FedGovContracts.com

Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: March 12, 2003

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, March 12, 2003, Vol. 68, No. 48, page 11747

AGENCIES: National Aeronautics and Space Administration (NASA)

ACTION: Proposed Rule

SYNOPSIS: NASA is amending 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 proposed rule, see the November 12, 2002, FEDERAL CONTRACTS DISPATCH "National Aeronautics and Space Administration Federal Acquisition Regulation (FAR) Supplement (NFS); Trade Agreements Act -- Exception for U.S.-Made End Products."

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.

EFFECTIVE DATE: March 12, 2003.

FOR FURTHER INFORMATION CONTACT: Patrick Flynn, Code HK, 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 revision of the Defense FAR Supplement (DFARS) regarding the treatment of U.S.-made end products (see the December 20, 2002, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Trade Agreements Act -- Exception for U.S.-Made End Products."

On November 12, 2002, NASA published a proposed revision to NFS Part 1825 to implement the September 13, 2002, determination. The proposed rule would make the following changes to NFS Part 1825:

Comments were received from one industry association, and those comments were supportive of the change. Therefore, this final rule adopts the proposed rule without change.

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

Copyright 2003 by Panoptic Enterprises. All Rights Reserved.

Return to the Dispatches Library.

Return to the Main Page.