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<?xml version="1.0" encoding="UTF-8"?>
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<!DOCTYPE dita
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class="- topic/topic concept/concept ">
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<title class="- topic/title ">
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<ph props="autonumber" class="- topic/ph ">252.215-7014</ph> Exception from Certified Cost or Pricing Data Requirements for Foreign Military Sales Indirect Offsets.</title>
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<conbody outputclass="clause" class="- topic/body concept/conbody ">
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<p class="- topic/p ">As prescribed in
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<xref outputclass="fm:ParaNumOnly"
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href="215.408.dita#DFARS_215.408"
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base="DFARS-215.408"
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class="- topic/xref ">215.408</xref>
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<!DOCTYPE dita PUBLIC "-//OASIS//DTD DITA Composite//EN" "ditabase.dtd">
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<dita xmlns:ditaarch="http://dita.oasis-open.org/architecture/2005/" ditaarch:DITAArchVersion="1.2" domains="(topic task) (topic concept) (topic concept glossentry) (topic concept glossgroup) (topic reference) (topic troubleshooting++task) (topic task) (topic abbrev-d) a(props deliveryTarget) (topic equation-d) (topic hazard-d) (topic hi-d) (topic indexing-d) (topic markup-d) (topic mathml-d) (topic pr-d) (topic relmgmt-d) (topic sw-d) (topic svg-d) (topic ui-d) (topic ut-d) (topic markup-d xml-d) (topic task strictTaskbody-c) ">
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<concept id="DFARS_252.215-7014" ditaarch:DITAArchVersion="1.2" class="- topic/topic concept/concept ">
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<title class="- topic/title "><ph props="autonumber" class="- topic/ph ">252.215-7014</ph> Exception from Certified Cost or Pricing Data Requirements for Foreign Military Sales Indirect Offsets.</title>
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<conbody outputclass="clause" class="- topic/body concept/conbody ">
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<p class="- topic/p ">As prescribed in
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<xref outputclass="fm:ParaNumOnly" href="215.408.dita#DFARS_215.408" base="DFARS-215.408" class="- topic/xref ">215.408</xref>
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(8), use the following clause:</p>
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<p outputclass="Ctr_SmCaps" class="- topic/p ">EXCEPTION FROM CERTIFIED COST OR PRICING DATA REQUIREMENTS FOR FOREIGN MILITARY SALES INDIRECT OFFSETS (JUN 2018)</p>
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<info li_elems="0"/>
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<ol>
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<li>
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<p outputclass="List1" class="- topic/p "><ph props="autonumber" class="-topic/ph">(a)</ph><i class="+ topic/ph hi-d/i ">Definition</i>. As used in this clause—</p>
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<p class="- topic/p ">“Offset” means a benefit or obligation agreed to by a contractor and a foreign government or international organization as an inducement or condition to purchase supplies or services pursuant to a foreign military sale (FMS). There are two types of offsets: direct offsets and indirect offsets.</p>
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<info li_elems="0"/>
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<ol>
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<li>
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<p outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(1)</ph> A direct offset involves benefits or obligations, including supplies or services that are directly related to the item being purchased and are integral to the deliverable of the FMS contract. For example, as a condition of a foreign military sale, the contractor may require or agree to permit the customer to produce in its country certain components or subsystems of the item being sold. Generally, direct offsets must be performed within a specified period, because they are integral to the deliverable of the FMS contract.</p>
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</li>
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<li>
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<p outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(2)</ph> An indirect offset involves benefits or obligations, including supplies or services that are not directly related to the specific item(s) being purchased and are not integral to the deliverable of the FMS contract. For example, as a condition of a foreign military sale, the contractor may agree to purchase certain manufactured products, agricultural commodities, raw materials, or services, or make an equity investment or grant of equipment required by the FMS customer, or may agree to build a school, road or other facility. Indirect offsets would also include projects that are related to the FMS contract but not purchased under said contract (e.g., a project to develop or advance a capability, technology transfer, or know-how in a foreign company). Indirect offsets may be accomplished without a clearly defined period of performance.</p>
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<info li_elems="2"/>
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</li>
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</ol>
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<li>
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<p outputclass="List1" class="- topic/p "><ph props="autonumber" class="-topic/ph">(b)</ph><i class="+ topic/ph hi-d/i ">Exceptions from certified cost or pricing data requirements</i>. Notwithstanding the requirements of Federal Acquisition Regulation (FAR) 52.215-20, Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data, in the case of this contract or a subcontract, and FAR 52.215-21, Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data—Modifications, in the case of modification of this contract or a subcontract, submission of certified cost or pricing data shall not be required to the extent such data relates to an indirect offset (10 U.S.C. 3703(a)(4)).</p>
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</li>
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</ol>
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<p outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
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</conbody>
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</concept>
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</dita>
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