252.225-7021  Trade Agreements.

4. Amend section 252.225-7021 as follows:

a. Remove the clause date "(JUN 2011)" and add in its place "(OCT 2011)";

b. In paragraph (a), remove the number preceding each definition, add in alphabetical order the definition for "Commercially available off-the-shelf (COTS) item", and revise the definitions for "Qualifying country" and "Qualifying country end product;

c. In Alternate I, revise the clause date, revise the introductory text, and, in paragraph (a), remove the number preceding the definition;

d. In Alternate II, remove the clause date "(DEC 2010)" and add in its place "(OCT 2011)" and, in paragraph (a), remove the numbers preceding the definitions.

252.225-7021  Trade Agreements.

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(a) * * *

Commercially available off-the-shelf (COTS) item.

(i) Means any item of supply (including construction material) that is-

(A) A commercial item (as defined in paragraph (1) of the definition of "commercial item" in section 2.101 of the Federal Acquisition Regulation);

(B) Sold in substantial quantities in the commercial marketplace; and

(C) 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

(ii) Does not include bulk cargo, as defined in section 4 of the Shipping Act of 1984 (46 U.S.C. 40102), such as agricultural products and petroleum products.

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Qualifying country means a country with a reciprocal defense procurement memorandum of understanding or international agreement with the United States in which both countries agree to remove barriers to purchases of supplies produced in the other country or services performed by sources of the other country, and the memorandum or agreement complies, where applicable, with the requirements of section 36 of the Arms Export Control Act (22 U.S.C. 2776) and with 10 U.S.C. 2457. Accordingly, the following are qualifying countries:

Australia, Austria, Belgium, Canada, Denmark, Egypt, Finland, France, Germany, Greece, Israel, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, United Kingdom of Great Britain and Northern Ireland.

Qualifying country end product means-

(i) An unmanufactured end product mined or produced in a qualifying country; or

(ii) An end product manufactured in a qualifying country if-

(A) The cost of the following types of components exceeds 50 percent of the cost of all its components:

(1) Components mined, produced, or manufactured in a qualifying country.

(2) Components mined, produced, or manufactured in the United States.

(3) Components of foreign origin of a class or kind for which the Government has determined that sufficient and reasonably available commercial quantities of a satisfactory quality are not mined, produced, or manufactured in the United States; or

(B) The end product is a COTS item.

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ALTERNATE I (OCT 2011)

As prescribed in 225.1101(6)(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:

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