252.225-7032 — Waiver of United Kingdom Levies—Evaluation of offers.
Researched by the BidStride Research Team
What This Clause Requires
DFARS 252.225-7032 — Waiver of United Kingdom Levies—Evaluation of offers.. This clause is part of the Defense Federal Acquisition Regulation Supplement and applies specifically to Department of Defense contracts.
Official Regulation Text
252.225-7032 Waiver of United Kingdom Levies—Evaluation of offers. As prescribed in 225.1101(7), use the following provision: Waiver of United Kingdom Levies—Evaluation of Offers (APR 2003) (a) Offered prices for contracts or subcontracts with United Kingdom (U.K.) firms may contain commercial exploitation levies assessed by the Government of the U.K. The offeror shall identify to the Contracting Officer all levies included in the offered price by describing— (1) The name of the U.K. firm; (2) The item to which the levy applies and the item quantity; and (3) The amount of levy plus any associated indirect costs and profit or fee. (b) In the event of difficulty in identifying levies included in a price from a prospective subcontractor, the offeror may seek advice through the Director of Procurement, United Kingdom Defence Procurement Office, British Embassy, 3100 Massachusetts Avenue NW., Washington, DC 20006. (c) The U.S. Government may attempt to obtain a waiver of levies pursuant to the U.S./U.K. reciprocal waiver agreement of July 1987. (1) If the U.K. waives levies before award of a contract, the Contracting Officer will evaluate the offer without the levy. (2) If levies are identified but not waived before award of a contract, the Contracting Officer will evaluate the offer inclusive of the levies. (3) If the U.K. grants a waiver of levies after award of a contract, the U.S. Government reserves the right to reduce the contract price by the amount of the levy waived plus associated indirect costs and profit or fee. (End of provision) [68 FR 15639, Mar. 31, 2003, as amended at 73 FR 53155, Sept. 15, 2008; 78 FR 59859, Sept. 30, 2013]
Compliance Checklist
- The offeror shall identify to the Contracting Officer all levies included in the offered price by describing— (1) The name of the U.K.
Flow-Down to Subcontractors
Flow-down required
This clause must be included in subcontracts with no subcontractors where the subcontractor will perform work covered by this clause. Typically appears in contract Section Section I.
Frequently Asked Questions
DFARS 252.225-7032 (Waiver of United Kingdom Levies—Evaluation of offers.) is a Defense Federal Acquisition Regulation Supplement clause applicable to Department of Defense contracts.
DFARS 252.225-7032 is typically required in DoD contracts when the contracting officer determines it's applicable. Check Section I of your solicitation.
Flow-down requirements vary. Review the specific clause text for subcontractor applicability provisions.
This summary is for informational purposes only and reflects the BidStride Research Team's plain-English interpretation of the regulation. It is not legal advice and does not constitute an attorney-client relationship. Always consult the official Federal Acquisition Regulation (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS) text and qualified legal counsel for compliance decisions.