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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: November 12, 2002

SUBJECT: National Aeronautics and Space Administration Federal Acquisition Regulation (FAR) Supplement (NFS); Trade Agreements Act -- Exception for U.S.-Made End Products

SOURCE: Federal Register, November 12, 2002, Vol. 67, No. 218, page 68551

AGENCIES: National Aeronautics and Space Administration (NASA)

ACTION: Proposed Rule

SYNOPSIS: NASA is proposing to amend NFS Part 1825, Foreign Acquisition, to implement the determination of Assistant Administrator for Procurement Tom Luedtke that, for procurements subject to the Trade Agreements Act (TAA), it would be inconsistent with the public interest to apply the Buy American Act (BAA) for U.S.-made end products that are substantially transformed in the United States.

EDITOR'S NOTE: For more on the BAA, see Federal Acquisition Regulation (FAR) Subpart 25.1, Buy American Act - Supplies, FAR Subpart 25.2, Buy American Act - Construction Materials, and the corresponding NFS Subparts 1825.1 and 1825.2.

The TAA applies to acquisitions for supplies or services if the estimated value of the acquisition is $169,000, and to construction if the estimated value of the acquisition is $6,481,000. For more on the TAA, see FAR Subpart 25.4, Trade Agreements, and the corresponding NFS Subpart 1825.4.

DATES: Comments should be submitted on or before January 13, 2003.

ADDRESSES: Comments should be submitted to Patrick Flynn, NASA Headquarters, Office of Procurement, Contract Management Division (Code HK), Washington, DC 20546; or by e-mail to: pflynn@hq.nasa.gov.

FOR FURTHER INFORMATION CONTACT: Patrick Flynn, 202-358-0460; e-mail: pflynn@hq.nasa.gov.

SUPPLEMENTAL INFORMATION: On September 13, 2002, the Assistant Administrator for Procurement determined that, for procurements subject to the Trade Agreements Act, it would be inconsistent with the public interest to apply the Buy American Act to U.S.-made end products that are substantially transformed in the United States. The September 13, 2002, determination is consistent with paragraph (b)(2) of FAR 25.502, Application, which permits agencies to give the same consideration to offers of U.S.-made end products that are not domestic end products as given to eligible offers (for definitions of "domestic end products," "eligible offers," "U.S.-made end products," and other key terms applicable to the BAA and TAA, see FAR 25.003, Definitions). The determination is also consistent with the proposed change in Department of Defense policy regarding the treatment of U.S.-made end products (see the July 30, 2002, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Trade Agreements Act -- Exception for U.S.-Made End Products").

This proposed rule would implement the September 13, 2002, determination by simplifying the evaluation of offers in acquisitions subject to the TAA because it will no longer be necessary to determine if a U.S.-made end product is also a domestic end product (that the cost of domestic components exceeds the cost of all components by more than 50%). It would make the following changes to NFS Part 1825:

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2002 by Panoptic Enterprises. All Rights Reserved.

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