Request for Quotation- RR008- Quantar Radio Repairs- EXTENDED.pdf

The United States Coast Guard has a requirement for the inspection and repair of five (5) each, Quantar Base

Station, VTS CONF units in support of its ongoing requirement for “Ready for Issue” stock parts and equipment to field units in support of U.S. Government and Coast Guard missions.

The associated North American Industrial Classification System (NAICS) code for this procurement is 811210–

Electronic and Precision Equipment Repair and Maintenance. The associated product service code is J059-

Maint/Repair/Rebuild of Equipment-Electrical and Electronic Equipment Components. THIS IS NOT A SET

ASIDE.

REQUEST FOR QUOTATION

Open Market

Firm-Fixed Price

REQUEST NUMBER:

2124404B4200RR008

CONSIGNEE AND DESTINATION:

United States Coast Guard (SFLC)

Receiving Room – BLDG. 88

2401 Hawkins Point Road

Baltimore, MD 21226

RESPONSES DUE:

1:00PM EST

10 June 2024 Extended: 11 June 2024

Product Service Code (PSC):

J059- Maint/Repair/Rebuild of Equipment-

Electrical and Electronic Equipment Components

NAICS:

811210 - Electronic and Precision Equipment

Repair and Maintenance

CONTRACTING OFFICE ADDRESS:

DHS, United States Coast Guard

C5I SERVICE CENTER

Contracting and Procurement, (CG-9142)

408 Coast Guard Dr.

Kearneysville, WV 25430-3002

Period of Performance (PoP):

To be determined

FOB:

DESTINATION

LINE

ITEM

QTY UNIT DESCRIPTION

1 5 Each Open, Inspect and Report on the following Parts: QTY 5, OEM Part Information-

National Stock # 5840-01-628-3408, OEM Part # T5365A, CG Assigned Part #

T5365A-25WATT, Part Description: QUANTAR BASE STATION, VTS CONF.

See statement of work (SOW) for detailed specifications. All items returned must follow the material and packing requirements. See Section 5 of the SOW.

2 5 Each Ship and return all repaired and BER units to the Surface Forces Logistics Center

(SLFC). All items returned must follow the material and packing requirements. See

Section 5 of the SOW for details.

Shipping must be free on board (FOB) destination CONUS (Continental U.S.).

AMLeuters Cross-Out

The purchase order resulting from this solicitation will be issued as a FIRM-FIXED price purchase order. The award will be made to the Offeror submitting the lowest priced quotation. Lowest Price will be determined by the Quoted Firm Fixed Price for Open, Inspect, and Report and Shipping. If estimated repair prices are quoted, they will not be included in the initial determination.

UNIQUE ENTITY IDENTIFIER (UEI) NUMBER, FEDERAL TAX IDENTIFICATION NUMBER, and

CAGE CODE must be included in response. All proposals submitted shall include cost breakdown, unit price, extended price, payment terms and discount offered for prompt payment.

The Government will first review the quotes for completeness/compliance (everything required to be submitted has been submitted). If a quote is found to be incomplete/non-compliant, it will be removed from the evaluation process and it will not be further evaluated. Then the Government will list the remaining quotes by price, lowest to highest, and will begin the technical quote evaluation with the lowest priced Offeror. Upon finding the

Offeror who meets the requirements listed in this RFQ (to include all attachments), the Offeror’s price will be evaluated for reasonableness.

If the first quote evaluated is technically acceptable with a price that is reasonable, evaluation will stop. If the first quote evaluated is either not technically acceptable or has a price that is not reasonable evaluation will continue. Once the lowest reasonably priced, technically acceptable quote is found evaluations will stop. Using this procedure, the Government may not evaluate all proposals/quotes.

RESPONSES to this RFQ must be forwarded to: ann.m.leuters@uscg.mil and mark.a.rushing@uscg.mil no later than 1:00PM ET, 11 June 2024.

Quote must be good for 30 calendar days after close of this solicitation and shipping must be free on board

(FOB) destination CONUS (Continental U.S.).

Late submissions will not be accepted.

This solicitation includes the Statement of Work (SOW), Provision and Clauses and the following attachments:

Attachment 1- Military Packaging and Marking Requirements

Attachment 2- Beyond Economical Repair (BER) Form_BLANK

Attachment 3- Open Inspect Report (OIR)

Attachment 4- Electronic Submission of Payment Instructions

Please be sure to acknowledge the Provisions and Clauses in your response - changes or concerns regarding specific clauses should be addressed in your response or prior to.

Contracting Officer: Mark A. Rushing, Email: Mark.A.Rushing@uscg.mil

Contract Specialist: Ann M. Leuters, Email: Ann.M.Leuters@uscg.mil mailto:ann.m.leuters@uscg.mil mailto:mark.a.rushing@uscg.mil

Statement of Work 2124404B4200RR008- Quantar Radio Repairs

Evaluation and Repair of QUANTAR Radio, Part Number: T5365A-25WATT.

1. SCOPE OF WORK:

The Coast Guard Surface Forces Logistics Center has an ongoing requirement to provide “Ready for Issue” stock parts and equipment to field units in support of U.S. Government and Coast Guard missions. This Statement of Work provides for the repair of VHF Transceiver, QUANTAR Base Station, Radio Set, T5365A-25WATT.

Work completed under this order will cover Open, inspect, initial diagnostics for each QUANTAR Radio to determine if the radio can be repaired below beyond economical repair costs. Once determined, Units shall be repaired to Original Equipment Manufacturer (OEM) standards, individually packaged, and returned FOB Destination to CG SFLC Warehouse located in Baltimore, MD 21226.

2. PLACE OF PERFORMANCE:

To Be Determined.

3. DESCRIPTION OF WORK:

A. Open and Inspect the equipment listed in Table-1 below.

B. Complete and submit an Open and Inspect Report (OIR)- Attachment 3 for each item to the COR within 10 business days of receipt of equipment.

C. Validate that the equipment is able to be economically repaired as listed in the Purchase Order that is a firm-fixed price. The Beyond Economical Repair (BER) cost is $1,250 per unit.

D. For equipment that is BER the contractor will do the following:

Submit an Open and Inspect Report (OIR)- Attachment 3 AND a BER-

Attachment 2 for each BER item to the COR within 10 days of receipt of equipment.

The Contracting officer will modify the order to decrease the units repaired (Condition Code “A”) material and units that are BER (Condition Code “H”) and decrease the total dollar value of the PR. Units that are BER, the vendor will receive an Open and Inspection fee for each unit not repaired in place of the repaired unit price.

Return the equipment as listed in paragraph 4.

E. For equipment that is able to be repaired, the contractor must provide the COR and the Contracting office an open and inspection report and a FIRM-FIXED price quote to repair the repairable items in Table-1 as follows:

NO REPAIR ACTION IS TO TAKE PLACE UNTIL A NEW CONTRACT

AND/OR MODIFICATION HAS BEEN EXECUTED BY THE

GOVERNMENT.

Repair to OEM Specifications.

Provide Cleaning, Painting, and Repair of markings.

Provide Bench/Mockup Re-Testing of each of the repaired units.

Provide Quality Inspection Report with the unit and email a copy of the report to the COR Provide new package for each unit to allow individual shipping from the

Coast Guard Inventory Control Point.

Mark all packages with the appropriate markings as listed in Section-5B or

Section-5C.

Return repaired equipment within 30 business days of receiving a new contract and/or modification funded for the repairs per the FIRM-FIXED quoted price provided by the vendor.

A FIRM-FIXED price quote for repairs must be provide within 15 days of receipt of equipment.

F. Ship all repaired and BER units to the address listed in section-5A

Table-1

National Stock Number (NSN)

OEM

Part Number

CG

Assigned Part Number Description

Number of Units

5840-01-628-3408 T5365A T5365A-

25WATT QUANTAR BASE STATION, VTS CONF 5

4. UNITS BEYOND ECONOMICAL REPAIR (BER)

The Purchase order will be reduced/adjusted to reflect each unit that was not repaired and the BER firm-fixed price will be applied to cover all fees and charges such as testing, handling, packaging, and return shipping to for each unit that was not repaired. Units not repaired must be returned as follows:

Mark the item’s packaging with Condition Code “H” with the corresponding barcode label listed in Section-5C to show the item was not serviced.

Return the unit/s to SFLC as listed in Section- 5A and in accordance with SFLC ICP Packaging Requirements.

5. SHIPPING / PACKAGING

All units must be shipped to SFLC Baltimore at the Address below in accordance with the SFLC ICP Packaging Requirements Document, see Attachment-1.

A. Surface Forces Logistics Center 2401 Hawkins Point Road Receiving Bldg. 88 Baltimore, MD 21226

B. For Units Repaired To OEM Specifications - Provide Barcode Markings on all individual Packaging for Shipment. Condition Code “A.” Units must be marked with the corresponding barcode label to the unit information containing the following:

NSN: 5840-01-628-3408

PART_NBR: T5365A-25WATT

NOUN: QUANTAR BASE STATION, VTS CONF

CONDITION CODE “A”

1 EACH

C. For Units Beyond Economical Repair - Provide Barcode Markings on all individual Packaging for Shipment of equipment that is Beyond Economical Repair with Condition Code “H.” Units must be marked with the corresponding barcode label containing the following:

NSN: 5840-01-628-3408

PART_NBR: T5365A-25WATT

NOUN: QUANTAR BASE STATION, VTS CONF

CONDITION CODE “H”

1 EACH

6. Supply Management Specialist (SMS)

Stephen R. Flanagan Email: Stephen.R.Flanagan@uscg.mil Office Phone: (571) 610-0291 Cell Phone: (757) 386-1038 (Preferred)

7. DELIVERY

All Units that are requested to be repaired or units that were not repaired due to BER are to be Delivered within 30 business days after receipt of a new contract/modification approving the repairs to the address listed above in Section-5A.

Note: Early and Partial Deliveries are Acceptable and Appreciated.

8. Important Timelines

- Vendor will have 10 business days upon receipt of units to provide OIR/BER documentation to the COR

- Vendor will have 15 business days upon receipt of the units to provide the Contracting office and COR with a FIRM-FIXED price quote for repairs

- Upon receipt of a new contract and/or modification approving funding for the repairs, the vendor will have 30 business days to return the units in accordance with the Section 5 of this SOW.

Provisions and Clauses

52.252-1 Solicitation Provisions Incorporated by Reference.

As prescribed in 52.107(a), insert the following provision:

Solicitation Provisions Incorporated by Reference (Feb 1998)

This solicitation incorporates one or more solicitation provisions by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. The offeror is cautioned that the listed provisions may include blocks that must be completed by the offeror and submitted with its quotation or offer. In lieu of submitting the full text of those provisions, the offeror may identify the provision by paragraph identifier and provide the appropriate information with its quotation or offer. Also, the full text of a solicitation provision may be accessed electronically at this/these address(es):

https://www.acquisition.gov/far/

(End of provision)

FAR

Provision No. Title Date 52.204-7 System for Award Management OCT 2018

52.204-16 Commercial and Government Entity Code Reporting AUG 2020

52.212-1 Instructions to Offerors—Commercial Products and Commercial Services SEP 2023

52.212-2 Evaluation—Commercial Products and Commercial Services NOV 2021

52.212-3

Offeror Representations and Certifications—Commercial Products and

Commercial Services JAN 2024

52.212-3-

Alternate 1

Offeror Representations and Certifications—Commercial Products and

Commercial Services--Alternate I JAN 2024

52.222-22 Previous Contracts and Compliance Reports FEB 1999

52.222-48

Exemption from Application of the Service Contract Labor Standards to

Contracts for Maintenance, Calibration, or Repair of Certain Equipment-

Certification MAY 2014

52.225-18 Place of Manufacture AUG 2018

FAR PROVISIONS

52.204-24 Representation Regarding Certain Telecommunications and Video Surveillance

Services or Equipment.

As prescribed in 4.2105(a), insert the following provision:

Representation Regarding Certain Telecommunications and Video Surveillance Services or

Equipment (Nov 2021)

The Offeror shall not complete the representation at paragraph (d)(1) of this provision if the

Offeror has represented that it "does not provide covered telecommunications equipment or services as a part of its offered products or services to the Government in the performance of any contract, subcontract, or other contractual instrument" in paragraph (c)(1) in the provision at

52.204-26, Covered Telecommunications Equipment or Services—Representation, or in paragraph (v)(2)(i) of the provision at 52.212-3, Offeror Representations and Certifications-

Commercial Products or Commercial Services. The Offeror shall not complete the representation in paragraph (d)(2) of this provision if the Offeror has represented that it "does not use covered telecommunications equipment or services, or any equipment, system, or service that uses covered telecommunications equipment or services" in paragraph (c)(2) of the provision at

52.204-26, or in paragraph (v)(2)(ii) of the provision at 52.212-3.

(a) Definitions. As used in this provision—

Backhaul, covered telecommunications equipment or services, critical technology, interconnection arrangements, reasonable inquiry, roaming, and substantial or essential component have the meanings provided in the clause 52.204-25, Prohibition on Contracting for

Certain Telecommunications and Video Surveillance Services or Equipment.

(b) Prohibition. (1) Section 889(a)(1)(A) of the John S. McCain National Defense Authorization

Act for Fiscal Year 2019 (Pub. L. 115-232) prohibits the head of an executive agency on or after

August 13, 2019, from procuring or obtaining, or extending or renewing a contract to procure or obtain, any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. Nothing in the prohibition shall be construed to—

(i) Prohibit the head of an executive agency from procuring with an entity to provide a service that connects to the facilities of a third-party, such as backhaul, roaming, or interconnection arrangements; or

(ii) Cover telecommunications equipment that cannot route or redirect user data traffic or cannot permit visibility into any user data or packets that such equipment transmits or otherwise handles.

(2) Section 889(a)(1)(B) of the John S. McCain National Defense Authorization Act for Fiscal

Year 2019 (Pub. L. 115-232) prohibits the head of an executive agency on or after August 13, 2020, from entering into a contract or extending or renewing a contract with an entity that uses any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. This prohibition applies to the use of covered telecommunications equipment or services, regardless of whether that use is in performance of work under a Federal contract. Nothing in the prohibition shall be construed to—

(i) Prohibit the head of an executive agency from procuring with an entity to provide a service that connects to the facilities of a third-party, such as backhaul, roaming, or interconnection arrangements; or

(ii) Cover telecommunications equipment that cannot route or redirect user data traffic or cannot permit visibility into any user data or packets that such equipment transmits or otherwise handles.

(c) Procedures. The Offeror shall review the list of excluded parties in the System for Award

Management (SAM) ( https://www.sam.gov) for entities excluded from receiving federal awards for "covered telecommunications equipment or services".

(d) Representation. The Offeror represents that—

(1) It □ will, □ will not provide covered telecommunications equipment or services to the

Government in the performance of any contract, subcontract or other contractual instrument resulting from this solicitation. The Offeror shall provide the additional disclosure information required at paragraph (e)(1) of this section if the Offeror responds "will" in paragraph (d)(1) of this section; and

(2) After conducting a reasonable inquiry, for purposes of this representation, the Offeror represents that—

It □ does, □ does not use covered telecommunications equipment or services, or use any equipment, system, or service that uses covered telecommunications equipment or services. The

Offeror shall provide the additional disclosure information required at paragraph (e)(2) of this section if the Offeror responds "does" in paragraph (d)(2) of this section.

(e) Disclosures. (1) Disclosure for the representation in paragraph (d)(1) of this provision. If the

Offeror has responded "will" in the representation in paragraph (d)(1) of this provision, the

Offeror shall provide the following information as part of the offer:

(i) For covered equipment—

(A) The entity that produced the covered telecommunications equipment (include entity name, unique entity identifier, CAGE code, and whether the entity was the original equipment manufacturer (OEM) or a distributor, if known);

(B) A description of all covered telecommunications equipment offered (include brand; model number, such as OEM number, manufacturer part number, or wholesaler number; and item description, as applicable); and

(C) Explanation of the proposed use of covered telecommunications equipment and any factors relevant to determining if such use would be permissible under the prohibition in paragraph

(b)(1) of this provision.

(ii) For covered services—

(A) If the service is related to item maintenance: A description of all covered telecommunications services offered (include on the item being maintained: Brand; model number, such as OEM number, manufacturer part number, or wholesaler number; and item description, as applicable); or

(B) If not associated with maintenance, the Product Service Code (PSC) of the service being provided; and explanation of the proposed use of covered telecommunications services and any factors relevant to determining if such use would be permissible under the prohibition in paragraph (b)(1) of this provision.

(2) Disclosure for the representation in paragraph (d)(2) of this provision. If the Offeror has responded "does" in the representation in paragraph (d)(2) of this provision, the Offeror shall provide the following information as part of the offer:

(i) For covered equipment—

(A) The entity that produced the covered telecommunications equipment (include entity name, unique entity identifier, CAGE code, and whether the entity was the OEM or a distributor, if known);

(B) A description of all covered telecommunications equipment offered (include brand; model number, such as OEM number, manufacturer part number, or wholesaler number; and item description, as applicable); and

(C) Explanation of the proposed use of covered telecommunications equipment and any factors relevant to determining if such use would be permissible under the prohibition in paragraph

(b)(2) of this provision.

(ii) For covered services—

(A) If the service is related to item maintenance: A description of all covered telecommunications services offered (include on the item being maintained: Brand; model number, such as OEM number, manufacturer part number, or wholesaler number; and item description, as applicable); or

(B) If not associated with maintenance, the PSC of the service being provided; and explanation of the proposed use of covered telecommunications services and any factors relevant to determining if such use would be permissible under the prohibition in paragraph (b)(2) of this provision.

52.204-26 Covered Telecommunications Equipment or Services-Representation.

As prescribed in 4.2105(c), insert the following provision:

Covered Telecommunications Equipment or Services-Representation (Oct 2020)

(a) Definitions. As used in this provision, "covered telecommunications equipment or services" and "reasonable inquiry" have the meaning provided in the clause 52.204-25, Prohibition on

Contracting for Certain Telecommunications and Video Surveillance Services or Equipment.

(b) Procedures. The Offeror shall review the list of excluded parties in the System for Award

Management (SAM) ( https://www.sam.gov) for entities excluded from receiving federal awards for "covered telecommunications equipment or services".

(c) (1) Representation. The Offeror represents that it □ does, □ does not provide covered telecommunications equipment or services as a part of its offered products or services to the

Government in the performance of any contract, subcontract, or other contractual instrument.

(2) After conducting a reasonable inquiry for purposes of this representation, the offeror represents that it □ does, □ does not use covered telecommunications equipment or services, or any equipment, system, or service that uses covered telecommunications equipment or services.

52.252-2 Clauses Incorporated by Reference.

As prescribed in 52.107(b), insert the following clause:

CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at this/these address(es):

(End of clause)

FAR CLAUSES

FAR Clause

No. Title Date 52.203-17 Contractor Employee Whistleblower Rights, DHS-USCG DEVIATION 14-

01, Revision 1

APR 2024

52.203-19

Prohibition on Requiring Certain Internal Confidentiality Agreements or

Statements JAN 2017

52.204-13 System for Award Management Maintenance OCT 2018

52.204-18 Commercial and Government Entity Code Maintenance AUG 2020

52.204-27 Prohibition on a ByteDance Covered Application JUN 2023

52.209-10 Prohibition on Contracting with Inverted Domestic Corporations NOV 2015

52.212-4

Contract Terms and Conditions—Commercial Products and Commercial

Services NOV 2023

52.212-5

Contract Terms and Conditions Required To Implement Statutes or

Executive Orders—Commercial Products and Commercial Services FEB 2024

52.219-28 Post-Award Small Business Program Rerepresentation MAR 2023

52.219-4 Notice of Price Evaluation Preference for HUBZone Small Business

Concerns

OCT 2022

52.222-21 Prohibition of Segregated Facilities APR 2015

52.222-26 Equal Opportunity SEP 2016

52.222-41 Service Contract Labor Standards AUG 2018

52.222-49 Service Contract Labor Standards—Place of Performance Unknown MAY 2014

52.222-50 Combating Trafficking in Persons NOV 2021

52.222-62 Paid Sick Leave Under Executive Order 13706 JAN 2022

52.223-17

Affirmative Procurement of EPA-Designated Items in Service and

Construction Contracts AUG 2018

52.223-18 Encouraging Contractor Policies to Ban Text Messaging While Driving JUN 2020

52.232-33 Payment by Electronic Funds Transfer—System for Award Management OCT 2018

52.232-39 Unenforceability of Unauthorized Obligations JUN 2013

52.232-40 Providing Accelerated Payments to Small Business Subcontractors NOV 2021

52.233-3 Protest after Award JUN 1985

52.233-4 Applicable Law for Breach of Contract Claim OCT 2004

52.217-8 Option to Extend Services NOV 1999

52.252-6 Authorized Deviations in Clauses NOV 2020

52.204-23 Prohibition on Contracting for Hardware, Software, and Services Developed or

Provided by Kaspersky Lab Covered Entities.

As prescribed in 4.2004 , insert the following clause:

Prohibition on Contracting for Hardware, Software, and Services Developed or Provided by

Kaspersky Lab Covered Entities. (Dec 2023)

(a) Definitions. As used in this clause—

Kaspersky Lab covered article means any hardware, software, or service that–

(1) Is developed or provided by a Kaspersky Lab covered entity;

(2) Includes any hardware, software, or service developed or provided in whole or in part by a

Kaspersky Lab covered entity; or

(3) Contains components using any hardware or software developed in whole or in part by a

Kaspersky Lab covered entity.

Kaspersky Lab covered entity means–

(1) Kaspersky Lab;

(2) Any successor entity to Kaspersky Lab, including any change in name, e.g., “Kaspersky”;

(3) Any entity that controls, is controlled by, or is under common control with Kaspersky Lab; or

(4) Any entity of which Kaspersky Lab has a majority ownership.

(b) Prohibition. Section 1634 of Division A of the National Defense Authorization Act for Fiscal

Year 2018 (Pub. L. 115-91) prohibits Government use of any Kaspersky Lab covered article.

The Contractor is prohibited from—

(1) Providing any Kaspersky Lab covered article that the Government will use on or after

October 1, 2018; and

(2) Using any Kaspersky Lab covered article on or after October 1, 2018, in the development of data or deliverables first produced in the performance of the contract.

(c) Reporting requirement.

(1) In the event the Contractor identifies a Kaspersky Lab covered article provided to the

Government during contract performance, or the Contractor is notified of such by a subcontractor at any tier or any other source, the Contractor shall report, in writing, to the

Contracting Officer or, in the case of the Department of Defense, to the website at https://dibnet.dod.mil. For indefinite delivery contracts, the Contractor shall report to the

Contracting Officer for the indefinite delivery contract and the Contracting Officer(s) for any affected order or, in the case of the Department of Defense, identify both the indefinite delivery contract and any affected orders in the report provided at https://dibnet.dod.mil.

(2) The Contractor shall report the following information pursuant to paragraph (c)(1) of this clause:

(i) Within 3 business days from the date of such identification or notification: the contract number; the order number(s), if applicable; supplier name; brand; model number (Original

Equipment Manufacturer (OEM) number, manufacturer part number, or wholesaler number);

item description; and any readily available information about mitigation actions undertaken or recommended.

(ii) Within 10 business days of submitting the report pursuant to paragraph (c)(1) of this clause:

any further available information about mitigation actions undertaken or recommended. In addition, the Contractor shall describe the efforts it undertook to prevent use or submission of a

Kaspersky Lab covered article, any reasons that led to the use or submission of the Kaspersky

Lab covered article, and any additional efforts that will be incorporated to prevent future use or submission of Kaspersky Lab covered articles.

(d) Subcontracts. The Contractor shall insert the substance of this clause, including this paragraph (d), in all subcontracts including subcontracts for the acquisition of commercial products or commercial services.

52.204-25 Prohibition on Contracting for Certain Telecommunications and Video

Surveillance Services or Equipment.

As prescribed in 4.2105(b), insert the following clause:

Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or

Equipment (Nov 2021)

(a) Definitions. As used in this clause—

Backhaul means intermediate links between the core network, or backbone network, and the small subnetworks at the edge of the network (e.g., connecting cell phones/towers to the core telephone network). Backhaul can be wireless (e.g., microwave) or wired (e.g., fiber optic, coaxial cable, Ethernet).

Covered foreign country means The People’s Republic of China.

Covered telecommunications equipment or services means–

(1) Telecommunications equipment produced by Huawei Technologies Company or ZTE

Corporation (or any subsidiary or affiliate of such entities);

(2) For the purpose of public safety, security of Government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities);

(3) Telecommunications or video surveillance services provided by such entities or using such equipment; or

(4) Telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country.

Critical technology means–

(1) Defense articles or defense services included on the United States Munitions List set forth in the International Traffic in Arms Regulations under subchapter M of chapter I of title 22, Code of Federal Regulations;

(2) Items included on the Commerce Control List set forth in Supplement No. 1 to part 774 of the Export Administration Regulations under subchapter C of chapter VII of title 15, Code of

Federal Regulations, and controlled-

(i) Pursuant to multilateral regimes, including for reasons relating to national security, chemical and biological weapons proliferation, nuclear nonproliferation, or missile technology; or

(ii) For reasons relating to regional stability or surreptitious listening;

(3) Specially designed and prepared nuclear equipment, parts and components, materials, software, and technology covered by part 810 of title 10, Code of Federal Regulations (relating to assistance to foreign atomic energy activities);

(4) Nuclear facilities, equipment, and material covered by part 110 of title 10, Code of Federal

Regulations (relating to export and import of nuclear equipment and material);

(5) Select agents and toxins covered by part 331 of title 7, Code of Federal Regulations, part 121 of title 9 of such Code, or part 73 of title 42 of such Code; or

(6) Emerging and foundational technologies controlled pursuant to section 1758 of the Export

Control Reform Act of 2018 (50 U.S.C. 4817).

Interconnection arrangements means arrangements governing the physical connection of two or more networks to allow the use of another's network to hand off traffic where it is ultimately delivered (e.g., connection of a customer of telephone provider A to a customer of telephone company B) or sharing data and other information resources.

Reasonable inquiry means an inquiry designed to uncover any information in the entity's possession about the identity of the producer or provider of covered telecommunications equipment or services used by the entity that excludes the need to include an internal or third-party audit.

Roaming means cellular communications services (e.g., voice, video, data) received from a visited network when unable to connect to the facilities of the home network either because signal coverage is too weak or because traffic is too high.

Substantial or essential component means any component necessary for the proper function or performance of a piece of equipment, system, or service.

(b) Prohibition. (1) Section 889(a)(1)(A) of the John S. McCain National Defense Authorization

Act for Fiscal Year 2019 (Pub. L. 115-232) prohibits the head of an executive agency on or after

August 13, 2019, from procuring or obtaining, or extending or renewing a contract to procure or obtain, any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. The Contractor is prohibited from providing to the Government any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system, unless an exception at paragraph (c) of this clause applies or the covered telecommunication equipment or services are covered by a waiver described in FAR 4.2104.

(2) Section 889(a)(1)(B) of the John S. McCain National Defense Authorization Act for Fiscal

Year 2019 (Pub. L. 115-232) prohibits the head of an executive agency on or after August 13, 2020, from entering into a contract, or extending or renewing a contract, with an entity that uses any equipment, system, or service that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system, unless an exception at paragraph (c) of this clause applies or the covered telecommunication equipment or services are covered by a waiver described in FAR 4.2104.

This prohibition applies to the use of covered telecommunications equipment or services, regardless of whether that use is in performance of work under a Federal contract.

(c) Exceptions. This clause does not prohibit contractors from providing—

(1) A service that connects to the facilities of a third-party, such as backhaul, roaming, or interconnection arrangements; or

(2) Telecommunications equipment that cannot route or redirect user data traffic or permit visibility into any user data or packets that such equipment transmits or otherwise handles.

(d) Reporting requirement. (1) In the event the Contractor identifies covered telecommunications equipment or services used as a substantial or essential component of any system, or as critical technology as part of any system, during contract performance, or the Contractor is notified of such by a subcontractor at any tier or by any other source, the Contractor shall report the information in paragraph (d)(2) of this clause to the Contracting Officer, unless elsewhere in this contract are established procedures for reporting the information; in the case of the Department of Defense, the Contractor shall report to the website at https://dibnet.dod.mil. For indefinite delivery contracts, the Contractor shall report to the Contracting Officer for the indefinite delivery contract and the Contracting Officer(s) for any affected order or, in the case of the

Department of Defense, identify both the indefinite delivery contract and any affected orders in the report provided at https://dibnet.dod.mil.

(2) The Contractor shall report the following information pursuant to paragraph (d)(1) of this clause

(i) Within one business day from the date of such identification or notification: the contract number; the order number(s), if applicable; supplier name; supplier unique entity identifier (if known); supplier Commercial and Government Entity (CAGE) code (if known); brand; model number (original equipment manufacturer number, manufacturer part number, or wholesaler number); item description; and any readily available information about mitigation actions undertaken or recommended.

(ii) Within 10 business days of submitting the information in paragraph (d)(2)(i) of this clause:

any further available information about mitigation actions undertaken or recommended. In addition, the Contractor shall describe the efforts it undertook to prevent use or submission of covered telecommunications equipment or services, and any additional efforts that will be incorporated to prevent future use or submission of covered telecommunications equipment or services.

(e) Subcontracts. The Contractor shall insert the substance of this clause, including this paragraph (e) and excluding paragraph (b)(2), in all subcontracts and other contractual instruments, including subcontracts for the acquisition of commercial products or commercial services.

3052.209-70 Prohibition on contracts with corporate expatriates.

As prescribed at (HSAR) 48 CFR 3009.108–7005, insert the following provision:

Prohibition on Contracts With Corporate Expatriates (JUN 2006)

(a) Prohibitions. Section 835 of the Homeland Security Act, 6 U.S.C. 395, prohibits the

Department of Homeland Security from entering into any contract with a foreign incorporated entity which is treated as an inverted domestic corporation as defined in this provision, or with any subsidiary of such an entity. The Secretary shall waive the prohibition with respect to any specific contract if the Secretary determines that the waiver is required in the interest of national security.

(b) Definitions. As used in this provision:

Expanded Affiliated Group means an affiliated group as defined in section 1504(a) of the

Internal Revenue Code of 1986 (without regard to section 1504(b) of such Code), except that section 1504 of such Code shall be applied by substituting ‘more than 50 percent’ for ‘at least 80 percent’ each place it appears.

Foreign Incorporated Entity means any entity which is, or but for subsection (b) of section 835 of

HSAR PROVISIONS AND CLAUSES

the Homeland Security Act, 6 U.S.C. 395, would be, treated as a foreign corporation for purposes of the Internal Revenue Code of 1986.

Inverted Domestic Corporation. A foreign incorporated entity shall be treated as an inverted domestic corporation if, pursuant to a plan (or a series of related transactions)—

(1) The entity completes the direct or indirect acquisition of substantially all of the properties held directly or indirectly by a domestic corporation or substantially all of the properties constituting a trade or business of a domestic partnership;

(2) After the acquisition at least 80 percent of the stock (by vote or value) of the entity is held—

(i) In the case of an acquisition with respect to a domestic corporation, by former shareholders of the domestic corporation by reason of holding stock in the domestic corporation; or

(ii) In the case of an acquisition with respect to a domestic partnership, by former partners of the domestic partnership by reason of holding a capital or profits interest in the domestic partnership;

and

(3) The expanded affiliated group which after the acquisition includes the entity does not have substantial business activities in the foreign country in which or under the law of which the entity is created or organized when compared to the total business activities of such expanded affiliated group.

Person, domestic, and foreign have the meanings given such terms by paragraphs (1), (4), and (5) of section 7701(a) of the Internal Revenue Code of 1986, respectively.

(c) Special rules. The following definitions and special rules shall apply when determining whether a foreign incorporated entity should be treated as an inverted domestic corporation.

(1) Certain stock disregarded. For the purpose of treating a foreign incorporated entity as an inverted domestic corporation these shall not be taken into account in determining ownership:

(i) stock held by members of the expanded affiliated group which includes the foreign incorporated entity; or

(ii) Stock of such entity which is sold in a public offering related to an acquisition described in section 835(b)(1) of the Homeland Security Act, 6 U.S.C. 395(b)(1).

(2) Plan deemed in certain cases. If a foreign incorporated entity acquires directly or indirectly substantially all of the properties of a domestic corporation or partnership during the 4-year period beginning on the date which is 2 years before the ownership requirements of subsection

(b)(2) are met, such actions shall be treated as pursuant to a plan.

(3) Certain transfers disregarded. The transfer of properties or liabilities (including by contribution or distribution) shall be disregarded if such transfers are part of a plan a principal purpose of which is to avoid the purposes of this section.

(d) Special rule for related partnerships. For purposes of applying section 835(b) of the

Homeland Security Act, 6 U.S.C. 395(b) to the acquisition of a domestic partnership, except as provided in regulations, all domestic partnerships which are under common control (within the meaning of section 482 of the Internal Revenue Code of 1986) shall be treated as a partnership.

(e) Treatment of Certain Rights.

(1) Certain rights shall be treated as stocks to the extent necessary to reflect the present value of all equitable interests incident to the transaction, as follows:

(i) Warrants;

(ii) Options;

(iii) Contracts to acquire stock;

(iv) Convertible debt instruments;

(v) Others similar interests.

(2) Rights labeled as stocks shall not be treated as stocks whenever it is deemed appropriate to do so to reflect the present value of the transaction or to disregard transactions whose recognition would defeat the purpose of section 835.

(f) Disclosure. The offeror under this solicitation represents that [Check one]:

_ it is not a foreign incorporated entity that should be treated as an inverted domestic corporation pursuant to the criteria of (HSAR) 48 CFR 3009.108–7000 through 3009.108–7003;

_ it is a foreign incorporated entity that should be treated as an inverted domestic corporation pursuant to the criteria of (HSAR) 48 CFR 3009.108–7000 through 3009.108–7003, but it has submitted a request for waiver pursuant to 3009.108–7004, which has not been denied; or

_ it is a foreign incorporated entity that should be treated as an inverted domestic corporation pursuant to the criteria of (HSAR) 48 CFR 3009.108–7000 through 3009.108–7003, but it plans to submit a request for waiver pursuant to 3009.108–7004.

(g) A copy of the approved waiver, if a waiver has already been granted, or the waiver request, if a waiver has been applied for, shall be attached to the bid or proposal.