Group offers(a) If the solicitation or an offer specifies that award can be

made only on a group of line items or on all line items con-tained in the solicitation or offer reject the offermdash

(1) If any part of the award would consist of prohibitedend products (see Subpart 257) or

(2) If the acquisition is covered by the WTO GPA andany part of the offer consists of items restricted in accordancewith 22403(c)

(b) If an offer restricts award to a group of line items or toall line items contained in the offer determine for each lineitem whether to apply an evaluation factor (see 25504-4Example 1)

(1) First evaluate offers that do not specify an awardrestriction on a line item basis in accordance with 25502determining a tentative award pattern by selecting for eachline item the offer with the lowest evaluated price

(2) Evaluate an offer that specifies an award restrictionagainst the offered prices of the tentative award pattern apply-ing the appropriate evaluation factor on a line item basis

(3) Compute the total evaluated price for the tentativeaward pattern and the offer that specified an award restriction

(4) Unless the total evaluated price of the offer thatspecified an award restriction is less than the total evaluatedprice of the tentative award pattern award based on the ten-tative award pattern

(c) If the solicitation specifies that award will be made onlyon a group of line items or all line items contained in the solic-itation determine the category of end products on the basis ofeach line item but determine whether to apply an evaluationfactor on the basis of the group of items (see 25504-4 Exam-ple 2)

(1) If the proposed price of domestic end productsexceeds 50 percent of the total proposed price of the group

FAC 2005ndash09 APRIL 19 2006

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 3: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

FAC 2005-43 LIST OF SUBJECTS Item Title Page I Government Property i

II Registry of Disaster Response Contractors i III Recovery Act Subcontract Reporting ii Procedures (Interim) IV Clarification of Criteria for Sole Source ii Awards to Service-disabled Veteran-owned Small Business Concerns V Trade Agreements Thresholds (Interim) iii

(BLANK PAGE)

FAC 2005-43 SUMMARY OF ITEMS

Federal Acquisition Circular (FAC) 2005-43 amends the Federal Acquisition Regulation (FAR) as specified below Item ImdashGovernment Property (FAR Case 2008-011)

This final rule amends the FAR to revise FAR part 45 and its associated clauses Changes are being made to FAR parts 2 4 15 32 42 45 and 52 These changes are to clarify and correct the previous FAR rule for part 45 Government Property published under Federal Acquisition Circular 2005-17 FAR case 2004-025 May 15 2007 (72 FR 27364) Minor changes are made to the proposed rule published August 6 2009 (74 FR 39262) The rule specifically impacts contracting officers property administrators and contractors responsible for the management of Government property The rule does not affect the method of managing Government property The rule merely clarifies and corrects the previous FAR rule Replacement pages 21-11 thru 21-14 47-1 and 47-2 154-7 and 154-8 312-15 and 312-16 325-7 and 325-8 3210-3 and 3210-4 423-1 and 423-2 Part 45 TOC pp 45-1 and 45-2 451-1 and 451-2 452-1 and 452-2 454-1 and 454-2 455-1 and 455-2 456-1 thru 456-4 522-209 thru 522-212 522-229 and 522-230 522-267 thru 522-274 and 522-3621 and 522-3622 Item IImdashRegistry of Disaster Response Contractors (FAR Case 2008-035) This final rule adopts without change the interim rule implementing Pub L 109-295 the Department of Homeland Security Appropriations Act 2007 section 697 which requires the establishment and maintenance of a registry of disaster response contractors The Disaster Response Registry is located at wwwccrgov The Federal Emergency Management Agency (within the Department of Homeland Security) has a link to the registry for vendors on its website at httpwwwfemagovbusinesscontractorshtm The Registry covers domestic disaster and emergency relief activities Replacement pages None

i

Item IIImdashRecovery Act Subcontract Reporting Procedures (FAR Case 2010-008) (Interim) This interim rule amends the FAR to revise the clause at FAR 52204-11 American Recovery and Reinvestment ActmdashReporting Requirements The revised clause will require first-tier subcontractors with Recovery Act funded awards of $25000 or more to report jobs information to the prime contractor for reporting into FederalReportinggov It also will require the prime contractor to submit its first report on or before the 10th day after the end of the calendar quarter in which the prime contractor received the award and quarterly thereafter The revised clause will be used for all new solicitations and awards issued on or after the effective date of this interim rule This clause is not required for any existing contracts or task and delivery orders issued under a contract that contain the original clause FAR 52204-11 (March 2009) Therefore this interim rule does not require renegotiation of existing Recovery Act contracts that include the clause dated March 2009 Replacement pages 415-1 and 415-2 522-121 and 522-122 (522-123 and 522-124 removed) and 522-39 and 522-40 Item IVmdashClarification of Criteria for Sole Source Awards to Service-disabled Veteran-owned Small Business Concerns (FAR Case 2008-023) This final rule amends FAR 191406(a) to clarify the criteria that need to be met in order to conduct a sole source service-disabled veteran-owned small business (SDVOSB) concern acquisition The FAR language is amended to be consistent with the Veterans Benefit Act of 2003 (15 USC 657f) and the Small Business Administrationrsquos regulation (13 CFR 12520) that implements the Act This final rule also amends FAR 191306(a) to clarify the criteria that need to be met in order to conduct a sole source for Historically Underutilized Business Zone (HUBZone) small business concern acquisitions These amendments to the FAR alleviate confusion for contracting officers on the appropriate use of the criteria needed to conduct sole source HUBZONE small business and SDVOSB concern acquisitions Replacement pages 1913-1 and 1913-2 and 1914-1 and 1914-2

ii

Item VmdashTrade Agreements Thresholds (FAR Case 2009-040) (Interim) This interim rule adjusts the thresholds for application of the World Trade Organization Government Procurement Agreement and the free trade agreements as determined by the United States Trade Representative according to a pre-determined formula under the agreements Replacement pages 2215-1 and 2215-2 252-1 and 252-2 254-3 and 254-4 255-1 and 255-2 256-1 and 256-2 2511-1 and 2511-2 522-39 and 522-40 522-421 and 522-422 and 522-111 and 522-112

iii

(BLANK PAGE)

FAC 2005-43 FILING INSTRUCTIONS

NOTE The FAR is segmented by subparts The FAR page numbers reflect FAR subparts For example ldquo415-1rdquo is page one of subpart 415

Remove Pages Insert Pages

415-1 and 415-2 415-1 and 415-2 2215-1 and 2215-2 2215-1 and 2215-2 252-1 and 252-2 252-1 and 252-2 254-3 and 254-4 254-3 and 254-4 255-1 and 255-2 255-1 and 255-2 256-1 and 256-2 256-1 and 256-2 2511-1 and 2511-2 2511-1 and 2511-2 522-121 thru 522-124 522-121 and 522-122 522-39 and 522-40 522-39 and 522-40 522-421 and 522-422 522-421 and 522-422 522-111 and 522-112 522-111 and 522-112

(BLANK PAGE)

SUBPART 415mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS 41502

415-1

Subpart 415mdashAmerican Recovery and Reinvestment ActmdashReporting Requirements

41500 Scope of subpartThis subpart implements section 1512(c) of Division A of

the American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) which requires as a condition ofreceipt of funds quarterly reporting on the use of funds Thesubpart also implements the data elements of the FederalFunding Accountability and Transparency Act of 2006 asamended (Pub L 109-282) Contractors that receive awards(or modifications to existing awards) funded in whole or inpart by the Recovery Act must report information includingbut not limited tomdash

(a) The dollar amount of contractor invoices(b) The supplies delivered and services performed(c) An assessment of the completion status of the work(d) An estimate of the number of jobs created and the num-

ber of jobs retained as a result of the Recovery Act funds(e) Names and total compensation of each of the five most

highly compensated officers for the calendar year in which thecontract is awarded and

(f) Specific information on first-tier subcontractors

41501 Procedures(a) In any contract action funded in whole or in part by the

Recovery Act the contracting officer shall indicate that thecontract action is being made under the Recovery Act andindicate which products or services are funded under theRecovery Act This requirement applies whenever RecoveryAct funds are used regardless of the contract instrument

(b) To maximize transparency of Recovery Act funds thatmust be reported by the contractor the contracting officer

shall structure contract awards to allow for separately trackingRecovery Act funds For example the contracting officer mayconsider awarding dedicated separate contracts when usingRecovery Act funds or establishing contract line item number(CLIN) structures to mitigate commingling of Recovery fundswith other funds

(c) Contracting officers shall ensure that the contractorcomplies with the reporting requirements of 52204-11American Recovery and Reinvestment ActmdashReportingRequirements If the contractor fails to comply with thereporting requirements the contracting officer shall exerciseappropriate contractual remedies

(d) The contracting officer shall make the contractorrsquos fail-ure to comply with the reporting requirements a part of thecontractorrsquos performance information under Subpart 4215

41502 Contract clauseInsert the clause at 52204-11 American Recovery and

Reinvestment ActmdashReporting Requirements in all solicita-tions and contracts funded in whole or in part with RecoveryAct funds except classified solicitations and contracts Thisincludes but is not limited to Governmentwide AcquisitionContracts (GWACs) multi-agency contracts (MACs) Fed-eral Supply Schedule (FSS) contracts or agency indefinite-deliveryindefinite-quantity (IDIQ) contracts that will befunded with Recovery Act funds Contracting officers shallinclude this clause in any existing contract or order that willbe funded with Recovery Act funds Contracting officers maynot use Recovery Act funds on existing contracts and ordersif the clause at 52204-11 is not incorporated This clause isnot required for any existing contracts or task and deliveryorders issued under a contract that contains the originalclause FAR 52204-11 (March 2009)

FAC 2005-43 JULY 2 2010

415-2

This page intentionally left blank

SUBPART 2215mdashPROHIBITION OF ACQUISITION OF PRODUCTS PRODUCED BY FORCED OR INDENTURED CHILD LABOR 221503

2215-1

Subpart 2215mdashProhibition of Acquisition of Products Produced by Forced or Indentured

Child Labor

221500 ScopeThis subpart applies to acquisitions of supplies that exceed

the micro-purchase threshold

221501 DefinitionsAs used in this subpartmdashldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

ldquoList of Products Requiring Contractor Certification as toForced or Indentured Child Laborrdquo means the list publishedby the Department of Labor in accordance with EO 13126 ofJune 12 1999 Prohibition of Acquisition of Products Pro-duced by Forced or Indentured Child Labor The list identifiesproducts by their country of origin that the Departments ofLabor Treasury and State have a reasonable basis to believemight have been mined produced or manufactured by forcedor indentured child labor

221502 PolicyAgencies must take appropriate action to enforce the laws

prohibiting the manufacture or importation of products thathave been mined produced or manufactured wholly or in partby forced or indentured child labor (19 USC 130729 USC 201 et seq and 41 USC 35 et seq) Agenciesshould make every effort to avoid acquiring such products

221503 Procedures for acquiring end products on the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor(a) When issuing a solicitation for supplies expected to

exceed the micro-purchase threshold the contracting officermust check the List of Products Requiring Contractor Certifi-cation as to Forced or Indentured Child Labor (the List)(wwwdolgovilab) (see 221505(a)) Appearance of a prod-uct on the List is not a bar to purchase of any such productmined produced or manufactured in the identified countrybut rather is an alert that there is a reasonable basis to believethat such product may have been mined produced or manu-factured by forced or indentured child labor

(b) The requirements of this subpart that result from theappearance of any end product on the List do not apply to asolicitation or contract if the identified country of origin on theList ismdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more (Subpart 254)

(2) Israel and the anticipated value of the acquisition is$50000 or more (see 25406)

(3) Mexico and the anticipated value of the acquisitionis $70079 or more (see Subpart 254) or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more (see 25402(b))

(c) Except as provided in paragraph (b) of this sectionbefore the contracting officer may make an award for an endproduct (regardless of country of origin) of a type identifiedby country of origin on the List the offeror must certify thatmdash

(1) It will not supply any end product on the List thatwas mined produced or manufactured in a country identifiedon the List for that product as specified in the solicitation bythe contracting officer in the Certification Regarding Knowl-edge of Child Labor for Listed End Products or

(2)(i) It has made a good faith effort to determinewhether forced or indentured child labor was used to mineproduce or manufacture any end product to be furnishedunder the contract that is on the List and was mined producedor manufactured in a country identified on the List for thatproduct and

(ii) On the basis of those efforts the offeror isunaware of any such use of child labor

(d) Absent any actual knowledge that the certification isfalse the contracting officer must rely on the offerorsrsquo certi-fications in making award decisions

(e) Whenever a contracting officer has reason to believethat forced or indentured child labor was used to mine pro-duce or manufacture an end product furnished pursuant to acontract awarded subject to the certification required inparagraph (c) of this section the contracting officer must referthe matter for investigation by the agencyrsquos Inspector Generalthe Attorney General or the Secretary of the Treasury which-ever is determined appropriate in accordance with agency pro-cedures except to the extent that the end product is from thecountry listed in paragraph (b) of this section under a contractexceeding the applicable threshold

(f) Proper certification will not prevent the head of anagency from imposing remedies in accordance withsection 221504(a)(4) if it is later discovered that the contrac-tor has furnished an end product or component that has in factbeen mined produced or manufactured wholly or in partusing forced or indentured child labor

FAC 2005ndash43 JULY 2 2010

221504 FEDERAL ACQUISITION REGULATION

2215-2

221504 Violations and remedies(a) Violations The Government may impose remedies set

forth in paragraph (b) of this section for the following viola-tions (note that the violations in paragraphs (a)(3) and (a)(4)of this section go beyond violations of the requirements relat-ing to certification of end products) (see 221503)

(1) The contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor

(2) The contractor has failed to cooperate as required inaccordance with the clause at 52222-19 Child Labor Coop-eration with Authorities and Remedies with an investigationof the use of forced or indentured child labor by an InspectorGeneral the Attorney General or the Secretary of theTreasury

(3) The contractor uses forced or indentured child laborin its mining production or manufacturing processes

(4) The contractor has furnished an end product or com-ponent mined produced or manufactured wholly or in partby forced or indentured child labor Remedies inparagraphs (b)(2) and (b)(3) of this section are inappropriateunless the contractor knew of the violation

(b) Remedies (1) The contracting officer may terminatethe contract

(2) The suspending official may suspend the contractorin accordance with the procedures in Subpart 94

(3) The debarring official may debar the contractor fora period not to exceed 3 years in accordance with the proce-dures in Subpart 94

221505 Solicitation provision and contract clause(a) Except as provided in paragraph (b) of 221503 insert

the provision at 52222-18 Certification Regarding Knowl-edge of Child Labor for Listed End Products in all solicita-tions that are expected to exceed the micro-purchase thresholdand are for the acquisition of end products (regardless of coun-try of origin) of a type identified by country of origin on theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor except solicitations forcommercial items that include the provision at 52212-3 Off-eror Representations and CertificationsmdashCommercial ItemsThe contracting officer must identify in paragraph (b) of theprovision at 52222-18 Certification Regarding Knowledgeof Child Labor for Listed End Products or paragraph (i)(1) ofthe provision at 52212-3 any applicable end products andcountries of origin from the List For solicitations estimatedto equal or exceed $25000 the contracting officer mustexclude from the List in the solicitation end products from anycountries identified at 221503(b) in accordance with thespecified thresholds

(b) Insert the clause at 52222-19 Child LabormdashCoopera-tion with Authorities and Remedies in all solicitations andcontracts for the acquisition of supplies that are expected toexceed the micro-purchase thresholds

SUBPART 252mdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25205

252-1

Subpart 252mdashBuy American ActmdashConstruction Materials

25200 Scope of Subpart(a) This subpart implementsmdash

(1) The Buy American Act (41 USC 10a - 10d)(2) Executive Order 10582 December 17 1954 and(3) Waiver of the component test of the Buy American

Act for acquisitions of commercially available off-the-shelf(COTS) items in accordance with 41 USC 431

(b) It applies to contracts for the construction alteration orrepair of any public building or public work in the UnitedStates

(c) When using funds appropriated or otherwise providedby the American Recovery and Reinvestment Act of 2009(Pub L 111-5) (Recovery Act) for construction seeSubpart 256

25201 PolicyExcept as provided in 25202 use only domestic construc-

tion materials in construction contracts performed in theUnited States

25202 Exceptions(a) When one of the following exceptions applies the con-

tracting officer may acquire foreign construction materialswithout regard to the restrictions of the Buy American Act

(1) Impracticable or inconsistent with public interestThe head of the agency may determine that application of therestrictions of the Buy American Act to a particular construc-tion material would be impracticable or would be inconsistentwith the public interest The public interest exception applieswhen an agency has an agreement with a foreign governmentthat provides a blanket exception to the Buy American Act

(2) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(3) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25204

(b) Determination and findings When a determination ismade for any of the reasons stated in this section that certainforeign construction materials may be used the contractingofficer must list the excepted materials in the contract Theagency must make the findings justifying the exception avail-able for public inspection

(c) Acquisitions under trade agreements For constructioncontracts with an estimated acquisition value of $7804000 ormore see Subpart 254

25203 Preaward determinations(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of the Buy American Act for specifically identified con-struction materials The time for submitting the request isspecified in the solicitation in paragraph (b) of either52225-10 or 52225-12 whichever applies The informationand supporting data that must be included in the request arealso specified in the solicitation in paragraphs (c) and (d) ofeither 52225-9 or 52225-11 whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily availableinformation

25204 Evaluating offers of foreign construction material(a) Offerors proposing to use foreign construction material

other than that listed by the Government in the applicableclause at 52225-9 paragraph (b)(2) or 52225-11paragraph (b)(3) or covered by the WTO GPA or a Free TradeAgreement (paragraph (b)(2) of 52225-11) must provide theinformation required by paragraphs (c) and (d) of the respec-tive clauses

(b) Unless the head of the agency specifies a higher per-centage the contracting officer must add to the offered price6 percent of the cost of any foreign construction material pro-posed for exception from the requirements of the Buy Amer-ican Act based on the unreasonable cost of domesticconstruction materials In the case of a tie the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(2) of52225-9 or paragraph (b)(3) of 52225-11) the contractingofficer must add the excepted materials to the list in the con-tract clause

25205 Postaward determinations(a) If a contractor requests a determination regarding the

inapplicability of the Buy American Act after contract awardthe contractor must explain why it could not request the deter-mination before contract award or why the need for such

FAC 2005ndash43 JULY 2 2010

25206 FEDERAL ACQUISITION REGULATION

252-2

determination otherwise was not reasonably foreseeable Ifthe contracting officer concludes that the contractor shouldhave made the request before contract award the contractingofficer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability of theBuy American Act made after contract award on informationrequired by paragraphs (c) and (d) of the applicable clause at52225-9 or 52225-11 andor other readily availableinformation

(c) If a determination under 25202(a) is made after con-tract award that an exception to the Buy American Actapplies the contracting officer must negotiate adequate con-sideration and modify the contract to allow use of the foreignconstruction material When the basis for the exception is theunreasonable price of a domestic construction material ade-quate consideration is at least the differential established in25202(a) or in accordance with agency procedures

25206 NoncomplianceThe contracting officer mustmdash(a) Review allegations of Buy American Act violations(b) Unless fraud is suspected notify the contractor of the

apparent unauthorized use of foreign construction materialand request a reply to include proposed corrective action and

(c) If the review reveals that a contractor or subcontractorhas used foreign construction material without authorizationtake appropriate action including one or more of thefollowing

(1) Process a determination concerning the inapplica-bility of the Buy American Act in accordance with 25205

(2) Consider requiring the removal and replacement ofthe unauthorized foreign construction material

(3) If removal and replacement of foreign constructionmaterial incorporated in a building or work would be imprac-ticable cause undue delay or otherwise be detrimental to theinterests of the Government the contracting officer maydetermine in writing that the foreign construction materialneed not be removed and replaced A determination to retainforeign construction material does not constitute a determina-tion that an exception to the Buy American Act applies andthis should be stated in the determination Further a determi-nation to retain foreign construction material does not affectthe Governmentrsquos right to suspend or debar a contractor sub-contractor or supplier for violation of the Buy American Actor to exercise other contractual rights and remedies such asreducing the contract price or terminating the contract fordefault

(4) If the noncompliance is sufficiently serious con-sider exercising appropriate contractual remedies such as ter-minating the contract for default Also consider preparing andforwarding a report to the agency suspending or debarringofficial in accordance with Subpart 94 If the noncomplianceappears to be fraudulent refer the matter to other appropriateagency officials such as the officer responsible for criminalinvestigation

SUBPART 254mdashTRADE AGREEMENTS 25404

254-3

25402 General(a)(1) The Trade Agreements Act (19 USC 2501 et seq)

provides the authority for the President to waive the BuyAmerican Act and other discriminatory provisions for eligibleproducts from countries that have signed an internationaltrade agreement with the United States or that meet certainother criteria such as being a least developed country ThePresident has delegated this waiver authority to the US TradeRepresentative In acquisitions covered by the WTO GPAFree Trade Agreements or the Israeli Trade Act the USTRhas waived the Buy American Act and other discriminatoryprovisions for eligible products Offers of eligible productsreceive equal consideration with domestic offers

(2) The contracting officer shall determine the origin ofservices by the country in which the firm providing the ser-vices is established See Subpart 255 for evaluation proce-dures for supply contracts covered by trade agreements

(b) The value of the acquisition is a determining factor inthe applicability of trade agreements Most of these dollarthresholds are subject to revision by the US Trade Represen-tative approximately every 2 years The various thresholds aresummarized as follows

25403 World Trade Organization Government Procurement Agreement and Free Trade Agreements(a) Eligible products from WTO GPA and FTA countries

are entitled to the nondiscriminatory treatment specified in25402(a)(1) The WTO GPA and FTAs specify procurementprocedures designed to ensure fairness (see 25408)

(b) Thresholds (1) To determine whether the acquisitionof products by lease rental or lease-purchase contract(including lease-to-ownership or lease-with-option-to pur-chase) is covered by the WTO GPA or an FTA calculate theestimated acquisition value as follows

(i) If a fixed-term contract of 12 months or less iscontemplated use the total estimated value of the acquisition

(ii) If a fixed-term contract of more than 12 monthsis contemplated use the total estimated value of the acquisi-tion plus the estimated residual value of the leased equipmentat the conclusion of the contemplated term of the contract

(iii) If an indefinite-term contract is contemplateduse the estimated monthly payment multiplied by the totalnumber of months that ordering would be possible under theproposed contract ie the initial ordering period plus anyoptional ordering periods

(iv) If there is any doubt as to the contemplated termof the contract use the estimated monthly payment multipliedby 48

(2) The estimated value includes the value of alloptions

(3) If in any 12-month period recurring or multipleawards for the same type of product or products are antici-pated use the total estimated value of these projected awardsto determine whether the WTO GPA or an FTA applies Donot divide any acquisition with the intent of reducing the esti-mated value of the acquisition below the dollar threshold ofthe WTO GPA or an FTA

(c) Purchase restriction (1) Under the Trade AgreementsAct (19 USC 2512) in acquisitions covered by the WTOGPA acquire only US-made or designated country end prod-ucts or US or designated country services unless offers forsuch end products or services are either not received or areinsufficient to fulfill the requirements This purchase restric-tion does not apply below the WTO GPA threshold for sup-plies and services even if the acquisition is covered by anFTA

(2) This restriction does not apply to purchases of sup-plies by the Department of Defense from a country with whichit has entered into a reciprocal agreement as provided indepartmental regulations

25404 Least developed countriesFor acquisitions covered by the WTO GPA least devel-

oped country end products construction material and ser-vices must be treated as eligible products

Trade Agreement

Supply Contract

(equal to or exceeding)

Service Contract

(equal to or exceeding)

Construction Contract

(equal to or exceeding)

WTO GPA $203000 $203000 $7804000FTAs

Australia FTA 70079 70079 7804000Bahrain FTA 203000 203000 9110318CAFTA-DR (Costa Rica Dominican Republic El Salvador Guatemala Honduras and Nicaragua)

70079 70079 7804000

Chile FTA 70079 70079 7804000Morocco FTA 203000 203000 7804000NAFTAmdashCanada 25000 70079 9110318mdashMexico 70079 70079 9110318Oman FTA 203000 203000 9110318Peru FTA 203000 203000 7804000Singapore FTA 70079 70079 7804000

Israeli Trade Act 50000 mdash mdash

FAC 2005ndash43 JULY 2 2010

25405 FEDERAL ACQUISITION REGULATION

254-4

25405 Caribbean Basin Trade InitiativeUnder the Caribbean Basin Trade Initiative the United

States Trade Representative has determined that for acquisi-tions covered by the WTO GPA Caribbean Basin country endproducts construction material and services must be treatedas eligible products In accordance with Section 201 (a)(3) ofthe Dominican Republic-Central America-United States FreeTrade Implementation Act (Pub L 109-53) when theCAFTA-DR agreement enters into force with respect to acountry that country is no longer designated as a beneficiarycountry for purposes of the Caribbean Basin EconomicRecovery Act and is therefore no longer included in the def-inition of ldquoCaribbean Basin countryrdquo for purposes of the Car-ibbean Basin Trade Initiative

25406 Israeli Trade ActAcquisitions of supplies by most agencies are covered by

the Israeli Trade Act if the estimated value of the acquisitionis $50000 or more but does not exceed the WTO GPA thresh-old for supplies (see 25402(b)) Agencies other than theDepartment of Defense the Department of Energy theDepartment of Transportation the Bureau of Reclamation ofthe Department of the Interior the Federal Housing FinanceBoard and the Office of Thrift Supervision must evaluateoffers of Israeli end products without regard to the restrictionsof the Buy American Act The Israeli Trade Act does not pro-hibit the purchase of other foreign end products

25407 Agreement on Trade in Civil AircraftUnder the authority of Section 303 of the Trade Agree-

ments Act the US Trade Representative has waived the Buy

American Act for civil aircraft and related articles that meetthe substantial transformation test of the Trade AgreementsAct from countries that are parties to the Agreement on Tradein Civil Aircraft Those countries are Austria Belgium Bul-garia Canada Denmark Egypt Finland France GermanyGreece Ireland Italy Japan Luxembourg Macao the Neth-erlands Norway Portugal Romania Spain Sweden Swit-zerland and the United Kingdom

25408 Procedures(a) If the WTO GPA or an FTA applies (see 25401) the

contracting officer mustmdash(1) Comply with the requirements of 5203 Publicizing

and response time(2) Comply with the requirements of 5207 Preparation

and transmittal of synopses(3) Not include technical requirements in solicitations

solely to preclude the acquisition of eligible products(4) Specify in solicitations that offerors must submit

offers in the English language and in US dollars (see52214-34 Submission of Offers in the English Languageand 52214-35 Submission of Offers in US Currency orparagraph (c)(5) of 52215-1 Instruction to OfferorsmdashCom-petitive Acquisitions) and

(5) Provide unsuccessful offerors from WTO GPA orFTA countries notice in accordance with 14409-1 or 15503

(b) See Subpart 255 for evaluation procedures andexamples

SUBPART 255mdashEVALUATING FOREIGN OFFERSmdashSUPPLY CONTRACTS 25503

255-1

Subpart 255mdashEvaluating Foreign OffersmdashSupply Contracts

25501 GeneralThe contracting officermdash(a) Must apply the evaluation procedures of this subpart to

each line item of an offer unless either the offer or the solici-tation specifies evaluation on a group basis (see 25503)

(b) May rely on the offerorrsquos certification of end productorigin when evaluating a foreign offer

(c) Must identify and reject offers of end products that areprohibited in accordance with Subpart 257 and

(d) Must not use the Buy American Act evaluation factorsprescribed in this subpart to provide a preference for one for-eign offer over another foreign offer

25502 Application(a) Unless otherwise specified in agency regulations per-

form the following steps in the order presented(1) Eliminate all offers or offerors that are unacceptable

for reasons other than price eg nonresponsive debarred orsuspended or a prohibited source (see Subpart 257)

(2) Rank the remaining offers by price(3) If the solicitation specifies award on the basis of fac-

tors in addition to cost or price apply the evaluation factorsas specified in this section and use the evaluated cost or pricein determining the offer that represents the best value to theGovernment

(b) For acquisitions covered by the WTO GPA (seeSubpart 254)mdash

(1) Consider only offers of US-made or designatedcountry end products unless no offers of such end productswere received

(2) If the agency gives the same consideration given eli-gible offers to offers of US-made end products that are notdomestic end products award on the low offer Otherwiseevaluate in accordance with agency procedures and

(3) If there were no offers of US-made or designatedcountry end products make a nonavailability determination(see 25103(b)(2)) and award on the low offer (see 25403(c))

(c) For acquisitions not covered by the WTO GPA but sub-ject to the Buy American Act (an FTA or the Israeli Trade Actalso may apply) the following applies

(1) If the low offer is a domestic offer or an eligible offerunder an FTA or the Israeli Trade Act award on that offer

(2) If the low offer is a noneligible offer and there wereno domestic offers (see 25103(b)(3)) award on the low offer

(3) If the low offer is a noneligible offer and there is aneligible offer that is lower than the lowest domestic offeraward on the low offer The Buy American Act provides anevaluation preference only for domestic offers

(4) Otherwise apply the appropriate evaluation factorprovided in 25105 to the low offer

(i) If the evaluated price of the low offer remains lessthan the lowest domestic offer award on the low offer

(ii) If the price of the lowest domestic offer is lessthan the evaluated price of the low offer award on the lowestdomestic offer

(d) Ties (1) If application of an evaluation factor results ina tie between a domestic offer and a foreign offer award onthe domestic offer

(2) If no evaluation preference was applied (ie offersafforded nondiscriminatory treatment under the Buy Ameri-can Act) resolve ties between domestic and foreign offers bya witnessed drawing of lots by an impartial individual

(3) Resolve ties between foreign offers from small busi-ness concerns (under the Buy American Act a small businessoffering a manufactured article that does not meet the defini-tion of ldquodomestic end productrdquo is a foreign offer) or foreignoffers from a small business concern and a large business con-cern in accordance with 14408-6(a)

25503 Group offers(a) If the solicitation or an offer specifies that award can be

made only on a group of line items or on all line items con-tained in the solicitation or offer reject the offermdash

(1) If any part of the award would consist of prohibitedend products (see Subpart 257) or

(2) If the acquisition is covered by the WTO GPA andany part of the offer consists of items restricted in accordancewith 22403(c)

(b) If an offer restricts award to a group of line items or toall line items contained in the offer determine for each lineitem whether to apply an evaluation factor (see 25504-4Example 1)

(1) First evaluate offers that do not specify an awardrestriction on a line item basis in accordance with 25502determining a tentative award pattern by selecting for eachline item the offer with the lowest evaluated price

(2) Evaluate an offer that specifies an award restrictionagainst the offered prices of the tentative award pattern apply-ing the appropriate evaluation factor on a line item basis

(3) Compute the total evaluated price for the tentativeaward pattern and the offer that specified an award restriction

(4) Unless the total evaluated price of the offer thatspecified an award restriction is less than the total evaluatedprice of the tentative award pattern award based on the ten-tative award pattern

(c) If the solicitation specifies that award will be made onlyon a group of line items or all line items contained in the solic-itation determine the category of end products on the basis ofeach line item but determine whether to apply an evaluationfactor on the basis of the group of items (see 25504-4 Exam-ple 2)

(1) If the proposed price of domestic end productsexceeds 50 percent of the total proposed price of the group

FAC 2005ndash09 APRIL 19 2006

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 4: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

(BLANK PAGE)

FAC 2005-43 SUMMARY OF ITEMS

Federal Acquisition Circular (FAC) 2005-43 amends the Federal Acquisition Regulation (FAR) as specified below Item ImdashGovernment Property (FAR Case 2008-011)

This final rule amends the FAR to revise FAR part 45 and its associated clauses Changes are being made to FAR parts 2 4 15 32 42 45 and 52 These changes are to clarify and correct the previous FAR rule for part 45 Government Property published under Federal Acquisition Circular 2005-17 FAR case 2004-025 May 15 2007 (72 FR 27364) Minor changes are made to the proposed rule published August 6 2009 (74 FR 39262) The rule specifically impacts contracting officers property administrators and contractors responsible for the management of Government property The rule does not affect the method of managing Government property The rule merely clarifies and corrects the previous FAR rule Replacement pages 21-11 thru 21-14 47-1 and 47-2 154-7 and 154-8 312-15 and 312-16 325-7 and 325-8 3210-3 and 3210-4 423-1 and 423-2 Part 45 TOC pp 45-1 and 45-2 451-1 and 451-2 452-1 and 452-2 454-1 and 454-2 455-1 and 455-2 456-1 thru 456-4 522-209 thru 522-212 522-229 and 522-230 522-267 thru 522-274 and 522-3621 and 522-3622 Item IImdashRegistry of Disaster Response Contractors (FAR Case 2008-035) This final rule adopts without change the interim rule implementing Pub L 109-295 the Department of Homeland Security Appropriations Act 2007 section 697 which requires the establishment and maintenance of a registry of disaster response contractors The Disaster Response Registry is located at wwwccrgov The Federal Emergency Management Agency (within the Department of Homeland Security) has a link to the registry for vendors on its website at httpwwwfemagovbusinesscontractorshtm The Registry covers domestic disaster and emergency relief activities Replacement pages None

i

Item IIImdashRecovery Act Subcontract Reporting Procedures (FAR Case 2010-008) (Interim) This interim rule amends the FAR to revise the clause at FAR 52204-11 American Recovery and Reinvestment ActmdashReporting Requirements The revised clause will require first-tier subcontractors with Recovery Act funded awards of $25000 or more to report jobs information to the prime contractor for reporting into FederalReportinggov It also will require the prime contractor to submit its first report on or before the 10th day after the end of the calendar quarter in which the prime contractor received the award and quarterly thereafter The revised clause will be used for all new solicitations and awards issued on or after the effective date of this interim rule This clause is not required for any existing contracts or task and delivery orders issued under a contract that contain the original clause FAR 52204-11 (March 2009) Therefore this interim rule does not require renegotiation of existing Recovery Act contracts that include the clause dated March 2009 Replacement pages 415-1 and 415-2 522-121 and 522-122 (522-123 and 522-124 removed) and 522-39 and 522-40 Item IVmdashClarification of Criteria for Sole Source Awards to Service-disabled Veteran-owned Small Business Concerns (FAR Case 2008-023) This final rule amends FAR 191406(a) to clarify the criteria that need to be met in order to conduct a sole source service-disabled veteran-owned small business (SDVOSB) concern acquisition The FAR language is amended to be consistent with the Veterans Benefit Act of 2003 (15 USC 657f) and the Small Business Administrationrsquos regulation (13 CFR 12520) that implements the Act This final rule also amends FAR 191306(a) to clarify the criteria that need to be met in order to conduct a sole source for Historically Underutilized Business Zone (HUBZone) small business concern acquisitions These amendments to the FAR alleviate confusion for contracting officers on the appropriate use of the criteria needed to conduct sole source HUBZONE small business and SDVOSB concern acquisitions Replacement pages 1913-1 and 1913-2 and 1914-1 and 1914-2

ii

Item VmdashTrade Agreements Thresholds (FAR Case 2009-040) (Interim) This interim rule adjusts the thresholds for application of the World Trade Organization Government Procurement Agreement and the free trade agreements as determined by the United States Trade Representative according to a pre-determined formula under the agreements Replacement pages 2215-1 and 2215-2 252-1 and 252-2 254-3 and 254-4 255-1 and 255-2 256-1 and 256-2 2511-1 and 2511-2 522-39 and 522-40 522-421 and 522-422 and 522-111 and 522-112

iii

(BLANK PAGE)

FAC 2005-43 FILING INSTRUCTIONS

NOTE The FAR is segmented by subparts The FAR page numbers reflect FAR subparts For example ldquo415-1rdquo is page one of subpart 415

Remove Pages Insert Pages

415-1 and 415-2 415-1 and 415-2 2215-1 and 2215-2 2215-1 and 2215-2 252-1 and 252-2 252-1 and 252-2 254-3 and 254-4 254-3 and 254-4 255-1 and 255-2 255-1 and 255-2 256-1 and 256-2 256-1 and 256-2 2511-1 and 2511-2 2511-1 and 2511-2 522-121 thru 522-124 522-121 and 522-122 522-39 and 522-40 522-39 and 522-40 522-421 and 522-422 522-421 and 522-422 522-111 and 522-112 522-111 and 522-112

(BLANK PAGE)

SUBPART 415mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS 41502

415-1

Subpart 415mdashAmerican Recovery and Reinvestment ActmdashReporting Requirements

41500 Scope of subpartThis subpart implements section 1512(c) of Division A of

the American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) which requires as a condition ofreceipt of funds quarterly reporting on the use of funds Thesubpart also implements the data elements of the FederalFunding Accountability and Transparency Act of 2006 asamended (Pub L 109-282) Contractors that receive awards(or modifications to existing awards) funded in whole or inpart by the Recovery Act must report information includingbut not limited tomdash

(a) The dollar amount of contractor invoices(b) The supplies delivered and services performed(c) An assessment of the completion status of the work(d) An estimate of the number of jobs created and the num-

ber of jobs retained as a result of the Recovery Act funds(e) Names and total compensation of each of the five most

highly compensated officers for the calendar year in which thecontract is awarded and

(f) Specific information on first-tier subcontractors

41501 Procedures(a) In any contract action funded in whole or in part by the

Recovery Act the contracting officer shall indicate that thecontract action is being made under the Recovery Act andindicate which products or services are funded under theRecovery Act This requirement applies whenever RecoveryAct funds are used regardless of the contract instrument

(b) To maximize transparency of Recovery Act funds thatmust be reported by the contractor the contracting officer

shall structure contract awards to allow for separately trackingRecovery Act funds For example the contracting officer mayconsider awarding dedicated separate contracts when usingRecovery Act funds or establishing contract line item number(CLIN) structures to mitigate commingling of Recovery fundswith other funds

(c) Contracting officers shall ensure that the contractorcomplies with the reporting requirements of 52204-11American Recovery and Reinvestment ActmdashReportingRequirements If the contractor fails to comply with thereporting requirements the contracting officer shall exerciseappropriate contractual remedies

(d) The contracting officer shall make the contractorrsquos fail-ure to comply with the reporting requirements a part of thecontractorrsquos performance information under Subpart 4215

41502 Contract clauseInsert the clause at 52204-11 American Recovery and

Reinvestment ActmdashReporting Requirements in all solicita-tions and contracts funded in whole or in part with RecoveryAct funds except classified solicitations and contracts Thisincludes but is not limited to Governmentwide AcquisitionContracts (GWACs) multi-agency contracts (MACs) Fed-eral Supply Schedule (FSS) contracts or agency indefinite-deliveryindefinite-quantity (IDIQ) contracts that will befunded with Recovery Act funds Contracting officers shallinclude this clause in any existing contract or order that willbe funded with Recovery Act funds Contracting officers maynot use Recovery Act funds on existing contracts and ordersif the clause at 52204-11 is not incorporated This clause isnot required for any existing contracts or task and deliveryorders issued under a contract that contains the originalclause FAR 52204-11 (March 2009)

FAC 2005-43 JULY 2 2010

415-2

This page intentionally left blank

SUBPART 2215mdashPROHIBITION OF ACQUISITION OF PRODUCTS PRODUCED BY FORCED OR INDENTURED CHILD LABOR 221503

2215-1

Subpart 2215mdashProhibition of Acquisition of Products Produced by Forced or Indentured

Child Labor

221500 ScopeThis subpart applies to acquisitions of supplies that exceed

the micro-purchase threshold

221501 DefinitionsAs used in this subpartmdashldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

ldquoList of Products Requiring Contractor Certification as toForced or Indentured Child Laborrdquo means the list publishedby the Department of Labor in accordance with EO 13126 ofJune 12 1999 Prohibition of Acquisition of Products Pro-duced by Forced or Indentured Child Labor The list identifiesproducts by their country of origin that the Departments ofLabor Treasury and State have a reasonable basis to believemight have been mined produced or manufactured by forcedor indentured child labor

221502 PolicyAgencies must take appropriate action to enforce the laws

prohibiting the manufacture or importation of products thathave been mined produced or manufactured wholly or in partby forced or indentured child labor (19 USC 130729 USC 201 et seq and 41 USC 35 et seq) Agenciesshould make every effort to avoid acquiring such products

221503 Procedures for acquiring end products on the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor(a) When issuing a solicitation for supplies expected to

exceed the micro-purchase threshold the contracting officermust check the List of Products Requiring Contractor Certifi-cation as to Forced or Indentured Child Labor (the List)(wwwdolgovilab) (see 221505(a)) Appearance of a prod-uct on the List is not a bar to purchase of any such productmined produced or manufactured in the identified countrybut rather is an alert that there is a reasonable basis to believethat such product may have been mined produced or manu-factured by forced or indentured child labor

(b) The requirements of this subpart that result from theappearance of any end product on the List do not apply to asolicitation or contract if the identified country of origin on theList ismdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more (Subpart 254)

(2) Israel and the anticipated value of the acquisition is$50000 or more (see 25406)

(3) Mexico and the anticipated value of the acquisitionis $70079 or more (see Subpart 254) or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more (see 25402(b))

(c) Except as provided in paragraph (b) of this sectionbefore the contracting officer may make an award for an endproduct (regardless of country of origin) of a type identifiedby country of origin on the List the offeror must certify thatmdash

(1) It will not supply any end product on the List thatwas mined produced or manufactured in a country identifiedon the List for that product as specified in the solicitation bythe contracting officer in the Certification Regarding Knowl-edge of Child Labor for Listed End Products or

(2)(i) It has made a good faith effort to determinewhether forced or indentured child labor was used to mineproduce or manufacture any end product to be furnishedunder the contract that is on the List and was mined producedor manufactured in a country identified on the List for thatproduct and

(ii) On the basis of those efforts the offeror isunaware of any such use of child labor

(d) Absent any actual knowledge that the certification isfalse the contracting officer must rely on the offerorsrsquo certi-fications in making award decisions

(e) Whenever a contracting officer has reason to believethat forced or indentured child labor was used to mine pro-duce or manufacture an end product furnished pursuant to acontract awarded subject to the certification required inparagraph (c) of this section the contracting officer must referthe matter for investigation by the agencyrsquos Inspector Generalthe Attorney General or the Secretary of the Treasury which-ever is determined appropriate in accordance with agency pro-cedures except to the extent that the end product is from thecountry listed in paragraph (b) of this section under a contractexceeding the applicable threshold

(f) Proper certification will not prevent the head of anagency from imposing remedies in accordance withsection 221504(a)(4) if it is later discovered that the contrac-tor has furnished an end product or component that has in factbeen mined produced or manufactured wholly or in partusing forced or indentured child labor

FAC 2005ndash43 JULY 2 2010

221504 FEDERAL ACQUISITION REGULATION

2215-2

221504 Violations and remedies(a) Violations The Government may impose remedies set

forth in paragraph (b) of this section for the following viola-tions (note that the violations in paragraphs (a)(3) and (a)(4)of this section go beyond violations of the requirements relat-ing to certification of end products) (see 221503)

(1) The contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor

(2) The contractor has failed to cooperate as required inaccordance with the clause at 52222-19 Child Labor Coop-eration with Authorities and Remedies with an investigationof the use of forced or indentured child labor by an InspectorGeneral the Attorney General or the Secretary of theTreasury

(3) The contractor uses forced or indentured child laborin its mining production or manufacturing processes

(4) The contractor has furnished an end product or com-ponent mined produced or manufactured wholly or in partby forced or indentured child labor Remedies inparagraphs (b)(2) and (b)(3) of this section are inappropriateunless the contractor knew of the violation

(b) Remedies (1) The contracting officer may terminatethe contract

(2) The suspending official may suspend the contractorin accordance with the procedures in Subpart 94

(3) The debarring official may debar the contractor fora period not to exceed 3 years in accordance with the proce-dures in Subpart 94

221505 Solicitation provision and contract clause(a) Except as provided in paragraph (b) of 221503 insert

the provision at 52222-18 Certification Regarding Knowl-edge of Child Labor for Listed End Products in all solicita-tions that are expected to exceed the micro-purchase thresholdand are for the acquisition of end products (regardless of coun-try of origin) of a type identified by country of origin on theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor except solicitations forcommercial items that include the provision at 52212-3 Off-eror Representations and CertificationsmdashCommercial ItemsThe contracting officer must identify in paragraph (b) of theprovision at 52222-18 Certification Regarding Knowledgeof Child Labor for Listed End Products or paragraph (i)(1) ofthe provision at 52212-3 any applicable end products andcountries of origin from the List For solicitations estimatedto equal or exceed $25000 the contracting officer mustexclude from the List in the solicitation end products from anycountries identified at 221503(b) in accordance with thespecified thresholds

(b) Insert the clause at 52222-19 Child LabormdashCoopera-tion with Authorities and Remedies in all solicitations andcontracts for the acquisition of supplies that are expected toexceed the micro-purchase thresholds

SUBPART 252mdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25205

252-1

Subpart 252mdashBuy American ActmdashConstruction Materials

25200 Scope of Subpart(a) This subpart implementsmdash

(1) The Buy American Act (41 USC 10a - 10d)(2) Executive Order 10582 December 17 1954 and(3) Waiver of the component test of the Buy American

Act for acquisitions of commercially available off-the-shelf(COTS) items in accordance with 41 USC 431

(b) It applies to contracts for the construction alteration orrepair of any public building or public work in the UnitedStates

(c) When using funds appropriated or otherwise providedby the American Recovery and Reinvestment Act of 2009(Pub L 111-5) (Recovery Act) for construction seeSubpart 256

25201 PolicyExcept as provided in 25202 use only domestic construc-

tion materials in construction contracts performed in theUnited States

25202 Exceptions(a) When one of the following exceptions applies the con-

tracting officer may acquire foreign construction materialswithout regard to the restrictions of the Buy American Act

(1) Impracticable or inconsistent with public interestThe head of the agency may determine that application of therestrictions of the Buy American Act to a particular construc-tion material would be impracticable or would be inconsistentwith the public interest The public interest exception applieswhen an agency has an agreement with a foreign governmentthat provides a blanket exception to the Buy American Act

(2) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(3) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25204

(b) Determination and findings When a determination ismade for any of the reasons stated in this section that certainforeign construction materials may be used the contractingofficer must list the excepted materials in the contract Theagency must make the findings justifying the exception avail-able for public inspection

(c) Acquisitions under trade agreements For constructioncontracts with an estimated acquisition value of $7804000 ormore see Subpart 254

25203 Preaward determinations(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of the Buy American Act for specifically identified con-struction materials The time for submitting the request isspecified in the solicitation in paragraph (b) of either52225-10 or 52225-12 whichever applies The informationand supporting data that must be included in the request arealso specified in the solicitation in paragraphs (c) and (d) ofeither 52225-9 or 52225-11 whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily availableinformation

25204 Evaluating offers of foreign construction material(a) Offerors proposing to use foreign construction material

other than that listed by the Government in the applicableclause at 52225-9 paragraph (b)(2) or 52225-11paragraph (b)(3) or covered by the WTO GPA or a Free TradeAgreement (paragraph (b)(2) of 52225-11) must provide theinformation required by paragraphs (c) and (d) of the respec-tive clauses

(b) Unless the head of the agency specifies a higher per-centage the contracting officer must add to the offered price6 percent of the cost of any foreign construction material pro-posed for exception from the requirements of the Buy Amer-ican Act based on the unreasonable cost of domesticconstruction materials In the case of a tie the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(2) of52225-9 or paragraph (b)(3) of 52225-11) the contractingofficer must add the excepted materials to the list in the con-tract clause

25205 Postaward determinations(a) If a contractor requests a determination regarding the

inapplicability of the Buy American Act after contract awardthe contractor must explain why it could not request the deter-mination before contract award or why the need for such

FAC 2005ndash43 JULY 2 2010

25206 FEDERAL ACQUISITION REGULATION

252-2

determination otherwise was not reasonably foreseeable Ifthe contracting officer concludes that the contractor shouldhave made the request before contract award the contractingofficer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability of theBuy American Act made after contract award on informationrequired by paragraphs (c) and (d) of the applicable clause at52225-9 or 52225-11 andor other readily availableinformation

(c) If a determination under 25202(a) is made after con-tract award that an exception to the Buy American Actapplies the contracting officer must negotiate adequate con-sideration and modify the contract to allow use of the foreignconstruction material When the basis for the exception is theunreasonable price of a domestic construction material ade-quate consideration is at least the differential established in25202(a) or in accordance with agency procedures

25206 NoncomplianceThe contracting officer mustmdash(a) Review allegations of Buy American Act violations(b) Unless fraud is suspected notify the contractor of the

apparent unauthorized use of foreign construction materialand request a reply to include proposed corrective action and

(c) If the review reveals that a contractor or subcontractorhas used foreign construction material without authorizationtake appropriate action including one or more of thefollowing

(1) Process a determination concerning the inapplica-bility of the Buy American Act in accordance with 25205

(2) Consider requiring the removal and replacement ofthe unauthorized foreign construction material

(3) If removal and replacement of foreign constructionmaterial incorporated in a building or work would be imprac-ticable cause undue delay or otherwise be detrimental to theinterests of the Government the contracting officer maydetermine in writing that the foreign construction materialneed not be removed and replaced A determination to retainforeign construction material does not constitute a determina-tion that an exception to the Buy American Act applies andthis should be stated in the determination Further a determi-nation to retain foreign construction material does not affectthe Governmentrsquos right to suspend or debar a contractor sub-contractor or supplier for violation of the Buy American Actor to exercise other contractual rights and remedies such asreducing the contract price or terminating the contract fordefault

(4) If the noncompliance is sufficiently serious con-sider exercising appropriate contractual remedies such as ter-minating the contract for default Also consider preparing andforwarding a report to the agency suspending or debarringofficial in accordance with Subpart 94 If the noncomplianceappears to be fraudulent refer the matter to other appropriateagency officials such as the officer responsible for criminalinvestigation

SUBPART 254mdashTRADE AGREEMENTS 25404

254-3

25402 General(a)(1) The Trade Agreements Act (19 USC 2501 et seq)

provides the authority for the President to waive the BuyAmerican Act and other discriminatory provisions for eligibleproducts from countries that have signed an internationaltrade agreement with the United States or that meet certainother criteria such as being a least developed country ThePresident has delegated this waiver authority to the US TradeRepresentative In acquisitions covered by the WTO GPAFree Trade Agreements or the Israeli Trade Act the USTRhas waived the Buy American Act and other discriminatoryprovisions for eligible products Offers of eligible productsreceive equal consideration with domestic offers

(2) The contracting officer shall determine the origin ofservices by the country in which the firm providing the ser-vices is established See Subpart 255 for evaluation proce-dures for supply contracts covered by trade agreements

(b) The value of the acquisition is a determining factor inthe applicability of trade agreements Most of these dollarthresholds are subject to revision by the US Trade Represen-tative approximately every 2 years The various thresholds aresummarized as follows

25403 World Trade Organization Government Procurement Agreement and Free Trade Agreements(a) Eligible products from WTO GPA and FTA countries

are entitled to the nondiscriminatory treatment specified in25402(a)(1) The WTO GPA and FTAs specify procurementprocedures designed to ensure fairness (see 25408)

(b) Thresholds (1) To determine whether the acquisitionof products by lease rental or lease-purchase contract(including lease-to-ownership or lease-with-option-to pur-chase) is covered by the WTO GPA or an FTA calculate theestimated acquisition value as follows

(i) If a fixed-term contract of 12 months or less iscontemplated use the total estimated value of the acquisition

(ii) If a fixed-term contract of more than 12 monthsis contemplated use the total estimated value of the acquisi-tion plus the estimated residual value of the leased equipmentat the conclusion of the contemplated term of the contract

(iii) If an indefinite-term contract is contemplateduse the estimated monthly payment multiplied by the totalnumber of months that ordering would be possible under theproposed contract ie the initial ordering period plus anyoptional ordering periods

(iv) If there is any doubt as to the contemplated termof the contract use the estimated monthly payment multipliedby 48

(2) The estimated value includes the value of alloptions

(3) If in any 12-month period recurring or multipleawards for the same type of product or products are antici-pated use the total estimated value of these projected awardsto determine whether the WTO GPA or an FTA applies Donot divide any acquisition with the intent of reducing the esti-mated value of the acquisition below the dollar threshold ofthe WTO GPA or an FTA

(c) Purchase restriction (1) Under the Trade AgreementsAct (19 USC 2512) in acquisitions covered by the WTOGPA acquire only US-made or designated country end prod-ucts or US or designated country services unless offers forsuch end products or services are either not received or areinsufficient to fulfill the requirements This purchase restric-tion does not apply below the WTO GPA threshold for sup-plies and services even if the acquisition is covered by anFTA

(2) This restriction does not apply to purchases of sup-plies by the Department of Defense from a country with whichit has entered into a reciprocal agreement as provided indepartmental regulations

25404 Least developed countriesFor acquisitions covered by the WTO GPA least devel-

oped country end products construction material and ser-vices must be treated as eligible products

Trade Agreement

Supply Contract

(equal to or exceeding)

Service Contract

(equal to or exceeding)

Construction Contract

(equal to or exceeding)

WTO GPA $203000 $203000 $7804000FTAs

Australia FTA 70079 70079 7804000Bahrain FTA 203000 203000 9110318CAFTA-DR (Costa Rica Dominican Republic El Salvador Guatemala Honduras and Nicaragua)

70079 70079 7804000

Chile FTA 70079 70079 7804000Morocco FTA 203000 203000 7804000NAFTAmdashCanada 25000 70079 9110318mdashMexico 70079 70079 9110318Oman FTA 203000 203000 9110318Peru FTA 203000 203000 7804000Singapore FTA 70079 70079 7804000

Israeli Trade Act 50000 mdash mdash

FAC 2005ndash43 JULY 2 2010

25405 FEDERAL ACQUISITION REGULATION

254-4

25405 Caribbean Basin Trade InitiativeUnder the Caribbean Basin Trade Initiative the United

States Trade Representative has determined that for acquisi-tions covered by the WTO GPA Caribbean Basin country endproducts construction material and services must be treatedas eligible products In accordance with Section 201 (a)(3) ofthe Dominican Republic-Central America-United States FreeTrade Implementation Act (Pub L 109-53) when theCAFTA-DR agreement enters into force with respect to acountry that country is no longer designated as a beneficiarycountry for purposes of the Caribbean Basin EconomicRecovery Act and is therefore no longer included in the def-inition of ldquoCaribbean Basin countryrdquo for purposes of the Car-ibbean Basin Trade Initiative

25406 Israeli Trade ActAcquisitions of supplies by most agencies are covered by

the Israeli Trade Act if the estimated value of the acquisitionis $50000 or more but does not exceed the WTO GPA thresh-old for supplies (see 25402(b)) Agencies other than theDepartment of Defense the Department of Energy theDepartment of Transportation the Bureau of Reclamation ofthe Department of the Interior the Federal Housing FinanceBoard and the Office of Thrift Supervision must evaluateoffers of Israeli end products without regard to the restrictionsof the Buy American Act The Israeli Trade Act does not pro-hibit the purchase of other foreign end products

25407 Agreement on Trade in Civil AircraftUnder the authority of Section 303 of the Trade Agree-

ments Act the US Trade Representative has waived the Buy

American Act for civil aircraft and related articles that meetthe substantial transformation test of the Trade AgreementsAct from countries that are parties to the Agreement on Tradein Civil Aircraft Those countries are Austria Belgium Bul-garia Canada Denmark Egypt Finland France GermanyGreece Ireland Italy Japan Luxembourg Macao the Neth-erlands Norway Portugal Romania Spain Sweden Swit-zerland and the United Kingdom

25408 Procedures(a) If the WTO GPA or an FTA applies (see 25401) the

contracting officer mustmdash(1) Comply with the requirements of 5203 Publicizing

and response time(2) Comply with the requirements of 5207 Preparation

and transmittal of synopses(3) Not include technical requirements in solicitations

solely to preclude the acquisition of eligible products(4) Specify in solicitations that offerors must submit

offers in the English language and in US dollars (see52214-34 Submission of Offers in the English Languageand 52214-35 Submission of Offers in US Currency orparagraph (c)(5) of 52215-1 Instruction to OfferorsmdashCom-petitive Acquisitions) and

(5) Provide unsuccessful offerors from WTO GPA orFTA countries notice in accordance with 14409-1 or 15503

(b) See Subpart 255 for evaluation procedures andexamples

SUBPART 255mdashEVALUATING FOREIGN OFFERSmdashSUPPLY CONTRACTS 25503

255-1

Subpart 255mdashEvaluating Foreign OffersmdashSupply Contracts

25501 GeneralThe contracting officermdash(a) Must apply the evaluation procedures of this subpart to

each line item of an offer unless either the offer or the solici-tation specifies evaluation on a group basis (see 25503)

(b) May rely on the offerorrsquos certification of end productorigin when evaluating a foreign offer

(c) Must identify and reject offers of end products that areprohibited in accordance with Subpart 257 and

(d) Must not use the Buy American Act evaluation factorsprescribed in this subpart to provide a preference for one for-eign offer over another foreign offer

25502 Application(a) Unless otherwise specified in agency regulations per-

form the following steps in the order presented(1) Eliminate all offers or offerors that are unacceptable

for reasons other than price eg nonresponsive debarred orsuspended or a prohibited source (see Subpart 257)

(2) Rank the remaining offers by price(3) If the solicitation specifies award on the basis of fac-

tors in addition to cost or price apply the evaluation factorsas specified in this section and use the evaluated cost or pricein determining the offer that represents the best value to theGovernment

(b) For acquisitions covered by the WTO GPA (seeSubpart 254)mdash

(1) Consider only offers of US-made or designatedcountry end products unless no offers of such end productswere received

(2) If the agency gives the same consideration given eli-gible offers to offers of US-made end products that are notdomestic end products award on the low offer Otherwiseevaluate in accordance with agency procedures and

(3) If there were no offers of US-made or designatedcountry end products make a nonavailability determination(see 25103(b)(2)) and award on the low offer (see 25403(c))

(c) For acquisitions not covered by the WTO GPA but sub-ject to the Buy American Act (an FTA or the Israeli Trade Actalso may apply) the following applies

(1) If the low offer is a domestic offer or an eligible offerunder an FTA or the Israeli Trade Act award on that offer

(2) If the low offer is a noneligible offer and there wereno domestic offers (see 25103(b)(3)) award on the low offer

(3) If the low offer is a noneligible offer and there is aneligible offer that is lower than the lowest domestic offeraward on the low offer The Buy American Act provides anevaluation preference only for domestic offers

(4) Otherwise apply the appropriate evaluation factorprovided in 25105 to the low offer

(i) If the evaluated price of the low offer remains lessthan the lowest domestic offer award on the low offer

(ii) If the price of the lowest domestic offer is lessthan the evaluated price of the low offer award on the lowestdomestic offer

(d) Ties (1) If application of an evaluation factor results ina tie between a domestic offer and a foreign offer award onthe domestic offer

(2) If no evaluation preference was applied (ie offersafforded nondiscriminatory treatment under the Buy Ameri-can Act) resolve ties between domestic and foreign offers bya witnessed drawing of lots by an impartial individual

(3) Resolve ties between foreign offers from small busi-ness concerns (under the Buy American Act a small businessoffering a manufactured article that does not meet the defini-tion of ldquodomestic end productrdquo is a foreign offer) or foreignoffers from a small business concern and a large business con-cern in accordance with 14408-6(a)

25503 Group offers(a) If the solicitation or an offer specifies that award can be

made only on a group of line items or on all line items con-tained in the solicitation or offer reject the offermdash

(1) If any part of the award would consist of prohibitedend products (see Subpart 257) or

(2) If the acquisition is covered by the WTO GPA andany part of the offer consists of items restricted in accordancewith 22403(c)

(b) If an offer restricts award to a group of line items or toall line items contained in the offer determine for each lineitem whether to apply an evaluation factor (see 25504-4Example 1)

(1) First evaluate offers that do not specify an awardrestriction on a line item basis in accordance with 25502determining a tentative award pattern by selecting for eachline item the offer with the lowest evaluated price

(2) Evaluate an offer that specifies an award restrictionagainst the offered prices of the tentative award pattern apply-ing the appropriate evaluation factor on a line item basis

(3) Compute the total evaluated price for the tentativeaward pattern and the offer that specified an award restriction

(4) Unless the total evaluated price of the offer thatspecified an award restriction is less than the total evaluatedprice of the tentative award pattern award based on the ten-tative award pattern

(c) If the solicitation specifies that award will be made onlyon a group of line items or all line items contained in the solic-itation determine the category of end products on the basis ofeach line item but determine whether to apply an evaluationfactor on the basis of the group of items (see 25504-4 Exam-ple 2)

(1) If the proposed price of domestic end productsexceeds 50 percent of the total proposed price of the group

FAC 2005ndash09 APRIL 19 2006

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 5: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

FAC 2005-43 SUMMARY OF ITEMS

Federal Acquisition Circular (FAC) 2005-43 amends the Federal Acquisition Regulation (FAR) as specified below Item ImdashGovernment Property (FAR Case 2008-011)

This final rule amends the FAR to revise FAR part 45 and its associated clauses Changes are being made to FAR parts 2 4 15 32 42 45 and 52 These changes are to clarify and correct the previous FAR rule for part 45 Government Property published under Federal Acquisition Circular 2005-17 FAR case 2004-025 May 15 2007 (72 FR 27364) Minor changes are made to the proposed rule published August 6 2009 (74 FR 39262) The rule specifically impacts contracting officers property administrators and contractors responsible for the management of Government property The rule does not affect the method of managing Government property The rule merely clarifies and corrects the previous FAR rule Replacement pages 21-11 thru 21-14 47-1 and 47-2 154-7 and 154-8 312-15 and 312-16 325-7 and 325-8 3210-3 and 3210-4 423-1 and 423-2 Part 45 TOC pp 45-1 and 45-2 451-1 and 451-2 452-1 and 452-2 454-1 and 454-2 455-1 and 455-2 456-1 thru 456-4 522-209 thru 522-212 522-229 and 522-230 522-267 thru 522-274 and 522-3621 and 522-3622 Item IImdashRegistry of Disaster Response Contractors (FAR Case 2008-035) This final rule adopts without change the interim rule implementing Pub L 109-295 the Department of Homeland Security Appropriations Act 2007 section 697 which requires the establishment and maintenance of a registry of disaster response contractors The Disaster Response Registry is located at wwwccrgov The Federal Emergency Management Agency (within the Department of Homeland Security) has a link to the registry for vendors on its website at httpwwwfemagovbusinesscontractorshtm The Registry covers domestic disaster and emergency relief activities Replacement pages None

i

Item IIImdashRecovery Act Subcontract Reporting Procedures (FAR Case 2010-008) (Interim) This interim rule amends the FAR to revise the clause at FAR 52204-11 American Recovery and Reinvestment ActmdashReporting Requirements The revised clause will require first-tier subcontractors with Recovery Act funded awards of $25000 or more to report jobs information to the prime contractor for reporting into FederalReportinggov It also will require the prime contractor to submit its first report on or before the 10th day after the end of the calendar quarter in which the prime contractor received the award and quarterly thereafter The revised clause will be used for all new solicitations and awards issued on or after the effective date of this interim rule This clause is not required for any existing contracts or task and delivery orders issued under a contract that contain the original clause FAR 52204-11 (March 2009) Therefore this interim rule does not require renegotiation of existing Recovery Act contracts that include the clause dated March 2009 Replacement pages 415-1 and 415-2 522-121 and 522-122 (522-123 and 522-124 removed) and 522-39 and 522-40 Item IVmdashClarification of Criteria for Sole Source Awards to Service-disabled Veteran-owned Small Business Concerns (FAR Case 2008-023) This final rule amends FAR 191406(a) to clarify the criteria that need to be met in order to conduct a sole source service-disabled veteran-owned small business (SDVOSB) concern acquisition The FAR language is amended to be consistent with the Veterans Benefit Act of 2003 (15 USC 657f) and the Small Business Administrationrsquos regulation (13 CFR 12520) that implements the Act This final rule also amends FAR 191306(a) to clarify the criteria that need to be met in order to conduct a sole source for Historically Underutilized Business Zone (HUBZone) small business concern acquisitions These amendments to the FAR alleviate confusion for contracting officers on the appropriate use of the criteria needed to conduct sole source HUBZONE small business and SDVOSB concern acquisitions Replacement pages 1913-1 and 1913-2 and 1914-1 and 1914-2

ii

Item VmdashTrade Agreements Thresholds (FAR Case 2009-040) (Interim) This interim rule adjusts the thresholds for application of the World Trade Organization Government Procurement Agreement and the free trade agreements as determined by the United States Trade Representative according to a pre-determined formula under the agreements Replacement pages 2215-1 and 2215-2 252-1 and 252-2 254-3 and 254-4 255-1 and 255-2 256-1 and 256-2 2511-1 and 2511-2 522-39 and 522-40 522-421 and 522-422 and 522-111 and 522-112

iii

(BLANK PAGE)

FAC 2005-43 FILING INSTRUCTIONS

NOTE The FAR is segmented by subparts The FAR page numbers reflect FAR subparts For example ldquo415-1rdquo is page one of subpart 415

Remove Pages Insert Pages

415-1 and 415-2 415-1 and 415-2 2215-1 and 2215-2 2215-1 and 2215-2 252-1 and 252-2 252-1 and 252-2 254-3 and 254-4 254-3 and 254-4 255-1 and 255-2 255-1 and 255-2 256-1 and 256-2 256-1 and 256-2 2511-1 and 2511-2 2511-1 and 2511-2 522-121 thru 522-124 522-121 and 522-122 522-39 and 522-40 522-39 and 522-40 522-421 and 522-422 522-421 and 522-422 522-111 and 522-112 522-111 and 522-112

(BLANK PAGE)

SUBPART 415mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS 41502

415-1

Subpart 415mdashAmerican Recovery and Reinvestment ActmdashReporting Requirements

41500 Scope of subpartThis subpart implements section 1512(c) of Division A of

the American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) which requires as a condition ofreceipt of funds quarterly reporting on the use of funds Thesubpart also implements the data elements of the FederalFunding Accountability and Transparency Act of 2006 asamended (Pub L 109-282) Contractors that receive awards(or modifications to existing awards) funded in whole or inpart by the Recovery Act must report information includingbut not limited tomdash

(a) The dollar amount of contractor invoices(b) The supplies delivered and services performed(c) An assessment of the completion status of the work(d) An estimate of the number of jobs created and the num-

ber of jobs retained as a result of the Recovery Act funds(e) Names and total compensation of each of the five most

highly compensated officers for the calendar year in which thecontract is awarded and

(f) Specific information on first-tier subcontractors

41501 Procedures(a) In any contract action funded in whole or in part by the

Recovery Act the contracting officer shall indicate that thecontract action is being made under the Recovery Act andindicate which products or services are funded under theRecovery Act This requirement applies whenever RecoveryAct funds are used regardless of the contract instrument

(b) To maximize transparency of Recovery Act funds thatmust be reported by the contractor the contracting officer

shall structure contract awards to allow for separately trackingRecovery Act funds For example the contracting officer mayconsider awarding dedicated separate contracts when usingRecovery Act funds or establishing contract line item number(CLIN) structures to mitigate commingling of Recovery fundswith other funds

(c) Contracting officers shall ensure that the contractorcomplies with the reporting requirements of 52204-11American Recovery and Reinvestment ActmdashReportingRequirements If the contractor fails to comply with thereporting requirements the contracting officer shall exerciseappropriate contractual remedies

(d) The contracting officer shall make the contractorrsquos fail-ure to comply with the reporting requirements a part of thecontractorrsquos performance information under Subpart 4215

41502 Contract clauseInsert the clause at 52204-11 American Recovery and

Reinvestment ActmdashReporting Requirements in all solicita-tions and contracts funded in whole or in part with RecoveryAct funds except classified solicitations and contracts Thisincludes but is not limited to Governmentwide AcquisitionContracts (GWACs) multi-agency contracts (MACs) Fed-eral Supply Schedule (FSS) contracts or agency indefinite-deliveryindefinite-quantity (IDIQ) contracts that will befunded with Recovery Act funds Contracting officers shallinclude this clause in any existing contract or order that willbe funded with Recovery Act funds Contracting officers maynot use Recovery Act funds on existing contracts and ordersif the clause at 52204-11 is not incorporated This clause isnot required for any existing contracts or task and deliveryorders issued under a contract that contains the originalclause FAR 52204-11 (March 2009)

FAC 2005-43 JULY 2 2010

415-2

This page intentionally left blank

SUBPART 2215mdashPROHIBITION OF ACQUISITION OF PRODUCTS PRODUCED BY FORCED OR INDENTURED CHILD LABOR 221503

2215-1

Subpart 2215mdashProhibition of Acquisition of Products Produced by Forced or Indentured

Child Labor

221500 ScopeThis subpart applies to acquisitions of supplies that exceed

the micro-purchase threshold

221501 DefinitionsAs used in this subpartmdashldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

ldquoList of Products Requiring Contractor Certification as toForced or Indentured Child Laborrdquo means the list publishedby the Department of Labor in accordance with EO 13126 ofJune 12 1999 Prohibition of Acquisition of Products Pro-duced by Forced or Indentured Child Labor The list identifiesproducts by their country of origin that the Departments ofLabor Treasury and State have a reasonable basis to believemight have been mined produced or manufactured by forcedor indentured child labor

221502 PolicyAgencies must take appropriate action to enforce the laws

prohibiting the manufacture or importation of products thathave been mined produced or manufactured wholly or in partby forced or indentured child labor (19 USC 130729 USC 201 et seq and 41 USC 35 et seq) Agenciesshould make every effort to avoid acquiring such products

221503 Procedures for acquiring end products on the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor(a) When issuing a solicitation for supplies expected to

exceed the micro-purchase threshold the contracting officermust check the List of Products Requiring Contractor Certifi-cation as to Forced or Indentured Child Labor (the List)(wwwdolgovilab) (see 221505(a)) Appearance of a prod-uct on the List is not a bar to purchase of any such productmined produced or manufactured in the identified countrybut rather is an alert that there is a reasonable basis to believethat such product may have been mined produced or manu-factured by forced or indentured child labor

(b) The requirements of this subpart that result from theappearance of any end product on the List do not apply to asolicitation or contract if the identified country of origin on theList ismdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more (Subpart 254)

(2) Israel and the anticipated value of the acquisition is$50000 or more (see 25406)

(3) Mexico and the anticipated value of the acquisitionis $70079 or more (see Subpart 254) or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more (see 25402(b))

(c) Except as provided in paragraph (b) of this sectionbefore the contracting officer may make an award for an endproduct (regardless of country of origin) of a type identifiedby country of origin on the List the offeror must certify thatmdash

(1) It will not supply any end product on the List thatwas mined produced or manufactured in a country identifiedon the List for that product as specified in the solicitation bythe contracting officer in the Certification Regarding Knowl-edge of Child Labor for Listed End Products or

(2)(i) It has made a good faith effort to determinewhether forced or indentured child labor was used to mineproduce or manufacture any end product to be furnishedunder the contract that is on the List and was mined producedor manufactured in a country identified on the List for thatproduct and

(ii) On the basis of those efforts the offeror isunaware of any such use of child labor

(d) Absent any actual knowledge that the certification isfalse the contracting officer must rely on the offerorsrsquo certi-fications in making award decisions

(e) Whenever a contracting officer has reason to believethat forced or indentured child labor was used to mine pro-duce or manufacture an end product furnished pursuant to acontract awarded subject to the certification required inparagraph (c) of this section the contracting officer must referthe matter for investigation by the agencyrsquos Inspector Generalthe Attorney General or the Secretary of the Treasury which-ever is determined appropriate in accordance with agency pro-cedures except to the extent that the end product is from thecountry listed in paragraph (b) of this section under a contractexceeding the applicable threshold

(f) Proper certification will not prevent the head of anagency from imposing remedies in accordance withsection 221504(a)(4) if it is later discovered that the contrac-tor has furnished an end product or component that has in factbeen mined produced or manufactured wholly or in partusing forced or indentured child labor

FAC 2005ndash43 JULY 2 2010

221504 FEDERAL ACQUISITION REGULATION

2215-2

221504 Violations and remedies(a) Violations The Government may impose remedies set

forth in paragraph (b) of this section for the following viola-tions (note that the violations in paragraphs (a)(3) and (a)(4)of this section go beyond violations of the requirements relat-ing to certification of end products) (see 221503)

(1) The contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor

(2) The contractor has failed to cooperate as required inaccordance with the clause at 52222-19 Child Labor Coop-eration with Authorities and Remedies with an investigationof the use of forced or indentured child labor by an InspectorGeneral the Attorney General or the Secretary of theTreasury

(3) The contractor uses forced or indentured child laborin its mining production or manufacturing processes

(4) The contractor has furnished an end product or com-ponent mined produced or manufactured wholly or in partby forced or indentured child labor Remedies inparagraphs (b)(2) and (b)(3) of this section are inappropriateunless the contractor knew of the violation

(b) Remedies (1) The contracting officer may terminatethe contract

(2) The suspending official may suspend the contractorin accordance with the procedures in Subpart 94

(3) The debarring official may debar the contractor fora period not to exceed 3 years in accordance with the proce-dures in Subpart 94

221505 Solicitation provision and contract clause(a) Except as provided in paragraph (b) of 221503 insert

the provision at 52222-18 Certification Regarding Knowl-edge of Child Labor for Listed End Products in all solicita-tions that are expected to exceed the micro-purchase thresholdand are for the acquisition of end products (regardless of coun-try of origin) of a type identified by country of origin on theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor except solicitations forcommercial items that include the provision at 52212-3 Off-eror Representations and CertificationsmdashCommercial ItemsThe contracting officer must identify in paragraph (b) of theprovision at 52222-18 Certification Regarding Knowledgeof Child Labor for Listed End Products or paragraph (i)(1) ofthe provision at 52212-3 any applicable end products andcountries of origin from the List For solicitations estimatedto equal or exceed $25000 the contracting officer mustexclude from the List in the solicitation end products from anycountries identified at 221503(b) in accordance with thespecified thresholds

(b) Insert the clause at 52222-19 Child LabormdashCoopera-tion with Authorities and Remedies in all solicitations andcontracts for the acquisition of supplies that are expected toexceed the micro-purchase thresholds

SUBPART 252mdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25205

252-1

Subpart 252mdashBuy American ActmdashConstruction Materials

25200 Scope of Subpart(a) This subpart implementsmdash

(1) The Buy American Act (41 USC 10a - 10d)(2) Executive Order 10582 December 17 1954 and(3) Waiver of the component test of the Buy American

Act for acquisitions of commercially available off-the-shelf(COTS) items in accordance with 41 USC 431

(b) It applies to contracts for the construction alteration orrepair of any public building or public work in the UnitedStates

(c) When using funds appropriated or otherwise providedby the American Recovery and Reinvestment Act of 2009(Pub L 111-5) (Recovery Act) for construction seeSubpart 256

25201 PolicyExcept as provided in 25202 use only domestic construc-

tion materials in construction contracts performed in theUnited States

25202 Exceptions(a) When one of the following exceptions applies the con-

tracting officer may acquire foreign construction materialswithout regard to the restrictions of the Buy American Act

(1) Impracticable or inconsistent with public interestThe head of the agency may determine that application of therestrictions of the Buy American Act to a particular construc-tion material would be impracticable or would be inconsistentwith the public interest The public interest exception applieswhen an agency has an agreement with a foreign governmentthat provides a blanket exception to the Buy American Act

(2) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(3) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25204

(b) Determination and findings When a determination ismade for any of the reasons stated in this section that certainforeign construction materials may be used the contractingofficer must list the excepted materials in the contract Theagency must make the findings justifying the exception avail-able for public inspection

(c) Acquisitions under trade agreements For constructioncontracts with an estimated acquisition value of $7804000 ormore see Subpart 254

25203 Preaward determinations(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of the Buy American Act for specifically identified con-struction materials The time for submitting the request isspecified in the solicitation in paragraph (b) of either52225-10 or 52225-12 whichever applies The informationand supporting data that must be included in the request arealso specified in the solicitation in paragraphs (c) and (d) ofeither 52225-9 or 52225-11 whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily availableinformation

25204 Evaluating offers of foreign construction material(a) Offerors proposing to use foreign construction material

other than that listed by the Government in the applicableclause at 52225-9 paragraph (b)(2) or 52225-11paragraph (b)(3) or covered by the WTO GPA or a Free TradeAgreement (paragraph (b)(2) of 52225-11) must provide theinformation required by paragraphs (c) and (d) of the respec-tive clauses

(b) Unless the head of the agency specifies a higher per-centage the contracting officer must add to the offered price6 percent of the cost of any foreign construction material pro-posed for exception from the requirements of the Buy Amer-ican Act based on the unreasonable cost of domesticconstruction materials In the case of a tie the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(2) of52225-9 or paragraph (b)(3) of 52225-11) the contractingofficer must add the excepted materials to the list in the con-tract clause

25205 Postaward determinations(a) If a contractor requests a determination regarding the

inapplicability of the Buy American Act after contract awardthe contractor must explain why it could not request the deter-mination before contract award or why the need for such

FAC 2005ndash43 JULY 2 2010

25206 FEDERAL ACQUISITION REGULATION

252-2

determination otherwise was not reasonably foreseeable Ifthe contracting officer concludes that the contractor shouldhave made the request before contract award the contractingofficer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability of theBuy American Act made after contract award on informationrequired by paragraphs (c) and (d) of the applicable clause at52225-9 or 52225-11 andor other readily availableinformation

(c) If a determination under 25202(a) is made after con-tract award that an exception to the Buy American Actapplies the contracting officer must negotiate adequate con-sideration and modify the contract to allow use of the foreignconstruction material When the basis for the exception is theunreasonable price of a domestic construction material ade-quate consideration is at least the differential established in25202(a) or in accordance with agency procedures

25206 NoncomplianceThe contracting officer mustmdash(a) Review allegations of Buy American Act violations(b) Unless fraud is suspected notify the contractor of the

apparent unauthorized use of foreign construction materialand request a reply to include proposed corrective action and

(c) If the review reveals that a contractor or subcontractorhas used foreign construction material without authorizationtake appropriate action including one or more of thefollowing

(1) Process a determination concerning the inapplica-bility of the Buy American Act in accordance with 25205

(2) Consider requiring the removal and replacement ofthe unauthorized foreign construction material

(3) If removal and replacement of foreign constructionmaterial incorporated in a building or work would be imprac-ticable cause undue delay or otherwise be detrimental to theinterests of the Government the contracting officer maydetermine in writing that the foreign construction materialneed not be removed and replaced A determination to retainforeign construction material does not constitute a determina-tion that an exception to the Buy American Act applies andthis should be stated in the determination Further a determi-nation to retain foreign construction material does not affectthe Governmentrsquos right to suspend or debar a contractor sub-contractor or supplier for violation of the Buy American Actor to exercise other contractual rights and remedies such asreducing the contract price or terminating the contract fordefault

(4) If the noncompliance is sufficiently serious con-sider exercising appropriate contractual remedies such as ter-minating the contract for default Also consider preparing andforwarding a report to the agency suspending or debarringofficial in accordance with Subpart 94 If the noncomplianceappears to be fraudulent refer the matter to other appropriateagency officials such as the officer responsible for criminalinvestigation

SUBPART 254mdashTRADE AGREEMENTS 25404

254-3

25402 General(a)(1) The Trade Agreements Act (19 USC 2501 et seq)

provides the authority for the President to waive the BuyAmerican Act and other discriminatory provisions for eligibleproducts from countries that have signed an internationaltrade agreement with the United States or that meet certainother criteria such as being a least developed country ThePresident has delegated this waiver authority to the US TradeRepresentative In acquisitions covered by the WTO GPAFree Trade Agreements or the Israeli Trade Act the USTRhas waived the Buy American Act and other discriminatoryprovisions for eligible products Offers of eligible productsreceive equal consideration with domestic offers

(2) The contracting officer shall determine the origin ofservices by the country in which the firm providing the ser-vices is established See Subpart 255 for evaluation proce-dures for supply contracts covered by trade agreements

(b) The value of the acquisition is a determining factor inthe applicability of trade agreements Most of these dollarthresholds are subject to revision by the US Trade Represen-tative approximately every 2 years The various thresholds aresummarized as follows

25403 World Trade Organization Government Procurement Agreement and Free Trade Agreements(a) Eligible products from WTO GPA and FTA countries

are entitled to the nondiscriminatory treatment specified in25402(a)(1) The WTO GPA and FTAs specify procurementprocedures designed to ensure fairness (see 25408)

(b) Thresholds (1) To determine whether the acquisitionof products by lease rental or lease-purchase contract(including lease-to-ownership or lease-with-option-to pur-chase) is covered by the WTO GPA or an FTA calculate theestimated acquisition value as follows

(i) If a fixed-term contract of 12 months or less iscontemplated use the total estimated value of the acquisition

(ii) If a fixed-term contract of more than 12 monthsis contemplated use the total estimated value of the acquisi-tion plus the estimated residual value of the leased equipmentat the conclusion of the contemplated term of the contract

(iii) If an indefinite-term contract is contemplateduse the estimated monthly payment multiplied by the totalnumber of months that ordering would be possible under theproposed contract ie the initial ordering period plus anyoptional ordering periods

(iv) If there is any doubt as to the contemplated termof the contract use the estimated monthly payment multipliedby 48

(2) The estimated value includes the value of alloptions

(3) If in any 12-month period recurring or multipleawards for the same type of product or products are antici-pated use the total estimated value of these projected awardsto determine whether the WTO GPA or an FTA applies Donot divide any acquisition with the intent of reducing the esti-mated value of the acquisition below the dollar threshold ofthe WTO GPA or an FTA

(c) Purchase restriction (1) Under the Trade AgreementsAct (19 USC 2512) in acquisitions covered by the WTOGPA acquire only US-made or designated country end prod-ucts or US or designated country services unless offers forsuch end products or services are either not received or areinsufficient to fulfill the requirements This purchase restric-tion does not apply below the WTO GPA threshold for sup-plies and services even if the acquisition is covered by anFTA

(2) This restriction does not apply to purchases of sup-plies by the Department of Defense from a country with whichit has entered into a reciprocal agreement as provided indepartmental regulations

25404 Least developed countriesFor acquisitions covered by the WTO GPA least devel-

oped country end products construction material and ser-vices must be treated as eligible products

Trade Agreement

Supply Contract

(equal to or exceeding)

Service Contract

(equal to or exceeding)

Construction Contract

(equal to or exceeding)

WTO GPA $203000 $203000 $7804000FTAs

Australia FTA 70079 70079 7804000Bahrain FTA 203000 203000 9110318CAFTA-DR (Costa Rica Dominican Republic El Salvador Guatemala Honduras and Nicaragua)

70079 70079 7804000

Chile FTA 70079 70079 7804000Morocco FTA 203000 203000 7804000NAFTAmdashCanada 25000 70079 9110318mdashMexico 70079 70079 9110318Oman FTA 203000 203000 9110318Peru FTA 203000 203000 7804000Singapore FTA 70079 70079 7804000

Israeli Trade Act 50000 mdash mdash

FAC 2005ndash43 JULY 2 2010

25405 FEDERAL ACQUISITION REGULATION

254-4

25405 Caribbean Basin Trade InitiativeUnder the Caribbean Basin Trade Initiative the United

States Trade Representative has determined that for acquisi-tions covered by the WTO GPA Caribbean Basin country endproducts construction material and services must be treatedas eligible products In accordance with Section 201 (a)(3) ofthe Dominican Republic-Central America-United States FreeTrade Implementation Act (Pub L 109-53) when theCAFTA-DR agreement enters into force with respect to acountry that country is no longer designated as a beneficiarycountry for purposes of the Caribbean Basin EconomicRecovery Act and is therefore no longer included in the def-inition of ldquoCaribbean Basin countryrdquo for purposes of the Car-ibbean Basin Trade Initiative

25406 Israeli Trade ActAcquisitions of supplies by most agencies are covered by

the Israeli Trade Act if the estimated value of the acquisitionis $50000 or more but does not exceed the WTO GPA thresh-old for supplies (see 25402(b)) Agencies other than theDepartment of Defense the Department of Energy theDepartment of Transportation the Bureau of Reclamation ofthe Department of the Interior the Federal Housing FinanceBoard and the Office of Thrift Supervision must evaluateoffers of Israeli end products without regard to the restrictionsof the Buy American Act The Israeli Trade Act does not pro-hibit the purchase of other foreign end products

25407 Agreement on Trade in Civil AircraftUnder the authority of Section 303 of the Trade Agree-

ments Act the US Trade Representative has waived the Buy

American Act for civil aircraft and related articles that meetthe substantial transformation test of the Trade AgreementsAct from countries that are parties to the Agreement on Tradein Civil Aircraft Those countries are Austria Belgium Bul-garia Canada Denmark Egypt Finland France GermanyGreece Ireland Italy Japan Luxembourg Macao the Neth-erlands Norway Portugal Romania Spain Sweden Swit-zerland and the United Kingdom

25408 Procedures(a) If the WTO GPA or an FTA applies (see 25401) the

contracting officer mustmdash(1) Comply with the requirements of 5203 Publicizing

and response time(2) Comply with the requirements of 5207 Preparation

and transmittal of synopses(3) Not include technical requirements in solicitations

solely to preclude the acquisition of eligible products(4) Specify in solicitations that offerors must submit

offers in the English language and in US dollars (see52214-34 Submission of Offers in the English Languageand 52214-35 Submission of Offers in US Currency orparagraph (c)(5) of 52215-1 Instruction to OfferorsmdashCom-petitive Acquisitions) and

(5) Provide unsuccessful offerors from WTO GPA orFTA countries notice in accordance with 14409-1 or 15503

(b) See Subpart 255 for evaluation procedures andexamples

SUBPART 255mdashEVALUATING FOREIGN OFFERSmdashSUPPLY CONTRACTS 25503

255-1

Subpart 255mdashEvaluating Foreign OffersmdashSupply Contracts

25501 GeneralThe contracting officermdash(a) Must apply the evaluation procedures of this subpart to

each line item of an offer unless either the offer or the solici-tation specifies evaluation on a group basis (see 25503)

(b) May rely on the offerorrsquos certification of end productorigin when evaluating a foreign offer

(c) Must identify and reject offers of end products that areprohibited in accordance with Subpart 257 and

(d) Must not use the Buy American Act evaluation factorsprescribed in this subpart to provide a preference for one for-eign offer over another foreign offer

25502 Application(a) Unless otherwise specified in agency regulations per-

form the following steps in the order presented(1) Eliminate all offers or offerors that are unacceptable

for reasons other than price eg nonresponsive debarred orsuspended or a prohibited source (see Subpart 257)

(2) Rank the remaining offers by price(3) If the solicitation specifies award on the basis of fac-

tors in addition to cost or price apply the evaluation factorsas specified in this section and use the evaluated cost or pricein determining the offer that represents the best value to theGovernment

(b) For acquisitions covered by the WTO GPA (seeSubpart 254)mdash

(1) Consider only offers of US-made or designatedcountry end products unless no offers of such end productswere received

(2) If the agency gives the same consideration given eli-gible offers to offers of US-made end products that are notdomestic end products award on the low offer Otherwiseevaluate in accordance with agency procedures and

(3) If there were no offers of US-made or designatedcountry end products make a nonavailability determination(see 25103(b)(2)) and award on the low offer (see 25403(c))

(c) For acquisitions not covered by the WTO GPA but sub-ject to the Buy American Act (an FTA or the Israeli Trade Actalso may apply) the following applies

(1) If the low offer is a domestic offer or an eligible offerunder an FTA or the Israeli Trade Act award on that offer

(2) If the low offer is a noneligible offer and there wereno domestic offers (see 25103(b)(3)) award on the low offer

(3) If the low offer is a noneligible offer and there is aneligible offer that is lower than the lowest domestic offeraward on the low offer The Buy American Act provides anevaluation preference only for domestic offers

(4) Otherwise apply the appropriate evaluation factorprovided in 25105 to the low offer

(i) If the evaluated price of the low offer remains lessthan the lowest domestic offer award on the low offer

(ii) If the price of the lowest domestic offer is lessthan the evaluated price of the low offer award on the lowestdomestic offer

(d) Ties (1) If application of an evaluation factor results ina tie between a domestic offer and a foreign offer award onthe domestic offer

(2) If no evaluation preference was applied (ie offersafforded nondiscriminatory treatment under the Buy Ameri-can Act) resolve ties between domestic and foreign offers bya witnessed drawing of lots by an impartial individual

(3) Resolve ties between foreign offers from small busi-ness concerns (under the Buy American Act a small businessoffering a manufactured article that does not meet the defini-tion of ldquodomestic end productrdquo is a foreign offer) or foreignoffers from a small business concern and a large business con-cern in accordance with 14408-6(a)

25503 Group offers(a) If the solicitation or an offer specifies that award can be

made only on a group of line items or on all line items con-tained in the solicitation or offer reject the offermdash

(1) If any part of the award would consist of prohibitedend products (see Subpart 257) or

(2) If the acquisition is covered by the WTO GPA andany part of the offer consists of items restricted in accordancewith 22403(c)

(b) If an offer restricts award to a group of line items or toall line items contained in the offer determine for each lineitem whether to apply an evaluation factor (see 25504-4Example 1)

(1) First evaluate offers that do not specify an awardrestriction on a line item basis in accordance with 25502determining a tentative award pattern by selecting for eachline item the offer with the lowest evaluated price

(2) Evaluate an offer that specifies an award restrictionagainst the offered prices of the tentative award pattern apply-ing the appropriate evaluation factor on a line item basis

(3) Compute the total evaluated price for the tentativeaward pattern and the offer that specified an award restriction

(4) Unless the total evaluated price of the offer thatspecified an award restriction is less than the total evaluatedprice of the tentative award pattern award based on the ten-tative award pattern

(c) If the solicitation specifies that award will be made onlyon a group of line items or all line items contained in the solic-itation determine the category of end products on the basis ofeach line item but determine whether to apply an evaluationfactor on the basis of the group of items (see 25504-4 Exam-ple 2)

(1) If the proposed price of domestic end productsexceeds 50 percent of the total proposed price of the group

FAC 2005ndash09 APRIL 19 2006

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 6: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

Item IIImdashRecovery Act Subcontract Reporting Procedures (FAR Case 2010-008) (Interim) This interim rule amends the FAR to revise the clause at FAR 52204-11 American Recovery and Reinvestment ActmdashReporting Requirements The revised clause will require first-tier subcontractors with Recovery Act funded awards of $25000 or more to report jobs information to the prime contractor for reporting into FederalReportinggov It also will require the prime contractor to submit its first report on or before the 10th day after the end of the calendar quarter in which the prime contractor received the award and quarterly thereafter The revised clause will be used for all new solicitations and awards issued on or after the effective date of this interim rule This clause is not required for any existing contracts or task and delivery orders issued under a contract that contain the original clause FAR 52204-11 (March 2009) Therefore this interim rule does not require renegotiation of existing Recovery Act contracts that include the clause dated March 2009 Replacement pages 415-1 and 415-2 522-121 and 522-122 (522-123 and 522-124 removed) and 522-39 and 522-40 Item IVmdashClarification of Criteria for Sole Source Awards to Service-disabled Veteran-owned Small Business Concerns (FAR Case 2008-023) This final rule amends FAR 191406(a) to clarify the criteria that need to be met in order to conduct a sole source service-disabled veteran-owned small business (SDVOSB) concern acquisition The FAR language is amended to be consistent with the Veterans Benefit Act of 2003 (15 USC 657f) and the Small Business Administrationrsquos regulation (13 CFR 12520) that implements the Act This final rule also amends FAR 191306(a) to clarify the criteria that need to be met in order to conduct a sole source for Historically Underutilized Business Zone (HUBZone) small business concern acquisitions These amendments to the FAR alleviate confusion for contracting officers on the appropriate use of the criteria needed to conduct sole source HUBZONE small business and SDVOSB concern acquisitions Replacement pages 1913-1 and 1913-2 and 1914-1 and 1914-2

ii

Item VmdashTrade Agreements Thresholds (FAR Case 2009-040) (Interim) This interim rule adjusts the thresholds for application of the World Trade Organization Government Procurement Agreement and the free trade agreements as determined by the United States Trade Representative according to a pre-determined formula under the agreements Replacement pages 2215-1 and 2215-2 252-1 and 252-2 254-3 and 254-4 255-1 and 255-2 256-1 and 256-2 2511-1 and 2511-2 522-39 and 522-40 522-421 and 522-422 and 522-111 and 522-112

iii

(BLANK PAGE)

FAC 2005-43 FILING INSTRUCTIONS

NOTE The FAR is segmented by subparts The FAR page numbers reflect FAR subparts For example ldquo415-1rdquo is page one of subpart 415

Remove Pages Insert Pages

415-1 and 415-2 415-1 and 415-2 2215-1 and 2215-2 2215-1 and 2215-2 252-1 and 252-2 252-1 and 252-2 254-3 and 254-4 254-3 and 254-4 255-1 and 255-2 255-1 and 255-2 256-1 and 256-2 256-1 and 256-2 2511-1 and 2511-2 2511-1 and 2511-2 522-121 thru 522-124 522-121 and 522-122 522-39 and 522-40 522-39 and 522-40 522-421 and 522-422 522-421 and 522-422 522-111 and 522-112 522-111 and 522-112

(BLANK PAGE)

SUBPART 415mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS 41502

415-1

Subpart 415mdashAmerican Recovery and Reinvestment ActmdashReporting Requirements

41500 Scope of subpartThis subpart implements section 1512(c) of Division A of

the American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) which requires as a condition ofreceipt of funds quarterly reporting on the use of funds Thesubpart also implements the data elements of the FederalFunding Accountability and Transparency Act of 2006 asamended (Pub L 109-282) Contractors that receive awards(or modifications to existing awards) funded in whole or inpart by the Recovery Act must report information includingbut not limited tomdash

(a) The dollar amount of contractor invoices(b) The supplies delivered and services performed(c) An assessment of the completion status of the work(d) An estimate of the number of jobs created and the num-

ber of jobs retained as a result of the Recovery Act funds(e) Names and total compensation of each of the five most

highly compensated officers for the calendar year in which thecontract is awarded and

(f) Specific information on first-tier subcontractors

41501 Procedures(a) In any contract action funded in whole or in part by the

Recovery Act the contracting officer shall indicate that thecontract action is being made under the Recovery Act andindicate which products or services are funded under theRecovery Act This requirement applies whenever RecoveryAct funds are used regardless of the contract instrument

(b) To maximize transparency of Recovery Act funds thatmust be reported by the contractor the contracting officer

shall structure contract awards to allow for separately trackingRecovery Act funds For example the contracting officer mayconsider awarding dedicated separate contracts when usingRecovery Act funds or establishing contract line item number(CLIN) structures to mitigate commingling of Recovery fundswith other funds

(c) Contracting officers shall ensure that the contractorcomplies with the reporting requirements of 52204-11American Recovery and Reinvestment ActmdashReportingRequirements If the contractor fails to comply with thereporting requirements the contracting officer shall exerciseappropriate contractual remedies

(d) The contracting officer shall make the contractorrsquos fail-ure to comply with the reporting requirements a part of thecontractorrsquos performance information under Subpart 4215

41502 Contract clauseInsert the clause at 52204-11 American Recovery and

Reinvestment ActmdashReporting Requirements in all solicita-tions and contracts funded in whole or in part with RecoveryAct funds except classified solicitations and contracts Thisincludes but is not limited to Governmentwide AcquisitionContracts (GWACs) multi-agency contracts (MACs) Fed-eral Supply Schedule (FSS) contracts or agency indefinite-deliveryindefinite-quantity (IDIQ) contracts that will befunded with Recovery Act funds Contracting officers shallinclude this clause in any existing contract or order that willbe funded with Recovery Act funds Contracting officers maynot use Recovery Act funds on existing contracts and ordersif the clause at 52204-11 is not incorporated This clause isnot required for any existing contracts or task and deliveryorders issued under a contract that contains the originalclause FAR 52204-11 (March 2009)

FAC 2005-43 JULY 2 2010

415-2

This page intentionally left blank

SUBPART 2215mdashPROHIBITION OF ACQUISITION OF PRODUCTS PRODUCED BY FORCED OR INDENTURED CHILD LABOR 221503

2215-1

Subpart 2215mdashProhibition of Acquisition of Products Produced by Forced or Indentured

Child Labor

221500 ScopeThis subpart applies to acquisitions of supplies that exceed

the micro-purchase threshold

221501 DefinitionsAs used in this subpartmdashldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

ldquoList of Products Requiring Contractor Certification as toForced or Indentured Child Laborrdquo means the list publishedby the Department of Labor in accordance with EO 13126 ofJune 12 1999 Prohibition of Acquisition of Products Pro-duced by Forced or Indentured Child Labor The list identifiesproducts by their country of origin that the Departments ofLabor Treasury and State have a reasonable basis to believemight have been mined produced or manufactured by forcedor indentured child labor

221502 PolicyAgencies must take appropriate action to enforce the laws

prohibiting the manufacture or importation of products thathave been mined produced or manufactured wholly or in partby forced or indentured child labor (19 USC 130729 USC 201 et seq and 41 USC 35 et seq) Agenciesshould make every effort to avoid acquiring such products

221503 Procedures for acquiring end products on the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor(a) When issuing a solicitation for supplies expected to

exceed the micro-purchase threshold the contracting officermust check the List of Products Requiring Contractor Certifi-cation as to Forced or Indentured Child Labor (the List)(wwwdolgovilab) (see 221505(a)) Appearance of a prod-uct on the List is not a bar to purchase of any such productmined produced or manufactured in the identified countrybut rather is an alert that there is a reasonable basis to believethat such product may have been mined produced or manu-factured by forced or indentured child labor

(b) The requirements of this subpart that result from theappearance of any end product on the List do not apply to asolicitation or contract if the identified country of origin on theList ismdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more (Subpart 254)

(2) Israel and the anticipated value of the acquisition is$50000 or more (see 25406)

(3) Mexico and the anticipated value of the acquisitionis $70079 or more (see Subpart 254) or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more (see 25402(b))

(c) Except as provided in paragraph (b) of this sectionbefore the contracting officer may make an award for an endproduct (regardless of country of origin) of a type identifiedby country of origin on the List the offeror must certify thatmdash

(1) It will not supply any end product on the List thatwas mined produced or manufactured in a country identifiedon the List for that product as specified in the solicitation bythe contracting officer in the Certification Regarding Knowl-edge of Child Labor for Listed End Products or

(2)(i) It has made a good faith effort to determinewhether forced or indentured child labor was used to mineproduce or manufacture any end product to be furnishedunder the contract that is on the List and was mined producedor manufactured in a country identified on the List for thatproduct and

(ii) On the basis of those efforts the offeror isunaware of any such use of child labor

(d) Absent any actual knowledge that the certification isfalse the contracting officer must rely on the offerorsrsquo certi-fications in making award decisions

(e) Whenever a contracting officer has reason to believethat forced or indentured child labor was used to mine pro-duce or manufacture an end product furnished pursuant to acontract awarded subject to the certification required inparagraph (c) of this section the contracting officer must referthe matter for investigation by the agencyrsquos Inspector Generalthe Attorney General or the Secretary of the Treasury which-ever is determined appropriate in accordance with agency pro-cedures except to the extent that the end product is from thecountry listed in paragraph (b) of this section under a contractexceeding the applicable threshold

(f) Proper certification will not prevent the head of anagency from imposing remedies in accordance withsection 221504(a)(4) if it is later discovered that the contrac-tor has furnished an end product or component that has in factbeen mined produced or manufactured wholly or in partusing forced or indentured child labor

FAC 2005ndash43 JULY 2 2010

221504 FEDERAL ACQUISITION REGULATION

2215-2

221504 Violations and remedies(a) Violations The Government may impose remedies set

forth in paragraph (b) of this section for the following viola-tions (note that the violations in paragraphs (a)(3) and (a)(4)of this section go beyond violations of the requirements relat-ing to certification of end products) (see 221503)

(1) The contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor

(2) The contractor has failed to cooperate as required inaccordance with the clause at 52222-19 Child Labor Coop-eration with Authorities and Remedies with an investigationof the use of forced or indentured child labor by an InspectorGeneral the Attorney General or the Secretary of theTreasury

(3) The contractor uses forced or indentured child laborin its mining production or manufacturing processes

(4) The contractor has furnished an end product or com-ponent mined produced or manufactured wholly or in partby forced or indentured child labor Remedies inparagraphs (b)(2) and (b)(3) of this section are inappropriateunless the contractor knew of the violation

(b) Remedies (1) The contracting officer may terminatethe contract

(2) The suspending official may suspend the contractorin accordance with the procedures in Subpart 94

(3) The debarring official may debar the contractor fora period not to exceed 3 years in accordance with the proce-dures in Subpart 94

221505 Solicitation provision and contract clause(a) Except as provided in paragraph (b) of 221503 insert

the provision at 52222-18 Certification Regarding Knowl-edge of Child Labor for Listed End Products in all solicita-tions that are expected to exceed the micro-purchase thresholdand are for the acquisition of end products (regardless of coun-try of origin) of a type identified by country of origin on theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor except solicitations forcommercial items that include the provision at 52212-3 Off-eror Representations and CertificationsmdashCommercial ItemsThe contracting officer must identify in paragraph (b) of theprovision at 52222-18 Certification Regarding Knowledgeof Child Labor for Listed End Products or paragraph (i)(1) ofthe provision at 52212-3 any applicable end products andcountries of origin from the List For solicitations estimatedto equal or exceed $25000 the contracting officer mustexclude from the List in the solicitation end products from anycountries identified at 221503(b) in accordance with thespecified thresholds

(b) Insert the clause at 52222-19 Child LabormdashCoopera-tion with Authorities and Remedies in all solicitations andcontracts for the acquisition of supplies that are expected toexceed the micro-purchase thresholds

SUBPART 252mdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25205

252-1

Subpart 252mdashBuy American ActmdashConstruction Materials

25200 Scope of Subpart(a) This subpart implementsmdash

(1) The Buy American Act (41 USC 10a - 10d)(2) Executive Order 10582 December 17 1954 and(3) Waiver of the component test of the Buy American

Act for acquisitions of commercially available off-the-shelf(COTS) items in accordance with 41 USC 431

(b) It applies to contracts for the construction alteration orrepair of any public building or public work in the UnitedStates

(c) When using funds appropriated or otherwise providedby the American Recovery and Reinvestment Act of 2009(Pub L 111-5) (Recovery Act) for construction seeSubpart 256

25201 PolicyExcept as provided in 25202 use only domestic construc-

tion materials in construction contracts performed in theUnited States

25202 Exceptions(a) When one of the following exceptions applies the con-

tracting officer may acquire foreign construction materialswithout regard to the restrictions of the Buy American Act

(1) Impracticable or inconsistent with public interestThe head of the agency may determine that application of therestrictions of the Buy American Act to a particular construc-tion material would be impracticable or would be inconsistentwith the public interest The public interest exception applieswhen an agency has an agreement with a foreign governmentthat provides a blanket exception to the Buy American Act

(2) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(3) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25204

(b) Determination and findings When a determination ismade for any of the reasons stated in this section that certainforeign construction materials may be used the contractingofficer must list the excepted materials in the contract Theagency must make the findings justifying the exception avail-able for public inspection

(c) Acquisitions under trade agreements For constructioncontracts with an estimated acquisition value of $7804000 ormore see Subpart 254

25203 Preaward determinations(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of the Buy American Act for specifically identified con-struction materials The time for submitting the request isspecified in the solicitation in paragraph (b) of either52225-10 or 52225-12 whichever applies The informationand supporting data that must be included in the request arealso specified in the solicitation in paragraphs (c) and (d) ofeither 52225-9 or 52225-11 whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily availableinformation

25204 Evaluating offers of foreign construction material(a) Offerors proposing to use foreign construction material

other than that listed by the Government in the applicableclause at 52225-9 paragraph (b)(2) or 52225-11paragraph (b)(3) or covered by the WTO GPA or a Free TradeAgreement (paragraph (b)(2) of 52225-11) must provide theinformation required by paragraphs (c) and (d) of the respec-tive clauses

(b) Unless the head of the agency specifies a higher per-centage the contracting officer must add to the offered price6 percent of the cost of any foreign construction material pro-posed for exception from the requirements of the Buy Amer-ican Act based on the unreasonable cost of domesticconstruction materials In the case of a tie the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(2) of52225-9 or paragraph (b)(3) of 52225-11) the contractingofficer must add the excepted materials to the list in the con-tract clause

25205 Postaward determinations(a) If a contractor requests a determination regarding the

inapplicability of the Buy American Act after contract awardthe contractor must explain why it could not request the deter-mination before contract award or why the need for such

FAC 2005ndash43 JULY 2 2010

25206 FEDERAL ACQUISITION REGULATION

252-2

determination otherwise was not reasonably foreseeable Ifthe contracting officer concludes that the contractor shouldhave made the request before contract award the contractingofficer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability of theBuy American Act made after contract award on informationrequired by paragraphs (c) and (d) of the applicable clause at52225-9 or 52225-11 andor other readily availableinformation

(c) If a determination under 25202(a) is made after con-tract award that an exception to the Buy American Actapplies the contracting officer must negotiate adequate con-sideration and modify the contract to allow use of the foreignconstruction material When the basis for the exception is theunreasonable price of a domestic construction material ade-quate consideration is at least the differential established in25202(a) or in accordance with agency procedures

25206 NoncomplianceThe contracting officer mustmdash(a) Review allegations of Buy American Act violations(b) Unless fraud is suspected notify the contractor of the

apparent unauthorized use of foreign construction materialand request a reply to include proposed corrective action and

(c) If the review reveals that a contractor or subcontractorhas used foreign construction material without authorizationtake appropriate action including one or more of thefollowing

(1) Process a determination concerning the inapplica-bility of the Buy American Act in accordance with 25205

(2) Consider requiring the removal and replacement ofthe unauthorized foreign construction material

(3) If removal and replacement of foreign constructionmaterial incorporated in a building or work would be imprac-ticable cause undue delay or otherwise be detrimental to theinterests of the Government the contracting officer maydetermine in writing that the foreign construction materialneed not be removed and replaced A determination to retainforeign construction material does not constitute a determina-tion that an exception to the Buy American Act applies andthis should be stated in the determination Further a determi-nation to retain foreign construction material does not affectthe Governmentrsquos right to suspend or debar a contractor sub-contractor or supplier for violation of the Buy American Actor to exercise other contractual rights and remedies such asreducing the contract price or terminating the contract fordefault

(4) If the noncompliance is sufficiently serious con-sider exercising appropriate contractual remedies such as ter-minating the contract for default Also consider preparing andforwarding a report to the agency suspending or debarringofficial in accordance with Subpart 94 If the noncomplianceappears to be fraudulent refer the matter to other appropriateagency officials such as the officer responsible for criminalinvestigation

SUBPART 254mdashTRADE AGREEMENTS 25404

254-3

25402 General(a)(1) The Trade Agreements Act (19 USC 2501 et seq)

provides the authority for the President to waive the BuyAmerican Act and other discriminatory provisions for eligibleproducts from countries that have signed an internationaltrade agreement with the United States or that meet certainother criteria such as being a least developed country ThePresident has delegated this waiver authority to the US TradeRepresentative In acquisitions covered by the WTO GPAFree Trade Agreements or the Israeli Trade Act the USTRhas waived the Buy American Act and other discriminatoryprovisions for eligible products Offers of eligible productsreceive equal consideration with domestic offers

(2) The contracting officer shall determine the origin ofservices by the country in which the firm providing the ser-vices is established See Subpart 255 for evaluation proce-dures for supply contracts covered by trade agreements

(b) The value of the acquisition is a determining factor inthe applicability of trade agreements Most of these dollarthresholds are subject to revision by the US Trade Represen-tative approximately every 2 years The various thresholds aresummarized as follows

25403 World Trade Organization Government Procurement Agreement and Free Trade Agreements(a) Eligible products from WTO GPA and FTA countries

are entitled to the nondiscriminatory treatment specified in25402(a)(1) The WTO GPA and FTAs specify procurementprocedures designed to ensure fairness (see 25408)

(b) Thresholds (1) To determine whether the acquisitionof products by lease rental or lease-purchase contract(including lease-to-ownership or lease-with-option-to pur-chase) is covered by the WTO GPA or an FTA calculate theestimated acquisition value as follows

(i) If a fixed-term contract of 12 months or less iscontemplated use the total estimated value of the acquisition

(ii) If a fixed-term contract of more than 12 monthsis contemplated use the total estimated value of the acquisi-tion plus the estimated residual value of the leased equipmentat the conclusion of the contemplated term of the contract

(iii) If an indefinite-term contract is contemplateduse the estimated monthly payment multiplied by the totalnumber of months that ordering would be possible under theproposed contract ie the initial ordering period plus anyoptional ordering periods

(iv) If there is any doubt as to the contemplated termof the contract use the estimated monthly payment multipliedby 48

(2) The estimated value includes the value of alloptions

(3) If in any 12-month period recurring or multipleawards for the same type of product or products are antici-pated use the total estimated value of these projected awardsto determine whether the WTO GPA or an FTA applies Donot divide any acquisition with the intent of reducing the esti-mated value of the acquisition below the dollar threshold ofthe WTO GPA or an FTA

(c) Purchase restriction (1) Under the Trade AgreementsAct (19 USC 2512) in acquisitions covered by the WTOGPA acquire only US-made or designated country end prod-ucts or US or designated country services unless offers forsuch end products or services are either not received or areinsufficient to fulfill the requirements This purchase restric-tion does not apply below the WTO GPA threshold for sup-plies and services even if the acquisition is covered by anFTA

(2) This restriction does not apply to purchases of sup-plies by the Department of Defense from a country with whichit has entered into a reciprocal agreement as provided indepartmental regulations

25404 Least developed countriesFor acquisitions covered by the WTO GPA least devel-

oped country end products construction material and ser-vices must be treated as eligible products

Trade Agreement

Supply Contract

(equal to or exceeding)

Service Contract

(equal to or exceeding)

Construction Contract

(equal to or exceeding)

WTO GPA $203000 $203000 $7804000FTAs

Australia FTA 70079 70079 7804000Bahrain FTA 203000 203000 9110318CAFTA-DR (Costa Rica Dominican Republic El Salvador Guatemala Honduras and Nicaragua)

70079 70079 7804000

Chile FTA 70079 70079 7804000Morocco FTA 203000 203000 7804000NAFTAmdashCanada 25000 70079 9110318mdashMexico 70079 70079 9110318Oman FTA 203000 203000 9110318Peru FTA 203000 203000 7804000Singapore FTA 70079 70079 7804000

Israeli Trade Act 50000 mdash mdash

FAC 2005ndash43 JULY 2 2010

25405 FEDERAL ACQUISITION REGULATION

254-4

25405 Caribbean Basin Trade InitiativeUnder the Caribbean Basin Trade Initiative the United

States Trade Representative has determined that for acquisi-tions covered by the WTO GPA Caribbean Basin country endproducts construction material and services must be treatedas eligible products In accordance with Section 201 (a)(3) ofthe Dominican Republic-Central America-United States FreeTrade Implementation Act (Pub L 109-53) when theCAFTA-DR agreement enters into force with respect to acountry that country is no longer designated as a beneficiarycountry for purposes of the Caribbean Basin EconomicRecovery Act and is therefore no longer included in the def-inition of ldquoCaribbean Basin countryrdquo for purposes of the Car-ibbean Basin Trade Initiative

25406 Israeli Trade ActAcquisitions of supplies by most agencies are covered by

the Israeli Trade Act if the estimated value of the acquisitionis $50000 or more but does not exceed the WTO GPA thresh-old for supplies (see 25402(b)) Agencies other than theDepartment of Defense the Department of Energy theDepartment of Transportation the Bureau of Reclamation ofthe Department of the Interior the Federal Housing FinanceBoard and the Office of Thrift Supervision must evaluateoffers of Israeli end products without regard to the restrictionsof the Buy American Act The Israeli Trade Act does not pro-hibit the purchase of other foreign end products

25407 Agreement on Trade in Civil AircraftUnder the authority of Section 303 of the Trade Agree-

ments Act the US Trade Representative has waived the Buy

American Act for civil aircraft and related articles that meetthe substantial transformation test of the Trade AgreementsAct from countries that are parties to the Agreement on Tradein Civil Aircraft Those countries are Austria Belgium Bul-garia Canada Denmark Egypt Finland France GermanyGreece Ireland Italy Japan Luxembourg Macao the Neth-erlands Norway Portugal Romania Spain Sweden Swit-zerland and the United Kingdom

25408 Procedures(a) If the WTO GPA or an FTA applies (see 25401) the

contracting officer mustmdash(1) Comply with the requirements of 5203 Publicizing

and response time(2) Comply with the requirements of 5207 Preparation

and transmittal of synopses(3) Not include technical requirements in solicitations

solely to preclude the acquisition of eligible products(4) Specify in solicitations that offerors must submit

offers in the English language and in US dollars (see52214-34 Submission of Offers in the English Languageand 52214-35 Submission of Offers in US Currency orparagraph (c)(5) of 52215-1 Instruction to OfferorsmdashCom-petitive Acquisitions) and

(5) Provide unsuccessful offerors from WTO GPA orFTA countries notice in accordance with 14409-1 or 15503

(b) See Subpart 255 for evaluation procedures andexamples

SUBPART 255mdashEVALUATING FOREIGN OFFERSmdashSUPPLY CONTRACTS 25503

255-1

Subpart 255mdashEvaluating Foreign OffersmdashSupply Contracts

25501 GeneralThe contracting officermdash(a) Must apply the evaluation procedures of this subpart to

each line item of an offer unless either the offer or the solici-tation specifies evaluation on a group basis (see 25503)

(b) May rely on the offerorrsquos certification of end productorigin when evaluating a foreign offer

(c) Must identify and reject offers of end products that areprohibited in accordance with Subpart 257 and

(d) Must not use the Buy American Act evaluation factorsprescribed in this subpart to provide a preference for one for-eign offer over another foreign offer

25502 Application(a) Unless otherwise specified in agency regulations per-

form the following steps in the order presented(1) Eliminate all offers or offerors that are unacceptable

for reasons other than price eg nonresponsive debarred orsuspended or a prohibited source (see Subpart 257)

(2) Rank the remaining offers by price(3) If the solicitation specifies award on the basis of fac-

tors in addition to cost or price apply the evaluation factorsas specified in this section and use the evaluated cost or pricein determining the offer that represents the best value to theGovernment

(b) For acquisitions covered by the WTO GPA (seeSubpart 254)mdash

(1) Consider only offers of US-made or designatedcountry end products unless no offers of such end productswere received

(2) If the agency gives the same consideration given eli-gible offers to offers of US-made end products that are notdomestic end products award on the low offer Otherwiseevaluate in accordance with agency procedures and

(3) If there were no offers of US-made or designatedcountry end products make a nonavailability determination(see 25103(b)(2)) and award on the low offer (see 25403(c))

(c) For acquisitions not covered by the WTO GPA but sub-ject to the Buy American Act (an FTA or the Israeli Trade Actalso may apply) the following applies

(1) If the low offer is a domestic offer or an eligible offerunder an FTA or the Israeli Trade Act award on that offer

(2) If the low offer is a noneligible offer and there wereno domestic offers (see 25103(b)(3)) award on the low offer

(3) If the low offer is a noneligible offer and there is aneligible offer that is lower than the lowest domestic offeraward on the low offer The Buy American Act provides anevaluation preference only for domestic offers

(4) Otherwise apply the appropriate evaluation factorprovided in 25105 to the low offer

(i) If the evaluated price of the low offer remains lessthan the lowest domestic offer award on the low offer

(ii) If the price of the lowest domestic offer is lessthan the evaluated price of the low offer award on the lowestdomestic offer

(d) Ties (1) If application of an evaluation factor results ina tie between a domestic offer and a foreign offer award onthe domestic offer

(2) If no evaluation preference was applied (ie offersafforded nondiscriminatory treatment under the Buy Ameri-can Act) resolve ties between domestic and foreign offers bya witnessed drawing of lots by an impartial individual

(3) Resolve ties between foreign offers from small busi-ness concerns (under the Buy American Act a small businessoffering a manufactured article that does not meet the defini-tion of ldquodomestic end productrdquo is a foreign offer) or foreignoffers from a small business concern and a large business con-cern in accordance with 14408-6(a)

25503 Group offers(a) If the solicitation or an offer specifies that award can be

made only on a group of line items or on all line items con-tained in the solicitation or offer reject the offermdash

(1) If any part of the award would consist of prohibitedend products (see Subpart 257) or

(2) If the acquisition is covered by the WTO GPA andany part of the offer consists of items restricted in accordancewith 22403(c)

(b) If an offer restricts award to a group of line items or toall line items contained in the offer determine for each lineitem whether to apply an evaluation factor (see 25504-4Example 1)

(1) First evaluate offers that do not specify an awardrestriction on a line item basis in accordance with 25502determining a tentative award pattern by selecting for eachline item the offer with the lowest evaluated price

(2) Evaluate an offer that specifies an award restrictionagainst the offered prices of the tentative award pattern apply-ing the appropriate evaluation factor on a line item basis

(3) Compute the total evaluated price for the tentativeaward pattern and the offer that specified an award restriction

(4) Unless the total evaluated price of the offer thatspecified an award restriction is less than the total evaluatedprice of the tentative award pattern award based on the ten-tative award pattern

(c) If the solicitation specifies that award will be made onlyon a group of line items or all line items contained in the solic-itation determine the category of end products on the basis ofeach line item but determine whether to apply an evaluationfactor on the basis of the group of items (see 25504-4 Exam-ple 2)

(1) If the proposed price of domestic end productsexceeds 50 percent of the total proposed price of the group

FAC 2005ndash09 APRIL 19 2006

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 7: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

Item VmdashTrade Agreements Thresholds (FAR Case 2009-040) (Interim) This interim rule adjusts the thresholds for application of the World Trade Organization Government Procurement Agreement and the free trade agreements as determined by the United States Trade Representative according to a pre-determined formula under the agreements Replacement pages 2215-1 and 2215-2 252-1 and 252-2 254-3 and 254-4 255-1 and 255-2 256-1 and 256-2 2511-1 and 2511-2 522-39 and 522-40 522-421 and 522-422 and 522-111 and 522-112

iii

(BLANK PAGE)

FAC 2005-43 FILING INSTRUCTIONS

NOTE The FAR is segmented by subparts The FAR page numbers reflect FAR subparts For example ldquo415-1rdquo is page one of subpart 415

Remove Pages Insert Pages

415-1 and 415-2 415-1 and 415-2 2215-1 and 2215-2 2215-1 and 2215-2 252-1 and 252-2 252-1 and 252-2 254-3 and 254-4 254-3 and 254-4 255-1 and 255-2 255-1 and 255-2 256-1 and 256-2 256-1 and 256-2 2511-1 and 2511-2 2511-1 and 2511-2 522-121 thru 522-124 522-121 and 522-122 522-39 and 522-40 522-39 and 522-40 522-421 and 522-422 522-421 and 522-422 522-111 and 522-112 522-111 and 522-112

(BLANK PAGE)

SUBPART 415mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS 41502

415-1

Subpart 415mdashAmerican Recovery and Reinvestment ActmdashReporting Requirements

41500 Scope of subpartThis subpart implements section 1512(c) of Division A of

the American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) which requires as a condition ofreceipt of funds quarterly reporting on the use of funds Thesubpart also implements the data elements of the FederalFunding Accountability and Transparency Act of 2006 asamended (Pub L 109-282) Contractors that receive awards(or modifications to existing awards) funded in whole or inpart by the Recovery Act must report information includingbut not limited tomdash

(a) The dollar amount of contractor invoices(b) The supplies delivered and services performed(c) An assessment of the completion status of the work(d) An estimate of the number of jobs created and the num-

ber of jobs retained as a result of the Recovery Act funds(e) Names and total compensation of each of the five most

highly compensated officers for the calendar year in which thecontract is awarded and

(f) Specific information on first-tier subcontractors

41501 Procedures(a) In any contract action funded in whole or in part by the

Recovery Act the contracting officer shall indicate that thecontract action is being made under the Recovery Act andindicate which products or services are funded under theRecovery Act This requirement applies whenever RecoveryAct funds are used regardless of the contract instrument

(b) To maximize transparency of Recovery Act funds thatmust be reported by the contractor the contracting officer

shall structure contract awards to allow for separately trackingRecovery Act funds For example the contracting officer mayconsider awarding dedicated separate contracts when usingRecovery Act funds or establishing contract line item number(CLIN) structures to mitigate commingling of Recovery fundswith other funds

(c) Contracting officers shall ensure that the contractorcomplies with the reporting requirements of 52204-11American Recovery and Reinvestment ActmdashReportingRequirements If the contractor fails to comply with thereporting requirements the contracting officer shall exerciseappropriate contractual remedies

(d) The contracting officer shall make the contractorrsquos fail-ure to comply with the reporting requirements a part of thecontractorrsquos performance information under Subpart 4215

41502 Contract clauseInsert the clause at 52204-11 American Recovery and

Reinvestment ActmdashReporting Requirements in all solicita-tions and contracts funded in whole or in part with RecoveryAct funds except classified solicitations and contracts Thisincludes but is not limited to Governmentwide AcquisitionContracts (GWACs) multi-agency contracts (MACs) Fed-eral Supply Schedule (FSS) contracts or agency indefinite-deliveryindefinite-quantity (IDIQ) contracts that will befunded with Recovery Act funds Contracting officers shallinclude this clause in any existing contract or order that willbe funded with Recovery Act funds Contracting officers maynot use Recovery Act funds on existing contracts and ordersif the clause at 52204-11 is not incorporated This clause isnot required for any existing contracts or task and deliveryorders issued under a contract that contains the originalclause FAR 52204-11 (March 2009)

FAC 2005-43 JULY 2 2010

415-2

This page intentionally left blank

SUBPART 2215mdashPROHIBITION OF ACQUISITION OF PRODUCTS PRODUCED BY FORCED OR INDENTURED CHILD LABOR 221503

2215-1

Subpart 2215mdashProhibition of Acquisition of Products Produced by Forced or Indentured

Child Labor

221500 ScopeThis subpart applies to acquisitions of supplies that exceed

the micro-purchase threshold

221501 DefinitionsAs used in this subpartmdashldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

ldquoList of Products Requiring Contractor Certification as toForced or Indentured Child Laborrdquo means the list publishedby the Department of Labor in accordance with EO 13126 ofJune 12 1999 Prohibition of Acquisition of Products Pro-duced by Forced or Indentured Child Labor The list identifiesproducts by their country of origin that the Departments ofLabor Treasury and State have a reasonable basis to believemight have been mined produced or manufactured by forcedor indentured child labor

221502 PolicyAgencies must take appropriate action to enforce the laws

prohibiting the manufacture or importation of products thathave been mined produced or manufactured wholly or in partby forced or indentured child labor (19 USC 130729 USC 201 et seq and 41 USC 35 et seq) Agenciesshould make every effort to avoid acquiring such products

221503 Procedures for acquiring end products on the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor(a) When issuing a solicitation for supplies expected to

exceed the micro-purchase threshold the contracting officermust check the List of Products Requiring Contractor Certifi-cation as to Forced or Indentured Child Labor (the List)(wwwdolgovilab) (see 221505(a)) Appearance of a prod-uct on the List is not a bar to purchase of any such productmined produced or manufactured in the identified countrybut rather is an alert that there is a reasonable basis to believethat such product may have been mined produced or manu-factured by forced or indentured child labor

(b) The requirements of this subpart that result from theappearance of any end product on the List do not apply to asolicitation or contract if the identified country of origin on theList ismdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more (Subpart 254)

(2) Israel and the anticipated value of the acquisition is$50000 or more (see 25406)

(3) Mexico and the anticipated value of the acquisitionis $70079 or more (see Subpart 254) or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more (see 25402(b))

(c) Except as provided in paragraph (b) of this sectionbefore the contracting officer may make an award for an endproduct (regardless of country of origin) of a type identifiedby country of origin on the List the offeror must certify thatmdash

(1) It will not supply any end product on the List thatwas mined produced or manufactured in a country identifiedon the List for that product as specified in the solicitation bythe contracting officer in the Certification Regarding Knowl-edge of Child Labor for Listed End Products or

(2)(i) It has made a good faith effort to determinewhether forced or indentured child labor was used to mineproduce or manufacture any end product to be furnishedunder the contract that is on the List and was mined producedor manufactured in a country identified on the List for thatproduct and

(ii) On the basis of those efforts the offeror isunaware of any such use of child labor

(d) Absent any actual knowledge that the certification isfalse the contracting officer must rely on the offerorsrsquo certi-fications in making award decisions

(e) Whenever a contracting officer has reason to believethat forced or indentured child labor was used to mine pro-duce or manufacture an end product furnished pursuant to acontract awarded subject to the certification required inparagraph (c) of this section the contracting officer must referthe matter for investigation by the agencyrsquos Inspector Generalthe Attorney General or the Secretary of the Treasury which-ever is determined appropriate in accordance with agency pro-cedures except to the extent that the end product is from thecountry listed in paragraph (b) of this section under a contractexceeding the applicable threshold

(f) Proper certification will not prevent the head of anagency from imposing remedies in accordance withsection 221504(a)(4) if it is later discovered that the contrac-tor has furnished an end product or component that has in factbeen mined produced or manufactured wholly or in partusing forced or indentured child labor

FAC 2005ndash43 JULY 2 2010

221504 FEDERAL ACQUISITION REGULATION

2215-2

221504 Violations and remedies(a) Violations The Government may impose remedies set

forth in paragraph (b) of this section for the following viola-tions (note that the violations in paragraphs (a)(3) and (a)(4)of this section go beyond violations of the requirements relat-ing to certification of end products) (see 221503)

(1) The contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor

(2) The contractor has failed to cooperate as required inaccordance with the clause at 52222-19 Child Labor Coop-eration with Authorities and Remedies with an investigationof the use of forced or indentured child labor by an InspectorGeneral the Attorney General or the Secretary of theTreasury

(3) The contractor uses forced or indentured child laborin its mining production or manufacturing processes

(4) The contractor has furnished an end product or com-ponent mined produced or manufactured wholly or in partby forced or indentured child labor Remedies inparagraphs (b)(2) and (b)(3) of this section are inappropriateunless the contractor knew of the violation

(b) Remedies (1) The contracting officer may terminatethe contract

(2) The suspending official may suspend the contractorin accordance with the procedures in Subpart 94

(3) The debarring official may debar the contractor fora period not to exceed 3 years in accordance with the proce-dures in Subpart 94

221505 Solicitation provision and contract clause(a) Except as provided in paragraph (b) of 221503 insert

the provision at 52222-18 Certification Regarding Knowl-edge of Child Labor for Listed End Products in all solicita-tions that are expected to exceed the micro-purchase thresholdand are for the acquisition of end products (regardless of coun-try of origin) of a type identified by country of origin on theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor except solicitations forcommercial items that include the provision at 52212-3 Off-eror Representations and CertificationsmdashCommercial ItemsThe contracting officer must identify in paragraph (b) of theprovision at 52222-18 Certification Regarding Knowledgeof Child Labor for Listed End Products or paragraph (i)(1) ofthe provision at 52212-3 any applicable end products andcountries of origin from the List For solicitations estimatedto equal or exceed $25000 the contracting officer mustexclude from the List in the solicitation end products from anycountries identified at 221503(b) in accordance with thespecified thresholds

(b) Insert the clause at 52222-19 Child LabormdashCoopera-tion with Authorities and Remedies in all solicitations andcontracts for the acquisition of supplies that are expected toexceed the micro-purchase thresholds

SUBPART 252mdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25205

252-1

Subpart 252mdashBuy American ActmdashConstruction Materials

25200 Scope of Subpart(a) This subpart implementsmdash

(1) The Buy American Act (41 USC 10a - 10d)(2) Executive Order 10582 December 17 1954 and(3) Waiver of the component test of the Buy American

Act for acquisitions of commercially available off-the-shelf(COTS) items in accordance with 41 USC 431

(b) It applies to contracts for the construction alteration orrepair of any public building or public work in the UnitedStates

(c) When using funds appropriated or otherwise providedby the American Recovery and Reinvestment Act of 2009(Pub L 111-5) (Recovery Act) for construction seeSubpart 256

25201 PolicyExcept as provided in 25202 use only domestic construc-

tion materials in construction contracts performed in theUnited States

25202 Exceptions(a) When one of the following exceptions applies the con-

tracting officer may acquire foreign construction materialswithout regard to the restrictions of the Buy American Act

(1) Impracticable or inconsistent with public interestThe head of the agency may determine that application of therestrictions of the Buy American Act to a particular construc-tion material would be impracticable or would be inconsistentwith the public interest The public interest exception applieswhen an agency has an agreement with a foreign governmentthat provides a blanket exception to the Buy American Act

(2) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(3) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25204

(b) Determination and findings When a determination ismade for any of the reasons stated in this section that certainforeign construction materials may be used the contractingofficer must list the excepted materials in the contract Theagency must make the findings justifying the exception avail-able for public inspection

(c) Acquisitions under trade agreements For constructioncontracts with an estimated acquisition value of $7804000 ormore see Subpart 254

25203 Preaward determinations(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of the Buy American Act for specifically identified con-struction materials The time for submitting the request isspecified in the solicitation in paragraph (b) of either52225-10 or 52225-12 whichever applies The informationand supporting data that must be included in the request arealso specified in the solicitation in paragraphs (c) and (d) ofeither 52225-9 or 52225-11 whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily availableinformation

25204 Evaluating offers of foreign construction material(a) Offerors proposing to use foreign construction material

other than that listed by the Government in the applicableclause at 52225-9 paragraph (b)(2) or 52225-11paragraph (b)(3) or covered by the WTO GPA or a Free TradeAgreement (paragraph (b)(2) of 52225-11) must provide theinformation required by paragraphs (c) and (d) of the respec-tive clauses

(b) Unless the head of the agency specifies a higher per-centage the contracting officer must add to the offered price6 percent of the cost of any foreign construction material pro-posed for exception from the requirements of the Buy Amer-ican Act based on the unreasonable cost of domesticconstruction materials In the case of a tie the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(2) of52225-9 or paragraph (b)(3) of 52225-11) the contractingofficer must add the excepted materials to the list in the con-tract clause

25205 Postaward determinations(a) If a contractor requests a determination regarding the

inapplicability of the Buy American Act after contract awardthe contractor must explain why it could not request the deter-mination before contract award or why the need for such

FAC 2005ndash43 JULY 2 2010

25206 FEDERAL ACQUISITION REGULATION

252-2

determination otherwise was not reasonably foreseeable Ifthe contracting officer concludes that the contractor shouldhave made the request before contract award the contractingofficer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability of theBuy American Act made after contract award on informationrequired by paragraphs (c) and (d) of the applicable clause at52225-9 or 52225-11 andor other readily availableinformation

(c) If a determination under 25202(a) is made after con-tract award that an exception to the Buy American Actapplies the contracting officer must negotiate adequate con-sideration and modify the contract to allow use of the foreignconstruction material When the basis for the exception is theunreasonable price of a domestic construction material ade-quate consideration is at least the differential established in25202(a) or in accordance with agency procedures

25206 NoncomplianceThe contracting officer mustmdash(a) Review allegations of Buy American Act violations(b) Unless fraud is suspected notify the contractor of the

apparent unauthorized use of foreign construction materialand request a reply to include proposed corrective action and

(c) If the review reveals that a contractor or subcontractorhas used foreign construction material without authorizationtake appropriate action including one or more of thefollowing

(1) Process a determination concerning the inapplica-bility of the Buy American Act in accordance with 25205

(2) Consider requiring the removal and replacement ofthe unauthorized foreign construction material

(3) If removal and replacement of foreign constructionmaterial incorporated in a building or work would be imprac-ticable cause undue delay or otherwise be detrimental to theinterests of the Government the contracting officer maydetermine in writing that the foreign construction materialneed not be removed and replaced A determination to retainforeign construction material does not constitute a determina-tion that an exception to the Buy American Act applies andthis should be stated in the determination Further a determi-nation to retain foreign construction material does not affectthe Governmentrsquos right to suspend or debar a contractor sub-contractor or supplier for violation of the Buy American Actor to exercise other contractual rights and remedies such asreducing the contract price or terminating the contract fordefault

(4) If the noncompliance is sufficiently serious con-sider exercising appropriate contractual remedies such as ter-minating the contract for default Also consider preparing andforwarding a report to the agency suspending or debarringofficial in accordance with Subpart 94 If the noncomplianceappears to be fraudulent refer the matter to other appropriateagency officials such as the officer responsible for criminalinvestigation

SUBPART 254mdashTRADE AGREEMENTS 25404

254-3

25402 General(a)(1) The Trade Agreements Act (19 USC 2501 et seq)

provides the authority for the President to waive the BuyAmerican Act and other discriminatory provisions for eligibleproducts from countries that have signed an internationaltrade agreement with the United States or that meet certainother criteria such as being a least developed country ThePresident has delegated this waiver authority to the US TradeRepresentative In acquisitions covered by the WTO GPAFree Trade Agreements or the Israeli Trade Act the USTRhas waived the Buy American Act and other discriminatoryprovisions for eligible products Offers of eligible productsreceive equal consideration with domestic offers

(2) The contracting officer shall determine the origin ofservices by the country in which the firm providing the ser-vices is established See Subpart 255 for evaluation proce-dures for supply contracts covered by trade agreements

(b) The value of the acquisition is a determining factor inthe applicability of trade agreements Most of these dollarthresholds are subject to revision by the US Trade Represen-tative approximately every 2 years The various thresholds aresummarized as follows

25403 World Trade Organization Government Procurement Agreement and Free Trade Agreements(a) Eligible products from WTO GPA and FTA countries

are entitled to the nondiscriminatory treatment specified in25402(a)(1) The WTO GPA and FTAs specify procurementprocedures designed to ensure fairness (see 25408)

(b) Thresholds (1) To determine whether the acquisitionof products by lease rental or lease-purchase contract(including lease-to-ownership or lease-with-option-to pur-chase) is covered by the WTO GPA or an FTA calculate theestimated acquisition value as follows

(i) If a fixed-term contract of 12 months or less iscontemplated use the total estimated value of the acquisition

(ii) If a fixed-term contract of more than 12 monthsis contemplated use the total estimated value of the acquisi-tion plus the estimated residual value of the leased equipmentat the conclusion of the contemplated term of the contract

(iii) If an indefinite-term contract is contemplateduse the estimated monthly payment multiplied by the totalnumber of months that ordering would be possible under theproposed contract ie the initial ordering period plus anyoptional ordering periods

(iv) If there is any doubt as to the contemplated termof the contract use the estimated monthly payment multipliedby 48

(2) The estimated value includes the value of alloptions

(3) If in any 12-month period recurring or multipleawards for the same type of product or products are antici-pated use the total estimated value of these projected awardsto determine whether the WTO GPA or an FTA applies Donot divide any acquisition with the intent of reducing the esti-mated value of the acquisition below the dollar threshold ofthe WTO GPA or an FTA

(c) Purchase restriction (1) Under the Trade AgreementsAct (19 USC 2512) in acquisitions covered by the WTOGPA acquire only US-made or designated country end prod-ucts or US or designated country services unless offers forsuch end products or services are either not received or areinsufficient to fulfill the requirements This purchase restric-tion does not apply below the WTO GPA threshold for sup-plies and services even if the acquisition is covered by anFTA

(2) This restriction does not apply to purchases of sup-plies by the Department of Defense from a country with whichit has entered into a reciprocal agreement as provided indepartmental regulations

25404 Least developed countriesFor acquisitions covered by the WTO GPA least devel-

oped country end products construction material and ser-vices must be treated as eligible products

Trade Agreement

Supply Contract

(equal to or exceeding)

Service Contract

(equal to or exceeding)

Construction Contract

(equal to or exceeding)

WTO GPA $203000 $203000 $7804000FTAs

Australia FTA 70079 70079 7804000Bahrain FTA 203000 203000 9110318CAFTA-DR (Costa Rica Dominican Republic El Salvador Guatemala Honduras and Nicaragua)

70079 70079 7804000

Chile FTA 70079 70079 7804000Morocco FTA 203000 203000 7804000NAFTAmdashCanada 25000 70079 9110318mdashMexico 70079 70079 9110318Oman FTA 203000 203000 9110318Peru FTA 203000 203000 7804000Singapore FTA 70079 70079 7804000

Israeli Trade Act 50000 mdash mdash

FAC 2005ndash43 JULY 2 2010

25405 FEDERAL ACQUISITION REGULATION

254-4

25405 Caribbean Basin Trade InitiativeUnder the Caribbean Basin Trade Initiative the United

States Trade Representative has determined that for acquisi-tions covered by the WTO GPA Caribbean Basin country endproducts construction material and services must be treatedas eligible products In accordance with Section 201 (a)(3) ofthe Dominican Republic-Central America-United States FreeTrade Implementation Act (Pub L 109-53) when theCAFTA-DR agreement enters into force with respect to acountry that country is no longer designated as a beneficiarycountry for purposes of the Caribbean Basin EconomicRecovery Act and is therefore no longer included in the def-inition of ldquoCaribbean Basin countryrdquo for purposes of the Car-ibbean Basin Trade Initiative

25406 Israeli Trade ActAcquisitions of supplies by most agencies are covered by

the Israeli Trade Act if the estimated value of the acquisitionis $50000 or more but does not exceed the WTO GPA thresh-old for supplies (see 25402(b)) Agencies other than theDepartment of Defense the Department of Energy theDepartment of Transportation the Bureau of Reclamation ofthe Department of the Interior the Federal Housing FinanceBoard and the Office of Thrift Supervision must evaluateoffers of Israeli end products without regard to the restrictionsof the Buy American Act The Israeli Trade Act does not pro-hibit the purchase of other foreign end products

25407 Agreement on Trade in Civil AircraftUnder the authority of Section 303 of the Trade Agree-

ments Act the US Trade Representative has waived the Buy

American Act for civil aircraft and related articles that meetthe substantial transformation test of the Trade AgreementsAct from countries that are parties to the Agreement on Tradein Civil Aircraft Those countries are Austria Belgium Bul-garia Canada Denmark Egypt Finland France GermanyGreece Ireland Italy Japan Luxembourg Macao the Neth-erlands Norway Portugal Romania Spain Sweden Swit-zerland and the United Kingdom

25408 Procedures(a) If the WTO GPA or an FTA applies (see 25401) the

contracting officer mustmdash(1) Comply with the requirements of 5203 Publicizing

and response time(2) Comply with the requirements of 5207 Preparation

and transmittal of synopses(3) Not include technical requirements in solicitations

solely to preclude the acquisition of eligible products(4) Specify in solicitations that offerors must submit

offers in the English language and in US dollars (see52214-34 Submission of Offers in the English Languageand 52214-35 Submission of Offers in US Currency orparagraph (c)(5) of 52215-1 Instruction to OfferorsmdashCom-petitive Acquisitions) and

(5) Provide unsuccessful offerors from WTO GPA orFTA countries notice in accordance with 14409-1 or 15503

(b) See Subpart 255 for evaluation procedures andexamples

SUBPART 255mdashEVALUATING FOREIGN OFFERSmdashSUPPLY CONTRACTS 25503

255-1

Subpart 255mdashEvaluating Foreign OffersmdashSupply Contracts

25501 GeneralThe contracting officermdash(a) Must apply the evaluation procedures of this subpart to

each line item of an offer unless either the offer or the solici-tation specifies evaluation on a group basis (see 25503)

(b) May rely on the offerorrsquos certification of end productorigin when evaluating a foreign offer

(c) Must identify and reject offers of end products that areprohibited in accordance with Subpart 257 and

(d) Must not use the Buy American Act evaluation factorsprescribed in this subpart to provide a preference for one for-eign offer over another foreign offer

25502 Application(a) Unless otherwise specified in agency regulations per-

form the following steps in the order presented(1) Eliminate all offers or offerors that are unacceptable

for reasons other than price eg nonresponsive debarred orsuspended or a prohibited source (see Subpart 257)

(2) Rank the remaining offers by price(3) If the solicitation specifies award on the basis of fac-

tors in addition to cost or price apply the evaluation factorsas specified in this section and use the evaluated cost or pricein determining the offer that represents the best value to theGovernment

(b) For acquisitions covered by the WTO GPA (seeSubpart 254)mdash

(1) Consider only offers of US-made or designatedcountry end products unless no offers of such end productswere received

(2) If the agency gives the same consideration given eli-gible offers to offers of US-made end products that are notdomestic end products award on the low offer Otherwiseevaluate in accordance with agency procedures and

(3) If there were no offers of US-made or designatedcountry end products make a nonavailability determination(see 25103(b)(2)) and award on the low offer (see 25403(c))

(c) For acquisitions not covered by the WTO GPA but sub-ject to the Buy American Act (an FTA or the Israeli Trade Actalso may apply) the following applies

(1) If the low offer is a domestic offer or an eligible offerunder an FTA or the Israeli Trade Act award on that offer

(2) If the low offer is a noneligible offer and there wereno domestic offers (see 25103(b)(3)) award on the low offer

(3) If the low offer is a noneligible offer and there is aneligible offer that is lower than the lowest domestic offeraward on the low offer The Buy American Act provides anevaluation preference only for domestic offers

(4) Otherwise apply the appropriate evaluation factorprovided in 25105 to the low offer

(i) If the evaluated price of the low offer remains lessthan the lowest domestic offer award on the low offer

(ii) If the price of the lowest domestic offer is lessthan the evaluated price of the low offer award on the lowestdomestic offer

(d) Ties (1) If application of an evaluation factor results ina tie between a domestic offer and a foreign offer award onthe domestic offer

(2) If no evaluation preference was applied (ie offersafforded nondiscriminatory treatment under the Buy Ameri-can Act) resolve ties between domestic and foreign offers bya witnessed drawing of lots by an impartial individual

(3) Resolve ties between foreign offers from small busi-ness concerns (under the Buy American Act a small businessoffering a manufactured article that does not meet the defini-tion of ldquodomestic end productrdquo is a foreign offer) or foreignoffers from a small business concern and a large business con-cern in accordance with 14408-6(a)

25503 Group offers(a) If the solicitation or an offer specifies that award can be

made only on a group of line items or on all line items con-tained in the solicitation or offer reject the offermdash

(1) If any part of the award would consist of prohibitedend products (see Subpart 257) or

(2) If the acquisition is covered by the WTO GPA andany part of the offer consists of items restricted in accordancewith 22403(c)

(b) If an offer restricts award to a group of line items or toall line items contained in the offer determine for each lineitem whether to apply an evaluation factor (see 25504-4Example 1)

(1) First evaluate offers that do not specify an awardrestriction on a line item basis in accordance with 25502determining a tentative award pattern by selecting for eachline item the offer with the lowest evaluated price

(2) Evaluate an offer that specifies an award restrictionagainst the offered prices of the tentative award pattern apply-ing the appropriate evaluation factor on a line item basis

(3) Compute the total evaluated price for the tentativeaward pattern and the offer that specified an award restriction

(4) Unless the total evaluated price of the offer thatspecified an award restriction is less than the total evaluatedprice of the tentative award pattern award based on the ten-tative award pattern

(c) If the solicitation specifies that award will be made onlyon a group of line items or all line items contained in the solic-itation determine the category of end products on the basis ofeach line item but determine whether to apply an evaluationfactor on the basis of the group of items (see 25504-4 Exam-ple 2)

(1) If the proposed price of domestic end productsexceeds 50 percent of the total proposed price of the group

FAC 2005ndash09 APRIL 19 2006

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 8: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

(BLANK PAGE)

FAC 2005-43 FILING INSTRUCTIONS

NOTE The FAR is segmented by subparts The FAR page numbers reflect FAR subparts For example ldquo415-1rdquo is page one of subpart 415

Remove Pages Insert Pages

415-1 and 415-2 415-1 and 415-2 2215-1 and 2215-2 2215-1 and 2215-2 252-1 and 252-2 252-1 and 252-2 254-3 and 254-4 254-3 and 254-4 255-1 and 255-2 255-1 and 255-2 256-1 and 256-2 256-1 and 256-2 2511-1 and 2511-2 2511-1 and 2511-2 522-121 thru 522-124 522-121 and 522-122 522-39 and 522-40 522-39 and 522-40 522-421 and 522-422 522-421 and 522-422 522-111 and 522-112 522-111 and 522-112

(BLANK PAGE)

SUBPART 415mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS 41502

415-1

Subpart 415mdashAmerican Recovery and Reinvestment ActmdashReporting Requirements

41500 Scope of subpartThis subpart implements section 1512(c) of Division A of

the American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) which requires as a condition ofreceipt of funds quarterly reporting on the use of funds Thesubpart also implements the data elements of the FederalFunding Accountability and Transparency Act of 2006 asamended (Pub L 109-282) Contractors that receive awards(or modifications to existing awards) funded in whole or inpart by the Recovery Act must report information includingbut not limited tomdash

(a) The dollar amount of contractor invoices(b) The supplies delivered and services performed(c) An assessment of the completion status of the work(d) An estimate of the number of jobs created and the num-

ber of jobs retained as a result of the Recovery Act funds(e) Names and total compensation of each of the five most

highly compensated officers for the calendar year in which thecontract is awarded and

(f) Specific information on first-tier subcontractors

41501 Procedures(a) In any contract action funded in whole or in part by the

Recovery Act the contracting officer shall indicate that thecontract action is being made under the Recovery Act andindicate which products or services are funded under theRecovery Act This requirement applies whenever RecoveryAct funds are used regardless of the contract instrument

(b) To maximize transparency of Recovery Act funds thatmust be reported by the contractor the contracting officer

shall structure contract awards to allow for separately trackingRecovery Act funds For example the contracting officer mayconsider awarding dedicated separate contracts when usingRecovery Act funds or establishing contract line item number(CLIN) structures to mitigate commingling of Recovery fundswith other funds

(c) Contracting officers shall ensure that the contractorcomplies with the reporting requirements of 52204-11American Recovery and Reinvestment ActmdashReportingRequirements If the contractor fails to comply with thereporting requirements the contracting officer shall exerciseappropriate contractual remedies

(d) The contracting officer shall make the contractorrsquos fail-ure to comply with the reporting requirements a part of thecontractorrsquos performance information under Subpart 4215

41502 Contract clauseInsert the clause at 52204-11 American Recovery and

Reinvestment ActmdashReporting Requirements in all solicita-tions and contracts funded in whole or in part with RecoveryAct funds except classified solicitations and contracts Thisincludes but is not limited to Governmentwide AcquisitionContracts (GWACs) multi-agency contracts (MACs) Fed-eral Supply Schedule (FSS) contracts or agency indefinite-deliveryindefinite-quantity (IDIQ) contracts that will befunded with Recovery Act funds Contracting officers shallinclude this clause in any existing contract or order that willbe funded with Recovery Act funds Contracting officers maynot use Recovery Act funds on existing contracts and ordersif the clause at 52204-11 is not incorporated This clause isnot required for any existing contracts or task and deliveryorders issued under a contract that contains the originalclause FAR 52204-11 (March 2009)

FAC 2005-43 JULY 2 2010

415-2

This page intentionally left blank

SUBPART 2215mdashPROHIBITION OF ACQUISITION OF PRODUCTS PRODUCED BY FORCED OR INDENTURED CHILD LABOR 221503

2215-1

Subpart 2215mdashProhibition of Acquisition of Products Produced by Forced or Indentured

Child Labor

221500 ScopeThis subpart applies to acquisitions of supplies that exceed

the micro-purchase threshold

221501 DefinitionsAs used in this subpartmdashldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

ldquoList of Products Requiring Contractor Certification as toForced or Indentured Child Laborrdquo means the list publishedby the Department of Labor in accordance with EO 13126 ofJune 12 1999 Prohibition of Acquisition of Products Pro-duced by Forced or Indentured Child Labor The list identifiesproducts by their country of origin that the Departments ofLabor Treasury and State have a reasonable basis to believemight have been mined produced or manufactured by forcedor indentured child labor

221502 PolicyAgencies must take appropriate action to enforce the laws

prohibiting the manufacture or importation of products thathave been mined produced or manufactured wholly or in partby forced or indentured child labor (19 USC 130729 USC 201 et seq and 41 USC 35 et seq) Agenciesshould make every effort to avoid acquiring such products

221503 Procedures for acquiring end products on the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor(a) When issuing a solicitation for supplies expected to

exceed the micro-purchase threshold the contracting officermust check the List of Products Requiring Contractor Certifi-cation as to Forced or Indentured Child Labor (the List)(wwwdolgovilab) (see 221505(a)) Appearance of a prod-uct on the List is not a bar to purchase of any such productmined produced or manufactured in the identified countrybut rather is an alert that there is a reasonable basis to believethat such product may have been mined produced or manu-factured by forced or indentured child labor

(b) The requirements of this subpart that result from theappearance of any end product on the List do not apply to asolicitation or contract if the identified country of origin on theList ismdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more (Subpart 254)

(2) Israel and the anticipated value of the acquisition is$50000 or more (see 25406)

(3) Mexico and the anticipated value of the acquisitionis $70079 or more (see Subpart 254) or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more (see 25402(b))

(c) Except as provided in paragraph (b) of this sectionbefore the contracting officer may make an award for an endproduct (regardless of country of origin) of a type identifiedby country of origin on the List the offeror must certify thatmdash

(1) It will not supply any end product on the List thatwas mined produced or manufactured in a country identifiedon the List for that product as specified in the solicitation bythe contracting officer in the Certification Regarding Knowl-edge of Child Labor for Listed End Products or

(2)(i) It has made a good faith effort to determinewhether forced or indentured child labor was used to mineproduce or manufacture any end product to be furnishedunder the contract that is on the List and was mined producedor manufactured in a country identified on the List for thatproduct and

(ii) On the basis of those efforts the offeror isunaware of any such use of child labor

(d) Absent any actual knowledge that the certification isfalse the contracting officer must rely on the offerorsrsquo certi-fications in making award decisions

(e) Whenever a contracting officer has reason to believethat forced or indentured child labor was used to mine pro-duce or manufacture an end product furnished pursuant to acontract awarded subject to the certification required inparagraph (c) of this section the contracting officer must referthe matter for investigation by the agencyrsquos Inspector Generalthe Attorney General or the Secretary of the Treasury which-ever is determined appropriate in accordance with agency pro-cedures except to the extent that the end product is from thecountry listed in paragraph (b) of this section under a contractexceeding the applicable threshold

(f) Proper certification will not prevent the head of anagency from imposing remedies in accordance withsection 221504(a)(4) if it is later discovered that the contrac-tor has furnished an end product or component that has in factbeen mined produced or manufactured wholly or in partusing forced or indentured child labor

FAC 2005ndash43 JULY 2 2010

221504 FEDERAL ACQUISITION REGULATION

2215-2

221504 Violations and remedies(a) Violations The Government may impose remedies set

forth in paragraph (b) of this section for the following viola-tions (note that the violations in paragraphs (a)(3) and (a)(4)of this section go beyond violations of the requirements relat-ing to certification of end products) (see 221503)

(1) The contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor

(2) The contractor has failed to cooperate as required inaccordance with the clause at 52222-19 Child Labor Coop-eration with Authorities and Remedies with an investigationof the use of forced or indentured child labor by an InspectorGeneral the Attorney General or the Secretary of theTreasury

(3) The contractor uses forced or indentured child laborin its mining production or manufacturing processes

(4) The contractor has furnished an end product or com-ponent mined produced or manufactured wholly or in partby forced or indentured child labor Remedies inparagraphs (b)(2) and (b)(3) of this section are inappropriateunless the contractor knew of the violation

(b) Remedies (1) The contracting officer may terminatethe contract

(2) The suspending official may suspend the contractorin accordance with the procedures in Subpart 94

(3) The debarring official may debar the contractor fora period not to exceed 3 years in accordance with the proce-dures in Subpart 94

221505 Solicitation provision and contract clause(a) Except as provided in paragraph (b) of 221503 insert

the provision at 52222-18 Certification Regarding Knowl-edge of Child Labor for Listed End Products in all solicita-tions that are expected to exceed the micro-purchase thresholdand are for the acquisition of end products (regardless of coun-try of origin) of a type identified by country of origin on theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor except solicitations forcommercial items that include the provision at 52212-3 Off-eror Representations and CertificationsmdashCommercial ItemsThe contracting officer must identify in paragraph (b) of theprovision at 52222-18 Certification Regarding Knowledgeof Child Labor for Listed End Products or paragraph (i)(1) ofthe provision at 52212-3 any applicable end products andcountries of origin from the List For solicitations estimatedto equal or exceed $25000 the contracting officer mustexclude from the List in the solicitation end products from anycountries identified at 221503(b) in accordance with thespecified thresholds

(b) Insert the clause at 52222-19 Child LabormdashCoopera-tion with Authorities and Remedies in all solicitations andcontracts for the acquisition of supplies that are expected toexceed the micro-purchase thresholds

SUBPART 252mdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25205

252-1

Subpart 252mdashBuy American ActmdashConstruction Materials

25200 Scope of Subpart(a) This subpart implementsmdash

(1) The Buy American Act (41 USC 10a - 10d)(2) Executive Order 10582 December 17 1954 and(3) Waiver of the component test of the Buy American

Act for acquisitions of commercially available off-the-shelf(COTS) items in accordance with 41 USC 431

(b) It applies to contracts for the construction alteration orrepair of any public building or public work in the UnitedStates

(c) When using funds appropriated or otherwise providedby the American Recovery and Reinvestment Act of 2009(Pub L 111-5) (Recovery Act) for construction seeSubpart 256

25201 PolicyExcept as provided in 25202 use only domestic construc-

tion materials in construction contracts performed in theUnited States

25202 Exceptions(a) When one of the following exceptions applies the con-

tracting officer may acquire foreign construction materialswithout regard to the restrictions of the Buy American Act

(1) Impracticable or inconsistent with public interestThe head of the agency may determine that application of therestrictions of the Buy American Act to a particular construc-tion material would be impracticable or would be inconsistentwith the public interest The public interest exception applieswhen an agency has an agreement with a foreign governmentthat provides a blanket exception to the Buy American Act

(2) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(3) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25204

(b) Determination and findings When a determination ismade for any of the reasons stated in this section that certainforeign construction materials may be used the contractingofficer must list the excepted materials in the contract Theagency must make the findings justifying the exception avail-able for public inspection

(c) Acquisitions under trade agreements For constructioncontracts with an estimated acquisition value of $7804000 ormore see Subpart 254

25203 Preaward determinations(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of the Buy American Act for specifically identified con-struction materials The time for submitting the request isspecified in the solicitation in paragraph (b) of either52225-10 or 52225-12 whichever applies The informationand supporting data that must be included in the request arealso specified in the solicitation in paragraphs (c) and (d) ofeither 52225-9 or 52225-11 whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily availableinformation

25204 Evaluating offers of foreign construction material(a) Offerors proposing to use foreign construction material

other than that listed by the Government in the applicableclause at 52225-9 paragraph (b)(2) or 52225-11paragraph (b)(3) or covered by the WTO GPA or a Free TradeAgreement (paragraph (b)(2) of 52225-11) must provide theinformation required by paragraphs (c) and (d) of the respec-tive clauses

(b) Unless the head of the agency specifies a higher per-centage the contracting officer must add to the offered price6 percent of the cost of any foreign construction material pro-posed for exception from the requirements of the Buy Amer-ican Act based on the unreasonable cost of domesticconstruction materials In the case of a tie the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(2) of52225-9 or paragraph (b)(3) of 52225-11) the contractingofficer must add the excepted materials to the list in the con-tract clause

25205 Postaward determinations(a) If a contractor requests a determination regarding the

inapplicability of the Buy American Act after contract awardthe contractor must explain why it could not request the deter-mination before contract award or why the need for such

FAC 2005ndash43 JULY 2 2010

25206 FEDERAL ACQUISITION REGULATION

252-2

determination otherwise was not reasonably foreseeable Ifthe contracting officer concludes that the contractor shouldhave made the request before contract award the contractingofficer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability of theBuy American Act made after contract award on informationrequired by paragraphs (c) and (d) of the applicable clause at52225-9 or 52225-11 andor other readily availableinformation

(c) If a determination under 25202(a) is made after con-tract award that an exception to the Buy American Actapplies the contracting officer must negotiate adequate con-sideration and modify the contract to allow use of the foreignconstruction material When the basis for the exception is theunreasonable price of a domestic construction material ade-quate consideration is at least the differential established in25202(a) or in accordance with agency procedures

25206 NoncomplianceThe contracting officer mustmdash(a) Review allegations of Buy American Act violations(b) Unless fraud is suspected notify the contractor of the

apparent unauthorized use of foreign construction materialand request a reply to include proposed corrective action and

(c) If the review reveals that a contractor or subcontractorhas used foreign construction material without authorizationtake appropriate action including one or more of thefollowing

(1) Process a determination concerning the inapplica-bility of the Buy American Act in accordance with 25205

(2) Consider requiring the removal and replacement ofthe unauthorized foreign construction material

(3) If removal and replacement of foreign constructionmaterial incorporated in a building or work would be imprac-ticable cause undue delay or otherwise be detrimental to theinterests of the Government the contracting officer maydetermine in writing that the foreign construction materialneed not be removed and replaced A determination to retainforeign construction material does not constitute a determina-tion that an exception to the Buy American Act applies andthis should be stated in the determination Further a determi-nation to retain foreign construction material does not affectthe Governmentrsquos right to suspend or debar a contractor sub-contractor or supplier for violation of the Buy American Actor to exercise other contractual rights and remedies such asreducing the contract price or terminating the contract fordefault

(4) If the noncompliance is sufficiently serious con-sider exercising appropriate contractual remedies such as ter-minating the contract for default Also consider preparing andforwarding a report to the agency suspending or debarringofficial in accordance with Subpart 94 If the noncomplianceappears to be fraudulent refer the matter to other appropriateagency officials such as the officer responsible for criminalinvestigation

SUBPART 254mdashTRADE AGREEMENTS 25404

254-3

25402 General(a)(1) The Trade Agreements Act (19 USC 2501 et seq)

provides the authority for the President to waive the BuyAmerican Act and other discriminatory provisions for eligibleproducts from countries that have signed an internationaltrade agreement with the United States or that meet certainother criteria such as being a least developed country ThePresident has delegated this waiver authority to the US TradeRepresentative In acquisitions covered by the WTO GPAFree Trade Agreements or the Israeli Trade Act the USTRhas waived the Buy American Act and other discriminatoryprovisions for eligible products Offers of eligible productsreceive equal consideration with domestic offers

(2) The contracting officer shall determine the origin ofservices by the country in which the firm providing the ser-vices is established See Subpart 255 for evaluation proce-dures for supply contracts covered by trade agreements

(b) The value of the acquisition is a determining factor inthe applicability of trade agreements Most of these dollarthresholds are subject to revision by the US Trade Represen-tative approximately every 2 years The various thresholds aresummarized as follows

25403 World Trade Organization Government Procurement Agreement and Free Trade Agreements(a) Eligible products from WTO GPA and FTA countries

are entitled to the nondiscriminatory treatment specified in25402(a)(1) The WTO GPA and FTAs specify procurementprocedures designed to ensure fairness (see 25408)

(b) Thresholds (1) To determine whether the acquisitionof products by lease rental or lease-purchase contract(including lease-to-ownership or lease-with-option-to pur-chase) is covered by the WTO GPA or an FTA calculate theestimated acquisition value as follows

(i) If a fixed-term contract of 12 months or less iscontemplated use the total estimated value of the acquisition

(ii) If a fixed-term contract of more than 12 monthsis contemplated use the total estimated value of the acquisi-tion plus the estimated residual value of the leased equipmentat the conclusion of the contemplated term of the contract

(iii) If an indefinite-term contract is contemplateduse the estimated monthly payment multiplied by the totalnumber of months that ordering would be possible under theproposed contract ie the initial ordering period plus anyoptional ordering periods

(iv) If there is any doubt as to the contemplated termof the contract use the estimated monthly payment multipliedby 48

(2) The estimated value includes the value of alloptions

(3) If in any 12-month period recurring or multipleawards for the same type of product or products are antici-pated use the total estimated value of these projected awardsto determine whether the WTO GPA or an FTA applies Donot divide any acquisition with the intent of reducing the esti-mated value of the acquisition below the dollar threshold ofthe WTO GPA or an FTA

(c) Purchase restriction (1) Under the Trade AgreementsAct (19 USC 2512) in acquisitions covered by the WTOGPA acquire only US-made or designated country end prod-ucts or US or designated country services unless offers forsuch end products or services are either not received or areinsufficient to fulfill the requirements This purchase restric-tion does not apply below the WTO GPA threshold for sup-plies and services even if the acquisition is covered by anFTA

(2) This restriction does not apply to purchases of sup-plies by the Department of Defense from a country with whichit has entered into a reciprocal agreement as provided indepartmental regulations

25404 Least developed countriesFor acquisitions covered by the WTO GPA least devel-

oped country end products construction material and ser-vices must be treated as eligible products

Trade Agreement

Supply Contract

(equal to or exceeding)

Service Contract

(equal to or exceeding)

Construction Contract

(equal to or exceeding)

WTO GPA $203000 $203000 $7804000FTAs

Australia FTA 70079 70079 7804000Bahrain FTA 203000 203000 9110318CAFTA-DR (Costa Rica Dominican Republic El Salvador Guatemala Honduras and Nicaragua)

70079 70079 7804000

Chile FTA 70079 70079 7804000Morocco FTA 203000 203000 7804000NAFTAmdashCanada 25000 70079 9110318mdashMexico 70079 70079 9110318Oman FTA 203000 203000 9110318Peru FTA 203000 203000 7804000Singapore FTA 70079 70079 7804000

Israeli Trade Act 50000 mdash mdash

FAC 2005ndash43 JULY 2 2010

25405 FEDERAL ACQUISITION REGULATION

254-4

25405 Caribbean Basin Trade InitiativeUnder the Caribbean Basin Trade Initiative the United

States Trade Representative has determined that for acquisi-tions covered by the WTO GPA Caribbean Basin country endproducts construction material and services must be treatedas eligible products In accordance with Section 201 (a)(3) ofthe Dominican Republic-Central America-United States FreeTrade Implementation Act (Pub L 109-53) when theCAFTA-DR agreement enters into force with respect to acountry that country is no longer designated as a beneficiarycountry for purposes of the Caribbean Basin EconomicRecovery Act and is therefore no longer included in the def-inition of ldquoCaribbean Basin countryrdquo for purposes of the Car-ibbean Basin Trade Initiative

25406 Israeli Trade ActAcquisitions of supplies by most agencies are covered by

the Israeli Trade Act if the estimated value of the acquisitionis $50000 or more but does not exceed the WTO GPA thresh-old for supplies (see 25402(b)) Agencies other than theDepartment of Defense the Department of Energy theDepartment of Transportation the Bureau of Reclamation ofthe Department of the Interior the Federal Housing FinanceBoard and the Office of Thrift Supervision must evaluateoffers of Israeli end products without regard to the restrictionsof the Buy American Act The Israeli Trade Act does not pro-hibit the purchase of other foreign end products

25407 Agreement on Trade in Civil AircraftUnder the authority of Section 303 of the Trade Agree-

ments Act the US Trade Representative has waived the Buy

American Act for civil aircraft and related articles that meetthe substantial transformation test of the Trade AgreementsAct from countries that are parties to the Agreement on Tradein Civil Aircraft Those countries are Austria Belgium Bul-garia Canada Denmark Egypt Finland France GermanyGreece Ireland Italy Japan Luxembourg Macao the Neth-erlands Norway Portugal Romania Spain Sweden Swit-zerland and the United Kingdom

25408 Procedures(a) If the WTO GPA or an FTA applies (see 25401) the

contracting officer mustmdash(1) Comply with the requirements of 5203 Publicizing

and response time(2) Comply with the requirements of 5207 Preparation

and transmittal of synopses(3) Not include technical requirements in solicitations

solely to preclude the acquisition of eligible products(4) Specify in solicitations that offerors must submit

offers in the English language and in US dollars (see52214-34 Submission of Offers in the English Languageand 52214-35 Submission of Offers in US Currency orparagraph (c)(5) of 52215-1 Instruction to OfferorsmdashCom-petitive Acquisitions) and

(5) Provide unsuccessful offerors from WTO GPA orFTA countries notice in accordance with 14409-1 or 15503

(b) See Subpart 255 for evaluation procedures andexamples

SUBPART 255mdashEVALUATING FOREIGN OFFERSmdashSUPPLY CONTRACTS 25503

255-1

Subpart 255mdashEvaluating Foreign OffersmdashSupply Contracts

25501 GeneralThe contracting officermdash(a) Must apply the evaluation procedures of this subpart to

each line item of an offer unless either the offer or the solici-tation specifies evaluation on a group basis (see 25503)

(b) May rely on the offerorrsquos certification of end productorigin when evaluating a foreign offer

(c) Must identify and reject offers of end products that areprohibited in accordance with Subpart 257 and

(d) Must not use the Buy American Act evaluation factorsprescribed in this subpart to provide a preference for one for-eign offer over another foreign offer

25502 Application(a) Unless otherwise specified in agency regulations per-

form the following steps in the order presented(1) Eliminate all offers or offerors that are unacceptable

for reasons other than price eg nonresponsive debarred orsuspended or a prohibited source (see Subpart 257)

(2) Rank the remaining offers by price(3) If the solicitation specifies award on the basis of fac-

tors in addition to cost or price apply the evaluation factorsas specified in this section and use the evaluated cost or pricein determining the offer that represents the best value to theGovernment

(b) For acquisitions covered by the WTO GPA (seeSubpart 254)mdash

(1) Consider only offers of US-made or designatedcountry end products unless no offers of such end productswere received

(2) If the agency gives the same consideration given eli-gible offers to offers of US-made end products that are notdomestic end products award on the low offer Otherwiseevaluate in accordance with agency procedures and

(3) If there were no offers of US-made or designatedcountry end products make a nonavailability determination(see 25103(b)(2)) and award on the low offer (see 25403(c))

(c) For acquisitions not covered by the WTO GPA but sub-ject to the Buy American Act (an FTA or the Israeli Trade Actalso may apply) the following applies

(1) If the low offer is a domestic offer or an eligible offerunder an FTA or the Israeli Trade Act award on that offer

(2) If the low offer is a noneligible offer and there wereno domestic offers (see 25103(b)(3)) award on the low offer

(3) If the low offer is a noneligible offer and there is aneligible offer that is lower than the lowest domestic offeraward on the low offer The Buy American Act provides anevaluation preference only for domestic offers

(4) Otherwise apply the appropriate evaluation factorprovided in 25105 to the low offer

(i) If the evaluated price of the low offer remains lessthan the lowest domestic offer award on the low offer

(ii) If the price of the lowest domestic offer is lessthan the evaluated price of the low offer award on the lowestdomestic offer

(d) Ties (1) If application of an evaluation factor results ina tie between a domestic offer and a foreign offer award onthe domestic offer

(2) If no evaluation preference was applied (ie offersafforded nondiscriminatory treatment under the Buy Ameri-can Act) resolve ties between domestic and foreign offers bya witnessed drawing of lots by an impartial individual

(3) Resolve ties between foreign offers from small busi-ness concerns (under the Buy American Act a small businessoffering a manufactured article that does not meet the defini-tion of ldquodomestic end productrdquo is a foreign offer) or foreignoffers from a small business concern and a large business con-cern in accordance with 14408-6(a)

25503 Group offers(a) If the solicitation or an offer specifies that award can be

made only on a group of line items or on all line items con-tained in the solicitation or offer reject the offermdash

(1) If any part of the award would consist of prohibitedend products (see Subpart 257) or

(2) If the acquisition is covered by the WTO GPA andany part of the offer consists of items restricted in accordancewith 22403(c)

(b) If an offer restricts award to a group of line items or toall line items contained in the offer determine for each lineitem whether to apply an evaluation factor (see 25504-4Example 1)

(1) First evaluate offers that do not specify an awardrestriction on a line item basis in accordance with 25502determining a tentative award pattern by selecting for eachline item the offer with the lowest evaluated price

(2) Evaluate an offer that specifies an award restrictionagainst the offered prices of the tentative award pattern apply-ing the appropriate evaluation factor on a line item basis

(3) Compute the total evaluated price for the tentativeaward pattern and the offer that specified an award restriction

(4) Unless the total evaluated price of the offer thatspecified an award restriction is less than the total evaluatedprice of the tentative award pattern award based on the ten-tative award pattern

(c) If the solicitation specifies that award will be made onlyon a group of line items or all line items contained in the solic-itation determine the category of end products on the basis ofeach line item but determine whether to apply an evaluationfactor on the basis of the group of items (see 25504-4 Exam-ple 2)

(1) If the proposed price of domestic end productsexceeds 50 percent of the total proposed price of the group

FAC 2005ndash09 APRIL 19 2006

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
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  • FAR 1315pdf
  • FAR 1316pdf
Page 9: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

FAC 2005-43 FILING INSTRUCTIONS

NOTE The FAR is segmented by subparts The FAR page numbers reflect FAR subparts For example ldquo415-1rdquo is page one of subpart 415

Remove Pages Insert Pages

415-1 and 415-2 415-1 and 415-2 2215-1 and 2215-2 2215-1 and 2215-2 252-1 and 252-2 252-1 and 252-2 254-3 and 254-4 254-3 and 254-4 255-1 and 255-2 255-1 and 255-2 256-1 and 256-2 256-1 and 256-2 2511-1 and 2511-2 2511-1 and 2511-2 522-121 thru 522-124 522-121 and 522-122 522-39 and 522-40 522-39 and 522-40 522-421 and 522-422 522-421 and 522-422 522-111 and 522-112 522-111 and 522-112

(BLANK PAGE)

SUBPART 415mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS 41502

415-1

Subpart 415mdashAmerican Recovery and Reinvestment ActmdashReporting Requirements

41500 Scope of subpartThis subpart implements section 1512(c) of Division A of

the American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) which requires as a condition ofreceipt of funds quarterly reporting on the use of funds Thesubpart also implements the data elements of the FederalFunding Accountability and Transparency Act of 2006 asamended (Pub L 109-282) Contractors that receive awards(or modifications to existing awards) funded in whole or inpart by the Recovery Act must report information includingbut not limited tomdash

(a) The dollar amount of contractor invoices(b) The supplies delivered and services performed(c) An assessment of the completion status of the work(d) An estimate of the number of jobs created and the num-

ber of jobs retained as a result of the Recovery Act funds(e) Names and total compensation of each of the five most

highly compensated officers for the calendar year in which thecontract is awarded and

(f) Specific information on first-tier subcontractors

41501 Procedures(a) In any contract action funded in whole or in part by the

Recovery Act the contracting officer shall indicate that thecontract action is being made under the Recovery Act andindicate which products or services are funded under theRecovery Act This requirement applies whenever RecoveryAct funds are used regardless of the contract instrument

(b) To maximize transparency of Recovery Act funds thatmust be reported by the contractor the contracting officer

shall structure contract awards to allow for separately trackingRecovery Act funds For example the contracting officer mayconsider awarding dedicated separate contracts when usingRecovery Act funds or establishing contract line item number(CLIN) structures to mitigate commingling of Recovery fundswith other funds

(c) Contracting officers shall ensure that the contractorcomplies with the reporting requirements of 52204-11American Recovery and Reinvestment ActmdashReportingRequirements If the contractor fails to comply with thereporting requirements the contracting officer shall exerciseappropriate contractual remedies

(d) The contracting officer shall make the contractorrsquos fail-ure to comply with the reporting requirements a part of thecontractorrsquos performance information under Subpart 4215

41502 Contract clauseInsert the clause at 52204-11 American Recovery and

Reinvestment ActmdashReporting Requirements in all solicita-tions and contracts funded in whole or in part with RecoveryAct funds except classified solicitations and contracts Thisincludes but is not limited to Governmentwide AcquisitionContracts (GWACs) multi-agency contracts (MACs) Fed-eral Supply Schedule (FSS) contracts or agency indefinite-deliveryindefinite-quantity (IDIQ) contracts that will befunded with Recovery Act funds Contracting officers shallinclude this clause in any existing contract or order that willbe funded with Recovery Act funds Contracting officers maynot use Recovery Act funds on existing contracts and ordersif the clause at 52204-11 is not incorporated This clause isnot required for any existing contracts or task and deliveryorders issued under a contract that contains the originalclause FAR 52204-11 (March 2009)

FAC 2005-43 JULY 2 2010

415-2

This page intentionally left blank

SUBPART 2215mdashPROHIBITION OF ACQUISITION OF PRODUCTS PRODUCED BY FORCED OR INDENTURED CHILD LABOR 221503

2215-1

Subpart 2215mdashProhibition of Acquisition of Products Produced by Forced or Indentured

Child Labor

221500 ScopeThis subpart applies to acquisitions of supplies that exceed

the micro-purchase threshold

221501 DefinitionsAs used in this subpartmdashldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

ldquoList of Products Requiring Contractor Certification as toForced or Indentured Child Laborrdquo means the list publishedby the Department of Labor in accordance with EO 13126 ofJune 12 1999 Prohibition of Acquisition of Products Pro-duced by Forced or Indentured Child Labor The list identifiesproducts by their country of origin that the Departments ofLabor Treasury and State have a reasonable basis to believemight have been mined produced or manufactured by forcedor indentured child labor

221502 PolicyAgencies must take appropriate action to enforce the laws

prohibiting the manufacture or importation of products thathave been mined produced or manufactured wholly or in partby forced or indentured child labor (19 USC 130729 USC 201 et seq and 41 USC 35 et seq) Agenciesshould make every effort to avoid acquiring such products

221503 Procedures for acquiring end products on the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor(a) When issuing a solicitation for supplies expected to

exceed the micro-purchase threshold the contracting officermust check the List of Products Requiring Contractor Certifi-cation as to Forced or Indentured Child Labor (the List)(wwwdolgovilab) (see 221505(a)) Appearance of a prod-uct on the List is not a bar to purchase of any such productmined produced or manufactured in the identified countrybut rather is an alert that there is a reasonable basis to believethat such product may have been mined produced or manu-factured by forced or indentured child labor

(b) The requirements of this subpart that result from theappearance of any end product on the List do not apply to asolicitation or contract if the identified country of origin on theList ismdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more (Subpart 254)

(2) Israel and the anticipated value of the acquisition is$50000 or more (see 25406)

(3) Mexico and the anticipated value of the acquisitionis $70079 or more (see Subpart 254) or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more (see 25402(b))

(c) Except as provided in paragraph (b) of this sectionbefore the contracting officer may make an award for an endproduct (regardless of country of origin) of a type identifiedby country of origin on the List the offeror must certify thatmdash

(1) It will not supply any end product on the List thatwas mined produced or manufactured in a country identifiedon the List for that product as specified in the solicitation bythe contracting officer in the Certification Regarding Knowl-edge of Child Labor for Listed End Products or

(2)(i) It has made a good faith effort to determinewhether forced or indentured child labor was used to mineproduce or manufacture any end product to be furnishedunder the contract that is on the List and was mined producedor manufactured in a country identified on the List for thatproduct and

(ii) On the basis of those efforts the offeror isunaware of any such use of child labor

(d) Absent any actual knowledge that the certification isfalse the contracting officer must rely on the offerorsrsquo certi-fications in making award decisions

(e) Whenever a contracting officer has reason to believethat forced or indentured child labor was used to mine pro-duce or manufacture an end product furnished pursuant to acontract awarded subject to the certification required inparagraph (c) of this section the contracting officer must referthe matter for investigation by the agencyrsquos Inspector Generalthe Attorney General or the Secretary of the Treasury which-ever is determined appropriate in accordance with agency pro-cedures except to the extent that the end product is from thecountry listed in paragraph (b) of this section under a contractexceeding the applicable threshold

(f) Proper certification will not prevent the head of anagency from imposing remedies in accordance withsection 221504(a)(4) if it is later discovered that the contrac-tor has furnished an end product or component that has in factbeen mined produced or manufactured wholly or in partusing forced or indentured child labor

FAC 2005ndash43 JULY 2 2010

221504 FEDERAL ACQUISITION REGULATION

2215-2

221504 Violations and remedies(a) Violations The Government may impose remedies set

forth in paragraph (b) of this section for the following viola-tions (note that the violations in paragraphs (a)(3) and (a)(4)of this section go beyond violations of the requirements relat-ing to certification of end products) (see 221503)

(1) The contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor

(2) The contractor has failed to cooperate as required inaccordance with the clause at 52222-19 Child Labor Coop-eration with Authorities and Remedies with an investigationof the use of forced or indentured child labor by an InspectorGeneral the Attorney General or the Secretary of theTreasury

(3) The contractor uses forced or indentured child laborin its mining production or manufacturing processes

(4) The contractor has furnished an end product or com-ponent mined produced or manufactured wholly or in partby forced or indentured child labor Remedies inparagraphs (b)(2) and (b)(3) of this section are inappropriateunless the contractor knew of the violation

(b) Remedies (1) The contracting officer may terminatethe contract

(2) The suspending official may suspend the contractorin accordance with the procedures in Subpart 94

(3) The debarring official may debar the contractor fora period not to exceed 3 years in accordance with the proce-dures in Subpart 94

221505 Solicitation provision and contract clause(a) Except as provided in paragraph (b) of 221503 insert

the provision at 52222-18 Certification Regarding Knowl-edge of Child Labor for Listed End Products in all solicita-tions that are expected to exceed the micro-purchase thresholdand are for the acquisition of end products (regardless of coun-try of origin) of a type identified by country of origin on theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor except solicitations forcommercial items that include the provision at 52212-3 Off-eror Representations and CertificationsmdashCommercial ItemsThe contracting officer must identify in paragraph (b) of theprovision at 52222-18 Certification Regarding Knowledgeof Child Labor for Listed End Products or paragraph (i)(1) ofthe provision at 52212-3 any applicable end products andcountries of origin from the List For solicitations estimatedto equal or exceed $25000 the contracting officer mustexclude from the List in the solicitation end products from anycountries identified at 221503(b) in accordance with thespecified thresholds

(b) Insert the clause at 52222-19 Child LabormdashCoopera-tion with Authorities and Remedies in all solicitations andcontracts for the acquisition of supplies that are expected toexceed the micro-purchase thresholds

SUBPART 252mdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25205

252-1

Subpart 252mdashBuy American ActmdashConstruction Materials

25200 Scope of Subpart(a) This subpart implementsmdash

(1) The Buy American Act (41 USC 10a - 10d)(2) Executive Order 10582 December 17 1954 and(3) Waiver of the component test of the Buy American

Act for acquisitions of commercially available off-the-shelf(COTS) items in accordance with 41 USC 431

(b) It applies to contracts for the construction alteration orrepair of any public building or public work in the UnitedStates

(c) When using funds appropriated or otherwise providedby the American Recovery and Reinvestment Act of 2009(Pub L 111-5) (Recovery Act) for construction seeSubpart 256

25201 PolicyExcept as provided in 25202 use only domestic construc-

tion materials in construction contracts performed in theUnited States

25202 Exceptions(a) When one of the following exceptions applies the con-

tracting officer may acquire foreign construction materialswithout regard to the restrictions of the Buy American Act

(1) Impracticable or inconsistent with public interestThe head of the agency may determine that application of therestrictions of the Buy American Act to a particular construc-tion material would be impracticable or would be inconsistentwith the public interest The public interest exception applieswhen an agency has an agreement with a foreign governmentthat provides a blanket exception to the Buy American Act

(2) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(3) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25204

(b) Determination and findings When a determination ismade for any of the reasons stated in this section that certainforeign construction materials may be used the contractingofficer must list the excepted materials in the contract Theagency must make the findings justifying the exception avail-able for public inspection

(c) Acquisitions under trade agreements For constructioncontracts with an estimated acquisition value of $7804000 ormore see Subpart 254

25203 Preaward determinations(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of the Buy American Act for specifically identified con-struction materials The time for submitting the request isspecified in the solicitation in paragraph (b) of either52225-10 or 52225-12 whichever applies The informationand supporting data that must be included in the request arealso specified in the solicitation in paragraphs (c) and (d) ofeither 52225-9 or 52225-11 whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily availableinformation

25204 Evaluating offers of foreign construction material(a) Offerors proposing to use foreign construction material

other than that listed by the Government in the applicableclause at 52225-9 paragraph (b)(2) or 52225-11paragraph (b)(3) or covered by the WTO GPA or a Free TradeAgreement (paragraph (b)(2) of 52225-11) must provide theinformation required by paragraphs (c) and (d) of the respec-tive clauses

(b) Unless the head of the agency specifies a higher per-centage the contracting officer must add to the offered price6 percent of the cost of any foreign construction material pro-posed for exception from the requirements of the Buy Amer-ican Act based on the unreasonable cost of domesticconstruction materials In the case of a tie the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(2) of52225-9 or paragraph (b)(3) of 52225-11) the contractingofficer must add the excepted materials to the list in the con-tract clause

25205 Postaward determinations(a) If a contractor requests a determination regarding the

inapplicability of the Buy American Act after contract awardthe contractor must explain why it could not request the deter-mination before contract award or why the need for such

FAC 2005ndash43 JULY 2 2010

25206 FEDERAL ACQUISITION REGULATION

252-2

determination otherwise was not reasonably foreseeable Ifthe contracting officer concludes that the contractor shouldhave made the request before contract award the contractingofficer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability of theBuy American Act made after contract award on informationrequired by paragraphs (c) and (d) of the applicable clause at52225-9 or 52225-11 andor other readily availableinformation

(c) If a determination under 25202(a) is made after con-tract award that an exception to the Buy American Actapplies the contracting officer must negotiate adequate con-sideration and modify the contract to allow use of the foreignconstruction material When the basis for the exception is theunreasonable price of a domestic construction material ade-quate consideration is at least the differential established in25202(a) or in accordance with agency procedures

25206 NoncomplianceThe contracting officer mustmdash(a) Review allegations of Buy American Act violations(b) Unless fraud is suspected notify the contractor of the

apparent unauthorized use of foreign construction materialand request a reply to include proposed corrective action and

(c) If the review reveals that a contractor or subcontractorhas used foreign construction material without authorizationtake appropriate action including one or more of thefollowing

(1) Process a determination concerning the inapplica-bility of the Buy American Act in accordance with 25205

(2) Consider requiring the removal and replacement ofthe unauthorized foreign construction material

(3) If removal and replacement of foreign constructionmaterial incorporated in a building or work would be imprac-ticable cause undue delay or otherwise be detrimental to theinterests of the Government the contracting officer maydetermine in writing that the foreign construction materialneed not be removed and replaced A determination to retainforeign construction material does not constitute a determina-tion that an exception to the Buy American Act applies andthis should be stated in the determination Further a determi-nation to retain foreign construction material does not affectthe Governmentrsquos right to suspend or debar a contractor sub-contractor or supplier for violation of the Buy American Actor to exercise other contractual rights and remedies such asreducing the contract price or terminating the contract fordefault

(4) If the noncompliance is sufficiently serious con-sider exercising appropriate contractual remedies such as ter-minating the contract for default Also consider preparing andforwarding a report to the agency suspending or debarringofficial in accordance with Subpart 94 If the noncomplianceappears to be fraudulent refer the matter to other appropriateagency officials such as the officer responsible for criminalinvestigation

SUBPART 254mdashTRADE AGREEMENTS 25404

254-3

25402 General(a)(1) The Trade Agreements Act (19 USC 2501 et seq)

provides the authority for the President to waive the BuyAmerican Act and other discriminatory provisions for eligibleproducts from countries that have signed an internationaltrade agreement with the United States or that meet certainother criteria such as being a least developed country ThePresident has delegated this waiver authority to the US TradeRepresentative In acquisitions covered by the WTO GPAFree Trade Agreements or the Israeli Trade Act the USTRhas waived the Buy American Act and other discriminatoryprovisions for eligible products Offers of eligible productsreceive equal consideration with domestic offers

(2) The contracting officer shall determine the origin ofservices by the country in which the firm providing the ser-vices is established See Subpart 255 for evaluation proce-dures for supply contracts covered by trade agreements

(b) The value of the acquisition is a determining factor inthe applicability of trade agreements Most of these dollarthresholds are subject to revision by the US Trade Represen-tative approximately every 2 years The various thresholds aresummarized as follows

25403 World Trade Organization Government Procurement Agreement and Free Trade Agreements(a) Eligible products from WTO GPA and FTA countries

are entitled to the nondiscriminatory treatment specified in25402(a)(1) The WTO GPA and FTAs specify procurementprocedures designed to ensure fairness (see 25408)

(b) Thresholds (1) To determine whether the acquisitionof products by lease rental or lease-purchase contract(including lease-to-ownership or lease-with-option-to pur-chase) is covered by the WTO GPA or an FTA calculate theestimated acquisition value as follows

(i) If a fixed-term contract of 12 months or less iscontemplated use the total estimated value of the acquisition

(ii) If a fixed-term contract of more than 12 monthsis contemplated use the total estimated value of the acquisi-tion plus the estimated residual value of the leased equipmentat the conclusion of the contemplated term of the contract

(iii) If an indefinite-term contract is contemplateduse the estimated monthly payment multiplied by the totalnumber of months that ordering would be possible under theproposed contract ie the initial ordering period plus anyoptional ordering periods

(iv) If there is any doubt as to the contemplated termof the contract use the estimated monthly payment multipliedby 48

(2) The estimated value includes the value of alloptions

(3) If in any 12-month period recurring or multipleawards for the same type of product or products are antici-pated use the total estimated value of these projected awardsto determine whether the WTO GPA or an FTA applies Donot divide any acquisition with the intent of reducing the esti-mated value of the acquisition below the dollar threshold ofthe WTO GPA or an FTA

(c) Purchase restriction (1) Under the Trade AgreementsAct (19 USC 2512) in acquisitions covered by the WTOGPA acquire only US-made or designated country end prod-ucts or US or designated country services unless offers forsuch end products or services are either not received or areinsufficient to fulfill the requirements This purchase restric-tion does not apply below the WTO GPA threshold for sup-plies and services even if the acquisition is covered by anFTA

(2) This restriction does not apply to purchases of sup-plies by the Department of Defense from a country with whichit has entered into a reciprocal agreement as provided indepartmental regulations

25404 Least developed countriesFor acquisitions covered by the WTO GPA least devel-

oped country end products construction material and ser-vices must be treated as eligible products

Trade Agreement

Supply Contract

(equal to or exceeding)

Service Contract

(equal to or exceeding)

Construction Contract

(equal to or exceeding)

WTO GPA $203000 $203000 $7804000FTAs

Australia FTA 70079 70079 7804000Bahrain FTA 203000 203000 9110318CAFTA-DR (Costa Rica Dominican Republic El Salvador Guatemala Honduras and Nicaragua)

70079 70079 7804000

Chile FTA 70079 70079 7804000Morocco FTA 203000 203000 7804000NAFTAmdashCanada 25000 70079 9110318mdashMexico 70079 70079 9110318Oman FTA 203000 203000 9110318Peru FTA 203000 203000 7804000Singapore FTA 70079 70079 7804000

Israeli Trade Act 50000 mdash mdash

FAC 2005ndash43 JULY 2 2010

25405 FEDERAL ACQUISITION REGULATION

254-4

25405 Caribbean Basin Trade InitiativeUnder the Caribbean Basin Trade Initiative the United

States Trade Representative has determined that for acquisi-tions covered by the WTO GPA Caribbean Basin country endproducts construction material and services must be treatedas eligible products In accordance with Section 201 (a)(3) ofthe Dominican Republic-Central America-United States FreeTrade Implementation Act (Pub L 109-53) when theCAFTA-DR agreement enters into force with respect to acountry that country is no longer designated as a beneficiarycountry for purposes of the Caribbean Basin EconomicRecovery Act and is therefore no longer included in the def-inition of ldquoCaribbean Basin countryrdquo for purposes of the Car-ibbean Basin Trade Initiative

25406 Israeli Trade ActAcquisitions of supplies by most agencies are covered by

the Israeli Trade Act if the estimated value of the acquisitionis $50000 or more but does not exceed the WTO GPA thresh-old for supplies (see 25402(b)) Agencies other than theDepartment of Defense the Department of Energy theDepartment of Transportation the Bureau of Reclamation ofthe Department of the Interior the Federal Housing FinanceBoard and the Office of Thrift Supervision must evaluateoffers of Israeli end products without regard to the restrictionsof the Buy American Act The Israeli Trade Act does not pro-hibit the purchase of other foreign end products

25407 Agreement on Trade in Civil AircraftUnder the authority of Section 303 of the Trade Agree-

ments Act the US Trade Representative has waived the Buy

American Act for civil aircraft and related articles that meetthe substantial transformation test of the Trade AgreementsAct from countries that are parties to the Agreement on Tradein Civil Aircraft Those countries are Austria Belgium Bul-garia Canada Denmark Egypt Finland France GermanyGreece Ireland Italy Japan Luxembourg Macao the Neth-erlands Norway Portugal Romania Spain Sweden Swit-zerland and the United Kingdom

25408 Procedures(a) If the WTO GPA or an FTA applies (see 25401) the

contracting officer mustmdash(1) Comply with the requirements of 5203 Publicizing

and response time(2) Comply with the requirements of 5207 Preparation

and transmittal of synopses(3) Not include technical requirements in solicitations

solely to preclude the acquisition of eligible products(4) Specify in solicitations that offerors must submit

offers in the English language and in US dollars (see52214-34 Submission of Offers in the English Languageand 52214-35 Submission of Offers in US Currency orparagraph (c)(5) of 52215-1 Instruction to OfferorsmdashCom-petitive Acquisitions) and

(5) Provide unsuccessful offerors from WTO GPA orFTA countries notice in accordance with 14409-1 or 15503

(b) See Subpart 255 for evaluation procedures andexamples

SUBPART 255mdashEVALUATING FOREIGN OFFERSmdashSUPPLY CONTRACTS 25503

255-1

Subpart 255mdashEvaluating Foreign OffersmdashSupply Contracts

25501 GeneralThe contracting officermdash(a) Must apply the evaluation procedures of this subpart to

each line item of an offer unless either the offer or the solici-tation specifies evaluation on a group basis (see 25503)

(b) May rely on the offerorrsquos certification of end productorigin when evaluating a foreign offer

(c) Must identify and reject offers of end products that areprohibited in accordance with Subpart 257 and

(d) Must not use the Buy American Act evaluation factorsprescribed in this subpart to provide a preference for one for-eign offer over another foreign offer

25502 Application(a) Unless otherwise specified in agency regulations per-

form the following steps in the order presented(1) Eliminate all offers or offerors that are unacceptable

for reasons other than price eg nonresponsive debarred orsuspended or a prohibited source (see Subpart 257)

(2) Rank the remaining offers by price(3) If the solicitation specifies award on the basis of fac-

tors in addition to cost or price apply the evaluation factorsas specified in this section and use the evaluated cost or pricein determining the offer that represents the best value to theGovernment

(b) For acquisitions covered by the WTO GPA (seeSubpart 254)mdash

(1) Consider only offers of US-made or designatedcountry end products unless no offers of such end productswere received

(2) If the agency gives the same consideration given eli-gible offers to offers of US-made end products that are notdomestic end products award on the low offer Otherwiseevaluate in accordance with agency procedures and

(3) If there were no offers of US-made or designatedcountry end products make a nonavailability determination(see 25103(b)(2)) and award on the low offer (see 25403(c))

(c) For acquisitions not covered by the WTO GPA but sub-ject to the Buy American Act (an FTA or the Israeli Trade Actalso may apply) the following applies

(1) If the low offer is a domestic offer or an eligible offerunder an FTA or the Israeli Trade Act award on that offer

(2) If the low offer is a noneligible offer and there wereno domestic offers (see 25103(b)(3)) award on the low offer

(3) If the low offer is a noneligible offer and there is aneligible offer that is lower than the lowest domestic offeraward on the low offer The Buy American Act provides anevaluation preference only for domestic offers

(4) Otherwise apply the appropriate evaluation factorprovided in 25105 to the low offer

(i) If the evaluated price of the low offer remains lessthan the lowest domestic offer award on the low offer

(ii) If the price of the lowest domestic offer is lessthan the evaluated price of the low offer award on the lowestdomestic offer

(d) Ties (1) If application of an evaluation factor results ina tie between a domestic offer and a foreign offer award onthe domestic offer

(2) If no evaluation preference was applied (ie offersafforded nondiscriminatory treatment under the Buy Ameri-can Act) resolve ties between domestic and foreign offers bya witnessed drawing of lots by an impartial individual

(3) Resolve ties between foreign offers from small busi-ness concerns (under the Buy American Act a small businessoffering a manufactured article that does not meet the defini-tion of ldquodomestic end productrdquo is a foreign offer) or foreignoffers from a small business concern and a large business con-cern in accordance with 14408-6(a)

25503 Group offers(a) If the solicitation or an offer specifies that award can be

made only on a group of line items or on all line items con-tained in the solicitation or offer reject the offermdash

(1) If any part of the award would consist of prohibitedend products (see Subpart 257) or

(2) If the acquisition is covered by the WTO GPA andany part of the offer consists of items restricted in accordancewith 22403(c)

(b) If an offer restricts award to a group of line items or toall line items contained in the offer determine for each lineitem whether to apply an evaluation factor (see 25504-4Example 1)

(1) First evaluate offers that do not specify an awardrestriction on a line item basis in accordance with 25502determining a tentative award pattern by selecting for eachline item the offer with the lowest evaluated price

(2) Evaluate an offer that specifies an award restrictionagainst the offered prices of the tentative award pattern apply-ing the appropriate evaluation factor on a line item basis

(3) Compute the total evaluated price for the tentativeaward pattern and the offer that specified an award restriction

(4) Unless the total evaluated price of the offer thatspecified an award restriction is less than the total evaluatedprice of the tentative award pattern award based on the ten-tative award pattern

(c) If the solicitation specifies that award will be made onlyon a group of line items or all line items contained in the solic-itation determine the category of end products on the basis ofeach line item but determine whether to apply an evaluationfactor on the basis of the group of items (see 25504-4 Exam-ple 2)

(1) If the proposed price of domestic end productsexceeds 50 percent of the total proposed price of the group

FAC 2005ndash09 APRIL 19 2006

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 10: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

(BLANK PAGE)

SUBPART 415mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS 41502

415-1

Subpart 415mdashAmerican Recovery and Reinvestment ActmdashReporting Requirements

41500 Scope of subpartThis subpart implements section 1512(c) of Division A of

the American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) which requires as a condition ofreceipt of funds quarterly reporting on the use of funds Thesubpart also implements the data elements of the FederalFunding Accountability and Transparency Act of 2006 asamended (Pub L 109-282) Contractors that receive awards(or modifications to existing awards) funded in whole or inpart by the Recovery Act must report information includingbut not limited tomdash

(a) The dollar amount of contractor invoices(b) The supplies delivered and services performed(c) An assessment of the completion status of the work(d) An estimate of the number of jobs created and the num-

ber of jobs retained as a result of the Recovery Act funds(e) Names and total compensation of each of the five most

highly compensated officers for the calendar year in which thecontract is awarded and

(f) Specific information on first-tier subcontractors

41501 Procedures(a) In any contract action funded in whole or in part by the

Recovery Act the contracting officer shall indicate that thecontract action is being made under the Recovery Act andindicate which products or services are funded under theRecovery Act This requirement applies whenever RecoveryAct funds are used regardless of the contract instrument

(b) To maximize transparency of Recovery Act funds thatmust be reported by the contractor the contracting officer

shall structure contract awards to allow for separately trackingRecovery Act funds For example the contracting officer mayconsider awarding dedicated separate contracts when usingRecovery Act funds or establishing contract line item number(CLIN) structures to mitigate commingling of Recovery fundswith other funds

(c) Contracting officers shall ensure that the contractorcomplies with the reporting requirements of 52204-11American Recovery and Reinvestment ActmdashReportingRequirements If the contractor fails to comply with thereporting requirements the contracting officer shall exerciseappropriate contractual remedies

(d) The contracting officer shall make the contractorrsquos fail-ure to comply with the reporting requirements a part of thecontractorrsquos performance information under Subpart 4215

41502 Contract clauseInsert the clause at 52204-11 American Recovery and

Reinvestment ActmdashReporting Requirements in all solicita-tions and contracts funded in whole or in part with RecoveryAct funds except classified solicitations and contracts Thisincludes but is not limited to Governmentwide AcquisitionContracts (GWACs) multi-agency contracts (MACs) Fed-eral Supply Schedule (FSS) contracts or agency indefinite-deliveryindefinite-quantity (IDIQ) contracts that will befunded with Recovery Act funds Contracting officers shallinclude this clause in any existing contract or order that willbe funded with Recovery Act funds Contracting officers maynot use Recovery Act funds on existing contracts and ordersif the clause at 52204-11 is not incorporated This clause isnot required for any existing contracts or task and deliveryorders issued under a contract that contains the originalclause FAR 52204-11 (March 2009)

FAC 2005-43 JULY 2 2010

415-2

This page intentionally left blank

SUBPART 2215mdashPROHIBITION OF ACQUISITION OF PRODUCTS PRODUCED BY FORCED OR INDENTURED CHILD LABOR 221503

2215-1

Subpart 2215mdashProhibition of Acquisition of Products Produced by Forced or Indentured

Child Labor

221500 ScopeThis subpart applies to acquisitions of supplies that exceed

the micro-purchase threshold

221501 DefinitionsAs used in this subpartmdashldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

ldquoList of Products Requiring Contractor Certification as toForced or Indentured Child Laborrdquo means the list publishedby the Department of Labor in accordance with EO 13126 ofJune 12 1999 Prohibition of Acquisition of Products Pro-duced by Forced or Indentured Child Labor The list identifiesproducts by their country of origin that the Departments ofLabor Treasury and State have a reasonable basis to believemight have been mined produced or manufactured by forcedor indentured child labor

221502 PolicyAgencies must take appropriate action to enforce the laws

prohibiting the manufacture or importation of products thathave been mined produced or manufactured wholly or in partby forced or indentured child labor (19 USC 130729 USC 201 et seq and 41 USC 35 et seq) Agenciesshould make every effort to avoid acquiring such products

221503 Procedures for acquiring end products on the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor(a) When issuing a solicitation for supplies expected to

exceed the micro-purchase threshold the contracting officermust check the List of Products Requiring Contractor Certifi-cation as to Forced or Indentured Child Labor (the List)(wwwdolgovilab) (see 221505(a)) Appearance of a prod-uct on the List is not a bar to purchase of any such productmined produced or manufactured in the identified countrybut rather is an alert that there is a reasonable basis to believethat such product may have been mined produced or manu-factured by forced or indentured child labor

(b) The requirements of this subpart that result from theappearance of any end product on the List do not apply to asolicitation or contract if the identified country of origin on theList ismdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more (Subpart 254)

(2) Israel and the anticipated value of the acquisition is$50000 or more (see 25406)

(3) Mexico and the anticipated value of the acquisitionis $70079 or more (see Subpart 254) or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more (see 25402(b))

(c) Except as provided in paragraph (b) of this sectionbefore the contracting officer may make an award for an endproduct (regardless of country of origin) of a type identifiedby country of origin on the List the offeror must certify thatmdash

(1) It will not supply any end product on the List thatwas mined produced or manufactured in a country identifiedon the List for that product as specified in the solicitation bythe contracting officer in the Certification Regarding Knowl-edge of Child Labor for Listed End Products or

(2)(i) It has made a good faith effort to determinewhether forced or indentured child labor was used to mineproduce or manufacture any end product to be furnishedunder the contract that is on the List and was mined producedor manufactured in a country identified on the List for thatproduct and

(ii) On the basis of those efforts the offeror isunaware of any such use of child labor

(d) Absent any actual knowledge that the certification isfalse the contracting officer must rely on the offerorsrsquo certi-fications in making award decisions

(e) Whenever a contracting officer has reason to believethat forced or indentured child labor was used to mine pro-duce or manufacture an end product furnished pursuant to acontract awarded subject to the certification required inparagraph (c) of this section the contracting officer must referthe matter for investigation by the agencyrsquos Inspector Generalthe Attorney General or the Secretary of the Treasury which-ever is determined appropriate in accordance with agency pro-cedures except to the extent that the end product is from thecountry listed in paragraph (b) of this section under a contractexceeding the applicable threshold

(f) Proper certification will not prevent the head of anagency from imposing remedies in accordance withsection 221504(a)(4) if it is later discovered that the contrac-tor has furnished an end product or component that has in factbeen mined produced or manufactured wholly or in partusing forced or indentured child labor

FAC 2005ndash43 JULY 2 2010

221504 FEDERAL ACQUISITION REGULATION

2215-2

221504 Violations and remedies(a) Violations The Government may impose remedies set

forth in paragraph (b) of this section for the following viola-tions (note that the violations in paragraphs (a)(3) and (a)(4)of this section go beyond violations of the requirements relat-ing to certification of end products) (see 221503)

(1) The contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor

(2) The contractor has failed to cooperate as required inaccordance with the clause at 52222-19 Child Labor Coop-eration with Authorities and Remedies with an investigationof the use of forced or indentured child labor by an InspectorGeneral the Attorney General or the Secretary of theTreasury

(3) The contractor uses forced or indentured child laborin its mining production or manufacturing processes

(4) The contractor has furnished an end product or com-ponent mined produced or manufactured wholly or in partby forced or indentured child labor Remedies inparagraphs (b)(2) and (b)(3) of this section are inappropriateunless the contractor knew of the violation

(b) Remedies (1) The contracting officer may terminatethe contract

(2) The suspending official may suspend the contractorin accordance with the procedures in Subpart 94

(3) The debarring official may debar the contractor fora period not to exceed 3 years in accordance with the proce-dures in Subpart 94

221505 Solicitation provision and contract clause(a) Except as provided in paragraph (b) of 221503 insert

the provision at 52222-18 Certification Regarding Knowl-edge of Child Labor for Listed End Products in all solicita-tions that are expected to exceed the micro-purchase thresholdand are for the acquisition of end products (regardless of coun-try of origin) of a type identified by country of origin on theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor except solicitations forcommercial items that include the provision at 52212-3 Off-eror Representations and CertificationsmdashCommercial ItemsThe contracting officer must identify in paragraph (b) of theprovision at 52222-18 Certification Regarding Knowledgeof Child Labor for Listed End Products or paragraph (i)(1) ofthe provision at 52212-3 any applicable end products andcountries of origin from the List For solicitations estimatedto equal or exceed $25000 the contracting officer mustexclude from the List in the solicitation end products from anycountries identified at 221503(b) in accordance with thespecified thresholds

(b) Insert the clause at 52222-19 Child LabormdashCoopera-tion with Authorities and Remedies in all solicitations andcontracts for the acquisition of supplies that are expected toexceed the micro-purchase thresholds

SUBPART 252mdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25205

252-1

Subpart 252mdashBuy American ActmdashConstruction Materials

25200 Scope of Subpart(a) This subpart implementsmdash

(1) The Buy American Act (41 USC 10a - 10d)(2) Executive Order 10582 December 17 1954 and(3) Waiver of the component test of the Buy American

Act for acquisitions of commercially available off-the-shelf(COTS) items in accordance with 41 USC 431

(b) It applies to contracts for the construction alteration orrepair of any public building or public work in the UnitedStates

(c) When using funds appropriated or otherwise providedby the American Recovery and Reinvestment Act of 2009(Pub L 111-5) (Recovery Act) for construction seeSubpart 256

25201 PolicyExcept as provided in 25202 use only domestic construc-

tion materials in construction contracts performed in theUnited States

25202 Exceptions(a) When one of the following exceptions applies the con-

tracting officer may acquire foreign construction materialswithout regard to the restrictions of the Buy American Act

(1) Impracticable or inconsistent with public interestThe head of the agency may determine that application of therestrictions of the Buy American Act to a particular construc-tion material would be impracticable or would be inconsistentwith the public interest The public interest exception applieswhen an agency has an agreement with a foreign governmentthat provides a blanket exception to the Buy American Act

(2) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(3) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25204

(b) Determination and findings When a determination ismade for any of the reasons stated in this section that certainforeign construction materials may be used the contractingofficer must list the excepted materials in the contract Theagency must make the findings justifying the exception avail-able for public inspection

(c) Acquisitions under trade agreements For constructioncontracts with an estimated acquisition value of $7804000 ormore see Subpart 254

25203 Preaward determinations(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of the Buy American Act for specifically identified con-struction materials The time for submitting the request isspecified in the solicitation in paragraph (b) of either52225-10 or 52225-12 whichever applies The informationand supporting data that must be included in the request arealso specified in the solicitation in paragraphs (c) and (d) ofeither 52225-9 or 52225-11 whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily availableinformation

25204 Evaluating offers of foreign construction material(a) Offerors proposing to use foreign construction material

other than that listed by the Government in the applicableclause at 52225-9 paragraph (b)(2) or 52225-11paragraph (b)(3) or covered by the WTO GPA or a Free TradeAgreement (paragraph (b)(2) of 52225-11) must provide theinformation required by paragraphs (c) and (d) of the respec-tive clauses

(b) Unless the head of the agency specifies a higher per-centage the contracting officer must add to the offered price6 percent of the cost of any foreign construction material pro-posed for exception from the requirements of the Buy Amer-ican Act based on the unreasonable cost of domesticconstruction materials In the case of a tie the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(2) of52225-9 or paragraph (b)(3) of 52225-11) the contractingofficer must add the excepted materials to the list in the con-tract clause

25205 Postaward determinations(a) If a contractor requests a determination regarding the

inapplicability of the Buy American Act after contract awardthe contractor must explain why it could not request the deter-mination before contract award or why the need for such

FAC 2005ndash43 JULY 2 2010

25206 FEDERAL ACQUISITION REGULATION

252-2

determination otherwise was not reasonably foreseeable Ifthe contracting officer concludes that the contractor shouldhave made the request before contract award the contractingofficer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability of theBuy American Act made after contract award on informationrequired by paragraphs (c) and (d) of the applicable clause at52225-9 or 52225-11 andor other readily availableinformation

(c) If a determination under 25202(a) is made after con-tract award that an exception to the Buy American Actapplies the contracting officer must negotiate adequate con-sideration and modify the contract to allow use of the foreignconstruction material When the basis for the exception is theunreasonable price of a domestic construction material ade-quate consideration is at least the differential established in25202(a) or in accordance with agency procedures

25206 NoncomplianceThe contracting officer mustmdash(a) Review allegations of Buy American Act violations(b) Unless fraud is suspected notify the contractor of the

apparent unauthorized use of foreign construction materialand request a reply to include proposed corrective action and

(c) If the review reveals that a contractor or subcontractorhas used foreign construction material without authorizationtake appropriate action including one or more of thefollowing

(1) Process a determination concerning the inapplica-bility of the Buy American Act in accordance with 25205

(2) Consider requiring the removal and replacement ofthe unauthorized foreign construction material

(3) If removal and replacement of foreign constructionmaterial incorporated in a building or work would be imprac-ticable cause undue delay or otherwise be detrimental to theinterests of the Government the contracting officer maydetermine in writing that the foreign construction materialneed not be removed and replaced A determination to retainforeign construction material does not constitute a determina-tion that an exception to the Buy American Act applies andthis should be stated in the determination Further a determi-nation to retain foreign construction material does not affectthe Governmentrsquos right to suspend or debar a contractor sub-contractor or supplier for violation of the Buy American Actor to exercise other contractual rights and remedies such asreducing the contract price or terminating the contract fordefault

(4) If the noncompliance is sufficiently serious con-sider exercising appropriate contractual remedies such as ter-minating the contract for default Also consider preparing andforwarding a report to the agency suspending or debarringofficial in accordance with Subpart 94 If the noncomplianceappears to be fraudulent refer the matter to other appropriateagency officials such as the officer responsible for criminalinvestigation

SUBPART 254mdashTRADE AGREEMENTS 25404

254-3

25402 General(a)(1) The Trade Agreements Act (19 USC 2501 et seq)

provides the authority for the President to waive the BuyAmerican Act and other discriminatory provisions for eligibleproducts from countries that have signed an internationaltrade agreement with the United States or that meet certainother criteria such as being a least developed country ThePresident has delegated this waiver authority to the US TradeRepresentative In acquisitions covered by the WTO GPAFree Trade Agreements or the Israeli Trade Act the USTRhas waived the Buy American Act and other discriminatoryprovisions for eligible products Offers of eligible productsreceive equal consideration with domestic offers

(2) The contracting officer shall determine the origin ofservices by the country in which the firm providing the ser-vices is established See Subpart 255 for evaluation proce-dures for supply contracts covered by trade agreements

(b) The value of the acquisition is a determining factor inthe applicability of trade agreements Most of these dollarthresholds are subject to revision by the US Trade Represen-tative approximately every 2 years The various thresholds aresummarized as follows

25403 World Trade Organization Government Procurement Agreement and Free Trade Agreements(a) Eligible products from WTO GPA and FTA countries

are entitled to the nondiscriminatory treatment specified in25402(a)(1) The WTO GPA and FTAs specify procurementprocedures designed to ensure fairness (see 25408)

(b) Thresholds (1) To determine whether the acquisitionof products by lease rental or lease-purchase contract(including lease-to-ownership or lease-with-option-to pur-chase) is covered by the WTO GPA or an FTA calculate theestimated acquisition value as follows

(i) If a fixed-term contract of 12 months or less iscontemplated use the total estimated value of the acquisition

(ii) If a fixed-term contract of more than 12 monthsis contemplated use the total estimated value of the acquisi-tion plus the estimated residual value of the leased equipmentat the conclusion of the contemplated term of the contract

(iii) If an indefinite-term contract is contemplateduse the estimated monthly payment multiplied by the totalnumber of months that ordering would be possible under theproposed contract ie the initial ordering period plus anyoptional ordering periods

(iv) If there is any doubt as to the contemplated termof the contract use the estimated monthly payment multipliedby 48

(2) The estimated value includes the value of alloptions

(3) If in any 12-month period recurring or multipleawards for the same type of product or products are antici-pated use the total estimated value of these projected awardsto determine whether the WTO GPA or an FTA applies Donot divide any acquisition with the intent of reducing the esti-mated value of the acquisition below the dollar threshold ofthe WTO GPA or an FTA

(c) Purchase restriction (1) Under the Trade AgreementsAct (19 USC 2512) in acquisitions covered by the WTOGPA acquire only US-made or designated country end prod-ucts or US or designated country services unless offers forsuch end products or services are either not received or areinsufficient to fulfill the requirements This purchase restric-tion does not apply below the WTO GPA threshold for sup-plies and services even if the acquisition is covered by anFTA

(2) This restriction does not apply to purchases of sup-plies by the Department of Defense from a country with whichit has entered into a reciprocal agreement as provided indepartmental regulations

25404 Least developed countriesFor acquisitions covered by the WTO GPA least devel-

oped country end products construction material and ser-vices must be treated as eligible products

Trade Agreement

Supply Contract

(equal to or exceeding)

Service Contract

(equal to or exceeding)

Construction Contract

(equal to or exceeding)

WTO GPA $203000 $203000 $7804000FTAs

Australia FTA 70079 70079 7804000Bahrain FTA 203000 203000 9110318CAFTA-DR (Costa Rica Dominican Republic El Salvador Guatemala Honduras and Nicaragua)

70079 70079 7804000

Chile FTA 70079 70079 7804000Morocco FTA 203000 203000 7804000NAFTAmdashCanada 25000 70079 9110318mdashMexico 70079 70079 9110318Oman FTA 203000 203000 9110318Peru FTA 203000 203000 7804000Singapore FTA 70079 70079 7804000

Israeli Trade Act 50000 mdash mdash

FAC 2005ndash43 JULY 2 2010

25405 FEDERAL ACQUISITION REGULATION

254-4

25405 Caribbean Basin Trade InitiativeUnder the Caribbean Basin Trade Initiative the United

States Trade Representative has determined that for acquisi-tions covered by the WTO GPA Caribbean Basin country endproducts construction material and services must be treatedas eligible products In accordance with Section 201 (a)(3) ofthe Dominican Republic-Central America-United States FreeTrade Implementation Act (Pub L 109-53) when theCAFTA-DR agreement enters into force with respect to acountry that country is no longer designated as a beneficiarycountry for purposes of the Caribbean Basin EconomicRecovery Act and is therefore no longer included in the def-inition of ldquoCaribbean Basin countryrdquo for purposes of the Car-ibbean Basin Trade Initiative

25406 Israeli Trade ActAcquisitions of supplies by most agencies are covered by

the Israeli Trade Act if the estimated value of the acquisitionis $50000 or more but does not exceed the WTO GPA thresh-old for supplies (see 25402(b)) Agencies other than theDepartment of Defense the Department of Energy theDepartment of Transportation the Bureau of Reclamation ofthe Department of the Interior the Federal Housing FinanceBoard and the Office of Thrift Supervision must evaluateoffers of Israeli end products without regard to the restrictionsof the Buy American Act The Israeli Trade Act does not pro-hibit the purchase of other foreign end products

25407 Agreement on Trade in Civil AircraftUnder the authority of Section 303 of the Trade Agree-

ments Act the US Trade Representative has waived the Buy

American Act for civil aircraft and related articles that meetthe substantial transformation test of the Trade AgreementsAct from countries that are parties to the Agreement on Tradein Civil Aircraft Those countries are Austria Belgium Bul-garia Canada Denmark Egypt Finland France GermanyGreece Ireland Italy Japan Luxembourg Macao the Neth-erlands Norway Portugal Romania Spain Sweden Swit-zerland and the United Kingdom

25408 Procedures(a) If the WTO GPA or an FTA applies (see 25401) the

contracting officer mustmdash(1) Comply with the requirements of 5203 Publicizing

and response time(2) Comply with the requirements of 5207 Preparation

and transmittal of synopses(3) Not include technical requirements in solicitations

solely to preclude the acquisition of eligible products(4) Specify in solicitations that offerors must submit

offers in the English language and in US dollars (see52214-34 Submission of Offers in the English Languageand 52214-35 Submission of Offers in US Currency orparagraph (c)(5) of 52215-1 Instruction to OfferorsmdashCom-petitive Acquisitions) and

(5) Provide unsuccessful offerors from WTO GPA orFTA countries notice in accordance with 14409-1 or 15503

(b) See Subpart 255 for evaluation procedures andexamples

SUBPART 255mdashEVALUATING FOREIGN OFFERSmdashSUPPLY CONTRACTS 25503

255-1

Subpart 255mdashEvaluating Foreign OffersmdashSupply Contracts

25501 GeneralThe contracting officermdash(a) Must apply the evaluation procedures of this subpart to

each line item of an offer unless either the offer or the solici-tation specifies evaluation on a group basis (see 25503)

(b) May rely on the offerorrsquos certification of end productorigin when evaluating a foreign offer

(c) Must identify and reject offers of end products that areprohibited in accordance with Subpart 257 and

(d) Must not use the Buy American Act evaluation factorsprescribed in this subpart to provide a preference for one for-eign offer over another foreign offer

25502 Application(a) Unless otherwise specified in agency regulations per-

form the following steps in the order presented(1) Eliminate all offers or offerors that are unacceptable

for reasons other than price eg nonresponsive debarred orsuspended or a prohibited source (see Subpart 257)

(2) Rank the remaining offers by price(3) If the solicitation specifies award on the basis of fac-

tors in addition to cost or price apply the evaluation factorsas specified in this section and use the evaluated cost or pricein determining the offer that represents the best value to theGovernment

(b) For acquisitions covered by the WTO GPA (seeSubpart 254)mdash

(1) Consider only offers of US-made or designatedcountry end products unless no offers of such end productswere received

(2) If the agency gives the same consideration given eli-gible offers to offers of US-made end products that are notdomestic end products award on the low offer Otherwiseevaluate in accordance with agency procedures and

(3) If there were no offers of US-made or designatedcountry end products make a nonavailability determination(see 25103(b)(2)) and award on the low offer (see 25403(c))

(c) For acquisitions not covered by the WTO GPA but sub-ject to the Buy American Act (an FTA or the Israeli Trade Actalso may apply) the following applies

(1) If the low offer is a domestic offer or an eligible offerunder an FTA or the Israeli Trade Act award on that offer

(2) If the low offer is a noneligible offer and there wereno domestic offers (see 25103(b)(3)) award on the low offer

(3) If the low offer is a noneligible offer and there is aneligible offer that is lower than the lowest domestic offeraward on the low offer The Buy American Act provides anevaluation preference only for domestic offers

(4) Otherwise apply the appropriate evaluation factorprovided in 25105 to the low offer

(i) If the evaluated price of the low offer remains lessthan the lowest domestic offer award on the low offer

(ii) If the price of the lowest domestic offer is lessthan the evaluated price of the low offer award on the lowestdomestic offer

(d) Ties (1) If application of an evaluation factor results ina tie between a domestic offer and a foreign offer award onthe domestic offer

(2) If no evaluation preference was applied (ie offersafforded nondiscriminatory treatment under the Buy Ameri-can Act) resolve ties between domestic and foreign offers bya witnessed drawing of lots by an impartial individual

(3) Resolve ties between foreign offers from small busi-ness concerns (under the Buy American Act a small businessoffering a manufactured article that does not meet the defini-tion of ldquodomestic end productrdquo is a foreign offer) or foreignoffers from a small business concern and a large business con-cern in accordance with 14408-6(a)

25503 Group offers(a) If the solicitation or an offer specifies that award can be

made only on a group of line items or on all line items con-tained in the solicitation or offer reject the offermdash

(1) If any part of the award would consist of prohibitedend products (see Subpart 257) or

(2) If the acquisition is covered by the WTO GPA andany part of the offer consists of items restricted in accordancewith 22403(c)

(b) If an offer restricts award to a group of line items or toall line items contained in the offer determine for each lineitem whether to apply an evaluation factor (see 25504-4Example 1)

(1) First evaluate offers that do not specify an awardrestriction on a line item basis in accordance with 25502determining a tentative award pattern by selecting for eachline item the offer with the lowest evaluated price

(2) Evaluate an offer that specifies an award restrictionagainst the offered prices of the tentative award pattern apply-ing the appropriate evaluation factor on a line item basis

(3) Compute the total evaluated price for the tentativeaward pattern and the offer that specified an award restriction

(4) Unless the total evaluated price of the offer thatspecified an award restriction is less than the total evaluatedprice of the tentative award pattern award based on the ten-tative award pattern

(c) If the solicitation specifies that award will be made onlyon a group of line items or all line items contained in the solic-itation determine the category of end products on the basis ofeach line item but determine whether to apply an evaluationfactor on the basis of the group of items (see 25504-4 Exam-ple 2)

(1) If the proposed price of domestic end productsexceeds 50 percent of the total proposed price of the group

FAC 2005ndash09 APRIL 19 2006

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
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Page 11: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

SUBPART 415mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS 41502

415-1

Subpart 415mdashAmerican Recovery and Reinvestment ActmdashReporting Requirements

41500 Scope of subpartThis subpart implements section 1512(c) of Division A of

the American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) which requires as a condition ofreceipt of funds quarterly reporting on the use of funds Thesubpart also implements the data elements of the FederalFunding Accountability and Transparency Act of 2006 asamended (Pub L 109-282) Contractors that receive awards(or modifications to existing awards) funded in whole or inpart by the Recovery Act must report information includingbut not limited tomdash

(a) The dollar amount of contractor invoices(b) The supplies delivered and services performed(c) An assessment of the completion status of the work(d) An estimate of the number of jobs created and the num-

ber of jobs retained as a result of the Recovery Act funds(e) Names and total compensation of each of the five most

highly compensated officers for the calendar year in which thecontract is awarded and

(f) Specific information on first-tier subcontractors

41501 Procedures(a) In any contract action funded in whole or in part by the

Recovery Act the contracting officer shall indicate that thecontract action is being made under the Recovery Act andindicate which products or services are funded under theRecovery Act This requirement applies whenever RecoveryAct funds are used regardless of the contract instrument

(b) To maximize transparency of Recovery Act funds thatmust be reported by the contractor the contracting officer

shall structure contract awards to allow for separately trackingRecovery Act funds For example the contracting officer mayconsider awarding dedicated separate contracts when usingRecovery Act funds or establishing contract line item number(CLIN) structures to mitigate commingling of Recovery fundswith other funds

(c) Contracting officers shall ensure that the contractorcomplies with the reporting requirements of 52204-11American Recovery and Reinvestment ActmdashReportingRequirements If the contractor fails to comply with thereporting requirements the contracting officer shall exerciseappropriate contractual remedies

(d) The contracting officer shall make the contractorrsquos fail-ure to comply with the reporting requirements a part of thecontractorrsquos performance information under Subpart 4215

41502 Contract clauseInsert the clause at 52204-11 American Recovery and

Reinvestment ActmdashReporting Requirements in all solicita-tions and contracts funded in whole or in part with RecoveryAct funds except classified solicitations and contracts Thisincludes but is not limited to Governmentwide AcquisitionContracts (GWACs) multi-agency contracts (MACs) Fed-eral Supply Schedule (FSS) contracts or agency indefinite-deliveryindefinite-quantity (IDIQ) contracts that will befunded with Recovery Act funds Contracting officers shallinclude this clause in any existing contract or order that willbe funded with Recovery Act funds Contracting officers maynot use Recovery Act funds on existing contracts and ordersif the clause at 52204-11 is not incorporated This clause isnot required for any existing contracts or task and deliveryorders issued under a contract that contains the originalclause FAR 52204-11 (March 2009)

FAC 2005-43 JULY 2 2010

415-2

This page intentionally left blank

SUBPART 2215mdashPROHIBITION OF ACQUISITION OF PRODUCTS PRODUCED BY FORCED OR INDENTURED CHILD LABOR 221503

2215-1

Subpart 2215mdashProhibition of Acquisition of Products Produced by Forced or Indentured

Child Labor

221500 ScopeThis subpart applies to acquisitions of supplies that exceed

the micro-purchase threshold

221501 DefinitionsAs used in this subpartmdashldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

ldquoList of Products Requiring Contractor Certification as toForced or Indentured Child Laborrdquo means the list publishedby the Department of Labor in accordance with EO 13126 ofJune 12 1999 Prohibition of Acquisition of Products Pro-duced by Forced or Indentured Child Labor The list identifiesproducts by their country of origin that the Departments ofLabor Treasury and State have a reasonable basis to believemight have been mined produced or manufactured by forcedor indentured child labor

221502 PolicyAgencies must take appropriate action to enforce the laws

prohibiting the manufacture or importation of products thathave been mined produced or manufactured wholly or in partby forced or indentured child labor (19 USC 130729 USC 201 et seq and 41 USC 35 et seq) Agenciesshould make every effort to avoid acquiring such products

221503 Procedures for acquiring end products on the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor(a) When issuing a solicitation for supplies expected to

exceed the micro-purchase threshold the contracting officermust check the List of Products Requiring Contractor Certifi-cation as to Forced or Indentured Child Labor (the List)(wwwdolgovilab) (see 221505(a)) Appearance of a prod-uct on the List is not a bar to purchase of any such productmined produced or manufactured in the identified countrybut rather is an alert that there is a reasonable basis to believethat such product may have been mined produced or manu-factured by forced or indentured child labor

(b) The requirements of this subpart that result from theappearance of any end product on the List do not apply to asolicitation or contract if the identified country of origin on theList ismdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more (Subpart 254)

(2) Israel and the anticipated value of the acquisition is$50000 or more (see 25406)

(3) Mexico and the anticipated value of the acquisitionis $70079 or more (see Subpart 254) or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more (see 25402(b))

(c) Except as provided in paragraph (b) of this sectionbefore the contracting officer may make an award for an endproduct (regardless of country of origin) of a type identifiedby country of origin on the List the offeror must certify thatmdash

(1) It will not supply any end product on the List thatwas mined produced or manufactured in a country identifiedon the List for that product as specified in the solicitation bythe contracting officer in the Certification Regarding Knowl-edge of Child Labor for Listed End Products or

(2)(i) It has made a good faith effort to determinewhether forced or indentured child labor was used to mineproduce or manufacture any end product to be furnishedunder the contract that is on the List and was mined producedor manufactured in a country identified on the List for thatproduct and

(ii) On the basis of those efforts the offeror isunaware of any such use of child labor

(d) Absent any actual knowledge that the certification isfalse the contracting officer must rely on the offerorsrsquo certi-fications in making award decisions

(e) Whenever a contracting officer has reason to believethat forced or indentured child labor was used to mine pro-duce or manufacture an end product furnished pursuant to acontract awarded subject to the certification required inparagraph (c) of this section the contracting officer must referthe matter for investigation by the agencyrsquos Inspector Generalthe Attorney General or the Secretary of the Treasury which-ever is determined appropriate in accordance with agency pro-cedures except to the extent that the end product is from thecountry listed in paragraph (b) of this section under a contractexceeding the applicable threshold

(f) Proper certification will not prevent the head of anagency from imposing remedies in accordance withsection 221504(a)(4) if it is later discovered that the contrac-tor has furnished an end product or component that has in factbeen mined produced or manufactured wholly or in partusing forced or indentured child labor

FAC 2005ndash43 JULY 2 2010

221504 FEDERAL ACQUISITION REGULATION

2215-2

221504 Violations and remedies(a) Violations The Government may impose remedies set

forth in paragraph (b) of this section for the following viola-tions (note that the violations in paragraphs (a)(3) and (a)(4)of this section go beyond violations of the requirements relat-ing to certification of end products) (see 221503)

(1) The contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor

(2) The contractor has failed to cooperate as required inaccordance with the clause at 52222-19 Child Labor Coop-eration with Authorities and Remedies with an investigationof the use of forced or indentured child labor by an InspectorGeneral the Attorney General or the Secretary of theTreasury

(3) The contractor uses forced or indentured child laborin its mining production or manufacturing processes

(4) The contractor has furnished an end product or com-ponent mined produced or manufactured wholly or in partby forced or indentured child labor Remedies inparagraphs (b)(2) and (b)(3) of this section are inappropriateunless the contractor knew of the violation

(b) Remedies (1) The contracting officer may terminatethe contract

(2) The suspending official may suspend the contractorin accordance with the procedures in Subpart 94

(3) The debarring official may debar the contractor fora period not to exceed 3 years in accordance with the proce-dures in Subpart 94

221505 Solicitation provision and contract clause(a) Except as provided in paragraph (b) of 221503 insert

the provision at 52222-18 Certification Regarding Knowl-edge of Child Labor for Listed End Products in all solicita-tions that are expected to exceed the micro-purchase thresholdand are for the acquisition of end products (regardless of coun-try of origin) of a type identified by country of origin on theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor except solicitations forcommercial items that include the provision at 52212-3 Off-eror Representations and CertificationsmdashCommercial ItemsThe contracting officer must identify in paragraph (b) of theprovision at 52222-18 Certification Regarding Knowledgeof Child Labor for Listed End Products or paragraph (i)(1) ofthe provision at 52212-3 any applicable end products andcountries of origin from the List For solicitations estimatedto equal or exceed $25000 the contracting officer mustexclude from the List in the solicitation end products from anycountries identified at 221503(b) in accordance with thespecified thresholds

(b) Insert the clause at 52222-19 Child LabormdashCoopera-tion with Authorities and Remedies in all solicitations andcontracts for the acquisition of supplies that are expected toexceed the micro-purchase thresholds

SUBPART 252mdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25205

252-1

Subpart 252mdashBuy American ActmdashConstruction Materials

25200 Scope of Subpart(a) This subpart implementsmdash

(1) The Buy American Act (41 USC 10a - 10d)(2) Executive Order 10582 December 17 1954 and(3) Waiver of the component test of the Buy American

Act for acquisitions of commercially available off-the-shelf(COTS) items in accordance with 41 USC 431

(b) It applies to contracts for the construction alteration orrepair of any public building or public work in the UnitedStates

(c) When using funds appropriated or otherwise providedby the American Recovery and Reinvestment Act of 2009(Pub L 111-5) (Recovery Act) for construction seeSubpart 256

25201 PolicyExcept as provided in 25202 use only domestic construc-

tion materials in construction contracts performed in theUnited States

25202 Exceptions(a) When one of the following exceptions applies the con-

tracting officer may acquire foreign construction materialswithout regard to the restrictions of the Buy American Act

(1) Impracticable or inconsistent with public interestThe head of the agency may determine that application of therestrictions of the Buy American Act to a particular construc-tion material would be impracticable or would be inconsistentwith the public interest The public interest exception applieswhen an agency has an agreement with a foreign governmentthat provides a blanket exception to the Buy American Act

(2) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(3) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25204

(b) Determination and findings When a determination ismade for any of the reasons stated in this section that certainforeign construction materials may be used the contractingofficer must list the excepted materials in the contract Theagency must make the findings justifying the exception avail-able for public inspection

(c) Acquisitions under trade agreements For constructioncontracts with an estimated acquisition value of $7804000 ormore see Subpart 254

25203 Preaward determinations(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of the Buy American Act for specifically identified con-struction materials The time for submitting the request isspecified in the solicitation in paragraph (b) of either52225-10 or 52225-12 whichever applies The informationand supporting data that must be included in the request arealso specified in the solicitation in paragraphs (c) and (d) ofeither 52225-9 or 52225-11 whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily availableinformation

25204 Evaluating offers of foreign construction material(a) Offerors proposing to use foreign construction material

other than that listed by the Government in the applicableclause at 52225-9 paragraph (b)(2) or 52225-11paragraph (b)(3) or covered by the WTO GPA or a Free TradeAgreement (paragraph (b)(2) of 52225-11) must provide theinformation required by paragraphs (c) and (d) of the respec-tive clauses

(b) Unless the head of the agency specifies a higher per-centage the contracting officer must add to the offered price6 percent of the cost of any foreign construction material pro-posed for exception from the requirements of the Buy Amer-ican Act based on the unreasonable cost of domesticconstruction materials In the case of a tie the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(2) of52225-9 or paragraph (b)(3) of 52225-11) the contractingofficer must add the excepted materials to the list in the con-tract clause

25205 Postaward determinations(a) If a contractor requests a determination regarding the

inapplicability of the Buy American Act after contract awardthe contractor must explain why it could not request the deter-mination before contract award or why the need for such

FAC 2005ndash43 JULY 2 2010

25206 FEDERAL ACQUISITION REGULATION

252-2

determination otherwise was not reasonably foreseeable Ifthe contracting officer concludes that the contractor shouldhave made the request before contract award the contractingofficer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability of theBuy American Act made after contract award on informationrequired by paragraphs (c) and (d) of the applicable clause at52225-9 or 52225-11 andor other readily availableinformation

(c) If a determination under 25202(a) is made after con-tract award that an exception to the Buy American Actapplies the contracting officer must negotiate adequate con-sideration and modify the contract to allow use of the foreignconstruction material When the basis for the exception is theunreasonable price of a domestic construction material ade-quate consideration is at least the differential established in25202(a) or in accordance with agency procedures

25206 NoncomplianceThe contracting officer mustmdash(a) Review allegations of Buy American Act violations(b) Unless fraud is suspected notify the contractor of the

apparent unauthorized use of foreign construction materialand request a reply to include proposed corrective action and

(c) If the review reveals that a contractor or subcontractorhas used foreign construction material without authorizationtake appropriate action including one or more of thefollowing

(1) Process a determination concerning the inapplica-bility of the Buy American Act in accordance with 25205

(2) Consider requiring the removal and replacement ofthe unauthorized foreign construction material

(3) If removal and replacement of foreign constructionmaterial incorporated in a building or work would be imprac-ticable cause undue delay or otherwise be detrimental to theinterests of the Government the contracting officer maydetermine in writing that the foreign construction materialneed not be removed and replaced A determination to retainforeign construction material does not constitute a determina-tion that an exception to the Buy American Act applies andthis should be stated in the determination Further a determi-nation to retain foreign construction material does not affectthe Governmentrsquos right to suspend or debar a contractor sub-contractor or supplier for violation of the Buy American Actor to exercise other contractual rights and remedies such asreducing the contract price or terminating the contract fordefault

(4) If the noncompliance is sufficiently serious con-sider exercising appropriate contractual remedies such as ter-minating the contract for default Also consider preparing andforwarding a report to the agency suspending or debarringofficial in accordance with Subpart 94 If the noncomplianceappears to be fraudulent refer the matter to other appropriateagency officials such as the officer responsible for criminalinvestigation

SUBPART 254mdashTRADE AGREEMENTS 25404

254-3

25402 General(a)(1) The Trade Agreements Act (19 USC 2501 et seq)

provides the authority for the President to waive the BuyAmerican Act and other discriminatory provisions for eligibleproducts from countries that have signed an internationaltrade agreement with the United States or that meet certainother criteria such as being a least developed country ThePresident has delegated this waiver authority to the US TradeRepresentative In acquisitions covered by the WTO GPAFree Trade Agreements or the Israeli Trade Act the USTRhas waived the Buy American Act and other discriminatoryprovisions for eligible products Offers of eligible productsreceive equal consideration with domestic offers

(2) The contracting officer shall determine the origin ofservices by the country in which the firm providing the ser-vices is established See Subpart 255 for evaluation proce-dures for supply contracts covered by trade agreements

(b) The value of the acquisition is a determining factor inthe applicability of trade agreements Most of these dollarthresholds are subject to revision by the US Trade Represen-tative approximately every 2 years The various thresholds aresummarized as follows

25403 World Trade Organization Government Procurement Agreement and Free Trade Agreements(a) Eligible products from WTO GPA and FTA countries

are entitled to the nondiscriminatory treatment specified in25402(a)(1) The WTO GPA and FTAs specify procurementprocedures designed to ensure fairness (see 25408)

(b) Thresholds (1) To determine whether the acquisitionof products by lease rental or lease-purchase contract(including lease-to-ownership or lease-with-option-to pur-chase) is covered by the WTO GPA or an FTA calculate theestimated acquisition value as follows

(i) If a fixed-term contract of 12 months or less iscontemplated use the total estimated value of the acquisition

(ii) If a fixed-term contract of more than 12 monthsis contemplated use the total estimated value of the acquisi-tion plus the estimated residual value of the leased equipmentat the conclusion of the contemplated term of the contract

(iii) If an indefinite-term contract is contemplateduse the estimated monthly payment multiplied by the totalnumber of months that ordering would be possible under theproposed contract ie the initial ordering period plus anyoptional ordering periods

(iv) If there is any doubt as to the contemplated termof the contract use the estimated monthly payment multipliedby 48

(2) The estimated value includes the value of alloptions

(3) If in any 12-month period recurring or multipleawards for the same type of product or products are antici-pated use the total estimated value of these projected awardsto determine whether the WTO GPA or an FTA applies Donot divide any acquisition with the intent of reducing the esti-mated value of the acquisition below the dollar threshold ofthe WTO GPA or an FTA

(c) Purchase restriction (1) Under the Trade AgreementsAct (19 USC 2512) in acquisitions covered by the WTOGPA acquire only US-made or designated country end prod-ucts or US or designated country services unless offers forsuch end products or services are either not received or areinsufficient to fulfill the requirements This purchase restric-tion does not apply below the WTO GPA threshold for sup-plies and services even if the acquisition is covered by anFTA

(2) This restriction does not apply to purchases of sup-plies by the Department of Defense from a country with whichit has entered into a reciprocal agreement as provided indepartmental regulations

25404 Least developed countriesFor acquisitions covered by the WTO GPA least devel-

oped country end products construction material and ser-vices must be treated as eligible products

Trade Agreement

Supply Contract

(equal to or exceeding)

Service Contract

(equal to or exceeding)

Construction Contract

(equal to or exceeding)

WTO GPA $203000 $203000 $7804000FTAs

Australia FTA 70079 70079 7804000Bahrain FTA 203000 203000 9110318CAFTA-DR (Costa Rica Dominican Republic El Salvador Guatemala Honduras and Nicaragua)

70079 70079 7804000

Chile FTA 70079 70079 7804000Morocco FTA 203000 203000 7804000NAFTAmdashCanada 25000 70079 9110318mdashMexico 70079 70079 9110318Oman FTA 203000 203000 9110318Peru FTA 203000 203000 7804000Singapore FTA 70079 70079 7804000

Israeli Trade Act 50000 mdash mdash

FAC 2005ndash43 JULY 2 2010

25405 FEDERAL ACQUISITION REGULATION

254-4

25405 Caribbean Basin Trade InitiativeUnder the Caribbean Basin Trade Initiative the United

States Trade Representative has determined that for acquisi-tions covered by the WTO GPA Caribbean Basin country endproducts construction material and services must be treatedas eligible products In accordance with Section 201 (a)(3) ofthe Dominican Republic-Central America-United States FreeTrade Implementation Act (Pub L 109-53) when theCAFTA-DR agreement enters into force with respect to acountry that country is no longer designated as a beneficiarycountry for purposes of the Caribbean Basin EconomicRecovery Act and is therefore no longer included in the def-inition of ldquoCaribbean Basin countryrdquo for purposes of the Car-ibbean Basin Trade Initiative

25406 Israeli Trade ActAcquisitions of supplies by most agencies are covered by

the Israeli Trade Act if the estimated value of the acquisitionis $50000 or more but does not exceed the WTO GPA thresh-old for supplies (see 25402(b)) Agencies other than theDepartment of Defense the Department of Energy theDepartment of Transportation the Bureau of Reclamation ofthe Department of the Interior the Federal Housing FinanceBoard and the Office of Thrift Supervision must evaluateoffers of Israeli end products without regard to the restrictionsof the Buy American Act The Israeli Trade Act does not pro-hibit the purchase of other foreign end products

25407 Agreement on Trade in Civil AircraftUnder the authority of Section 303 of the Trade Agree-

ments Act the US Trade Representative has waived the Buy

American Act for civil aircraft and related articles that meetthe substantial transformation test of the Trade AgreementsAct from countries that are parties to the Agreement on Tradein Civil Aircraft Those countries are Austria Belgium Bul-garia Canada Denmark Egypt Finland France GermanyGreece Ireland Italy Japan Luxembourg Macao the Neth-erlands Norway Portugal Romania Spain Sweden Swit-zerland and the United Kingdom

25408 Procedures(a) If the WTO GPA or an FTA applies (see 25401) the

contracting officer mustmdash(1) Comply with the requirements of 5203 Publicizing

and response time(2) Comply with the requirements of 5207 Preparation

and transmittal of synopses(3) Not include technical requirements in solicitations

solely to preclude the acquisition of eligible products(4) Specify in solicitations that offerors must submit

offers in the English language and in US dollars (see52214-34 Submission of Offers in the English Languageand 52214-35 Submission of Offers in US Currency orparagraph (c)(5) of 52215-1 Instruction to OfferorsmdashCom-petitive Acquisitions) and

(5) Provide unsuccessful offerors from WTO GPA orFTA countries notice in accordance with 14409-1 or 15503

(b) See Subpart 255 for evaluation procedures andexamples

SUBPART 255mdashEVALUATING FOREIGN OFFERSmdashSUPPLY CONTRACTS 25503

255-1

Subpart 255mdashEvaluating Foreign OffersmdashSupply Contracts

25501 GeneralThe contracting officermdash(a) Must apply the evaluation procedures of this subpart to

each line item of an offer unless either the offer or the solici-tation specifies evaluation on a group basis (see 25503)

(b) May rely on the offerorrsquos certification of end productorigin when evaluating a foreign offer

(c) Must identify and reject offers of end products that areprohibited in accordance with Subpart 257 and

(d) Must not use the Buy American Act evaluation factorsprescribed in this subpart to provide a preference for one for-eign offer over another foreign offer

25502 Application(a) Unless otherwise specified in agency regulations per-

form the following steps in the order presented(1) Eliminate all offers or offerors that are unacceptable

for reasons other than price eg nonresponsive debarred orsuspended or a prohibited source (see Subpart 257)

(2) Rank the remaining offers by price(3) If the solicitation specifies award on the basis of fac-

tors in addition to cost or price apply the evaluation factorsas specified in this section and use the evaluated cost or pricein determining the offer that represents the best value to theGovernment

(b) For acquisitions covered by the WTO GPA (seeSubpart 254)mdash

(1) Consider only offers of US-made or designatedcountry end products unless no offers of such end productswere received

(2) If the agency gives the same consideration given eli-gible offers to offers of US-made end products that are notdomestic end products award on the low offer Otherwiseevaluate in accordance with agency procedures and

(3) If there were no offers of US-made or designatedcountry end products make a nonavailability determination(see 25103(b)(2)) and award on the low offer (see 25403(c))

(c) For acquisitions not covered by the WTO GPA but sub-ject to the Buy American Act (an FTA or the Israeli Trade Actalso may apply) the following applies

(1) If the low offer is a domestic offer or an eligible offerunder an FTA or the Israeli Trade Act award on that offer

(2) If the low offer is a noneligible offer and there wereno domestic offers (see 25103(b)(3)) award on the low offer

(3) If the low offer is a noneligible offer and there is aneligible offer that is lower than the lowest domestic offeraward on the low offer The Buy American Act provides anevaluation preference only for domestic offers

(4) Otherwise apply the appropriate evaluation factorprovided in 25105 to the low offer

(i) If the evaluated price of the low offer remains lessthan the lowest domestic offer award on the low offer

(ii) If the price of the lowest domestic offer is lessthan the evaluated price of the low offer award on the lowestdomestic offer

(d) Ties (1) If application of an evaluation factor results ina tie between a domestic offer and a foreign offer award onthe domestic offer

(2) If no evaluation preference was applied (ie offersafforded nondiscriminatory treatment under the Buy Ameri-can Act) resolve ties between domestic and foreign offers bya witnessed drawing of lots by an impartial individual

(3) Resolve ties between foreign offers from small busi-ness concerns (under the Buy American Act a small businessoffering a manufactured article that does not meet the defini-tion of ldquodomestic end productrdquo is a foreign offer) or foreignoffers from a small business concern and a large business con-cern in accordance with 14408-6(a)

25503 Group offers(a) If the solicitation or an offer specifies that award can be

made only on a group of line items or on all line items con-tained in the solicitation or offer reject the offermdash

(1) If any part of the award would consist of prohibitedend products (see Subpart 257) or

(2) If the acquisition is covered by the WTO GPA andany part of the offer consists of items restricted in accordancewith 22403(c)

(b) If an offer restricts award to a group of line items or toall line items contained in the offer determine for each lineitem whether to apply an evaluation factor (see 25504-4Example 1)

(1) First evaluate offers that do not specify an awardrestriction on a line item basis in accordance with 25502determining a tentative award pattern by selecting for eachline item the offer with the lowest evaluated price

(2) Evaluate an offer that specifies an award restrictionagainst the offered prices of the tentative award pattern apply-ing the appropriate evaluation factor on a line item basis

(3) Compute the total evaluated price for the tentativeaward pattern and the offer that specified an award restriction

(4) Unless the total evaluated price of the offer thatspecified an award restriction is less than the total evaluatedprice of the tentative award pattern award based on the ten-tative award pattern

(c) If the solicitation specifies that award will be made onlyon a group of line items or all line items contained in the solic-itation determine the category of end products on the basis ofeach line item but determine whether to apply an evaluationfactor on the basis of the group of items (see 25504-4 Exam-ple 2)

(1) If the proposed price of domestic end productsexceeds 50 percent of the total proposed price of the group

FAC 2005ndash09 APRIL 19 2006

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
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Page 12: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

415-2

This page intentionally left blank

SUBPART 2215mdashPROHIBITION OF ACQUISITION OF PRODUCTS PRODUCED BY FORCED OR INDENTURED CHILD LABOR 221503

2215-1

Subpart 2215mdashProhibition of Acquisition of Products Produced by Forced or Indentured

Child Labor

221500 ScopeThis subpart applies to acquisitions of supplies that exceed

the micro-purchase threshold

221501 DefinitionsAs used in this subpartmdashldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

ldquoList of Products Requiring Contractor Certification as toForced or Indentured Child Laborrdquo means the list publishedby the Department of Labor in accordance with EO 13126 ofJune 12 1999 Prohibition of Acquisition of Products Pro-duced by Forced or Indentured Child Labor The list identifiesproducts by their country of origin that the Departments ofLabor Treasury and State have a reasonable basis to believemight have been mined produced or manufactured by forcedor indentured child labor

221502 PolicyAgencies must take appropriate action to enforce the laws

prohibiting the manufacture or importation of products thathave been mined produced or manufactured wholly or in partby forced or indentured child labor (19 USC 130729 USC 201 et seq and 41 USC 35 et seq) Agenciesshould make every effort to avoid acquiring such products

221503 Procedures for acquiring end products on the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor(a) When issuing a solicitation for supplies expected to

exceed the micro-purchase threshold the contracting officermust check the List of Products Requiring Contractor Certifi-cation as to Forced or Indentured Child Labor (the List)(wwwdolgovilab) (see 221505(a)) Appearance of a prod-uct on the List is not a bar to purchase of any such productmined produced or manufactured in the identified countrybut rather is an alert that there is a reasonable basis to believethat such product may have been mined produced or manu-factured by forced or indentured child labor

(b) The requirements of this subpart that result from theappearance of any end product on the List do not apply to asolicitation or contract if the identified country of origin on theList ismdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more (Subpart 254)

(2) Israel and the anticipated value of the acquisition is$50000 or more (see 25406)

(3) Mexico and the anticipated value of the acquisitionis $70079 or more (see Subpart 254) or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more (see 25402(b))

(c) Except as provided in paragraph (b) of this sectionbefore the contracting officer may make an award for an endproduct (regardless of country of origin) of a type identifiedby country of origin on the List the offeror must certify thatmdash

(1) It will not supply any end product on the List thatwas mined produced or manufactured in a country identifiedon the List for that product as specified in the solicitation bythe contracting officer in the Certification Regarding Knowl-edge of Child Labor for Listed End Products or

(2)(i) It has made a good faith effort to determinewhether forced or indentured child labor was used to mineproduce or manufacture any end product to be furnishedunder the contract that is on the List and was mined producedor manufactured in a country identified on the List for thatproduct and

(ii) On the basis of those efforts the offeror isunaware of any such use of child labor

(d) Absent any actual knowledge that the certification isfalse the contracting officer must rely on the offerorsrsquo certi-fications in making award decisions

(e) Whenever a contracting officer has reason to believethat forced or indentured child labor was used to mine pro-duce or manufacture an end product furnished pursuant to acontract awarded subject to the certification required inparagraph (c) of this section the contracting officer must referthe matter for investigation by the agencyrsquos Inspector Generalthe Attorney General or the Secretary of the Treasury which-ever is determined appropriate in accordance with agency pro-cedures except to the extent that the end product is from thecountry listed in paragraph (b) of this section under a contractexceeding the applicable threshold

(f) Proper certification will not prevent the head of anagency from imposing remedies in accordance withsection 221504(a)(4) if it is later discovered that the contrac-tor has furnished an end product or component that has in factbeen mined produced or manufactured wholly or in partusing forced or indentured child labor

FAC 2005ndash43 JULY 2 2010

221504 FEDERAL ACQUISITION REGULATION

2215-2

221504 Violations and remedies(a) Violations The Government may impose remedies set

forth in paragraph (b) of this section for the following viola-tions (note that the violations in paragraphs (a)(3) and (a)(4)of this section go beyond violations of the requirements relat-ing to certification of end products) (see 221503)

(1) The contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor

(2) The contractor has failed to cooperate as required inaccordance with the clause at 52222-19 Child Labor Coop-eration with Authorities and Remedies with an investigationof the use of forced or indentured child labor by an InspectorGeneral the Attorney General or the Secretary of theTreasury

(3) The contractor uses forced or indentured child laborin its mining production or manufacturing processes

(4) The contractor has furnished an end product or com-ponent mined produced or manufactured wholly or in partby forced or indentured child labor Remedies inparagraphs (b)(2) and (b)(3) of this section are inappropriateunless the contractor knew of the violation

(b) Remedies (1) The contracting officer may terminatethe contract

(2) The suspending official may suspend the contractorin accordance with the procedures in Subpart 94

(3) The debarring official may debar the contractor fora period not to exceed 3 years in accordance with the proce-dures in Subpart 94

221505 Solicitation provision and contract clause(a) Except as provided in paragraph (b) of 221503 insert

the provision at 52222-18 Certification Regarding Knowl-edge of Child Labor for Listed End Products in all solicita-tions that are expected to exceed the micro-purchase thresholdand are for the acquisition of end products (regardless of coun-try of origin) of a type identified by country of origin on theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor except solicitations forcommercial items that include the provision at 52212-3 Off-eror Representations and CertificationsmdashCommercial ItemsThe contracting officer must identify in paragraph (b) of theprovision at 52222-18 Certification Regarding Knowledgeof Child Labor for Listed End Products or paragraph (i)(1) ofthe provision at 52212-3 any applicable end products andcountries of origin from the List For solicitations estimatedto equal or exceed $25000 the contracting officer mustexclude from the List in the solicitation end products from anycountries identified at 221503(b) in accordance with thespecified thresholds

(b) Insert the clause at 52222-19 Child LabormdashCoopera-tion with Authorities and Remedies in all solicitations andcontracts for the acquisition of supplies that are expected toexceed the micro-purchase thresholds

SUBPART 252mdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25205

252-1

Subpart 252mdashBuy American ActmdashConstruction Materials

25200 Scope of Subpart(a) This subpart implementsmdash

(1) The Buy American Act (41 USC 10a - 10d)(2) Executive Order 10582 December 17 1954 and(3) Waiver of the component test of the Buy American

Act for acquisitions of commercially available off-the-shelf(COTS) items in accordance with 41 USC 431

(b) It applies to contracts for the construction alteration orrepair of any public building or public work in the UnitedStates

(c) When using funds appropriated or otherwise providedby the American Recovery and Reinvestment Act of 2009(Pub L 111-5) (Recovery Act) for construction seeSubpart 256

25201 PolicyExcept as provided in 25202 use only domestic construc-

tion materials in construction contracts performed in theUnited States

25202 Exceptions(a) When one of the following exceptions applies the con-

tracting officer may acquire foreign construction materialswithout regard to the restrictions of the Buy American Act

(1) Impracticable or inconsistent with public interestThe head of the agency may determine that application of therestrictions of the Buy American Act to a particular construc-tion material would be impracticable or would be inconsistentwith the public interest The public interest exception applieswhen an agency has an agreement with a foreign governmentthat provides a blanket exception to the Buy American Act

(2) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(3) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25204

(b) Determination and findings When a determination ismade for any of the reasons stated in this section that certainforeign construction materials may be used the contractingofficer must list the excepted materials in the contract Theagency must make the findings justifying the exception avail-able for public inspection

(c) Acquisitions under trade agreements For constructioncontracts with an estimated acquisition value of $7804000 ormore see Subpart 254

25203 Preaward determinations(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of the Buy American Act for specifically identified con-struction materials The time for submitting the request isspecified in the solicitation in paragraph (b) of either52225-10 or 52225-12 whichever applies The informationand supporting data that must be included in the request arealso specified in the solicitation in paragraphs (c) and (d) ofeither 52225-9 or 52225-11 whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily availableinformation

25204 Evaluating offers of foreign construction material(a) Offerors proposing to use foreign construction material

other than that listed by the Government in the applicableclause at 52225-9 paragraph (b)(2) or 52225-11paragraph (b)(3) or covered by the WTO GPA or a Free TradeAgreement (paragraph (b)(2) of 52225-11) must provide theinformation required by paragraphs (c) and (d) of the respec-tive clauses

(b) Unless the head of the agency specifies a higher per-centage the contracting officer must add to the offered price6 percent of the cost of any foreign construction material pro-posed for exception from the requirements of the Buy Amer-ican Act based on the unreasonable cost of domesticconstruction materials In the case of a tie the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(2) of52225-9 or paragraph (b)(3) of 52225-11) the contractingofficer must add the excepted materials to the list in the con-tract clause

25205 Postaward determinations(a) If a contractor requests a determination regarding the

inapplicability of the Buy American Act after contract awardthe contractor must explain why it could not request the deter-mination before contract award or why the need for such

FAC 2005ndash43 JULY 2 2010

25206 FEDERAL ACQUISITION REGULATION

252-2

determination otherwise was not reasonably foreseeable Ifthe contracting officer concludes that the contractor shouldhave made the request before contract award the contractingofficer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability of theBuy American Act made after contract award on informationrequired by paragraphs (c) and (d) of the applicable clause at52225-9 or 52225-11 andor other readily availableinformation

(c) If a determination under 25202(a) is made after con-tract award that an exception to the Buy American Actapplies the contracting officer must negotiate adequate con-sideration and modify the contract to allow use of the foreignconstruction material When the basis for the exception is theunreasonable price of a domestic construction material ade-quate consideration is at least the differential established in25202(a) or in accordance with agency procedures

25206 NoncomplianceThe contracting officer mustmdash(a) Review allegations of Buy American Act violations(b) Unless fraud is suspected notify the contractor of the

apparent unauthorized use of foreign construction materialand request a reply to include proposed corrective action and

(c) If the review reveals that a contractor or subcontractorhas used foreign construction material without authorizationtake appropriate action including one or more of thefollowing

(1) Process a determination concerning the inapplica-bility of the Buy American Act in accordance with 25205

(2) Consider requiring the removal and replacement ofthe unauthorized foreign construction material

(3) If removal and replacement of foreign constructionmaterial incorporated in a building or work would be imprac-ticable cause undue delay or otherwise be detrimental to theinterests of the Government the contracting officer maydetermine in writing that the foreign construction materialneed not be removed and replaced A determination to retainforeign construction material does not constitute a determina-tion that an exception to the Buy American Act applies andthis should be stated in the determination Further a determi-nation to retain foreign construction material does not affectthe Governmentrsquos right to suspend or debar a contractor sub-contractor or supplier for violation of the Buy American Actor to exercise other contractual rights and remedies such asreducing the contract price or terminating the contract fordefault

(4) If the noncompliance is sufficiently serious con-sider exercising appropriate contractual remedies such as ter-minating the contract for default Also consider preparing andforwarding a report to the agency suspending or debarringofficial in accordance with Subpart 94 If the noncomplianceappears to be fraudulent refer the matter to other appropriateagency officials such as the officer responsible for criminalinvestigation

SUBPART 254mdashTRADE AGREEMENTS 25404

254-3

25402 General(a)(1) The Trade Agreements Act (19 USC 2501 et seq)

provides the authority for the President to waive the BuyAmerican Act and other discriminatory provisions for eligibleproducts from countries that have signed an internationaltrade agreement with the United States or that meet certainother criteria such as being a least developed country ThePresident has delegated this waiver authority to the US TradeRepresentative In acquisitions covered by the WTO GPAFree Trade Agreements or the Israeli Trade Act the USTRhas waived the Buy American Act and other discriminatoryprovisions for eligible products Offers of eligible productsreceive equal consideration with domestic offers

(2) The contracting officer shall determine the origin ofservices by the country in which the firm providing the ser-vices is established See Subpart 255 for evaluation proce-dures for supply contracts covered by trade agreements

(b) The value of the acquisition is a determining factor inthe applicability of trade agreements Most of these dollarthresholds are subject to revision by the US Trade Represen-tative approximately every 2 years The various thresholds aresummarized as follows

25403 World Trade Organization Government Procurement Agreement and Free Trade Agreements(a) Eligible products from WTO GPA and FTA countries

are entitled to the nondiscriminatory treatment specified in25402(a)(1) The WTO GPA and FTAs specify procurementprocedures designed to ensure fairness (see 25408)

(b) Thresholds (1) To determine whether the acquisitionof products by lease rental or lease-purchase contract(including lease-to-ownership or lease-with-option-to pur-chase) is covered by the WTO GPA or an FTA calculate theestimated acquisition value as follows

(i) If a fixed-term contract of 12 months or less iscontemplated use the total estimated value of the acquisition

(ii) If a fixed-term contract of more than 12 monthsis contemplated use the total estimated value of the acquisi-tion plus the estimated residual value of the leased equipmentat the conclusion of the contemplated term of the contract

(iii) If an indefinite-term contract is contemplateduse the estimated monthly payment multiplied by the totalnumber of months that ordering would be possible under theproposed contract ie the initial ordering period plus anyoptional ordering periods

(iv) If there is any doubt as to the contemplated termof the contract use the estimated monthly payment multipliedby 48

(2) The estimated value includes the value of alloptions

(3) If in any 12-month period recurring or multipleawards for the same type of product or products are antici-pated use the total estimated value of these projected awardsto determine whether the WTO GPA or an FTA applies Donot divide any acquisition with the intent of reducing the esti-mated value of the acquisition below the dollar threshold ofthe WTO GPA or an FTA

(c) Purchase restriction (1) Under the Trade AgreementsAct (19 USC 2512) in acquisitions covered by the WTOGPA acquire only US-made or designated country end prod-ucts or US or designated country services unless offers forsuch end products or services are either not received or areinsufficient to fulfill the requirements This purchase restric-tion does not apply below the WTO GPA threshold for sup-plies and services even if the acquisition is covered by anFTA

(2) This restriction does not apply to purchases of sup-plies by the Department of Defense from a country with whichit has entered into a reciprocal agreement as provided indepartmental regulations

25404 Least developed countriesFor acquisitions covered by the WTO GPA least devel-

oped country end products construction material and ser-vices must be treated as eligible products

Trade Agreement

Supply Contract

(equal to or exceeding)

Service Contract

(equal to or exceeding)

Construction Contract

(equal to or exceeding)

WTO GPA $203000 $203000 $7804000FTAs

Australia FTA 70079 70079 7804000Bahrain FTA 203000 203000 9110318CAFTA-DR (Costa Rica Dominican Republic El Salvador Guatemala Honduras and Nicaragua)

70079 70079 7804000

Chile FTA 70079 70079 7804000Morocco FTA 203000 203000 7804000NAFTAmdashCanada 25000 70079 9110318mdashMexico 70079 70079 9110318Oman FTA 203000 203000 9110318Peru FTA 203000 203000 7804000Singapore FTA 70079 70079 7804000

Israeli Trade Act 50000 mdash mdash

FAC 2005ndash43 JULY 2 2010

25405 FEDERAL ACQUISITION REGULATION

254-4

25405 Caribbean Basin Trade InitiativeUnder the Caribbean Basin Trade Initiative the United

States Trade Representative has determined that for acquisi-tions covered by the WTO GPA Caribbean Basin country endproducts construction material and services must be treatedas eligible products In accordance with Section 201 (a)(3) ofthe Dominican Republic-Central America-United States FreeTrade Implementation Act (Pub L 109-53) when theCAFTA-DR agreement enters into force with respect to acountry that country is no longer designated as a beneficiarycountry for purposes of the Caribbean Basin EconomicRecovery Act and is therefore no longer included in the def-inition of ldquoCaribbean Basin countryrdquo for purposes of the Car-ibbean Basin Trade Initiative

25406 Israeli Trade ActAcquisitions of supplies by most agencies are covered by

the Israeli Trade Act if the estimated value of the acquisitionis $50000 or more but does not exceed the WTO GPA thresh-old for supplies (see 25402(b)) Agencies other than theDepartment of Defense the Department of Energy theDepartment of Transportation the Bureau of Reclamation ofthe Department of the Interior the Federal Housing FinanceBoard and the Office of Thrift Supervision must evaluateoffers of Israeli end products without regard to the restrictionsof the Buy American Act The Israeli Trade Act does not pro-hibit the purchase of other foreign end products

25407 Agreement on Trade in Civil AircraftUnder the authority of Section 303 of the Trade Agree-

ments Act the US Trade Representative has waived the Buy

American Act for civil aircraft and related articles that meetthe substantial transformation test of the Trade AgreementsAct from countries that are parties to the Agreement on Tradein Civil Aircraft Those countries are Austria Belgium Bul-garia Canada Denmark Egypt Finland France GermanyGreece Ireland Italy Japan Luxembourg Macao the Neth-erlands Norway Portugal Romania Spain Sweden Swit-zerland and the United Kingdom

25408 Procedures(a) If the WTO GPA or an FTA applies (see 25401) the

contracting officer mustmdash(1) Comply with the requirements of 5203 Publicizing

and response time(2) Comply with the requirements of 5207 Preparation

and transmittal of synopses(3) Not include technical requirements in solicitations

solely to preclude the acquisition of eligible products(4) Specify in solicitations that offerors must submit

offers in the English language and in US dollars (see52214-34 Submission of Offers in the English Languageand 52214-35 Submission of Offers in US Currency orparagraph (c)(5) of 52215-1 Instruction to OfferorsmdashCom-petitive Acquisitions) and

(5) Provide unsuccessful offerors from WTO GPA orFTA countries notice in accordance with 14409-1 or 15503

(b) See Subpart 255 for evaluation procedures andexamples

SUBPART 255mdashEVALUATING FOREIGN OFFERSmdashSUPPLY CONTRACTS 25503

255-1

Subpart 255mdashEvaluating Foreign OffersmdashSupply Contracts

25501 GeneralThe contracting officermdash(a) Must apply the evaluation procedures of this subpart to

each line item of an offer unless either the offer or the solici-tation specifies evaluation on a group basis (see 25503)

(b) May rely on the offerorrsquos certification of end productorigin when evaluating a foreign offer

(c) Must identify and reject offers of end products that areprohibited in accordance with Subpart 257 and

(d) Must not use the Buy American Act evaluation factorsprescribed in this subpart to provide a preference for one for-eign offer over another foreign offer

25502 Application(a) Unless otherwise specified in agency regulations per-

form the following steps in the order presented(1) Eliminate all offers or offerors that are unacceptable

for reasons other than price eg nonresponsive debarred orsuspended or a prohibited source (see Subpart 257)

(2) Rank the remaining offers by price(3) If the solicitation specifies award on the basis of fac-

tors in addition to cost or price apply the evaluation factorsas specified in this section and use the evaluated cost or pricein determining the offer that represents the best value to theGovernment

(b) For acquisitions covered by the WTO GPA (seeSubpart 254)mdash

(1) Consider only offers of US-made or designatedcountry end products unless no offers of such end productswere received

(2) If the agency gives the same consideration given eli-gible offers to offers of US-made end products that are notdomestic end products award on the low offer Otherwiseevaluate in accordance with agency procedures and

(3) If there were no offers of US-made or designatedcountry end products make a nonavailability determination(see 25103(b)(2)) and award on the low offer (see 25403(c))

(c) For acquisitions not covered by the WTO GPA but sub-ject to the Buy American Act (an FTA or the Israeli Trade Actalso may apply) the following applies

(1) If the low offer is a domestic offer or an eligible offerunder an FTA or the Israeli Trade Act award on that offer

(2) If the low offer is a noneligible offer and there wereno domestic offers (see 25103(b)(3)) award on the low offer

(3) If the low offer is a noneligible offer and there is aneligible offer that is lower than the lowest domestic offeraward on the low offer The Buy American Act provides anevaluation preference only for domestic offers

(4) Otherwise apply the appropriate evaluation factorprovided in 25105 to the low offer

(i) If the evaluated price of the low offer remains lessthan the lowest domestic offer award on the low offer

(ii) If the price of the lowest domestic offer is lessthan the evaluated price of the low offer award on the lowestdomestic offer

(d) Ties (1) If application of an evaluation factor results ina tie between a domestic offer and a foreign offer award onthe domestic offer

(2) If no evaluation preference was applied (ie offersafforded nondiscriminatory treatment under the Buy Ameri-can Act) resolve ties between domestic and foreign offers bya witnessed drawing of lots by an impartial individual

(3) Resolve ties between foreign offers from small busi-ness concerns (under the Buy American Act a small businessoffering a manufactured article that does not meet the defini-tion of ldquodomestic end productrdquo is a foreign offer) or foreignoffers from a small business concern and a large business con-cern in accordance with 14408-6(a)

25503 Group offers(a) If the solicitation or an offer specifies that award can be

made only on a group of line items or on all line items con-tained in the solicitation or offer reject the offermdash

(1) If any part of the award would consist of prohibitedend products (see Subpart 257) or

(2) If the acquisition is covered by the WTO GPA andany part of the offer consists of items restricted in accordancewith 22403(c)

(b) If an offer restricts award to a group of line items or toall line items contained in the offer determine for each lineitem whether to apply an evaluation factor (see 25504-4Example 1)

(1) First evaluate offers that do not specify an awardrestriction on a line item basis in accordance with 25502determining a tentative award pattern by selecting for eachline item the offer with the lowest evaluated price

(2) Evaluate an offer that specifies an award restrictionagainst the offered prices of the tentative award pattern apply-ing the appropriate evaluation factor on a line item basis

(3) Compute the total evaluated price for the tentativeaward pattern and the offer that specified an award restriction

(4) Unless the total evaluated price of the offer thatspecified an award restriction is less than the total evaluatedprice of the tentative award pattern award based on the ten-tative award pattern

(c) If the solicitation specifies that award will be made onlyon a group of line items or all line items contained in the solic-itation determine the category of end products on the basis ofeach line item but determine whether to apply an evaluationfactor on the basis of the group of items (see 25504-4 Exam-ple 2)

(1) If the proposed price of domestic end productsexceeds 50 percent of the total proposed price of the group

FAC 2005ndash09 APRIL 19 2006

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 13: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

SUBPART 2215mdashPROHIBITION OF ACQUISITION OF PRODUCTS PRODUCED BY FORCED OR INDENTURED CHILD LABOR 221503

2215-1

Subpart 2215mdashProhibition of Acquisition of Products Produced by Forced or Indentured

Child Labor

221500 ScopeThis subpart applies to acquisitions of supplies that exceed

the micro-purchase threshold

221501 DefinitionsAs used in this subpartmdashldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

ldquoList of Products Requiring Contractor Certification as toForced or Indentured Child Laborrdquo means the list publishedby the Department of Labor in accordance with EO 13126 ofJune 12 1999 Prohibition of Acquisition of Products Pro-duced by Forced or Indentured Child Labor The list identifiesproducts by their country of origin that the Departments ofLabor Treasury and State have a reasonable basis to believemight have been mined produced or manufactured by forcedor indentured child labor

221502 PolicyAgencies must take appropriate action to enforce the laws

prohibiting the manufacture or importation of products thathave been mined produced or manufactured wholly or in partby forced or indentured child labor (19 USC 130729 USC 201 et seq and 41 USC 35 et seq) Agenciesshould make every effort to avoid acquiring such products

221503 Procedures for acquiring end products on the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor(a) When issuing a solicitation for supplies expected to

exceed the micro-purchase threshold the contracting officermust check the List of Products Requiring Contractor Certifi-cation as to Forced or Indentured Child Labor (the List)(wwwdolgovilab) (see 221505(a)) Appearance of a prod-uct on the List is not a bar to purchase of any such productmined produced or manufactured in the identified countrybut rather is an alert that there is a reasonable basis to believethat such product may have been mined produced or manu-factured by forced or indentured child labor

(b) The requirements of this subpart that result from theappearance of any end product on the List do not apply to asolicitation or contract if the identified country of origin on theList ismdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more (Subpart 254)

(2) Israel and the anticipated value of the acquisition is$50000 or more (see 25406)

(3) Mexico and the anticipated value of the acquisitionis $70079 or more (see Subpart 254) or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more (see 25402(b))

(c) Except as provided in paragraph (b) of this sectionbefore the contracting officer may make an award for an endproduct (regardless of country of origin) of a type identifiedby country of origin on the List the offeror must certify thatmdash

(1) It will not supply any end product on the List thatwas mined produced or manufactured in a country identifiedon the List for that product as specified in the solicitation bythe contracting officer in the Certification Regarding Knowl-edge of Child Labor for Listed End Products or

(2)(i) It has made a good faith effort to determinewhether forced or indentured child labor was used to mineproduce or manufacture any end product to be furnishedunder the contract that is on the List and was mined producedor manufactured in a country identified on the List for thatproduct and

(ii) On the basis of those efforts the offeror isunaware of any such use of child labor

(d) Absent any actual knowledge that the certification isfalse the contracting officer must rely on the offerorsrsquo certi-fications in making award decisions

(e) Whenever a contracting officer has reason to believethat forced or indentured child labor was used to mine pro-duce or manufacture an end product furnished pursuant to acontract awarded subject to the certification required inparagraph (c) of this section the contracting officer must referthe matter for investigation by the agencyrsquos Inspector Generalthe Attorney General or the Secretary of the Treasury which-ever is determined appropriate in accordance with agency pro-cedures except to the extent that the end product is from thecountry listed in paragraph (b) of this section under a contractexceeding the applicable threshold

(f) Proper certification will not prevent the head of anagency from imposing remedies in accordance withsection 221504(a)(4) if it is later discovered that the contrac-tor has furnished an end product or component that has in factbeen mined produced or manufactured wholly or in partusing forced or indentured child labor

FAC 2005ndash43 JULY 2 2010

221504 FEDERAL ACQUISITION REGULATION

2215-2

221504 Violations and remedies(a) Violations The Government may impose remedies set

forth in paragraph (b) of this section for the following viola-tions (note that the violations in paragraphs (a)(3) and (a)(4)of this section go beyond violations of the requirements relat-ing to certification of end products) (see 221503)

(1) The contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor

(2) The contractor has failed to cooperate as required inaccordance with the clause at 52222-19 Child Labor Coop-eration with Authorities and Remedies with an investigationof the use of forced or indentured child labor by an InspectorGeneral the Attorney General or the Secretary of theTreasury

(3) The contractor uses forced or indentured child laborin its mining production or manufacturing processes

(4) The contractor has furnished an end product or com-ponent mined produced or manufactured wholly or in partby forced or indentured child labor Remedies inparagraphs (b)(2) and (b)(3) of this section are inappropriateunless the contractor knew of the violation

(b) Remedies (1) The contracting officer may terminatethe contract

(2) The suspending official may suspend the contractorin accordance with the procedures in Subpart 94

(3) The debarring official may debar the contractor fora period not to exceed 3 years in accordance with the proce-dures in Subpart 94

221505 Solicitation provision and contract clause(a) Except as provided in paragraph (b) of 221503 insert

the provision at 52222-18 Certification Regarding Knowl-edge of Child Labor for Listed End Products in all solicita-tions that are expected to exceed the micro-purchase thresholdand are for the acquisition of end products (regardless of coun-try of origin) of a type identified by country of origin on theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor except solicitations forcommercial items that include the provision at 52212-3 Off-eror Representations and CertificationsmdashCommercial ItemsThe contracting officer must identify in paragraph (b) of theprovision at 52222-18 Certification Regarding Knowledgeof Child Labor for Listed End Products or paragraph (i)(1) ofthe provision at 52212-3 any applicable end products andcountries of origin from the List For solicitations estimatedto equal or exceed $25000 the contracting officer mustexclude from the List in the solicitation end products from anycountries identified at 221503(b) in accordance with thespecified thresholds

(b) Insert the clause at 52222-19 Child LabormdashCoopera-tion with Authorities and Remedies in all solicitations andcontracts for the acquisition of supplies that are expected toexceed the micro-purchase thresholds

SUBPART 252mdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25205

252-1

Subpart 252mdashBuy American ActmdashConstruction Materials

25200 Scope of Subpart(a) This subpart implementsmdash

(1) The Buy American Act (41 USC 10a - 10d)(2) Executive Order 10582 December 17 1954 and(3) Waiver of the component test of the Buy American

Act for acquisitions of commercially available off-the-shelf(COTS) items in accordance with 41 USC 431

(b) It applies to contracts for the construction alteration orrepair of any public building or public work in the UnitedStates

(c) When using funds appropriated or otherwise providedby the American Recovery and Reinvestment Act of 2009(Pub L 111-5) (Recovery Act) for construction seeSubpart 256

25201 PolicyExcept as provided in 25202 use only domestic construc-

tion materials in construction contracts performed in theUnited States

25202 Exceptions(a) When one of the following exceptions applies the con-

tracting officer may acquire foreign construction materialswithout regard to the restrictions of the Buy American Act

(1) Impracticable or inconsistent with public interestThe head of the agency may determine that application of therestrictions of the Buy American Act to a particular construc-tion material would be impracticable or would be inconsistentwith the public interest The public interest exception applieswhen an agency has an agreement with a foreign governmentthat provides a blanket exception to the Buy American Act

(2) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(3) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25204

(b) Determination and findings When a determination ismade for any of the reasons stated in this section that certainforeign construction materials may be used the contractingofficer must list the excepted materials in the contract Theagency must make the findings justifying the exception avail-able for public inspection

(c) Acquisitions under trade agreements For constructioncontracts with an estimated acquisition value of $7804000 ormore see Subpart 254

25203 Preaward determinations(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of the Buy American Act for specifically identified con-struction materials The time for submitting the request isspecified in the solicitation in paragraph (b) of either52225-10 or 52225-12 whichever applies The informationand supporting data that must be included in the request arealso specified in the solicitation in paragraphs (c) and (d) ofeither 52225-9 or 52225-11 whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily availableinformation

25204 Evaluating offers of foreign construction material(a) Offerors proposing to use foreign construction material

other than that listed by the Government in the applicableclause at 52225-9 paragraph (b)(2) or 52225-11paragraph (b)(3) or covered by the WTO GPA or a Free TradeAgreement (paragraph (b)(2) of 52225-11) must provide theinformation required by paragraphs (c) and (d) of the respec-tive clauses

(b) Unless the head of the agency specifies a higher per-centage the contracting officer must add to the offered price6 percent of the cost of any foreign construction material pro-posed for exception from the requirements of the Buy Amer-ican Act based on the unreasonable cost of domesticconstruction materials In the case of a tie the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(2) of52225-9 or paragraph (b)(3) of 52225-11) the contractingofficer must add the excepted materials to the list in the con-tract clause

25205 Postaward determinations(a) If a contractor requests a determination regarding the

inapplicability of the Buy American Act after contract awardthe contractor must explain why it could not request the deter-mination before contract award or why the need for such

FAC 2005ndash43 JULY 2 2010

25206 FEDERAL ACQUISITION REGULATION

252-2

determination otherwise was not reasonably foreseeable Ifthe contracting officer concludes that the contractor shouldhave made the request before contract award the contractingofficer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability of theBuy American Act made after contract award on informationrequired by paragraphs (c) and (d) of the applicable clause at52225-9 or 52225-11 andor other readily availableinformation

(c) If a determination under 25202(a) is made after con-tract award that an exception to the Buy American Actapplies the contracting officer must negotiate adequate con-sideration and modify the contract to allow use of the foreignconstruction material When the basis for the exception is theunreasonable price of a domestic construction material ade-quate consideration is at least the differential established in25202(a) or in accordance with agency procedures

25206 NoncomplianceThe contracting officer mustmdash(a) Review allegations of Buy American Act violations(b) Unless fraud is suspected notify the contractor of the

apparent unauthorized use of foreign construction materialand request a reply to include proposed corrective action and

(c) If the review reveals that a contractor or subcontractorhas used foreign construction material without authorizationtake appropriate action including one or more of thefollowing

(1) Process a determination concerning the inapplica-bility of the Buy American Act in accordance with 25205

(2) Consider requiring the removal and replacement ofthe unauthorized foreign construction material

(3) If removal and replacement of foreign constructionmaterial incorporated in a building or work would be imprac-ticable cause undue delay or otherwise be detrimental to theinterests of the Government the contracting officer maydetermine in writing that the foreign construction materialneed not be removed and replaced A determination to retainforeign construction material does not constitute a determina-tion that an exception to the Buy American Act applies andthis should be stated in the determination Further a determi-nation to retain foreign construction material does not affectthe Governmentrsquos right to suspend or debar a contractor sub-contractor or supplier for violation of the Buy American Actor to exercise other contractual rights and remedies such asreducing the contract price or terminating the contract fordefault

(4) If the noncompliance is sufficiently serious con-sider exercising appropriate contractual remedies such as ter-minating the contract for default Also consider preparing andforwarding a report to the agency suspending or debarringofficial in accordance with Subpart 94 If the noncomplianceappears to be fraudulent refer the matter to other appropriateagency officials such as the officer responsible for criminalinvestigation

SUBPART 254mdashTRADE AGREEMENTS 25404

254-3

25402 General(a)(1) The Trade Agreements Act (19 USC 2501 et seq)

provides the authority for the President to waive the BuyAmerican Act and other discriminatory provisions for eligibleproducts from countries that have signed an internationaltrade agreement with the United States or that meet certainother criteria such as being a least developed country ThePresident has delegated this waiver authority to the US TradeRepresentative In acquisitions covered by the WTO GPAFree Trade Agreements or the Israeli Trade Act the USTRhas waived the Buy American Act and other discriminatoryprovisions for eligible products Offers of eligible productsreceive equal consideration with domestic offers

(2) The contracting officer shall determine the origin ofservices by the country in which the firm providing the ser-vices is established See Subpart 255 for evaluation proce-dures for supply contracts covered by trade agreements

(b) The value of the acquisition is a determining factor inthe applicability of trade agreements Most of these dollarthresholds are subject to revision by the US Trade Represen-tative approximately every 2 years The various thresholds aresummarized as follows

25403 World Trade Organization Government Procurement Agreement and Free Trade Agreements(a) Eligible products from WTO GPA and FTA countries

are entitled to the nondiscriminatory treatment specified in25402(a)(1) The WTO GPA and FTAs specify procurementprocedures designed to ensure fairness (see 25408)

(b) Thresholds (1) To determine whether the acquisitionof products by lease rental or lease-purchase contract(including lease-to-ownership or lease-with-option-to pur-chase) is covered by the WTO GPA or an FTA calculate theestimated acquisition value as follows

(i) If a fixed-term contract of 12 months or less iscontemplated use the total estimated value of the acquisition

(ii) If a fixed-term contract of more than 12 monthsis contemplated use the total estimated value of the acquisi-tion plus the estimated residual value of the leased equipmentat the conclusion of the contemplated term of the contract

(iii) If an indefinite-term contract is contemplateduse the estimated monthly payment multiplied by the totalnumber of months that ordering would be possible under theproposed contract ie the initial ordering period plus anyoptional ordering periods

(iv) If there is any doubt as to the contemplated termof the contract use the estimated monthly payment multipliedby 48

(2) The estimated value includes the value of alloptions

(3) If in any 12-month period recurring or multipleawards for the same type of product or products are antici-pated use the total estimated value of these projected awardsto determine whether the WTO GPA or an FTA applies Donot divide any acquisition with the intent of reducing the esti-mated value of the acquisition below the dollar threshold ofthe WTO GPA or an FTA

(c) Purchase restriction (1) Under the Trade AgreementsAct (19 USC 2512) in acquisitions covered by the WTOGPA acquire only US-made or designated country end prod-ucts or US or designated country services unless offers forsuch end products or services are either not received or areinsufficient to fulfill the requirements This purchase restric-tion does not apply below the WTO GPA threshold for sup-plies and services even if the acquisition is covered by anFTA

(2) This restriction does not apply to purchases of sup-plies by the Department of Defense from a country with whichit has entered into a reciprocal agreement as provided indepartmental regulations

25404 Least developed countriesFor acquisitions covered by the WTO GPA least devel-

oped country end products construction material and ser-vices must be treated as eligible products

Trade Agreement

Supply Contract

(equal to or exceeding)

Service Contract

(equal to or exceeding)

Construction Contract

(equal to or exceeding)

WTO GPA $203000 $203000 $7804000FTAs

Australia FTA 70079 70079 7804000Bahrain FTA 203000 203000 9110318CAFTA-DR (Costa Rica Dominican Republic El Salvador Guatemala Honduras and Nicaragua)

70079 70079 7804000

Chile FTA 70079 70079 7804000Morocco FTA 203000 203000 7804000NAFTAmdashCanada 25000 70079 9110318mdashMexico 70079 70079 9110318Oman FTA 203000 203000 9110318Peru FTA 203000 203000 7804000Singapore FTA 70079 70079 7804000

Israeli Trade Act 50000 mdash mdash

FAC 2005ndash43 JULY 2 2010

25405 FEDERAL ACQUISITION REGULATION

254-4

25405 Caribbean Basin Trade InitiativeUnder the Caribbean Basin Trade Initiative the United

States Trade Representative has determined that for acquisi-tions covered by the WTO GPA Caribbean Basin country endproducts construction material and services must be treatedas eligible products In accordance with Section 201 (a)(3) ofthe Dominican Republic-Central America-United States FreeTrade Implementation Act (Pub L 109-53) when theCAFTA-DR agreement enters into force with respect to acountry that country is no longer designated as a beneficiarycountry for purposes of the Caribbean Basin EconomicRecovery Act and is therefore no longer included in the def-inition of ldquoCaribbean Basin countryrdquo for purposes of the Car-ibbean Basin Trade Initiative

25406 Israeli Trade ActAcquisitions of supplies by most agencies are covered by

the Israeli Trade Act if the estimated value of the acquisitionis $50000 or more but does not exceed the WTO GPA thresh-old for supplies (see 25402(b)) Agencies other than theDepartment of Defense the Department of Energy theDepartment of Transportation the Bureau of Reclamation ofthe Department of the Interior the Federal Housing FinanceBoard and the Office of Thrift Supervision must evaluateoffers of Israeli end products without regard to the restrictionsof the Buy American Act The Israeli Trade Act does not pro-hibit the purchase of other foreign end products

25407 Agreement on Trade in Civil AircraftUnder the authority of Section 303 of the Trade Agree-

ments Act the US Trade Representative has waived the Buy

American Act for civil aircraft and related articles that meetthe substantial transformation test of the Trade AgreementsAct from countries that are parties to the Agreement on Tradein Civil Aircraft Those countries are Austria Belgium Bul-garia Canada Denmark Egypt Finland France GermanyGreece Ireland Italy Japan Luxembourg Macao the Neth-erlands Norway Portugal Romania Spain Sweden Swit-zerland and the United Kingdom

25408 Procedures(a) If the WTO GPA or an FTA applies (see 25401) the

contracting officer mustmdash(1) Comply with the requirements of 5203 Publicizing

and response time(2) Comply with the requirements of 5207 Preparation

and transmittal of synopses(3) Not include technical requirements in solicitations

solely to preclude the acquisition of eligible products(4) Specify in solicitations that offerors must submit

offers in the English language and in US dollars (see52214-34 Submission of Offers in the English Languageand 52214-35 Submission of Offers in US Currency orparagraph (c)(5) of 52215-1 Instruction to OfferorsmdashCom-petitive Acquisitions) and

(5) Provide unsuccessful offerors from WTO GPA orFTA countries notice in accordance with 14409-1 or 15503

(b) See Subpart 255 for evaluation procedures andexamples

SUBPART 255mdashEVALUATING FOREIGN OFFERSmdashSUPPLY CONTRACTS 25503

255-1

Subpart 255mdashEvaluating Foreign OffersmdashSupply Contracts

25501 GeneralThe contracting officermdash(a) Must apply the evaluation procedures of this subpart to

each line item of an offer unless either the offer or the solici-tation specifies evaluation on a group basis (see 25503)

(b) May rely on the offerorrsquos certification of end productorigin when evaluating a foreign offer

(c) Must identify and reject offers of end products that areprohibited in accordance with Subpart 257 and

(d) Must not use the Buy American Act evaluation factorsprescribed in this subpart to provide a preference for one for-eign offer over another foreign offer

25502 Application(a) Unless otherwise specified in agency regulations per-

form the following steps in the order presented(1) Eliminate all offers or offerors that are unacceptable

for reasons other than price eg nonresponsive debarred orsuspended or a prohibited source (see Subpart 257)

(2) Rank the remaining offers by price(3) If the solicitation specifies award on the basis of fac-

tors in addition to cost or price apply the evaluation factorsas specified in this section and use the evaluated cost or pricein determining the offer that represents the best value to theGovernment

(b) For acquisitions covered by the WTO GPA (seeSubpart 254)mdash

(1) Consider only offers of US-made or designatedcountry end products unless no offers of such end productswere received

(2) If the agency gives the same consideration given eli-gible offers to offers of US-made end products that are notdomestic end products award on the low offer Otherwiseevaluate in accordance with agency procedures and

(3) If there were no offers of US-made or designatedcountry end products make a nonavailability determination(see 25103(b)(2)) and award on the low offer (see 25403(c))

(c) For acquisitions not covered by the WTO GPA but sub-ject to the Buy American Act (an FTA or the Israeli Trade Actalso may apply) the following applies

(1) If the low offer is a domestic offer or an eligible offerunder an FTA or the Israeli Trade Act award on that offer

(2) If the low offer is a noneligible offer and there wereno domestic offers (see 25103(b)(3)) award on the low offer

(3) If the low offer is a noneligible offer and there is aneligible offer that is lower than the lowest domestic offeraward on the low offer The Buy American Act provides anevaluation preference only for domestic offers

(4) Otherwise apply the appropriate evaluation factorprovided in 25105 to the low offer

(i) If the evaluated price of the low offer remains lessthan the lowest domestic offer award on the low offer

(ii) If the price of the lowest domestic offer is lessthan the evaluated price of the low offer award on the lowestdomestic offer

(d) Ties (1) If application of an evaluation factor results ina tie between a domestic offer and a foreign offer award onthe domestic offer

(2) If no evaluation preference was applied (ie offersafforded nondiscriminatory treatment under the Buy Ameri-can Act) resolve ties between domestic and foreign offers bya witnessed drawing of lots by an impartial individual

(3) Resolve ties between foreign offers from small busi-ness concerns (under the Buy American Act a small businessoffering a manufactured article that does not meet the defini-tion of ldquodomestic end productrdquo is a foreign offer) or foreignoffers from a small business concern and a large business con-cern in accordance with 14408-6(a)

25503 Group offers(a) If the solicitation or an offer specifies that award can be

made only on a group of line items or on all line items con-tained in the solicitation or offer reject the offermdash

(1) If any part of the award would consist of prohibitedend products (see Subpart 257) or

(2) If the acquisition is covered by the WTO GPA andany part of the offer consists of items restricted in accordancewith 22403(c)

(b) If an offer restricts award to a group of line items or toall line items contained in the offer determine for each lineitem whether to apply an evaluation factor (see 25504-4Example 1)

(1) First evaluate offers that do not specify an awardrestriction on a line item basis in accordance with 25502determining a tentative award pattern by selecting for eachline item the offer with the lowest evaluated price

(2) Evaluate an offer that specifies an award restrictionagainst the offered prices of the tentative award pattern apply-ing the appropriate evaluation factor on a line item basis

(3) Compute the total evaluated price for the tentativeaward pattern and the offer that specified an award restriction

(4) Unless the total evaluated price of the offer thatspecified an award restriction is less than the total evaluatedprice of the tentative award pattern award based on the ten-tative award pattern

(c) If the solicitation specifies that award will be made onlyon a group of line items or all line items contained in the solic-itation determine the category of end products on the basis ofeach line item but determine whether to apply an evaluationfactor on the basis of the group of items (see 25504-4 Exam-ple 2)

(1) If the proposed price of domestic end productsexceeds 50 percent of the total proposed price of the group

FAC 2005ndash09 APRIL 19 2006

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 14: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

221504 FEDERAL ACQUISITION REGULATION

2215-2

221504 Violations and remedies(a) Violations The Government may impose remedies set

forth in paragraph (b) of this section for the following viola-tions (note that the violations in paragraphs (a)(3) and (a)(4)of this section go beyond violations of the requirements relat-ing to certification of end products) (see 221503)

(1) The contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor

(2) The contractor has failed to cooperate as required inaccordance with the clause at 52222-19 Child Labor Coop-eration with Authorities and Remedies with an investigationof the use of forced or indentured child labor by an InspectorGeneral the Attorney General or the Secretary of theTreasury

(3) The contractor uses forced or indentured child laborin its mining production or manufacturing processes

(4) The contractor has furnished an end product or com-ponent mined produced or manufactured wholly or in partby forced or indentured child labor Remedies inparagraphs (b)(2) and (b)(3) of this section are inappropriateunless the contractor knew of the violation

(b) Remedies (1) The contracting officer may terminatethe contract

(2) The suspending official may suspend the contractorin accordance with the procedures in Subpart 94

(3) The debarring official may debar the contractor fora period not to exceed 3 years in accordance with the proce-dures in Subpart 94

221505 Solicitation provision and contract clause(a) Except as provided in paragraph (b) of 221503 insert

the provision at 52222-18 Certification Regarding Knowl-edge of Child Labor for Listed End Products in all solicita-tions that are expected to exceed the micro-purchase thresholdand are for the acquisition of end products (regardless of coun-try of origin) of a type identified by country of origin on theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor except solicitations forcommercial items that include the provision at 52212-3 Off-eror Representations and CertificationsmdashCommercial ItemsThe contracting officer must identify in paragraph (b) of theprovision at 52222-18 Certification Regarding Knowledgeof Child Labor for Listed End Products or paragraph (i)(1) ofthe provision at 52212-3 any applicable end products andcountries of origin from the List For solicitations estimatedto equal or exceed $25000 the contracting officer mustexclude from the List in the solicitation end products from anycountries identified at 221503(b) in accordance with thespecified thresholds

(b) Insert the clause at 52222-19 Child LabormdashCoopera-tion with Authorities and Remedies in all solicitations andcontracts for the acquisition of supplies that are expected toexceed the micro-purchase thresholds

SUBPART 252mdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25205

252-1

Subpart 252mdashBuy American ActmdashConstruction Materials

25200 Scope of Subpart(a) This subpart implementsmdash

(1) The Buy American Act (41 USC 10a - 10d)(2) Executive Order 10582 December 17 1954 and(3) Waiver of the component test of the Buy American

Act for acquisitions of commercially available off-the-shelf(COTS) items in accordance with 41 USC 431

(b) It applies to contracts for the construction alteration orrepair of any public building or public work in the UnitedStates

(c) When using funds appropriated or otherwise providedby the American Recovery and Reinvestment Act of 2009(Pub L 111-5) (Recovery Act) for construction seeSubpart 256

25201 PolicyExcept as provided in 25202 use only domestic construc-

tion materials in construction contracts performed in theUnited States

25202 Exceptions(a) When one of the following exceptions applies the con-

tracting officer may acquire foreign construction materialswithout regard to the restrictions of the Buy American Act

(1) Impracticable or inconsistent with public interestThe head of the agency may determine that application of therestrictions of the Buy American Act to a particular construc-tion material would be impracticable or would be inconsistentwith the public interest The public interest exception applieswhen an agency has an agreement with a foreign governmentthat provides a blanket exception to the Buy American Act

(2) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(3) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25204

(b) Determination and findings When a determination ismade for any of the reasons stated in this section that certainforeign construction materials may be used the contractingofficer must list the excepted materials in the contract Theagency must make the findings justifying the exception avail-able for public inspection

(c) Acquisitions under trade agreements For constructioncontracts with an estimated acquisition value of $7804000 ormore see Subpart 254

25203 Preaward determinations(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of the Buy American Act for specifically identified con-struction materials The time for submitting the request isspecified in the solicitation in paragraph (b) of either52225-10 or 52225-12 whichever applies The informationand supporting data that must be included in the request arealso specified in the solicitation in paragraphs (c) and (d) ofeither 52225-9 or 52225-11 whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily availableinformation

25204 Evaluating offers of foreign construction material(a) Offerors proposing to use foreign construction material

other than that listed by the Government in the applicableclause at 52225-9 paragraph (b)(2) or 52225-11paragraph (b)(3) or covered by the WTO GPA or a Free TradeAgreement (paragraph (b)(2) of 52225-11) must provide theinformation required by paragraphs (c) and (d) of the respec-tive clauses

(b) Unless the head of the agency specifies a higher per-centage the contracting officer must add to the offered price6 percent of the cost of any foreign construction material pro-posed for exception from the requirements of the Buy Amer-ican Act based on the unreasonable cost of domesticconstruction materials In the case of a tie the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(2) of52225-9 or paragraph (b)(3) of 52225-11) the contractingofficer must add the excepted materials to the list in the con-tract clause

25205 Postaward determinations(a) If a contractor requests a determination regarding the

inapplicability of the Buy American Act after contract awardthe contractor must explain why it could not request the deter-mination before contract award or why the need for such

FAC 2005ndash43 JULY 2 2010

25206 FEDERAL ACQUISITION REGULATION

252-2

determination otherwise was not reasonably foreseeable Ifthe contracting officer concludes that the contractor shouldhave made the request before contract award the contractingofficer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability of theBuy American Act made after contract award on informationrequired by paragraphs (c) and (d) of the applicable clause at52225-9 or 52225-11 andor other readily availableinformation

(c) If a determination under 25202(a) is made after con-tract award that an exception to the Buy American Actapplies the contracting officer must negotiate adequate con-sideration and modify the contract to allow use of the foreignconstruction material When the basis for the exception is theunreasonable price of a domestic construction material ade-quate consideration is at least the differential established in25202(a) or in accordance with agency procedures

25206 NoncomplianceThe contracting officer mustmdash(a) Review allegations of Buy American Act violations(b) Unless fraud is suspected notify the contractor of the

apparent unauthorized use of foreign construction materialand request a reply to include proposed corrective action and

(c) If the review reveals that a contractor or subcontractorhas used foreign construction material without authorizationtake appropriate action including one or more of thefollowing

(1) Process a determination concerning the inapplica-bility of the Buy American Act in accordance with 25205

(2) Consider requiring the removal and replacement ofthe unauthorized foreign construction material

(3) If removal and replacement of foreign constructionmaterial incorporated in a building or work would be imprac-ticable cause undue delay or otherwise be detrimental to theinterests of the Government the contracting officer maydetermine in writing that the foreign construction materialneed not be removed and replaced A determination to retainforeign construction material does not constitute a determina-tion that an exception to the Buy American Act applies andthis should be stated in the determination Further a determi-nation to retain foreign construction material does not affectthe Governmentrsquos right to suspend or debar a contractor sub-contractor or supplier for violation of the Buy American Actor to exercise other contractual rights and remedies such asreducing the contract price or terminating the contract fordefault

(4) If the noncompliance is sufficiently serious con-sider exercising appropriate contractual remedies such as ter-minating the contract for default Also consider preparing andforwarding a report to the agency suspending or debarringofficial in accordance with Subpart 94 If the noncomplianceappears to be fraudulent refer the matter to other appropriateagency officials such as the officer responsible for criminalinvestigation

SUBPART 254mdashTRADE AGREEMENTS 25404

254-3

25402 General(a)(1) The Trade Agreements Act (19 USC 2501 et seq)

provides the authority for the President to waive the BuyAmerican Act and other discriminatory provisions for eligibleproducts from countries that have signed an internationaltrade agreement with the United States or that meet certainother criteria such as being a least developed country ThePresident has delegated this waiver authority to the US TradeRepresentative In acquisitions covered by the WTO GPAFree Trade Agreements or the Israeli Trade Act the USTRhas waived the Buy American Act and other discriminatoryprovisions for eligible products Offers of eligible productsreceive equal consideration with domestic offers

(2) The contracting officer shall determine the origin ofservices by the country in which the firm providing the ser-vices is established See Subpart 255 for evaluation proce-dures for supply contracts covered by trade agreements

(b) The value of the acquisition is a determining factor inthe applicability of trade agreements Most of these dollarthresholds are subject to revision by the US Trade Represen-tative approximately every 2 years The various thresholds aresummarized as follows

25403 World Trade Organization Government Procurement Agreement and Free Trade Agreements(a) Eligible products from WTO GPA and FTA countries

are entitled to the nondiscriminatory treatment specified in25402(a)(1) The WTO GPA and FTAs specify procurementprocedures designed to ensure fairness (see 25408)

(b) Thresholds (1) To determine whether the acquisitionof products by lease rental or lease-purchase contract(including lease-to-ownership or lease-with-option-to pur-chase) is covered by the WTO GPA or an FTA calculate theestimated acquisition value as follows

(i) If a fixed-term contract of 12 months or less iscontemplated use the total estimated value of the acquisition

(ii) If a fixed-term contract of more than 12 monthsis contemplated use the total estimated value of the acquisi-tion plus the estimated residual value of the leased equipmentat the conclusion of the contemplated term of the contract

(iii) If an indefinite-term contract is contemplateduse the estimated monthly payment multiplied by the totalnumber of months that ordering would be possible under theproposed contract ie the initial ordering period plus anyoptional ordering periods

(iv) If there is any doubt as to the contemplated termof the contract use the estimated monthly payment multipliedby 48

(2) The estimated value includes the value of alloptions

(3) If in any 12-month period recurring or multipleawards for the same type of product or products are antici-pated use the total estimated value of these projected awardsto determine whether the WTO GPA or an FTA applies Donot divide any acquisition with the intent of reducing the esti-mated value of the acquisition below the dollar threshold ofthe WTO GPA or an FTA

(c) Purchase restriction (1) Under the Trade AgreementsAct (19 USC 2512) in acquisitions covered by the WTOGPA acquire only US-made or designated country end prod-ucts or US or designated country services unless offers forsuch end products or services are either not received or areinsufficient to fulfill the requirements This purchase restric-tion does not apply below the WTO GPA threshold for sup-plies and services even if the acquisition is covered by anFTA

(2) This restriction does not apply to purchases of sup-plies by the Department of Defense from a country with whichit has entered into a reciprocal agreement as provided indepartmental regulations

25404 Least developed countriesFor acquisitions covered by the WTO GPA least devel-

oped country end products construction material and ser-vices must be treated as eligible products

Trade Agreement

Supply Contract

(equal to or exceeding)

Service Contract

(equal to or exceeding)

Construction Contract

(equal to or exceeding)

WTO GPA $203000 $203000 $7804000FTAs

Australia FTA 70079 70079 7804000Bahrain FTA 203000 203000 9110318CAFTA-DR (Costa Rica Dominican Republic El Salvador Guatemala Honduras and Nicaragua)

70079 70079 7804000

Chile FTA 70079 70079 7804000Morocco FTA 203000 203000 7804000NAFTAmdashCanada 25000 70079 9110318mdashMexico 70079 70079 9110318Oman FTA 203000 203000 9110318Peru FTA 203000 203000 7804000Singapore FTA 70079 70079 7804000

Israeli Trade Act 50000 mdash mdash

FAC 2005ndash43 JULY 2 2010

25405 FEDERAL ACQUISITION REGULATION

254-4

25405 Caribbean Basin Trade InitiativeUnder the Caribbean Basin Trade Initiative the United

States Trade Representative has determined that for acquisi-tions covered by the WTO GPA Caribbean Basin country endproducts construction material and services must be treatedas eligible products In accordance with Section 201 (a)(3) ofthe Dominican Republic-Central America-United States FreeTrade Implementation Act (Pub L 109-53) when theCAFTA-DR agreement enters into force with respect to acountry that country is no longer designated as a beneficiarycountry for purposes of the Caribbean Basin EconomicRecovery Act and is therefore no longer included in the def-inition of ldquoCaribbean Basin countryrdquo for purposes of the Car-ibbean Basin Trade Initiative

25406 Israeli Trade ActAcquisitions of supplies by most agencies are covered by

the Israeli Trade Act if the estimated value of the acquisitionis $50000 or more but does not exceed the WTO GPA thresh-old for supplies (see 25402(b)) Agencies other than theDepartment of Defense the Department of Energy theDepartment of Transportation the Bureau of Reclamation ofthe Department of the Interior the Federal Housing FinanceBoard and the Office of Thrift Supervision must evaluateoffers of Israeli end products without regard to the restrictionsof the Buy American Act The Israeli Trade Act does not pro-hibit the purchase of other foreign end products

25407 Agreement on Trade in Civil AircraftUnder the authority of Section 303 of the Trade Agree-

ments Act the US Trade Representative has waived the Buy

American Act for civil aircraft and related articles that meetthe substantial transformation test of the Trade AgreementsAct from countries that are parties to the Agreement on Tradein Civil Aircraft Those countries are Austria Belgium Bul-garia Canada Denmark Egypt Finland France GermanyGreece Ireland Italy Japan Luxembourg Macao the Neth-erlands Norway Portugal Romania Spain Sweden Swit-zerland and the United Kingdom

25408 Procedures(a) If the WTO GPA or an FTA applies (see 25401) the

contracting officer mustmdash(1) Comply with the requirements of 5203 Publicizing

and response time(2) Comply with the requirements of 5207 Preparation

and transmittal of synopses(3) Not include technical requirements in solicitations

solely to preclude the acquisition of eligible products(4) Specify in solicitations that offerors must submit

offers in the English language and in US dollars (see52214-34 Submission of Offers in the English Languageand 52214-35 Submission of Offers in US Currency orparagraph (c)(5) of 52215-1 Instruction to OfferorsmdashCom-petitive Acquisitions) and

(5) Provide unsuccessful offerors from WTO GPA orFTA countries notice in accordance with 14409-1 or 15503

(b) See Subpart 255 for evaluation procedures andexamples

SUBPART 255mdashEVALUATING FOREIGN OFFERSmdashSUPPLY CONTRACTS 25503

255-1

Subpart 255mdashEvaluating Foreign OffersmdashSupply Contracts

25501 GeneralThe contracting officermdash(a) Must apply the evaluation procedures of this subpart to

each line item of an offer unless either the offer or the solici-tation specifies evaluation on a group basis (see 25503)

(b) May rely on the offerorrsquos certification of end productorigin when evaluating a foreign offer

(c) Must identify and reject offers of end products that areprohibited in accordance with Subpart 257 and

(d) Must not use the Buy American Act evaluation factorsprescribed in this subpart to provide a preference for one for-eign offer over another foreign offer

25502 Application(a) Unless otherwise specified in agency regulations per-

form the following steps in the order presented(1) Eliminate all offers or offerors that are unacceptable

for reasons other than price eg nonresponsive debarred orsuspended or a prohibited source (see Subpart 257)

(2) Rank the remaining offers by price(3) If the solicitation specifies award on the basis of fac-

tors in addition to cost or price apply the evaluation factorsas specified in this section and use the evaluated cost or pricein determining the offer that represents the best value to theGovernment

(b) For acquisitions covered by the WTO GPA (seeSubpart 254)mdash

(1) Consider only offers of US-made or designatedcountry end products unless no offers of such end productswere received

(2) If the agency gives the same consideration given eli-gible offers to offers of US-made end products that are notdomestic end products award on the low offer Otherwiseevaluate in accordance with agency procedures and

(3) If there were no offers of US-made or designatedcountry end products make a nonavailability determination(see 25103(b)(2)) and award on the low offer (see 25403(c))

(c) For acquisitions not covered by the WTO GPA but sub-ject to the Buy American Act (an FTA or the Israeli Trade Actalso may apply) the following applies

(1) If the low offer is a domestic offer or an eligible offerunder an FTA or the Israeli Trade Act award on that offer

(2) If the low offer is a noneligible offer and there wereno domestic offers (see 25103(b)(3)) award on the low offer

(3) If the low offer is a noneligible offer and there is aneligible offer that is lower than the lowest domestic offeraward on the low offer The Buy American Act provides anevaluation preference only for domestic offers

(4) Otherwise apply the appropriate evaluation factorprovided in 25105 to the low offer

(i) If the evaluated price of the low offer remains lessthan the lowest domestic offer award on the low offer

(ii) If the price of the lowest domestic offer is lessthan the evaluated price of the low offer award on the lowestdomestic offer

(d) Ties (1) If application of an evaluation factor results ina tie between a domestic offer and a foreign offer award onthe domestic offer

(2) If no evaluation preference was applied (ie offersafforded nondiscriminatory treatment under the Buy Ameri-can Act) resolve ties between domestic and foreign offers bya witnessed drawing of lots by an impartial individual

(3) Resolve ties between foreign offers from small busi-ness concerns (under the Buy American Act a small businessoffering a manufactured article that does not meet the defini-tion of ldquodomestic end productrdquo is a foreign offer) or foreignoffers from a small business concern and a large business con-cern in accordance with 14408-6(a)

25503 Group offers(a) If the solicitation or an offer specifies that award can be

made only on a group of line items or on all line items con-tained in the solicitation or offer reject the offermdash

(1) If any part of the award would consist of prohibitedend products (see Subpart 257) or

(2) If the acquisition is covered by the WTO GPA andany part of the offer consists of items restricted in accordancewith 22403(c)

(b) If an offer restricts award to a group of line items or toall line items contained in the offer determine for each lineitem whether to apply an evaluation factor (see 25504-4Example 1)

(1) First evaluate offers that do not specify an awardrestriction on a line item basis in accordance with 25502determining a tentative award pattern by selecting for eachline item the offer with the lowest evaluated price

(2) Evaluate an offer that specifies an award restrictionagainst the offered prices of the tentative award pattern apply-ing the appropriate evaluation factor on a line item basis

(3) Compute the total evaluated price for the tentativeaward pattern and the offer that specified an award restriction

(4) Unless the total evaluated price of the offer thatspecified an award restriction is less than the total evaluatedprice of the tentative award pattern award based on the ten-tative award pattern

(c) If the solicitation specifies that award will be made onlyon a group of line items or all line items contained in the solic-itation determine the category of end products on the basis ofeach line item but determine whether to apply an evaluationfactor on the basis of the group of items (see 25504-4 Exam-ple 2)

(1) If the proposed price of domestic end productsexceeds 50 percent of the total proposed price of the group

FAC 2005ndash09 APRIL 19 2006

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 15: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

SUBPART 252mdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25205

252-1

Subpart 252mdashBuy American ActmdashConstruction Materials

25200 Scope of Subpart(a) This subpart implementsmdash

(1) The Buy American Act (41 USC 10a - 10d)(2) Executive Order 10582 December 17 1954 and(3) Waiver of the component test of the Buy American

Act for acquisitions of commercially available off-the-shelf(COTS) items in accordance with 41 USC 431

(b) It applies to contracts for the construction alteration orrepair of any public building or public work in the UnitedStates

(c) When using funds appropriated or otherwise providedby the American Recovery and Reinvestment Act of 2009(Pub L 111-5) (Recovery Act) for construction seeSubpart 256

25201 PolicyExcept as provided in 25202 use only domestic construc-

tion materials in construction contracts performed in theUnited States

25202 Exceptions(a) When one of the following exceptions applies the con-

tracting officer may acquire foreign construction materialswithout regard to the restrictions of the Buy American Act

(1) Impracticable or inconsistent with public interestThe head of the agency may determine that application of therestrictions of the Buy American Act to a particular construc-tion material would be impracticable or would be inconsistentwith the public interest The public interest exception applieswhen an agency has an agreement with a foreign governmentthat provides a blanket exception to the Buy American Act

(2) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(3) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25204

(b) Determination and findings When a determination ismade for any of the reasons stated in this section that certainforeign construction materials may be used the contractingofficer must list the excepted materials in the contract Theagency must make the findings justifying the exception avail-able for public inspection

(c) Acquisitions under trade agreements For constructioncontracts with an estimated acquisition value of $7804000 ormore see Subpart 254

25203 Preaward determinations(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of the Buy American Act for specifically identified con-struction materials The time for submitting the request isspecified in the solicitation in paragraph (b) of either52225-10 or 52225-12 whichever applies The informationand supporting data that must be included in the request arealso specified in the solicitation in paragraphs (c) and (d) ofeither 52225-9 or 52225-11 whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily availableinformation

25204 Evaluating offers of foreign construction material(a) Offerors proposing to use foreign construction material

other than that listed by the Government in the applicableclause at 52225-9 paragraph (b)(2) or 52225-11paragraph (b)(3) or covered by the WTO GPA or a Free TradeAgreement (paragraph (b)(2) of 52225-11) must provide theinformation required by paragraphs (c) and (d) of the respec-tive clauses

(b) Unless the head of the agency specifies a higher per-centage the contracting officer must add to the offered price6 percent of the cost of any foreign construction material pro-posed for exception from the requirements of the Buy Amer-ican Act based on the unreasonable cost of domesticconstruction materials In the case of a tie the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(2) of52225-9 or paragraph (b)(3) of 52225-11) the contractingofficer must add the excepted materials to the list in the con-tract clause

25205 Postaward determinations(a) If a contractor requests a determination regarding the

inapplicability of the Buy American Act after contract awardthe contractor must explain why it could not request the deter-mination before contract award or why the need for such

FAC 2005ndash43 JULY 2 2010

25206 FEDERAL ACQUISITION REGULATION

252-2

determination otherwise was not reasonably foreseeable Ifthe contracting officer concludes that the contractor shouldhave made the request before contract award the contractingofficer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability of theBuy American Act made after contract award on informationrequired by paragraphs (c) and (d) of the applicable clause at52225-9 or 52225-11 andor other readily availableinformation

(c) If a determination under 25202(a) is made after con-tract award that an exception to the Buy American Actapplies the contracting officer must negotiate adequate con-sideration and modify the contract to allow use of the foreignconstruction material When the basis for the exception is theunreasonable price of a domestic construction material ade-quate consideration is at least the differential established in25202(a) or in accordance with agency procedures

25206 NoncomplianceThe contracting officer mustmdash(a) Review allegations of Buy American Act violations(b) Unless fraud is suspected notify the contractor of the

apparent unauthorized use of foreign construction materialand request a reply to include proposed corrective action and

(c) If the review reveals that a contractor or subcontractorhas used foreign construction material without authorizationtake appropriate action including one or more of thefollowing

(1) Process a determination concerning the inapplica-bility of the Buy American Act in accordance with 25205

(2) Consider requiring the removal and replacement ofthe unauthorized foreign construction material

(3) If removal and replacement of foreign constructionmaterial incorporated in a building or work would be imprac-ticable cause undue delay or otherwise be detrimental to theinterests of the Government the contracting officer maydetermine in writing that the foreign construction materialneed not be removed and replaced A determination to retainforeign construction material does not constitute a determina-tion that an exception to the Buy American Act applies andthis should be stated in the determination Further a determi-nation to retain foreign construction material does not affectthe Governmentrsquos right to suspend or debar a contractor sub-contractor or supplier for violation of the Buy American Actor to exercise other contractual rights and remedies such asreducing the contract price or terminating the contract fordefault

(4) If the noncompliance is sufficiently serious con-sider exercising appropriate contractual remedies such as ter-minating the contract for default Also consider preparing andforwarding a report to the agency suspending or debarringofficial in accordance with Subpart 94 If the noncomplianceappears to be fraudulent refer the matter to other appropriateagency officials such as the officer responsible for criminalinvestigation

SUBPART 254mdashTRADE AGREEMENTS 25404

254-3

25402 General(a)(1) The Trade Agreements Act (19 USC 2501 et seq)

provides the authority for the President to waive the BuyAmerican Act and other discriminatory provisions for eligibleproducts from countries that have signed an internationaltrade agreement with the United States or that meet certainother criteria such as being a least developed country ThePresident has delegated this waiver authority to the US TradeRepresentative In acquisitions covered by the WTO GPAFree Trade Agreements or the Israeli Trade Act the USTRhas waived the Buy American Act and other discriminatoryprovisions for eligible products Offers of eligible productsreceive equal consideration with domestic offers

(2) The contracting officer shall determine the origin ofservices by the country in which the firm providing the ser-vices is established See Subpart 255 for evaluation proce-dures for supply contracts covered by trade agreements

(b) The value of the acquisition is a determining factor inthe applicability of trade agreements Most of these dollarthresholds are subject to revision by the US Trade Represen-tative approximately every 2 years The various thresholds aresummarized as follows

25403 World Trade Organization Government Procurement Agreement and Free Trade Agreements(a) Eligible products from WTO GPA and FTA countries

are entitled to the nondiscriminatory treatment specified in25402(a)(1) The WTO GPA and FTAs specify procurementprocedures designed to ensure fairness (see 25408)

(b) Thresholds (1) To determine whether the acquisitionof products by lease rental or lease-purchase contract(including lease-to-ownership or lease-with-option-to pur-chase) is covered by the WTO GPA or an FTA calculate theestimated acquisition value as follows

(i) If a fixed-term contract of 12 months or less iscontemplated use the total estimated value of the acquisition

(ii) If a fixed-term contract of more than 12 monthsis contemplated use the total estimated value of the acquisi-tion plus the estimated residual value of the leased equipmentat the conclusion of the contemplated term of the contract

(iii) If an indefinite-term contract is contemplateduse the estimated monthly payment multiplied by the totalnumber of months that ordering would be possible under theproposed contract ie the initial ordering period plus anyoptional ordering periods

(iv) If there is any doubt as to the contemplated termof the contract use the estimated monthly payment multipliedby 48

(2) The estimated value includes the value of alloptions

(3) If in any 12-month period recurring or multipleawards for the same type of product or products are antici-pated use the total estimated value of these projected awardsto determine whether the WTO GPA or an FTA applies Donot divide any acquisition with the intent of reducing the esti-mated value of the acquisition below the dollar threshold ofthe WTO GPA or an FTA

(c) Purchase restriction (1) Under the Trade AgreementsAct (19 USC 2512) in acquisitions covered by the WTOGPA acquire only US-made or designated country end prod-ucts or US or designated country services unless offers forsuch end products or services are either not received or areinsufficient to fulfill the requirements This purchase restric-tion does not apply below the WTO GPA threshold for sup-plies and services even if the acquisition is covered by anFTA

(2) This restriction does not apply to purchases of sup-plies by the Department of Defense from a country with whichit has entered into a reciprocal agreement as provided indepartmental regulations

25404 Least developed countriesFor acquisitions covered by the WTO GPA least devel-

oped country end products construction material and ser-vices must be treated as eligible products

Trade Agreement

Supply Contract

(equal to or exceeding)

Service Contract

(equal to or exceeding)

Construction Contract

(equal to or exceeding)

WTO GPA $203000 $203000 $7804000FTAs

Australia FTA 70079 70079 7804000Bahrain FTA 203000 203000 9110318CAFTA-DR (Costa Rica Dominican Republic El Salvador Guatemala Honduras and Nicaragua)

70079 70079 7804000

Chile FTA 70079 70079 7804000Morocco FTA 203000 203000 7804000NAFTAmdashCanada 25000 70079 9110318mdashMexico 70079 70079 9110318Oman FTA 203000 203000 9110318Peru FTA 203000 203000 7804000Singapore FTA 70079 70079 7804000

Israeli Trade Act 50000 mdash mdash

FAC 2005ndash43 JULY 2 2010

25405 FEDERAL ACQUISITION REGULATION

254-4

25405 Caribbean Basin Trade InitiativeUnder the Caribbean Basin Trade Initiative the United

States Trade Representative has determined that for acquisi-tions covered by the WTO GPA Caribbean Basin country endproducts construction material and services must be treatedas eligible products In accordance with Section 201 (a)(3) ofthe Dominican Republic-Central America-United States FreeTrade Implementation Act (Pub L 109-53) when theCAFTA-DR agreement enters into force with respect to acountry that country is no longer designated as a beneficiarycountry for purposes of the Caribbean Basin EconomicRecovery Act and is therefore no longer included in the def-inition of ldquoCaribbean Basin countryrdquo for purposes of the Car-ibbean Basin Trade Initiative

25406 Israeli Trade ActAcquisitions of supplies by most agencies are covered by

the Israeli Trade Act if the estimated value of the acquisitionis $50000 or more but does not exceed the WTO GPA thresh-old for supplies (see 25402(b)) Agencies other than theDepartment of Defense the Department of Energy theDepartment of Transportation the Bureau of Reclamation ofthe Department of the Interior the Federal Housing FinanceBoard and the Office of Thrift Supervision must evaluateoffers of Israeli end products without regard to the restrictionsof the Buy American Act The Israeli Trade Act does not pro-hibit the purchase of other foreign end products

25407 Agreement on Trade in Civil AircraftUnder the authority of Section 303 of the Trade Agree-

ments Act the US Trade Representative has waived the Buy

American Act for civil aircraft and related articles that meetthe substantial transformation test of the Trade AgreementsAct from countries that are parties to the Agreement on Tradein Civil Aircraft Those countries are Austria Belgium Bul-garia Canada Denmark Egypt Finland France GermanyGreece Ireland Italy Japan Luxembourg Macao the Neth-erlands Norway Portugal Romania Spain Sweden Swit-zerland and the United Kingdom

25408 Procedures(a) If the WTO GPA or an FTA applies (see 25401) the

contracting officer mustmdash(1) Comply with the requirements of 5203 Publicizing

and response time(2) Comply with the requirements of 5207 Preparation

and transmittal of synopses(3) Not include technical requirements in solicitations

solely to preclude the acquisition of eligible products(4) Specify in solicitations that offerors must submit

offers in the English language and in US dollars (see52214-34 Submission of Offers in the English Languageand 52214-35 Submission of Offers in US Currency orparagraph (c)(5) of 52215-1 Instruction to OfferorsmdashCom-petitive Acquisitions) and

(5) Provide unsuccessful offerors from WTO GPA orFTA countries notice in accordance with 14409-1 or 15503

(b) See Subpart 255 for evaluation procedures andexamples

SUBPART 255mdashEVALUATING FOREIGN OFFERSmdashSUPPLY CONTRACTS 25503

255-1

Subpart 255mdashEvaluating Foreign OffersmdashSupply Contracts

25501 GeneralThe contracting officermdash(a) Must apply the evaluation procedures of this subpart to

each line item of an offer unless either the offer or the solici-tation specifies evaluation on a group basis (see 25503)

(b) May rely on the offerorrsquos certification of end productorigin when evaluating a foreign offer

(c) Must identify and reject offers of end products that areprohibited in accordance with Subpart 257 and

(d) Must not use the Buy American Act evaluation factorsprescribed in this subpart to provide a preference for one for-eign offer over another foreign offer

25502 Application(a) Unless otherwise specified in agency regulations per-

form the following steps in the order presented(1) Eliminate all offers or offerors that are unacceptable

for reasons other than price eg nonresponsive debarred orsuspended or a prohibited source (see Subpart 257)

(2) Rank the remaining offers by price(3) If the solicitation specifies award on the basis of fac-

tors in addition to cost or price apply the evaluation factorsas specified in this section and use the evaluated cost or pricein determining the offer that represents the best value to theGovernment

(b) For acquisitions covered by the WTO GPA (seeSubpart 254)mdash

(1) Consider only offers of US-made or designatedcountry end products unless no offers of such end productswere received

(2) If the agency gives the same consideration given eli-gible offers to offers of US-made end products that are notdomestic end products award on the low offer Otherwiseevaluate in accordance with agency procedures and

(3) If there were no offers of US-made or designatedcountry end products make a nonavailability determination(see 25103(b)(2)) and award on the low offer (see 25403(c))

(c) For acquisitions not covered by the WTO GPA but sub-ject to the Buy American Act (an FTA or the Israeli Trade Actalso may apply) the following applies

(1) If the low offer is a domestic offer or an eligible offerunder an FTA or the Israeli Trade Act award on that offer

(2) If the low offer is a noneligible offer and there wereno domestic offers (see 25103(b)(3)) award on the low offer

(3) If the low offer is a noneligible offer and there is aneligible offer that is lower than the lowest domestic offeraward on the low offer The Buy American Act provides anevaluation preference only for domestic offers

(4) Otherwise apply the appropriate evaluation factorprovided in 25105 to the low offer

(i) If the evaluated price of the low offer remains lessthan the lowest domestic offer award on the low offer

(ii) If the price of the lowest domestic offer is lessthan the evaluated price of the low offer award on the lowestdomestic offer

(d) Ties (1) If application of an evaluation factor results ina tie between a domestic offer and a foreign offer award onthe domestic offer

(2) If no evaluation preference was applied (ie offersafforded nondiscriminatory treatment under the Buy Ameri-can Act) resolve ties between domestic and foreign offers bya witnessed drawing of lots by an impartial individual

(3) Resolve ties between foreign offers from small busi-ness concerns (under the Buy American Act a small businessoffering a manufactured article that does not meet the defini-tion of ldquodomestic end productrdquo is a foreign offer) or foreignoffers from a small business concern and a large business con-cern in accordance with 14408-6(a)

25503 Group offers(a) If the solicitation or an offer specifies that award can be

made only on a group of line items or on all line items con-tained in the solicitation or offer reject the offermdash

(1) If any part of the award would consist of prohibitedend products (see Subpart 257) or

(2) If the acquisition is covered by the WTO GPA andany part of the offer consists of items restricted in accordancewith 22403(c)

(b) If an offer restricts award to a group of line items or toall line items contained in the offer determine for each lineitem whether to apply an evaluation factor (see 25504-4Example 1)

(1) First evaluate offers that do not specify an awardrestriction on a line item basis in accordance with 25502determining a tentative award pattern by selecting for eachline item the offer with the lowest evaluated price

(2) Evaluate an offer that specifies an award restrictionagainst the offered prices of the tentative award pattern apply-ing the appropriate evaluation factor on a line item basis

(3) Compute the total evaluated price for the tentativeaward pattern and the offer that specified an award restriction

(4) Unless the total evaluated price of the offer thatspecified an award restriction is less than the total evaluatedprice of the tentative award pattern award based on the ten-tative award pattern

(c) If the solicitation specifies that award will be made onlyon a group of line items or all line items contained in the solic-itation determine the category of end products on the basis ofeach line item but determine whether to apply an evaluationfactor on the basis of the group of items (see 25504-4 Exam-ple 2)

(1) If the proposed price of domestic end productsexceeds 50 percent of the total proposed price of the group

FAC 2005ndash09 APRIL 19 2006

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 16: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

25206 FEDERAL ACQUISITION REGULATION

252-2

determination otherwise was not reasonably foreseeable Ifthe contracting officer concludes that the contractor shouldhave made the request before contract award the contractingofficer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability of theBuy American Act made after contract award on informationrequired by paragraphs (c) and (d) of the applicable clause at52225-9 or 52225-11 andor other readily availableinformation

(c) If a determination under 25202(a) is made after con-tract award that an exception to the Buy American Actapplies the contracting officer must negotiate adequate con-sideration and modify the contract to allow use of the foreignconstruction material When the basis for the exception is theunreasonable price of a domestic construction material ade-quate consideration is at least the differential established in25202(a) or in accordance with agency procedures

25206 NoncomplianceThe contracting officer mustmdash(a) Review allegations of Buy American Act violations(b) Unless fraud is suspected notify the contractor of the

apparent unauthorized use of foreign construction materialand request a reply to include proposed corrective action and

(c) If the review reveals that a contractor or subcontractorhas used foreign construction material without authorizationtake appropriate action including one or more of thefollowing

(1) Process a determination concerning the inapplica-bility of the Buy American Act in accordance with 25205

(2) Consider requiring the removal and replacement ofthe unauthorized foreign construction material

(3) If removal and replacement of foreign constructionmaterial incorporated in a building or work would be imprac-ticable cause undue delay or otherwise be detrimental to theinterests of the Government the contracting officer maydetermine in writing that the foreign construction materialneed not be removed and replaced A determination to retainforeign construction material does not constitute a determina-tion that an exception to the Buy American Act applies andthis should be stated in the determination Further a determi-nation to retain foreign construction material does not affectthe Governmentrsquos right to suspend or debar a contractor sub-contractor or supplier for violation of the Buy American Actor to exercise other contractual rights and remedies such asreducing the contract price or terminating the contract fordefault

(4) If the noncompliance is sufficiently serious con-sider exercising appropriate contractual remedies such as ter-minating the contract for default Also consider preparing andforwarding a report to the agency suspending or debarringofficial in accordance with Subpart 94 If the noncomplianceappears to be fraudulent refer the matter to other appropriateagency officials such as the officer responsible for criminalinvestigation

SUBPART 254mdashTRADE AGREEMENTS 25404

254-3

25402 General(a)(1) The Trade Agreements Act (19 USC 2501 et seq)

provides the authority for the President to waive the BuyAmerican Act and other discriminatory provisions for eligibleproducts from countries that have signed an internationaltrade agreement with the United States or that meet certainother criteria such as being a least developed country ThePresident has delegated this waiver authority to the US TradeRepresentative In acquisitions covered by the WTO GPAFree Trade Agreements or the Israeli Trade Act the USTRhas waived the Buy American Act and other discriminatoryprovisions for eligible products Offers of eligible productsreceive equal consideration with domestic offers

(2) The contracting officer shall determine the origin ofservices by the country in which the firm providing the ser-vices is established See Subpart 255 for evaluation proce-dures for supply contracts covered by trade agreements

(b) The value of the acquisition is a determining factor inthe applicability of trade agreements Most of these dollarthresholds are subject to revision by the US Trade Represen-tative approximately every 2 years The various thresholds aresummarized as follows

25403 World Trade Organization Government Procurement Agreement and Free Trade Agreements(a) Eligible products from WTO GPA and FTA countries

are entitled to the nondiscriminatory treatment specified in25402(a)(1) The WTO GPA and FTAs specify procurementprocedures designed to ensure fairness (see 25408)

(b) Thresholds (1) To determine whether the acquisitionof products by lease rental or lease-purchase contract(including lease-to-ownership or lease-with-option-to pur-chase) is covered by the WTO GPA or an FTA calculate theestimated acquisition value as follows

(i) If a fixed-term contract of 12 months or less iscontemplated use the total estimated value of the acquisition

(ii) If a fixed-term contract of more than 12 monthsis contemplated use the total estimated value of the acquisi-tion plus the estimated residual value of the leased equipmentat the conclusion of the contemplated term of the contract

(iii) If an indefinite-term contract is contemplateduse the estimated monthly payment multiplied by the totalnumber of months that ordering would be possible under theproposed contract ie the initial ordering period plus anyoptional ordering periods

(iv) If there is any doubt as to the contemplated termof the contract use the estimated monthly payment multipliedby 48

(2) The estimated value includes the value of alloptions

(3) If in any 12-month period recurring or multipleawards for the same type of product or products are antici-pated use the total estimated value of these projected awardsto determine whether the WTO GPA or an FTA applies Donot divide any acquisition with the intent of reducing the esti-mated value of the acquisition below the dollar threshold ofthe WTO GPA or an FTA

(c) Purchase restriction (1) Under the Trade AgreementsAct (19 USC 2512) in acquisitions covered by the WTOGPA acquire only US-made or designated country end prod-ucts or US or designated country services unless offers forsuch end products or services are either not received or areinsufficient to fulfill the requirements This purchase restric-tion does not apply below the WTO GPA threshold for sup-plies and services even if the acquisition is covered by anFTA

(2) This restriction does not apply to purchases of sup-plies by the Department of Defense from a country with whichit has entered into a reciprocal agreement as provided indepartmental regulations

25404 Least developed countriesFor acquisitions covered by the WTO GPA least devel-

oped country end products construction material and ser-vices must be treated as eligible products

Trade Agreement

Supply Contract

(equal to or exceeding)

Service Contract

(equal to or exceeding)

Construction Contract

(equal to or exceeding)

WTO GPA $203000 $203000 $7804000FTAs

Australia FTA 70079 70079 7804000Bahrain FTA 203000 203000 9110318CAFTA-DR (Costa Rica Dominican Republic El Salvador Guatemala Honduras and Nicaragua)

70079 70079 7804000

Chile FTA 70079 70079 7804000Morocco FTA 203000 203000 7804000NAFTAmdashCanada 25000 70079 9110318mdashMexico 70079 70079 9110318Oman FTA 203000 203000 9110318Peru FTA 203000 203000 7804000Singapore FTA 70079 70079 7804000

Israeli Trade Act 50000 mdash mdash

FAC 2005ndash43 JULY 2 2010

25405 FEDERAL ACQUISITION REGULATION

254-4

25405 Caribbean Basin Trade InitiativeUnder the Caribbean Basin Trade Initiative the United

States Trade Representative has determined that for acquisi-tions covered by the WTO GPA Caribbean Basin country endproducts construction material and services must be treatedas eligible products In accordance with Section 201 (a)(3) ofthe Dominican Republic-Central America-United States FreeTrade Implementation Act (Pub L 109-53) when theCAFTA-DR agreement enters into force with respect to acountry that country is no longer designated as a beneficiarycountry for purposes of the Caribbean Basin EconomicRecovery Act and is therefore no longer included in the def-inition of ldquoCaribbean Basin countryrdquo for purposes of the Car-ibbean Basin Trade Initiative

25406 Israeli Trade ActAcquisitions of supplies by most agencies are covered by

the Israeli Trade Act if the estimated value of the acquisitionis $50000 or more but does not exceed the WTO GPA thresh-old for supplies (see 25402(b)) Agencies other than theDepartment of Defense the Department of Energy theDepartment of Transportation the Bureau of Reclamation ofthe Department of the Interior the Federal Housing FinanceBoard and the Office of Thrift Supervision must evaluateoffers of Israeli end products without regard to the restrictionsof the Buy American Act The Israeli Trade Act does not pro-hibit the purchase of other foreign end products

25407 Agreement on Trade in Civil AircraftUnder the authority of Section 303 of the Trade Agree-

ments Act the US Trade Representative has waived the Buy

American Act for civil aircraft and related articles that meetthe substantial transformation test of the Trade AgreementsAct from countries that are parties to the Agreement on Tradein Civil Aircraft Those countries are Austria Belgium Bul-garia Canada Denmark Egypt Finland France GermanyGreece Ireland Italy Japan Luxembourg Macao the Neth-erlands Norway Portugal Romania Spain Sweden Swit-zerland and the United Kingdom

25408 Procedures(a) If the WTO GPA or an FTA applies (see 25401) the

contracting officer mustmdash(1) Comply with the requirements of 5203 Publicizing

and response time(2) Comply with the requirements of 5207 Preparation

and transmittal of synopses(3) Not include technical requirements in solicitations

solely to preclude the acquisition of eligible products(4) Specify in solicitations that offerors must submit

offers in the English language and in US dollars (see52214-34 Submission of Offers in the English Languageand 52214-35 Submission of Offers in US Currency orparagraph (c)(5) of 52215-1 Instruction to OfferorsmdashCom-petitive Acquisitions) and

(5) Provide unsuccessful offerors from WTO GPA orFTA countries notice in accordance with 14409-1 or 15503

(b) See Subpart 255 for evaluation procedures andexamples

SUBPART 255mdashEVALUATING FOREIGN OFFERSmdashSUPPLY CONTRACTS 25503

255-1

Subpart 255mdashEvaluating Foreign OffersmdashSupply Contracts

25501 GeneralThe contracting officermdash(a) Must apply the evaluation procedures of this subpart to

each line item of an offer unless either the offer or the solici-tation specifies evaluation on a group basis (see 25503)

(b) May rely on the offerorrsquos certification of end productorigin when evaluating a foreign offer

(c) Must identify and reject offers of end products that areprohibited in accordance with Subpart 257 and

(d) Must not use the Buy American Act evaluation factorsprescribed in this subpart to provide a preference for one for-eign offer over another foreign offer

25502 Application(a) Unless otherwise specified in agency regulations per-

form the following steps in the order presented(1) Eliminate all offers or offerors that are unacceptable

for reasons other than price eg nonresponsive debarred orsuspended or a prohibited source (see Subpart 257)

(2) Rank the remaining offers by price(3) If the solicitation specifies award on the basis of fac-

tors in addition to cost or price apply the evaluation factorsas specified in this section and use the evaluated cost or pricein determining the offer that represents the best value to theGovernment

(b) For acquisitions covered by the WTO GPA (seeSubpart 254)mdash

(1) Consider only offers of US-made or designatedcountry end products unless no offers of such end productswere received

(2) If the agency gives the same consideration given eli-gible offers to offers of US-made end products that are notdomestic end products award on the low offer Otherwiseevaluate in accordance with agency procedures and

(3) If there were no offers of US-made or designatedcountry end products make a nonavailability determination(see 25103(b)(2)) and award on the low offer (see 25403(c))

(c) For acquisitions not covered by the WTO GPA but sub-ject to the Buy American Act (an FTA or the Israeli Trade Actalso may apply) the following applies

(1) If the low offer is a domestic offer or an eligible offerunder an FTA or the Israeli Trade Act award on that offer

(2) If the low offer is a noneligible offer and there wereno domestic offers (see 25103(b)(3)) award on the low offer

(3) If the low offer is a noneligible offer and there is aneligible offer that is lower than the lowest domestic offeraward on the low offer The Buy American Act provides anevaluation preference only for domestic offers

(4) Otherwise apply the appropriate evaluation factorprovided in 25105 to the low offer

(i) If the evaluated price of the low offer remains lessthan the lowest domestic offer award on the low offer

(ii) If the price of the lowest domestic offer is lessthan the evaluated price of the low offer award on the lowestdomestic offer

(d) Ties (1) If application of an evaluation factor results ina tie between a domestic offer and a foreign offer award onthe domestic offer

(2) If no evaluation preference was applied (ie offersafforded nondiscriminatory treatment under the Buy Ameri-can Act) resolve ties between domestic and foreign offers bya witnessed drawing of lots by an impartial individual

(3) Resolve ties between foreign offers from small busi-ness concerns (under the Buy American Act a small businessoffering a manufactured article that does not meet the defini-tion of ldquodomestic end productrdquo is a foreign offer) or foreignoffers from a small business concern and a large business con-cern in accordance with 14408-6(a)

25503 Group offers(a) If the solicitation or an offer specifies that award can be

made only on a group of line items or on all line items con-tained in the solicitation or offer reject the offermdash

(1) If any part of the award would consist of prohibitedend products (see Subpart 257) or

(2) If the acquisition is covered by the WTO GPA andany part of the offer consists of items restricted in accordancewith 22403(c)

(b) If an offer restricts award to a group of line items or toall line items contained in the offer determine for each lineitem whether to apply an evaluation factor (see 25504-4Example 1)

(1) First evaluate offers that do not specify an awardrestriction on a line item basis in accordance with 25502determining a tentative award pattern by selecting for eachline item the offer with the lowest evaluated price

(2) Evaluate an offer that specifies an award restrictionagainst the offered prices of the tentative award pattern apply-ing the appropriate evaluation factor on a line item basis

(3) Compute the total evaluated price for the tentativeaward pattern and the offer that specified an award restriction

(4) Unless the total evaluated price of the offer thatspecified an award restriction is less than the total evaluatedprice of the tentative award pattern award based on the ten-tative award pattern

(c) If the solicitation specifies that award will be made onlyon a group of line items or all line items contained in the solic-itation determine the category of end products on the basis ofeach line item but determine whether to apply an evaluationfactor on the basis of the group of items (see 25504-4 Exam-ple 2)

(1) If the proposed price of domestic end productsexceeds 50 percent of the total proposed price of the group

FAC 2005ndash09 APRIL 19 2006

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 17: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

SUBPART 254mdashTRADE AGREEMENTS 25404

254-3

25402 General(a)(1) The Trade Agreements Act (19 USC 2501 et seq)

provides the authority for the President to waive the BuyAmerican Act and other discriminatory provisions for eligibleproducts from countries that have signed an internationaltrade agreement with the United States or that meet certainother criteria such as being a least developed country ThePresident has delegated this waiver authority to the US TradeRepresentative In acquisitions covered by the WTO GPAFree Trade Agreements or the Israeli Trade Act the USTRhas waived the Buy American Act and other discriminatoryprovisions for eligible products Offers of eligible productsreceive equal consideration with domestic offers

(2) The contracting officer shall determine the origin ofservices by the country in which the firm providing the ser-vices is established See Subpart 255 for evaluation proce-dures for supply contracts covered by trade agreements

(b) The value of the acquisition is a determining factor inthe applicability of trade agreements Most of these dollarthresholds are subject to revision by the US Trade Represen-tative approximately every 2 years The various thresholds aresummarized as follows

25403 World Trade Organization Government Procurement Agreement and Free Trade Agreements(a) Eligible products from WTO GPA and FTA countries

are entitled to the nondiscriminatory treatment specified in25402(a)(1) The WTO GPA and FTAs specify procurementprocedures designed to ensure fairness (see 25408)

(b) Thresholds (1) To determine whether the acquisitionof products by lease rental or lease-purchase contract(including lease-to-ownership or lease-with-option-to pur-chase) is covered by the WTO GPA or an FTA calculate theestimated acquisition value as follows

(i) If a fixed-term contract of 12 months or less iscontemplated use the total estimated value of the acquisition

(ii) If a fixed-term contract of more than 12 monthsis contemplated use the total estimated value of the acquisi-tion plus the estimated residual value of the leased equipmentat the conclusion of the contemplated term of the contract

(iii) If an indefinite-term contract is contemplateduse the estimated monthly payment multiplied by the totalnumber of months that ordering would be possible under theproposed contract ie the initial ordering period plus anyoptional ordering periods

(iv) If there is any doubt as to the contemplated termof the contract use the estimated monthly payment multipliedby 48

(2) The estimated value includes the value of alloptions

(3) If in any 12-month period recurring or multipleawards for the same type of product or products are antici-pated use the total estimated value of these projected awardsto determine whether the WTO GPA or an FTA applies Donot divide any acquisition with the intent of reducing the esti-mated value of the acquisition below the dollar threshold ofthe WTO GPA or an FTA

(c) Purchase restriction (1) Under the Trade AgreementsAct (19 USC 2512) in acquisitions covered by the WTOGPA acquire only US-made or designated country end prod-ucts or US or designated country services unless offers forsuch end products or services are either not received or areinsufficient to fulfill the requirements This purchase restric-tion does not apply below the WTO GPA threshold for sup-plies and services even if the acquisition is covered by anFTA

(2) This restriction does not apply to purchases of sup-plies by the Department of Defense from a country with whichit has entered into a reciprocal agreement as provided indepartmental regulations

25404 Least developed countriesFor acquisitions covered by the WTO GPA least devel-

oped country end products construction material and ser-vices must be treated as eligible products

Trade Agreement

Supply Contract

(equal to or exceeding)

Service Contract

(equal to or exceeding)

Construction Contract

(equal to or exceeding)

WTO GPA $203000 $203000 $7804000FTAs

Australia FTA 70079 70079 7804000Bahrain FTA 203000 203000 9110318CAFTA-DR (Costa Rica Dominican Republic El Salvador Guatemala Honduras and Nicaragua)

70079 70079 7804000

Chile FTA 70079 70079 7804000Morocco FTA 203000 203000 7804000NAFTAmdashCanada 25000 70079 9110318mdashMexico 70079 70079 9110318Oman FTA 203000 203000 9110318Peru FTA 203000 203000 7804000Singapore FTA 70079 70079 7804000

Israeli Trade Act 50000 mdash mdash

FAC 2005ndash43 JULY 2 2010

25405 FEDERAL ACQUISITION REGULATION

254-4

25405 Caribbean Basin Trade InitiativeUnder the Caribbean Basin Trade Initiative the United

States Trade Representative has determined that for acquisi-tions covered by the WTO GPA Caribbean Basin country endproducts construction material and services must be treatedas eligible products In accordance with Section 201 (a)(3) ofthe Dominican Republic-Central America-United States FreeTrade Implementation Act (Pub L 109-53) when theCAFTA-DR agreement enters into force with respect to acountry that country is no longer designated as a beneficiarycountry for purposes of the Caribbean Basin EconomicRecovery Act and is therefore no longer included in the def-inition of ldquoCaribbean Basin countryrdquo for purposes of the Car-ibbean Basin Trade Initiative

25406 Israeli Trade ActAcquisitions of supplies by most agencies are covered by

the Israeli Trade Act if the estimated value of the acquisitionis $50000 or more but does not exceed the WTO GPA thresh-old for supplies (see 25402(b)) Agencies other than theDepartment of Defense the Department of Energy theDepartment of Transportation the Bureau of Reclamation ofthe Department of the Interior the Federal Housing FinanceBoard and the Office of Thrift Supervision must evaluateoffers of Israeli end products without regard to the restrictionsof the Buy American Act The Israeli Trade Act does not pro-hibit the purchase of other foreign end products

25407 Agreement on Trade in Civil AircraftUnder the authority of Section 303 of the Trade Agree-

ments Act the US Trade Representative has waived the Buy

American Act for civil aircraft and related articles that meetthe substantial transformation test of the Trade AgreementsAct from countries that are parties to the Agreement on Tradein Civil Aircraft Those countries are Austria Belgium Bul-garia Canada Denmark Egypt Finland France GermanyGreece Ireland Italy Japan Luxembourg Macao the Neth-erlands Norway Portugal Romania Spain Sweden Swit-zerland and the United Kingdom

25408 Procedures(a) If the WTO GPA or an FTA applies (see 25401) the

contracting officer mustmdash(1) Comply with the requirements of 5203 Publicizing

and response time(2) Comply with the requirements of 5207 Preparation

and transmittal of synopses(3) Not include technical requirements in solicitations

solely to preclude the acquisition of eligible products(4) Specify in solicitations that offerors must submit

offers in the English language and in US dollars (see52214-34 Submission of Offers in the English Languageand 52214-35 Submission of Offers in US Currency orparagraph (c)(5) of 52215-1 Instruction to OfferorsmdashCom-petitive Acquisitions) and

(5) Provide unsuccessful offerors from WTO GPA orFTA countries notice in accordance with 14409-1 or 15503

(b) See Subpart 255 for evaluation procedures andexamples

SUBPART 255mdashEVALUATING FOREIGN OFFERSmdashSUPPLY CONTRACTS 25503

255-1

Subpart 255mdashEvaluating Foreign OffersmdashSupply Contracts

25501 GeneralThe contracting officermdash(a) Must apply the evaluation procedures of this subpart to

each line item of an offer unless either the offer or the solici-tation specifies evaluation on a group basis (see 25503)

(b) May rely on the offerorrsquos certification of end productorigin when evaluating a foreign offer

(c) Must identify and reject offers of end products that areprohibited in accordance with Subpart 257 and

(d) Must not use the Buy American Act evaluation factorsprescribed in this subpart to provide a preference for one for-eign offer over another foreign offer

25502 Application(a) Unless otherwise specified in agency regulations per-

form the following steps in the order presented(1) Eliminate all offers or offerors that are unacceptable

for reasons other than price eg nonresponsive debarred orsuspended or a prohibited source (see Subpart 257)

(2) Rank the remaining offers by price(3) If the solicitation specifies award on the basis of fac-

tors in addition to cost or price apply the evaluation factorsas specified in this section and use the evaluated cost or pricein determining the offer that represents the best value to theGovernment

(b) For acquisitions covered by the WTO GPA (seeSubpart 254)mdash

(1) Consider only offers of US-made or designatedcountry end products unless no offers of such end productswere received

(2) If the agency gives the same consideration given eli-gible offers to offers of US-made end products that are notdomestic end products award on the low offer Otherwiseevaluate in accordance with agency procedures and

(3) If there were no offers of US-made or designatedcountry end products make a nonavailability determination(see 25103(b)(2)) and award on the low offer (see 25403(c))

(c) For acquisitions not covered by the WTO GPA but sub-ject to the Buy American Act (an FTA or the Israeli Trade Actalso may apply) the following applies

(1) If the low offer is a domestic offer or an eligible offerunder an FTA or the Israeli Trade Act award on that offer

(2) If the low offer is a noneligible offer and there wereno domestic offers (see 25103(b)(3)) award on the low offer

(3) If the low offer is a noneligible offer and there is aneligible offer that is lower than the lowest domestic offeraward on the low offer The Buy American Act provides anevaluation preference only for domestic offers

(4) Otherwise apply the appropriate evaluation factorprovided in 25105 to the low offer

(i) If the evaluated price of the low offer remains lessthan the lowest domestic offer award on the low offer

(ii) If the price of the lowest domestic offer is lessthan the evaluated price of the low offer award on the lowestdomestic offer

(d) Ties (1) If application of an evaluation factor results ina tie between a domestic offer and a foreign offer award onthe domestic offer

(2) If no evaluation preference was applied (ie offersafforded nondiscriminatory treatment under the Buy Ameri-can Act) resolve ties between domestic and foreign offers bya witnessed drawing of lots by an impartial individual

(3) Resolve ties between foreign offers from small busi-ness concerns (under the Buy American Act a small businessoffering a manufactured article that does not meet the defini-tion of ldquodomestic end productrdquo is a foreign offer) or foreignoffers from a small business concern and a large business con-cern in accordance with 14408-6(a)

25503 Group offers(a) If the solicitation or an offer specifies that award can be

made only on a group of line items or on all line items con-tained in the solicitation or offer reject the offermdash

(1) If any part of the award would consist of prohibitedend products (see Subpart 257) or

(2) If the acquisition is covered by the WTO GPA andany part of the offer consists of items restricted in accordancewith 22403(c)

(b) If an offer restricts award to a group of line items or toall line items contained in the offer determine for each lineitem whether to apply an evaluation factor (see 25504-4Example 1)

(1) First evaluate offers that do not specify an awardrestriction on a line item basis in accordance with 25502determining a tentative award pattern by selecting for eachline item the offer with the lowest evaluated price

(2) Evaluate an offer that specifies an award restrictionagainst the offered prices of the tentative award pattern apply-ing the appropriate evaluation factor on a line item basis

(3) Compute the total evaluated price for the tentativeaward pattern and the offer that specified an award restriction

(4) Unless the total evaluated price of the offer thatspecified an award restriction is less than the total evaluatedprice of the tentative award pattern award based on the ten-tative award pattern

(c) If the solicitation specifies that award will be made onlyon a group of line items or all line items contained in the solic-itation determine the category of end products on the basis ofeach line item but determine whether to apply an evaluationfactor on the basis of the group of items (see 25504-4 Exam-ple 2)

(1) If the proposed price of domestic end productsexceeds 50 percent of the total proposed price of the group

FAC 2005ndash09 APRIL 19 2006

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 18: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

25405 FEDERAL ACQUISITION REGULATION

254-4

25405 Caribbean Basin Trade InitiativeUnder the Caribbean Basin Trade Initiative the United

States Trade Representative has determined that for acquisi-tions covered by the WTO GPA Caribbean Basin country endproducts construction material and services must be treatedas eligible products In accordance with Section 201 (a)(3) ofthe Dominican Republic-Central America-United States FreeTrade Implementation Act (Pub L 109-53) when theCAFTA-DR agreement enters into force with respect to acountry that country is no longer designated as a beneficiarycountry for purposes of the Caribbean Basin EconomicRecovery Act and is therefore no longer included in the def-inition of ldquoCaribbean Basin countryrdquo for purposes of the Car-ibbean Basin Trade Initiative

25406 Israeli Trade ActAcquisitions of supplies by most agencies are covered by

the Israeli Trade Act if the estimated value of the acquisitionis $50000 or more but does not exceed the WTO GPA thresh-old for supplies (see 25402(b)) Agencies other than theDepartment of Defense the Department of Energy theDepartment of Transportation the Bureau of Reclamation ofthe Department of the Interior the Federal Housing FinanceBoard and the Office of Thrift Supervision must evaluateoffers of Israeli end products without regard to the restrictionsof the Buy American Act The Israeli Trade Act does not pro-hibit the purchase of other foreign end products

25407 Agreement on Trade in Civil AircraftUnder the authority of Section 303 of the Trade Agree-

ments Act the US Trade Representative has waived the Buy

American Act for civil aircraft and related articles that meetthe substantial transformation test of the Trade AgreementsAct from countries that are parties to the Agreement on Tradein Civil Aircraft Those countries are Austria Belgium Bul-garia Canada Denmark Egypt Finland France GermanyGreece Ireland Italy Japan Luxembourg Macao the Neth-erlands Norway Portugal Romania Spain Sweden Swit-zerland and the United Kingdom

25408 Procedures(a) If the WTO GPA or an FTA applies (see 25401) the

contracting officer mustmdash(1) Comply with the requirements of 5203 Publicizing

and response time(2) Comply with the requirements of 5207 Preparation

and transmittal of synopses(3) Not include technical requirements in solicitations

solely to preclude the acquisition of eligible products(4) Specify in solicitations that offerors must submit

offers in the English language and in US dollars (see52214-34 Submission of Offers in the English Languageand 52214-35 Submission of Offers in US Currency orparagraph (c)(5) of 52215-1 Instruction to OfferorsmdashCom-petitive Acquisitions) and

(5) Provide unsuccessful offerors from WTO GPA orFTA countries notice in accordance with 14409-1 or 15503

(b) See Subpart 255 for evaluation procedures andexamples

SUBPART 255mdashEVALUATING FOREIGN OFFERSmdashSUPPLY CONTRACTS 25503

255-1

Subpart 255mdashEvaluating Foreign OffersmdashSupply Contracts

25501 GeneralThe contracting officermdash(a) Must apply the evaluation procedures of this subpart to

each line item of an offer unless either the offer or the solici-tation specifies evaluation on a group basis (see 25503)

(b) May rely on the offerorrsquos certification of end productorigin when evaluating a foreign offer

(c) Must identify and reject offers of end products that areprohibited in accordance with Subpart 257 and

(d) Must not use the Buy American Act evaluation factorsprescribed in this subpart to provide a preference for one for-eign offer over another foreign offer

25502 Application(a) Unless otherwise specified in agency regulations per-

form the following steps in the order presented(1) Eliminate all offers or offerors that are unacceptable

for reasons other than price eg nonresponsive debarred orsuspended or a prohibited source (see Subpart 257)

(2) Rank the remaining offers by price(3) If the solicitation specifies award on the basis of fac-

tors in addition to cost or price apply the evaluation factorsas specified in this section and use the evaluated cost or pricein determining the offer that represents the best value to theGovernment

(b) For acquisitions covered by the WTO GPA (seeSubpart 254)mdash

(1) Consider only offers of US-made or designatedcountry end products unless no offers of such end productswere received

(2) If the agency gives the same consideration given eli-gible offers to offers of US-made end products that are notdomestic end products award on the low offer Otherwiseevaluate in accordance with agency procedures and

(3) If there were no offers of US-made or designatedcountry end products make a nonavailability determination(see 25103(b)(2)) and award on the low offer (see 25403(c))

(c) For acquisitions not covered by the WTO GPA but sub-ject to the Buy American Act (an FTA or the Israeli Trade Actalso may apply) the following applies

(1) If the low offer is a domestic offer or an eligible offerunder an FTA or the Israeli Trade Act award on that offer

(2) If the low offer is a noneligible offer and there wereno domestic offers (see 25103(b)(3)) award on the low offer

(3) If the low offer is a noneligible offer and there is aneligible offer that is lower than the lowest domestic offeraward on the low offer The Buy American Act provides anevaluation preference only for domestic offers

(4) Otherwise apply the appropriate evaluation factorprovided in 25105 to the low offer

(i) If the evaluated price of the low offer remains lessthan the lowest domestic offer award on the low offer

(ii) If the price of the lowest domestic offer is lessthan the evaluated price of the low offer award on the lowestdomestic offer

(d) Ties (1) If application of an evaluation factor results ina tie between a domestic offer and a foreign offer award onthe domestic offer

(2) If no evaluation preference was applied (ie offersafforded nondiscriminatory treatment under the Buy Ameri-can Act) resolve ties between domestic and foreign offers bya witnessed drawing of lots by an impartial individual

(3) Resolve ties between foreign offers from small busi-ness concerns (under the Buy American Act a small businessoffering a manufactured article that does not meet the defini-tion of ldquodomestic end productrdquo is a foreign offer) or foreignoffers from a small business concern and a large business con-cern in accordance with 14408-6(a)

25503 Group offers(a) If the solicitation or an offer specifies that award can be

made only on a group of line items or on all line items con-tained in the solicitation or offer reject the offermdash

(1) If any part of the award would consist of prohibitedend products (see Subpart 257) or

(2) If the acquisition is covered by the WTO GPA andany part of the offer consists of items restricted in accordancewith 22403(c)

(b) If an offer restricts award to a group of line items or toall line items contained in the offer determine for each lineitem whether to apply an evaluation factor (see 25504-4Example 1)

(1) First evaluate offers that do not specify an awardrestriction on a line item basis in accordance with 25502determining a tentative award pattern by selecting for eachline item the offer with the lowest evaluated price

(2) Evaluate an offer that specifies an award restrictionagainst the offered prices of the tentative award pattern apply-ing the appropriate evaluation factor on a line item basis

(3) Compute the total evaluated price for the tentativeaward pattern and the offer that specified an award restriction

(4) Unless the total evaluated price of the offer thatspecified an award restriction is less than the total evaluatedprice of the tentative award pattern award based on the ten-tative award pattern

(c) If the solicitation specifies that award will be made onlyon a group of line items or all line items contained in the solic-itation determine the category of end products on the basis ofeach line item but determine whether to apply an evaluationfactor on the basis of the group of items (see 25504-4 Exam-ple 2)

(1) If the proposed price of domestic end productsexceeds 50 percent of the total proposed price of the group

FAC 2005ndash09 APRIL 19 2006

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 19: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

SUBPART 255mdashEVALUATING FOREIGN OFFERSmdashSUPPLY CONTRACTS 25503

255-1

Subpart 255mdashEvaluating Foreign OffersmdashSupply Contracts

25501 GeneralThe contracting officermdash(a) Must apply the evaluation procedures of this subpart to

each line item of an offer unless either the offer or the solici-tation specifies evaluation on a group basis (see 25503)

(b) May rely on the offerorrsquos certification of end productorigin when evaluating a foreign offer

(c) Must identify and reject offers of end products that areprohibited in accordance with Subpart 257 and

(d) Must not use the Buy American Act evaluation factorsprescribed in this subpart to provide a preference for one for-eign offer over another foreign offer

25502 Application(a) Unless otherwise specified in agency regulations per-

form the following steps in the order presented(1) Eliminate all offers or offerors that are unacceptable

for reasons other than price eg nonresponsive debarred orsuspended or a prohibited source (see Subpart 257)

(2) Rank the remaining offers by price(3) If the solicitation specifies award on the basis of fac-

tors in addition to cost or price apply the evaluation factorsas specified in this section and use the evaluated cost or pricein determining the offer that represents the best value to theGovernment

(b) For acquisitions covered by the WTO GPA (seeSubpart 254)mdash

(1) Consider only offers of US-made or designatedcountry end products unless no offers of such end productswere received

(2) If the agency gives the same consideration given eli-gible offers to offers of US-made end products that are notdomestic end products award on the low offer Otherwiseevaluate in accordance with agency procedures and

(3) If there were no offers of US-made or designatedcountry end products make a nonavailability determination(see 25103(b)(2)) and award on the low offer (see 25403(c))

(c) For acquisitions not covered by the WTO GPA but sub-ject to the Buy American Act (an FTA or the Israeli Trade Actalso may apply) the following applies

(1) If the low offer is a domestic offer or an eligible offerunder an FTA or the Israeli Trade Act award on that offer

(2) If the low offer is a noneligible offer and there wereno domestic offers (see 25103(b)(3)) award on the low offer

(3) If the low offer is a noneligible offer and there is aneligible offer that is lower than the lowest domestic offeraward on the low offer The Buy American Act provides anevaluation preference only for domestic offers

(4) Otherwise apply the appropriate evaluation factorprovided in 25105 to the low offer

(i) If the evaluated price of the low offer remains lessthan the lowest domestic offer award on the low offer

(ii) If the price of the lowest domestic offer is lessthan the evaluated price of the low offer award on the lowestdomestic offer

(d) Ties (1) If application of an evaluation factor results ina tie between a domestic offer and a foreign offer award onthe domestic offer

(2) If no evaluation preference was applied (ie offersafforded nondiscriminatory treatment under the Buy Ameri-can Act) resolve ties between domestic and foreign offers bya witnessed drawing of lots by an impartial individual

(3) Resolve ties between foreign offers from small busi-ness concerns (under the Buy American Act a small businessoffering a manufactured article that does not meet the defini-tion of ldquodomestic end productrdquo is a foreign offer) or foreignoffers from a small business concern and a large business con-cern in accordance with 14408-6(a)

25503 Group offers(a) If the solicitation or an offer specifies that award can be

made only on a group of line items or on all line items con-tained in the solicitation or offer reject the offermdash

(1) If any part of the award would consist of prohibitedend products (see Subpart 257) or

(2) If the acquisition is covered by the WTO GPA andany part of the offer consists of items restricted in accordancewith 22403(c)

(b) If an offer restricts award to a group of line items or toall line items contained in the offer determine for each lineitem whether to apply an evaluation factor (see 25504-4Example 1)

(1) First evaluate offers that do not specify an awardrestriction on a line item basis in accordance with 25502determining a tentative award pattern by selecting for eachline item the offer with the lowest evaluated price

(2) Evaluate an offer that specifies an award restrictionagainst the offered prices of the tentative award pattern apply-ing the appropriate evaluation factor on a line item basis

(3) Compute the total evaluated price for the tentativeaward pattern and the offer that specified an award restriction

(4) Unless the total evaluated price of the offer thatspecified an award restriction is less than the total evaluatedprice of the tentative award pattern award based on the ten-tative award pattern

(c) If the solicitation specifies that award will be made onlyon a group of line items or all line items contained in the solic-itation determine the category of end products on the basis ofeach line item but determine whether to apply an evaluationfactor on the basis of the group of items (see 25504-4 Exam-ple 2)

(1) If the proposed price of domestic end productsexceeds 50 percent of the total proposed price of the group

FAC 2005ndash09 APRIL 19 2006

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
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  • FAR 1203pdf
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  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 20: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

25504 FEDERAL ACQUISITION REGULATION

255-2

evaluate the entire group as a domestic offer Evaluate allother groups as foreign offers

(2) For foreign offers if the proposed price of domesticend products and eligible products exceeds 50 percent of thetotal proposed price of the group evaluate the entire group asan eligible offer

(3) Apply the evaluation factor to the entire group inaccordance with 25502

25504 Evaluation examplesThe following examples illustrate the application of the

evaluation procedures in 25502 and 25503 The examplesassume that the contracting officer has eliminated all offersthat are unacceptable for reasons other than price or a tradeagreement (see 25502(a)(1)) The evaluation factor maychange as provided in agency regulations

25504-1 Buy American Act(a)(1) Example 1

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Since the acquisitionvalue is less than $25000 and the acquisition is set aside noneof the trade agreements apply Perform the steps in 25502(a)Offer C is evaluated as a foreign end product because it is theproduct of a small business but is not a domestic end product(see 25502(c)(4)) Since Offer B is a domestic offer apply the12 percent factor to Offer C (see 25105(b)(2)) The resultingevaluated price of $11200 remains lower than Offer B Thecost of Offer B is therefore unreasonable (see 25105(c))Award on Offer C at $10000 (see 25502(c)(4)(i))

(b)(1) Example 2

(2) Analysis This acquisition is for end products for usein the United States and is set aside for small business con-cerns The Buy American Act applies Perform the steps in25502(a) Offer C is evaluated as a foreign end productbecause it is the product of a small business but is not a domes-tic end product (see 25502(c)(4)) After applying the

12 percent factor the evaluated price of Offer C is $11424Award on Offer B at $10700 (see 25502(c)(4)(ii))

25504-2 WTO GPACaribbean Basin Trade InitiativeFTAsExample 1

Analysis Eliminate Offer D because the acquisition is cov-ered by the WTO GPA and there is an offer of a US-made oran eligible product (see 25502(b)(1)) If the agency gives thesame consideration given eligible offers to offers of US-made end products that are not domestic offers it is unneces-sary to determine if US-made end products are domestic(large or small business) No further analysis is necessaryAward on the low remaining offer Offer C (see 25502(b)(2))

25504-3 FTAIsraeli Trade Act(a) Example 1

Analysis Since the low offer is an eligible offer award onthe low offer (see 25502(c)(1))

(b) Example 2

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Since no domestic offer was received make a nonavail-ability determination and award on Offer B (see25502(c)(2))

(c) Example 3

Analysis Since the acquisition is not covered by the WTOGPA the contracting officer can consider the noneligibleoffer Because the eligible offer (Offer B) is lower than thedomestic offer (Offer A) no evaluation factor applies to thelow offer (Offer C) Award on the low offer (see 25502(c)(3))

Offer A $12000 Domestic end product small businessOffer B $11700 Domestic end product small businessOffer C $10000 US-made end product (not domestic)

small business

Offer A $11000 Domestic end product small businessOffer B $10700 Domestic end product small businessOffer C $10200 US-made end product (not domestic)

small business

Offer A $304000 US-made end product (not domestic)Offer B $303000 US-made end product (domestic)

small businessOffer C $300000 Eligible productOffer D $295000 Noneligible product (not US-made)

Offer A $105000 Domestic end product small businessOffer B $100000 Eligible product

Offer A $105000 Eligible productOffer B $103000 Noneligible product

Offer A $105000 Domestic end product large businessOffer B $103000 Eligible productOffer C $100000 Noneligible product

FAC 2005ndash43 JULY 2 2010

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 21: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

SUBPART 256mdashAMERICAN RECOVERY AND REINVESTMENT ACTmdashBUY AMERICAN ACTmdashCONSTRUCTION MATERIALS 25603

256-1

Subpart 256mdashAmerican Recovery and Reinvestment ActmdashBuy American Actmdash

Construction Materials

25600 Scope of subpartThis subpart implements section 1605 in Division A of the

American Recovery and Reinvestment Act of 2009 (PubL 111-5) (Recovery Act) and the Buy American Act Itapplies to construction projects that use funds appropriated orotherwise provided by the Recovery Act

25601 DefinitionsAs used in this subpartmdashldquoDomestic construction materialrdquo meansmdash (1) An

unmanufactured construction material mined or produced inthe United States or

(2) A construction material manufactured in the UnitedStates

ldquoForeign construction materialrdquo means a constructionmaterial other than a domestic construction material

ldquoManufactured construction materialrdquo means any con-struction material that is not unmanufactured constructionmaterial

ldquoRecovery Act designated countryrdquo means a World TradeOrganization Government Procurement Agreement country aFree Trade Agreement country or a least developed country

ldquoSteelrdquo means an alloy that includes at least 50 percentiron between 02 and 2 percent carbon and may include otherelements

ldquoUnmanufactured construction materialrdquo means raw mate-rial brought to the construction site for incorporation into thebuilding or work that has not beenmdash

(1) Processed into a specific form and shape or(2) Combined with other raw material to create a mate-

rial that has different properties than the properties of the indi-vidual raw materials

25602 PolicyExcept as provided in 25603mdash(a) None of the funds appropriated or otherwise made

available by the Recovery Act may be used for a project forthe construction alteration maintenance or repair of a publicbuilding or public work (as defined at 22401) unlessmdash

(1) The public building or public work is located in theUnited States and

(2) All of the iron steel and other manufactured goodsused as construction material in the project are produced ormanufactured in the United States

(i) Production in the United States of the iron or steelused as construction material requires that all manufacturingprocesses must take place in the United States except metal-lurgical processes involving refinement of steel additivesThese requirements do not apply to steel or iron used as com-

ponents or subcomponents of other manufactured construc-tion material

(ii) There is no requirement with regard to the originof components or subcomponents in other manufactured con-struction material as long as the manufacture of the construc-tion material occurs in the United States

(b) Use only domestic unmanufactured construction mate-rial as required by the Buy American Act

25603 Exceptions (a) When one of the following exceptions applies the con-

tracting officer may allow the contractor to incorporate for-eign construction materials without regard to the restrictionsof section 1605 of the Recovery Act or the Buy American Act

(1) Nonavailability The head of the contracting activitymay determine that a particular construction material is notmined produced or manufactured in the United States in suf-ficient and reasonably available commercial quantities of asatisfactory quality The determinations of nonavailability ofthe articles listed at 25104(a) and the procedures at25103(b)(1) also apply if any of those articles are acquired asconstruction materials

(2) Unreasonable cost The contracting officer con-cludes that the cost of domestic construction material is unrea-sonable in accordance with 25605

(3) Inconsistent with public interest The head of theagency may determine that application of the restrictions ofsection 1605 of the Recovery Act or the Buy American Act toa particular construction material would be inconsistent withthe public interest

(b) Determinations When a determination is made for anyof the reasons stated in this section that certain foreign con-struction materials may be usedmdash

(1) The contracting officer shall list the excepted mate-rials in the contract and

(2) The head of the agency shall publish a notice in theFederal Register within two weeks after the determination ismade unless the construction material has already been deter-mined in the FAR to be domestically nonavailable (see list at25104) The notice shall includemdash

(i) The title ldquoBuy American Exception under theAmerican Recovery and Reinvestment Act of 2009rdquo

(ii) The dollar value and brief description of theproject and

(iii) A detailed justification as to why the restrictionis being waived

(c) Acquisitions under trade agreements (1) For con-struction contracts with an estimated acquisition value of$7804000 or more also see Subpart 254 Offers of productsdetermined to be eligible products per Subpart 254 shallreceive equal consideration with domestic offers perSubpart 254

FAC 2005ndash43 JULY 2 2010

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 22: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

25604 FEDERAL ACQUISITION REGULATION

256-2

(2) For purposes of the Recovery Act designated coun-tries do not include the Caribbean Basin Countries

25604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American Act(a) For any acquisition an offeror may request from the

contracting officer a determination concerning the inapplica-bility of section 1605 of the Recovery Act or the Buy Amer-ican Act for specifically identified construction materials Thetime for submitting the request is specified in the solicitationin paragraph (b) of either 52225-22 or 52225-24 whicheverapplies The information and supporting data that must beincluded in the request are also specified in the solicitation inparagraphs (c) and (d) of either 52225-21 or 52225-23whichever applies

(b) Before award the contracting officer must evaluate allrequests based on the information provided and may supple-ment this information with other readily available informa-tion

(c) Determination based on unreasonable cost of domesticconstruction material

(1) Iron steel and other manufactured constructionmaterial The contracting officer must compare the offeredprice of the contract using foreign manufactured constructionmaterial to the estimated price if all domestic manufacturedconstruction material were used If use of domestic manufac-tured construction material would increase the overall offeredprice of the contract by more than 25 percent then the con-tracting officer shall determine that the cost of the domesticmanufactured construction material is unreasonable

(2) Unmanufactured construction material The con-tracting officer must compare the cost of each foreign unman-ufactured construction material to the cost of domesticunmanufactured construction material If the cost of thedomestic unmanufactured construction material exceeds thecost of the foreign unmanufactured construction material bymore than 6 percent then the contracting officer shall deter-mine that the cost of the unmanufactured construction mate-rial is unreasonable

25605 Evaluating offers of foreign construction material(a) If the contracting officer has determined that an excep-

tion applies because the cost of certain domestic constructionmaterial is unreasonable in accordance with section 25604then the contracting officer shall apply evaluation factors tothe offer incorporating the use of such foreign constructionmaterial as follows

(1) Use an evaluation factor of 25 percent applied to thetotal offered price of the contract if foreign iron steel or othermanufactured goods are incorporated in the offer as construc-tion material based on an exception for unreasonable costrequested by the offeror

(2) In addition use an evaluation factor of 6 percentapplied to the cost of foreign unmanufactured constructionmaterial incorporated in the offer based on an exception forunreasonable cost requested by the offeror

(3) Total evaluated price = offered price + (25 x offeredprice if (a)(1) applies) + (06 x cost of foreign unmanufac-tured construction material if (a)(2) applies)

(b) If two or more offers are equal in price the contractingofficer must give preference to an offer that does not includeforeign construction material excepted at the request of theofferor on the basis of unreasonable cost

(c) Offerors also may submit alternate offers based on useof equivalent domestic construction material to avoid possiblerejection of the entire offer if the Government determines thatan exception permitting use of a particular foreign construc-tion material does not apply

(d) If the contracting officer awards a contract to an offerorthat proposed foreign construction material not listed in theapplicable clause in the solicitation (paragraph (b)(3) of52225-21 or paragraph (b)(3) of 52225-23) the contractingofficer must add the excepted materials to the list in the con-tract clause

25606 Postaward determinations (a) If a contractor requests a determination regarding the

inapplicability of section 1605 of the Recovery Act or the BuyAmerican Act after contract award the contractor mustexplain why it could not request the determination before con-tract award or why the need for such determination otherwisewas not reasonably foreseeable If the contracting officer con-cludes that the contractor should have made the request beforecontract award the contracting officer may deny the request

(b) The contracting officer must base evaluation of anyrequest for a determination regarding the inapplicability ofsection 1605 of the Recovery Act or the Buy American Actmade after contract award on information required by para-graphs (c) and (d) of the applicable clause at 52225-21 or52225-23 andor other readily available information

(c) If a determination under 25603(a) is made after con-tract award that an exception to section 1605 of the RecoveryAct or to the Buy American Act applies the contractingofficer must negotiate adequate consideration and modify thecontract to allow use of the foreign construction materialWhen the basis for the exception is the unreasonable cost ofa domestic construction material adequate consideration is atleast the differential established in 25605(a)

25607 NoncomplianceThe contracting officer mustmdash(a) Review allegations of violations of section 1605 of the

Recovery Act or Buy American Act

FAC 2005ndash32 MARCH 31 2009

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
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Page 23: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

SUBPART 2511mdashSOLICITATION PROVISIONS AND CONTRACT CLAUSES 251102

2511-1

Subpart 2511mdashSolicitation Provisions and Contract Clauses

251101 Acquisition of suppliesThe following provisions and clauses apply to the acquisi-

tion of supplies and the acquisition of services involving thefurnishing of supplies

(a)(1) Insert the clause at 52225-1 Buy American ActmdashSupplies in solicitations and contracts with a value exceedingthe micro-purchase threshold but not exceeding $25000 andin solicitations and contracts with a value exceeding $25000if none of the clauses prescribed in paragraphs (b) and (c) ofthis section apply except ifmdash

(i) The solicitation is restricted to domestic end prod-ucts in accordance with Subpart 63

(ii) The acquisition is for supplies for use within theUnited States and an exception to the Buy American Actapplies (eg nonavailability public interest or informationtechnology that is a commercial item) or

(iii) The acquisition is for supplies for use outside theUnited States

(2) Insert the provision at 52225-2 Buy American ActCertificate in solicitations containing the clause at 52225-1

(b) (1) (i) Insert the clause at 52225-3 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act in solicita-tions and contracts ifmdash

(A) The acquisition is for supplies or for servicesinvolving the furnishing of supplies for use within the UnitedStates and the acquisition value is $25000 or more but is lessthan $203000

(B) The acquisition is not for information tech-nology that is a commercial item using fiscal year 2004 orsubsequent fiscal year funds and

(C) No exception in 25401 applies For acquisi-tions of agencies not subject to the Israeli Trade Act (see25406) see agency regulations

(ii) If the acquisition value is $25000 or more but isless than $50000 use the clause with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the clause with its Alternate II

(2)(i) Insert the provision at 52225-4 Buy AmericanActmdashFree Trade AgreementsmdashIsraeli Trade Act Certificatein solicitations containing the clause at 52225-3

(ii) If the acquisition value is $25000 or more but isless than $50000 use the provision with its Alternate I

(iii) If the acquisition value is $50000 or more butis less than $70079 use the provision with its Alternate II

(c)(1) Insert the clause at 52225-5 Trade Agreements insolicitations and contracts valued at $203000 or more if theacquisition is covered by the WTO GPA (see Subpart 254)and the agency has determined that the restrictions of the BuyAmerican Act are not applicable to US-made end products

If the agency has not made such a determination the contract-ing officer must follow agency procedures

(2) Insert the provision at 52225-6 Trade AgreementsCertificate in solicitations containing the clause at 52225-5

(d) Insert the provision at 52225-7 Waiver of Buy Amer-ican Act for Civil Aircraft and Related Articles in solicita-tions for civil aircraft and related articles (see 25407) if theacquisition value is less than $203000

(e) Insert the clause at 52225-8 Duty-Free Entry in solic-itations and contracts for supplies that may be imported intothe United States and for which duty-free entry may beobtained in accordance with 25903(a) if the value of theacquisitionmdash

(1) Exceeds the simplified acquisition threshold or(2) Does not exceed the simplified acquisition thresh-

old but the savings from waiving the duty is anticipated to bemore than the administrative cost of waiving the duty Whenused for acquisitions that do not exceed the simplified acqui-sition threshold the contracting officer may modify para-graphs (c)(1) and (j)(2) of the clause to reduce the dollarfigure

(f) Insert the provision at 52225-18 Place of Manufacturein solicitations that are predominantly for the acquisition ofmanufactured end products as defined in the provision at52225-18 (ie the estimated value of the manufactured endproducts exceeds the estimated value of other items to beacquired as a result of the solicitation)

251102 Acquisition of constructionWhen using funds other than those appropriated under the

American Recovery and Reinvestment Act of 2009 (Pub L111-5) (Recovery Act) follow the prescriptions in paragraphs(a) through (d) of this section Otherwise follow the prescrip-tion in paragraph (e)

(a) Insert the clause at 52225-9 Buy American ActmdashCon-struction Materials in solicitations and contracts for construc-tion that is performed in the United States valued at less than$7804000

(1) List in paragraph (b)(2) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(3)(i) of the clause

(b)(1) Insert the provision at 52225-10 Notice of BuyAmerican Act RequirementmdashConstruction Materials insolicitations containing the clause at 52225-9

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(c) Insert the clause at 52225-11 Buy American ActmdashConstruction Materials under Trade Agreements in solicita-

FAC 2005ndash43 JULY 2 2010

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 24: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

251103 FEDERAL ACQUISITION REGULATION

2511-2

tions and contracts for construction that is performed in theUnited States valued at $7804000 or more

(1) List in paragraph (b)(3) of the clause all foreign con-struction material excepted from the requirements of the BuyAmerican Act other than designated country constructionmaterial

(2) If the head of the agency determines that a higherpercentage is appropriate substitute the higher evaluationpercentage in paragraph (b)(4)(i) of the clause

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate I Listin paragraph (b)(3) of the clause all foreign construction mate-rial excepted from the requirements of the Buy American Actunless the excepted foreign construction material is from adesignated country other than Bahrain Mexico and Oman

(d)(1) Insert the provision at 52225-12 Notice of BuyAmerican Act RequirementmdashConstruction Materials underTrade Agreements in solicitations containing the clause at52225-11

(2) If insufficient time is available to process a determi-nation regarding the inapplicability of the Buy American Actbefore receipt of offers use the provision with its Alternate I

(3) For acquisitions valued at $7804000 or more butless than $9110318 use the clause with its Alternate II

(e)(1) When using funds appropriated under the RecoveryAct for construction use provisions and clauses 52225-2152225-22 52225-23 or 52225-24 (with appropriate Alter-nates) in lieu of the provisions and clauses 52225-952225-10 52225-11 or 52225-12 (with appropriate Alter-nates) respectively that would be applicable as prescribed inparagraphs (a) through (d) of this section if Recovery Actfunds were not used

(2) When using clause 52225-23 list foreign construc-tion material in paragraph (b)(3) of the clause as follows

(i) Basic clause List all foreign construction materi-als excepted from the Buy American Act or section 1605 ofthe the Recovery Act other than Recovery Act designatedcountry construction material

(ii) Alternate I List in paragraph (b)(3) of the clauseall foreign construction material excepted from the BuyAmerican Act or section 1605 of the Recovery Act unless theexcepted foreign construction material is from a Recovery Actdesignated country other than Bahrain Mexico or Oman

251103 Other provisions and clauses(a) Restrictions on certain foreign purchases Insert the

clause at 52225-13 Restrictions on Certain Foreign Pur-chases in solicitations and contracts unless an exceptionapplies

(b) Translations Insert the clause at 52225-14 Inconsis-tency Between English Version and Translation of Contractin solicitations and contracts if anticipating translation intoanother language

(c) Foreign currency offers Insert the provision at52225-17 Evaluation of Foreign Currency Offers in solici-tations that permit the use of other than a specified currencyInsert in the provision the source of the rate to be used in theevaluation of offers

(d) The contracting officer shall include in each solicitationfor the acquisition of products or services (other than commer-cial items procured under Part 12) the provision at 52225-20Prohibition on Conducting Restricted Business Operations inSudanmdashCertification

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 25: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52204-11

522-121

Contractor to furnish supplies or services for performance ofthis contract It includes but is not limited to purchase ordersand changes and modifications to purchase orders but doesnot include contracts that provide supplies or services bene-fiting two or more contracts

(b) Section 2(d) of the Federal Funding Accountability andTransparency Act of 2006 (Pub L No 109-282) requiresestablishment of a pilot program for a single searchable web-site available to the public at no charge that includes infor-mation on Federal subcontracts

(c) Within thirty days after the end of March June Sep-tember and December of each year through 2008 the Con-tractor shall report the following information at wwwesrsgovfor each subcontract award with a value greater than $1 mil-lion made during that quarter (The Contractor shall follow theinstructions at wwwesrsgov to report the data)

(1) Name of the subcontractor(2) Amount of the award(3) Date of award(4) The applicable North American Industry Classifica-

tion System code(5) Funding agency or agencies(6) Award title descriptive of the purpose of the action(7) Contract number(8) Subcontractor location including address(9) Subcontract primary performance location includ-

ing address(10) Unique identifier for the subcontractor

(End of clause)

52204-11 American Recovery and Reinvestment ActmdashReporting RequirementsAs prescribed in 41502 insert the following clause

AMERICAN RECOVERY AND REINVESTMENT ACTmdashREPORTING REQUIREMENTS (JUL 2010)

(a) Definitions For definitions related to this clause (egcontract first-tier subcontract total compensation etc) seethe Frequently Asked Questions (FAQs) available at httpwwwwhitehousegovombrecovery_faqs_contractorsThese FAQs are also linked under httpwwwFederalReportinggov

(b) This contract requires the contractor to provide prod-ucts andor services that are funded under the AmericanRecovery and Reinvestment Act of 2009 (Recovery Act)Section 1512(c) of the Recovery Act requires each contractorto report on its use of Recovery Act funds under this contractThese reports will be made available to the public

(c) Reports from the Contractor for all work funded inwhole or in part by the Recovery Act are due no later thanthe 10th day following the end of each calendar quarter TheContractor shall review the Frequently Asked Questions

(FAQs) for Federal Contractors before each reporting cycleand prior to submitting each quarterly report as the FAQs maybe updated from time-to-time The first report is due no laterthan the 10th day after the end of the calendar quarter in whichthe Contractor received the award Thereafter reports shall besubmitted no later than the 10th day after the end of each cal-endar quarter For information on when the Contractor shallsubmit its final report see httpwwwwhitehousegovombrecovery_faqs_contractors

(d) The Contractor shall report the following informationusing the online reporting tool available atwwwFederalReportinggov

(1) The Government contract and order number asapplicable

(2) The amount of Recovery Act funds invoiced by thecontractor for the reporting period A cumulative amountfrom all the reports submitted for this action will be main-tained by the governmentrsquos on-line reporting tool

(3) A list of all significant services performed or sup-plies delivered including construction for which the contrac-tor invoiced in this calendar quarter

(4) Program or project title if any(5) A description of the overall purpose and expected

outcomes or results of the contract including significantdeliverables and if appropriate associated units of measure

(6) An assessment of the contractorrsquos progress towardsthe completion of the overall purpose and expected outcomesor results of the contract (ie not started less than 50 percentcompleted completed 50 percent or more or fully com-pleted) This covers the contract (or portion thereof) fundedby the Recovery Act

(7) A narrative description of the employment impact ofwork funded by the Recovery Act This narrative should becumulative for each calendar quarter and address the impacton the Contractorrsquos and first-tier subcontractorsrsquo workforcefor all first-tier subcontracts valued at $25000 or more At aminimum the Contractor shall providemdash

(i) A brief description of the types of jobs created andjobs retained in the United States and outlying areas (see def-inition in FAR 2101) This description may rely on job titlesbroader labor categories or the Contractorrsquos existing practicefor describing jobs as long as the terms used are widely under-stood and describe the general nature of the work and

(ii) An estimate of the number of jobs created andjobs retained by the prime Contractor and all first-tier subcon-tracts valued at $25000 or more in the United States and out-lying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(8) Names and total compensation of each of the fivemost highly compensated officers of the Contractor for thecalendar year in which the contract is awarded ifmdash

FAC 2005ndash43 JULY 2 2010

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 26: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

52204-11 FEDERAL ACQUISITION REGULATION

522-122

(i) In the Contractorrsquos preceding fiscal year the Con-tractor receivedmdash

(A) 80 percent or more of its annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) $25000000 or more in annual gross revenuesfrom Federal contracts (and subcontracts) loans grants (andsubgrants) and cooperative agreements and

(ii) The public does not have access to informationabout the compensation of the senior executives through peri-odic reports filed under section 13(a) or 15(d) of the SecuritiesExchange Act of 1934 (15 USC 78m(a) 78o(d)) or section6104 of the Internal Revenue Code of 1986

(9) For subcontracts valued at less than $25000 or anysubcontracts awarded to an individual or subcontractsawarded to a subcontractor that in the previous tax year hadgross income under $300000 the Contractor shall only reportthe aggregate number of such first tier subcontracts awardedin the quarter and their aggregate total dollar amount

(10) For any first-tier subcontract funded in whole or inpart under the Recovery Act that is valued at $25000 or moreand not subject to reporting under paragraph 9 the Contractorshall require the subcontractor to provide the informationdescribed in paragraphs (d)(1)(i) (ix) (x) (xi) and (xii) ofthis section to the Contractor for the purposes of the quarterlyreport The Contractor shall advise the subcontractor that theinformation will be made available to the public as requiredby section 1512 of the Recovery Act The Contractor shallprovide detailed information on these first-tier subcontracts asfollows

(i) Unique identifier (DUNS Number) for the sub-contractor receiving the award and for the subcontractorrsquosparent company if the subcontractor has a parent company

(ii) Name of the subcontractor(iii) Amount of the subcontract award(iv) Date of the subcontract award(v) The applicable North American Industry Classi-

fication System (NAICS) code(vi) Funding agency(vii) A description of the products or services

(including construction) being provided under the subcon-tract including the overall purpose and expected outcomes orresults of the subcontract

(viii) Subcontract number (the contract numberassigned by the prime contractor)

(ix) Subcontractorrsquos physical address includingstreet address city state and country Also include the nine-digit zip code and congressional district if applicable

(x) Subcontract primary performance locationincluding street address city state and country Also includethe nine-digit zip code and congressional district if applicable

(xi) Names and total compensation of each of thesubcontractorrsquos five most highly compensated officers for thecalendar year in which the subcontract is awarded ifmdash

(A) In the subcontractorrsquos preceding fiscal yearthe subcontractor receivedmdash

(1) 80 percent or more of its annual gross rev-enues in Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(2) $25000000 or more in annual gross reve-nues from Federal contracts (and subcontracts) loans grants(and subgrants) and cooperative agreements and

(B) The public does not have access to informa-tion about the compensation of the senior executives throughperiodic reports filed under section 13(a) or 15(d) of the Secu-rities Exchange Act of 1934 (15 USC 78m(a) 78o(d)) orsection 6104 of the Internal Revenue Code of 1986

(xii) A narrative description of the employmentimpact of work funded by the Recovery Act This narrativeshould be cumulative for each calendar quarter and addressthe impact on the subcontractorrsquos workforce At a minimumthe subcontractor shall providemdash

(A) A brief description of the types of jobs createdand jobs retained in the United States and outlying areas (seedefinition in FAR 2101) This description may rely on jobtitles broader labor categories or the subcontractorrsquos existingpractice for describing jobs as long as the terms used arewidely understood and describe the general nature of thework and

(B) An estimate of the number of jobs created andjobs retained by the subcontractor in the United States andoutlying areas A job cannot be reported as both created andretained See an example of how to calculate the number ofjobs at httpwwwwhitehousegovombrecovery_faqs_contractors

(End of clause)

52205 [Reserved]

52206 [Reserved]

FAC 2005ndash43 JULY 2 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
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Page 27: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52212-5

522-39

pose This paragraph does not give the Government any right toaudit the Contractorrsquos records The Contractor shall not be paidfor any work performed or costs incurred that reasonably couldhave been avoided

52212-5 Contract Terms and Conditions Required to Implement Statutes or Executive OrdersmdashCommercial ItemsAs prescribed in 12301(b)(4) insert the following clause

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERSmdash

COMMERCIAL ITEMS (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses which are incorpo-rated in this contract by reference to implement provisions oflaw or Executive orders applicable to acquisitions of commer-cial items

(1) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

___Alternate I (AUG 2007) of 52222-50 (22 USC7104(g))

(2) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(3) 52233-4 Applicable Law for Breach of ContractClaim (OCT 2004) (Pub L 108-77 108-78)

(b) The Contractor shall comply with the FAR clauses inthis paragraph (b) that the Contracting Officer has indicated asbeing incorporated in this contract by reference to implementprovisions of law or Executive orders applicable to acquisi-tions of commercial items

[Contracting Officer check as appropriate]

__ (1) 52203-6 Restrictions on Subcontractor Sales tothe Government (SEPT 2006) with Alternate I (OCT 1995)(41 USC 253g and 10 USC 2402)

__ (2) 52203-13 Contractor Code of Business Ethicsand Conduct (APR 2010) (Pub L 110-252 Title VIChapter 1 (41 USC 251 note))

__ (3) 52203-15 Whistleblower Protections under theAmerican Recovery and Reinvestment Act of 2009(JUNE 2010) (Section 1553 of Pub L 111-5) (Applies tocontracts funded by the American Recovery andReinvestment Act of 2009)

__ (4) 52204-11 American Recovery andReinvestment ActmdashReporting Requirements (JUL 2010)(Pub L 111-5)

__ (5) 52219-3 Notice of Total HUBZone Set-Aside(JAN 1999) (15 USC 657a)

__ (6) 52219-4 Notice of Price Evaluation Preferencefor HUBZone Small Business Concerns (JULY 2005) (if theofferor elects to waive the preference it shall so indicate in itsoffer) (15 USC 657a)

__ (7) [Reserved]

__ (8)(i) 52219-6 Notice of Total Small Business Set-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-6__ (iii) Alternate II (MAR 2004) of 52219-6

__ (9)(i) 52219-7 Notice of Partial Small BusinessSet-Aside (JUNE 2003) (15 USC 644)

__ (ii) Alternate I (OCT 1995) of 52219-7__ (iii) Alternate II (MAR 2004) of 52219-7

__ (10) 52219-8 Utilization of Small BusinessConcerns (MAY 2004) (15 USC 637(d)(2) and (3))

__ (11)(i) 52219-9 Small Business SubcontractingPlan (APR 2008) (15 USC 637(d)(4))

__ (ii) Alternate I (OCT 2001) of 52219-9__ (iii) Alternate II (OCT 2001) of 52219-9

__ (12) 52219-14 Limitations on Subcontracting(DEC 1996) (15 USC 637(a)(14))

__ (13) 52219-16 Liquidated DamagesmdashSubcon-tracting Plan (JAN 1999) (15 USC 637(d)(4)(F)(i))

__ (14)(i) 52219-23 Notice of Price EvaluationAdjustment for Small Disadvantaged Business Concerns(OCT 2008) (10 USC 2323) (if the offeror elects to waivethe adjustment it shall so indicate in its offer)

__ (ii) Alternate I (JUNE 2003) of 52219-23__ (15) 52219-25 Small Disadvantaged Business

Participation ProgrammdashDisadvantaged Status and Reporting(APR 2008) (Pub L 103-355 section 7102 and10 USC 2323)

__ (16) 52219-26 Small Disadvantaged BusinessParticipation Programmdash Incentive Subcontracting(OCT 2000) (Pub L 103-355 section 7102 and10 USC 2323)

__ (17) 52219-27 Notice of Total Service-DisabledVeteran-Owned Small Business Set-Aside (MAY 2004)(15 USC 657 f)

__ (18) 52219-28 Post Award Small BusinessProgram Rerepresentation (APR 2009) (15 USC 632(a)(2))

__ (19) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

__ (20) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126)

__ (21) 52222-21 Prohibition of Segregated Facilities(FEB 1999)

__ (22) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

__ (23) 52222-35 Equal Opportunity for SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (24) 52222-36 Affirmative Action for Workers withDisabilities (JUN 1998) (29 USC 793)

__ (25) 52222-37 Employment Reports on SpecialDisabled Veterans Veterans of the Vietnam Era and OtherEligible Veterans (SEPT 2006) (38 USC 4212)

__ (26) 52222-54 Employment Eligibility Verification(JAN 2009) (Executive Order 12989) (Not applicable to theacquisition of commercially available off-the-shelf items or

FAC 2005ndash43 JULY 2 2010

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 28: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

52212-5 FEDERAL ACQUISITION REGULATION

522-40

certain other types of commercial items as prescribed in221803)

__ (27)(i) 52223-9 Estimate of Percentage of Recov-ered Material Content for EPAndashDesignated Items(MAY 2008) (42 USC 6962(c)(3)(A)(ii)) (Not applicableto the acquisition of commercially available off-the-shelfitems)

__ (ii) Alternate I (MAY 2008) of 52223-9(42 USC 6962(i)(2)(C)) (Not applicable to the acquisitionof commercially available off-the-shelf items)

__ (28) 52223-15 Energy Efficiency in Energy-Consuming Products (DEC 2007) (42 USC 8259b)

__ (29)(i) 52223-16 IEEE 1680 Standard for theEnvironmental Assessment of Personal Computer Products(DEC 2007) (EO 13423)

__ (ii) Alternate I (DEC 2007) of 52223-16__ (30) 52225-1 Buy American ActmdashSupplies

(FEB 2009) (41 USC 10a-10d)__ (31)(i) 52225-3 Buy American ActmdashFree Trade

AgreementsmdashIsraeli Trade Act (JUNE 2009) (41 USC 10a-10d 19 USC 3301 note 19 USC 2112 note 19 USC3805 note Pub L 108-77 108-78 108-286 108-302 109-53 109-169 109-283 and 110-138)

__ (ii) Alternate I (JAN 2004) of 52225-3__ (iii) Alternate II (JAN 2004) of 52225-3

__ (32) 52225-5 Trade Agreements (AUG 2009)(19 USC 2501 et seq 19 USC 3301 note)

__ (33) 52225-13 Restrictions on Certain ForeignPurchases (JUNE 2008) (EOrsquos proclamations and statutesadministered by the Office of Foreign Assets Control of theDepartment of the Treasury)

__ (34) 52226-4 Notice of Disaster or Emergency AreaSet-Aside (NOV 2007) (42 USC 5150)

__ (35) 52226-5 Restrictions on SubcontractingOutside Disaster or Emergency Area (NOV 2007) (42 USC5150)

__ (36) 52232-29 Terms for Financing of Purchases ofCommercial Items (FEB 2002) (41 USC 255(f)10 USC 2307(f))

__ (37) 52232-30 Installment Payments forCommercial Items (OCT 1995) (41 USC 255(f)10 USC 2307(f))

__ (38) 52232-33 Payment by Electronic FundsTransfermdashCentral Contractor Registration (OCT 2003)(31 USC 3332)

__ (39) 52232-34 Payment by Electronic FundsTransfermdashOther than Central Contractor Registration(MAY 1999) (31 USC 3332)

__ (40) 52232-36 Payment by Third Party (FEB 2010)(31 USC 3332)

__ (41) 52239-1 Privacy or Security Safeguards(AUG 1996) (5 USC 552a)

__ (42)(i) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC Appx 1241(b) and 10 USC 2631)

__ (ii) Alternate I (Apr 2003) of 52247-64(c) The Contractor shall comply with the FAR clauses in

this paragraph (c) applicable to commercial services that theContracting Officer has indicated as being incorporated in thiscontract by reference to implement provisions of law or Exec-utive orders applicable to acquisitions of commercial items[Contracting Officer check as appropriate]

__ (1) 52222-41 Service Contract Act of 1965(Nov 2007) (41 USC 351 et seq)

__ (2) 52222-42 Statement of Equivalent Rates forFederal Hires (MAY 1989) (29 USC 206 and41 USC 351 et seq)

__ (3) 52222-43 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (Multiple Year and OptionContracts) (SEP 2009) (29 USC 206 and 41 USC 351et seq)

__ (4) 52222-44 Fair Labor Standards Act and ServiceContract ActmdashPrice Adjustment (SEP 2009) (29 USC 206and 41 USC 351 et seq)

__ (5) 52222-51 Exemption from Application of theService Contract Act to Contracts for MaintenanceCalibration or Repair of Certain EquipmentmdashRequirements(NOV 2007) (41 351 et seq)

__ (6) 52222-53 Exemption from Application of theService Contract Act to Contracts for Certain ServicesmdashRequirements (FEB 2009) (41 USC 351 et seq)

__ (7) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)

__ (8) 52237-11 Accepting and Dispensing of $1 Coin(SEPT 2008) (31 USC 5112(p)(1))

(d) Comptroller General Examination of Record TheContractor shall comply with the provisions of thisparagraph (d) if this contract was awarded using other thansealed bid is in excess of the simplified acquisition thresholdand does not contain the clause at 52215-2 Audit andRecordsmdashNegotiation

(1) The Comptroller General of the United States or anauthorized representative of the Comptroller General shallhave access to and right to examine any of the Contractorrsquosdirectly pertinent records involving transactions related to thiscontract

(2) The Contractor shall make available at its offices atall reasonable times the records materials and other evidencefor examination audit or reproduction until 3 years afterfinal payment under this contract or for any shorter periodspecified in FAR Subpart 47 Contractor Records Retentionof the other clauses of this contract If this contract iscompletely or partially terminated the records relating to thework terminated shall be made available for 3 years after anyresulting final termination settlement Records relating toappeals under the disputes clause or to litigation or the settle-ment of claims arising under or relating to this contract shall

FAC 2005ndash38 FEBRUARY 1 2010

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 29: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52213-4

522-421

to make fast payment the Contractor shall be paid in accor-dance with procedures applicable to invoices to which the FastPayment clause does not apply

(End of clause)

52213-2 InvoicesAs prescribed in 13302-5(b) insert the following clause

INVOICES (APR 1984)

The Contractorrsquos invoices must be submitted before pay-ment can be made The Contractor will be paid on the basisof the invoice which must statemdash

(a) The starting and ending dates of the subscription deliv-ery and

(b) Either that orders have been placed in effect for theaddressees required or that the orders will be placed in effectupon receipt of payment

(End of clause)

52213-3 Notice to SupplierAs prescribed in 13302-5(c) insert the following clause

NOTICE TO SUPPLIER (APR 1984)

This is a firm order ONLY if your price does not exceed themaximum line item or total price in the Schedule Submitinvoices to the Contracting Officer If you cannot perform inexact accordance with this order WITHHOLD PERFORMANCEand notify the Contracting Officer immediately giving yourquotation

(End of clause)

52213-4 Terms and ConditionsmdashSimplified Acquisitions (Other Than Commercial Items)As prescribed in 13302-5(d) insert the following clause

TERMS AND CONDITIONSmdashSIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL ITEMS) (JUL 2010)

(a) The Contractor shall comply with the following FederalAcquisition Regulation (FAR) clauses that are incorporatedby reference

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-3 Convict Labor (JUNE 2003)(EO 11755)

(ii) 52222-21 Prohibition of Segregated Facilities(FEB 1999) (EO 11246)

(iii) 52222-26 Equal Opportunity (MAR 2007)(EO 11246)

(iv) 52222-50 Combating Trafficking in Persons(FEB 2009) (22 USC 7104(g))

(v) 52225-13 Restrictions on Certain Foreign Pur-chases (JUNE 2008) (Eos proclamations and statutes admin-

istered by the Office of Foreign Assets Control of theDepartment of the Treasury)

(vi) 52233-3 Protest After Award (AUG 1996)(31 USC 3553)

(vii) 52233-4 Applicable Law for Breach of Con-tract Claim (OCT 2004) (Pub L 108-77 108-78)

(2) Listed below are additional clauses that apply(i) 52232-1 Payments (APR 1984)(ii) 52232-8 Discounts for Prompt Payment

(FEB 2002)(iii) 52232-11 Extras (APR 1984)(iv) 52232-25 Prompt Payment (OCT 2008)(v) 52233-1 Disputes (JULY 2002)(vi) 52244-6 Subcontracts for Commercial Items

(JUNE 2010)(vii) 52253-1 Computer Generated Forms

(JAN 1991)(b) The Contractor shall comply with the following FAR

clauses incorporated by reference unless the circumstancesdo not apply

(1) The clauses listed below implement provisions oflaw or Executive order

(i) 52222-19 Child LabormdashCooperation withAuthorities and Remedies (JUL 2010) (EO 13126) (Appliesto contracts for supplies exceeding the micro-purchase thresh-old)

(ii) 52222-20 Walsh-Healey Public Contracts Act(DEC 1996) (41 USC 35-45) (Applies to supply contractsover $10000 in the United States Puerto Rico or the USVirgin Islands)

(iii) 52222-35 Equal Opportunity for Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(iv) 52222-36 Affirmative Action for Workers withDisabilities (JUNE 1998) (29 USC 793) (Applies to con-tracts over $10000 unless the work is to be performed outsidethe United States by employees recruited outside the UnitedStates) (For purposes of this clause United States includesthe 50 States the District of Columbia Puerto Rico theNorthern Mariana Islands American Samoa Guam the USVirgin Islands and Wake Island)

(v) 52222-37 Employment Reports on Special Dis-abled Veterans Veterans of the Vietnam Era and Other Eligi-ble Veterans (SEPT 2006) (38 USC 4212) (Applies tocontracts of $100000 or more)

(vi) 52222-41 Service Contract Act of 1965(NOV 2007) (41 USC 351 et seq) (Applies to service con-tracts over $2500 that are subject to the Service Contract Actand will be performed in the United States District of Colum-bia Puerto Rico the Northern Mariana Islands AmericanSamoa Guam the US Virgin Islands Johnston Island WakeIsland or the outer continental shelf lands)

FAC 2005ndash43 JULY 2 2010

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 30: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

52213-4 FEDERAL ACQUISITION REGULATION

522-422

(vii) 52223-5 Pollution Prevention and Right-to-Know Information (AUG 2003) (EO 13148) (Applies to ser-vices performed on Federal facilities)

(viii) 52223-15 Energy Efficiency in Energy-Con-suming Products (DEC 2007) (42 USC 8259b) (Unlessexempt pursuant to 23204 applies to contracts when energy-consuming products listed in the ENERGY STARreg Programor Federal Energy Management Program (FEMP) will bemdash

(A) Delivered(B) Acquired by the Contractor for use in per-

forming services at a Federally-controlled facility(C) Furnished by the Contractor for use by the

Government or(D) Specified in the design of a building or work

or incorporated during its construction renovation or main-tenance)

(ix) 52225-1 Buy American ActmdashSupplies(FEB 2009) (41 USC 10a-10d) (Applies to contracts forsupplies and to contracts for services involving the furnishingof supplies for use in the United States or its outlying areasif the value of the supply contract or supply portion of a ser-vice contract exceeds the micro-purchase threshold and theacquisitionmdash

(A) Is set aside for small business concerns or(B) Cannot be set aside for small business con-

cerns (see 19502-2) and does not exceed $25000)(x) 52232-33 Payment by Electronic Funds Trans-

fermdashCentral Contractor Registration (OCT 2003) (Applieswhen the payment will be made by electronic funds transfer(EFT) and the payment office uses the Central ContractorRegistration (CCR) database as its source of EFTinformation)

(xi) 52232-34 Payment by Electronic Funds Trans-fermdashOther than Central Contractor Registration (MAY 1999)(Applies when the payment will be made by EFT and the pay-ment office does not use the CCR database as its source ofEFT information)

(xii) 52247-64 Preference for Privately OwnedUS-Flag Commercial Vessels (FEB 2006)(46 USC App 1241) (Applies to supplies transported byocean vessels (except for the types of subcontracts listed at47504(d))

(2) Listed below are additional clauses that may apply(i) 52209-6 Protecting the Governmentrsquos Interest

When Subcontracting with Contractors Debarred Suspendedor Proposed for Debarment (SEPT 2006) (Applies to contractsover $30000)

(ii) 52211-17 Delivery of Excess Quantities(SEPT 1989) (Applies to fixed-price supplies)

(iii) 52226-6 Promoting Excess Food Donation toNonprofit Organizations (MAR 2009) (Pub L 110-247)(Applies to contracts greater than $25000 that provide for theprovision the service or the sale of food in the United States)

(iv) 52247-29 Fob Origin (FEB 2006) (Applies tosupplies if delivery is fob origin)

(v) 52247-34 Fob Destination (NOV 1991)(Applies to supplies if delivery is fob destination)

(c) FAR 52252-2 Clauses Incorporated by Reference(FEB 1998) This contract incorporates one or more clauses byreference with the same force and effect as if they were givenin full text Upon request the Contracting Officer will maketheir full text available Also the full text of a clause may beaccessed electronically at thisthese address(es)________________________________________________________________________________________________

[Insert one or more Internet addresses]

(d) InspectionAcceptance The Contractor shall tender foracceptance only those items that conform to the requirementsof this contract The Government reserves the right to inspector test any supplies or services that have been tendered foracceptance The Government may require repair or replace-ment of nonconforming supplies or reperformance of noncon-forming services at no increase in contract price TheGovernment must exercise its postacceptance rightsmdash

(1) Within a reasonable period of time after the defectwas discovered or should have been discovered and

(2) Before any substantial change occurs in the condi-tion of the item unless the change is due to the defect in theitem

(e) Excusable delays The Contractor shall be liable fordefault unless nonperformance is caused by an occurrencebeyond the reasonable control of the Contractor and withoutits fault or negligence such as acts of God or the publicenemy acts of the Government in either its sovereign or con-tractual capacity fires floods epidemics quarantine restric-tions strikes unusually severe weather and delays ofcommon carriers The Contractor shall notify the ContractingOfficer in writing as soon as it is reasonably possible after thecommencement of any excusable delay setting forth the fullparticulars in connection therewith shall remedy such occur-rence with all reasonable dispatch and shall promptly givewritten notice to the Contracting Officer of the cessation ofsuch occurrence

(f) Termination for the Governments convenience TheGovernment reserves the right to terminate this contract orany part hereof for its sole convenience In the event of suchtermination the Contractor shall immediately stop all workhereunder and shall immediately cause any and all of its sup-pliers and subcontractors to cease work Subject to the termsof this contract the Contractor shall be paid a percentage ofthe contract price reflecting the percentage of the work per-formed prior to the notice of termination plus reasonablecharges that the Contractor can demonstrate to the satisfactionof the Government using its standard record keeping systemhave resulted from the termination The Contractor shall not

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 31: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

SUBPART 522mdashTEXT OF PROVISIONS AND CLAUSES 52222-18

522-111

A breach of the contract clauses entitled Davis-Bacon ActContract Work Hours and Safety Standards ActmdashOvertimeCompensation Apprentices and Trainees Payrolls and BasicRecords Compliance with Copeland Act Requirements Sub-contracts (Labor Standards) Compliance with Davis-Baconand Related Act Regulations or Certification of Eligibilitymay be grounds for termination of the contract and for debar-ment as a Contractor and subcontractor as provided in 29 CFR512

(End of clause)

52222-13 Compliance with Davis-Bacon and Related Act RegulationsAs prescribed in 22407(a) insert the following clause

COMPLIANCE WITH DAVIS-BACON AND RELATED ACT REGULATIONS (FEB 1988)

All rulings and interpretations of the Davis-Bacon andRelated Acts contained in 29 CFR parts 1 3 and 5 are herebyincorporated by reference in this contract

(End of clause)

52222-14 Disputes Concerning Labor StandardsAs prescribed in 22407(a) insert the following clause

DISPUTES CONCERNING LABOR STANDARDS (FEB 1988)

The United States Department of Labor has set forth in29 CFR parts 5 6 and 7 procedures for resolving disputesconcerning labor standards requirements Such disputes shallbe resolved in accordance with those procedures and not theDisputes clause of this contract Disputes within the meaningof this clause include disputes between the Contractor (or anyof its subcontractors) and the contracting agency the USDepartment of Labor or the employees or theirrepresentatives

(End of clause)

52222-15 Certification of EligibilityAs prescribed in 22407(a) insert the following clause

CERTIFICATION OF ELIGIBILITY (FEB 1988)

(a) By entering into this contract the Contractor certifiesthat neither it (nor he or she) nor any person or firm who hasan interest in the Contractorrsquos firm is a person or firm ineligi-ble to be awarded Government contracts by virtue ofsection 3(a) of the Davis-Bacon Act or 29 CFR 512(a)(1)

(b) No part of this contract shall be subcontracted to anyperson or firm ineligible for award of a Government contractby virtue of section 3(a) of the Davis-Bacon Act or 29 CFR512(a)(1)

(c) The penalty for making false statements is prescribedin the US Criminal Code 18 USC 1001

(End of clause)

52222-16 Approval of Wage RatesAs prescribed in 22407(b) insert the following clause

APPROVAL OF WAGE RATES (FEB 1988)

All straight time wage rates and overtime rates basedthereon for laborers and mechanics engaged in work underthis contract must be submitted for approval in writing by thehead of the contracting activity or a representative expresslydesignated for this purpose if the straight time wages exceedthe rates for corresponding classifications contained in theapplicable Davis-Bacon Act minimum wage determinationincluded in the contract Any amount paid by the Contractorto any laborer or mechanic in excess of the agency approvedwage rate shall be at the expense of the Contractor and shallnot be reimbursed by the Government If the Governmentrefuses to authorize the use of the overtime the Contractor isnot released from the obligation to pay employees at therequired overtime rates for any overtime actually worked

(End of clause)

52222-17 [Reserved]

52222-18 Certification Regarding Knowledge of Child Labor for Listed End ProductsAs prescribed in 221505(a) insert the following

provision

CERTIFICATION REGARDING KNOWLEDGE OF CHILD LABOR FOR LISTED END PRODUCTS (FEB 2001)

(a) DefinitionldquoForced or indentured child laborrdquo means all work or

servicemdash(1) Exacted from any person under the age of 18 under

the menace of any penalty for its nonperformance and forwhich the worker does not offer himself voluntarily or

(2) Performed by any person under the age of 18 pursu-ant to a contract the enforcement of which can be accom-plished by process or penalties

(b) Listed end products The following end product(s)being acquired under this solicitation is (are) included in theList of Products Requiring Contractor Certification as toForced or Indentured Child Labor identified by their countryof origin There is a reasonable basis to believe that listed endproducts from the listed countries of origin may have been

FAC 2005ndash17 JUNE 14 2007

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 32: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

52222-19 FEDERAL ACQUISITION REGULATION

522-112

mined produced or manufactured by forced or indenturedchild labor

(c) Certification The Government will not make award toan offeror unless the offeror by checking the appropriateblock certifies to either paragraph (c)(1) or paragraph (c)(2)of this provision

[ ] (1) The offeror will not supply any end productlisted in paragraph (b) of this provision that was minedproduced or manufactured in a corresponding country aslisted for that end product

[ ] (2) The offeror may supply an end product listed inparagraph (b) of this provision that was mined produced ormanufactured in the corresponding country as listed for thatproduct The offeror certifies that it has made a good faitheffort to determine whether forced or indentured child laborwas used to mine produce or manufacture such end productOn the basis of those efforts the offeror certifies that it is notaware of any such use of child labor

(End of provision)

52222-19 Child LabormdashCooperation with Authorities and RemediesAs prescribed in 221505(b) insert the following clause

CHILD LABORmdashCOOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

(a) Applicability This clause does not apply to the extentthat the Contractor is supplying end products mined pro-duced or manufactured inmdash

(1) Canada and the anticipated value of the acquisitionis $25000 or more

(2) Israel and the anticipated value of the acquisition is$50000 or more

(3) Mexico and the anticipated value of the acquisitionis $70079 or more or

(4) Aruba Austria Belgium Bulgaria Cyprus CzechRepublic Denmark Estonia Finland France GermanyGreece Hong Kong Hungary Iceland Ireland Italy JapanKorea Latvia Liechtenstein Lithuania Luxembourg MaltaNetherlands Norway Poland Portugal Romania SingaporeSlovak Republic Slovenia Spain Sweden Switzerland Tai-wan or the United Kingdom and the anticipated value of theacquisition is $203000 or more

(b) Cooperation with Authorities To enforce the laws pro-hibiting the manufacture or importation of products minedproduced or manufactured by forced or indentured childlabor authorized officials may need to conduct investigationsto determine whether forced or indentured child labor wasused to mine produce or manufacture any product furnishedunder this contract If the solicitation includes the provision52222-18 Certification Regarding Knowledge of ChildLabor for Listed End Products or the equivalent at52212-3(i) the Contractor agrees to cooperate fully withauthorized officials of the contracting agency the Departmentof the Treasury or the Department of Justice by providing rea-sonable access to records documents persons or premisesupon reasonable request by the authorized officials

(c) Violations The Government may impose remedies setforth in paragraph (d) for the following violations

(1) The Contractor has submitted a false certificationregarding knowledge of the use of forced or indentured childlabor for listed end products

(2) The Contractor has failed to cooperate if requiredin accordance with paragraph (b) of this clause with an inves-tigation of the use of forced or indentured child labor by anInspector General Attorney General or the Secretary of theTreasury

Listed End Product Listed Countries of Origin_________________ __________________________________ _________________

FAC 2005ndash43 JULY 2 2010

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf
Page 33: FEDERAL ACQUISITION CIRCULAR...15, 32, 42, 45, and 52. These changes are to clarify and correct the previous FAR rule for part 45, Government Property, published under Federal Acquisition

FAC 2005-43 FILING INSTRUCTIONS

NOTE THE 30-DAY PAGES WILL BE POSTED ON THEIR EFFECTIVE DATE OF AUGUST 2 2010

  • Looseleaf_FAC 2005-43pdf
  • FAR 131pdf
  • FAR 132pdf
  • FAR 571pdf
  • FAR 572pdf
  • FAR 617pdf
  • FAR 618pdf
  • FAR 623pdf
  • FAR 624pdf
  • FAR 625pdf
  • FAR 626pdf
  • FAR 629pdf
  • FAR 630pdf
  • FAR 641pdf
  • FAR 642pdf
  • FAR 1203pdf
  • FAR 1204pdf
  • FAR 1237pdf
  • FAR 1238pdf
  • FAR 1241pdf
  • FAR 1242pdf
  • FAR 1315pdf
  • FAR 1316pdf