FAR part 25 Deck 2 (Foreign Acquisition) Flashcards

(127 cards)

1
Q

What authority does the Trade Agreements Act provide?

A

The authority for the President to waive the Buy American statute for eligible products from countries with international trade agreements

The President has delegated this authority to the U.S. Trade Representative.

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2
Q

Who determines the origin of services under the Trade Agreements Act?

A

The country in which the firm providing the services is established

See subpart 25.5 for evaluation procedures.

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3
Q

What is the WTO GPA threshold for supply contracts?

A

$174,000

This threshold is subject to revision approximately every 2 years.

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4
Q

What is the threshold for service contracts under the Bahrain FTA?

A

$174,000

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5
Q

What must be treated as eligible products under the WTO GPA?

A

Least developed country end products, construction material, and services

This applies to acquisitions covered by the WTO GPA.

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6
Q

What is the purchase restriction under the Trade Agreements Act?

A

Acquire only U.S.-made or designated country products unless offers are insufficient

This does not apply below the WTO GPA threshold.

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7
Q

What is the estimated value calculation for lease contracts over 12 months?

A

Total estimated value plus estimated residual value

This applies to fixed-term contracts of more than 12 months.

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8
Q

What happens if no offers of U.S.-made or designated country end products are received?

A

Award on the low offer

This is applicable under WTO GPA conditions.

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9
Q

Which countries are covered under the Agreement on Trade in Civil Aircraft?

A

Countries include Albania, Canada, France, Germany, Japan, United Kingdom, and others

These countries have met the substantial transformation test.

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10
Q

What must contracting officers comply with when the WTO GPA or an FTA applies?

A

Requirements for publicizing and response time, preparation and transmittal of synopses

See 5.203 and 5.207 for specific requirements.

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11
Q

What should contracting officers not do in solicitations under the WTO GPA?

A

Not include technical requirements solely to preclude the acquisition of eligible products

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12
Q

What is the threshold for acquisitions under the Israeli Trade Act?

A

$50,000

This threshold applies unless it exceeds the WTO GPA threshold.

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13
Q

Under what conditions must offers of Israeli end products be evaluated?

A

Without regard to the restrictions of the Buy American statute

This applies to most agencies except certain specified departments.

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14
Q

For acquisitions covered by the WTO GPA, how must Caribbean Basin country products be treated?

A

Must be treated as eligible products

This is under the Caribbean Basin Trade Initiative.

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15
Q

How should contracting officers rank offers when evaluating foreign offers?

A

Rank the remaining offers by price

This applies after eliminating unacceptable offers.

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16
Q

What happens when there is a tie between a domestic offer and a foreign offer?

A

Award on the domestic offer

This applies when evaluation factors result in a tie.

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17
Q

What does the contracting officer rely on when evaluating a foreign offer?

A

The offeror’s certification of end product origin

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18
Q

What must be done if a solicitation specifies that award can only be made on a group of line items?

A

Reject the offer if any part consists of prohibited end products

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19
Q

What is the evaluation factor application process for foreign offers?

A

Evaluate offers on a line item basis and apply evaluation factors as specified

See 25.502 for details.

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20
Q

What is the procedure if the proposed price of domestic end products exceeds 50 percent of the group?

A

Evaluate the entire group as a domestic offer

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21
Q

What must be included in the estimated value for lease contracts?

A

The value of all options

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22
Q

True or False: The Israeli Trade Act prohibits the purchase of other foreign end products.

A

False

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23
Q

Fill in the blank: The _______ has determined that Caribbean Basin country end products must be treated as eligible products.

A

United States Trade Representative

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24
Q

What should be determined if no trade agreement applies to a solicitation?

A

Evaluate the category of end products (domestic or foreign) on the basis of each line item.

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25
If the proposed price of domestic end products exceeds 50 percent of the total proposed price of the group, how should the group be evaluated?
Evaluate the entire group as a domestic offer.
26
What should be done if the evaluated price of the low offer remains less than the lowest domestic offer?
Treat as a domestic offer any group where the proposed price of end products with a domestic content of at least 55 percent exceeds 50 percent of the total proposed price of the group.
27
In the evaluation procedures, what does the Buy American statute apply to?
Acquisitions for end products for use in the United States set aside for small business concerns.
28
What is the evaluated price of Offer C in Example 1 if it has 50 percent domestic content?
Offer C is evaluated as a foreign end product.
29
What factor is applied to Offer C in Example 1 after determining its status?
A 30 percent factor is applied.
30
What is the significance of the acquisition value being less than $50,000?
None of the trade agreements apply.
31
What happens if no domestic offer is received in Example 2?
Make a nonavailability determination and award on the noneligible offer.
32
What is the evaluation factor for a foreign offer if there is no eligible offer lower than the domestic offer?
Apply the evaluation factor to the low foreign offer.
33
What should be determined in the group award basis analysis?
Determine which offers are domestic and eligible.
34
In Example 1 of the group award basis, what is the tentative award pattern based on?
The lowest evaluated cost for each line item.
35
What is the evaluated price of Offer C for Item 1 after applying a factor?
$60,000.
36
What happens if Offer C specifies an all-or-none award?
Award the combination of Offers A and B.
37
What is the total evaluated price of Offer C in the group award example if the factor is applied?
$108,960.
38
What is the conclusion if the low offer is a foreign offer?
Apply the evaluation factor to the low offer.
39
In the analysis for a group award, what percentage of domestic content must be exceeded for an offer to be treated as domestic?
55 percent.
40
What does 'DO' stand for in the context of offers?
Domestic end product.
41
What does 'EL' stand for in the context of offers?
Eligible product.
42
What does 'NEL' stand for in the context of offers?
Noneligible product.
43
What should be done with offers that do not comply with domestic content requirements?
Evaluate them as foreign end products.
44
What are the steps in evaluating offers according to the procedures in 25.502?
* Determine domestic status * Apply evaluation factors * Award on the lowest evaluated offer.
45
In the context of the Buy American statute, what is the rule for acquisitions above a certain value?
Trade agreements apply if the acquisition value exceeds $50,000.
46
If Offer A is a domestic end product and Offer B is an eligible product, which should be awarded if B is lower?
Award on Offer B.
47
What happens in Example 3 if the low offer is a foreign offer?
Apply the evaluation factor to the low offer.
48
What is the evaluated price of Offer C after applying the evaluation factor?
$46,560 ## Footnote This is calculated as $38,800 + 20 percent.
49
What percentage of domestic content does Offer B have?
100% is domestic or can be treated as domestic ## Footnote This includes 19.8% domestic and 80.2% that can be treated as domestic.
50
What is the definition of domestic construction material?
An unmanufactured construction material mined or produced in the United States or a manufactured construction material that is manufactured in the United States ## Footnote Applies to iron or steel produced in the United States.
51
What is a foreign construction material?
A construction material other than a domestic construction material.
52
Define manufactured construction material.
Any construction material that is not unmanufactured construction material.
53
What constitutes a public building or public work?
A building or work carried out by a Federal agency to serve the public interest ## Footnote Includes bridges, highways, airports, etc.
54
What is the scope of Subpart 25.6?
Implements section 1605 of the Recovery Act regarding manufactured and unmanufactured construction material.
55
What does section 25.602-1 state about the use of funds from the Recovery Act?
Funds cannot be used for projects unless all iron, steel, and manufactured goods are produced or manufactured in the United States.
56
What are the exceptions to the restrictions of the Recovery Act?
Nonavailability, unreasonable cost, inconsistent with public interest.
57
What must be done if a contractor requests a determination after contract award?
The contractor must explain why the request could not be made before the award.
58
What are the evaluation factors for foreign construction materials?
25 percent for foreign manufactured and 20 percent for foreign unmanufactured construction materials.
59
What must contracting officers do if they find unauthorized use of foreign construction materials?
Review allegations, notify the contractor, and consider corrective actions.
60
Fill in the blank: The Recovery Act designated country includes _______.
[a World Trade Organization Government Procurement Agreement country, a Free Trade Agreement country, or a least developed country]
61
What is the definition of unmanufactured construction material?
Raw material not processed into a specific form or combined with other materials.
62
What is the requirement for iron or steel components in manufactured construction materials?
Must be produced in the United States.
63
What happens if two or more offers are equal in price?
Preference is given to an offer that does not include foreign construction material based on unreasonable cost.
64
What is a contractor required to do if they incorporate foreign construction materials without authorization?
Propose corrective actions and may need to remove unauthorized materials.
65
True or False: All components of a construction material must be produced in the United States.
False ## Footnote Only the iron or steel components must be produced in the U.S. if they are predominant.
66
What does section 1605 of the Recovery Act pertain to?
Inapplicability concerning foreign construction material
67
What may contracting officers require regarding unauthorized foreign construction material?
Removal and replacement
68
Under what circumstances may foreign construction material not be removed and replaced?
If impracticable, causes undue delay, or is detrimental to Government interests
69
Does a determination to retain foreign construction material imply an exception to section 1605 of the Recovery Act?
No, it must be explicitly stated in the determination
70
Can the Government suspend or debar a contractor for violating section 1605 of the Recovery Act?
Yes
71
What should be done if noncompliance is serious?
Consider contractual remedies, such as terminating the contract for default
72
What is the purpose of subpart 25.7?
Implement economic sanctions administered by the Office of Foreign Assets Control (OFAC)
73
What does the Sudan Accountability and Divestment Act of 2007 prohibit?
Transactions involving certain countries, entities, and individuals
74
What must agencies and contractors not acquire without authorization by OFAC?
Supplies or services if prohibited by OFAC regulations
75
Which countries are most transactions prohibited with under OFAC regulations?
Cuba, Iran, and Sudan
76
What are 'restricted business operations' as defined in the context of Sudan?
Business operations that include power production, mineral extraction, oil-related activities, or military equipment production
77
What must an offeror certify under subsection 25.702-2?
That it does not conduct restricted business operations in Sudan
78
What remedies are available for false certification under subsection 25.702-2?
Terminate the contract, suspend or debar the contractor
79
Who may waive the requirement of subsection 25.702-2?
The President
80
What is considered 'sensitive technology'?
Technology used to restrict information flow or speech in Iran
81
What does section 5 of the Iran Sanctions Act relate to?
Activities in the energy sector and development of military capabilities by Iran
82
What actions may be taken upon a false certification under subsection 25.703-2?
Terminate contract, suspend, or debar the contractor
83
What is required from an offeror regarding sensitive technology under section 25.703-3?
To represent that it does not export sensitive technology to Iran
84
What information must be included in waiver requests under section 25.703-4?
Agency name, offeror's name, description of product or service, and justification for the waiver
85
What is the purpose of consultation with the National Security Council when requesting a waiver?
To assess foreign policy aspects of the waiver request
86
What is the time frame for OFPP to report to Congress on waivers granted?
Semiannually on April 15th and October 15th
87
Under what conditions may a waiver be requested?
When the class of supplies or equipment is not available from any other source and it is in the national interest.
88
Who must review and clear the waiver request before submission?
The agency head.
89
What information must all waiver requests include?
* Agency name and address * Offeror's name and address * Description/nature of product or service * Total cost and length of the contract * Justification with market research * Documentation regarding offeror's past performance * Information regarding relationships with firms involved in sensitive technology * Description of sensitive technology and activities.
90
True or False: Waiver requests must justify why the product or service must be procured from the specific offeror.
True.
91
What should be provided if the offeror exports sensitive technology to Iran?
Rationale why it is in the national interest for the President to waive the prohibition on contracting with this offeror.
92
Fill in the blank: Documentation regarding the offeror's _______ and integrity is required.
past performance.
93
What must contracting officers determine when placing contracts outside the United States?
* Existence and applicability of international agreements * Compliance with these agreements.
94
What publication contains many international agreements?
United States Treaties and Other International Agreements series.
95
What must contracting officers do when awarding contracts with Taiwanese firms?
Award all contracts through the American Institute of Taiwan (AIT).
96
What is the policy regarding exemptions from import duties for Government contracts?
Agencies must use exemptions when savings to appropriated funds outweigh administrative costs.
97
What must agencies do if they do not obtain an exemption for imported supplies?
Shipments are subject to usual Customs entry and examination requirements.
98
What does 25.903 list?
Supplies for which exemptions from duty may be obtained under a Government contract.
99
What is required for certain supplies exempted from duty?
The contracting agency must certify the purpose stated in the Harmonized Tariff Schedule.
100
What must the contracting officer ensure regarding foreign currency in contracts?
Adequate funds must be available to cover currency fluctuations.
101
What does the clause at 52.215-2, Audit and Records-Negotiation, implement?
10 U.S.C. 3841 and 41 U.S.C. 4706.
102
What must the determination and findings identify?
* Contract and its purpose * Contractor status (foreign or domestic) * Efforts to include the basic clause.
103
What is the Buy American clause at 52.225-1 used for?
Insert in solicitations and contracts with a value exceeding the micro-purchase threshold.
104
What is the value threshold for including the Buy American-Free Trade Agreements clause?
$50,000 or more but less than $174,000.
105
What must be done if the acquisition value is $100,000 or more but less than $102,280?
Use the clause with its Alternate III.
106
What does the clause at 52.225-8 address?
Duty-Free Entry for supplies that may be imported into the United States.
107
Fill in the blank: The contracting officer must use the current market _______ for currency conversion.
exchange rate.
108
True or False: The contracting officer may permit offers in currencies other than specified if unusual circumstances arise.
True.
109
What clause should be inserted for duty-free entry in solicitations and contracts for supplies imported into the United States?
Insert the clause at 52.225-8, Duty-Free Entry.
110
When should the clause at 52.225-8 be used?
When the value of the acquisition exceeds the simplified acquisition threshold or when the savings from waiving the duty are anticipated to be more than the administrative cost of waiving the duty.
111
What is the clause number for the Place of Manufacture provision?
Insert the provision at 52.225-18.
112
In what type of solicitations should the Place of Manufacture provision be inserted?
In solicitations predominantly for the acquisition of manufactured end products.
113
What clause should be inserted in solicitations for construction valued at less than $6,708,000?
Insert the clause at 52.225-9, Buy American-Construction Materials.
114
What must be listed in paragraph (b)(2) of the Buy American-Construction Materials clause?
List all foreign construction material excepted from the requirements of the Buy American statute.
115
What is the domestic content threshold for contracts awarded in calendar year 2022 or 2023?
Insert 60 in paragraph (1)(ii)(A) of the definition of domestic construction material.
116
What is the clause number for the Notice of Buy American Requirement-Construction Materials?
Insert the provision at 52.225-10.
117
What is the value threshold for using the clause at 52.225-11, Buy American-Construction Materials under Trade Agreements?
For construction valued at $6,708,000 or more.
118
What should be included in paragraph (b)(3) of the Buy American-Construction Materials under Trade Agreements clause?
List all foreign construction material excepted from the requirements of the Buy American statute.
119
What is the domestic content threshold for contracts awarded after calendar year 2028?
Insert 75.
120
What clause should be used for acquisitions valued at $6,708,000 or more, but less than $13,296,489?
Use the clause with its Alternate I.
121
What provision should be inserted in solicitations containing the clause at 52.225-11?
Insert the provision at 52.225-12, Notice of Buy American Requirement-Construction Materials under Trade Agreements.
122
What must be used when using funds appropriated under the Recovery Act for construction?
Use provisions and clauses 52.225-21, 52.225-22, 52.225-23, or 52.225-24.
123
What clause should be inserted for restrictions on certain foreign purchases?
Insert the clause at 52.225-13, Restrictions on Certain Foreign Purchases.
124
What clause should be included if anticipating translation into another language?
Insert the clause at 52.225-14, Inconsistency Between English Version and Translation of Contract.
125
What provision should be inserted for solicitations that permit the use of other than a specified currency?
Insert the provision at 52.225-17, Evaluation of Foreign Currency Offers.
126
What provision must be included in each solicitation for the acquisition of other than commercial products?
Include the provision at 52.225-20, Prohibition on Conducting Restricted Business Operations in Sudan Certification.
127
What provision must be included in all solicitations regarding Iran?
Include the provision at 52.225-25, Prohibition on Contracting with Entities Engaging in Certain Activities or Transactions Relating to Iran-Representation and Certifications.