FAR 52.225-7, BALANCE OF PAYMENTS PROGRAM (APR 1984)
(a) This clause implements the Balance of Payments Program by
providing a preference for domestic end products or services over foreign
end products or services.
"Components," as used in this clause, means those articles, materials,
and supplies directly incorporated in to the end products.
"Domestic end product," as used in this clause, means--
An unmanufactured end product mined or produced in the United
(2) An end product manufactured in the United States, if the cost
of its components mined, produced, or manufactured in the United States
exceeds 50 percent of the cost of all its components. Components of
foreign origin of the same class or kind as those that the agency
determined are not mined, produced, or manufactured in the United States in
sufficient reasonably available commercial quantities of a satisfactory
quality shall be treated as domestic. Components of unknown origin shall
be considered foreign. Scrap generated, collected, and prepared for
processing in the United States is considered domestic.
"Domestic services," as used in this clause, means services performed
in the. United States. If services provided under a single contract are
performed both in and outside the United States, they shall be considered
domestic if 25 percent or less of their total cost is attributable to
services (including incidental supplies used in connection with these
services) performed outside the United States.
"End product," as used in this clause, means an article, material, or
supply acquired for public use under this contract.
"Foreign end product," as used in this clause, means a product other
than a domestic end product.
(b) The contractor agrees that there will be delivered under this
contract only domestic end products or services unless, in its offer, it
specified delivery of foreign end products or services in the provision
entitled "Balance of Payments Program Certificate." An offer based on
supplying a foreign end product or service, if accepted, will permit the
contractor to supply a product or service without regard to the
requirements of this clause.
(c) Offers will be evaluated in accordance with paragraph 25.303(b) of
the Federal Acquisition Regulation.
RESTRICTIONS ON CERTAIN FOREIGN PURCHASES (MAY 1992)
(a) Unless advance written approval of the Contracting Officer is
obtained, the Contractor shall not acquire for use in the performance of