HSAR 3052.209-70 Prohibition on contracts with corporate expatriates Basic (Jun 2006)

As prescribed at (HSAR) 48 CFR 3009.108-7005, insert the provision (HSAR) 48 CFR 3052.209-70, Prohibition on Contracts with Corporate Expatriates, in all solicitations and contracts.

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 clause, 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) DefinitionsAs used in this clause:

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 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—

    (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.

      • (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

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:

    (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.

      • (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).

(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:

    (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.

      • (i) warrants;

        (ii) options;

        (iii) contracts to acquire stock;

        (iv) convertible debt instruments; and

        (v) others similar interests.

(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 3009.108-7001 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 3009.108-7001 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 3009.108-7001 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.

(End of clause)

Subcontractor ✖ 

52.203-16 Preventing Personal Conflicts of Interest.

52.209-3 First Article Approval—Contractor Testing.

52.209-4 First Article Approval—Government Testing.

52.212-3 Offeror Representations and Certifications—Commercial Items.

52.215-17 Waiver of Facilities Capital Cost of Money.

52.219-18 Notification of Competition Limited to Eligible 8(a) Concerns.

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

52.219-6 Notice of Total Small Business Set-Aside.

52.219-7 Notice of Partial Small Business Set-Aside.

52.222-36 Equal Opportunity for Workers with Disabilities.

52.225-7 Waiver of Buy American Statute for Civil Aircraft and Related Articles.

52.227-5 Waiver of Indemnity.

52.228-15 Performance and Payment Bonds—Construction.

52.228-4 Workers’ Compensation and War-Hazard Insurance Overseas.

52.232-12 Advance Payments.

52.234-4 Earned Value Management System.

52.237-8 Restriction on Severance Payments to Foreign Nationals.

52.237-9 Waiver of Limitation on Severance Payments to Foreign Nationals.

52.209-13 Violation of Arms Control Treaties or Agreements-Certification.

252.215-7010 Requirements for Certified Cost or Pricing Data and Data Other Than Certified Cost or Pricing Data.

252.203-7001 Prohibition on Persons Convicted of Fraud or Other Defense Contract-Related Felonies.

252.225-7016 Restriction on Acquisition of Ball and Roller Bearings.

252.225-7019 Restriction on Acquisition of Anchor and Mooring Chain.

252.225-7032 Waiver of United Kingdom Levies—Evaluation of Offers.

252.225-7033 Waiver of United Kingdom Levies.

252.225-7037 Evaluation of Offers for Air Circuit Breakers.

252.242-7005 Contractor Business Systems.

252.247-7023 Transportation of Supplies by Sea.

1852.204-76 Security Requirements for Unclassified Information Technology Resources.

1852.227-70 New Technology-Other than a Small Business Firm or Nonprofit Organization.

1852.227-71 Requests for Waiver of Rights to Inventions.

1852.227-88 Government-furnished computer software and related technical data.

1852.228-76 Cross-Waiver of Liability for International Space Station Activities.

1852.228-78 Cross-Waiver of Liability for Science or Space Exploration Activities Unrelated to the International Space Station.

1852.234-2 Earned Value Management System.

1852.245-78 Physical inventory of capital personal property

5252.204-9503 Expediting Contract Closeout (NAVAIR)

5252.209-9513 ORGANIZATIONAL CONFLICT OF INTEREST INSTRUCTIONS (SERVICES) (NAVAIR)

5252.209-9510 ORGANIZATIONAL CONFLICTS OF INTEREST (SERVICES) (NAVAIR)(MAR 2007)

5152.225-5902 Fitness for Duty and Medical/Dental Care Limitations

652.228-71 Worker’s Compensation Insurance (Defense Base Act) - Services.

752.231-71 Salary supplements for HG employees.

952.209-72 Organizational conflicts of interest.

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