(b) Information on specific agreements is available as follows:
(i) Memoranda of understanding and other international agreements between the United States and the countries listed in 225.872-1 are maintained in the Office of the Director of Defense Procurement and Acquisition Policy (Program Acquisition and International Contracting) ((703) 697-9351, DSN 227-9351).
(ii) Military Assistance Advisory Groups, Naval Missions, and Joint U.S. Military Aid Groups normally have copies of the agreements applicable to the countries concerned.
(iii) Copies of
international agreements covering the United Kingdom of Great Britain and
Northern Ireland, Western European countries,
Agreements with countries in the Pacific and
225.802-70 Contracts for performance outside the
(a) When a contracting
office anticipates placement of a contract for performance outside the
(b) If the acquisition requires the performance of work in the foreign country by U.S. personnel or a third country contractor, or if the acquisition requires logistics support for contract employees, source inspection, or additional Government employees—
(1) The contracting officer shall coordinate with the CAO before contract award;
(2) The contracting officer shall request the following information from the CAO:
(i) The applicability of any international agreements to the acquisition.
(ii) Security requirements applicable to the area.
(iii) The standards of conduct for the prospective contractor and its employees and any consequences for violation of the standards of conduct.
(iv) Requirements for use of foreign
currencies, including applicability of
(v) Availability of logistical support for contractor employees.
(vi) Information on taxes and duties from which the Government may be exempt; and
(3) The contracting officer shall furnish the following information to the CAO:
(i) A synopsis of the work to be performed and, if practical, a copy of the solicitation.
contractor logistical support desired in support of
(iii) Contract performance period and estimated contract value.
(iv) Number and nationality of contractor employees and date of planned arrival of contractor personnel.
(v) Contract security requirements.
(vi) Other pertinent information to effect complete coordination and cooperation.
225.802-71 End use certificates.
Contracting officers considering the purchase of an item from a foreign source may encounter a request for the signing of a certificate to indicate that the Armed Forces of the United States is the end user of the item, and that the U.S. Government will not transfer the item to third parties without authorization from the Government of the country selling the item. When encountering this situation, refer to DoD Directive 2040.3, End Use Certificates, for guidance.
225.870 Contracting with Canadian contractors.
(a) The Canadian Government guarantees to the U.S. Government all commitments, obligations, and covenants of the Canadian Commercial Corporation under any contract or order issued to the Corporation by any contracting office of the U.S. Government. The Canadian Government has waived notice of any change or modification that may be made, from time to time, in these commitments, obligations, or covenants.
(b) For production
(c) The Canadian
Commercial Corporation will award and administer contracts with contractors
(1) Negotiated acquisitions for experimental, developmental, or research work under projects other than the Defense Development Sharing Program;
(2) Acquisitions of unusual or compelling urgency;
(3) Acquisitions at or below the simplified acquisition threshold; or
made by DoD activities located in
(d) The Canadian
Commercial Corporation uses provisions in contracts with Canadian or
(e) The Government of
(1) Contract administration services, including—
(i) Cost and price analysis;
(ii) Industrial security;
(iii) Accountability and disposal of Government property;
(iv) Production expediting;
(v) Compliance with Canadian labor laws;
(vi) Processing of termination claims and disposal of termination inventory;
(vii) Customs documentation;
(viii) Processing of disputes and appeals; and
(ix) Such other related contract administration functions as may be required with respect to the Canadian Commercial Corporation contract with the Canadian supplier.
(2) Audits. The Public Works and Government Services Canada performs audits when needed. Route requests for audit on non-Canadian Commercial Corporation contracts through the cognizant contract management office of the Defense Contract Management Agency.
The Department of National Defence (
225.870-2 Solicitation of Canadian contractors.
(a) Except for acquisitions described in 225.870-1(c)(1) through (4), include Canadian firms on solicitation mailing lists and comparable source lists only at the request of the Canadian Commercial Corporation.
(b) Include Canadian planned producers under the Industrial Preparedness Production Planning Program on solicitation mailing lists for their planned items (see FAR 14.205-1).
(c) Send solicitations
directly to Canadian firms appearing on the appropriate solicitation mailing
lists. Send a complete copy of the
solicitation and a listing of Canadian firms solicited to the Canadian
Commercial Corporation, 11th Floor,
(d) If requested, furnish a solicitation to the Canadian Commercial Corporation even if no Canadian firm is solicited.
(e) Handle acquisitions at or below the simplified acquisition threshold directly with Canadian firms and not through the Canadian Commercial Corporation.
225.870-3 Submission of offers.
(a) As indicated in 225.870-4, the Canadian Commercial Corporation is the prime contractor. To indicate acceptance of offers by individual Canadian companies, the Canadian Commercial Corporation issues a letter supporting the Canadian offer and containing the following information:
(1) Name of the Canadian offeror.
(2) Confirmation and endorsement of the offer in the name of the Canadian Commercial Corporation.
(3) A statement that the Corporation shall subcontract 100 percent with the offeror.
(b) When a Canadian offer cannot be processed through the Canadian Commercial Corporation in time to meet the date for receipt of offers, the Corporation may permit Canadian firms to submit offers directly. However, the contracting officer shall receive the Canadian Commercial Corporation's endorsement before contract award.
(c) The Canadian
Commercial Corporation will submit all sealed bids in terms of
(d) Except for sealed
bids, the Canadian Commercial Corporation normally will submit offers and
quotations in terms of Canadian currency.
The Corporation may, at the time of submitting an offer, elect to quote
and receive payment in terms of
(1) Shall provide
for payment in
(2) Shall not be adjusted for losses or gains from fluctuation in exchange rates.
225.870-4 Contracting procedures.
(a) Except for contracts described in 225.870-1(c)(1) through (4), award individual contracts covering purchases from suppliers located in Canada to the Canadian Commercial Corporation, 11th Floor, 50 O'Connor Street, Ottawa, Ontario, Canada, K1A-0S6.
(b) Direct communication with the Canadian supplier is authorized and encouraged in connection with all technical aspects of the contract, provided the Corporation's approval is obtained on any matters involving changes to the contract.
(c) Identify in the
contract, the type of currency, i.e.,
(1) Quote the contract price in terms of Canadian dollars and identify the amount by the initials “CN”, e.g., $1,647.23CN; and
(2) Clearly indicate on the face of the contract the U.S./Canadian conversion rate at the time of award and the U.S. dollar equivalent of the Canadian dollar contract amount.
225.870-5 Contract administration.
(a) Assign contract administration in accordance with Part 242. When the Defense Contract Management Agency will perform contract administration in Canada, name in the contract the following payment office for disbursement of DoD funds (DoD Department Code: 17-Navy; 21-Army; 57-Air Force; 97-all other DoD components), whether payment is in Canadian or U.S. dollars:
DFAS-CO/North Entitlement Operations
(b) The following procedures apply to cost-reimbursement type contracts:
(1) The Public Works and Government Services Canada (PWGSC) automatically arranges audits on contracts with the Canadian Commercial Corporation.
(i) Consulting and Audit Canada (CAC) furnishes audit reports to PWGSC.
(ii) Upon advice from PWGSC, the Canadian Commercial Corporation certifies the invoice and forwards it with Standard Form (SF) 1034, Public Voucher, to the administrative contracting officer for further processing and transmittal to the disbursing office.
contracts placed directly with Canadian firms, the administrative contracting
officer requests audits from the CAC,
(i) Approves invoices on a provisional basis pending completion of the contract and final audit;
(ii) Forwards these invoices, accompanied by SF 1034, Public Voucher, to the administrative contracting officer for further processing and transmittal to the disbursing officer; and
(iii) Furnishes periodic advisory audit reports directly to the administrative contracting officer.
225.870-6 Termination procedures.
(a) The Canadian
Commercial Corporation will continue administering contracts that the
(b) The Corporation will settle all Canadian subcontracts in accordance with the policies, practices, and procedures of the Canadian Government.
225.870-7 Acceptance of Canadian supplies.
(a) For contracts placed
(b) Signature by the
Department of National Defence (
225.870-8 Industrial security.
Industrial security for
225.871 North Atlantic Treaty Organization cooperative projects.
(a) Implements 22 U.S.C. 2767 and 10 U.S.C. 2350b; and
(b) Provides guidance on awarding contracts for North Atlantic Treaty Organization (NATO) cooperative projects.
As used in this section--
(a) “Cooperative project” means a jointly managed arrangement—
(1) Described in a written agreement between the parties;
(2) Undertaken to further the objectives of standardization, rationalization, and interoperability of the armed forces of NATO member countries; and
(3) Providing for—
(i) One or more of the other participants to share with the United States the cost of research and development, testing, evaluation, or joint production (including follow-on support) of certain defense articles;
Concurrent production in the
Acquisition by the
(b) “Other participant”
means a cooperative project participant other than the
(a) Cooperative project authority.
(1) Departments and agencies, that have authority to do so, may enter into cooperative project agreements with NATO or with one or more member countries of NATO under DoDD 5530.3, International Agreements.
(2) Under laws and regulations governing the negotiation and implementation of cooperative project agreements, departments and agencies may enter into contracts, or incur other obligations, on behalf of other participants without charge to any appropriation or contract authorization.
(3) Agency heads are authorized to solicit and award contracts to implement cooperative projects.
(b) Contracts implementing cooperative projects shall comply with all applicable laws relating to Government acquisition, unless a waiver is granted under 225.871-4. A waiver of certain laws and regulations may be obtained if the waiver—
(1) Is required by the terms of a written cooperative project agreement;
(2) Will significantly further NATO standardization, rationalization, and interoperability; and
(3) Is approved by the appropriate DoD official.
225.871-4 Statutory waivers.
(a) For contracts or
subcontracts placed outside the
(1) Procedures for the formation of contracts;
(2) Terms and conditions for inclusion in contracts;
(3) Requirements or preferences for—
(i) Goods grown, produced, or manufactured in the
to be performed in the
(4) Requirements regulating the performance of contracts.
(b) There is no authority for waiver of—
(1) Any provision of the Arms Export Control Act (22 U.S.C. 2751);
(2) Any provision of 10 U.S.C. 2304;
(3) The cargo
preference laws of the
(4) Any of the financial management responsibilities administered by the Secretary of the Treasury.
(c) Forward any request for waiver under a cooperative project to the Deputy Secretary of Defense, through the Director of Defense Procurement and Acquisition Policy, Office of the Under Secretary of Defense (Acquisition, Technology, and Logistics). The waiver request shall include a draft Determination and Findings for signature by the Deputy Secretary of Defense establishing that the waiver is necessary to significantly further NATO standardization, rationalization, and interoperability.
(d) Obtain the approval of the Deputy Secretary of Defense before committing to make a waiver in an agreement or a contract.
225.871-5 Directed subcontracting.
(a) The Director of Defense Procurement and Acquisition Policy may authorize the direct placement of subcontracts with particular subcontractors. Directed subcontracting is not authorized unless specifically addressed in the cooperative project agreement.
(b) In some instances, it may not be feasible to name specific subcontractors at the time the agreement is concluded. However, the agreement shall clearly state the general provisions for work sharing at the prime and subcontract level.
(c) The agreement is the authority for a contractual provision requiring the contractor to place certain subcontracts with particular subcontractors. No separate justification and approval during the acquisition process is required.
225.871-6 Disposal of property.
Dispose of property that is jointly acquired by the members of a cooperative project under the procedures established in the agreement or in a manner consistent with the terms of the agreement.
225.871-7 Congressional notification.
(a) Congressional notification is required when DoD makes a determination to award a contract or subcontract to a particular entity, if the determination was not part of the certification made under 22 U.S.C. 2767(f) before finalizing the cooperative agreement.
(1) Departments and agencies shall provide a proposed Congressional notice to the Director of Defense Procurement and Acquisition Policy in sufficient time to forward to Congress before the time of contract award.
(2) The proposed notice shall include the reason it is necessary to use the authority to designate a particular contractor or subcontractor.
(b) Congressional notification is also required each time a statutory waiver under 225.871-4 is incorporated in a contract or a contract modification, if such information was not provided in the certification to Congress before finalizing the cooperative agreement.
225.872 Contracting with qualifying country sources.
(a) As a result of memoranda of understanding and other international agreements, DoD has determined it inconsistent with the public interest to apply restrictions of the Buy American Act or the Balance of Payments Program to the acquisition of qualifying country end products from the following qualifying countries:
United Kingdom of Great Britain and Northern Ireland
(b) Individual acquisitions of qualifying country end products from the following qualifying countries may, on a purchase-by-purchase basis (see 225.872-4), be exempted from application of the Buy American Act and the Balance of Payments Program as inconsistent with the public interest:
(c) The determination in paragraph (a) of this subsection does not limit the authority of the Secretary concerned to restrict acquisitions to domestic sources or reject an otherwise acceptable offer from a qualifying country source when considered necessary for national defense reasons.
(a) This section applies to all acquisitions of supplies except those restricted by—
(i) Review individual solicitations to determine whether this restriction applies.
(ii) Information concerning restricted items may be obtained from the Deputy Under Secretary of Defense (Industrial Affairs);
(b) This section does not apply to construction contracts.
225.872-3 Solicitation procedures.
(a) Include qualifying country sources on solicitation mailing lists upon their request (see FAR 14.205).
(b) Except for items developed under the U.S./Canadian Development Sharing Program, use the criteria for soliciting and awarding contracts to small business concerns under FAR Part 19 without regard to whether there are potential qualifying country sources for the end product. Do not consider an offer of a qualifying country end product if the solicitation is identified for the exclusive participation of small business concerns.
(c) Send solicitations directly to qualifying country sources. Solicit Canadian sources through the Canadian Commercial Corporation in accordance with 225.870.
(d) Use international
air mail if solicitation destinations are outside the
(e) If unusual technical or security requirements preclude the acquisition of otherwise acceptable defense equipment from qualifying country sources, review the need for such requirements. Do not impose unusual technical or security requirements solely for the purpose of precluding the acquisition of defense equipment from qualifying countries.
(f) Do not automatically exclude qualifying country sources from submitting offers because their supplies have not been tested and evaluated by the department or agency.
(1) Consider the adequacy of qualifying country service testing on a case-by-case basis. Departments or agencies that must limit solicitations to sources whose items have been tested and evaluated by the department or agency shall consider supplies from qualifying country sources that have been tested and accepted by the qualifying country for service use.
(2) The department or agency may perform a confirmatory test, if necessary.
(4) If it appears that these provisions might adversely delay service programs, obtain the concurrence of the Under Secretary of Defense (Acquisition, Technology, and Logistics), before excluding the qualifying country source from consideration.
(g) Permit industry
representatives from a qualifying country to attend symposia, program
briefings, prebid conferences (see FAR 14.207 and
15.201(c)), and similar meetings that address
225.872-4 Individual determinations.
(a) If the offer of an end product from a qualifying country source listed in 225.872-1(b), as evaluated, is low or otherwise eligible for award, prepare a determination and findings exempting the acquisition from the Buy American Act and the Balance of Payments Program as inconsistent with the public interest, unless another exception such as the Trade Agreements Act applies.
(b) Obtain signature of the determination and findings—
(1) At a level above the contracting officer, for acquisitions valued at or below the simplified acquisition threshold; or
(2) By the chief of the contracting office, for acquisitions with a value greater than the simplified acquisition threshold.
(c) Prepare the determination and findings substantially as follows:
SERVICE OR AGENCY
Exemption of the Buy American Act and Balance of Payments Program
Determination and Findings
Upon the basis of the following findings and determination which I hereby make in accordance with the provisions of FAR 25.103(a), the acquisition of a qualifying country end product may be made as follows:
The (contracting office) proposes to purchase under contract number ________________, (describe item) mined, produced, or manufactured in (qualifying country of origin). The total estimated cost of this acquisition is ____________________.
The United States Government and the Government of _____________ have agreed to remove barriers to procurement at the prime and subcontract level for defense equipment produced in each other's countries insofar as laws and regulations permit.
The agreement provides that the Department of
Defense will evaluate competitive offers of qualifying country end products
mined, produced, or manufactured in (qualifying
country) without imposing any price differential under the Buy
American Act or the Balance of Payments Program and without taking applicable
U.S. customs and duties into consideration so that such items may better compete
for sales of defense equipment to the Department of Defense. In addition, the Agreement stipulates that
acquisitions of such items shall fully satisfy Department of Defense requirements
for performance, quality, and delivery and shall cost the Department of
Defense no more than would comparable
To achieve the foregoing objectives, the solicitation contained the clause (title and number of the Buy American Act clause contained in the contract). Offers were solicited from other sources and the offer received from (offeror) is found to be otherwise eligible for award.
I hereby determine that it is inconsistent with the public interest to apply the restrictions of the Buy American Act or the Balance of Payments Program to the offer described in this determination and findings.
225.872-5 Contract administration.
(a) Arrangements exist with some qualifying countries to provide reciprocal contract administration services. Some arrangements are at no cost to either government. To determine whether such an arrangement has been negotiated and what contract administration functions are covered, contact the Deputy Director of Defense Procurement and Acquisition Policy (Program Acquisition and International Contracting), ((703) 697-9351, DSN 227-9351).
(b) When contract
administration services are required on contracts to be performed in qualifying
countries, direct the request to the cognizant
activity listed in the Federal Directory of Contract Administration
Services. The cognizant activity also
will arrange contract administration services for DoD
subcontracts that qualifying country sources place in the
(c) The contract administration activity receiving a delegation shall determine whether any portions of the delegation are covered by memoranda of understanding annexes and, if so, shall delegate those functions to the appropriate organization in the qualifying country's government.
(d) Information on quality assurance delegations to foreign governments is in Subpart 246.4, Government Contract Quality Assurance.
(a) Memoranda of understanding with some qualifying countries contain annexes that provide for reciprocal “no-cost” audits of contracts and subcontracts (pre- and post-award).
(b) To determine if such an annex is applicable to a particular qualifying country, contact the Deputy Director of Defense Procurement and Acquisition Policy (Program Acquisition and International Contracting), ((703) 697-9351, DSN 227-9351).
(c) Handle requests for audits in qualifying countries in accordance with 215.404-2(c).
(1) Except for
(2) Send an advance copy of the request to the focal point identified by the Deputy Director of Defense Procurement and Acquisition Policy (Program Acquisition and International Contracting).
225.872-7 Industrial security for qualifying countries.
The required procedures for safeguarding classified defense information necessary for the performance of contracts awarded to qualifying country sources are in the DoD Industrial Security Regulation DoD 5220.22-R (implemented for the Army by AR 380-49; for the Navy by SECNAV Instruction 5510.1H; for the Air Force by AFI 31-601; for the Defense Information Systems Agency by DCA Instruction 240-110-8; and for the National Imagery and Mapping Agency by NIMA Instruction 5220.22).
225.872-8 Subcontracting with qualifying country sources.
In reviewing contractor
subcontracting procedures, the contracting officer shall ensure that the
contract does not preclude qualifying country sources from competing for
subcontracts, except when restricted by national security interest reasons,
mobilization base considerations, or applicable
and the Government of the United Kingdom (U.K.) have agreed to waive
(a) The Government of
(1) Name of the
(2) Prime contract number;
(3) Description of item for which waiver is being sought;
(4) Quantity being acquired; and
(5) Amount of levy.
(b) Waiver may occur after contract award. If levies are waived before contract award, evaluate the offer without the levy. If levies are identified but not waived before contract award, evaluate the offer inclusive of the levies.