FAR Part 25 Deck 1 Flashcards
Foreign Acquisitions (112 cards)
1
Q
What is the scope of Part 25?
A
Policies and procedures for acquisition of foreign supplies, services, and construction materials, and contracts performed outside the United States.
2
Q
What does 41 U.S.C. chapter 83, Buy American, restrict?
A
Purchase of supplies that are not domestic end products for use within the United States.
3
Q
Under what conditions can a foreign end product be purchased?
A
If the contracting officer determines the price of the lowest domestic offer is unreasonable or if another exception applies.
4
Q
What is required for construction contracts in the U.S. according to the Buy American statute?
A
Use of only domestic construction materials, with some exceptions.
5
Q
Which acquisitions are not subject to Buy American statute restrictions?
A
Acquisitions subject to certain trade agreements.
6
Q
What is the test to determine the country of origin under the Buy American statute?
A
A two-part test: manufactured in the U.S. and a domestic content test.
7
Q
What test do trade agreements use to determine country of origin?
A
Substantial transformation.
8
Q
What defines a ‘domestic manufactured construction material’ under the American Recovery and Reinvestment Act?
A
Manufactured in the United States, without regard to the origin of components, except for iron or steel produced in the U.S.
9
Q
What does Subpart 25.1 cover?
A
Buy American-Supplies.
10
Q
What does Subpart 25.2 cover?
A
Buy American-Construction Materials.
11
Q
What is the focus of Subpart 25.3?
A
Contracts performed outside the United States.
12
Q
What is defined as a ‘Caribbean Basin country’?
A
Countries such as Antigua and Barbuda, Aruba, Bahamas, Barbados, and others.
13
Q
What constitutes a ‘Caribbean Basin country end product’?
A
An article that is wholly the growth, product, or manufacture of a Caribbean Basin country or substantially transformed there.
14
Q
What are the categories of civil aircraft and related articles?
A
Aircraft, engines, parts and components, and ground flight simulators.
15
Q
What is a ‘component’?
A
An article, material, or supply incorporated directly into an end product or construction material.
16
Q
Define ‘construction material’.
A
An article, material, or supply brought to the construction site for incorporation into the building or work.
17
Q
What does ‘cost of components’ include?
A
- Acquisition cost
- Transportation costs
- Applicable duty
18
Q
What is a ‘critical component’?
A
A component deemed critical to the U.S. supply chain, mined, produced, or manufactured in the U.S.
19
Q
What is a ‘critical item’?
A
A domestic construction material or domestic end product deemed critical to the U.S. supply chain.
20
Q
What defines a ‘designated country’?
A
Any World Trade Organization Government Procurement Agreement (WTO GPA) country.
21
Q
True or False: The Buy American statute applies to all acquisitions.
A
False
22
Q
Fill in the blank: The _____ provides comprehensive procedures for offer evaluation.
A
Subpart 25.5
23
Q
What is the significance of Subpart 25.4?
A
It addresses trade agreements and their exceptions.
24
Q
What does Subpart 25.7 focus on?
A
Prohibited Sources.
25
What is the role of Subpart 25.11?
Solicitation Provisions and Contract Clauses.
26
What is a Free Trade Agreement (FTA) country?
Countries such as Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore
## Footnote
These countries are part of trade agreements that promote free trade between them.
27
List at least three examples of least developed countries.
* Afghanistan
* Bangladesh
* Ethiopia
## Footnote
A least developed country is defined by specific economic and social criteria.
28
What is a designated country end product?
A WTO GPA country end product, an FTA country end product, a least developed country end product, or a Caribbean Basin country end product
## Footnote
This classification affects procurement and trade agreements.
29
Define 'Domestic construction material'.
Construction material that is mined or produced in the United States or manufactured in the United States, meeting specific cost thresholds
## Footnote
Includes unmanufactured materials and those with significant U.S. components.
30
What are the cost requirements for a construction material to be considered domestic?
The cost of components mined, produced, or manufactured in the U.S. must exceed 60% of the total cost, with specific thresholds for future years
## Footnote
Different percentages apply based on delivery years.
31
What is a domestic end product?
An end product that is mined, produced, or manufactured in the U.S. or substantially transformed in the U.S. into a new article of commerce
## Footnote
There are specific cost criteria that must be met for classification.
32
What constitutes a foreign end product?
Any end product other than a domestic end product
## Footnote
This includes products that do not meet the domestic criteria.
33
True or False: A domestic offer is an offer of a domestic end product.
True
## Footnote
This is crucial for procurement processes.
34
What is the definition of 'foreign construction material'?
A construction material other than a domestic construction material
## Footnote
This impacts procurement regulations.
35
What is the significance of the Buy American statute?
It restricts the purchase of supplies that are not domestic end products
## Footnote
This statute is part of U.S. procurement policy.
36
What is the threshold for foreign iron and steel in an end product to qualify as domestic?
Less than 5% of the cost of all components used
## Footnote
This includes various forms of iron and steel.
37
What is meant by 'eligible product'?
A foreign end product, construction material, or service not subject to discriminatory treatment due to trade agreements
## Footnote
This allows for fair competition in acquisitions.
38
Fill in the blank: A _______ is a hardware device that mechanically joins or affixes two or more objects together.
fastener
## Footnote
Examples include nuts, bolts, and screws.
39
List three countries considered as WTO GPA countries.
* Australia
* Canada
* Japan
## Footnote
These countries are part of the World Trade Organization's Government Procurement Agreement.
40
What is the definition of 'U.S.-made end product'?
An article that is mined, produced, or manufactured in the U.S. or substantially transformed in the U.S. into a new article
## Footnote
This definition is important for compliance with U.S. procurement laws.
41
What does 'predominantly of iron or steel' mean?
The cost of iron and steel content exceeds 50% of the total cost of all components
## Footnote
This affects classification in procurement.
42
True or False: A noneligible product is a foreign end product that is not an eligible product.
True
## Footnote
Understanding this classification is important for procurement eligibility.
43
What is the definition of 'Israeli end product'?
An article that is wholly the growth, product, or manufacture of Israel or substantially transformed in Israel
## Footnote
This classification impacts trade agreements and procurement.
44
What does the Buy American statute apply to?
Small business set-asides
45
What defines a U.S.-made end product for a small business concern?
A manufactured product of a small business concern
46
What is required for a product to be considered a domestic end product?
It must meet the domestic content test in paragraph (a)(2)
47
What exceptions allow the purchase of a foreign end product?
Listed at 25.103
48
True or False: The unreasonable cost exception provides a preference for one foreign offer over another.
False
49
What must a contract comply with if its period of performance spans domestic content threshold increases?
Each increased threshold for the items in the year of delivery
50
Who can allow for the application of an alternate domestic content test for a contract?
The senior procurement executive of the contracting agency
51
What must the senior procurement executive consult before allowing an alternate domestic content test?
The Office of Management and Budget's Made in America Office
52
What is the general policy regarding the acquisition of products for public use inside the United States?
Acquire only domestic end products
53
What is one condition under which the Buy American statute does not apply?
Public interest determination by the head of the agency
54
What is the nonavailability exception under the Buy American statute?
Applies if articles, materials, or supplies are not available in sufficient quantities and satisfactory quality in the U.S.
55
Fill in the blank: A nonavailability determination indicates that domestic sources can meet _______ percent or less of total demand.
50
56
What must a procuring agency do before acquiring an article on the nonavailability list?
Conduct market research appropriate to the circumstances
57
What must be included in the solicitation if a domestic article is available?
The appropriate Buy American statute provision and clause
58
Under what condition is a written determination not required for nonavailability?
If full and open competition was conducted and no domestic offers were received
59
What is the unreasonable cost exception?
The contracting officer may determine that the cost of a domestic end product would be unreasonable
60
What type of foreign end products can be purchased specifically for commissary resale?
Foreign end products
61
What restriction does not apply to the acquisition of information technology that is a commercial product?
The restriction on purchasing foreign end products
62
What is the purpose of the list published in the Federal Register regarding nonavailable articles?
To allow public comment no less frequently than once every five years
63
What is the preference factor for critical components or critical items?
Determined and published in the Federal Register
64
What must the contracting officer use to determine the reasonableness of cost for domestic end products?
Evaluation factors in paragraphs (b) and (c)
65
What is the evaluation factor for a domestic offer from a large business concern?
20 percent
66
What is the evaluation factor for a domestic offer from a small business concern?
30 percent
67
What must the contracting officer do if the low offer is for a foreign end product exceeding 55 percent domestic content?
Treat it as a domestic offer
68
What is the effective date when certain procedures will no longer apply?
January 1, 2030
69
What does Subpart 25.2 implement?
41 U.S.C. chapter 83, Buy American
70
What is the Executive Order related to the Buy American statute that was issued on December 17, 1954?
Executive Order 10582
71
What is the Buy American statute?
A law that restricts the purchase of construction materials that are not domestic construction materials.
72
What is Executive Order 14005?
An executive order issued on January 25, 2021, related to the Buy American statute.
73
What does the domestic content test of the Buy American statute require for manufactured construction materials?
The article must be manufactured in the United States and the cost of domestic components must exceed 60 percent of the total components.
74
What are the domestic content thresholds for items delivered in calendar years 2024 through 2028?
65 percent.
75
What is the domestic content threshold for items delivered starting in calendar year 2029?
75 percent.
76
Fill in the blank: The cost of foreign iron and steel must constitute less than _______ of the cost of all components used in construction material.
5 percent.
77
What does the term COTS stand for?
Commercially Available Off-The-Shelf.
78
What is the exception for the domestic content test for COTS items?
The domestic content test has been waived for acquisitions of COTS items.
79
In what situations can foreign construction materials be acquired without regard to the Buy American statute?
When impracticable or inconsistent with public interest, nonavailability, unreasonable cost, or for information technology that is a commercial product.
80
What must the contracting officer do when a determination is made for exceptions to the Buy American statute?
List the excepted materials in the contract and make findings available for public inspection.
81
What is required for preaward determinations regarding the Buy American statute?
An offeror may request a determination from the contracting officer concerning the inapplicability for specific construction materials.
82
True or False: The contracting officer is required to evaluate requests for determination regarding the Buy American statute before awarding contracts.
True.
83
What happens if a contractor requests a determination regarding the Buy American statute after contract award?
The contractor must explain why the request was not made before and the contracting officer may deny the request.
84
What should be done if a contractor uses foreign construction material without authorization?
Notify the contractor, request a reply, and take appropriate action, including potential removal and replacement.
85
What is the scope of 25.301?
It applies to contracts requiring contractor personnel to perform outside the United States in designated operational areas or supporting diplomatic missions.
86
What is a designated operational area?
An area during contingency operations, humanitarian or peacekeeping operations, or military exercises designated by the combatant commander.
87
Who provides logistical and security support for contractors in designated operational areas?
Generally, contractors are responsible, but the agency may provide support if required for essential contractor services.
88
What must be specified in the contract regarding government support?
The exact support to be provided and whether it is on a reimbursable basis.
89
What is required for contractors to carry weapons in operational areas?
The contracting officer must follow agency procedures and the weapons policy established by the combatant commander or chief of mission.
90
What must the contracting officer specify in the contract regarding support?
The exact support to be provided and whether this support is provided on a reimbursable basis.
## Footnote
This includes citing the authority for the reimbursement.
91
What policy must be followed regarding contractors carrying weapons?
Agency procedures and the weapons policy established by the combatant commander or chief of mission.
## Footnote
Refer to paragraph (i) of clause 52.225-19.
92
In what situations should clause 52.225-19 be inserted in contracts?
When contractor personnel will perform outside the United States in:
* Designated operational areas during contingency operations
* Humanitarian or peacekeeping operations
* Other military operations or exercises designated by the combatant commander
* Supporting a diplomatic or consular mission designated as a danger pay post.
## Footnote
Also applicable when determined appropriate by the contracting officer.
93
What defines 'area of combat operations'?
An area designated by the Secretary of Defense requiring enhanced coordination of contractors performing private security functions.
## Footnote
This is part of the policy for contractors performing private security functions.
94
What activities are classified as 'private security functions'?
* Guarding of personnel, facilities, designated sites, or property
* Any activity requiring personnel to carry weapons per contract terms.
95
What is the applicability of section 25.302?
It applies to contracts requiring performance outside the U.S. in:
* Areas of combat operations designated by the Secretary of Defense
* Areas of other significant military operations, upon agreement of the Secretary of Defense and Secretary of State.
96
What are the contractor responsibilities in private security functions?
* Ensure employees comply with relevant orders and directives
* Keep appropriate personnel records
* Account for weapons
* Register and identify military vehicles
* Report specified incidents.
## Footnote
These responsibilities are outlined in 32 CFR part 159.
97
What remedies are available for non-compliance with private security function requirements?
* Direct removal and replacement of non-compliant personnel
* Inclusion of failures in past performance databases
* Consideration of failures in evaluation of award fees.
98
What is the scope of subpart 25.4 regarding trade agreements?
It provides policies and procedures applicable to acquisitions covered by various trade agreements including:
* WTO GPA
* USMCA
* Chile FTA
* Singapore FTA
* Australia FTA
* Morocco FTA
* CAFTA-DR
* Bahrain FTA
* Oman FTA
* Peru FTA
* Korea FTA
* Colombia FTA
* Panama FTA.
99
Which acquisitions are exempt from the trade agreements subpart?
* Acquisitions set aside for small businesses
* Acquisitions of arms, ammunition, or war materials
* Acquisitions for resale
* Acquisitions from Federal Prison Industries
* Other non-competitive acquisitions authorized under specific subparts.
100
True or False: The clause at 52.225-26 is required for contracts entered into by elements of the intelligence community.
False.
## Footnote
The clause is not required for intelligence activities.
101
Fill in the blank: The least developed country designation is made by the _______.
U.S. Trade Representative.
102
What services are excluded from coverage by the U.S. schedule of the WTO GPA?
* All services purchased in support of military services overseas
* ADP telecommunications and transmission services
* Dredging services
* Operation and management contracts of certain government facilities.
103
What services are excluded from information services as defined in 47 U.S.C.153(24)?
Facsimile services and private leased circuit services
## Footnote
Information services do not include these specified services.
104
What type of contracts are associated with dredging?
Operation and management contracts of certain Government or privately owned facilities used for Government purposes
## Footnote
Includes facilities like Federally Funded Research and Development Centers.
105
Which departments operate facilities that are included in the dredging category?
Department of Defense, Department of Energy, National Aeronautics and Space Administration
## Footnote
This includes all Government-owned research and development facilities or environmental laboratories.
106
What does the research and development category entail?
Research and development services
## Footnote
Focuses on innovation and technological advancement.
107
What types of services are included under transportation services?
Launching services, excluding travel agent services
## Footnote
Transportation services facilitate the movement of goods and people.
108
What services fall under utility services?
Utility services related to essential services like water, electricity, and gas
## Footnote
These are critical for public infrastructure.
109
What is included in maintenance, repair, modification, rebuilding, and installation of equipment?
Equipment related to ships (J019)
## Footnote
Essential for ensuring operational readiness of maritime assets.
110
What type of repair is classified as nonnuclear ship repair?
Nonnuclear ship repair (J998)
## Footnote
Focuses on the maintenance of non-nuclear vessels.
111
Are acquisitions of the services listed at (2)(iii) covered under the WTO GPA?
No, they are a subset of the excluded services at (2)(i) and (ii)
## Footnote
This means they do not fall under the General Agreement on Trade in Services.
112
Are acquisitions of the services listed at (4)(ii) covered under the WTO GPA?
No, they are a subset of the excluded services at (4)(i)
## Footnote
Indicates specific exclusions in the context of government procurement.
