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DLAD PART 25



PART 25

FOREIGN ACQUISITION

SUBPART 25.1 - BUY AMERICAN ACT - SUPPLIES

25.103 Exceptions.

25.104 Nonavailable Articles.

SUBPART 25.8 - INTERNATIONAL AGREEMENTS AND COORDINATION

25.870 Contracting with Canadian contractors.

SUBPART 25.9 - CUSTOMS AND DUTIES

25.903 Exempted supplies.

SUBPART 25.70 - AUTHORIZATION ACTS, APPROPRIATIONS ACTS, AND OTHER STATUTORY RESTRICTIONS ON FOREIGN PURCHASES

25.7002 Restriction on food, clothing, fabrics, and specialty metals.

25.7002-2 Domestic nonavailability validation

SUBPART 25.73 - ACQUISITIONS FOR FOREIGN MILITARY SALES

25.7302-90 Foreign Military Sales (FMS) shipping instructions.

SUBPART 25.75 - BALANCE OF PAYMENTS PROGRAM

25.7501 Policy.

SUBPART 25.1 - BUY AMERICAN ACT - SUPPLIES

25.103 Exceptions.

(b) (1) (90) The fact that an item to be procured is on the list at FAR 25.104(a) does not eliminate the buying activity’s responsibility to conduct market research appropriate to the circumstances, to include seeking domestic sources, before soliciting offers. (See 10.001(a)(2)(93)).

(b)(i) Prepare nonavailability determinations in Determination and Findings (D&F) form.

(b)(i)(C) For contracting offices where the Deputy Director, Logistics Operations, (J-3) is the HCA, submit waiver requests to HQ DLA, Attn: J-3312.

(b)(ii) For purposes of determining the approval level, do not add option totals to basic award amounts. Prior to exercising an option, however, a new determination of nonavailability (for the option total only) must be made.

25.104 Nonavailable Articles

(b)(90) If it is determined that an article contained on the list at FAR 25.104(a) is available domestically in sufficient and reasonably available quantities of a satisfactory quality, steps should be taken to propose a revision to the FAR to remove the article from the list. (See FAR 25.104(b)). Document the file with the results of the market research and include a definitive statement concerning the item’s domestic availability. (See 1.201-91 for procedures on amending the FAR or the DFARS.)

SUBPART 25.8 - INTERNATIONAL AGREEMENTS AND COORDINATION

25.870 Contracting with Canadian contractors.

25.870-1 General

(e)(90) See 15.403-3(c)(4)(A)(90)(91) for price analysis and price reasonableness determination requirements for offers from Canadian Commercial Corporation.

SUBPART 25.9 - CUSTOMS AND DUTIES

25.903 Exempted supplies.

(1) The Commander, DESC, or designee, is authorized to execute duty-free entry certificates for the fuels-related supplies in DFARS 225.903(b)(i)(2).

SUBPART 25.70 - AUTHORIZATION ACTS, APPROPRIATIONS ACTS, AND

OTHER STATUTORY RESTRICTIONS ON FOREIGN PURCHASES

25.7002 Restriction on food, clothing, fabrics, and specialty metals.

25.7002-2 Exceptions.

25.7002-2 (90) Domestic NonavailabilityValidation.

DFARS 225.7002-2(c) contains an exception to the Berry Amendment domestic source restriction for those articles listed at FAR 25.104(a). Before soliciting offers for items covered by the restriction at DFARS 225.7002 that fall under the exception, the buying activity shall verify, through market research, that the article should remain on the list and thus, still be exempt from the Berry Amendment restriction. The contract file is to be documented accordingly. (See 10.001(a)(2)(93) and 25.104(b)(90)).

(a) All domestic non-availability determination approval requests made pursuant to 10 U.S.C. 2533a, also known as the Berry Amendment, shall be forwarded to the DLA Senior Procurement Executive for submission to the Under Secretary of Defense (Acquisition, Technology & Logistics) for approval. Options not exercised at time of award require a separate non-availability determination. (See DLAD 90.17)

(b) Each activity that has been granted a domestic non-availability determination (DNAD) is required to annually report 1) results of market research to find domestic sources that would preclude the continuing need for the DNAD; 2) results of specification reviews with requiring activities in order to find acceptable substitute products that would not require a DNAD; and 3) results of any additional requirements specified in the DNAD approval. The first submission is due to J-3312 on December 31, 2003.

25.7002-3 Contract clauses.

(c) Alternate 1 of the clause at 252.225-7014, preference for Domestic Specialty metals, must be used for weapon-systems-coded items procured for one of the enumerated programs.

SUBPART 25.73 - ACQUISITIONS FOR FOREIGN MILITARY SALES

25.7302-90 Foreign Military Sales (FMS) shipping instructions.

(a) In order to reduce misdirected shipments of FMS materiel, do not place shipping addresses on FMS contracts except as provided in paragraphs (b) and (c) below. Instead, place a notice in the contract requiring the contractor to contact the transportation officer (TO) at the contracting activity that awarded the contract or that placed the order, unless contract administration responsibilities were assigned to an office other than the contracting activity that awarded the contract. Orders and contracts assigned to DCMA for administration shall include a notice to require the contractor to submit a DD Form 1659, Application for U.S. Government Shipping Documentation/Instructions, to the transportation officer at the contract administration office for shipping instructions. Use a clause substantially the same as that provided at 52.225-9002, FMS Shipping Instructions (June 1998).

(b) A shipping address may be placed in FMS contracts if complete shipment is anticipated within 120 days of award.

(c) Contracts contemplating using f.o.b. origin shipping terms may include a firm shipping address.

(d) Additional contract provisions may be appropriate to satisfy unique requirements for requisitions that contain a "Z" or "Y" in card column 46. However, do not list the freight forwarder or embassy addresses in the contract.

(e) By memorandum dated August 10, 2000, the Defense Security Cooperation Agency approved the use of DVD with fast payment procedures as a means to improve support to foreign military sales customers. This approval will allow the inclusion of FMS customer requirements in many contract arrangements and eliminate unnecessary Government source inspections. However, the following considerations may affect the decision to include FMS requirements in DVD contracts:

SUBPART 25.75 - BALANCE OF PAYMENTS PROGRAM

25.7501 Policy.

(c) The public interest determination shall be made by the Deputy Director, Logistics Operations, (J-3) Requesting activities shall submit their request in the form of a proposed D&F to HQ DLA, ATTN: J-3312. Include the rationale for the determination as well as all relevant facts.

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