[Code of Federal Regulations]
[Title 48, Volume 3]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR225.504]

[Page 171-172]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                    CHAPTER 2--DEPARTMENT OF DEFENSE
 
PART 225--FOREIGN ACQUISITION--Table of Contents
 
       Subpart 225.5--Evaluating Foreign Offers--Supply Contracts
 
Sec. 225.504  Evaluation examples.

    (1) Example 1.
    (i) Alternate I: Duty Not Exempted for Nonqualifying Country Offers:

    Nonqualifying Country Offer (including $100 duty)........     $6,000

[[Page 172]]


    Domestic Offer...........................................      8,900
    Qualifying Country Offer.................................      9,100



Award on Domestic Offer. The 50% evaluation factor is added to the 
nonqualifying country offer, inclusive of duty, yielding an evaluated 
price of $9,000.
    (ii) Alternate II: Duty Exempted:

    Nonqualifying Country Offer (including $,1000 duty.......   $600,000
    Domestic Offer...........................................    910,000
    Qualifying Country Offer.................................    920,000



Award on Nonqualifying Country Offer. The addition of the evaluation 
factor yields an evaluated price of $900,000. Since duty is being 
exempted for nonqualifying country offers, the duty is subtracted from 
the offered price, which is awarded at $599,000.
    (2) Example 2.
    (i) Alternate I: Duty Not Exempted for Nonqualifying Country Offers:

    Nonqualifying Country Offer (including $100 duty.........     $6,000
    Domestic Offer...........................................      8,500
    Qualifying Country Offer.................................      7,800



Award on Nonqualifying Country Offer. Since the qualifying country offer 
is lower than the domestic offer, the nonqualifying country offer is 
evaluated without the factor. Since duty is not being exempted for 
nonqualifying country offers, the offer is evaluated and award is made 
at the price inclusive of duty ($6,000).
    (ii) Alternate II: Duty Exempted:

    Nonqualifying Country Offer (including $1,000 duty.......   $880,500
    Domestic Offer...........................................    950,000
    Qualifying Country Offer.................................    880,000



Award on Nonqualifying Country Offer. Again, the qualifying country 
offer is lower than the domestic offer. The nonqualifying country offer 
is, therefore, evaluated without the factor. Since duty is being 
exempted for nonqualifying country offers, the duty identified by the 
offeror is subtracted from the offered price, which is evaluated and 
awarded at $879,500.
    (3) Example 3.
    (i) Alternate I: Duty Not Exempted for Nonqualifying Country Offers:

    Nonqualifying Country Offer (including $150 duty.........     $9,600
    Qualifying Country Offer.................................      9,500



Award on Qualifying Country Offer. Since no domestic offers are 
received, the nonqualifying country offer is evaluated without the 
evaluation factor. Since duty is not being exempted and would be paid by 
the Government, the nonqualifying country offer is evaluated inclusive 
of duty.
    (ii) Alternate II: Duty Exempted:

    Nonqualifying Country Offer (including $1,000 duty.......   $880,500
    Qualifying Country Offer.................................    880,000



Award on Nonqualifying Country Offer. Since no domestic offers are 
received, the nonqualifying country offer is evaluated without the 
evaluation factor. Since duty is being exempted, duty is subtracted from 
the nonqualifying country offer, which is evaluated and awarded at 
$879,500.
    (4) Example 4.
    (i) Alternate I:

    Offer of U.S. Made End Product which is not a Domestic      $800,000
     Offer...................................................
    Domestic Offer...........................................    820,000
    Eligible Product.........................................    830,000



Award on Domestic End Product. U.S. made end products which are not also 
domestic end products are evaluated the same as nonqualifying country 
end products. Adding the 50% evaluation factor yields an evaluated price 
of $1,200,000.
    (ii) Alternate II:

    Offer of U.S. Made End Product which is not a Domestic      $800,000
     Offer...................................................
    Eligible Product.........................................    820,000
    Domestic Offer...........................................    830,000



Award on U.S. Made End Product. Adding the 50% evaluation factor to the 
U.S. made end product would not result in the award of a domestic end 
product since the eligible product, which is evaluated the same as a 
qualifying country offer, is lower. All offers are evaluated without the 
factor.