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Federal Register / Vol. 86, No. 165 / Monday, August 30, 2021 / Proposed Rules
C 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. Components of unknown origin are treated as foreign;
or ii The end product is a COTS item.

3. Revise the subpart 225.1 heading to read as follows:
SUBPART 225.1BUY AMERICAN
SUPPLIES
4. Amend section 225.101 by revising paragraph aii to read as follows:

225.101

General.

a
iiA Except for an end product that consists wholly or predominantly of iron or steel or a combination of both, the cost of its U.S. and qualifying country components exceeds 55 percent of the cost of all its components. This test is applied to end products only and not to individual components.
B For an end product that consists wholly or predominantly of iron or steel or a combination of both, the cost of iron and steel not produced in the United States or a qualifying country must constitute less than 5 percent of the cost of all the components used in the end product. The cost of iron and steel not produced in the United States or a qualifying country includes but is not limited to the cost of iron or steel mill products such as bar, billet, slab, wire, plate, or sheet, castings, or forgings, not produced in the United States or a qualifying country, utilized in the manufacture of the end product and a good faith estimate of the cost of all iron or steel components not produced in the United States or a qualifying country, excluding commercially available off-the-shelf COTS fasteners. The domestic content test of the Buy American statute has not been waived for acquisitions of COTS
items in this category, except for COTS
fasteners.

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225.502

Amended
5. Amend section 225.502 by a. In paragraph ciiB, removing 225.5041 and adding PGI
225.5041 in its place;
b. In paragraph ciiD, removing 225.5042 and adding PGI
225.5042 in its place;
c. In paragraph ciiE1, removing 225.5043 and adding PGI
225.5043 in its place; and

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16:31 Aug 27, 2021

Jkt 253001

d. In paragraph ciiE2, removing 225.5044 and adding PGI
225.5044 in its place.

PART 252SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
6. Amend section 252.2257001 by a. Removing the clause date of DEC
2017 and adding DATE in its place;
b. In paragraph a i. In the definition of Commercially available off-the-shelf COTS item, redesignating paragraphs i introductory text, iA, B, and C, and ii as paragraphs 1 introductory text, 1i, ii, and iii, and 2, respectively;
ii. Revising the definition of Domestic end product;
iii. Adding, in alphabetical order, the definition of Predominantly of iron or steel or a combination of both;
iv. Revising the definition of Qualifying country end product; and v. Adding, in alphabetical order, the definition of Steel; and c. In Alternate I
i. Removing the clause date of DEC
2017 and adding DATE in its place; and ii. In paragraph a A. In the definition of Commercially available off-the-shelf COTS item, redesignating paragraphs i introductory text, iA, B, and C, and ii as paragraphs 1 introductory text, 1i, ii, and iii, and 2, respectively;
B. Revising the definition of Domestic end product;
C. Adding, in alphabetical order, the definition of Predominantly of iron or steel or a combination of both;
D. Revising the definition of Qualifying country end product;
E. In the definition of South Caucasus/Central and South Asian SC/
CASA state end product, redesignating paragraphs i and ii as paragraphs 1 and 2, respectively; and F. Adding, in alphabetical order, the definition of Steel.
The revisions and additions read as follows:

252.2257001 Buy American and Balance of Payments Program.

a
Domestic end product means 1 For an end product that does not consist wholly or predominantly of iron or steel or a combination of both i An unmanufactured end product mined or produced in the United States;
or ii An end product manufactured in the United States if
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A The cost of its qualifying country components and its components that are mined, produced, or manufactured in the United States exceeds 55 percent of the cost of all its components. The cost of components includes transportation costs to the place of incorporation into the end product and U.S. duty whether or not a duty-free entry certificate is issued. Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic. A component is considered to have been mined, produced, or manufactured in the United States regardless of its source in fact if the end product in which it is incorporated is manufactured in the United States and the component is of a class or kind for which the Government has determined that 1 Sufficient and reasonably available commercial quantities of a satisfactory quality are not mined, produced, or manufactured in the United States; or 2 It is inconsistent with the public interest to apply the restrictions of the Buy American statute; or B The end product is a COTS item;
or 2 For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of iron and steel not produced in the United States or a qualifying country constitutes less than 5 percent of the cost of all the components used in the end product produced in the United States or a qualifying country means that all manufacturing processes of the iron or steel must take place in the United States or a qualifying country, except metallurgical processes involving refinement of steel additives. The cost of iron and steel not produced in the United States or a qualifying country includes but is not limited to the cost of iron or steel mill products such as bar, billet, slab, wire, plate, or sheet, castings, or forgings, not produced in the United States or a qualifying country, utilized in the manufacture of the end product and a good faith estimate of the cost of all iron or steel components not produced in the United States or a qualifying country, excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the explanation of cost of
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