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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 ">252.225-7044</ph> Balance of Payments Program—Construction Material.</title>
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<p class="- topic/p ">Basic. As prescribed in
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<xref outputclass="fm:ParaNumOnly"
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class="- topic/xref "
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base="DFARS-225.7503"
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href="225.7503.dita#DFARS_225.7503">225.7503</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/" 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) " ditaarch:DITAArchVersion="1.3">
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<concept id="DFARS_252.225-7044" ditaarch:DITAArchVersion="1.3" class="- topic/topic concept/concept ">
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<title class="- topic/title "><ph props="autonumber" class="- topic/ph ">252.225-7044</ph> Balance of Payments Program—Construction Material.</title>
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<conbody class="- topic/body concept/conbody ">
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<p class="- topic/p ">Basic. As prescribed in
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<xref outputclass="fm:ParaNumOnly" class="- topic/xref " base="DFARS-225.7503" href="225.7503.dita#DFARS_225.7503">225.7503</xref>
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(a) and (a)(1), use the following clause:</p>
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<p class="- topic/p " outputclass="Ctr_SmCaps">BALANCE OF
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PAYMENTS PROGRAM—CONSTRUCTION MATERIAL—BASIC (JAN 2023)</p>
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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 ">Definitions. </i>As used in this clause—</p>
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<p class="- topic/p ">“Commercially available off-the-shelf (COTS) item”—</p>
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<ol>
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<p outputclass="List2" class="- topic/p ">
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(1) Means
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any item of supply (including construction material) that is—</p>
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<p outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(i)</ph> A commercial product (as defined in paragraph (1) of the definition of “commercial product” in section 2.101 of the Federal Acquisition Regulation);</p>
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<p outputclass="List3" class="- topic/p ">
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(ii)
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Sold in substantial quantities in the commercial marketplace; and</p>
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<p outputclass="List3" class="- topic/p ">
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(iii)
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Offered to the Government, under a contract or subcontract at any tier, without
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modification, in the same form in which it is sold in the commercial marketplace;
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and</p>
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<p outputclass="List2" class="- topic/p ">
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(2) Does not
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include bulk cargo, as defined in 46 U.S.C. 40102(4), such as agricultural products and
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petroleum products.</p>
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<p class="- topic/p ">“Component” means any article, material, or supply incorporated directly into construction material.</p>
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<p class="- topic/p ">“Construction material” means an article, material, or supply brought to the construction site by the Contractor or a subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material.</p>
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<p class="- topic/p ">“Cost of components” means—</p>
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<p outputclass="List2" class="- topic/p ">
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(1) For
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components purchased by the Contractor, the acquisition cost, including transportation
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costs to the place of incorporation into the end product (whether or not such costs are
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paid to a domestic firm), and any applicable duty (whether or not a duty-free entry
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certificate is issued); or</p>
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<p outputclass="List2" class="- topic/p ">
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(2) For
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components manufactured by the Contractor, all costs associated with the manufacture of
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the component, including transportation costs as described in paragraph (1) of this
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definition, plus allocable overhead costs, but excluding profit. Cost of components does
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not include any costs associated with the manufacture of the construction material.</p>
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<p class="- topic/p ">“Domestic construction material” means—</p>
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<p outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(1)</ph> For construction material that does
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not consist wholly or predominantly of iron or steel or a combination of both—</p>
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<p outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(i)</ph> An unmanufactured construction material mined or produced in the United States; or</p>
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<p outputclass="List3" class="- topic/p "><ph props="autonumber" class="-topic/ph">(ii)</ph> A construction material manufactured in the United States, if—</p>
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<p outputclass="List4" class="- topic/p "><ph props="autonumber" class="-topic/ph">(A)</ph> The cost of its components mined, produced,
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or manufactured in the United States exceeds 55
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percent of the cost of all its components. Components of foreign origin of the
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same class or kind for which nonavailability determinations have been made are treated
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as domestic. Components of unknown origin are treated as
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foreign; or</p>
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<p outputclass="List4" class="- topic/p "><ph props="autonumber" class="-topic/ph">(B)</ph> The construction material is a COTS item; or
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<p outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(2)</ph> For construction material that
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consists wholly or predominantly of iron or steel or a combination of both, a
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construction material manufactured in the United States if the cost of iron and steel
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not produced in the United States (excluding fasteners) as estimated in good faith by
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unknown origin are treated as foreign. If the construction material contains multiple
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components, the cost of all the materials used in such construction material is
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calculated in accordance with the definition of “cost of components” in this clause.</p>
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<p class="- topic/p ">“Predominantly of iron or steel or a combination of both”
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means that the cost of the iron and steel content exceeds 50 percent of the total cost
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of all its components. The cost of iron and steel is the cost of the iron or steel mill
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products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings
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utilized in the manufacture of the product and a good faith estimate of the cost of iron
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or steel components excluding COTS fasteners. </p>
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<p class="- topic/p ">“Steel” means an alloy that includes at least 50 percent
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iron, between 0.02 and 2 percent carbon, and may include other elements. </p>
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<p class="- topic/p ">“United States” means the 50 States, the District of Columbia, and outlying areas.</p>
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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 ">Domestic preference. </i>This clause implements the Balance of Payments Program by providing a preference for domestic construction material. The Contractor shall use only domestic construction material in performing this contract, except for—</p>
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<p outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(1)</ph> Construction material valued at or below the simplified acquisition threshold in part 2 of the Federal Acquisition Regulation; </p>
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<p outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(2)</ph> Information technology that is a commercial product; or</p>
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<p outputclass="List2" class="- topic/p "><ph props="autonumber" class="-topic/ph">(3)</ph> The construction material or components listed by the Government as follows:</p>
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<p class="- topic/p ">___________________________________________________________________________</p>
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<p class="- topic/p ">[Contracting Officer to list applicable excepted materials or indicate “none”]</p>
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<p outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
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<section outputclass="Alternate" class="- topic/section ">
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<p class="- topic/p "><i class="+ topic/ph hi-d/i ">Alternate I</i>. As prescribed in
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<xref outputclass="fm:ParaNumOnly" class="- topic/xref " base="DFARS-225.7503" href="225.7503.dita#DFARS_225.7503">225.7503</xref>
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(a) and (a)(2), use the following clause, which adds definitions for “South Caucasus/Central and South Asian (SC/CASA) state” and “SC/CASA state construction material” to paragraph (a), and uses “domestic construction material or SC/CASA state construction material” instead of “domestic construction material” in the second sentence of paragraph (b):</p>
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<p class="- topic/p " outputclass="Ctr_SmCaps">BALANCE OF PAYMENTS PROGRAM—CONSTRUCTION MATERIAL—ALTERNATE I (JAN 2023)</p>
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<p outputclass="List1" class="- topic/p ">(a) <i class="+ topic/ph hi-d/i ">Definitions. </i>As used in this clause—</p>
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<p class="- topic/p ">“Commercially available off-the-shelf (COTS) item”—</p>
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<p outputclass="List2" class="- topic/p ">
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(1) Means
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any item of supply (including construction material) that is—</p>
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<p outputclass="List3" class="- topic/p "> (i) A commercial product (as defined in paragraph (1) of the definition of “commercial product” in section 2.101 of the Federal Acquisition Regulation);</p>
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<p outputclass="List3" class="- topic/p ">
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(ii) Sold
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in substantial quantities in the commercial marketplace; and </p>
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<p outputclass="List3" class="- topic/p ">
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(iii)
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Offered to the Government, under a contract or subcontract at any tier, without
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modification, in the same form in which it is sold in the commercial marketplace;
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and</p>
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<p outputclass="List2" class="- topic/p ">
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(2) Does
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not include bulk cargo, as defined in 46 U.S.C. 40102(4), such as agricultural
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products and petroleum products.</p>
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<p class="- topic/p ">“Component” means any article, material, or supply incorporated directly into construction material.</p>
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<p class="- topic/p ">“Construction material” means an article, material, or supply brought to the construction site by the Contractor or a subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material.</p>
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<p class="- topic/p ">“Cost of components” means—</p>
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<p outputclass="List2" class="- topic/p ">
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(1) For
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components purchased by the Contractor, the acquisition cost, including
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transportation costs to the place of incorporation into the end product (whether or
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not such costs are paid to a domestic firm), and any applicable duty (whether or not
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a duty-free entry certificate is issued); or</p>
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<p outputclass="List2" class="- topic/p ">
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(2) For
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components manufactured by the Contractor, all costs associated with the manufacture
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of the component, including transportation costs as described in paragraph (1) of
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this definition, plus allocable overhead costs, but excluding profit. Cost of
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components does not include any costs associated with the manufacture of the
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construction material.</p>
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<p class="- topic/p ">“Domestic construction material” means—</p>
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<p outputclass="List2" class="- topic/p ">(1) For construction material that
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does not consist wholly or predominantly of iron or steel or a combination of
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both—</p>
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<p outputclass="List3" class="- topic/p ">(i) An unmanufactured construction material mined or produced in the United States; or</p>
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<p outputclass="List3" class="- topic/p ">(ii) A construction material manufactured in the United States, if—</p>
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<p outputclass="List4" class="- topic/p ">(A) The cost of its components mined,
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produced, or manufactured in the United States exceeds 50 percent of the cost of all
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its components. Components of foreign origin of the same class or kind for which
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nonavailability determinations have been made are treated as domestic. Components of unknown origin are treated as
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foreign or</p>
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<p outputclass="List4" class="- topic/p ">(B) The construction material is a COTS item;
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or
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</p>
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<p outputclass="List2" class="- topic/p ">(2) For construction material that
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consists wholly or predominantly of iron or steel or a combination of both, a
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construction material manufactured in the United States if the cost of iron and steel
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not produced in the United States (excluding fasteners) as estimated in good faith by
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construction material contains multiple components, the cost of all the materials
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used in such construction material is calculated in accordance with the definition of
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“cost of components” in this clause. </p>
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|
+
<p outputclass="List1" class="- topic/p ">“Predominantly of iron or steel or a
|
|
175
219
|
combination of both” means that the cost of the iron and steel content exceeds 50
|
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176
220
|
percent of the total cost of all its components. The cost of iron and steel is the
|
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177
221
|
cost of the iron or steel mill products (such as bar, billet, slab, wire, plate, or
|
|
178
222
|
sheet), castings, or forgings utilized in the manufacture of the product and a good
|
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179
223
|
faith estimate of the cost of iron or steel components excluding COTS fasteners. </p>
|
|
180
|
-
|
|
181
|
-
|
|
182
|
-
|
|
224
|
+
<p class="- topic/p ">“South Caucasus/Central and South Asian (SC/CASA) state” means Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkmenistan, or Uzbekistan.</p>
|
|
225
|
+
<p class="- topic/p ">“SC/CASA state construction material” means construction material that—</p>
|
|
226
|
+
<p outputclass="List2" class="- topic/p ">
|
|
183
227
|
(1) Is
|
|
184
228
|
wholly the growth, product, or manufacture of an SC/CASA state; or</p>
|
|
185
|
-
|
|
229
|
+
<p outputclass="List2" class="- topic/p ">
|
|
186
230
|
(2) In
|
|
187
231
|
the case of a construction material that consists in whole or in part of materials
|
|
188
232
|
from another country, has been substantially transformed in an SC/CASA state into a
|
|
189
233
|
new and different construction material distinct from the material from which it was
|
|
190
234
|
transformed.</p>
|
|
191
|
-
|
|
235
|
+
<p class="- topic/p ">“Steel” means an alloy that includes at least 50 percent
|
|
192
236
|
iron, between 0.02 and 2 percent carbon, and may include other elements.</p>
|
|
193
|
-
|
|
194
|
-
|
|
195
|
-
|
|
196
|
-
|
|
197
|
-
|
|
198
|
-
|
|
199
|
-
|
|
200
|
-
|
|
201
|
-
|
|
202
|
-
|
|
203
|
-
|
|
204
|
-
|
|
205
|
-
|
|
237
|
+
<p class="- topic/p ">“United States” means the 50 States, the District of Columbia, and outlying areas.</p>
|
|
238
|
+
<p outputclass="List1" class="- topic/p ">(b) <i class="+ topic/ph hi-d/i ">Domestic preference. </i>This clause implements the Balance of Payments Program by providing a preference for domestic construction material. The Contractor shall use only domestic construction material or SC/CASA state construction material in performing this contract, except for—</p>
|
|
239
|
+
<p outputclass="List2" class="- topic/p ">(1) Construction material valued at or below the simplified acquisition threshold in part 2 of the Federal Acquisition Regulation; </p>
|
|
240
|
+
<p outputclass="List2" class="- topic/p ">(2) Information technology that is a commercial product; or</p>
|
|
241
|
+
<p outputclass="List2" class="- topic/p ">(3) The construction material or components listed by the Government as follows:</p>
|
|
242
|
+
<p class="- topic/p ">____________________________________________________________________________</p>
|
|
243
|
+
<p class="- topic/p ">
|
|
244
|
+
<i class="+ topic/ph hi-d/i ">[Contracting Officer to list applicable excepted materials or indicate “none”].</i>
|
|
245
|
+
</p>
|
|
246
|
+
<p outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
|
|
247
|
+
</section>
|
|
248
|
+
</conbody>
|
|
249
|
+
</concept>
|
|
206
250
|
</dita>
|