FOREIGN ACQUISITIONFAR Part 25 (Foreign Acquisition)
FAR 52.225-1: Buy American — Supplies
Official federal procurement regulation analysis, contractor performance obligations, and risk mitigation strategies for small businesses.
REGULATORY CONTEXT
Official Acquisition.gov Text ↗What It Means in Plain English
Restricts the purchase of foreign supplies on federal civilian contracts, requiring manufactured end products to be produced domestically with a statutory percentage of domestic components.
Where This Clause Appears in Federal RFPs:
Mandatory in federal civilian supply contracts exceeding the micro-purchase threshold.
Mandatory Statutory Requirements
- Domestic End Product Definition: Manufactured in the U.S. and component costs exceed 65% of the total cost of all components (stepping up to 75% by 2029).
- Evaluation Preference: Adds a price evaluation penalty (20% for large businesses, 30% for small businesses) to non-qualifying foreign offers during bid evaluation.
- Trade Agreements Thresholds: Above specific dollar thresholds (e.g., ~$174,000 for WTO GPA), designated country products are treated equally with domestic products.
Contractor Compliance Obligations
- Calculate domestic component cost percentages for all end products offered.
- Obtain manufacturer written certs before proposal submission.
⚠️ Audit Trap & High-Risk Pitfall
Re-packaging or re-labeling imported Chinese or Southeast Asian goods in the U.S. does not constitute domestic manufacturing and violates the Buy American Act and Trade Agreements Act.
Frequently Asked Questions About FAR 52.225-1
Does the Buy American Act apply to commercial off-the-shelf (COTS) items?
For COTS products, the component content test is waived, but the end product must still be manufactured in the United States.