[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.