USMCA Deviation

July 23, 2020

MEMORANDUM FOR U.S. SMALL BUSINESS ADMINISTRATION

SUBJECT: Class Deviation from the Federal Acquisition Regulation (FAR) to

Implement the United States-Mexico-Canada Agreement (USMCA)

Background. Enactment of the United States-Mexico-Canada Agreement

Implementation Act (Pub. L. 116-113) implemented the USMCA. The USMCA is

effective July 1, 2020. It supersedes the North American Free Trade Agreement

(NAFTA), therefore references to NAFTA are replaced with USMCA. Although Canada

is still a designated country under the World Trade Organization Government

Procurement Agreement, Canada is no longer a Free Trade Agreement country,

because chapter 13 of the USMCA (government procurement) applies only to the

United States and Mexico. Therefore, references to Canada as a Free Trade

Agreement country are deleted, including the $25,000 threshold. Mexico thresholds

remain unchanged.

Authority. The Chair of the Civilian Agency Acquisition Council (CAAC) issued CAAC

Letter 2020-05 on June 29, 2020 authorizing civilian agencies to issue this deviation

prior to amendment of the FAR. CAAC Letter 2020-05 constitutes consultation with

the Chair of the CAAC as required by FAR 1404(a)(1).

Effective Date. Effective immediately, Contracting Officers should ensure that the

changes detailed in Attachment A are reflected in clauses, solicitations and awards

when applicable. This class deviation remains in effect until the statutory change is

incorporated in the FAR, or until this class deviation is rescinded.

Attachment.

Attachment A lists the FAR citations amended by this class

deviation.

Kip A. Sheppard

Acting Senior Procurement Executive

U.S. Small Business Administration

Attachment A

Page 1 of 23

CAAC Letter 2020-05 FAR text 2020-014

United States-Mexico-Canada Agreement

Baseline is FAC 2020-06

Additions shown by: [bolded]

Deletions shown by: struck

June 22, 2020

PART 4—ADMINISTRATIVE AND INFORMATION MATTERS

* * * * *

SUBPART 4.12—REPRESENTATIONS AND CERTIFICATIONS

* * * * *

4.1202 Solicitation provision and contract clause.

(a) Insert the provision at 52.204-8, Annual Representations and Certifications, in solicitations,

except for commercial item solicitations issued under FAR part 12. The contracting officer shall

check the applicable provisions at 52.204-8(c)(2). Use the provision with its Alternate I in

solicitations issued after October 1, 2022, that will result in a multiple-award contract with more

than one North American Industry Classification System code assigned (see 19.102(b)). When

the provision at 52.204-7, System for Award Management, is included in the solicitation, do not

separately include the following representations and certifications:

* * * * *

(28) 52.225-4, Buy American—Free Trade Agreements—Israeli Trade Act Certificate (Basic,

Alternates I, II, and III).

PART 13 - SIMPLIFIED ACQUISITION PROCEDURES

* * * * *

Subpart 13.3 - Simplified Acquisition Methods

* * * * *

13.302-5 Clauses.

* * * * *

(d)* * *

Attachment A

Page 2 of 23

(3) (i) When an acquisition for supplies for use within the United States cannot be set aside for

small business concerns and trade agreements apply (see subpart 25.4), substitute the clause

at FAR 52.225-3, Buy American-Free Trade Agreements Israeli Trade Act, used with Alternate

I or Alternate II, if appropriate, instead of the clause at FAR 52.225-1, Buy American-Supplies.

* * * * *

PART 18—EMERGENCY ACQUISITIONS

* * * * *

SUBPART 18.1—AVAILABLE ACQUISITION FLEXIBILITIES

18.120 [[Reserved]] Use of patented technology under the North American Free Trade

Agreement.

Requirement to obtain authorization prior to use ogf patented technology may be

waived in circumstances of extreme urgency or national emergency. (See 27.204-

1.)

PART 22 – APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

* * * * *

SUBPART 22.15—PROHIBITION OF ACQUISITION OF PRODUCTS PRODUCED BY

FORCED OR INDENTURED CHILD LABOR

* * * * *

22.1503 Procedures for acquiring end products on the List of Products Requiring

Contractor Certification as to Forced or Indentured Child Labor.

(b) The requirements of this subpart that result from the appearance of any end product on the

List do not apply to a solicitation or contract if the identified country of origin on the List is—

(1) Canada, and the anticipated value of the acquisition is $25,000 or more (see subpart

25.4);

(2) Israel, and the anticipated value of the acquisition is $50,000 or more (see 25.406);

(3[2]) Mexico, and the anticipated value of the acquisition is $83,099 or more (see subpart

25.4); or

(4[3]) Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, [Canada,] Croatia, Cyprus, Czech

Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary,

Iceland, Ireland, Italy, Japan, Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta,

Moldova, Montenegro, Netherlands, New Zealand, Norway, Poland, Portugal, Romania,

Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or the

Attachment A

Page 3 of 23

United Kingdom and the anticipated value of the acquisition is $182,000 or more (see

25.402(b)).

* * * * *

22.1505 Solicitation provision and contract clause.

(a) * * * For solicitations estimated to equal or exceed $25,000[$50,000], the contracting officer

must exclude from the List in the solicitation end products from any countries identified at

22.1503(b), in accordance with the specified thresholds.

* * * * *

PART 25—FOREIGN ACQUISITION

* * * * *

25.003 Definitions.

As used in this part—

* * * * *

“Designated country” means any of the following countries:

(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country

(Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech

Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary,

Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania,

Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, Norway, Poland,

Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland,

Taiwan (known in the World Trade Organization as “the Separate Customs Territory of Taiwan,

Penghu, Kinmen and Matsu” (Chinese Taipei)), Ukraine, or United Kingdom);

(2) A Free Trade Agreement (FTA) country (Australia, Bahrain, Canada, Chile, Colombia,

Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of),

Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore);

* * * * *

“Free Trade Agreement country” means Australia, Bahrain, Canada, Chile, Colombia, Costa

Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico,

Morocco, Nicaragua, Oman, Panama, Peru, or Singapore.

* * * * *

SUBPART 25.4—Trade Agreements

* * * * *

Attachment A

Page 4 of 23

25.400 Scope of subpart.

(a) This subpart provides policies and procedures applicable to acquisitions that are covered

by—

(1) The World Trade Organization Government Procurement Agreement (WTO GPA), as

approved by Congress in the Uruguay Round Agreements Act (Pub. L. 103-465);

(2) Free Trade Agreements (FTA), consisting of—

(i) NAFTA (the North American Free Trade Agreement, as approved by Congress in the

North American Free Trade Agreement Implementation Act of 1993 (Pub. L. 103-182) (19

U.S.C. 3301 note))[USMCA (United States-Mexico-Canada Agreement, as approved by

Congress in the United States-Mexico-Canada Agreement Implementation Act

(Government Procurement Agreement applicable only to United States and Mexico)

(Pub. L. 116-113) (19 U.S.C. chapter 29 (sections 4501-4732))];

* * * * *

25.401 Exceptions.

* * * * *

(b) In the World Trade Organization Government Procurement Agreement (WTO GPA) and

each FTA, there is a U.S. schedule that lists services that are excluded from that agreement in

acquisitions by the United States. Acquisitions of the following services are excluded from

coverage by the U.S. schedule of the WTO GPA or an FTA as indicated in this table:

Table 1 FAR 25.401 Exceptions

# The service (Federal Service Codes from the

Federal Procurement Data

System Product/Service Code Manual are

indicated in parentheses for some services.)

WTO

GPA

AND

KOREA

FTA

Bahrain FTA,

CAFTA-DR,

Chile FTA,

Columbia FTA,

NAFTA[USMCA],

Oman FTA,

Panama FTA, and

Peru FTA

Singapore

FTA

Australia

and

Morocco

FTA

(1) All services purchased in support of military

services overseas

X X X X

(2i) Automatic data processing (ADP)

telecommunications and transmission services

(D304), except enhanced (i.e., value added)

telecommunications services

X X - -

(2ii) ADP teleprocessing and timesharing services

(D305), telecommunications network

management services (D316), automated

news services, data services or other

information services (D317), and other ADP

and telecommunications services (D399)

X X - -

Attachment A

Page 5 of 23

# The service (Federal Service Codes from the

Federal Procurement Data

System Product/Service Code Manual are

indicated in parentheses for some services.)

WTO

GPA

AND

KOREA

FTA

Bahrain FTA,

CAFTA-DR,

Chile FTA,

Columbia FTA,

NAFTA[USMCA],

Oman FTA,

Panama FTA, and

Peru FTA

Singapore

FTA

Australia

and

Morocco

FTA

2(iii) (Basic telecommunications network services

(i.e., voice telephone services, packet switched

data transmission services, circuit-switched

data transmission services, telex services,

facsimile services, and private leased circuit

services, but not information services, as

defined in 47 U.S.C. 153(24))

* * X X

(3) Dredging X X X X

(4i) Operation and management contracts of

certain Government or privately owned

facilities used for Government purposes,

including Federally Funded Research and

Development Centers

X - X -

4(ii) Operation of all Department of Defense,

Department of Energy, or the National

Aeronautics and Space

Administration facilities; and all Government-

owned research and development facilities or

Government-owned environmental laboratories

* * X * * X

(5) Research and development X X X X

(6) Transportation services (including launching

services, but not including travel agent

services)

X X X X

(7) Utility services X X X X

(8) Maintenance, repair, modification, rebuilding

and installation of equipment related to ships

(J019)

- X - X

(9) Nonnuclear ship repair

(J998)

- X - X

*NOTE 1. Acquisitions of the services listed at (2)(iii) of this table are a subset of the excluded

services at (2)(i) and (ii), and are therefore not covered under the WTO GPA.

**NOTE 2. Acquisitions of the services listed at (4)(ii) of this table are a subset of the excluded

services at (4)(i), and are therefore not covered under the WTO GPA.

25.402 General.

Attachment A

Page 6 of 23

* * * * *

(b) The value of the acquisition is a determining factor in the applicability of trade

agreements. Most of these dollar thresholds are subject to revision by the U.S. Trade

Representative approximately every 2 years. The various thresholds are summarized

as follows:

Table 2 TABLE 1 TO PARAGRAPH (b)

Trade Agreement Supply

contract

(equal to

exceeding)

Service

Contract

(equal to

exceeding)

Construction

contract

(equal to or

exceeding)

WTO GPA $182,000 $182,000 $7,008,000

FTAs: $3,099 $3,099 $7,008,000

Australia FTA 182,000 182,000 10,802,884

Bahrain FTA $3,099 $3,099 7,008,000

CAFTA-DR

(Costa Rica, Dominican Republic, El

Salvador, Guatemala, Honduras, and

Nicaragua)

$3,099 $3,099 7,008,000

Columbia FTA $3,099 $3,099 7,008,000

Korea FTA 100,000 100,000 7,008,000

Morocco FTA 182,000 182,000 7,008,000

NAFTA[USMCA]:

—Canada $3,099 $3,099 10,802,884

—Mexico $3,099 $3,099 10,802,884

Oman FTA 182,000 182,000 10,802,884

Panama FTA 182,000 182,000 7,008,000

Peru FTA 182,000 182,000 7,008,000

Attachment A

Page 7 of 23

Trade Agreement Supply

contract

(equal to

exceeding)

Service

Contract

(equal to

exceeding)

Construction

contract

(equal to or

exceeding)

Singapore FTA $3,099 $3,099 7,008,000

Isreali Trade Act 50,000 - -

* * * * *

Subpart 25.11 - Solicitation Provisions and Contract Clauses

* * * * *

25.1101 Acquisition of supplies.

The following provisions and clauses apply to the acquisition of supplies and the acquisition of

services involving the furnishing of supplies.

* * * * *

(b)(1)(i) Insert the clause at 52.225-3, Buy American—Free Trade Agreements—Israeli Trade

Act, in solicitations and contracts if—

(A) The acquisition is for supplies, or for services involving the furnishing of supplies, for use

within the United States, and the acquisition value is $25,000[$50,000] or more, but is less

than $182,000;

* * * * *

(ii) If the acquisition value is $25,000 or more but is less than $50,000, use the clause with

its Alternate I.

(iii) If the acquisition value is $50,000 or more but is less than $83,099, use the clause with

its Alternate II.

(ivii]) If the acquisition value is $83,099 or more but is less than $100,000, use the clause with

its Alternate III.

(2)(i) Insert the provision at 52.225-4, Buy American—Free Trade Agreements—Israeli Trade

Act Certificate, in solicitations containing the clause at 52.225-3.

(ii) If the acquisition value is $25,000 or more but is less than $50,000, use the provision

with its Alternate I.

(iii) If the acquisition value is $50,000 or more but is less than $83,099, use the provision

with its Alternate II.

Attachment A

Page 8 of 23

(iv[ii]) If the acquisition value is $83,099 or more, but is less than $100,000, use the provision

with its Alternate III.

* * * * *

PART 27—PATENTS, DATA, AND COPYRIGHTS

* * * * *

SUBPART 27.2—PATENTS AND COPRIGHTS

* * * * *

27.204 Patented technology under trade agreements.

27.204-1 Use of patented technology under the North American Free Trade

Agreement[United States-Mexico-Canada Agreement].

(a) The requirements of this section apply to the use of technology covered by a valid patent

when the patent holder is from a country that is a party to the North American Free Trade

Agreement (NAFTA).

(b) Article 1709(10) of NAFTA generally requires a user of technology covered by a valid

patent to make a reasonable effort to obtain authorization prior to use of the patented

technology. However, NAFTA provides that this requirement for authorization may be

waived in situations of national emergency or other circumstances of extreme urgency, or

for public noncommercial use.

North American Free Trade Act,” of December 27, 1993, waives the requirement to obtain

advance authorization for an invention used or manufactured by or for the Federal

Government. However, the patent owner shall be notified in advance whenever the agency or

its contractor knows or has reasonable grounds to know, without making a patent search, that

an invention described in and covered by a valid U.S. patent is or will be used or manufactured

without a license. In cases of national emergency or other circumstances of extreme urgency,

this notification need not be made in advance, but shall be made as soon as reasonably

practicable.

(d) The contracting officer, in consultation with the office having cognizance of patent

matters, shall ensure compliance with the notice requirements of NAFTA Article 1709(10)

and Executive Order 12889. A contract award should not be suspended pending

notification to the patent owner.

(e) Section 6(c) of Executive Order 12889 provides that the notice to the patent owner does

not constitute an admission of infringement of a valid privately-owned patent.

(f) When addressing issues regarding compensation for the use of patented technology,

Government personnel should be advised that NAFTA uses the term “adequate

remuneration.” Executive Order

Attachment A

Page 9 of 23

12889 equates “remuneration” to “reasonable and entire compensation” as used in 28 U.S.C.

1498, the statute that gives jurisdiction to the U.S. Court of Federal Claims to hear patent and

(g) When questions arise regarding the notice requirements or other matters relating to this

section [with regard to use of patented technology under the USMCA], the contracting officer

should consult with legal counsel.

27.204-2 Use of patented technology under the General Agreement on Tariffs and

Trade (GATT).

Article 31 of Annex 1C, Agreement on Trade-Related Aspects of

Intellectual Property Rights, to GATT (Uruguay Round) addresses situations where the law of a

member country allows for use of a patent without authorization, including use by the

Government.

* * * * *

PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES

* * * * *

SUBPART 52.2—TEXTS OF PROVISIONS AND CLAUSES

* * * * *

52.204-8 Annual Representations and Certifications. As prescribed in 4.1202(a), insert the

following provision:

ANNUAL REPRESENTATIONS AND CERTIFICATIONS (MAR 2020 [DATE])

* * * * *

(C)(1) * * *

(xxi) 52.225-4, Buy American-Free Trade Agreements-Israeli Trade Act Certificate. (Basic,

Alternates I, II, and III.)

This provision applies to solicitations containing the clause at 52.225-3.

(A) If the acquisition value is less than $25,000[50,000], the basic provision applies.

(B) If the acquisition value is $25,000 or more but is less than $50,000, the provision with its

Alternate I applies.

[(B)](C) If the acquisition value is $50,000 or more but is less than $83,099, the provision with

its Alternate II applies.

[(C)](D) If the acquisition value is $83,099 or more but is less than $100,000, the provision with

its Alternate III applies.

* * * * *

52.212-3 Offeror Representations and Certifications—Commercial Items.

Attachment A

Page 10 of 23

As prescribed in 12.301(b)(2), insert the following provision:

OFFEROR REPRESENTATIONS AND CERTIFICATIONS—COMMERCIAL ITEMS (JUN

2020[DATE])

* * * * *

(g)(1) Buy American—Free Trade Agreements—Israeli Trade Act

Certificate. (Applies only if the clause at FAR 52.225-3, Buy

American—Free Trade Agreements—Israeli Trade Act, is included in this solicitation.)

(i) The offeror certifies that each end product, except those listed in paragraph (g)(1)(ii) or

(g)(1)(iii) of this provision, is a domestic end product and that for other than COTS items, the

offeror has considered components of unknown origin to have been mined, produced, or

manufactured outside the United States. The terms “Bahrainian, Moroccan, Omani,

Panamanian, or Peruvian end product,” “commercially available off-the-shelf (COTS) item,”

“component,” “domestic end product,” “end product,” “foreign end product,” “Free Trade

Agreement country,” “Free Trade Agreement country end product,” “Israeli end product,” and

“United States” are defined in the clause of this solicitation entitled “Buy American—Free

Trade Agreements—Israeli Trade Act.”

(ii) The offeror certifies that the following supplies are Free Trade Agreement country end

products (other than Bahrainian, Moroccan, Omani, Panamanian, or Peruvian end products) or

Israeli end products as defined in the clause of this solicitation entitled “Buy American—Free

Trade Agreements— Israeli Trade Act”

Free Trade Agreement Country End Products (Other than Bahrainian, Moroccan, Omani,

Panamanian, or Peruvian End Products) or Israeli End Products:

Table 3

Line Item No. Country of Origin

- - -

(List as Necessary)

(iii) The offeror shall list those supplies that are foreign end products (other than those listed in

paragraph (g)(1)(ii) of this provision) as defined in the clause of this solicitation entitled “Buy

American—Free Trade Agreements—Israeli Trade Act.” The offeror shall list as other foreign

end products those end products manufactured in the United States that do not qualify as

domestic end products, i.e., an end product that is not a COTS item and does not meet the

component test in paragraph (2) of the definition of “domestic end product.”

Attachment A

Page 11 of 23

Other Foreign End Products

Table 4

Line Item No. - Country of Origin

- - -

(List as Necessary)

(iv) The Government will evaluate offers in accordance with the policies and procedures of

FAR Part 25.

(2) Buy American—Free Trade Agreements—Israeli Trade Act Certificate, Alternate I. If

Alternate I to the clause at FAR

52.225-3 is included in this solicitation, substitute the following paragraph (g)(1)(ii) for

paragraph (g)(1)(ii) of the basic provision:

(g)(1)(ii) The offeror certifies that the following supplies are

Canadian end products as defined in the clause of this solicitation entitled “Buy American—

Free Trade Agreements— Israeli Trade Act”:

Canadian End Products:

Line Item No.

(List as necessary)

(3) Buy American—Free Trade Agreements—Israeli Trade Act Certificate, Alternate II. If

Alternate II to the clause at FAR 52.225-3 is included in this solicitation, substitute the following

paragraph (g)(1)(ii) for paragraph (g)(1)(ii) of the basic provision:

(g)(1)(ii) The offeror certifies that the following supplies are Canadian end products or Israeli

end products as defined in the clause of this solicitation entitled “Buy American—Free Trade

Agreements—Israeli Trade Act”:

Canadian or Israeli End Products:

Attachment A

Page 12 of 23

Table 5

Line Item No. - Country of Origin

- - -

(List as necessary)

(4[3]) Buy American—Free Trade Agreements—Israeli Trade Act Certificate, Alternate III. If

Alternate III to the clause at FAR 52.225-3 is included in this solicitation, substitute the

following paragraph (g)(1)(ii) for paragraph (g)(1)(ii) of the basic provision:

(g)(1)(ii) The offeror certifies that the following supplies are Free Trade Agreement country end

products (other than Bahrainian, Korean, Moroccan, Omani, anamanian, or Peruvian end

products) or Israeli end products as defined in the clause of this solicitation entitled “Buy

American—Free Trade Agreements— Israeli Trade Act”:

Free Trade Agreement Country End Products (Other than Bahrainian, Korean, Moroccan,

Omani, Panamanian, or Peruvian End Products) or Israeli End Products:

Table 6

Line Item No. - Country of Origin

- - -

(List as necessary)

(5[4]) Trade Agreements Certificate. (Applies only if the clause at FAR 52.225-5, Trade

Agreements, is included in this solicitation.)

* * * * *

52.212-5 Contract Terms and Conditions Required To Implement

Statutes or Executive Orders—Commercial Items.

As prescribed in 12.301(b)(4), insert the following clause:

Attachment A

Page 13 of 23

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES

OR EXECUTIVE

ORDERS—COMMERCIAL ITEMS (JUN 2020[DATE])

* * * * *

(b) * * *

__ (28) 52.222-19, Child Labor—Cooperation with Authorities and Remedies

(JAN 2020[DATE]) (E.O. 13126).

* * *

__ (49)(i) 52.225-3, Buy American—Free Trade Agreements—

Israeli Trade Act (MAY 2014JUL 2020)(41 U.S.C. chapter 83, 19

U.S.C. 3301 note, 19 U.S.C. 2112 note, 19 U.S.C. 3805 note, 19 U.S.C. 4001 note, [19

U.S.C. chapter 29 (sections 45014732),] Pub. L. 103-182, 108-77, 108-78, 108-286,

108-302, 109-53, 109-169, 109-283, 110-138, 112-41, 112-42, and 11243.

__ (ii) Alternate I (MAY 2014) of 52.225-3.

__ (iii) Alternate II (MAY 2014[DATE]) of 52.225-3.

__ (i[ii]v) Alternate III (MAY 2014) of 52.225-3.

__ (50) 52.225-5, Trade Agreements (OCT 2019[DATE]) (19 U.S.C. 2501, et seq., 19

U.S.C. 3301 note).

* * * * *

52.222-19 Child Labor—Cooperation with Authorities and Remedies.

As prescribed in 22.1505(b), insert the following clause:

CHILD LABOR—COOPERATION WITH AUTHORITIES AND REMEDIES (JAN

2020[DATE])

(a) Applicability. This clause does not apply to the extent that the Contractor is supplying end

products mined, produced, or manufactured in—

(1) Canada, and the anticipated value of the acquisition is $25,000 or more;

(2) Israel, and the anticipated value of the acquisition is $50,000 or more;

(3[2]) Mexico, and the anticipated value of the acquisition is $83,099 or more; or

(4[3]) Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, [Canada,] Croatia, Cyprus, Czech

Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary,

Attachment A

Page 14 of 23

Iceland, Ireland, Italy, Japan, Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta,

Moldova, Montenegro, Netherlands, New Zealand, Norway, Poland, Portugal, Romania,

Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or the

United Kingdom and the anticipated value of the acquisition is $182,000 or more.

* * * * *

52.225-3 Buy American—Free Trade Agreements—Israeli Trade Act.

As prescribed in 25.1101(b)(1)(i), insert the following clause:

BUY AMERICAN—FREE TRADE AGREEMENTS—ISRAELI TRADE ACT (MAY

2014[DATE])

(a) Definitions. As used in this clause—

* * * * *

“Free Trade Agreement country” means Australia, Bahrain, Canada, Chile, Colombia, Costa

Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico,

Morocco, Nicaragua, Oman, Panama, Peru, or Singapore.

* * * * *

Alternate I [[Reserved]] (MAY 2014). As prescribed in 25.1101(b)(1)(ii), add the following

definition to paragraph (a) of the basic clause, and substitute the following paragraph (c) for

paragraph (c) of the basic clause: “Canadian end product” means an article that—

(1) Is wholly the growth, product, or manufacture of Canada; or

(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 the article, provided that the value

of those incidental services does not exceed that of the article itself.

products for supplies acquired for use in the United States. In accordance with 41 U.S.C. 1907,

the component test of the Buy American statute is waived for an end product that is a COTS

item (See 12.505(a)(1)). In addition, the Contracting Officer has determined that NAFTA

applies to this acquisition. Unless otherwise specified, NAFTA applies to all items in the

Schedule. The Contractor shall deliver under this contract only domestic end products except

to the extent that, in its offer, it specified delivery of foreign end products in the provision

entitled “Buy American—Free Trade Agreements— Israeli Trade Act Certificate.” If the

Contractor specified in its offer that the Contractor would supply a Canadian end product, then

the Contractor shall supply a Canadian end product or, at the Contractor's option, a domestic

end product.

Attachment A

Page 15 of 23

Alternate II (MAY 2014[DATE]). As prescribed in

25.1101(b)(1)(iii), add the following definition to paragraph (a) of the basic clause, and

substitute the following paragraph (c) for paragraph (c) of the basic clause:

“Canadian end product” an article that—