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MODIFICATION NO. 1

TO
AT 1:9-18)-12

APPENDIX C

PROVISIONS APPLICABLE TO ACTIVITIES INVOLVING THE USE OF ERDA FUNDS MADE AVAILABLE TO PMC PURSUANT TO PARAGRAPH 4.1.1 OF THE CONTRACT AND TO OTHER PROJECT ACTIVITIES TO THE EXTENT APPLICABLE BY LAW.

With respect to Project Activities by TVA and CE, provisions in this Appendix C shall be deemed to refer to TVA or CE, as the case may be, in lieu of PMC. To the extent TVA has establis'ed policies and procedures pertaining to the clauses contained in this Appendix C, TVA and ERDA shall at the appropriate time determine which shall be followed.

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C-1.1 In acquiring end products, the Buy American Act (41 U.S. Code 10a-d) provides that the Government give preference to domestic source end products. For the purpose of this clause:

(i) "Components" means those articles, materials, and supplies which are directly incorporated in the end products;

(ii) "End products" means those articles, materials, and supplies which are to be acquired under this contract for public use; and

(iii) A "domestic source end product" means (A) an unmanufactured end product which has been mined or produced in the United States and (B) an end roduct manufactured in the United States if the cost of the components thereof which are mined, produced, or manufactured in the United States exceeds 50% of the cost of all its components. For the purposes of this C-1.1(iii) (B), components of foreign origin of the same type or kind as the products referred to in C-1.1(ii) or (iii) of this clause shall be treated as components mined, produced, or manufactured in the United States.

C-1.2 PMC agrees that there will be delivered under this contract only domestic end products, except end products:

(i)

Which are for use outside the United States;

(ii) Which the Government determines are not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality;

(iii) As to which the ERDA determines the domestic preference to be inconsistent with the public interest; or

(iv) As to which the ERDA determines the cost to the Government to be unreasonable. (The foregoing requirements are administered in accordance with Executive Order No. 10582, dated December 17, 1954.)

C-2.0

Utilization of Small Business Concerns

C-2.1 It is the policy of the Government as declared by the Congress that a fair proportion of the purchases and contracts for supplies and services for the Government be placed with small business concerns.

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