252.225-7032 Waiver of United Kingdom Levies—Evaluation of offers.
Prescription and Applicability
DFARS Prescription, 225.1101(7)
(7) Use the provision at 252.225-7032, Waiver of United Kingdom Levies - Evaluation of Offers, in solicitations if a U.K. firm is expected to -
(i) Submit an offer; or
(ii) Receive a subcontract exceeding $1 million.
(8) Use the clause at 252.225-7033, Waiver of United Kingdom Levies, in solicitations and contracts if a U.K. firm is expected to -
(i) Submit an offer; or
(ii) Receive a subcontract exceeding $1 million.
(9) Use the basic or an alternate of the provision at 252.225-7035, Buy American--Free Trade Agreements--Balance of Payments Program Certificate, instead of the provision at FAR 52.225-4, Buy American--Free Trade Agreements--Israeli Trade Act Certificate, in solicitations, including solicitations using FAR part 12 procedures for the acquisition of commercial products and commercial services,that include the basic or an alternate of the clause at 252.225-7036, Buy American--Free Trade Agreements--Balance of Payments Program.
(i) Use the basic provision in solicitations when the basic or alternate VI of the clause at 252.225-7036 is used.
(ii) Use the alternate I provision when the solicitation includes alternate I or alternate VII of the clause at 252.225-7036.
(iii) Use the alternate II provision when the solicitation includes alternate II or alternate VIII of the clause at 252.225-7036.
(iv) Use the alternate III provision when the solicitation includes alternate III or alternate IX of the clause at 252.225-7036.
(v) Use the alternate IV provision when the solicitation includes alternate IV or alternate X of the clause at 252.225-7036.
(vi) Use the alternate V provision when the solicitation includes alternate V or alternate XI of the clause at 252.225-7036. (10)(i) Except as provided in paragraph (10)(ii) of this section, use the basic or an alternate of the clause at 252.225-7036, Buy American--Free Trade Agreements--Balance of Payments Program, instead of the clause at FAR 52.225-3, Buy American--Free Trade Agreements-Israeli Trade Act, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial products and commercial services,for the items listed at 225.401-70, when the estimated value is less than $174,000, unless an exception at FAR 25.401 or 225.401 applies. (A) Use the basic clause in solicitations and contracts when the estimated value equals or exceeds $100,000, but is less than $174,000, except if the acquisition is of end products in support of operations in Afghanistan. (B) Use the alternate I clause in solicitations and contracts when the estimated value is less than $102,280, except if the acquisition is of end products in support of operations in Afghanistan. (C) Use the alternate II clause in solicitations and contracts when the estimated value equals or exceeds $ 100,000 but is less than $174,000, and the acquisition is of end products in support of operations in Afghanistan. (D) Use the alternate III clause in solicitations and contracts when the estimated value is less than $102,280, and the acquisition is of end products in support of operations in Afghanistan.
(E) Use the alternate IV clause in solicitations and contracts when the estimated value equals or exceeds $102,280 but is less than 174,000, except if the acquisition is of end products in support of operations in Afghanistan. (F) Use the alternate V clause in solicitations and contracts when the estimated value equals or exceeds $102,280but is less than $174,000 and the acquisition is of end products in support of operations in Afghanistan. (G) Use the alternate VI clause in lieu of the basic clause in solicitations and contracts, except if the acquisition is of end products in support of operations in Afghanistan, when--
(1) The estimated value equals or exceeds $100,000 but is less than $174,000; and
(2) An alternate domestic content threshold will apply to the entire period of performance as approved by the senior procurement executive (see 225.101(d)). (H) Use the alternate VII clause in lieu of the alternate I clause in solicitations and contracts, except if the acquisition is of end products in support of operations in Afghanistan, when--
(1) The estimated value is less than $102,280; and
(2) An alternate domestic content threshold will apply to the entire period of performance as approved by the senior procurement executive (see 225.101(d)). (I) Use the alternate VIII clause in lieu of the alternate II clause in solicitations and contracts when--
(1) The estimated value equals or exceeds $100,000, but is less than $174,000;
(2) The acquisition is of end products in support of operations in Afghanistan; and
(3) An alternate domestic content threshold will apply to the entire period of performance as approved by the senior procurement executive (see 225.101(d)). (J) Use the alternate IX clause in lieu of the alternate III clause in solicitations and contracts when--
(1) The estimated value is less than $102,280;
(2) The acquisition is of end products in support of operations in Afghanistan; and
(3) An alternate domestic content threshold will apply to the entire period of performance as approved by the senior procurement executive in accordance with FAR 25.101(d). (K) Use the alternate X clause in lieu of the alternate IV clause in solicitations and contracts, except if the acquisition is of end products in support of operations in Afghanistan, when--
(1) The estimated value equals or exceeds $102,280 but is less than $174,000; and
(2) An alternate domestic content threshold will apply to the entire period of performance as approved by the senior procurement executive (see 225.101(d)). (L) Use the alternate XI clause in lieu of the alternate V clause in solicitations and contracts when--
(1) The estimated value equals or exceeds $102,280 but is less than $174,000;
(2) The acquisition is of end products in support of operations in Afghanistan; and
(3) An alternate domestic content threshold will apply to the entire period of performance as approved by the senior procurement executive (see 225.101(d)).
(ii) Do not use the basic or an alternate of the clause in paragraph (10)(i) of this section if - (A) Purchase from foreign sources is restricted (see 225.401(a)(2)), unless the contracting officer anticipates a waiver of the restriction; (B) Acquiring information technology that is a commercial product, using fiscal year 2004 or subsequent funds (section 535 of Division F of the Consolidated Appropriations Act, 2004 (Pub. L. 108-199), and the same provision in subsequent appropriations acts); or (C) Using a procedure specified in 225.7703-1(a).
(iii) The acquisition of eligible and noneligible products under the same contract may result in the application of a Free Trade Agreement to only some of the items acquired. In such case, indicate in the Schedule those items covered by the Buy American - Free Trade Agreements - Balance of Payments Program clause.
Current Text
252.225-7032 Waiver of United Kingdom Levies—Evaluation of offers.
As prescribed in 225.1101(7), use the following provision:
Waiver of United Kingdom Levies—Evaluation of Offers (APR 2003)
(a) Offered prices for contracts or subcontracts with United Kingdom (U.K.) firms may contain commercial exploitation levies assessed by the Government of the U.K. The offeror shall identify to the Contracting Officer all levies included in the offered price by describing—
(1) The name of the U.K. firm;
(2) The item to which the levy applies and the item quantity; and
(3) The amount of levy plus any associated indirect costs and profit or fee.
(b) In the event of difficulty in identifying levies included in a price from a prospective subcontractor, the offeror may seek advice through the Director of Procurement, United Kingdom Defence Procurement Office, British Embassy, 3100 Massachusetts Avenue NW., Washington, DC 20006.
(c) The U.S. Government may attempt to obtain a waiver of levies pursuant to the U.S./U.K. reciprocal waiver agreement of July 1987.
(1) If the U.K. waives levies before award of a contract, the Contracting Officer will evaluate the offer without the levy.
(2) If levies are identified but not waived before award of a contract, the Contracting Officer will evaluate the offer inclusive of the levies.
(3) If the U.K. grants a waiver of levies after award of a contract, the U.S. Government reserves the right to reduce the contract price by the amount of the levy waived plus associated indirect costs and profit or fee.
(End of provision)
[68 FR 15639, Mar. 31, 2003, as amended at 73 FR 53155, Sept. 15, 2008; 78 FR 59859, Sept. 30, 2013]
Active Class Deviations Affecting This Clause
Class Deviation 2026-O0041, DFARS RFO Implementation (Part 25)
- Status: Active
- Date Issued: 2026-02-17
- Change type: MODIFIED
- Action: Modified by RFO class deviation
Suggested Questions
You can ask your AI assistant:
- Should I include this provision in my solicitation?
- Does this clause apply to commercial acquisitions?
- Does this clause apply to R&D contracts under Part 35?
- Which alternate should I use for a multiple-award contract?
- Are there any active Class Deviations that modify this clause?
- What changed in the most recent amendment?