[Federal Register: September 15, 2008 (Volume 73, Number 179)]
[Rules and Regulations]               
[Page 53151-53156]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15se08-18]                         

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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 206, 225, and 252

RIN 0750-AG02

 
Defense Federal Acquisition Regulation Supplement; Acquisitions 
in Support of Operations in Iraq or Afghanistan (DFARS Case 2008-D002)

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

ACTION: Interim rule with request for comments.

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SUMMARY: DoD has issued an interim rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to implement Sections 886 and 
892 of the National Defense Authorization Act for Fiscal Year 2008. 
Section 886 provides authority for DoD to limit competition when 
acquiring products or services in support of operations in Iraq or 
Afghanistan. Section 892 addresses competition requirements for the 
procurement of small arms for assistance to Iraq or Afghanistan.

DATES: Effective date: September 15, 2008.
    Comment date: Comments on the interim rule should be submitted in 
writing to the address shown below on or before November 14, 2008, to 
be considered in the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2008-D002, 
using any of the following methods:
    [cir] Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    [cir] E-mail: dfars@osd.mil. Include DFARS Case 2008-D002 in the 
subject line of the message.
    [cir] Fax: 703-602-7887.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. Amy 
Williams, OUSD (AT&L) DPAP (DARS), IMD 3D139, 3062 Defense Pentagon, 
Washington, DC 20301-3062.
    [cir] Hand Delivery/Courier: Defense Acquisition Regulations 
System, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 
22202-3402.
    Comments received generally will be posted without change to http:/
/www.regulations.gov, including any personal information provided.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, 703-602-0328.

SUPPLEMENTARY INFORMATION:

A. Background

    Section 886 of the National Defense Authorization Act for Fiscal 
Year 2008 (Pub. L. 110-181) provides authority for DoD to limit 
competition when acquiring products or services in support of military 
operations or stability operations in Iraq or Afghanistan (including 
security, transition, reconstruction, and humanitarian relief 
activities) under certain circumstances. In those circumstances, and 
when the required determination is made, Section 886 authorizes DoD 
to--
    [cir] Limit competition to products or services from Iraq or 
Afghanistan;

[[Page 53152]]

    [cir] Restrict an acquisition to a particular source or sources 
from Iraq or Afghanistan; or
    [cir] Provide a preference for products or services from Iraq or 
Afghanistan.
    House Conference Report 110-477 requires DoD to submit a semi-
annual report to the congressional defense committees addressing the 
use of the authority provided in Section 886 through the end of fiscal 
year 2009.
    Section 892 of Public Law 110-181 applies to acquisitions of small 
arms for assistance to the Army of Iraq or Afghanistan, the Police 
Forces of Iraq or Afghanistan, and other security organizations of Iraq 
or Afghanistan. For such acquisitions, Section 892 contains 
requirements for DoD to ensure, consistent with 10 U.S.C. 2304, that--
    [cir] Full and open competition is obtained to the maximum extent 
practicable;
    [cir] No responsible U.S. manufacturer is excluded from competing 
for such acquisitions; and
    [cir] Products manufactured in the United States are not excluded 
from the competition.
    This interim rule includes--
    [cir] A new Subpart 225.77 to implement the new statutory 
provisions.
    [cir] A new Trade Agreements provision, and alternate paragraphs 
for use with the existing Trade Agreements clause, to remove the 
prohibition against acceptance of Iraqi end products that would 
otherwise apply to acquisitions subject to the Trade Agreements Act.
    [cir] A new solicitation provision and contract clause to implement 
the preference for Iraqi and Afghani products authorized by Section 
886. The rule permits tailoring of the provision and clause to provide 
a preference for products of only Iraq or only Afghanistan as 
appropriate.
    [cir] A new contract clause for use in acquisitions conducted using 
the authority of Section 886 to restrict an acquisition to Iraqi or 
Afghani items or sources.
    [cir] Direction that contracting officers should not use Buy 
American Act/Balance of Payments Program/Trade Agreements provisions or 
clauses that might otherwise apply if the acquisition were not 
conducted using the authority of Section 886.
    [cir] Direction that, for acquisitions conducted using the 
authority of Section 886, the justification and approval addressed in 
FAR Subpart 6.3 is not required; DoD considers the authority of Section 
886 to operate independently of the competition requirements of 10 
U.S.C. 2304. However, the rule contains requirements for a written 
determination to document the rationale for the selected acquisition 
procedure, in accordance with Section 886.
    [cir] Clarification that construction contracts are included within 
the scope of acquisitions that may be conducted using the authority of 
Section 886, consistent with the statutory intent of providing a stable 
source of jobs and employment in Iraq and Afghanistan.
    [cir] Exclusion of small arms from the items that may be acquired 
using the authority of Section 886, in view of the specific requirement 
for competition in the acquisition of small arms addressed in Section 
892 of Public Law 110-181.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    DoD does not expect this rule to have a significant economic impact 
on a substantial number of small entities within the meaning of the 
Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because application 
of the rule is limited to acquisitions in support of operations in Iraq 
or Afghanistan. Therefore, DoD has not performed an initial regulatory 
flexibility analysis. DoD invites comments from small businesses and 
other interested parties. DoD also will consider comments from small 
entities concerning the affected DFARS subparts in accordance with 5 
U.S.C. 610. Such comments should be submitted separately and should 
cite DFARS Case 2008-D002.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply, because the rule does 
not impose any information collection requirements that require the 
approval of the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

D. Determination to Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense that urgent and compelling reasons exist to publish an 
interim rule prior to affording the public an opportunity to comment. 
This interim rule implements Sections 886 and 892 of the National 
Defense Authorization Act for Fiscal Year 2008 (Pub. L. 110-181). 
Section 886 provides special authority for use in the acquisition of 
products or services in support of operations in Iraq or Afghanistan. 
Section 892 requires DoD to ensure that competition is obtained to the 
maximum extent practicable when acquiring small arms for assistance to 
Iraq or Afghanistan. Comments received in response to this interim rule 
will be considered in the formation of the final rule.

List of Subjects in 48 CFR Parts 206, 225, and 252

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.

0
Therefore, 48 CFR parts 206, 225, and 252 are amended as follows:
0
1. The authority citation for 48 CFR Parts 206, 225, and 252 continues 
to read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 206--COMPETITION REQUIREMENTS

0
2. Sections 206.303 and 206.303-70 are added to read as follows:


206.303  Justifications.


206.303-70  Acquisitions in support of operations in Iraq or 
Afghanistan.

    The justification and approval addressed in FAR 6.303 is not 
required for acquisitions conducted using a procedure specified in 
225.7703-1(a).

PART 225--FOREIGN ACQUISITION

0
3. Section 225.401-71 is added to read as follows:


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

    When acquiring products or services, other than small arms, in 
support of operations in Iraq or Afghanistan using a procedure 
specified in 225.7703-1(a), the purchase restriction at FAR 25.403(c) 
does not apply with regard to products or services from Iraq.

0
4. Section 225.502 is amended by revising paragraph (b)(i) and adding 
paragraph (c)(iv) to read as follows:


225.502  Application.

    (b) * * *
    (i) Consider only offers of U.S.-made, qualifying country, or 
designated country end products, except as permitted by 225.403 or 
225.7703-1.
* * * * *
    (c) * * *
    (iv) If the solicitation includes the provision at 252.225-7023, 
Preference for Products or Services from Iraq or Afghanistan, use the 
evaluation procedures at 225.7703-3.

0
5. Section 225.1101 is amended as follows:
0
a. In paragraph (2)(iii), by removing ``or'';

[[Page 53153]]

0
b. In paragraph (2)(iv)(B), by removing the period and adding in its 
place ``; or'';
0
c. By adding paragraph (2)(v);
0
d. By revising paragraphs (5) and (6);
0
e. By redesignating paragraphs (7) through (10) as paragraphs (8) 
through (11) respectively;
0
f. By adding a new paragraph (7);
0
g. In newly designated paragraph (11)(ii)(A), by removing ``or'';
0
h. In newly designated paragraph (11)(ii)(B), by removing the period at 
the end and adding in its place ``; or''; and
0
i. By adding paragraph (11)(ii)(C) to read as follows:


225.1101  Acquisition of supplies.

* * * * *
    (2) * * *
    (v) All line items will be acquired using a procedure specified in 
225.7703-1(a).
* * * * *
    (5) Except as provided in paragraph (7) of this section, use the 
provision at 252.225-7020, Trade Agreements Certificate, instead of the 
provision at FAR 52.225-6, Trade Agreements Certificate, in 
solicitations that include the clause at 252.225-7021, Trade 
Agreements.
    (6)(i) Use the clause at 252.225-7021, Trade Agreements, instead of 
the clause at FAR 52.225-5, Trade Agreements, if the Trade Agreements 
Act applies.
    (ii) Use the clause with its Alternate I in solicitations and 
contracts that include the clause at 252.225-7024, Requirement for 
Products or Services from Iraq or Afghanistan, unless the clause at 
252.225-7024 has been modified to provide a preference only for the 
products of Afghanistan.
    (iii) Do not use the clause if--
    (A) Purchase from foreign sources is restricted, unless the 
contracting officer anticipates a waiver of the restriction; or
    (B) The clause at 252.225-7026, Acquisition Restricted to Products 
or Services from Iraq or Afghanistan, is included in the solicitation 
and contract.
    (iv) The acquisition of eligible and noneligible products under the 
same contract may result in the application of trade agreements to only 
some of the items acquired. In such case, indicate in the Schedule 
those items covered by the Trade Agreements clause.
    (7) Use the provision at 252.225-7022, Trade Agreements 
Certificate--Inclusion of Iraqi End Products, instead of the provision 
at FAR 52.225-6, Trade Agreements Certificate, in solicitations that 
include the clause at 252.225-7021, Trade Agreements, with its 
Alternate I.
* * * * *
    (11) * * *
    (ii) * * *
    (C) Using a procedure specified in 225.7703-1(a).
* * * * *

0
6. Section 225.7501 is amended as follows:
0
a. By redesignating paragraphs (a)(5) and (6) as paragraphs (a)(6) and 
(7) respectively; and
0
b. By adding a new paragraph (a)(5) to read as follows:


225.7501  Policy.

* * * * *
    (a) * * *
    (5) Use of a procedure specified in 225.7703-1(a) is authorized for 
an acquisition in support of operations in Iraq or Afghanistan;
* * * * *

0
7. Subpart 225.77 is added to read as follows:
Subpart 225.77--Acquisitions in Support of Operations in Iraq or 
Afghanistan
Sec.
225.7700 Scope.
225.7701 Definitions.
225.7702 Acquisition of small arms.
225.7703 Acquisition of products or services other than small arms.
225.7703-1 Acquisition procedures.
225.7703-2 Determination requirements.
225.7703-3 Evaluating offers.
225.7703-4 Reporting requirement.
225.7703-5 Solicitation provisions and contract clauses.

Subpart 225.77--Acquisitions in Support of Operations in Iraq or 
Afghanistan


225.7700   Scope.

    This subpart implements Section 886 and Section 892 of the National 
Defense Authorization Act for Fiscal Year 2008 (Public Law 110-181).


225.7701  Definitions.

    As used in this subpart--
    Product from Iraq or Afghanistan means a product that is mined, 
produced, or manufactured in Iraq or Afghanistan.
    Service from Iraq or Afghanistan means a service that is performed 
in Iraq or Afghanistan predominantly by citizens or permanent resident 
aliens of Iraq or Afghanistan.
    Small arms means pistols and other weapons less than 0.50 caliber.
    Source from Iraq or Afghanistan means a source that--
    (1) Is located in Iraq or Afghanistan; and
    (2) Offers products or services from Iraq or Afghanistan.


225.7702  Acquisition of small arms.

    (a) Except as provided in paragraph (b) of this section, when 
acquiring small arms for assistance to the Army of Iraq, the Army of 
Afghanistan, the Iraqi Police Forces, the Afghani Police Forces, or 
other Iraqi or Afghani security organizations--
    (1) Use full and open competition to the maximum extent 
practicable, consistent with the provisions of 10 U.S.C. 2304;
    (2) If use of other than full and open competition is justified in 
accordance with FAR Subpart 6.3, ensure that--
    (i) No responsible U.S. manufacturer is excluded from competing for 
the acquisition; and
    (ii) Products manufactured in the United States are not excluded 
from the competition; and
    (3) If the exception at FAR 6.302-2 (unusual and compelling 
urgency) applies, do not exclude responsible U.S. manufacturers or 
products manufactured in the United States from the competition for the 
purpose of administrative expediency. However, such an offer may be 
rejected if it does not meet delivery schedule requirements.
    (b) Paragraph (a)(2) of this section does not apply when--
    (1) The exception at FAR 6.302-1 (only one or a limited number of 
responsible sources) applies, and the only responsible source or 
sources are not U.S. manufacturers or are not offering products 
manufactured in the United States; or
    (2) The exception at FAR 6.302-4 (international agreement) applies, 
and United States manufacturers or products manufactured in the United 
States are not the source(s) specified in the written directions of the 
foreign government reimbursing the agency for the cost of the 
acquisition of the property or services for such government.


225.7703  Acquisition of products or services other than small arms.


225.7703-1  Acquisition procedures.

    (a) Subject to the requirements of 225.7703-2, a product or service 
(including construction), other than small arms, in support of 
operations in Iraq or Afghanistan, may be acquired by--
    (1) Providing a preference for products or services from Iraq or 
Afghanistan in accordance with the evaluation procedures at 225.7703-3;
    (2) Limiting competition to products or services from Iraq or 
Afghanistan; or
    (3) Using procedures other than competitive procedures to award a 
contract to a particular source or sources from Iraq or Afghanistan. 
When other than competitive procedures are used, the contracting 
officer shall document

[[Page 53154]]

the contract file with the rationale for selecting the particular 
source(s).
    (b) For acquisitions conducted using a procedure specified in 
paragraph (a) of this subsection, the justification and approval 
addressed in FAR Subpart 6.3 is not required.


225.7703-2  Determination requirements.

    Before use of a procedure specified in 225.7703-1(a), a written 
determination must be prepared and executed as follows:
    (a) For products or services to be used only by the military 
forces, police, or other security personnel of Iraq or Afghanistan, the 
contracting officer shall--
    (1) Determine in writing that the product or service is to be used 
only by the military forces, police, or other security personnel of 
Iraq or Afghanistan; and
    (2) Include the written determination in the contract file.
    (b) For products or services not limited to use by the military 
forces, police, or other security personnel of Iraq or Afghanistan, the 
following requirements apply:
    (1) The appropriate official specified in paragraph (b)(2) of this 
subsection must determine in writing that it is in the national 
security interest of the United States to use a procedure specified in 
225.7703-1(a), because--
    (i) The procedure is necessary to provide a stable source of jobs 
in Iraq or Afghanistan; and
    (ii) Use of the procedure will not adversely affect--
    (A) Operations in Iraq or Afghanistan (including security, 
transition, reconstruction, and humanitarian relief activities); or
    (B) The U.S. industrial base. The authorizing official generally 
may presume that there will not be an adverse effect on the U.S. 
industrial base. However, when in doubt, the authorizing official 
should coordinate with the applicable subject matter expert specified 
in PGI 225.7703-2(b).
    (2) Determinations may be made for an individual acquisition or a 
class of acquisitions meeting the criteria in paragraph (b)(1) of this 
subsection as follows:
    (i) The head of the contacting activity is authorized to make a 
determination that applies to an individual acquisition with a value of 
less than $78.5 million.
    (ii) The Director, Defense Procurement and Acquisition Policy, Acquisition Policy, and 
Strategic Sourcing, and the following officials, without power of 
redelegation, are authorized to make a determination that applies to an 
individual acquisition with a value of $78.5 million or more or to a 
class of acquisitions:
    (A) Defense Logistics Agency Component Acquisition Executive.
    (B) Army Acquisition Executive.
    (C) Navy Acquisition Executive.
    (D) Air Force Acquisition Executive.
    (3) The contracting officer--
    (i) Shall include the applicable written determination in the 
contract file; and
    (ii) Shall ensure that each contract action taken pursuant to the 
authority of a class determination is within the scope of the class 
determination, and shall document the contract file for each action 
accordingly.
    (c) See PGI 225.7703-2(c) for formats for use in preparation of the 
determinations required by this subsection.


225.7703-3  Evaluating offers.

    (a) Evaluate offers submitted in response to solicitations that 
include the provision at 252.225-7023, Preference for Products or 
Services from Iraq or Afghanistan, as follows:
    (1) If the low offer is an offer of a product or service from Iraq 
or Afghanistan, award on that offer.
    (2) If there are no offers of a product or service from Iraq or 
Afghanistan, award on the low offer.
    (3) Otherwise, apply the evaluation factor specified in the 
solicitation to the low offer.
    (i) If the price of the low offer of a product or service from Iraq 
or Afghanistan is less than the evaluated price of the low offer, award 
on the low offer of a product or service from Iraq or Afghanistan.
    (ii) If the evaluated price of the low offer remains less than the 
low offer of a product or service from Iraq or Afghanistan, award on 
the low offer.
    (b) If the provision at 252.225-7023 is modified to provide a 
preference exclusively for products or services from Iraq or 
Afghanistan, also modify the evaluation procedures in paragraph (a) of 
this subsection to remove ``or Afghanistan'' or ``Iraq or'', 
respectively, wherever the phrase appears.


225.7703-4  Reporting requirement.

    The following organizations shall submit periodic reports to the 
Deputy Director, Program Acquisition and Contingency Contracting, 
Defense Procurement and Acquisition Policy, Acquisition Policy, and Strategic Sourcing, in 
accordance with PGI 225.7703-4, to address the organization's use of 
the procedures authorized by this section:
    (a) The Joint Contracting Command (Iraq/Afghanistan).
    (b) The Department of the Army, except for contract actions 
reported by the Joint Contracting Command.
    (c) The Department of the Navy.
    (d) The Department of the Air Force.
    (e) The Defense Logistics Agency.
    (f) The other defense agencies and other DoD components that 
execute reportable contract actions.


225.7703-5  Solicitation provisions and contract clauses.

    (a) Use the provision at 252.225-7023, Preference for Products or 
Services from Iraq or Afghanistan, in solicitations that provide a 
preference for products or services from Iraq or Afghanistan in 
accordance with 225.7703-1(a)(1). The contracting officer--
    (1) May modify the provision to provide a preference exclusively 
for products or services from Iraq or exclusively for products or 
services from Afghanistan by removing ``or Afghanistan'' or ``Iraq 
or'', respectively, wherever the phrase appears in the provision. If 
this provision is so modified, the clause at 252.225-7024 shall be 
modified accordingly; and
    (2) May modify the 50 percent evaluation factor in accordance with 
contracting office procedures.
    (b) Use the clause at 252.225-7024, Requirement for Products or 
Services from Iraq or Afghanistan, in solicitations that include the 
provision at 252.225-7023, Preference for Products or Services from 
Iraq or Afghanistan, and in the resulting contract. If the provision at 
252.225-7023 has been modified to provide a preference exclusively for 
Iraq or exclusively for Afghanistan, in accordance with paragraph 
(a)(1) of this subsection, the clause at 252.225-7024 shall be modified 
accordingly.
    (c)(1) Use the clause at 252.225-7026, Acquisition Restricted to 
Products or Services from Iraq or Afghanistan, in solicitations and 
contracts that--
    (i) Are restricted to the acquisition of products or services from 
Iraq or Afghanistan in accordance with 225.7703-1(a)(2); or
    (ii) Will be directed to a particular source or sources from Iraq 
or Afghanistan in accordance with 225.7703-1(a)(3).
    (2) The contracting officer may modify the clause to restrict the 
acquisition to products or services from Iraq, or to restrict the 
acquisition to products or services from Afghanistan, by removing ``or 
Afghanistan'' or ``Iraq or'', respectively, wherever the phrase appears 
in the clause.
    (d) When the Trade Agreements Act applies to the acquisition, use 
the appropriate clause and provision as prescribed at 225.1101(6) and 
(7).
    (e) Do not use any of the following provisions or clauses in 
solicitations or contracts that include the provision at

[[Page 53155]]

252.225-7023, the clause at 252.225-7024, or the clause at 252.225-
7026:
    (1) 252.225-7000, Buy American Act--Balance of Payments Program 
Certificate.
    (2) 252.225-7001, Buy American Act and Balance of Payments Program.
    (3) 252.225-7002, Qualifying Country Sources as Subcontractors.
    (4) 252.225-7020, Trade Agreements Certificate.
    (5) 252.225-7035, Buy American Act--Free Trade Agreements--Balance 
of Payments Program Certificate.
    (6) 252.225-7036, Buy American Act--Free Trade Agreements--Balance 
of Payments Program.
    (7) 252.225-7044, Balance of Payments Program--Construction 
Material.
    (8) 252.225-7045, Balance of Payments Program--Construction 
Material Under Trade Agreements.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
8. Section 252.225-7021 is amended by adding Alternate I to read as 
follows:


252.225-7021  Trade Agreements.

* * * * *

Alternate I (SEP 2008)

    As prescribed in 225.1101(6)(ii), add the following paragraph 
(a)(14) to the basic clause and substitute the following paragraph 
(c) for paragraph (c) of the basic clause:
    (a)(14) Iraqi end product means an article that--
    (i) Is wholly the growth, product, or manufacture of Iraq; or
    (ii) In the case of an article that consists in whole or in part 
of materials from another country, has been substantially 
transformed in Iraq into a new and different article of commerce 
with a name, character, or use distinct from that of the article or 
articles from which it was transformed. The term refers to a product 
offered for purchase under a supply contract, but for purposes of 
calculating the value of the end product includes services (except 
transportation services) incidental to its supply, provided that the 
value of those incidental services does not exceed the value of the 
product itself.
    (c) The Contractor shall deliver under this contract only U.S.-
made, qualifying country, Iraqi, or designated country end products 
unless--
    (1) In its offer, the Contractor specified delivery of other 
nondesignated country end products in the Trade Agreements 
Certificate provision of the solicitation; and
    (2)(i) Offers of U.S.-made, qualifying country, Iraqi, or 
designated country end products from responsive, responsible 
offerors are either not received or are insufficient to fill the 
Government's requirements; or
    (ii) A national interest waiver has been granted.

0
9. Sections 252.225-7022 through 252.225-7024 are added to read as 
follows:


252.225-7022  Trade Agreements Certificate--Inclusion of Iraqi End 
Products.

    As prescribed in 225.1101(7), use the following provision:

TRADE AGREEMENTS CERTIFICATE--INCLUSION OF IRAQI END PRODUCTS (SEP 
2008)

    (a) Definitions. Designated country end product, Iraqi end 
product, nondesignated country end product, qualifying country end 
product, and U.S.-made end product have the meanings given in the 
Trade Agreements clause of this solicitation.
    (b) Evaluation. The Government--
    (1) Will evaluate offers in accordance with the policies and 
procedures of Part 225 of the Defense Federal Acquisition Regulation 
Supplement; and
    (2) Will consider only offers of end products that are U.S.-
made, qualifying country, Iraqi, or designated country end products 
unless--
    (i) There are no offers of such end products;
    (ii) The offers of such end products are insufficient to fulfill 
the Government's requirements; or
    (iii) A national interest waiver has been granted.
    (c) Certification and identification of country of origin.
    (1) For all line items subject to the Trade Agreements clause of 
this solicitation, the offeror certifies that each end product to be 
delivered under a contract resulting from this solicitation, except 
those listed in paragraph (c)(2) of this provision, is a U.S.-made, 
qualifying country, Iraqi, or designated country end product.
    (2) The following supplies are other nondesignated country end 
products:
    (Country of Origin)
    (Line Item Number)

    (End of provision)


252.225-7023  Preference for Products or Services from Iraq or 
Afghanistan.

    As prescribed in 225.7703-5(a), use the following provision:

PREFERENCE FOR PRODUCTS OR SERVICES FROM IRAQ OR AFGHANISTAN (SEP 2008)

    (a) Definitions. Product from Iraq or Afghanistan and service 
from Iraq or Afghanistan, as used in this provision, are defined in 
the clause of this solicitation entitled ``Requirement for Products 
or Services from Iraq or Afghanistan'' (DFARS 252.225-7024).
    (b) Representation. The offeror represents that all products or 
services to be delivered under a contract resulting from this 
solicitation are products from Iraq or Afghanistan or services from 
Iraq or Afghanistan, except those listed in--
    (1) Paragraph (c) of this provision; or
    (2) Paragraph (c)(2) of the provision entitled ``Trade 
Agreements Certificate--Inclusion of Iraqi End Products,'' if 
included in this solicitation.
    (c) Other products or services. The following offered products 
or services are not products from Iraq or Afghanistan or services 
from Iraq or Afghanistan:
    (Country of Origin)
    (Line Item Number)
    (d) Evaluation. For the purpose of evaluating competitive 
offers, the Contracting Officer will increase by 50 percent the 
prices of offers of products or services that are not products or 
services from Iraq or Afghanistan.

    (End of provision)


252.225-7024  Requirement for Products or Services from Iraq or 
Afghanistan.

    As prescribed in 225.7703-5(b), use the following clause:

REQUIREMENT FOR PRODUCTS OR SERVICES FROM IRAQ OR AFGHANISTAN (SEP 
2008)

    (a) Definitions. As used in this clause--
    (1) Product from Iraq or Afghanistan means a product that is 
mined, produced, or manufactured in Iraq or Afghanistan.
    (2) Service from Iraq or Afghanistan means a service that is 
performed in Iraq or Afghanistan predominantly by citizens or 
permanent resident aliens of Iraq or Afghanistan.
    (b) The Contractor shall provide only products from Iraq or 
Afghanistan or services from Iraq or Afghanistan under this 
contract, unless, in its offer, it specified that it would provide 
products or services other than products from Iraq or Afghanistan or 
services from Iraq or Afghanistan.

    (End of clause)

0
10. Section 252.225-7026 is added to read as follows:


252.225-7026  Acquisition Restricted to Products or Services from Iraq 
or Afghanistan.

    As prescribed in 225.7703-5(c), use the following clause:

ACQUISITION RESTRICTED TO PRODUCTS OR SERVICES FROM IRAQ OR AFGHANISTAN 
(SEP 2008)

    (a) Definitions. As used in this clause--
    (1) Product from Iraq or Afghanistan means a product that is 
mined, produced, or manufactured in Iraq or Afghanistan.
    (2) Service from Iraq or Afghanistan means a service that is 
performed in Iraq or Afghanistan predominantly by citizens or 
permanent resident aliens of Iraq or Afghanistan.
    (b) The Contractor shall provide only products from Iraq or 
Afghanistan or services from Iraq or Afghanistan under this 
contract.

    (End of clause)


252.225-7032  [Amended]

0
11. Section 252.225-7032 is amended in the introductory text by 
removing ``225.1101(7)'' and adding in its place ``225.1101(8)''.

[[Page 53156]]

252.225-7033  [Amended]

0
12. Section 252.225-7033 is amended in the introductory text by 
removing ``225.1101(8)'' and adding in its place ``225.1101(9)''.


252.225-7035  [Amended]

0
13. Section 252.225-7035 is amended in the introductory text and in 
Alternate I by removing ``225.1101(9)'' and adding in its place 
``225.1101(10)''.


252.225-7036  [Amended]

0
14. Section 252.225-7036 is amended in the introductory text and in 
Alternate I by removing ``225.1101(10)'' and adding in its place 
``225.1101(11)''.

[FR Doc. E8-21376 Filed 9-12-08; 8:45 am]

BILLING CODE 5001-08-P