Low RiskDFARSconstruction

252.236-7012Military construction on Kwajalein Atoll—evaluation preference.

Researched by the BidStride Research Team

What This Clause Requires

DFARS 252.236-7012 — Military construction on Kwajalein Atoll—evaluation preference.. This clause is part of the Defense Federal Acquisition Regulation Supplement and applies specifically to Department of Defense contracts.

Official Regulation Text

252.236-7012 Military construction on Kwajalein Atoll—evaluation preference. As prescribed in 236.570(c)(2), use the following provision: Military Construction on Kwajalein Atoll—Evaluation Preference (MAR 1998) (a) Definitions. As used in this provision— (1) Marshallese firm means a local firm incorporated in the Marshall Islands, or otherwise legally organized under the laws of the Marshall Islands, that— (i) Is more than 50 percent owned by citizens of the Marshall Islands; or (ii) Complies with the following: (A) The firm has done business in the Marshall Islands on a continuing basis for not less than 3 years prior to the date of issuance of this solicitation; (B) Substantially all of the firm's directors of local operations, senior staff, and operating personnel are resident in the Marshall Islands or are U.S. citizens; and (C) Most of the operating equipment and physical plant are in the Marshall Islands. (2) United States firm means a firm incorporated in the United States that complies with the following: (i) The corporate headquarters are in the United States; (ii) The firm has filed corporate and employment tax returns in the United States for a minimum of 2 years (if required), has filed State and Federal income tax returns (if required) for 2 years, and has paid any taxes due as a result of these filings; and (iii) The firm employs United States citizens in key management positions. (b) Evaluation. Offers from firms that do not qualify as United States firms or Marshallese firms will be evaluated by adding 20 percent to the offer, unless application of the factor would not result in award to a United States firm. (c) Status. The offeror is ________ a United States firm; ________ a Marshallese firm; ________ Other. (End of provision) [63 FR 11549, Mar. 9, 1998]

Source: eCFR, 48 CFR 252.236-7012 (https://www.ecfr.gov/current/title-48/section-252.236-7012)

Compliance Checklist

  • (2) United States firm means a firm incorporated in the United States that complies with the following: (i) The corporate headquarters are in the United States; (ii) The firm has filed corporate and employment tax returns in the United States for a minimum of 2 years (if required), has filed State and Federal income tax returns (if required) for 2 years, and has paid any taxes due as a result of these filings; and (iii) The firm employs United States citizens in key management positions.

Flow-Down to Subcontractors

No flow-down required

This clause applies only to the prime contract and does not need to be flowed down to subcontractors.

Frequently Asked Questions

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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.