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A domestic end product is:
- An unmanufactured end product mined or produced in the U.S.; or
- An end product manufactured in the U.S., if the cost of its components mined, produced, or manufactured in the U.S. exceeds fifty percent of the cost of all its components. Components (i.e., articles, materials, supply incorporated directly into an end product or construction material) of foreign origin of the same class or kind as those that the Postal Service determines are not mined, produced, or manufactured in sufficient and reasonably available commercial quantities of a satisfactory quality are treated as domestic. Scrap generated, collected, and prepared for processing in the U.S. is considered domestic. Cost of components refers to:
- For components purchased by the supplier, the purchase cost, including transportation costs to the place of incorporation into the end product or construction material (whether or not such costs are paid to a domestic firm), and any applicable duty (whether or not a duty-free entry certificate is issued); or
- For components manufactured by the supplier, all costs associated with the manufacture of the component, including transportation costs as described above, plus allocable overhead costs, but excluding profit. Cost of components does not include any costs associated with the manufacture of the end product.
When an RFP specifies that an award will be made on a group of line items, a domestic proposal means a proposal where the proposed price of the domestic end products exceeds fifty percent of the total proposed price of the group.
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