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   <concept id="DFARS_252.225-7036"
            ditaarch:DITAArchVersion="1.2"
            class="- topic/topic concept/concept ">
      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">252.225-7036</ph> Buy American—FreeTrade Agreements—Balance of Payments Program.</title>
      <conbody class="- topic/body  concept/conbody ">
         <p id="LGCvcT" class="- topic/p ">
            <i class="+ topic/ph hi-d/i ">Basic</i>. As prescribed in <xref href="225.1101.dita#DFARS_225.1101"
                  base="DFARS-225.1101"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref ">225.1101</xref> (10)(i) and (10)(i)(A),
use the following clause:</p>
         <p id="fUmpwn" outputclass="Ctr_SmCaps" class="- topic/p ">BUY
            AMERICAN—FREE TRADE AGREEMENTS—BALANCE OF PAYMENTS PROGRAM—BASIC (JUN 2022)</p>
         <p id="mFBpLk" outputclass="List1" class="- topic/p ">(a) <i class="+ topic/ph hi-d/i ">Definitions.</i>As
used in this clause—</p>
         <p id="PVNMqU" class="- topic/p ">“Bahrainian end product” means an article that—</p>
         <p id="OoUXnF" outputclass="List2" class="- topic/p ">
            (1) Is wholly the growth, product, or manufacture of Bahrain; or</p>
         <p id="jkpuDg" outputclass="List2" class="- topic/p ">
            (2) In the case of an article that consists in whole or in part of materials
            from another country, has been substantially transformed in Bahrain into a new and
            different article of commerce with a name, character, or use distinct from that of the
            article or articles from which it was transformed. The term refers to a product offered
            for purchase under a supply contract, but for purposes of calculating the value of the
            end product includes services (except transportation services) incidental to its supply,
            provided that the value of those incidental services does not exceed the value of the
            product itself.</p>
         <p id="LQWWNQ" class="- topic/p ">“Commercially available off-the-shelf (COTS) item”—</p>
         <p id="ZNfFXT" outputclass="List2" class="- topic/p ">
            (1) Means any item of supply (including construction material) that is—</p>
         <p id="YkKhYZ" outputclass="List3" class="- topic/p ">
            (i) A commercial item (as defined in paragraph (1) of the definition of
            “commercial item” in section 2.101 of the Federal Acquisition Regulation);</p>
         <p id="ZhDTJT" outputclass="List3" class="- topic/p ">
            (ii) Sold in substantial quantities in the commercial marketplace; and</p>
         <p id="gfgpmN" outputclass="List3" class="- topic/p ">
            (iii) Offered to the Government, under a contract or subcontract at any tier,
            without modification, in the same form in which it is sold in the commercial
            marketplace; and</p>
         <p id="uWMvjw" outputclass="List2" class="- topic/p ">
            (2) Does not include bulk cargo, as defined in 46 U.S.C. 40102(4), such as
            agricultural products and petroleum products.</p>
         <p id="rwKcMx" class="- topic/p ">“Component” means an article, material, or supply
incorporated directly into an end product.</p>
         <p id="lJgdnU" class="- topic/p ">“Domestic end product” means—</p>
         <p outputclass="List2" class="- topic/p ">(1) For an end product that does not consist wholly or predominantly
            of iron or steel or a combination of both—</p>
         <p id="tTkwMq" outputclass="List3" class="- topic/p ">(i) An unmanufactured end
product that has been mined or produced in the United States; or</p>
         <p id="tZEuPe" outputclass="List3" class="- topic/p ">(ii) An end product manufactured
in the United States if—</p>
         <p id="QWJWGN" outputclass="List4" class="- topic/p ">(A) The cost of its qualifying
            country components and its components that are mined, produced, or manufactured in the
            United States exceeds 50 percent of the cost of all its components. The cost of
            components includes transportation costs to the place of incorporation into the end
            product and U.S. duty (whether or not a duty-free entry certificate is issued). Components of unknown origin are treated as foreign.
            Scrap generated, collected, and prepared for processing in the United States is
            considered domestic. A component is considered to have been mined, produced, or
            manufactured in the United States (regardless of its source in fact) if the end product
            in which it is incorporated is manufactured in the United States and the component is of
            a class or kind for which the Government has determined that—</p>
         <p id="HTiiJs" outputclass="List5" class="- topic/p ">
            <i class="+ topic/ph hi-d/i ">(1)</i> Sufficient and reasonably available commercial
            quantities of a satisfactory quality are not mined, produced, or manufactured in the
            United States; or</p>
         <p id="JJutGI" outputclass="List5" class="- topic/p ">
            <i class="+ topic/ph hi-d/i ">(2)</i> It is inconsistent with the public interest to
            apply the restrictions of the Buy American statute; or</p>
         <p id="lzOCye" outputclass="List4" class="- topic/p ">(B) The end product is a COTS item;
               or
         </p>
         <p outputclass="List2" class="- topic/p ">(2) For an end product that consists
            wholly or predominantly of iron or steel or a combination of both, an end product
            manufactured in the United States, if the cost of iron and steel not produced in the
            United States or a qualifying country constitutes less than 5 percent of the cost of all
            the components used in the end product (produced in the United States or a qualifying
            country means that all manufacturing processes of the iron or steel must take place in
            the United States or a qualifying country, except metallurgical processes involving
            refinement of steel additives). The cost of iron and steel not produced in the United
            States or a qualifying country includes but is not limited to the cost of iron or steel
            mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings,
            not produced in the United States or a qualifying country, utilized in the manufacture
            of the end product and a good faith estimate of the cost of all iron or steel components
            not produced in the United States or a qualifying country, excluding COTS fasteners.
            Iron or steel components of unknown origin are treated as foreign. If the end product
            contains multiple components, the cost of all the materials used in such end product is
            calculated in accordance with the explanation of cost of components in paragraph
            (1)(ii)(A) of this definition.</p>
         <p id="swdhPY" class="- topic/p ">“End product” means those articles, materials,
and supplies to be acquired under this contract for public use.</p>
         <p id="vPDnRa" class="- topic/p ">“Foreign end product” means an end product other
than a domestic end product.</p>
         <p id="aJmovB" class="- topic/p ">“Free Trade Agreement country” means Australia, Bahrain,
            Canada, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala,
            Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama, Peru, or Singapore.
         </p>
         <p id="efNIWK" class="- topic/p ">“Free Trade Agreement country end product” means
an article that—</p>
         <p id="PYybaN" outputclass="List2" class="- topic/p ">
            (1) Is wholly the growth, product, or manufacture of a Free Trade Agreement
            country; or</p>
         <p id="PGTdGY" outputclass="List2" class="- topic/p ">
            (2) In the case of an article that consists in whole or in part of materials
            from another country, has been substantially transformed in a Free Trade Agreement
            country into a new and different article of commerce with a name, character, or use
            distinct from that of the article or articles from which it was transformed. The term
            refers to a product offered for purchase under a supply contract, but for purposes of
            calculating the value of the end product includes services (except transportation
            services) incidental to its supply, provided that the value of those incidental services
            does not exceed the value of the product itself.</p>
         <p id="TjKLZw" class="- topic/p ">“Moroccan end product” means an article that—</p>
         <p id="IcAxTW" outputclass="List2" class="- topic/p ">
            (1) Is wholly the growth, product, or manufacture of Morocco; or</p>
         <p id="vdEcZb" outputclass="List2" class="- topic/p ">
            (2) In the case of an article that consists in whole or in part of materials
            from another country, has been substantially transformed in Morocco into a new and
            different article of commerce with a name, character, or use distinct from that of the
            article or articles from which it was transformed. The term refers to a product offered
            for purchase under a supply contract, but for purposes of calculating the value of the
            end product includes services (except transportation services) incidental to its supply,
            provided that the value of those incidental services does not exceed the value of the
            product itself.</p>
         <p id="MRBqvN" class="- topic/p ">“Panamanian end product” means an article that—</p>
         <p id="BbmVHd" outputclass="List2" class="- topic/p ">
            (1) Is wholly the growth, product, or manufacture of Panama; or</p>
         <p id="bVbaaH" outputclass="List2" class="- topic/p ">
            (2) In the case of an article that consists in whole or in part of materials
            from another country, has been substantially transformed in Panama into a new and
            different article of commerce with a name, character, or use distinct from that of the
            article or articles from which it was transformed. The term refers to a product offered
            for purchase under a supply contract, but for purposes of calculating the value of the
            end product includes services (except transportation services) incidental to its supply,
            provided that the value of those incidental services does not exceed the value of the
            product itself.</p>
         <p id="JjQJrz" class="- topic/p ">“Peruvian end product” means an article that—</p>
         <p id="oMAIRm" outputclass="List2" class="- topic/p ">
            (1) Is wholly the growth, product, or manufacture of Peru; or</p>
         <p id="itHGfd" outputclass="List2" class="- topic/p ">
            (2) In the case of an article that consists in whole or in part of materials
            from another country, has been substantially transformed in Peru into a new and
            different article of commerce with a name, character, or use distinct from that of the
            article or articles from which it was transformed. The term refers to a product offered
            for purchase under a supply contract, but for purposes of calculating the value of the
            end product includes services (except transportation services) incidental to its supply,
            provided that the value of those incidental services does not exceed the value of the
            product itself.</p>
         <p class="- topic/p ">
            “Predominantly of iron or steel or a combination of
               both” means that the cost of the iron and steel content exceeds 50 percent of the
               total cost of all its components. The cost of iron and steel is the cost of the iron
               or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings,
               or forgings utilized in the manufacture of the product and a good faith estimate of
               the cost of iron or steel components excluding COTS fasteners.
         </p>
         <p id="MHqxBt" class="- topic/p ">“Qualifying country” means a country with a reciprocal
defense procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove barriers
to purchases of supplies produced in the other country or services
performed by sources of the other country, and the memorandum or
agreement complies, where applicable, with the requirements of section
36 of the Arms Export Control Act (22 U.S.C. 2776) and with 10 U.S.C.
2457. Accordingly, the following are qualifying countries:</p>
         <p id="dYgVYT" class="- topic/p ">Australia</p>
         <p id="GApKDu" class="- topic/p ">Austria</p>
         <p id="EwTqis" class="- topic/p ">Belgium</p>
         <p id="SIpvwc" class="- topic/p ">Canada</p>
         <p id="XbbFKT" class="- topic/p ">Czech Republic</p>
         <p id="EsmVQE" class="- topic/p ">Denmark</p>
         <p id="eCZjsA" class="- topic/p ">Egypt</p>
         <p id="TusvYB" class="- topic/p ">Estonia</p>
         <p id="KBjJbX" class="- topic/p ">Finland</p>
         <p id="RkXsyV" class="- topic/p ">France</p>
         <p id="GldYOw" class="- topic/p ">Germany</p>
         <p id="pkjcfS" class="- topic/p ">Greece</p>
         <p id="uFWXmQ" class="- topic/p ">Israel</p>
         <p id="UFoZcb" class="- topic/p ">Italy</p>
         <p id="IENKHV" class="- topic/p ">Japan</p>
         <p id="UibblL" class="- topic/p ">Latvia</p>
         <p id="r38df5cz" class="- topic/p ">
            Lithuania
         </p>
         <p id="lYQERZ" class="- topic/p ">Luxembourg</p>
         <p id="PrVQAP" class="- topic/p ">Netherlands</p>
         <p id="UyeefB" class="- topic/p ">Norway</p>
         <p id="agyGBj" class="- topic/p ">Poland</p>
         <p id="EFTutN" class="- topic/p ">Portugal</p>
         <p id="foyjPD" class="- topic/p ">Slovenia</p>
         <p id="GLsCiW" class="- topic/p ">Spain</p>
         <p id="cABavF" class="- topic/p ">Sweden</p>
         <p id="QJimLG" class="- topic/p ">Switzerland</p>
         <p id="isfXiZ" class="- topic/p ">Turkey</p>
         <p id="ljBgbP" class="- topic/p ">United Kingdom of Great Britain and Northern Ireland.</p>
         <p id="hGmPBE" class="- topic/p ">“Qualifying country component” means a component
mined, produced, or manufactured in a qualifying country.</p>
         <p id="PWnNOM" class="- topic/p ">“Qualifying country end product” means—</p>
         <p id="SQPnQC" outputclass="List2" class="- topic/p ">(1) An unmanufactured end product
            mined or produced in a qualifying country; or</p>
         <p id="cBHhST" outputclass="List2" class="- topic/p ">(2) An end product manufactured in a
            qualifying country if—</p>
         <p id="zutEMM" outputclass="List3" class="- topic/p ">(i) The cost of the following types
            of components exceeds 50 percent of the cost of all its components:</p>
         <p id="XxzaqQ" outputclass="List4" class="- topic/p ">(A) Components mined, produced, or
            manufactured in a qualifying country.</p>
         <p id="qyxEID" outputclass="List4" class="- topic/p ">(B) Components mined, produced, or
            manufactured in the United States.</p>
         <p id="OkGokK" outputclass="List4" class="- topic/p ">(C) Components of foreign origin of a
            class or kind for which the Government has determined that sufficient and reasonably
            available commercial quantities of a satisfactory quality are not mined, produced, or
            manufactured in the United States; or</p>
         <p id="WEsrJK" outputclass="List3" class="- topic/p ">(ii) The end product is a COTS
            item.</p>
         <p class="- topic/p ">“Steel” means an alloy that includes at least 50 percent
            iron, between 0.02 and 2 percent carbon, and may include other elements.</p>
         <p id="mBFbTW" class="- topic/p ">“United States” means the 50 States, the District
of Columbia, and outlying areas.</p>
         <p id="tdcEEU" outputclass="List1" class="- topic/p ">(b) Unless otherwise specified,
this clause applies to all items in the Schedule.</p>
         <p id="iheVOT" outputclass="List1" class="- topic/p ">(c) The Contractor shall
deliver under this contract only domestic end products unless, in
its offer, it specified delivery of qualifying country end products,
Free Trade Agreement country end products other than Bahrainian
end products, Moroccan end products, Panamanian end products, or
Peruvian end products, or other foreign end products in the Buy
American—Free Trade Agreements—Balance of Payments Program Certificate—Basic
provision of the solicitation. If the Contractor certified in its
offer that it will deliver a qualifying country end product or a
Free Trade Agreement country end product other than a Bahrainian
end product, a Moroccan end product, a Panamanian end product, or
a Peruvian end product, the Contractor shall deliver a qualifying
country end product, a Free Trade Agreement country end product
other than a Bahrainian end product, a Moroccan end product, a Panamanian
end product, or a Peruvian end product, or, at the Contractor’s
option, a domestic end product.</p>
         <p id="bShVpD" outputclass="List1" class="- topic/p ">(d) The contract price does
not include duty for end products or components for which the Contractor
will claim duty-free entry.</p>
         <p id="ICDXCU" outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
         <section outputclass="Alternate" class="- topic/section ">
            <p id="UknVOU" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">Alternate
I</i>. As prescribed in <xref href="225.1101.dita#DFARS_225.1101"
                     base="DFARS-225.1101"
                     outputclass="fm:ParaNumOnly"
                     class="- topic/xref ">225.1101</xref> (10)(i)
and (10)(i)(B), use the following clause, which adds “Canadian end
product” to paragraph (a), and uses a different paragraph (c) than
the basic clause:</p>
            <p id="AkTCUE" outputclass="Ctr_SmCaps" class="- topic/p ">BUY AMERICAN—FREE TRADE AGREEMENTS—BALANCE OF PAYMENTS PROGRAM—ALTERNATE I (JUN
               2022)</p>
            <p id="zAqKzN" outputclass="List1" class="- topic/p ">(a) <i class="+ topic/ph hi-d/i ">Definitions.</i>As used in this
clause—</p>
            <p id="kLyAjy" class="- topic/p ">“Bahrainian end product” means an article
that—</p>
            <p id="MWtepc" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Bahrain; or</p>
            <p id="xnZfqy" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Bahrain into a new and
               different article of commerce with a name, character, or use distinct from that of
               the article or articles from which it was transformed. The term refers to a product
               offered for purchase under a supply contract, but for purposes of calculating the
               value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p id="EZltKt" class="- topic/p ">“Canadian end
product” means an article that—</p>
            <p id="WAdlZS" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Canada; or</p>
            <p id="jXMqho" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Canada into a new and
               different article of commerce with a name, character, or use distinct from that of
               the article or articles from which it was transformed. The term refers to a product
               offered for purchase under a supply contract, but for purposes of calculating the
               value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p id="MHpsBj" class="- topic/p ">“Commercially available off-the-shelf (COTS) item”—</p>
            <p id="MdSvkB" outputclass="List2" class="- topic/p ">
               (1) Means any item of supply (including construction material) that is—</p>
            <p id="dloRwa" outputclass="List3" class="- topic/p ">
               (i) A commercial item (as defined in paragraph (1) of the definition of
               “commercial item” in section 2.101 of the Federal Acquisition Regulation);</p>
            <p id="NNHIPr" outputclass="List3" class="- topic/p ">
               (ii) Sold in substantial quantities in the commercial marketplace; and</p>
            <p id="sywGRc" outputclass="List3" class="- topic/p ">
               (iii) Offered to the Government, under a contract or subcontract at any
               tier, without modification, in the same form in which it is sold in the commercial
               marketplace; and</p>
            <p id="TjbYnq" outputclass="List2" class="- topic/p ">
               (2) Does not include bulk cargo, as defined in 46 U.S.C. 40102(4), such as
               agricultural products and petroleum products.</p>
            <p id="rwhnlI" class="- topic/p ">“Component”
means an article, material, or supply incorporated directly into
an end product.</p>
            <p id="vmySzX" class="- topic/p ">“Domestic end product” means—</p>
            <p outputclass="List2" class="- topic/p ">(1) For an end product that does not
               consist wholly or predominantly of iron or steel or a combination of both—</p>
            <p id="ZIEFJU" outputclass="List3" class="- topic/p ">(i) An unmanufactured end product mined or produced in the United States;
               or</p>
            <p id="AkWXcj" outputclass="List3" class="- topic/p ">(ii) An end product manufactured
in the United States if—</p>
            <p id="dhBDIH" outputclass="List4" class="- topic/p ">(A)
The cost of its qualifying country components and its components
that are mined, produced, or manufactured in the United States exceeds
50 percent of the cost of all its components. The cost of components
includes transportation costs to the place of incorporation into
the end product and U.S. duty (whether or not a duty-free entry certificate
is issued). Scrap generated, collected, and prepared for processing
in the United States is considered domestic. A component is considered
to have been mined, produced, or manufactured in the United States
(regardless of its source in fact) if the end product in which it
is incorporated is manufactured in the United States and the component
is of a class or kind for which the Government has determined that—</p>
            <p id="NhqFYM" outputclass="List6" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(1)</i> Sufficient and
reasonably available commercial quantities of a satisfactory quality
are not mined, produced, or manufactured in the United States; or</p>
            <p id="GzhurX" outputclass="List6" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(2)</i> It is inconsistent
with the public interest to apply the restrictions of the Buy American
statute; or</p>
            <p id="nKchWc" outputclass="List4" class="- topic/p ">(B) The end product is a COTS
               item; or
            </p>
            <p outputclass="List2" class="- topic/p ">(2) For an end product that consists
               wholly or predominantly of iron or steel or a combination of both, an end product
               manufactured in the United States, if the cost of iron and steel not produced in the
               United States or a qualifying country constitutes less than 5 percent of the cost of
               all the components used in the end product (produced in the United States or a
               qualifying country means that all manufacturing processes of the iron or steel must
               take place in the United States or a qualifying country, except metallurgical
               processes involving refinement of steel additives). The cost of iron and steel not
               produced in the United States or a qualifying country includes but is not limited to
               the cost of iron or steel mill products (such as bar, billet, slab, wire, plate, or
               sheet), castings, or forgings, not produced in the United States or a qualifying
               country, utilized in the manufacture of the end product and a good faith estimate of
               the cost of all iron or steel components not produced in the United States or a
               qualifying country, excluding COTS fasteners. Iron or steel components of unknown
               origin are treated as foreign. If the end product contains multiple components, the
               cost of all the materials used in such end product is calculated in accordance with
               the explanation of cost of components in paragraph (1)(ii)(A) of this definition.</p>
            <p id="clFRMh" class="- topic/p ">“End product” means
those articles, materials, and supplies to be acquired under this
contract for public use.</p>
            <p id="sOpzvH" class="- topic/p ">“Foreign end product”
means an end product other than a domestic end product.</p>
            <p id="LAHlTY" class="- topic/p ">“Free Trade Agreement country” means Australia,
               Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador,
               Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama, Peru,
               or Singapore.
            </p>
            <p id="ZHTTfv" class="- topic/p ">“Free
Trade Agreement country end product” means an article that—</p>
            <p id="ijlrBp" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of a Free Trade Agreement
               country; or</p>
            <p id="opgJvh" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in a Free Trade Agreement
               country into a new and different article of commerce with a name, character, or use
               distinct from that of the article or articles from which it was transformed. The term
               refers to a product offered for purchase under a supply contract, but for purposes of
               calculating the value of the end product includes services (except transportation
               services) incidental to its supply, provided that the value of those incidental
               services does not exceed the value of the product itself.</p>
            <p id="HpzTGf" class="- topic/p ">“Moroccan end product” means an article that—</p>
            <p id="UAcgCJ" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Morocco; or</p>
            <p id="ZJWvBm" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Morocco into a new and
               different article of commerce with a name, character, or use distinct from that of
               the article or articles from which it was transformed. The term refers to a product
               offered for purchase under a supply contract, but for purposes of calculating the
               value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p id="GsZgrq" class="- topic/p ">“Panamanian
end product” means an article that—</p>
            <p id="ijnDPw" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Panama; or</p>
            <p id="TReWQi" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Panama into a new and
               different article of commerce with a name, character, or use distinct from that of
               the article or articles from which it was transformed. The term refers to a product
               offered for purchase under a supply contract, but for purposes of calculating the
               value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p id="IYxjrF" class="- topic/p ">“Peruvian end product” means an article that—</p>
            <p id="VNDbdo" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Peru; or</p>
            <p id="FAoZAu" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Peru into a new and
               different article of commerce with a name, character, or use distinct from that of
               the article or articles from which it was transformed. The term refers to a product
               offered for purchase under a supply contract, but for purposes of calculating the
               value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p class="- topic/p ">“Predominantly of iron or steel or a combination of both”
               means that the cost of the iron and steel content exceeds 50 percent of the total
               cost of all its components. The cost of iron and steel is the cost of the iron or
               steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or
               forgings utilized in the manufacture of the product and a good faith estimate of the
               cost of iron or steel components excluding COTS fasteners.</p>
            <p id="POMlMz" class="- topic/p ">“Qualifying country” means a country with a reciprocal
               defense procurement memorandum of understanding or international agreement with the
               United States in which both countries agree to remove barriers to purchases of
               supplies produced in the other country or services performed by sources of the other
               country, and the memorandum or agreement complies, where applicable, with the
               requirements of section 36 of the Arms Export Control Act (22 U.S.C. 2776) and with
               10 U.S.C. 2457. Accordingly, the following are qualifying countries:</p>
            <p id="fJGsta" class="- topic/p ">Australia</p>
            <p id="gImcZj" class="- topic/p ">Austria</p>
            <p id="BYspDS" class="- topic/p ">Belgium</p>
            <p id="AQtvnx" class="- topic/p ">Canada</p>
            <p id="ekiIoc" class="- topic/p ">Czech Republic</p>
            <p id="fduYWA" class="- topic/p ">Denmark</p>
            <p id="NaQZUR" class="- topic/p ">Egypt</p>
            <p id="vBNXuW" class="- topic/p ">Estonia</p>
            <p id="pKIXAi" class="- topic/p ">Finland</p>
            <p id="NHnYhF" class="- topic/p ">France</p>
            <p id="ejHeFA" class="- topic/p ">Germany</p>
            <p id="UBOqEr" class="- topic/p ">Greece</p>
            <p id="PQcrHO" class="- topic/p ">Israel</p>
            <p id="FryxOl" class="- topic/p ">Italy</p>
            <p id="fyUjYu" class="- topic/p ">Japan</p>
            <p id="jyQIds" class="- topic/p ">Latvia</p>
            <p id="0m5oz58f" class="- topic/p ">
               Lithuania
            </p>
            <p id="qGMJGd" class="- topic/p ">Luxembourg</p>
            <p id="PmmatA" class="- topic/p ">Netherlands</p>
            <p id="MnQqNy" class="- topic/p ">Norway</p>
            <p id="ACplGR" class="- topic/p ">Poland</p>
            <p id="stbBcY" class="- topic/p ">Portugal</p>
            <p id="oKVWSV" class="- topic/p ">Slovenia</p>
            <p id="gAtDHE" class="- topic/p ">Spain</p>
            <p id="SawLgS" class="- topic/p ">Sweden</p>
            <p id="yvIPtc" class="- topic/p ">Switzerland</p>
            <p id="EEIuxE" class="- topic/p ">Turkey</p>
            <p id="yhctPg" class="- topic/p ">United Kingdom of Great Britain and Northern Ireland.</p>
            <p id="DwRHZV" class="- topic/p ">“Qualifying country component” means a component
mined, produced, or manufactured in a qualifying country.</p>
            <p id="JrJBww" class="- topic/p ">“Qualifying country end product” means—</p>
            <p id="LUQSeK" outputclass="List2" class="- topic/p ">
               (1) An unmanufactured end product mined or produced in a qualifying country;
               or</p>
            <p id="FlNhfS" outputclass="List2" class="- topic/p ">
               (2) An end product manufactured in a qualifying country if—</p>
            <p id="megYRl" outputclass="List3" class="- topic/p ">
               (i) The cost of the following types of components exceeds 50 percent of the
               cost of all its components:</p>
            <p id="PjVqmF" outputclass="List4" class="- topic/p ">
               (A) Components mined, produced, or manufactured in a qualifying country.</p>
            <p id="jeMZXF" outputclass="List4" class="- topic/p ">
               (B) Components mined, produced, or manufactured in the United States.</p>
            <p id="eZNaQV" outputclass="List4" class="- topic/p ">
               (C) Components of foreign origin of a class or kind for which the Government
               has determined that sufficient and reasonably available commercial quantities of a
               satisfactory quality are not mined, produced, or manufactured in the United States;
               or</p>
            <p id="eAfBaH" outputclass="List3" class="- topic/p ">
               (ii) The end product is a COTS item.</p>
            <p class="- topic/p ">“Steel” means an alloy that includes at least 50 percent
               iron, between 0.02 and 2 percent carbon, and may include other elements.</p>
            <p id="IHmsoK" class="- topic/p ">“United States” means the 50
States, the District of Columbia, and outlying areas.</p>
            <p id="CrSOLd" outputclass="List1" class="- topic/p ">(b) Unless otherwise specified,
this clause applies to all items in the Schedule.</p>
            <p id="MOCohG" outputclass="List1" class="- topic/p ">(c) The Contractor shall deliver under
this contract only domestic end products unless, in its offer, it
specified delivery of qualifying country, Canadian, or other foreign
end products in the Buy American—Free Trade Agreements—Balance of Payments
Program Certificate—Alternate I provision of the solicitation. If
the Contractor certified in its offer that it will deliver a qualifying
country end product or a Canadian end product, the Contractor shall
deliver a qualifying country end product, a Canadian end product,
or, at the Contractor’s option, a domestic end product.</p>
            <p id="WKDrHR" outputclass="List1" class="- topic/p ">(d) The contract price does
not include duty for end products or components for which the Contractor
will claim duty-free entry.</p>
            <p id="YMDffc" outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
            <p id="RKsNin" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">Alternate
II</i>. As prescribed in <xref href="225.1101.dita#DFARS_225.1101"
                     base="DFARS-225.1101"
                     outputclass="fm:ParaNumOnly"
                     class="- topic/xref ">225.1101</xref> (10)(i)
and (10)(i)(C), use the following clause, which adds “South Caucasus/Central and
South Asian (SC/CASA) state” and “South Caucasus/Central and South
Asian (SC/CASA) state end product” to paragraph (a), and uses a
different paragraph (c) than the basic clause:</p>
            <p id="SCEWbx" outputclass="Ctr_SmCaps" class="- topic/p ">BUY AMERICAN—FREE TRADE AGREEMENTS—BALANCE OF PAYMENTS PROGRAM—ALTERNATE II (JUN
               2022)</p>
            <p id="BnIREf" outputclass="List1" class="- topic/p ">(a) <i class="+ topic/ph hi-d/i ">Definitions.</i>As
used in this clause—</p>
            <p id="cJJJBk" class="- topic/p ">“Bahrainian end product”
means an article that—</p>
            <p id="TUlPgV" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Bahrain; or</p>
            <p id="olgasu" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Bahrain into a new and
               different article of commerce with a name, character, or use distinct from that of
               the article or articles from which it was transformed. The term refers to a product
               offered for purchase under a supply contract, but for purposes of calculating the
               value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p id="JFopFW" class="- topic/p ">“Commercially
available off-the-shelf (COTS) item”—</p>
            <p id="WDusGH" outputclass="List2" class="- topic/p ">
               (1) Means any item of supply (including construction material) that is—</p>
            <p id="sFdSXp" outputclass="List3" class="- topic/p ">
               (i) A commercial item (as defined in paragraph (1) of the definition of
               “commercial item” in section 2.101 of the Federal Acquisition Regulation);</p>
            <p id="DwhcFe" outputclass="List3" class="- topic/p ">
               (ii) Sold in substantial quantities in the commercial marketplace; and</p>
            <p id="RKJDFA" outputclass="List3" class="- topic/p ">
               (iii) Offered to the Government, under a contract or subcontract at any
               tier, without modification, in the same form in which it is sold in the commercial
               marketplace; and</p>
            <p id="qrIggt" outputclass="List2" class="- topic/p ">
               (2) Does not include bulk cargo, as defined in 46 U.S.C. 40102(4), such as
               agricultural products and petroleum products.</p>
            <p id="cucbLN" class="- topic/p ">“Component”
means an article, material, or supply incorporated directly into
an end product.</p>
            <p id="cLViFt" class="- topic/p ">“Domestic end product” means—</p>
            <p outputclass="List2" class="- topic/p ">(1) For an end product that does not
               consist wholly or predominantly of iron or steel or a combination of both—</p>
            <p id="oLSVqx" outputclass="List3" class="- topic/p ">(i) An unmanufactured end product mined or produced in the United States;
               or</p>
            <p id="wAILDM" outputclass="List3" class="- topic/p ">(ii) An end product manufactured
in the United States if—</p>
            <p id="vIDanZ" outputclass="List4" class="- topic/p ">(A) The cost of its qualifying
               country components and its components that are mined, produced, or manufactured in
               the United States exceeds 50 percent of the cost of all its components. The cost of
               components includes transportation costs to the place of incorporation into the end
               product and U.S. duty (whether or not a duty-free entry certificate is issued). Components of unknown origin are treated as
                  foreign. Scrap generated, collected, and prepared for processing in the
               United States is considered domestic. A component is considered to have been mined,
               produced, or manufactured in the United States (regardless of its source in fact) if
               the end product in which it is incorporated is manufactured in the United States and
               the component is of a class or kind for which the Government has determined that—</p>
            <p id="xybKiE" outputclass="List6" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(1)</i> Sufficient and
reasonably available commercial quantities of a satisfactory quality
are not mined, produced, or manufactured in the United States; or</p>
            <p id="txIdIv" outputclass="List6" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(2)</i> It is inconsistent
with the public interest to apply the restrictions of the Buy American
statute; or</p>
            <p id="IVblzW" outputclass="List4" class="- topic/p ">(B) The end product is a COTS
               item; or
            </p>
            <p outputclass="List2" class="- topic/p ">(2) For an end product that consists
               wholly or predominantly of iron or steel or a combination of both, an end product
               manufactured in the United States, if the cost of iron and steel not produced in the
               United States or a qualifying country constitutes less than 5 percent of the cost of
               all the components used in the end product (produced in the United States or a
               qualifying country means that all manufacturing processes of the iron or steel must
               take place in the United States or a qualifying country, except metallurgical
               processes involving refinement of steel additives). The cost of iron and steel not
               produced in the United States or a qualifying country includes but is not limited to
               the cost of iron or steel mill products (such as bar, billet, slab, wire, plate, or
               sheet), castings, or forgings, not produced in the United States or a qualifying
               country, utilized in the manufacture of the end product and a good faith estimate of
               the cost of all iron or steel components not produced in the United States or a
               qualifying country, excluding COTS fasteners. Iron or steel components of unknown
               origin are treated as foreign. If the end product contains multiple components, the
               cost of all the materials used in such end product is calculated in accordance with
               the explanation of cost of components in paragraph (1)(ii)(A) of this definition.</p>
            <p id="Rsakhy" class="- topic/p ">“End product” means
those articles, materials, and supplies to be acquired under this
contract for public use.</p>
            <p id="DXSGUU" class="- topic/p ">“Foreign end product”
means an end product other than a domestic end product.</p>
            <p id="OSideH" class="- topic/p ">“Free Trade Agreement country” means Australia,
               Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador,
               Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama, Peru,
               or Singapore.
            </p>
            <p id="fKLOye" class="- topic/p ">“Free
Trade Agreement country end product” means an article that—</p>
            <p id="bRXfKy" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of a Free Trade Agreement
               country; or</p>
            <p id="zhsQgG" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in a Free Trade Agreement
               country into a new and different article of commerce with a name, character, or use
               distinct from that of the article or articles from which it was transformed. The term
               refers to a product offered for purchase under a supply contract, but for purposes of
               calculating the value of the end product includes services (except transportation
               services) incidental to its supply, provided that the value of those incidental
               services does not exceed the value of the product itself.</p>
            <p id="fWktbf" class="- topic/p ">“Moroccan end product” means an article that—</p>
            <p id="tWSYai" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Morocco; or</p>
            <p id="byLrEy" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Morocco into a new and
               different article of commerce with a name, character, or use distinct from that of
               the article or articles from which it was transformed. The term refers to a product
               offered for purchase under a supply contract, but for purposes of calculating the
               value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p id="qBsOfb" class="- topic/p ">“Panamanian
end product” means an article that—</p>
            <p id="zMaSOD" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Panama; or</p>
            <p id="LIRppL" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Panama into a new and
               different article of commerce with a name, character, or use distinct from that of
               the article or articles from which it was transformed. The term refers to a product
               offered for purchase under a supply contract, but for purposes of calculating the
               value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p id="DkZiCH" class="- topic/p ">“Peruvian end product” means an article that—</p>
            <p id="agsQwT" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Peru; or</p>
            <p id="kijQlQ" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Peru into a new and
               different article of commerce with a name, character, or use distinct from that of
               the article or articles from which it was transformed. The term refers to a product
               offered for purchase under a supply contract, but for purposes of calculating the
               value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p class="- topic/p ">“Predominantly of iron or steel or a combination of both”
               means that the cost of the iron and steel content exceeds 50 percent of the total
               cost of all its components. The cost of iron and steel is the cost of the iron or
               steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or
               forgings utilized in the manufacture of the product and a good faith estimate of the
               cost of iron or steel components excluding COTS fasteners.</p>
            <p id="SORwOM" class="- topic/p ">“Qualifying
country” means a country with a reciprocal defense procurement memorandum
of understanding or international agreement with the United States
in which both countries agree to remove barriers to purchases of
supplies produced in the other country or services performed by
sources of the other country, and the memorandum or agreement complies,
where applicable, with the requirements of section 36 of the Arms
Export Control Act (22 U.S.C. 2776) and with 10 U.S.C. 2457. Accordingly, the
following are qualifying countries:</p>
            <p id="RLNJFi" class="- topic/p ">Australia</p>
            <p id="RFOuBy" class="- topic/p ">Austria</p>
            <p id="mIYWGC" class="- topic/p ">Belgium</p>
            <p id="xuyYHC" class="- topic/p ">Canada</p>
            <p id="oKJxEg" class="- topic/p ">Czech Republic</p>
            <p id="IXwlZi" class="- topic/p ">Denmark</p>
            <p id="HwbGJu" class="- topic/p ">Egypt</p>
            <p id="wSzJSR" class="- topic/p ">Estonia</p>
            <p id="nTvbQV" class="- topic/p ">Finland</p>
            <p id="yLAkDM" class="- topic/p ">France</p>
            <p id="lHxyJV" class="- topic/p ">Germany</p>
            <p id="EZbOgn" class="- topic/p ">Greece</p>
            <p id="rkoPcG" class="- topic/p ">Israel</p>
            <p id="etNBow" class="- topic/p ">Italy</p>
            <p id="FrtKGX" class="- topic/p ">Japan</p>
            <p id="QyztAr" class="- topic/p ">Latvia</p>
            <p id="owdg4wab" class="- topic/p ">
               Lithuania
            </p>
            <p id="MmsRWc" class="- topic/p ">Luxembourg</p>
            <p id="FhwQkQ" class="- topic/p ">Netherlands</p>
            <p id="wrFqhv" class="- topic/p ">Norway</p>
            <p id="oxJCjy" class="- topic/p ">Poland</p>
            <p id="OpvvYR" class="- topic/p ">Portugal</p>
            <p id="etsTpk" class="- topic/p ">Slovenia</p>
            <p id="znuLQj" class="- topic/p ">Spain</p>
            <p id="BoBssn" class="- topic/p ">Sweden</p>
            <p id="YMiExt" class="- topic/p ">Switzerland</p>
            <p id="tvPzHc" class="- topic/p ">Turkey</p>
            <p id="guCAdC" class="- topic/p ">United Kingdom of Great Britain and Northern Ireland.</p>
            <p id="SmmDlZ" class="- topic/p ">“Qualifying country component” means a component
mined, produced, or manufactured in a qualifying country.</p>
            <p id="qLGaPJ" class="- topic/p ">“Qualifying country end product” means—</p>
            <p id="SGciin" outputclass="List2" class="- topic/p ">
               (1) An unmanufactured end product mined or produced in a qualifying country;
               or</p>
            <p id="rzpFKO" outputclass="List2" class="- topic/p ">
               (2) An end product manufactured in a qualifying country if—</p>
            <p id="SzVMvJ" outputclass="List3" class="- topic/p ">
               (i) The cost of the following types of components exceeds 50 percent of the
               cost of all its components:</p>
            <p id="BkaTFs" outputclass="List4" class="- topic/p ">
               (A) Components mined, produced, or manufactured in a qualifying country.</p>
            <p id="vaOziw" outputclass="List4" class="- topic/p ">
               (B) Components mined, produced, or manufactured in the United States.</p>
            <p id="ecyLcS" outputclass="List4" class="- topic/p ">
               (C) Components of foreign origin of a class or kind for which the Government
               has determined that sufficient and reasonably available commercial quantities of a
               satisfactory quality are not mined, produced, or manufactured in the United States;
               or</p>
            <p id="cKYGYq" outputclass="List3" class="- topic/p ">
               (ii) The end product is a COTS item.</p>
            <p id="blgUWy" class="- topic/p ">“South Caucasus/Central and
South Asian (SC/CASA) state” means Armenia, Azerbaijan, Georgia,
Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkmenistan, or Uzbekistan.</p>
            <p id="Rfwsjd" class="- topic/p ">“South Caucasus/Central and South Asian (SC/CASA)
state end product” means an article that—</p>
            <p id="IHQXep" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of an SC/CASA state;
               or</p>
            <p id="tZHESi" outputclass="List2" class="- topic/p ">
               (2) In the case
               of an article that consists in whole or in part of materials from another country,
               has been substantially transformed in an SC/CASA state into a new and different
               article of commerce with a name, character, or use distinct from that of the article
               or articles from which it was transformed. The term refers to a product offered for
               purchase under a supply contract, but for purposes of calculating the value of the
               end product includes services (except transportation services) incidental to its
               supply, provided that the value of those incidental services does not exceed the
               value of the product itself.</p>
            <p class="- topic/p ">“Steel” means an alloy that includes at least 50 percent
               iron, between 0.02 and 2 percent carbon, and may include other elements.</p>
            <p id="tUMpNp" class="- topic/p ">“United States”
means the 50 States, the District of Columbia, and outlying areas.</p>
            <p id="smugvt" outputclass="List1" class="- topic/p ">(b) Unless otherwise specified,
this clause applies to all items in the Schedule.</p>
            <p id="nDohGz" outputclass="List1" class="- topic/p ">(c) The Contractor shall deliver under
this contract only domestic end products unless, in its offer, it
specified delivery of qualifying country end products, SC/CASA state
end products, Free Trade Agreement country end products other than Bahrainian
end products, Moroccan end products, Panamanian end products, or
Peruvian end products, or other foreign end products in the Buy
American—Free Trade Agreements—Balance of Payments Program Certificate—Alternate
II provision of the solicitation. If the Contractor certified in
its offer that it will deliver a qualifying country end product, SC/CASA
state end products, or a Free Trade Agreement country end product
other than a Bahrainian end product, a Moroccan end product, a Panamanian
end product, or a Peruvian end product, the Contractor shall deliver
a qualifying country end product, an SC/CASA state end product,
a Free Trade Agreement country end product other than a Bahrainian end
product, a Moroccan end product, a Panamanian end product, or a
Peruvian end product or, at the Contractor’s option, a domestic
end product.</p>
            <p id="SpUGtN" outputclass="List1" class="- topic/p ">(d) The contract
price does not include duty for end products or components for which
the Contractor will claim duty-free entry.</p>
            <p id="XmVwVT" outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
            <p id="fqpKEa" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">Alternate
III</i>. As prescribed in <xref href="225.1101.dita#DFARS_225.1101"
                     base="DFARS-225.1101"
                     outputclass="fm:ParaNumOnly"
                     class="- topic/xref ">225.1101</xref> (10)(i)
and (10)(i)(D), use the following clause, which adds “Canadian end
product,” “South Caucasus/Central and South Asian (SC/CASA) state,”
and “South Caucasus/Central and South Asian (SC/CASA) state end
product” to paragraph (a) and uses a different paragraph (c) than
the basic clause:</p>
            <p id="mIVuIw" outputclass="Ctr_SmCaps" class="- topic/p ">BUY AMERICAN—FREE TRADE AGREEMENTS—BALANCE OF PAYMENTS PROGRAM—ALTERNATE III (JUN
               2022)</p>
            <p id="jrSnnU" outputclass="List1" class="- topic/p ">(a) <i class="+ topic/ph hi-d/i ">Definitions.</i>As used in this
clause—</p>
            <p id="MhvoBc" class="- topic/p ">“Bahrainian end product” means an article
that—</p>
            <p id="HUPJAl" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Bahrain; or</p>
            <p id="EOLqDN" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Bahrain into a new and
               different article of commerce with a name, character, or use distinct from that of
               the article or articles from which it was transformed. The term refers to a product
               offered for purchase under a supply contract, but for purposes of calculating the
               value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p id="LWtGMH" class="- topic/p ">“Canadian end
product” means an article that—</p>
            <p id="THxkOU" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Canada; or</p>
            <p id="xOZeeD" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Canada into a new and
               different article of commerce with a name, character, or use distinct from that of
               the article or articles from which it was transformed. The term refers to a product
               offered for purchase under a supply contract, but for purposes of calculating the
               value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p id="hxTIsi" class="- topic/p ">“Commercially available off-the-shelf (COTS) item”—</p>
            <p id="avsjzI" outputclass="List2" class="- topic/p ">
               (1) Means any item of supply (including construction material) that is—</p>
            <p id="LHBXBg" outputclass="List3" class="- topic/p ">
               (i) A commercial item (as defined in paragraph (1) of the definition of
               “commercial item” in section 2.101 of the Federal Acquisition Regulation);</p>
            <p id="DOWLIr" outputclass="List3" class="- topic/p ">
               (ii) Sold in substantial quantities in the commercial marketplace; and</p>
            <p id="WaqDoA" outputclass="List3" class="- topic/p ">
               (iii) Offered to the Government, under a contract or subcontract at any
               tier, without modification, in the same form in which it is sold in the commercial
               marketplace; and</p>
            <p id="IhXIRR" outputclass="List2" class="- topic/p ">(2)
               Does not include bulk cargo, as defined in 46 U.S.C. 40102(4), such as agricultural
               products and petroleum products.</p>
            <p id="vhQYhT" class="- topic/p ">“Component”
means an article, material, or supply incorporated directly into
an end product.</p>
            <p id="QRAvcG" class="- topic/p ">“Domestic end product” means—</p>
            <p outputclass="List2" class="- topic/p ">(1) For an end product that does not
               consist wholly or predominantly of iron or steel or a combination of both—</p>
            <p id="kmkWAq" outputclass="List3" class="- topic/p ">(i) An unmanufactured end product mined or produced in the United States;
               or</p>
            <p id="yGGhQI" outputclass="List3" class="- topic/p ">(ii) An end product manufactured
in the United States if—</p>
            <p id="SzWLPD" outputclass="List4" class="- topic/p ">(A) The cost of its qualifying
               country components and its components that are mined, produced, or manufactured in
               the United States exceeds 50 percent of the cost of all its components. The cost of
               components includes transportation costs to the place of incorporation into the end
               product and U.S. duty (whether or not a duty-free entry certificate is issued). Components of unknown origin are treated as
                  foreign. Scrap generated, collected, and prepared for processing in the
               United States is considered domestic. A component is considered to have been mined,
               produced, or manufactured in the United States (regardless of its source in fact) if
               the end product in which it is incorporated is manufactured in the United States and
               the component is of a class or kind for which the Government has determined that—</p>
            <p id="CYTTVw" outputclass="List6" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(1)</i> Sufficient and
reasonably available commercial quantities of a satisfactory quality
are not mined, produced, or manufactured in the United States; or</p>
            <p id="ONopsh" outputclass="List6" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(2)</i> It is inconsistent
with the public interest to apply the restrictions of the Buy American
statute; or</p>
            <p id="TNASSa" outputclass="List4" class="- topic/p ">(B) The end product is a COTS
               item; or
            </p>
            <p outputclass="List2" class="- topic/p ">(2) For an end product that consists
               wholly or predominantly of iron or steel or a combination of both, an end product
               manufactured in the United States, if the cost of iron and steel not produced in the
               United States or a qualifying country constitutes less than 5 percent of the cost of
               all the components used in the end product (produced in the United States or a
               qualifying country means that all manufacturing processes of the iron and steel must
               take place in the United States or a qualifying country, except metallurgical
               processes involving refinement of steel additives). The cost of iron and steel not
               produced in the United States or a qualifying country includes but is not limited to
               the cost of iron or steel mill products (such as bar, billet, slab, wire, plate, or
               sheet), castings, or forgings, not produced in the United States or a qualifying
               country, utilized in the manufacture of the end product and a good faith estimate of
               the cost of all iron or steel components not produced in the United States or a
               qualifying country, excluding COTS fasteners. Iron or steel components of unknown
               origin are treated as foreign. If the end product contains multiple components, the
               cost of all the materials used in such end product is calculated in accordance with
               the explanation of cost of components in paragraph (1)(ii)(A) of this definition.</p>
            <p id="GcbuaL" class="- topic/p ">“End product” means
those articles, materials, and supplies to be acquired under this
contract for public use.</p>
            <p id="xfnIAH" class="- topic/p ">“Foreign end product”
means an end product other than a domestic end product.</p>
            <p id="qcBsMt" class="- topic/p ">“Free Trade Agreement country” means Australia,
               Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador,
               Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama, Peru,
               or Singapore.
            </p>
            <p id="eGThDt" class="- topic/p ">“Free
Trade Agreement country end product” means an article that—</p>
            <p id="KHeBcE" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of a Free Trade Agreement country; or</p>
            <p id="fJZqPZ" outputclass="List3" class="- topic/p ">(ii) In the case of an article
that consists in whole or in part of materials from another country,
has been substantially transformed in a Free Trade Agreement country
into a new and different article of commerce with a name, character, or
use distinct from that of the article or articles from which it
was transformed. The term refers to a product offered for purchase
under a supply contract, but for purposes of calculating the value
of the end product includes services (except transportation services)
incidental to its supply, provided that the value of those incidental
services does not exceed the value of the product itself.</p>
            <p id="uKhPyk" class="- topic/p ">“Moroccan end product” means an article that—</p>
            <p id="cOLlrT" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Morocco; or</p>
            <p id="vGcCuM" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Morocco into a new and
               different article of commerce with a name, character, or use distinct from that of
               the article or articles from which it was transformed. The term refers to a product
               offered for purchase under a supply contract, but for purposes of calculating the
               value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p id="mvUJfW" class="- topic/p ">“Panamanian
end product” means an article that—</p>
            <p id="osPkpQ" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Panama; or</p>
            <p id="PDWgez" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Panama into a new and
               different article of commerce with a name, character, or use distinct from that of
               the article or articles from which it was transformed. The term refers to a product
               offered for purchase under a supply contract, but for purposes of calculating the
               value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p id="TbYKAM" class="- topic/p ">“Peruvian end product” means an article that—</p>
            <p id="BXwidd" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Peru; or</p>
            <p id="ArzpKx" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Peru into a new and
               different article of commerce with a name, character, or use distinct from that of
               the article or articles from which it was transformed. The term refers to a product
               offered for purchase under a supply contract, but for purposes of calculating the
               value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p class="- topic/p ">“Predominantly of iron or steel or a combination of both”
               means that the cost of the iron and steel content exceeds 50 percent of the total
               cost of all its components. The cost of iron and steel is the cost of the iron or
               steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or
               forgings utilized in the manufacture of the product and a good faith estimate of the
               cost of iron or steel components excluding COTS fasteners.</p>
            <p id="jNWSsc" class="- topic/p ">“Qualifying
country” means a country with a reciprocal defense procurement memorandum
of understanding or international agreement with the United States
in which both countries agree to remove barriers to purchases of
supplies produced in the other country or services performed by
sources of the other country, and the memorandum or agreement complies,
where applicable, with the requirements of section 36 of the Arms
Export Control Act (22 U.S.C. 2776) and with 10 U.S.C. 2457. Accordingly, the
following are qualifying countries:</p>
            <p id="YqUbnk" class="- topic/p ">Australia</p>
            <p id="FzWIGO" class="- topic/p ">Austria</p>
            <p id="hkFSvc" class="- topic/p ">Belgium</p>
            <p id="VhDLDb" class="- topic/p ">Canada</p>
            <p id="hBSfMo" class="- topic/p ">Czech Republic</p>
            <p id="LwNLNC" class="- topic/p ">Denmark</p>
            <p id="bpAhaM" class="- topic/p ">Egypt</p>
            <p id="IYKLIk" class="- topic/p ">Estonia</p>
            <p id="nqeJkx" class="- topic/p ">Finland</p>
            <p id="PTWUtp" class="- topic/p ">France</p>
            <p id="emSkeX" class="- topic/p ">Germany</p>
            <p id="hsvoVl" class="- topic/p ">Greece</p>
            <p id="YAGboa" class="- topic/p ">Israel</p>
            <p id="YtjULK" class="- topic/p ">Italy</p>
            <p id="XUkpFX" class="- topic/p ">Japan</p>
            <p id="tjoMjH" class="- topic/p ">Latvia</p>
            <p id="aheka2lf" class="- topic/p ">
               Lithuania
            </p>
            <p id="lPuRWx" class="- topic/p ">Luxembourg</p>
            <p id="kKQJzW" class="- topic/p ">Netherlands</p>
            <p id="QBTIkE" class="- topic/p ">Norway</p>
            <p id="CiOYSK" class="- topic/p ">Poland</p>
            <p id="pwYfBt" class="- topic/p ">Portugal</p>
            <p id="jBjTqn" class="- topic/p ">Slovenia</p>
            <p id="UnthhS" class="- topic/p ">Spain</p>
            <p id="EwtZjd" class="- topic/p ">Sweden</p>
            <p id="EvpUvd" class="- topic/p ">Switzerland</p>
            <p id="SJJFNy" class="- topic/p ">Turkey</p>
            <p id="ylqpPD" class="- topic/p ">United Kingdom of Great Britain and Northern Ireland.</p>
            <p id="OIwqZy" class="- topic/p ">“Qualifying country component” means a component
mined, produced, or manufactured in a qualifying country.</p>
            <p id="raThYB" class="- topic/p ">“Qualifying country end product” means—</p>
            <p id="tPOFCz" outputclass="List2" class="- topic/p ">
               (1) An unmanufactured end product mined or produced in a qualifying country;
               or</p>
            <p id="eyBdPr" outputclass="List2" class="- topic/p ">
               (2) An end product manufactured in a qualifying country if—</p>
            <p id="CRPOXX" outputclass="List3" class="- topic/p ">
               (i) The cost of the following types of components exceeds 50 percent of the
               cost of all its components:</p>
            <p id="VMUzjo" outputclass="List4" class="- topic/p ">
               (A) Components mined, produced, or manufactured in a qualifying country.</p>
            <p id="CvJzPc" outputclass="List4" class="- topic/p ">
               (C) Components mined, produced, or manufactured in the United States.</p>
            <p id="ZyYVKP" outputclass="List4" class="- topic/p ">
               (B) Components of foreign origin of a class or kind for which the Government
               has determined that sufficient and reasonably available commercial quantities of a
               satisfactory quality are not mined, produced, or manufactured in the United States;
               or</p>
            <p id="KWBYPh" outputclass="List3" class="- topic/p ">
               (ii) The end product is a COTS item.</p>
            <p id="nbodwv" class="- topic/p ">“South Caucasus/Central and
South Asian (SC/CASA) state” means Armenia, Azerbaijan, Georgia,
Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkmenistan, or Uzbekistan.</p>
            <p id="sFkgOZ" class="- topic/p ">“South Caucasus/Central and South Asian (SC/CASA)
state end product” means an article that—</p>
            <p id="fXSnCN" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of an SC/CASA state;
               or</p>
            <p id="eXuPWO" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in an SC/CASA state into a
               new and different article of commerce with a name, character, or use distinct from
               that of the article or articles from which it was transformed. The term refers to a
               product offered for purchase under a supply contract, but for purposes of calculating
               the value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p class="- topic/p ">“Steel” means an alloy that includes at least 50 percent
               iron, between 0.02 and 2 percent carbon, and may include other elements.</p>
            <p id="zNZobb" class="- topic/p ">“United States”
means the 50 States, the District of Columbia, and outlying areas.</p>
            <p id="txBWST" outputclass="List1" class="- topic/p ">(b) Unless otherwise specified,
this clause applies to all items in the Schedule.</p>
            <p id="sllSoI" outputclass="List1" class="- topic/p ">(c) The Contractor shall deliver under
this contract only domestic end products unless, in its offer, it
specified delivery of qualifying country end products, SC/CASA state
end products, Canadian end products, or other foreign end products
in the Buy American—Free Trade Agreements—Balance of Payments Program
Certificate—Alternate III provision of the solicitation. If the
Contractor certified in its offer that it will deliver a qualifying
country end product, SC/CASA state end products, or a Canadian end
product, the Contractor shall deliver a qualifying country end product,
an SC/CASA state end product, a Canadian end product or, at the
Contractor’s option, a domestic end product.</p>
            <p id="HwOrTD" outputclass="List1" class="- topic/p ">(d) The contract price does not include
duty for end products or components for which the Contractor will
claim duty-free entry.</p>
            <p id="HCeWvx" outputclass="Endofclause" class="- topic/p ">(End
of clause)</p>
            <p id="YFxikF" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">Alternate IV</i>. As prescribed
in <xref href="225.1101.dita#DFARS_225.1101"
                     base="DFARS-225.1101"
                     outputclass="fm:ParaNumOnly"
                     class="- topic/xref ">225.1101</xref> (10)(i) and (10)(i)(E),
use the following clause, which adds “Korean end product” to paragraph
(a), and uses a different paragraph (c) than the basic clause:</p>
            <p id="zPkUNT" outputclass="Ctr_SmCaps" class="- topic/p ">BUY AMERICAN—FREE TRADE AGREEMENTS—BALANCE OF PAYMENTS PROGRAM—ALTERNATE IV (JUN
               2022)</p>
            <p id="xyMhBN" outputclass="List1" class="- topic/p ">(a) <i class="+ topic/ph hi-d/i ">Definitions.</i>As used in this
clause—</p>
            <p id="HBXZPV" class="- topic/p ">“Bahrainian end product” means an article
that—</p>
            <p id="SFJJsN" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Bahrain; or</p>
            <p id="SsNiWB" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Bahrain into a new and
               different article of commerce with a name, character, or use distinct from that of
               the article or articles from which it was transformed. The term refers to a product
               offered for purchase under a supply contract, but for purposes of calculating the
               value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p id="nAaFMW" class="- topic/p ">“Commercially
available off-the-shelf (COTS) item”—</p>
            <p id="jRdsQh" outputclass="List2" class="- topic/p ">
               (1) Means any item of supply (including construction material) that is—</p>
            <p id="zFkaTS" outputclass="List3" class="- topic/p ">
               (i) A commercial item (as defined in paragraph (1) of the definition of
               “commercial item” in section 2.101 of the Federal Acquisition Regulation);</p>
            <p id="zYDJNB" outputclass="List3" class="- topic/p ">
               (ii) Sold in substantial quantities in the commercial marketplace; and</p>
            <p id="pYpHzy" outputclass="List3" class="- topic/p ">
               (iii) Offered to the Government, under a contract or subcontract at any
               tier, without modification, in the same form in which it is sold in the commercial
               marketplace; and</p>
            <p id="QSMVWs" outputclass="List2" class="- topic/p ">
               (2) Does not include bulk cargo, as defined in 46 U.S.C. 40102(4), such as
               agricultural products and petroleum products.</p>
            <p id="MZVQsW" class="- topic/p ">“Component”
means an article, material, or supply incorporated directly into
an end product.</p>
            <p id="khMtQq" class="- topic/p ">“Domestic end product” means—</p>
            <p outputclass="List2" class="- topic/p ">(1) For an end product that does not
               consist wholly or predominantly of iron or steel or a combination of both—]</p>
            <p id="AotcQn" outputclass="List3" class="- topic/p ">(i) An unmanufactured end product mined or produced in the United States; or</p>
            <p id="MOVmcC" outputclass="List3" class="- topic/p ">(ii) An end product manufactured
in the United States if—</p>
            <p id="hagxDL" outputclass="List4" class="- topic/p ">(A) The cost of its qualifying
               country components and its components that are mined, produced, or manufactured in
               the United States exceeds 50 percent of the cost of all its components. The cost of
               components includes transportation costs to the place of incorporation into the end
               product and U.S. duty (whether or not a duty-free entry certificate is issued). Components of unknown origin are treated as
                  foreign. Scrap generated, collected, and prepared for processing in the
               United States is considered domestic. A component is considered to have been mined,
               produced, or manufactured in the United States (regardless of its source in fact) if
               the end product in which it is incorporated is manufactured in the United States and
               the component is of a class or kind for which the Government has determined that—</p>
            <p id="LEktOP" outputclass="List6" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(1)</i> Sufficient and
reasonably available commercial quantities of a satisfactory quality
are not mined, produced, or manufactured in the United States; or</p>
            <p id="NMfXuv" outputclass="List6" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(2)</i> It is inconsistent
with the public interest to apply the restrictions of the Buy American
statute; or</p>
            <p id="SukLJy" outputclass="List4" class="- topic/p ">(B) The end product is a COTS
               item; or
            </p>
            <p outputclass="List2" class="- topic/p ">(2) For an end product that consists
               wholly or predominantly of iron or steel or a combination of both, an end product
               manufactured in the United States, if the cost of iron and steel not produced in the
               United States or a qualifying country constitutes less than 5 percent of the cost of
               all the components used in the end product (produced in the United States or a
               qualifying country means that all manufacturing processes of the iron or steel must
               take place in the United States or a qualifying country, except metallurgical
               processes involving refinement of steel additives). The cost of iron and steel not
               produced in the United States or a qualifying country includes but is not limited to
               the cost of iron or steel mill products (such as bar, billet, slab, wire, plate, or
               sheet), castings, or forgings, not produced in the United States or a qualifying
               country, utilized in the manufacture of the end product and a good faith estimate of
               the cost of all iron or steel components not produced in the United States or a
               qualifying country, excluding COTS fasteners. Iron or steel components of unknown
               origin are treated as foreign. If the end product contains multiple components, the
               cost of all the materials used in such end product is calculated in accordance with
               the explanation of cost of components in paragraph (1)(ii)(A) of this definition.</p>
            <p id="tOIEsy" class="- topic/p ">“End product” means
those articles, materials, and supplies to be acquired under this
contract for public use.</p>
            <p id="zlRqTw" class="- topic/p ">“Foreign end product”
means an end product other than a domestic end product.</p>
            <p id="ffMaGC" class="- topic/p ">“Free Trade Agreement country” means Australia,
               Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador,
               Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama, Peru,
               or Singapore.
            </p>
            <p id="UbcvVA" class="- topic/p ">“Free
Trade Agreement country end product” means an article that—</p>
            <p id="uTjRZu" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of a Free Trade Agreement
               country; or</p>
            <p id="IqNEEm" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in a Free Trade Agreement
               country into a new and different article of commerce with a name, character, or use
               distinct from that of the article or articles from which it was transformed. The term
               refers to a product offered for purchase under a supply contract, but for purposes of
               calculating the value of the end product includes services (except transportation
               services) incidental to its supply, provided that the value of those incidental
               services does not exceed the value of the product itself.</p>
            <p id="ggNtOS" class="- topic/p ">“Korean end product” means an article that—</p>
            <p id="TxJEGc" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Korea; or</p>
            <p id="KRVwdz" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Korea (Republic of) into
               a new and different article of commerce with a name, character, or use distinct from
               that of the article or articles from which it was transformed. The term refers to a
               product offered for purchase under a supply contract, but for purposes of calculating
               the value of the end product, includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p id="DJqUEV" class="- topic/p ">“Moroccan
end product” means an article that—</p>
            <p id="cDNXMZ" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Morocco; or</p>
            <p id="rwugUx" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Morocco into a new and
               different article of commerce with a name, character, or use distinct from that of
               the article or articles from which it was transformed. The term refers to a product
               offered for purchase under a supply contract, but for purposes of calculating the
               value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p id="soLWgB" class="- topic/p ">“Panamanian end product” means an article that—</p>
            <p id="QeuZHa" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Panama; or</p>
            <p id="JACoQc" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Panama into a new and
               different article of commerce with a name, character, or use distinct from that of
               the article or articles from which it was transformed. The term refers to a product
               offered for purchase under a supply contract, but for purposes of calculating the
               value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p id="uPeKaF" class="- topic/p ">“Peruvian end
product” means an article that—</p>
            <p id="VUjKDw" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Peru; or</p>
            <p id="sViucg" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Peru into a new and
               different article of commerce with a name, character, or use distinct from that of
               the article or articles from which it was transformed. The term refers to a product
               offered for purchase under a supply contract, but for purposes of calculating the
               value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p class="- topic/p ">“Predominantly of iron or steel or a combination of both”
               means that the cost of the iron and steel content exceeds 50 percent of the total
               cost of all its components. The cost of iron and steel is the cost of the iron or
               steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or
               forgings utilized in the manufacture of the product and a good faith estimate of the
               cost of iron or steel components excluding COTS fasteners.</p>
            <p id="AyLZXq" class="- topic/p ">“Qualifying country” means a country with a reciprocal
defense procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove barriers
to purchases of supplies produced in the other country or services
performed by sources of the other country, and the memorandum or
agreement complies, where applicable, with the requirements of section
36 of the Arms Export Control Act (22 U.S.C. 2776) and with 10 U.S.C.
2457. Accordingly, the following are qualifying countries:</p>
            <p id="XwHlBW" class="- topic/p ">Australia</p>
            <p id="YbtPYe" class="- topic/p ">Austria</p>
            <p id="icZNxB" class="- topic/p ">Belgium</p>
            <p id="JucGlL" class="- topic/p ">Canada</p>
            <p id="RtUMFf" class="- topic/p ">Czech
Republic</p>
            <p id="hKumYW" class="- topic/p ">Denmark</p>
            <p id="Axcpwq" class="- topic/p ">Egypt</p>
            <p id="ewJnSk" class="- topic/p ">Estonia</p>
            <p id="OzpPEk" class="- topic/p ">Finland</p>
            <p id="gwFWyR" class="- topic/p ">France</p>
            <p id="RwMRnh" class="- topic/p ">Germany</p>
            <p id="NNzAla" class="- topic/p ">Greece</p>
            <p id="uObzAr" class="- topic/p ">Israel</p>
            <p id="OWvyRo" class="- topic/p ">Italy</p>
            <p id="yIVTve" class="- topic/p ">Japan</p>
            <p id="aUOhUh" class="- topic/p ">Latvia</p>
            <p id="p3y82sxs" class="- topic/p ">
               Lithuania
            </p>
            <p id="hUjPhd" class="- topic/p ">Luxembourg</p>
            <p id="RbLPIV" class="- topic/p ">Netherlands</p>
            <p id="kPQrqN" class="- topic/p ">Norway</p>
            <p id="qCaOAj" class="- topic/p ">Poland</p>
            <p id="fMFXiE" class="- topic/p ">Portugal</p>
            <p id="uHbroN" class="- topic/p ">Slovenia</p>
            <p id="ebGddG" class="- topic/p ">Spain</p>
            <p id="Cdeeoo" class="- topic/p ">Sweden</p>
            <p id="UvmQcZ" class="- topic/p ">Switzerland</p>
            <p id="xtEdRd" class="- topic/p ">Turkey</p>
            <p id="cXxPIj" class="- topic/p ">United Kingdom of Great Britain and Northern Ireland.</p>
            <p id="ChabXJ" class="- topic/p ">“Qualifying country component” means a component
mined, produced, or manufactured in a qualifying country.</p>
            <p id="EhWtJB" class="- topic/p ">“Qualifying country end product” means—</p>
            <p id="hYaOPk" outputclass="List2" class="- topic/p ">
               (1) An unmanufactured end product mined or produced in a qualifying country;
               or</p>
            <p id="PBqFCE" outputclass="List2" class="- topic/p ">
               (2) An end product manufactured in a qualifying country if—</p>
            <p id="sNIjbM" outputclass="List3" class="- topic/p ">
               (i) The cost of the following types of components exceeds 50 percent of the
               cost of all its components:</p>
            <p id="JBIrJi" outputclass="List4" class="- topic/p ">
               (A) Components mined, produced, or manufactured in a qualifying country.</p>
            <p id="vFTsjZ" outputclass="List4" class="- topic/p ">
               (B) Components mined, produced, or manufactured in the United States.</p>
            <p id="pssDQg" outputclass="List4" class="- topic/p ">
               (C) Components of foreign origin of a class or kind for which the Government
               has determined that sufficient and reasonably available commercial quantities of a
               satisfactory quality are not mined, produced, or manufactured in the United States.
                  Components of unknown origin are treated as
                  foreign; or</p>
            <p id="eWSuOK" outputclass="List3" class="- topic/p ">
               (ii) The end product is a COTS item.</p>
            <p class="- topic/p ">“Steel” means an alloy that includes at least 50 percent
               iron, between 0.02 and 2 percent carbon, and may include other elements.</p>
            <p id="YkELSp" class="- topic/p ">“United States” means the 50
States, the District of Columbia, and outlying areas.</p>
            <p id="HlJmto" outputclass="List1" class="- topic/p ">(b) Unless otherwise specified,
this clause applies to all items in the Schedule.</p>
            <p id="gJjUFR" outputclass="List1" class="- topic/p ">(c) The Contractor shall deliver under
this contract only domestic end products unless, in its offer, it
specified delivery of qualifying country end products, Free Trade
Agreement country end products other than Bahrainian end products,
Korean end products, Moroccan end products, Panamanian end products,
or Peruvian end products, or other foreign end products in the Buy
American—Free Trade Agreements—Balance of Payments Program Certificate—Alternate
IV provision of the solicitation. If the Contractor certified in
its offer that it will deliver a qualifying country end product
or a Free Trade Agreement country end product other than a Bahrainian
end product, a Korean end product, a Moroccan end product, a Panamanian
end product, or a Peruvian end product, the Contractor shall deliver
a qualifying country end product, a Free Trade Agreement country
end product other than a Bahrainian end product, a Korean end product,
a Moroccan end product, a Panamanian end product, or a Peruvian
end product, or, at the Contractor’s option, a domestic end product.</p>
            <p id="dDdcCs" outputclass="List1" class="- topic/p ">(d) The contract price does
not include duty for end products or components for which the Contractor
will claim duty-free entry.</p>
            <p id="nZMdXQ" outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
            <p id="ATXIKp" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">Alternate
V</i>. As prescribed in <xref href="225.1101.dita#DFARS_225.1101"
                     base="DFARS-225.1101"
                     outputclass="fm:ParaNumOnly"
                     class="- topic/xref ">225.1101</xref> (10)(i)
and (10)(i)(F), use the following clause, which adds “Korean end
product,” “South Caucasus/Central and South Asian (SC/CASA) state,”
and “South Caucasus/Central and South Asian (SC/CASA) state end
product” to paragraph (a), and uses a different paragraph (c) than
the basic clause:</p>
            <p id="EqjVDa" outputclass="Ctr_SmCaps" class="- topic/p ">BUY AMERICAN—FREE TRADE AGREEMENTS—BALANCE OF PAYMENTS PROGRAM—ALTERNATE V (JUN
               2022)</p>
            <p id="ZKwrqU" outputclass="List1" class="- topic/p ">(a) <i class="+ topic/ph hi-d/i ">Definitions.</i>As used in this
clause—</p>
            <p id="AoTpIu" class="- topic/p ">“Bahrainian end product” means an article
that—</p>
            <p id="rjhcYR" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of Bahrain; or</p>
            <p id="WDkRrI" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in Bahrain into a new and
               different article of commerce with a name, character, or use distinct from that of
               the article or articles from which it was transformed. The term refers to a product
               offered for purchase under a supply contract, but for purposes of calculating the
               value of the end product includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p id="jlkGHw" class="- topic/p ">“Commercially
available off-the-shelf (COTS) item”—</p>
            <p id="vMOCPR" outputclass="List2" class="- topic/p ">
               (1) Means any item of supply (including construction material) that is—</p>
            <p id="nZVucP" outputclass="List3" class="- topic/p ">
               (i) A commercial item (as defined in paragraph (1) of the definition of
               “commercial item” in section 2.101 of the Federal Acquisition Regulation);</p>
            <p id="RWYZlg" outputclass="List3" class="- topic/p ">
               (ii) Sold in substantial quantities in the commercial marketplace; and</p>
            <p id="aqAeBl" outputclass="List3" class="- topic/p ">
               (iii) Offered to the Government, under a contract or subcontract at any
               tier, without modification, in the same form in which it is sold in the commercial
               marketplace; and</p>
            <p id="fvLWzC" outputclass="List2" class="- topic/p ">
               (2) Does not include bulk cargo, as defined in 46 U.S.C. 40102(4), such as
               agricultural products and petroleum products.</p>
            <p id="CLmgpA" class="- topic/p ">“Component”
means an article, material, or supply incorporated directly into
an end product.</p>
            <p id="vpducG" class="- topic/p ">“Domestic end product” means—</p>
            <p outputclass="List2" class="- topic/p ">(1) For an end product that does not
               consist wholly or predominantly of iron or steel or a combination of both—</p>
            <p id="riPAbc" outputclass="List3" class="- topic/p ">(i) An unmanufactured end 
                  product mined
                or produced in the United
               States; or</p>
            <p id="TGERdV" outputclass="List3" class="- topic/p ">(ii) An end product manufactured
in the United States if—</p>
            <p id="JikPZQ" outputclass="List4" class="- topic/p ">(A) The cost of its qualifying
               country components and its components that are mined, produced, or manufactured in
               the United States exceeds 50 percent of the cost of all its components. The cost of
               components includes transportation costs to the place of incorporation into the end
               product and U.S. duty (whether or not a duty-free entry certificate is issued). Components of unknown origin are treated as
                  foreign. Scrap generated, collected, and prepared for processing in the
               United States is considered domestic. A component is considered to have been mined,
               produced, or manufactured in the United States (regardless of its source in fact) if
               the end product in which it is incorporated is manufactured in the United States and
               the component is of a class or kind for which the Government has determined that—</p>
            <p id="cUXhJR" outputclass="List5" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(1)</i> Sufficient and reasonably available commercial
               quantities of a satisfactory quality are not mined, produced, or manufactured in the
               United States; or
            </p>
            <p id="yLchvo" outputclass="List5" class="- topic/p ">
               <i class="+ topic/ph hi-d/i ">(2)</i> It is inconsistent with the public interest to
               apply the restrictions of the Buy American statute; or</p>
            <p id="vusxqN" outputclass="List4" class="- topic/p ">(B) The end product is a COTS
               item; or
            </p>
            <p outputclass="List2" class="- topic/p ">(2) For an end product that consists wholly or predominantly of
               iron or steel or a combination of both, an end product manufactured in the United
               States, if the cost of iron and steel not produced in the United States or a
               qualifying country constitutes less than 5 percent of the cost of all the components
               used in the end product (produced in the United States or a qualifying country means
               that all manufacturing processes of the iron or steel must take place in the United
               States or a qualifying country, except metallurgical processes involving refinement
               of steel additives). The cost of iron and steel not produced in the United States or
               a qualifying country includes but is not limited to the cost of iron or steel mill
               products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings,
               not produced in the United States or a qualifying country, utilized in the
               manufacture of the end product and a good faith estimate of the cost of all iron or
               steel components not produced in the United States or a qualifying country, excluding
               COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If
               the end product contains multiple components, the cost of all the materials used in
               such end product is calculated in accordance with the explanation of cost of
               components in paragraph (1)(ii)(A) of this definition.</p>
            <p id="lmtqcA" class="- topic/p ">“End product” means
those articles, materials, and supplies to be acquired under this
contract for public use.</p>
            <p id="JAvKgM" class="- topic/p ">“Foreign end product”
means an end product other than a domestic end product.</p>
            <p id="LuyiIL" class="- topic/p ">“Free Trade Agreement country” means Australia,
               Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador,
               Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Panama, Peru,
               or Singapore.</p>
            <p id="PcpTlI" class="- topic/p ">“Free
Trade Agreement country end product” means an article that—</p>
            <p id="REBgoy" outputclass="List3" class="- topic/p ">(i) Is wholly the growth,
product, or manufacture of a Free Trade Agreement country; or</p>
            <p id="lkCEIe" outputclass="List3" class="- topic/p ">(ii) In the case of an article
that consists in whole or in part of materials from another country,
has been substantially transformed in a Free Trade Agreement country
into a new and different article of commerce with a name, character, or
use distinct from that of the article or articles from which it
was transformed. The term refers to a product offered for purchase
under a supply contract, but for purposes of calculating the value
of the end product includes services (except transportation services)
incidental to its supply, provided that the value of those incidental
services does not exceed the value of the product itself.</p>
            <p id="hplUws" class="- topic/p ">“Korean end product” means an article that—</p>
            <p id="IkjFJp" outputclass="List2" class="- topic/p ">(1) Is wholly the growth, product,
               or manufacture of Korea; or</p>
            <p id="xttfZU" outputclass="List2" class="- topic/p ">(2) In the case of an article that
               consists in whole or in part of materials from another country, has been
               substantially transformed in Korea (Republic of) into a new and different article of
               commerce with a name, character, or use distinct from that of the article or articles
               from which it was transformed. The term refers to a product offered for purchase
               under a supply contract, but for purposes of calculating the value of the end
               product, includes services (except transportation services) incidental to its supply,
               provided that the value of those incidental services does not exceed the value of the
               product itself.</p>
            <p id="VVgHbr" class="- topic/p ">“Moroccan
end product” means an article that—</p>
            <p id="YoknpY" outputclass="List2" class="- topic/p ">(1) Is wholly the growth, product,
               or manufacture of Morocco; or</p>
            <p id="dmxxTL" outputclass="List2" class="- topic/p ">(2) In the case of an article that
               consists in whole or in part of materials from another country, has been
               substantially transformed in Morocco into a new and different article of commerce
               with a name, character, or use distinct from that of the article or articles from
               which it was transformed. The term refers to a product offered for purchase under a
               supply contract, but for purposes of calculating the value of the end product
               includes services (except transportation services) incidental to its supply, provided
               that the value of those incidental services does not exceed the value of the product
               itself.</p>
            <p id="NONMXr" class="- topic/p ">“Panamanian end product” means an article that—</p>
            <p id="RCGVQZ" outputclass="List2" class="- topic/p ">(1) Is wholly the growth, product,
               or manufacture of Panama; or</p>
            <p id="NcorxL" outputclass="List2" class="- topic/p ">(2) In the case of an article that
               consists in whole or in part of materials from another country, has been
               substantially transformed in Panama into a new and different article of commerce with
               a name, character, or use distinct from that of the article or articles from which it
               was transformed. The term refers to a product offered for purchase under a supply
               contract, but for purposes of calculating the value of the end product includes
               services (except transportation services) incidental to its supply, provided that the
               value of those incidental services does not exceed the value of the product
               itself.</p>
            <p id="pOwzwd" class="- topic/p ">“Peruvian end
product” means an article that—</p>
            <p id="EpVWuO" outputclass="List2" class="- topic/p ">(1) Is wholly the growth, product,
               or manufacture of Peru; or</p>
            <p id="lfqpbd" outputclass="List2" class="- topic/p ">(2) In the case of an article that
               consists in whole or in part of materials from another country, has been
               substantially transformed in Peru into a new and different article of commerce with a
               name, character, or use distinct from that of the article or articles from which it
               was transformed. The term refers to a product offered for purchase under a supply
               contract, but for purposes of calculating the value of the end product includes
               services (except transportation services) incidental to its supply, provided that the
               value of those incidental services does not exceed the value of the product
               itself.</p>
            <p class="- topic/p ">“Predominantly of iron or steel or a combination of both”
               means that the cost of the iron and steel content exceeds 50 percent of the total
               cost of all its components. The cost of iron and steel is the cost of the iron or
               steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or
               forgings utilized in the manufacture of the product and a good faith estimate of the
               cost of iron or steel components excluding COTS fasteners.</p>
            <p id="YNoShe" class="- topic/p ">“Qualifying country” means a country with a reciprocal
defense procurement memorandum of understanding or international agreement
with the United States in which both countries agree to remove barriers
to purchases of supplies produced in the other country or services
performed by sources of the other country, and the memorandum or
agreement complies, where applicable, with the requirements of section
36 of the Arms Export Control Act (22 U.S.C. 2776) and with 10 U.S.C.
2457. Accordingly, the following are qualifying countries:</p>
            <p id="mkhDAG" class="- topic/p ">Australia</p>
            <p id="LSTill" class="- topic/p ">Austria</p>
            <p id="mkCoCF" class="- topic/p ">Belgium</p>
            <p id="PXABFo" class="- topic/p ">Canada</p>
            <p id="UlAjKI" class="- topic/p ">Czech
Republic</p>
            <p id="xnsMBh" class="- topic/p ">Denmark</p>
            <p id="AytSQQ" class="- topic/p ">Egypt</p>
            <p id="dZHbBH" class="- topic/p ">Estonia</p>
            <p id="uAJUqw" class="- topic/p ">Finland</p>
            <p id="SXDHjU" class="- topic/p ">France</p>
            <p id="kJYtRo" class="- topic/p ">Germany</p>
            <p id="gKirQl" class="- topic/p ">Greece</p>
            <p id="RKZQJv" class="- topic/p ">Israel</p>
            <p id="BinLMC" class="- topic/p ">Italy</p>
            <p id="JaGpmA" class="- topic/p ">Japan</p>
            <p id="YLPRii" class="- topic/p ">Latvia</p>
            <p id="ilcw0qh" class="- topic/p ">
               Lithuania
            </p>
            <p id="oQBqun" class="- topic/p ">Luxembourg</p>
            <p id="kAyNAE" class="- topic/p ">Netherlands</p>
            <p id="rbCDZo" class="- topic/p ">Norway</p>
            <p id="qunSqG" class="- topic/p ">Poland</p>
            <p id="RPqxVA" class="- topic/p ">Portugal</p>
            <p id="jijztr" class="- topic/p ">Slovenia</p>
            <p id="StnmED" class="- topic/p ">Spain</p>
            <p id="LbluKg" class="- topic/p ">Sweden</p>
            <p id="muYkoM" class="- topic/p ">Switzerland</p>
            <p id="qTONtJ" class="- topic/p ">Turkey</p>
            <p id="VnXqME" class="- topic/p ">United Kingdom of Great Britain and Northern Ireland.</p>
            <p id="bMkXcQ" class="- topic/p ">“Qualifying country component” means a component
mined, produced, or manufactured in a qualifying country.</p>
            <p id="uAdKyJ" class="- topic/p ">“Qualifying country end product” means—</p>
            <p id="LvgOUb" outputclass="List2" class="- topic/p ">
               (1) An unmanufactured end product mined or produced in a qualifying country;
               or</p>
            <p id="qCsiCB" outputclass="List2" class="- topic/p ">
               (2) An end product manufactured in a qualifying country if—</p>
            <p id="wkSXoC" outputclass="List3" class="- topic/p ">
               (i) The cost of the following types of components exceeds 50 percent of the
               cost of all its components:</p>
            <p id="nyhJhz" outputclass="List4" class="- topic/p ">
               (A) Components mined, produced, or manufactured in a qualifying country.</p>
            <p id="JaqLVQ" outputclass="List4" class="- topic/p ">
               (B) Components mined, produced, or manufactured in the United States.</p>
            <p id="FYwbtO" outputclass="List4" class="- topic/p ">
               (C) Components of foreign origin of a class or kind for which the Government
               has determined that sufficient and reasonably available commercial quantities of a
               satisfactory quality are not mined, produced, or manufactured in the United States.
                  Components of unknown origin are treated as
                  foreign; or</p>
            <p id="ZNGhIa" outputclass="List3" class="- topic/p ">
               (ii) The end product is a COTS item.</p>
            <p id="LcmKNp" class="- topic/p ">“South Caucasus/Central and
South Asian (SC/CASA) state” means Armenia, Azerbaijan, Georgia,
Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkmenistan, or Uzbekistan.</p>
            <p id="zSmcLw" class="- topic/p ">“South Caucasus/Central and South Asian (SC/CASA)
state end product” means an article that—</p>
            <p id="YcRBww" outputclass="List2" class="- topic/p ">
               (1) Is wholly the growth, product, or manufacture of an SC/CASA state;
               or</p>
            <p id="HkRMIf" outputclass="List2" class="- topic/p ">
               (2) In the case of an article that consists in whole or in part of materials
               from another country, has been substantially transformed in an SC/CASA state into a
               new and different article of commerce with a name, character, or use distinct from
               that of the article or articles from which it was transformed. The term refers to a
               product offered for purchase under a supply contract, but for purposes of calculating
               the value of the end product, includes services (except transportation services)
               incidental to its supply, provided that the value of those incidental services does
               not exceed the value of the product itself.</p>
            <p class="- topic/p ">“Steel” means an alloy that includes at least 50 percent
               iron, between 0.02 and 2 percent carbon, and may include other elements.</p>
            <p id="NuFPtd" class="- topic/p ">“United States”
means the 50 States, the District of Columbia, and outlying areas.</p>
            <p id="QYFAXd" outputclass="List1" class="- topic/p ">(b) Unless otherwise specified,
this clause applies to all items in the Schedule.</p>
            <p id="BKfaUI" outputclass="List1" class="- topic/p ">(c) The Contractor shall deliver under
this contract only domestic end products unless, in its offer, it
specified delivery of qualifying country end products, SC/CASA state
end products, Free Trade Agreement country end products other than Bahrainian
end products, Korean end products, Moroccan end products, Panamanian
end products, or Peruvian end products, or other foreign end products
in the Buy American—Free Trade Agreements—Balance of Payments Program
Certificate—Alternate V provision of the solicitation. If the Contractor
certified in its offer that it will deliver a qualifying country
end product, SC/CASA state end products, or a Free Trade Agreement
country end product other than a Bahrainian end product, a Korean
end product, a Moroccan end product, a Panamanian end product, or
a Peruvian end product, the Contractor shall deliver a qualifying
country end product, an SC/CASA state end product, a Free Trade
Agreement country end product other than a Bahrainian end product,
a Korean end product, a Moroccan end product, a Panamanian end product,
or a Peruvian end product or, at the Contractor’s option, a domestic
end product.</p>
            <p id="HzPuUo" outputclass="List1" class="- topic/p ">(d) The contract
price does not include duty for end products or components for which
the Contractor will claim duty-free entry.</p>
            <p id="vHhrMC" outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
         </section>
      </conbody>
   </concept>
</dita>
