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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: June 4, 2004

SUBJECT: Department of Defense; Exemption from Limitations on Procurement of Foreign Information Technology That is a Commercial Item

SOURCE: Department of Defense Memorandum, dated May 18, 2004

AGENCIES: Department of Defense (DOD)

ACTION: Class Deviation

SYNOPSIS: On May 18, 2004, Director of Defense Procurement and Acquisition Policy Deidre Lee issued a memorandum to the directors of defense agencies, the services' assistant secretaries for acquisition, the director of the Defense Contract Management Agency, and the Defense Logistics Agency's executive director for acquisition, technology, and supply directing them not to apply the Buy American Act to acquisitions of foreign information technology using Fiscal Year 2004 funds.

EFFECTIVE DATES: From May 18, 2004, until the deviation's provisions are incorporated into the Defense Federal Acquisition Regulation Supplement (DFARS) or through April 20, 2009, or the deviation is rescinded.

SUPPLEMENTAL INFORMATION: The Consolidated Appropriations Act for Fiscal Year 2004 (Public Law 108-199), contains Section 535, Exemption from Limitations on Procurement of Foreign Information Technology That is a Commercial Item. Paragraph (a) of Section 535 states:

"In order to promote government access to commercial information technology, the restriction on purchasing nondomestic articles, materials, and supplies set forth in the Buy American Act, shall not apply to the acquisition by the federal government of information technology...that is a commercial item."

On May 18, 2004, the director of defense procurement and acquisition policy issued a class deviation exempting acquisitions of foreign information technology using FY 2004 funds from the provisions of DFARS 252.225-7000, Buy American Act -- Balance of Payments Program Certificate; DFARS 252.225-7001, Buy American Act and Balance of Payments Program; DFARS 252.225-7035, Buy American Act -- Free Trade Agreements -- Balance of Payments Program Certificate; and DFARS 252.225-7036, Buy American Act -- Free Trade Agreements -- Balance of Payments Program.

The deviation goes on to direct the use of DFARS 252.225-7020, Trade Agreements Certificate, and DFARS 252.225-7021, Trade Agreements, when applicable as prescribed by paragraphs (5) and (6) of DFARS 225.1101, Acquisition of Supplies.

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

Copyright 2004 by Panoptic Enterprises. All Rights Reserved.

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