# AFFARS PART 5325Foreign Acquisition

- PART 5325
  Foreign Acquisition

- SUBPART 5325.1 — BUY AMERICAN ACT - SUPPLIES

- 5325.103 Exceptions.

- SUBPART 5325.8 — OTHER INTERNATIONAL AGREEMENTS AND COORDINATION

- 5325.870 Contracting with Canadian contractors.

- SUBPART 5325.10 — ADDITIONAL FOREIGN ACQUISITION REGULATIONS

- 5325.1001 Waiver of Right to Examination of Records.
- 5325.1002 Use of Foreign Currency.

- SUBPART 5325.70 — AUTHORIZATION ACTS, APPROPRIATIONS ACTS, AND OTHER STATUTORY RESTRICTIONS ON FOREIGN ACQUISITION

- 5325.7002 Restrictions on Food, Clothing, Fabrics, Specialty Metals, and Hand or Measuring Tools. (No Text)

- 5325.7002-2 Exceptions.

PART 5325
Foreign Acquisition

[Revised April 3, 2008 per Policy Memo 08-C-03]

SUBPART 5325.1 — BUY AMERICAN ACT - SUPPLIES

5325.103 Exceptions.

Follow the Mandatory Procedures at MP5325.103 when a determination of nonavailability is required by FAR 25.103 and DFARS 225.103.

SUBPART 5325.8 — OTHER INTERNATIONAL AGREEMENTS AND COORDINATION

5325.870 Contracting with Canadian contractors.

Follow the Mandatory Procedures at MP5325.870 when contemplating a research contract with educational institutions of Canada.

SUBPART 5325.10 — ADDITIONAL FOREIGN ACQUISITION REGULATIONS

5325.1001 Waiver of Right to Examination of Records.

Follow the Mandatory Procedures at MP5325.1001 when requesting use of FAR 52.215-2 with its Alternate III.

5325.1002 Use of Foreign Currency.

The contracting officer shall insert the provision at AFFARS 5352.225-9004, Submission of Offers in other than United States Currency, when offers are given a choice of submitting offers in United States dollars or in a currency other than United States dollars. When purchase requests and contracts are expressed in foreign currency, the rate of exchange to be used in determining any applicable acquisition thresholds and authorities will be the current Foreign Currency Fluctuation Defense (FCFD) budget rate for the applicable currency.

SUBPART 5325.70 — AUTHORIZATION ACTS, APPROPRIATIONS ACTS, AND OTHER STATUTORY RESTRICTIONS ON FOREIGN ACQUISITION

5325.7002 Restrictions on Food, Clothing, Fabrics, Specialty Metals, and Hand or Measuring Tools. (No Text)
5325.7002-2 Exceptions.

Follow the Mandatory Procedures at MP5325.7002-2 when purchasing restricted food, clothing, fabrics, specialty metals, hand or measuring tools, and Commercial Derivative Military Articles (CDMA).

(a) Exceptions for Food, Clothing, Fabrics, and Hand or Measuring Tools. When the Contracting Officer determines through market research, that an article or suitable substitute is not available from a domestic source, the Contracting Officer shall submit a Domestic Non-availability Determination (DNAD) following the format in the Mandatory Procedures at MP5325.7002-2, Addendum 1. The DNAD shall be coordinated through SAF/AQCK, for approval by the Secretary of the Air Force. The authority of the Secretary of the Air Force to make determinations in accordance with DFARS 225.7002-2 is not delegable.

(b) Exceptions for Specialty Metals. When the Contracting Officer determines, through market research, that a specialty metal melted or produced in the United States or its possessions cannot be procured in satisfactory quality and sufficient quantity, and in the required form, as and when needed, follow the format in the Mandatory Procedures MP5325.7002-2, Addendum 2, when submitting a request for Domestic Nonavailability Determination (DNAD). The DNAD shall be coordinated through SAF/AQCK for approval by the Secretary of the Air Force. The authority of the Secretary of the Air Force to make determinations in accordance with DFARS 225.7002-2 is not delegable. For contracts awarded after October 16, 2006, Contracting Officers have no authority to award contracts that allow for the delivery of non-compliant specialty metals in the absence of an approved DNAD, an exception, or an offer by the contractor to provide compliant specialty metals. However, if an award is anticipated while a DNAD is in process, the Contracting Officer may conditionally award the contract (MP5325.7002-2, (2)). If the DNAD is not ultimately approved, the contractor must deliver compliant products.

(c) Exceptions for Commercial Derivative Military Articles (CDMA). When a contractor or offeror submits a certification for streamlined compliance for Commercial Derivative Military Articles, the Secretary of the Air Force must determine that the item is a CDMA before using the rules for streamlined compliance for CDMA. The contracting officer shall follow the procedures in Deviation 2008-O0002 and submit Determination and Finding following the format in the Mandatory Procedures at MP5325.7002-2, Addendum 3.

(d) Delegation Authority for Disposition on the Specialty Metal Withholds and One-Time Waivers. When a Contracting Officer has conditionally accepted non-compliant end items and withheld dollar amounts on contracts or task orders awarded prior to October 16, 2006 (with final acceptance before September 30, 2010), one-time waiver authority and corrective action plan authority has been authorized by Congress. Issuance of one-time waiver authority and the authority to negotiate corrective action plans has been delegated to DCMA (SAF/AQ Memo, dated Apr 6, 2007). Where DCMA is the Administrative Contracting Officer (ACO) on Air Force contracts, DCMA has been granted the authority to approve one-time waivers for Air Force contracts when the following conditions apply:

A contractor has submitted a corrective action plan that corrects its specialty metal non-compliance issues on a broad basis.

The corrective action plan would resolve non-compliant Air Force contracts consistent with Section 842(b)(1)(B) of the FY 2007 National Defense Authorization Act (NDAA).

Withholds were taken on contracts awarded prior to October 16, 2006.

The one-time waiver is intended to be used by Contracting Officers to put contractors and the Air Force on the path to full compliance. A contractor must submit a clear, effective, and specific corrective action plan in order to obtain a waiver.