252.225-7044 — Balance of Payments Program—Construction Material.

DFARS 252.225-7044 — Balance of Payments Program—Construction Material.. This clause is part of the Defense Federal Acquisition Regulation Supplement and applies specifically to Department of Defense contracts.

252.225-7044 Balance of Payments Program—Construction Material. Basic. As prescribed in 225.7503(a) and (a)(1), use the following clause: Balance of Payments Program—Construction Material—Basic (FEB 2024) (a) Definitions. As used in this clause— Commercially available off-the-shelf (COTS) item — (1) Means any item of supply (including construction material) that is— (i) A commercial product (as defined in paragraph (1) of the definition of “commercial product” in section 2.101 of the Federal Acquisition Regulation (FAR); (ii) Sold in substantial quantities in the commercial marketplace; and (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 (2) Does not include bulk cargo, as defined in 46 U.S.C. 40102(4), such as agricultural products and petroleum products. Component means any article, material, or supply incorporated directly into construction material. Construction material means an article, material, or supply brought to the construction site by the Contractor or a subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material. Cost of components means— (1) For components purchased by the Contractor, the acquisition cost, including transportation costs to the place of incorporation into the end product (whether or not such costs are paid to a domestic firm), and any

• Components of unknown origin are treated as foreign; or (B) The construction material is a COTS item; or (2) For construction material that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the United States if the cost of iron and steel not produced in the United States (excluding fasteners) as estimated in good faith by the contractor, constitutes less than 5 percent of the cost of all the components used in such construction material (produced in the United States means that all manufacturing processes of the iron or steel must take place in the United States, except metallurgical processes involving refinement of steel additives).
• The Contractor shall use only domestic construction material in performing this contract, except for— (1) Construction material valued at or below the simplified acquisition threshold in part 2 of the Federal Acquisition Regulation; (2) Information technology that is a commercial product; or (3) The construction material or components listed by the Government as follows: [ Contracting Officer to list applicable excepted materials or indicate “none” ] (End of clause) Alternate I.
• The Contractor shall use only domestic construction material or SC/CASA state construction material in performing this contract, except for— (1) Construction material valued at or below the simplified acquisition threshold in part 2 of the Federal Acquisition Regulation; (2) Information technology that is a commercial product; or (3) The construction material or components listed by the Government as follows: [ Contracting Officer to list applicable excepted materials or indicate “none” ].
• The Contractor shall use only domestic construction material in performing this contract, except for— (1) Construction material valued at or below the simplified acquisition threshold in FAR part 2; (2) Information technology that is a commercial product; or (3) The construction material or components listed by the Government as follows: [Contracting Officer to list applicable excepted materials or indicate “none”].
• The Contractor shall use only domestic construction material or SC/CASA state construction material in performing this contract, except for— (1) Construction material valued at or below the simplified acquisition threshold in FAR part 2; (2) Information technology that is a commercial product; or (3) The construction material or components listed by the Government as follows: [Contracting Officer to list applicable excepted materials or indicate “none”].