Part 25 - Foreign Acquisition

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25 - Foreign Acquisition </li> </ol> </nav> </div> </div> <div class="grid-row far-dita-grid-row grid-row-secondary-menu"> <div class="usa-nav__secondary"> <div class="usa-nav__secondary usa-secondary_menus"> <a href="javascript:void(0)" id="caoc-menu-burger" title="Open caoc menu in mobile." aria-label="Open caoc menu in mobile."> <div class="caoc-menu-btn"> <div class="caoc-menu-btn__burger"></div> </div> </a> <div id="block-regulationsubpartsblock" class="block block-agov-browse block-agov-reg-sub-parts-block"> <div class="agov-browse-fac-display"><div class="agov-browse-fac-image"><img src="/themes/custom/acquisition_gov/assets/img/logos/64/FAR.png" width="64" alt="FAR" title="FAR" typeof="foaf:Image" /> </div> <div class="agov-browse-fac-text"><h1>FAR</h1> FAC Number: 2025-01 Effective Date: 11/12/2024</div> </div> <div id="reg-form-navigation"><form class="far-page-navigation-block-form usa-form" data-drupal-selector="far-page-navigation-block-form" action="/far/part-25" method="post" id="far-page-navigation-block-form" accept-charset="UTF-8"> <div class="form-item usa-label js-form-item form-type-select js-form-type-select form-item-partname js-form-item-partname form-no-label"> <div class="select-wrapper"><select id="partname" title="FAR Part menu." aria-label="FAR Part menu." data-drupal-selector="edit-partname" name="partname" class="form-select usa-select"><option value="">Part</option><option value="60810">Part 1</option><option value="60875">Part 2</option><option value="60881">Part 3</option><option value="60991">Part 4</option><option value="61123">Part 5</option><option value="61165">Part 6</option><option value="61205">Part 7</option><option value="61246">Part 8</option><option value="61325">Part 9</option><option value="61439">Part 10</option><option value="61444">Part 11</option><option value="61486">Part 12</option><option value="61533">Part 13</option><option value="61588">Part 14</option><option value="61675">Part 15</option><option value="61763">Part 16</option><option value="29766">Part 17</option><option value="29818">Part 18</option><option value="29857">Part 19</option><option value="29998">Part 20</option><option value="29999">Part 21</option><option value="30000">Part 22</option><option value="30228">Part 23</option><option value="30301">Part 24</option><option value="30315" selected="selected">Part 25</option><option value="30407">Part 26</option><option value="30438">Part 27</option><option value="30503">Part 28</option><option value="30568">Part 29</option><option value="30596">Part 30</option><option value="30633">Part 31</option><option value="30728">Part 32</option><option value="30915">Part 33</option><option value="30943">Part 34</option><option value="30966">Part 35</option><option value="30992">Part 36</option><option value="31081">Part 37</option><option value="31134">Part 38</option><option value="31140">Part 39</option><option value="31157">Part 40</option><option value="31158">Part 41</option><option value="31185">Part 42</option><option value="31287">Part 43</option><option value="31305">Part 44</option><option value="31334">Part 45</option><option value="31374">Part 46</option><option value="31443">Part 47</option><option value="31554">Part 48</option><option value="31570">Part 49</option><option value="31685">Part 50</option><option value="31722">Part 51</option><option value="31745">Part 52</option><option value="32495">Part 53</option></select></div> </div> <div class="form-item usa-label js-form-item form-type-select js-form-type-select form-item-subpartname js-form-item-subpartname form-no-label"> <div class="select-wrapper"><select id="subpartname" title="FAR Sub Part menu." aria-label="FAR Sub Part menu." data-drupal-selector="edit-subpartname" name="subpartname" class="form-select usa-select"><option value="" selected="selected">Subpart</option><option value="30316">25.0</option><option value="30320">25.1</option><option value="30327">25.2</option><option value="30335">25.3</option><option value="30348">25.4</option><option value="30358">25.5</option><option value="30367">25.6</option><option value="30378">25.7</option><option value="30391">25.8</option><option value="30394">25.9</option><option value="30399">25.10</option><option value="30403">25.11</option></select></div> </div> <div class="form-item usa-label js-form-item form-type-select js-form-type-select form-item-subtopicname js-form-item-subtopicname form-no-label"> <div class="select-wrapper"><select id="subtopicname" title="FAR Sub Topic menu." aria-label="FAR Sub Topic menu." data-drupal-selector="edit-subtopicname" name="subtopicname" class="form-select usa-select"><option value="" selected="selected">Section</option></select></div> </div> <input autocomplete="off" data-drupal-selector="form-aos6vuvdfu6oaiidd4rc-nfc0xw30x-t0hnlcekgyg0" type="hidden" name="form_build_id" value="form-Aos6VUvdfu6oAIiDD4rC_NFc0xw30X_t0HnLcekgYg0" class="usa-input" /><input data-drupal-selector="edit-far-page-navigation-block-form" type="hidden" name="form_id" value="far_page_navigation_block_form" class="usa-input" /><div class="url-textfield js-form-wrapper form-wrapper" style="display: none !important;"><div class="form-item usa-label js-form-item form-type-textfield js-form-type-textfield form-item-url js-form-item-url"> <label for="edit-url" class="usa-label control-label">Leave this field blank</label> <input autocomplete="off" data-drupal-selector="edit-url" type="text" id="edit-url" name="url" value="" size="20" maxlength="128" class="form-text usa-input" /> </div> </div> </form> </div> <ul class="usa-nav__secondary-links"><li><a href="/far/part-25" id="favorites-create-bookmark" title="Add Bookmark" aria-label="Part 25 - Foreign Acquisition" data-node="30315" data-title="Part 25 - Foreign Acquisition" target="_self"><img src="/modules/custom/agov_favorites/images/30px/bookmark-add.png" width="30" alt="Part 25 - Foreign 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id="ariaid-title1"> Part 25 - Foreign Acquisition</h1> <div class="body"> <a class="xref fm:TOC" href="#FAR_25_000" title="25.000 Scope of part." aria-label="25.000 Scope of part.. Link 0">25.000 Scope of part.</a> <a class="xref fm:TOC" href="#FAR_25_001" title="25.001 General." aria-label="25.001 General.. Link 1">25.001 General.</a> <a class="xref fm:TOC" href="#FAR_25_002" title="25.002 Applicability of subparts." aria-label="25.002 Applicability of subparts.. Link 2">25.002 Applicability of subparts.</a> <a class="xref fm:TOC" href="#FAR_25_003" title="25.003 Definitions." aria-label="25.003 Definitions.. Link 3">25.003 Definitions.</a> <a class="xref fm:TOC" href="#FAR_Subpart_25_1" title="Subpart 25.1 - Buy American-Supplies" aria-label="Subpart 25.1 - Buy American-Supplies. Link 4">Subpart 25.1 - Buy American-Supplies</a> <a class="xref fm:TOC" href="#FAR_25_100" title="25.100 Scope of subpart." aria-label="25.100 Scope of subpart.. Link 5">25.100 Scope of subpart.</a> <a class="xref fm:TOC" href="#FAR_25_101" title="25.101 General." aria-label="25.101 General.. Link 6">25.101 General.</a> <a class="xref fm:TOC" href="#FAR_25_102" title="25.102 Policy." aria-label="25.102 Policy.. Link 7">25.102 Policy.</a> <a class="xref fm:TOC" href="#FAR_25_103" title="25.103 Exceptions." aria-label="25.103 Exceptions.. Link 8">25.103 Exceptions.</a> <a class="xref fm:TOC" href="#FAR_25_104" title="25.104 Nonavailable articles." aria-label="25.104 Nonavailable articles.. Link 9">25.104 Nonavailable articles.</a> <a class="xref fm:TOC" href="#FAR_25_105" title="25.105 Critical components and critical items." aria-label="25.105 Critical components and critical items.. Link 10">25.105 Critical components and critical items.</a> <a class="xref fm:TOC" href="#FAR_25_106" title="25.106 Determining reasonableness of cost." aria-label="25.106 Determining reasonableness of cost.. Link 11">25.106 Determining reasonableness of cost.</a> <a class="xref fm:TOC" href="#FAR_Subpart_25_2" title="Subpart 25.2 - Buy American-Construction Materials" aria-label="Subpart 25.2 - Buy American-Construction Materials. Link 12">Subpart 25.2 - Buy American-Construction Materials</a> <a class="xref fm:TOC" href="#FAR_25_200" title="25.200 Scope of subpart." aria-label="25.200 Scope of subpart.. Link 13">25.200 Scope of subpart.</a> <a class="xref fm:TOC" href="#FAR_25_201" title="25.201 Policy." aria-label="25.201 Policy.. Link 14">25.201 Policy.</a> <a class="xref fm:TOC" href="#FAR_25_202" title="25.202 Exceptions." aria-label="25.202 Exceptions.. Link 15">25.202 Exceptions.</a> <a class="xref fm:TOC" href="#FAR_25_203" title="25.203 Preaward determinations." aria-label="25.203 Preaward determinations.. Link 16">25.203 Preaward determinations.</a> <a class="xref fm:TOC" href="#FAR_25_204" title="25.204 Evaluating offers of foreign construction material." aria-label="25.204 Evaluating offers of foreign construction material.. Link 17">25.204 Evaluating offers of foreign construction material.</a> <a class="xref fm:TOC" href="#FAR_25_205" title="25.205 Postaward determinations." aria-label="25.205 Postaward determinations.. Link 18">25.205 Postaward determinations.</a> <a class="xref fm:TOC" href="#FAR_25_206" title="25.206 Noncompliance." aria-label="25.206 Noncompliance.. Link 19">25.206 Noncompliance.</a> <a class="xref fm:TOC" href="#FAR_Subpart_25_3" title="Subpart 25.3 - Contracts Performed Outside the United States" aria-label="Subpart 25.3 - Contracts Performed Outside the United States. Link 20">Subpart 25.3 - Contracts Performed Outside the United States</a> <a class="xref fm:TOC" href="#FAR_25_301" title="25.301 Contractor personnel in a designated operational area or supporting a diplomatic or consular mission outside the United States." aria-label="25.301 Contractor personnel in a designated operational area or supporting a diplomatic or consular mission outside the United States.. Link 21">25.301 Contractor personnel in a designated operational area or supporting a diplomatic or consular mission outside the United States.</a> <a class="xref fm:TOC" href="#FAR_25_301_1" title="25.301-1 Scope." aria-label="25.301-1 Scope.. Link 22">25.301-1 Scope.</a> <a class="xref fm:TOC" href="#FAR_25_301_2" title="25.301-2 Government support." aria-label="25.301-2 Government support.. Link 23">25.301-2 Government support.</a> <a class="xref fm:TOC" href="#FAR_25_301_3" title="25.301-3 Weapons." aria-label="25.301-3 Weapons.. Link 24">25.301-3 Weapons.</a> <a class="xref fm:TOC" href="#FAR_25_301_4" title="25.301-4 Contract clause." aria-label="25.301-4 Contract clause.. Link 25">25.301-4 Contract clause.</a> <a class="xref fm:TOC" href="#FAR_25_302" title="25.302 Contractors performing private security functions outside the United States." aria-label="25.302 Contractors performing private security functions outside the United States.. Link 26">25.302 Contractors performing private security functions outside the United States.</a> <a class="xref fm:TOC" href="#FAR_25_302_1" title="25.302-1 Scope." aria-label="25.302-1 Scope.. Link 27">25.302-1 Scope.</a> <a class="xref fm:TOC" href="#FAR_25_302_2" title="25.302-2 Definitions." aria-label="25.302-2 Definitions.. Link 28">25.302-2 Definitions.</a> <a class="xref fm:TOC" href="#FAR_25_302_3" title="25.302-3 Applicability." aria-label="25.302-3 Applicability.. Link 29">25.302-3 Applicability.</a> <a class="xref fm:TOC" href="#FAR_25_302_4" title="25.302-4 Policy." aria-label="25.302-4 Policy.. Link 30">25.302-4 Policy.</a> <a class="xref fm:TOC" href="#FAR_25_302_5" title="25.302-5 Remedies." aria-label="25.302-5 Remedies.. Link 31">25.302-5 Remedies.</a> <a class="xref fm:TOC" href="#FAR_25_302_6" title="25.302-6 Contract clause." aria-label="25.302-6 Contract clause.. Link 32">25.302-6 Contract clause.</a> <a class="xref fm:TOC" href="#FAR_Subpart_25_4" title="Subpart 25.4 - Trade Agreements" aria-label="Subpart 25.4 - Trade Agreements. Link 33">Subpart 25.4 - Trade Agreements</a> <a class="xref fm:TOC" href="#FAR_25_400" title="25.400 Scope of subpart." aria-label="25.400 Scope of subpart.. Link 34">25.400 Scope of subpart.</a> <a class="xref fm:TOC" href="#FAR_25_401" title="25.401 Exceptions." aria-label="25.401 Exceptions.. Link 35">25.401 Exceptions.</a> <a class="xref fm:TOC" href="#FAR_25_402" title="25.402 General." aria-label="25.402 General.. Link 36">25.402 General.</a> <a class="xref fm:TOC" href="#FAR_25_403" title="25.403 World Trade Organization Government Procurement Agreement and Free Trade Agreements." aria-label="25.403 World Trade Organization Government Procurement Agreement and Free Trade Agreements.. Link 37">25.403 World Trade Organization Government Procurement Agreement and Free Trade Agreements.</a> <a class="xref fm:TOC" href="#FAR_25_404" title="25.404 Least developed countries." aria-label="25.404 Least developed countries.. Link 38">25.404 Least developed countries.</a> <a class="xref fm:TOC" href="#FAR_25_405" title="25.405 Caribbean Basin Trade Initiative." aria-label="25.405 Caribbean Basin Trade Initiative.. Link 39">25.405 Caribbean Basin Trade Initiative.</a> <a class="xref fm:TOC" href="#FAR_25_406" title="25.406 Israeli Trade Act." aria-label="25.406 Israeli Trade Act.. Link 40">25.406 Israeli Trade Act.</a> <a class="xref fm:TOC" href="#FAR_25_407" title="25.407 Agreement on Trade in Civil Aircraft." aria-label="25.407 Agreement on Trade in Civil Aircraft.. Link 41">25.407 Agreement on Trade in Civil Aircraft.</a> <a class="xref fm:TOC" href="#FAR_25_408" title="25.408 Procedures." aria-label="25.408 Procedures.. Link 42">25.408 Procedures.</a> <a class="xref fm:TOC" href="#FAR_Subpart_25_5" title="Subpart 25.5 - Evaluating Foreign Offers-Supply Contracts" aria-label="Subpart 25.5 - Evaluating Foreign Offers-Supply Contracts. Link 43">Subpart 25.5 - Evaluating Foreign Offers-Supply Contracts</a> <a class="xref fm:TOC" href="#FAR_25_501" title="25.501 General." aria-label="25.501 General.. Link 44">25.501 General.</a> <a class="xref fm:TOC" href="#FAR_25_502" title="25.502 Application." aria-label="25.502 Application.. Link 45">25.502 Application.</a> <a class="xref fm:TOC" href="#FAR_25_503" title="25.503 Group offers." aria-label="25.503 Group offers.. Link 46">25.503 Group offers.</a> <a class="xref fm:TOC" href="#FAR_25_504" title="25.504 Evaluation examples." aria-label="25.504 Evaluation examples.. Link 47">25.504 Evaluation examples.</a> <a class="xref fm:TOC" href="#FAR_25_504_1" title="25.504-1 Buy American statute." aria-label="25.504-1 Buy American statute.. Link 48">25.504-1 Buy American statute.</a> <a class="xref fm:TOC" href="#FAR_25_504_2" title="25.504-2 WTO GPA/Caribbean Basin Trade Initiative/FTAs." aria-label="25.504-2 WTO GPA/Caribbean Basin Trade Initiative/FTAs.. Link 49">25.504-2 WTO GPA/Caribbean Basin Trade Initiative/FTAs.</a> <a class="xref fm:TOC" href="#FAR_25_504_3" title="25.504-3 FTA/Israeli Trade Act." aria-label="25.504-3 FTA/Israeli Trade Act.. Link 50">25.504-3 FTA/Israeli Trade Act.</a> <a class="xref fm:TOC" href="#FAR_25_504_4" title="25.504-4 Group award basis." aria-label="25.504-4 Group award basis.. Link 51">25.504-4 Group award basis.</a> <a class="xref fm:TOC" href="#FAR_Subpart_25_6" title="Subpart 25.6 - American Recovery and Reinvestment Act-Buy American statute-Construction Materials" aria-label="Subpart 25.6 - American Recovery and Reinvestment Act-Buy American statute-Construction Materials. Link 52">Subpart 25.6 - American Recovery and Reinvestment Act-Buy American statute-Construction Materials</a> <a class="xref fm:TOC" href="#FAR_25_600" title="25.600 Scope of subpart." aria-label="25.600 Scope of subpart.. Link 53">25.600 Scope of subpart.</a> <a class="xref fm:TOC" href="#FAR_25_601" title="25.601 Definitions." aria-label="25.601 Definitions.. Link 54">25.601 Definitions.</a> <a class="xref fm:TOC" href="#FAR_25_602" title="25.602 Policy." aria-label="25.602 Policy.. Link 55">25.602 Policy.</a> <a class="xref fm:TOC" href="#FAR_25_602_1" title="25.602-1 Section 1605 of the Recovery Act." aria-label="25.602-1 Section 1605 of the Recovery Act.. Link 56">25.602-1 Section 1605 of the Recovery Act.</a> <a class="xref fm:TOC" href="#FAR_25_602_2" title="25.602-2 Buy American statute" aria-label="25.602-2 Buy American statute. Link 57">25.602-2 Buy American statute</a> <a class="xref fm:TOC" href="#FAR_25_603" title="25.603 Exceptions." aria-label="25.603 Exceptions.. Link 58">25.603 Exceptions.</a> <a class="xref fm:TOC" href="#FAR_25_604" title="25.604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American statute." aria-label="25.604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American statute.. Link 59">25.604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American statute.</a> <a class="xref fm:TOC" href="#FAR_25_605" title="25.605 Evaluating offers of foreign construction material." aria-label="25.605 Evaluating offers of foreign construction material.. Link 60">25.605 Evaluating offers of foreign construction material.</a> <a class="xref fm:TOC" href="#FAR_25_606" title="25.606 Postaward determinations." aria-label="25.606 Postaward determinations.. Link 61">25.606 Postaward determinations.</a> <a class="xref fm:TOC" href="#FAR_25_607" title="25.607 Noncompliance." aria-label="25.607 Noncompliance.. Link 62">25.607 Noncompliance.</a> <a class="xref fm:TOC" href="#FAR_Subpart_25_7" title="Subpart 25.7 - Prohibited Sources" aria-label="Subpart 25.7 - Prohibited Sources. Link 63">Subpart 25.7 - Prohibited Sources</a> <a class="xref fm:TOC" href="#FAR_25_700" title="25.700 Scope of subpart." aria-label="25.700 Scope of subpart.. Link 64">25.700 Scope of subpart.</a> <a class="xref fm:TOC" href="#FAR_25_701" title="25.701 Restrictions administered by the Department of the Treasury on acquisitions of supplies or services from prohibited sources." aria-label="25.701 Restrictions administered by the Department of the Treasury on acquisitions of supplies or services from prohibited sources.. Link 65">25.701 Restrictions administered by the Department of the Treasury on acquisitions of supplies or services from prohibited sources.</a> <a class="xref fm:TOC" href="#FAR_25_702" title="25.702 Prohibition on contracting with entities that conduct restricted business operations in Sudan." aria-label="25.702 Prohibition on contracting with entities that conduct restricted business operations in Sudan.. Link 66">25.702 Prohibition on contracting with entities that conduct restricted business operations in Sudan.</a> <a class="xref fm:TOC" href="#FAR_25_702_1" title="25.702-1 Definitions." aria-label="25.702-1 Definitions.. Link 67">25.702-1 Definitions.</a> <a class="xref fm:TOC" href="#FAR_25_702_2" title="25.702-2 Certification." aria-label="25.702-2 Certification.. Link 68">25.702-2 Certification.</a> <a class="xref fm:TOC" href="#FAR_25_702_3" title="25.702-3 Remedies." aria-label="25.702-3 Remedies.. Link 69">25.702-3 Remedies.</a> <a class="xref fm:TOC" href="#FAR_25_702_4" title="25.702-4 Waiver." aria-label="25.702-4 Waiver.. Link 70">25.702-4 Waiver.</a> <a class="xref fm:TOC" href="#FAR_25_703" title="25.703 Prohibition on contracting with entities that engage in certain activities or transactions relating to Iran." aria-label="25.703 Prohibition on contracting with entities that engage in certain activities or transactions relating to Iran.. Link 71">25.703 Prohibition on contracting with entities that engage in certain activities or transactions relating to Iran.</a> <a class="xref fm:TOC" href="#FAR_25_703_1" title="25.703-1 Definitions." aria-label="25.703-1 Definitions.. Link 72">25.703-1 Definitions.</a> <a class="xref fm:TOC" href="#FAR_25_703_2" title="25.703-2 Iran Sanctions Act." aria-label="25.703-2 Iran Sanctions Act.. Link 73">25.703-2 Iran Sanctions Act.</a> <a class="xref fm:TOC" href="#FAR_25_703_3" title="25.703-3 Prohibition on contracting with entities that export sensitive technology to Iran." aria-label="25.703-3 Prohibition on contracting with entities that export sensitive technology to Iran.. Link 74">25.703-3 Prohibition on contracting with entities that export sensitive technology to Iran.</a> <a class="xref fm:TOC" href="#FAR_25_703_4" title="25.703-4 Waiver." aria-label="25.703-4 Waiver.. Link 75">25.703-4 Waiver.</a> <a class="xref fm:TOC" href="#FAR_Subpart_25_8" title="Subpart 25.8 - Other International Agreements and Coordination" aria-label="Subpart 25.8 - Other International Agreements and Coordination. Link 76">Subpart 25.8 - Other International Agreements and Coordination</a> <a class="xref fm:TOC" href="#FAR_25_801" title="25.801 General." aria-label="25.801 General.. Link 77">25.801 General.</a> <a class="xref fm:TOC" href="#FAR_25_802" title="25.802 Procedures." aria-label="25.802 Procedures.. Link 78">25.802 Procedures.</a> <a class="xref fm:TOC" href="#FAR_Subpart_25_9" title="Subpart 25.9 - Customs and Duties" aria-label="Subpart 25.9 - Customs and Duties. Link 79">Subpart 25.9 - Customs and Duties</a> <a class="xref fm:TOC" href="#FAR_25_900" title="25.900 Scope of subpart." aria-label="25.900 Scope of subpart.. Link 80">25.900 Scope of subpart.</a> <a class="xref fm:TOC" href="#FAR_25_901" title="25.901 Policy." aria-label="25.901 Policy.. Link 81">25.901 Policy.</a> <a class="xref fm:TOC" href="#FAR_25_902" title="25.902 Procedures." aria-label="25.902 Procedures.. Link 82">25.902 Procedures.</a> <a class="xref fm:TOC" href="#FAR_25_903" title="25.903 Exempted supplies." aria-label="25.903 Exempted supplies.. Link 83">25.903 Exempted supplies.</a> <a class="xref fm:TOC" href="#FAR_Subpart_25_10" title="Subpart 25.10 - Additional Foreign Acquisition Regulations" aria-label="Subpart 25.10 - Additional Foreign Acquisition Regulations. Link 84">Subpart 25.10 - Additional Foreign Acquisition Regulations</a> <a class="xref fm:TOC" href="#FAR_25_1001" title="25.1001 Waiver of right to examination of records." aria-label="25.1001 Waiver of right to examination of records.. Link 85">25.1001 Waiver of right to examination of records.</a> <a class="xref fm:TOC" href="#FAR_25_1002" title="25.1002 Use of foreign currency." aria-label="25.1002 Use of foreign currency.. Link 86">25.1002 Use of foreign currency.</a> <a class="xref fm:TOC" href="#FAR_25_1003" title="25.1003 Tax on certain foreign procurements." aria-label="25.1003 Tax on certain foreign procurements.. Link 87">25.1003 Tax on certain foreign procurements.</a> <a class="xref fm:TOC" href="#FAR_Subpart_25_11" title="Subpart 25.11 - Solicitation Provisions and Contract Clauses" aria-label="Subpart 25.11 - Solicitation Provisions and Contract Clauses. Link 88">Subpart 25.11 - Solicitation Provisions and Contract Clauses</a> <a class="xref fm:TOC" href="#FAR_25_1101" title="25.1101 Acquisition of supplies." aria-label="25.1101 Acquisition of supplies.. Link 89">25.1101 Acquisition of supplies.</a> <a class="xref fm:TOC" href="#FAR_25_1102" title="25.1102 Acquisition of construction." aria-label="25.1102 Acquisition of construction.. Link 90">25.1102 Acquisition of construction.</a> <a class="xref fm:TOC" href="#FAR_25_1103" title="25.1103 Other provisions and clauses." aria-label="25.1103 Other provisions and clauses.. Link 91">25.1103 Other provisions and clauses.</a> </div> <nav role="navigation" class="related-links"><div class="familylinks"><div class="parentlink">Parent topic: <a class="link FAR_4 FAR_Subchapter_DNoPropFAR_4.htmlsubtopic" href="/far/far4" title="Federal Acquisition Regulation" aria-label="Federal Acquisition Regulation. Link 92">Federal Acquisition Regulation</a></div></div></nav><article class="topic concept TORP" aria-labelledby="ariaid-title2" id="FAR_25_000" data-part="section" data-part-number="25.000"> <h2 class="title topictitle2" id="ariaid-title2"> 25.000 Scope of part.</h2> <div class="body conbody"> (a) This part provides policies and procedures for- (1) <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">Acquisition of foreign <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies, services, and <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction materials; and (2) Contracts performed outside the United States. (b) It implements <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title41-chapter83&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU0MC1jaGFwdGVyMzctZnJvbnQ%3D%7C%7C%7C0%7Cfalse%7Cprelim&edition=prelim" target="_blank" title="41 U.S.C. chapter 83" aria-label="41 U.S.C. chapter 83. Link 93">41 U.S.C. chapter 83</a>, Buy American; trade agreements; and other laws and regulations. </div> </article> <article class="topic concept nested1" aria-labelledby="ariaid-title3" id="FAR_25_001" data-part="section" data-part-number="25.001"> <h2 class="title topictitle2" id="ariaid-title3"> 25.001 General.</h2> <div class="body conbody"> (a) <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title41-chapter83&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU0MC1jaGFwdGVyMzctZnJvbnQ%3D%7C%7C%7C0%7Cfalse%7Cprelim&edition=prelim" target="_blank" title="41 U.S.C. chapter 83" aria-label="41 U.S.C. chapter 83. Link 93">41 U.S.C. chapter 83</a>, Buy American- (1) Restricts the purchase of <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies, that are not <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end products, for use within the United States. A foreign end product may be purchased if the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer determines that the price of the lowest <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer is unreasonable or if another exception applies (see <a class="xref fm:Subpart" href="#FAR_Subpart_25_1" title="subpart  25.1" aria-label="subpart聽 25.1. Link 95">subpart  25.1</a>); and (2) Requires, with some exceptions, the use of only <i data-tippy-content="Domestic construction material means-(1) For use in subparts other than 25.6—(i) For construction material that does not consist wholly or predominantly of iron or steel or a combination of both—(A) An unmanufactured construction material mined or produced in the United States; or(B) A construction material manufactured in the United States, if–(1) The cost of the components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.201(c)).Components of unknown origin are treated as foreign; or(2) The construction material is a commercially available off-the-shelf (COTS) item; or(ii) For construction material that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the United States if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in such construction material. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the construction material contains multiple components, the cost of all the materials used in such construction material is calculated in accordance with the definition of “cost of components” in this section; or(3) For use in subpart  25.6, see the definition in 25.601." class="agov-definition">domestic construction materials in contracts for <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction in the United States (see <a class="xref fm:Subpart" href="#FAR_Subpart_25_2" title="subpart  25.2" aria-label="subpart聽 25.2. Link 96">subpart  25.2</a>). (b) The restrictions in the Buy American statute are not applicable in <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions subject to certain trade agreements (see <a class="xref fm:Subpart" href="#FAR_Subpart_25_4" title="subpart  25.4" aria-label="subpart聽 25.4. Link 97">subpart  25.4</a>). In these <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions, end products and <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction materials from certain countries receive nondiscriminatory treatment in evaluation with <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offers. Generally, the dollar value of the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition determines which of the trade agreements applies. Exceptions to the applicability of the trade agreements are described in <a class="xref fm:Subpart" href="#FAR_Subpart_25_4" title="subpart  25.4" aria-label="subpart聽 25.4. Link 97">subpart  25.4</a>. (c) The test to determine the country of origin for an end product under the Buy American statute (see the various country "end product" definitions in <a class="xref fm:ParaNumOnly" href="#FAR_25_003" title="25.003" aria-label="25.003. Link 99">25.003</a>) is different from the test to determine the country of origin for an end product under the trade agreements, or the criteria for the representation on end products manufactured outside the United States (see <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_18" title="52.225-18" aria-label="52.225-18. Link 100">52.225-18</a>). (1) The Buy American statute uses a two-part test to define a "<i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end product" or "<i data-tippy-content="Domestic construction material means-(1) For use in subparts other than 25.6—(i) For construction material that does not consist wholly or predominantly of iron or steel or a combination of both—(A) An unmanufactured construction material mined or produced in the United States; or(B) A construction material manufactured in the United States, if–(1) The cost of the components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.201(c)).Components of unknown origin are treated as foreign; or(2) The construction material is a commercially available off-the-shelf (COTS) item; or(ii) For construction material that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the United States if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in such construction material. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the construction material contains multiple components, the cost of all the materials used in such construction material is calculated in accordance with the definition of “cost of components” in this section; or(3) For use in subpart  25.6, see the definition in 25.601." class="agov-definition">domestic construction material" (manufactured in the United States and a domestic content test). The domestic content test has been waived for <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition of commercially available off-the-shelf (COTS) items, except a product that consists wholly or <i data-tippy-content="Predominantly of iron or steel or a combination of both means that the cost of the iron and steel content exceeds 50 percent of the total cost of all its components. The cost of iron and steel is the cost of the iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the product and a good faith estimate of the cost of iron or steel components excluding COTS fasteners." class="agov-definition">predominantly of iron or steel or a combination of both (excluding COTS <i data-tippy-content="Fastener means a hardware device that mechanically joins or affixes two or more objects together. Examples of fasteners are nuts, bolts, pins, rivets, nails, clips, and screws." class="agov-definition">fasteners) (see <a class="xref fm:ParaNumOnly" href="#FAR_25_101" title="25.101" aria-label="25.101. Link 101">25.101</a>(a) and <a class="xref fm:ParaNumOnly" href="#FAR_25_201" title="25.201" aria-label="25.201. Link 102">25.201</a>(b)). (2) Under the trade agreements, the test to determine country of origin is "substantial transformation" (i.e., transforming an article into a new and different article of commerce, with a name, character, or use distinct from the original article). (3) For the representation at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_18" title="52.225-18" aria-label="52.225-18. Link 100">52.225-18</a>, the only criterion is whether the place of manufacture of an end product is in the United States or outside the United States, without regard to the origin of the components. (4) When using funds appropriated under the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5), the definition of "domestic manufactured <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material" requires manufacture in the United States but does not include a requirement with regard to the origin of the components. If the <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material consists wholly or predominantly of iron or steel, the iron or steel must be produced in the United States. </div> </article> <article class="topic concept nested1" aria-labelledby="ariaid-title4" id="FAR_25_002" data-part="section" data-part-number="25.002"> <h2 class="title topictitle2" id="ariaid-title4"> 25.002 Applicability of subparts.</h2> <div class="body conbody"> The following table shows the applicability of the subparts. <a class="xref fm:Subpart" href="#FAR_Subpart_25_5" title="subpart  25.5" aria-label="subpart聽 25.5. Link 104">subpart  25.5</a> provides comprehensive procedures for <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer evaluation and examples. <div class="agov-table-wrapper"><table class="table frame-all" aria-label="Presentation Table"><colgroup><col style="width:34%"><col style="width:11%"><col style="width:11%"><col style="width:11%"><col style="width:11%"><col style="width:11%"><col style="width:11%"></colgroup><thead class="thead"> <tr> <th class="entry colsep-1 rowsep-1" id="FAR_25_002__entry__1" aria-label=" Subpart "> <dfn class="term">Subpart</dfn> </th> <th class="entry colsep-1 rowsep-1" id="FAR_25_002__entry__2" colspan="2" aria-label=" Supplies For Use "> <dfn class="term"><i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">Supplies For Use</dfn> </th> <th class="entry colsep-1 rowsep-1" id="FAR_25_002__entry__3" colspan="2" aria-label=" Construction "> <dfn class="term"><i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">Construction</dfn> </th> <th class="entry colsep-1 rowsep-1" id="FAR_25_002__entry__4" colspan="2" aria-label=" Services Performed "> <dfn class="term">Services Performed</dfn> </th> </tr> <tr> <th class="entry colsep-1 rowsep-1" id="FAR_25_002__entry__5" aria-label="No value"></th> <th class="entry colsep-1 rowsep-1" id="FAR_25_002__entry__6" aria-label=" Inside U.S. "> <dfn class="term">Inside U.S.</dfn> </th> <th class="entry colsep-1 rowsep-1" id="FAR_25_002__entry__7" aria-label=" Outside U.S. "> <dfn class="term">Outside U.S.</dfn> </th> <th class="entry colsep-1 rowsep-1" id="FAR_25_002__entry__8" aria-label=" Inside U.S. "> <dfn class="term">Inside U.S.</dfn> </th> <th class="entry colsep-1 rowsep-1" id="FAR_25_002__entry__9" aria-label=" Outside U.S. "> <dfn class="term">Outside U.S.</dfn> </th> <th class="entry colsep-1 rowsep-1" id="FAR_25_002__entry__10" aria-label=" Inside U.S. "> <dfn class="term">Inside U.S</dfn>. </th> <th class="entry colsep-1 rowsep-1" id="FAR_25_002__entry__11" aria-label=" Outside U.S. "> <dfn class="term">Outside U.S</dfn>. </th> </tr> </thead><tbody class="tbody"> <tr> <td class="entry Hanging_FL CellBody_Hanging_FL colsep-1 rowsep-1" headers="FAR_25_002__entry__1 FAR_25_002__entry__5 "> <a class="xref fm:ParaNumOnly" href="#FAR_Subpart_25_1" title="25.1" aria-label="25.1. Link 105">25.1</a> Buy American- <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">Supplies</td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__6 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__7 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__8 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__9 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__10 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__11 "> - </td> </tr> <tr> <td class="entry Hanging_FL CellBody_Hanging_FL colsep-1 rowsep-1" headers="FAR_25_002__entry__1 FAR_25_002__entry__5 "> <a class="xref fm:ParaNumOnly" href="#FAR_Subpart_25_2" title="25.2" aria-label="25.2. Link 106">25.2</a> Buy American- <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">Construction Materials</td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__6 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__7 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__8 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__9 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__10 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__11 "> - </td> </tr> <tr> <td class="entry Hanging_FL CellBody_Hanging_FL colsep-1 rowsep-1" headers="FAR_25_002__entry__1 FAR_25_002__entry__5 "> <a class="xref fm:ParaNumOnly" href="#FAR_Subpart_25_3" title="25.3" aria-label="25.3. Link 107">25.3</a> Contracts Performed Outside the United States</td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__6 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__7 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__8 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__9 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__10 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__11 "> X </td> </tr> <tr> <td class="entry Hanging_FL CellBody_Hanging_FL colsep-1 rowsep-1" headers="FAR_25_002__entry__1 FAR_25_002__entry__5 "> <a class="xref fm:ParaNumOnly" href="#FAR_Subpart_25_4" title="25.4" aria-label="25.4. Link 108">25.4</a> Trade Agreements</td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__6 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__7 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__8 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__9 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__10 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__11 "> X </td> </tr> <tr> <td class="entry Hanging_FL CellBody_Hanging_FL colsep-1 rowsep-1" headers="FAR_25_002__entry__1 FAR_25_002__entry__5 "> <a class="xref fm:ParaNumOnly" href="#FAR_Subpart_25_5" title="25.5" aria-label="25.5. Link 109">25.5</a> Evaluating Foreign Offers- Supply Contracts</td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__6 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__7 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__8 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__9 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__10 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__11 "> - </td> </tr> <tr> <td class="entry Hanging_FL CellBody_Hanging_FL colsep-1 rowsep-1" headers="FAR_25_002__entry__1 FAR_25_002__entry__5 "> <a class="xref fm:ParaNumOnly" href="#FAR_Subpart_25_6" title="25.6" aria-label="25.6. Link 110">25.6</a> American Recovery and Reinvestment Act-Buy American statute-<i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">Construction Materials</td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__6 "> </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__7 "> </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__8 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__9 "> </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__10 "> </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__11 "> </td> </tr> <tr> <td class="entry Hanging_FL CellBody_Hanging_FL colsep-1 rowsep-1" headers="FAR_25_002__entry__1 FAR_25_002__entry__5 "> <a class="xref fm:ParaNumOnly" href="#FAR_Subpart_25_7" title="25.7" aria-label="25.7. Link 111">25.7</a> Prohibited Sources</td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__6 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__7 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__8 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__9 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__10 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__11 "> X </td> </tr> <tr> <td class="entry Hanging_FL CellBody_Hanging_FL colsep-1 rowsep-1" headers="FAR_25_002__entry__1 FAR_25_002__entry__5 "> <a class="xref fm:ParaNumOnly" href="#FAR_Subpart_25_8" title="25.8" aria-label="25.8. Link 112">25.8</a> Other International Agreements and Coordination</td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__6 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__7 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__8 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__9 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__10 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__11 "> X </td> </tr> <tr> <td class="entry Hanging_FL CellBody_Hanging_FL colsep-1 rowsep-1" headers="FAR_25_002__entry__1 FAR_25_002__entry__5 "> <a class="xref fm:ParaNumOnly" href="#FAR_Subpart_25_9" title="25.9" aria-label="25.9. Link 113">25.9</a> Customs and Duties</td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__6 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__7 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__8 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__9 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__10 "> - </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__11 "> - </td> </tr> <tr> <td class="entry Hanging_FL CellBody_Hanging_FL colsep-1 rowsep-1" headers="FAR_25_002__entry__1 FAR_25_002__entry__5 "> <a class="xref fm:ParaNumOnly" href="#FAR_Subpart_25_10" title="25.10" aria-label="25.10. Link 114">25.10</a> Additional Foreign <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">Acquisition Regulations</td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__6 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__7 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__8 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__9 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__10 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__11 "> X </td> </tr> <tr> <td class="entry Hanging_FL CellBody_Hanging_FL colsep-1 rowsep-1" headers="FAR_25_002__entry__1 FAR_25_002__entry__5 "> <a class="xref fm:ParaNumOnly" href="#FAR_Subpart_25_11" title="25.11" aria-label="25.11. Link 115">25.11</a> <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">Solicitation Provisions and <i data-tippy-content='Contract clause or "clause" means a term or condition used in contracts or in both solicitations and contracts, and applying after contract award or both before and after award.' class="agov-definition">Contract Clauses</td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__6 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__2 FAR_25_002__entry__7 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__8 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__3 FAR_25_002__entry__9 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__10 "> X </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_002__entry__4 FAR_25_002__entry__11 "> X </td> </tr> </tbody></table></div> </div> </article> <article class="topic concept nested1" aria-labelledby="ariaid-title5" id="FAR_25_003" data-part="section" data-part-number="25.003"> <h2 class="title topictitle2" id="ariaid-title5"> 25.003 Definitions. </h2> <div class="body conbody"> As used in this part— <i data-tippy-content="Caribbean Basin country means any of the following countries: Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago." class="agov-definition">Caribbean Basin country means any of the following countries: Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago. <i data-tippy-content="Caribbean Basin country end product—(1) Means an article that–(i)(A) Is wholly the growth, product, or manufacture of a Caribbean Basin country; or(B) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in a Caribbean Basin country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed; and(ii) Is not excluded from duty-free treatment for Caribbean countries under 19 U.S.C. 2703(b).(A) For this reason, the following articles are not Caribbean Basin country end products:(1) Tuna, prepared or preserved in any manner in airtight containers.(2) Petroleum, or any product derived from petroleum.(3) Watches and watch parts (including cases, bracelets, and straps) of whatever type including, but not limited to, mechanical, quartz digital, or quartz analog, if such watches or watch parts contain any material that is the product of any country to which the Harmonized Tariff Schedule of the United States (HTSUS) column 2 rates of duty apply (i.e., Afghanistan, Cuba, Laos, North Korea, and Vietnam).(4) Certain of the following: textiles and apparel articles; footwear, handbags, luggage, flat goods, work gloves, and leather wearing apparel; or handloomed, handmade, and folklore articles.(B) Access to the HTSUS to determine duty-free status of articles of the types listed in paragraph (1)(ii)(A)(4) of this definition is available via the Internet at https://usitc.gov/tata/hts/index.htm. In particular, see the following:(1) General Note 3(c), Products Eligible for Special Tariff treatment.(2) General Note 17, Products of Countries Designated as Beneficiary Countries under the United States- Caribbean Basin Trade Partnership Act of 2000.(3) Section XXII, Chapter 98, Subchapter II, Articles Exported and Returned, Advanced or Improved Abroad, U.S. Note 7(b).(4) Section XXII, Chapter 98, Subchapter XX, Goods Eligible for Special Tariff Benefits under the United States-Caribbean Basin Trade Partnership Act; and(2) Refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the acquisition, includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself." class="agov-definition">Caribbean Basin country end product— (1) Means an article that– (i) (A) Is wholly the growth, product, or manufacture of a <i data-tippy-content="Caribbean Basin country means any of the following countries: Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago." class="agov-definition">Caribbean Basin country; or (B) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in a <i data-tippy-content="Caribbean Basin country means any of the following countries: Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago." class="agov-definition">Caribbean Basin country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed; and (ii) Is not excluded from duty-free treatment for Caribbean countries under <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section2703(b)&num=0&edition=prelim" target="_blank" title="19 U.S.C. 2703(b)" aria-label="19 U.S.C. 2703(b). Link 116">19 U.S.C. 2703(b)</a>. (A) For this reason, the following articles are not <i data-tippy-content="Caribbean Basin country end product—(1) Means an article that–(i)(A) Is wholly the growth, product, or manufacture of a Caribbean Basin country; or(B) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in a Caribbean Basin country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed; and(ii) Is not excluded from duty-free treatment for Caribbean countries under 19 U.S.C. 2703(b).(A) For this reason, the following articles are not Caribbean Basin country end products:(1) Tuna, prepared or preserved in any manner in airtight containers.(2) Petroleum, or any product derived from petroleum.(3) Watches and watch parts (including cases, bracelets, and straps) of whatever type including, but not limited to, mechanical, quartz digital, or quartz analog, if such watches or watch parts contain any material that is the product of any country to which the Harmonized Tariff Schedule of the United States (HTSUS) column 2 rates of duty apply (i.e., Afghanistan, Cuba, Laos, North Korea, and Vietnam).(4) Certain of the following: textiles and apparel articles; footwear, handbags, luggage, flat goods, work gloves, and leather wearing apparel; or handloomed, handmade, and folklore articles.(B) Access to the HTSUS to determine duty-free status of articles of the types listed in paragraph (1)(ii)(A)(4) of this definition is available via the Internet at https://usitc.gov/tata/hts/index.htm. In particular, see the following:(1) General Note 3(c), Products Eligible for Special Tariff treatment.(2) General Note 17, Products of Countries Designated as Beneficiary Countries under the United States- Caribbean Basin Trade Partnership Act of 2000.(3) Section XXII, Chapter 98, Subchapter II, Articles Exported and Returned, Advanced or Improved Abroad, U.S. Note 7(b).(4) Section XXII, Chapter 98, Subchapter XX, Goods Eligible for Special Tariff Benefits under the United States-Caribbean Basin Trade Partnership Act; and(2) Refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the acquisition, includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself." class="agov-definition">Caribbean Basin country end products: (1) Tuna, prepared or preserved in any manner in airtight containers. (2) Petroleum, or any product derived from petroleum. (3) Watches and watch parts (including cases, bracelets, and straps) of whatever type including, but not limited to, mechanical, quartz digital, or quartz analog, if such watches or watch parts contain any material that is the product of any country to which the Harmonized Tariff Schedule of the United States (HTSUS) column 2 rates of duty apply (i.e., Afghanistan, Cuba, Laos, North Korea, and Vietnam). (4) Certain of the following: textiles and apparel articles; footwear, handbags, luggage, flat goods, work gloves, and leather wearing apparel; or handloomed, handmade, and folklore articles. (B) Access to the HTSUS to determine duty-free status of articles of the types listed in paragraph (1)(ii)(A)(4) of this definition is available via the Internet at <a class="xref" href="https://usitc.gov/tata/hts/index.htm" target="_blank" title="https://usitc.gov/tata/hts/index.htm" aria-label="https://usitc.gov/tata/hts/index.htm. Link 117">https://usitc.gov/tata/hts/index.htm</a>. In particular, see the following: (1) General Note 3(c), Products Eligible for Special Tariff treatment. (2) General Note 17, Products of Countries Designated as Beneficiary Countries under the United States- Caribbean Basin Trade Partnership Act of 2000. (3) Section XXII, Chapter 98, Subchapter II, Articles Exported and Returned, Advanced or Improved Abroad, U.S. Note 7(b). (4) Section XXII, Chapter 98, Subchapter XX, Goods Eligible for Special Tariff Benefits under the United States-Caribbean Basin Trade Partnership Act; and (2) Refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition, includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself. <i data-tippy-content="Civil aircraft and related articles means-(1) All aircraft other than aircraft to be purchased for use by the Department of Defense or the U.S. Coast Guard;(2) The engines (and parts and components for incorporation into the engines) of these aircraft;(3) Any other parts, components, and subassemblies for incorporation into the aircraft; and(4) Any ground flight simulators, and parts and components of these simulators, for use with respect to the aircraft, whether to be used as original or replacement equipment in the manufacture, repair, maintenance, rebuilding, modification, or conversion of the aircraft and without regard to whether the aircraft or articles receive duty-free treatment under section 601(a)(2) of the Trade Agreements Act." class="agov-definition">Civil aircraft and related articles means- (1) All aircraft other than aircraft to be purchased for use by the Department of Defense or the U.S. Coast Guard; (2) The engines (and parts and components for incorporation into the engines) of these aircraft; (3) Any other parts, components, and subassemblies for incorporation into the aircraft; and (4) Any ground flight simulators, and parts and components of these simulators, for use with respect to the aircraft, whether to be used as original or replacement equipment in the manufacture, repair, maintenance, rebuilding, modification, or conversion of the aircraft and without regard to whether the aircraft or articles receive duty-free treatment under section 601(a)(2) of the Trade Agreements Act. Component means an article, material, or supply incorporated directly into an end product or <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material. <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">Construction material means an article, material, or supply brought to the <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction site by a contractor or subcontractor for incorporation into the <i data-tippy-content='Building or work means construction activity as distinguished from manufacturing, furnishing of materials, or servicing and maintenance work. The terms include, without limitation, buildings, structures, and improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, pumping stations, heavy generators, railways, airports, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, dredging, shoring, rehabilitation and reactivation of plants, scaffolding, drilling, blasting, excavating, clearing, and landscaping. The manufacture or furnishing of materials, articles, supplies, or equipment (whether or not a Federal or State agency acquires title to such materials, articles, supplies, or equipment during the course of the manufacture or furnishing, or owns the materials from which they are manufactured or furnished) is not "building" or "work" within the meaning of this definition unless conducted in connection with and at the site of such building or work as is described in the foregoing sentence, or under the United States Housing Act of 1937 and the Housing Act of 1949 in the construction or development of the project.' class="agov-definition">building or work. The term also includes an item brought to the site preassembled from articles, materials, or <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies. However, <i data-tippy-content="Emergency, as used in 6.208, 13.201, 13.500, 18.001, 18.202, 18.203, and subpart 26.2, means any occasion or instance for which, in the determination of the President, Federal assistance is needed to supplement State and local efforts and capabilities to save lives and to protect property and public health and safety, or to lessen or avert the threat of a catastrophe in any part of the United States (42 U.S.C. 5122)." class="agov-definition">emergency life safety systems, such as <i data-tippy-content="Emergency, as used in 6.208, 13.201, 13.500, 18.001, 18.202, 18.203, and subpart 26.2, means any occasion or instance for which, in the determination of the President, Federal assistance is needed to supplement State and local efforts and capabilities to save lives and to protect property and public health and safety, or to lessen or avert the threat of a catastrophe in any part of the United States (42 U.S.C. 5122)." class="agov-definition">emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public <i data-tippy-content='Building or work means construction activity as distinguished from manufacturing, furnishing of materials, or servicing and maintenance work. The terms include, without limitation, buildings, structures, and improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, pumping stations, heavy generators, railways, airports, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, dredging, shoring, rehabilitation and reactivation of plants, scaffolding, drilling, blasting, excavating, clearing, and landscaping. The manufacture or furnishing of materials, articles, supplies, or equipment (whether or not a Federal or State agency acquires title to such materials, articles, supplies, or equipment during the course of the manufacture or furnishing, or owns the materials from which they are manufactured or furnished) is not "building" or "work" within the meaning of this definition unless conducted in connection with and at the site of such building or work as is described in the foregoing sentence, or under the United States Housing Act of 1937 and the Housing Act of 1949 in the construction or development of the project.' class="agov-definition">building or work and that are produced as complete systems, are evaluated as a single and distinct <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material regardless of when or how the individual parts or components of those systems are delivered to the <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction site. Materials purchased directly by the Government are <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies, not <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material. <i data-tippy-content="Cost of components means-(1) For components purchased by the contractor, the acquisition 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(2) For components manufactured by the contractor, all costs associated with the manufacture of the component, including transportation costs as described in paragraph (1) of this definition, plus allocable overhead costs, but excluding profit. Cost of components does not include any costs associated with the manufacture of the end product." class="agov-definition">Cost of components means- (1) For components purchased by the contractor, the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition cost, including transportation costs to the place of incorporation into the end product or <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">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 (2) For components manufactured by the contractor, all costs associated with the manufacture of the component, including transportation costs as described in paragraph (1) of this definition, plus allocable overhead costs, but excluding profit. <i data-tippy-content="Cost of components means-(1) For components purchased by the contractor, the acquisition 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(2) For components manufactured by the contractor, all costs associated with the manufacture of the component, including transportation costs as described in paragraph (1) of this definition, plus allocable overhead costs, but excluding profit. Cost of components does not include any costs associated with the manufacture of the end product." class="agov-definition">Cost of components does not include any costs associated with the manufacture of the end product. Critical component means a component that is mined, produced, or manufactured in the United States and deemed critical to the U.S. supply chain. The list of critical components is at <a class="xref fm:ParaNumOnly" href="#FAR_25_105" title="25.105" aria-label="25.105. Link 118">25.105</a>. <i data-tippy-content="Critical item means a domestic construction material or domestic end product that is deemed critical to the U.S. supply chain. The list of critical items is at 25.105." class="agov-definition">Critical item means a <i data-tippy-content="Domestic construction material means-(1) For use in subparts other than 25.6—(i) For construction material that does not consist wholly or predominantly of iron or steel or a combination of both—(A) An unmanufactured construction material mined or produced in the United States; or(B) A construction material manufactured in the United States, if–(1) The cost of the components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.201(c)).Components of unknown origin are treated as foreign; or(2) The construction material is a commercially available off-the-shelf (COTS) item; or(ii) For construction material that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the United States if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in such construction material. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the construction material contains multiple components, the cost of all the materials used in such construction material is calculated in accordance with the definition of “cost of components” in this section; or(3) For use in subpart  25.6, see the definition in 25.601." class="agov-definition">domestic construction material or <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end product that is deemed critical to the U.S. supply chain. The list of <i data-tippy-content="Critical item means a domestic construction material or domestic end product that is deemed critical to the U.S. supply chain. The list of critical items is at 25.105." class="agov-definition">critical items is at <a class="xref fm:ParaNumOnly" href="#FAR_25_105" title="25.105" aria-label="25.105. Link 118">25.105</a>. <i data-tippy-content='Designated country means any of the following countries:(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Australia, Austria,, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as "the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)"), Ukraine, or United Kingdom);(2) A Free Trade Agreement (FTA) country (Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore);(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago).' class="agov-definition">Designated country means any of the following countries: (1) A <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Australia, Austria,, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as "the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)"), Ukraine, or United Kingdom); (2) A Free Trade Agreement (FTA) country (Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore); (3) A <i data-tippy-content="Least developed country means any of the following countries: Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia." class="agov-definition">least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or (4) A <i data-tippy-content="Caribbean Basin country means any of the following countries: Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago." class="agov-definition">Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago). <i data-tippy-content="Designated country end product means a WTO GPA country end product, an FTA country end product, a least developed country end product, or a Caribbean Basin country end product." class="agov-definition">Designated country end product means a <i data-tippy-content="WTO GPA country end product means an article that-(1) Is wholly the growth, product, or manufacture of a WTO GPA country; or(2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in a WTO GPA country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. The term refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the end product includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself." class="agov-definition">WTO GPA country end product, an FTA country end product, a <i data-tippy-content="Least developed country end product means an article that-(1) Is wholly the growth, product, or manufacture of a least developed country; or(2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in a least developed country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. The term refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the end product, includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself." class="agov-definition">least developed country end product, or a <i data-tippy-content="Caribbean Basin country end product—(1) Means an article that–(i)(A) Is wholly the growth, product, or manufacture of a Caribbean Basin country; or(B) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in a Caribbean Basin country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed; and(ii) Is not excluded from duty-free treatment for Caribbean countries under 19 U.S.C. 2703(b).(A) For this reason, the following articles are not Caribbean Basin country end products:(1) Tuna, prepared or preserved in any manner in airtight containers.(2) Petroleum, or any product derived from petroleum.(3) Watches and watch parts (including cases, bracelets, and straps) of whatever type including, but not limited to, mechanical, quartz digital, or quartz analog, if such watches or watch parts contain any material that is the product of any country to which the Harmonized Tariff Schedule of the United States (HTSUS) column 2 rates of duty apply (i.e., Afghanistan, Cuba, Laos, North Korea, and Vietnam).(4) Certain of the following: textiles and apparel articles; footwear, handbags, luggage, flat goods, work gloves, and leather wearing apparel; or handloomed, handmade, and folklore articles.(B) Access to the HTSUS to determine duty-free status of articles of the types listed in paragraph (1)(ii)(A)(4) of this definition is available via the Internet at https://usitc.gov/tata/hts/index.htm. In particular, see the following:(1) General Note 3(c), Products Eligible for Special Tariff treatment.(2) General Note 17, Products of Countries Designated as Beneficiary Countries under the United States- Caribbean Basin Trade Partnership Act of 2000.(3) Section XXII, Chapter 98, Subchapter II, Articles Exported and Returned, Advanced or Improved Abroad, U.S. Note 7(b).(4) Section XXII, Chapter 98, Subchapter XX, Goods Eligible for Special Tariff Benefits under the United States-Caribbean Basin Trade Partnership Act; and(2) Refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the acquisition, includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself." class="agov-definition">Caribbean Basin country end product. <i data-tippy-content="Domestic construction material means-(1) For use in subparts other than 25.6—(i) For construction material that does not consist wholly or predominantly of iron or steel or a combination of both—(A) An unmanufactured construction material mined or produced in the United States; or(B) A construction material manufactured in the United States, if–(1) The cost of the components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.201(c)).Components of unknown origin are treated as foreign; or(2) The construction material is a commercially available off-the-shelf (COTS) item; or(ii) For construction material that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the United States if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in such construction material. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the construction material contains multiple components, the cost of all the materials used in such construction material is calculated in accordance with the definition of “cost of components” in this section; or(3) For use in subpart  25.6, see the definition in 25.601." class="agov-definition">Domestic construction material means- (1) For use in subparts other than 25.6— (i) For <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material that does not consist wholly or <i data-tippy-content="Predominantly of iron or steel or a combination of both means that the cost of the iron and steel content exceeds 50 percent of the total cost of all its components. The cost of iron and steel is the cost of the iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the product and a good faith estimate of the cost of iron or steel components excluding COTS fasteners." class="agov-definition">predominantly of iron or steel or a combination of both— (A) An unmanufactured <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material mined or produced in the United States; or (B) A <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material manufactured in the United States, if– (1) The cost of the components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">alternate percentage is established for a contract in accordance with FAR <a class="xref fm:ParaNumOnly" href="#FAR_25_201" title="25.201" aria-label="25.201. Link 102">25.201</a>(c)).Components of unknown origin are treated as foreign; or (2) The <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material is a <i data-tippy-content="Commercially available off-the-shelf (COTS) item — (1) Means any item of supply (including construction material) that is–(i) A commercial product (as defined in paragraph (1) of the definition of “commercial product” in this section);(ii) Sold in substantial quantities in the commercial marketplace; and(iii) Offered to the Government, under a contract or subcontract at any tier, without modification, in the same form in which it is sold in the commercial marketplace; and(2) Does not include bulk cargo, as defined in 46 U.S.C. 40102(4), such as agricultural products and petroleum products." class="agov-definition">commercially available off-the-shelf (COTS) item; or (ii) For <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material that consists wholly or <i data-tippy-content="Predominantly of iron or steel or a combination of both means that the cost of the iron and steel content exceeds 50 percent of the total cost of all its components. The cost of iron and steel is the cost of the iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the product and a good faith estimate of the cost of iron or steel components excluding COTS fasteners." class="agov-definition">predominantly of iron or steel or a combination of both, a <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material manufactured in the United States if the cost of <i data-tippy-content="Foreign iron and steel means iron or steel products not produced in the United States. Produced in the United States means that all manufacturing processes of the iron or steel must take place in the United States, from the initial melting stage through the application of coatings, except metallurgical processes involving refinement of steel additives. The origin of the elements of the iron or steel is not relevant to the determination of whether it is domestic or foreign." class="agov-definition">foreign iron and steel constitutes less than 5 percent of the cost of all the components used in such <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material. The cost of <i data-tippy-content="Foreign iron and steel means iron or steel products not produced in the United States. Produced in the United States means that all manufacturing processes of the iron or steel must take place in the United States, from the initial melting stage through the application of coatings, except metallurgical processes involving refinement of steel additives. The origin of the elements of the iron or steel is not relevant to the determination of whether it is domestic or foreign." class="agov-definition">foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS <i data-tippy-content="Fastener means a hardware device that mechanically joins or affixes two or more objects together. Examples of fasteners are nuts, bolts, pins, rivets, nails, clips, and screws." class="agov-definition">fasteners. Iron or steel components of unknown origin are treated as foreign. If the <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material contains multiple components, the cost of all the materials used in such <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material is calculated in accordance with the definition of “<i data-tippy-content="Cost of components means-(1) For components purchased by the contractor, the acquisition 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(2) For components manufactured by the contractor, all costs associated with the manufacture of the component, including transportation costs as described in paragraph (1) of this definition, plus allocable overhead costs, but excluding profit. Cost of components does not include any costs associated with the manufacture of the end product." class="agov-definition">cost of components” in this section; or (3) For use in <a class="xref fm:Subpart" href="#FAR_Subpart_25_6" title="subpart  25.6" aria-label="subpart聽 25.6. Link 121">subpart  25.6</a>, see the definition in <a class="xref fm:ParaNumOnly" href="#FAR_25_601" title="25.601" aria-label="25.601. Link 122">25.601</a>. <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">Domestic end product means- (1) For an end product that does not consist wholly or <i data-tippy-content="Predominantly of iron or steel or a combination of both means that the cost of the iron and steel content exceeds 50 percent of the total cost of all its components. The cost of iron and steel is the cost of the iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the product and a good faith estimate of the cost of iron or steel components excluding COTS fasteners." class="agov-definition">predominantly of iron or steel or a combination of both— (i) An unmanufactured end product mined or produced in the United States; (ii) An end product manufactured in the United States, if– (A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">alternate percentage is established for a contract in accordance with FAR <a class="xref fm:ParaNumOnly" href="#FAR_25_101" title="25.101" aria-label="25.101. Link 101">25.101</a>(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or (B) The end product is a COTS item; or (2) For an end product that consists wholly or <i data-tippy-content="Predominantly of iron or steel or a combination of both means that the cost of the iron and steel content exceeds 50 percent of the total cost of all its components. The cost of iron and steel is the cost of the iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the product and a good faith estimate of the cost of iron or steel components excluding COTS fasteners." class="agov-definition">predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of <i data-tippy-content="Foreign iron and steel means iron or steel products not produced in the United States. Produced in the United States means that all manufacturing processes of the iron or steel must take place in the United States, from the initial melting stage through the application of coatings, except metallurgical processes involving refinement of steel additives. The origin of the elements of the iron or steel is not relevant to the determination of whether it is domestic or foreign." class="agov-definition">foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of <i data-tippy-content="Foreign iron and steel means iron or steel products not produced in the United States. Produced in the United States means that all manufacturing processes of the iron or steel must take place in the United States, from the initial melting stage through the application of coatings, except metallurgical processes involving refinement of steel additives. The origin of the elements of the iron or steel is not relevant to the determination of whether it is domestic or foreign." class="agov-definition">foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS <i data-tippy-content="Fastener means a hardware device that mechanically joins or affixes two or more objects together. Examples of fasteners are nuts, bolts, pins, rivets, nails, clips, and screws." class="agov-definition">fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "<i data-tippy-content="Cost of components means-(1) For components purchased by the contractor, the acquisition 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(2) For components manufactured by the contractor, all costs associated with the manufacture of the component, including transportation costs as described in paragraph (1) of this definition, plus allocable overhead costs, but excluding profit. Cost of components does not include any costs associated with the manufacture of the end product." class="agov-definition">cost of components" in this section. <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">Domestic offer means an <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer of a <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end product. When the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation specifies that award will be made on a group of <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line items, a <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer means an <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer where the proposed price of the <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end products exceeds 50 percent of the total proposed price of the group. <i data-tippy-content="Eligible offer means an offer of an eligible product. When the solicitation specifies that award will be made on a group of line items, an eligible offer means a foreign offer where the combined proposed price of the eligible products and the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">Eligible offer means an <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer of an <i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">eligible product. When the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation specifies that award will be made on a group of <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line items, an <i data-tippy-content="Eligible offer means an offer of an eligible product. When the solicitation specifies that award will be made on a group of line items, an eligible offer means a foreign offer where the combined proposed price of the eligible products and the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">eligible offer means a foreign offer where the combined proposed price of the <i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">eligible products and the <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end products exceeds 50 percent of the total proposed price of the group. <i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">Eligible product means a foreign end product, <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material, or service that, due to applicability of a trade agreement to a particular <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition, is not subject to discriminatory treatment. End product means those articles, materials, and <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies to be acquired for public use. <i data-tippy-content="Fastener means a hardware device that mechanically joins or affixes two or more objects together. Examples of fasteners are nuts, bolts, pins, rivets, nails, clips, and screws." class="agov-definition">Fastener means a hardware device that mechanically joins or affixes two or more objects together. Examples of <i data-tippy-content="Fastener means a hardware device that mechanically joins or affixes two or more objects together. Examples of fasteners are nuts, bolts, pins, rivets, nails, clips, and screws." class="agov-definition">fasteners are nuts, bolts, pins, rivets, nails, clips, and screws. Foreign construction material means a <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material other than a <i data-tippy-content="Domestic construction material means-(1) For use in subparts other than 25.6—(i) For construction material that does not consist wholly or predominantly of iron or steel or a combination of both—(A) An unmanufactured construction material mined or produced in the United States; or(B) A construction material manufactured in the United States, if–(1) The cost of the components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.201(c)).Components of unknown origin are treated as foreign; or(2) The construction material is a commercially available off-the-shelf (COTS) item; or(ii) For construction material that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the United States if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in such construction material. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the construction material contains multiple components, the cost of all the materials used in such construction material is calculated in accordance with the definition of “cost of components” in this section; or(3) For use in subpart  25.6, see the definition in 25.601." class="agov-definition">domestic construction material. Foreign contractor means a contractor or subcontractor organized or existing under the laws of a country other than the United States. Foreign end product means an end product other than a <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end product. <i data-tippy-content="Foreign iron and steel means iron or steel products not produced in the United States. Produced in the United States means that all manufacturing processes of the iron or steel must take place in the United States, from the initial melting stage through the application of coatings, except metallurgical processes involving refinement of steel additives. The origin of the elements of the iron or steel is not relevant to the determination of whether it is domestic or foreign." class="agov-definition">Foreign iron and steel means iron or steel products not produced in the United States. Produced in the United States means that all manufacturing processes of the iron or steel must take place in the United States, from the initial melting stage through the application of coatings, except metallurgical processes involving refinement of steel additives. The origin of the elements of the iron or steel is not relevant to the determination of whether it is domestic or foreign. Foreign offer means any <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer other than a <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer. <i data-tippy-content="Free Trade Agreement country means Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore." class="agov-definition">Free Trade Agreement country means Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore. <i data-tippy-content="Free Trade Agreement country end product means an article that-(1) Is wholly the growth, product, or manufacture of a Free Trade Agreement (FTA) country; or(2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in an FTA country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. The term refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the end product, includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself." class="agov-definition">Free Trade Agreement country end product means an article that- (1) Is wholly the growth, product, or manufacture of a Free Trade Agreement (FTA) country; or (2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in an FTA country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. The term refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the end product, includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself. <i data-tippy-content="Israeli end product means an article that-(1) Is wholly the growth, product, or manufacture of Israel; or(2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in Israel into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed." class="agov-definition">Israeli end product means an article that- (1) Is wholly the growth, product, or manufacture of Israel; or (2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in Israel into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. <i data-tippy-content="Least developed country means any of the following countries: Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia." class="agov-definition">Least developed country means any of the following countries: Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia. <i data-tippy-content="Least developed country end product means an article that-(1) Is wholly the growth, product, or manufacture of a least developed country; or(2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in a least developed country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. The term refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the end product, includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself." class="agov-definition">Least developed country end product means an article that- (1) Is wholly the growth, product, or manufacture of a <i data-tippy-content="Least developed country means any of the following countries: Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia." class="agov-definition">least developed country; or (2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in a <i data-tippy-content="Least developed country means any of the following countries: Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia." class="agov-definition">least developed country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. The term refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the end product, includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself. Noneligible offer means an <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer of a noneligible product. Noneligible product means a foreign end product that is not an <i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">eligible product. <i data-tippy-content="Predominantly of iron or steel or a combination of both means that the cost of the iron and steel content exceeds 50 percent of the total cost of all its components. The cost of iron and steel is the cost of the iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the product and a good faith estimate of the cost of iron or steel components excluding COTS fasteners." class="agov-definition">Predominantly of iron or steel or a combination of both means that the cost of the iron and steel content exceeds 50 percent of the total cost of all its components. The cost of iron and steel is the cost of the iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the product and a good faith estimate of the cost of iron or steel components excluding COTS <i data-tippy-content="Fastener means a hardware device that mechanically joins or affixes two or more objects together. Examples of fasteners are nuts, bolts, pins, rivets, nails, clips, and screws." class="agov-definition">fasteners. Steel means an alloy that includes at least 50 percent iron, between 0.02 and 2 percent carbon, and may include other elements. United States means the 50 States, the District of Columbia, and <i data-tippy-content="Outlying areas means-(1) Commonwealths(i) Puerto Rico.(ii) The Northern Mariana Islands;(2)Territories.(i) American Samoa.(ii) Guam.(iii) U.S. Virgin Islands; and(3)Minor outlying islands.(i) Baker Island.(ii) Howland Island.(iii) Jarvis Island.(iv) Johnston Atoll.(v) Kingman Reef.(vi) Midway Islands.(vii) Navassa Island.(viii) Palmyra Atoll.(ix) Wake Atoll." class="agov-definition">outlying areas. <i data-tippy-content="U.S.-made end product means an article that is mined, produced, or manufactured in the United States or that is substantially transformed in the United States into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed." class="agov-definition">U.S.-made end product means an article that is mined, produced, or manufactured in the United States or that is substantially transformed in the United States into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom. <i data-tippy-content="WTO GPA country end product means an article that-(1) Is wholly the growth, product, or manufacture of a WTO GPA country; or(2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in a WTO GPA country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. The term refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the end product includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself." class="agov-definition">WTO GPA country end product means an article that- (1) Is wholly the growth, product, or manufacture of a <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA country; or (2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in a <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. The term refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the end product includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself. </div> </article> <article class="topic nested1" aria-labelledby="ariaid-title6" id="FAR_Subpart_25_1" data-part="subpart" data-part-number="25.1"> <h2 class="title topictitle2 Subpart" id="ariaid-title6"> Subpart 25.1 - Buy American-Supplies</h2> <article class="topic nested2" aria-labelledby="ariaid-title7" id="FAR_25_100" data-part="section" data-part-number="25.100"> <h3 class="title topictitle3" id="ariaid-title7"> 25.100 Scope of subpart.</h3> <div class="body"> (a) This subpart implements- (1) <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title41-chapter83&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU0MC1jaGFwdGVyMzctZnJvbnQ%3D%7C%7C%7C0%7Cfalse%7Cprelim&edition=prelim" target="_blank" title="41 U.S.C. chapter 83" aria-label="41 U.S.C. chapter 83. Link 93">41 U.S.C. chapter 83</a>, Buy American; (2) Executive Order 10582, December 17, 1954; (3) Executive Order 13881, July 15, 2019; (4) <a class="xref" href="https://www.federalregister.gov/executive-order/14005" target="_blank" title="Executive Order 14005," aria-label="Executive Order 14005,. Link 125">Executive Order 14005,</a> January 25, 2021; and (5) Waiver of the domestic content test of the Buy American statute for <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition of commercially available off-the-shelf (COTS) items in accordance with <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section1907&num=0&edition=prelim" target="_blank" title="41 U.S.C. 1907" aria-label="41 U.S.C. 1907. Link 126">41 U.S.C. 1907</a>, but see <a class="xref fm:ParaNumOnly" href="#FAR_25_101" title="25.101" aria-label="25.101. Link 101">25.101</a>(a)(2)(ii). (b) It applies to <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies acquired for use in the United States, including <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies acquired under contracts set aside for small business concerns, if- (1) The supply contract exceeds the <i data-tippy-content="Micro-purchase threshold means $10,000, except it means-(1) For acquisitions of construction subject to 40 U.S.C. chapter 31, subchapter IV, Wage Rate Requirements (Construction), $2,000;(2) For acquisitions of services subject to 41 U.S.C. chapter 67, Service Contract Labor Standards, $2,500;  (3) For acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation; to facilitate defense against or recovery from cyber, nuclear, biological, chemical or radiological attack; to support a request from the Secretary of State or the Administrator of the United States Agency for International Development to facilitate provision of international disaster assistance pursuant to 22 U.S.C. 2292 et seq.; or to support response to an emergency or major disaster (42 U.S.C. 5122), as described in 13.201(g)(1), except for construction subject to 40 U.S.C. chapter 31, subchapter IV, Wage Rate Requirements (Construction) (41 U.S.C. 1903)–(i) $20,000 in the case of any contract to be awarded and performed, or purchase to be made, inside the United States; and(ii) $35,000 in the case of any contract to be awarded and performed, or purchase to be made, outside the United States; and(4) For acquisitions of supplies or services from institutions of higher education (20 U.S.C. 1001(a)) or related or affiliated nonprofit entities, or from nonprofit research organizations or independent research institutes—(i) $10,000; or(ii) A higher threshold, as determined appropriate by the head of the agency and consistent with clean audit findings under 31 U.S.C. chapter 75, Requirements for Single Audits; an internal institutional risk assessment; or State law." class="agov-definition">micro-purchase threshold; or (2) The supply portion of a contract for services that involves the furnishing of <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies (e.g., lease) exceeds the <i data-tippy-content="Micro-purchase threshold means $10,000, except it means-(1) For acquisitions of construction subject to 40 U.S.C. chapter 31, subchapter IV, Wage Rate Requirements (Construction), $2,000;(2) For acquisitions of services subject to 41 U.S.C. chapter 67, Service Contract Labor Standards, $2,500;  (3) For acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation; to facilitate defense against or recovery from cyber, nuclear, biological, chemical or radiological attack; to support a request from the Secretary of State or the Administrator of the United States Agency for International Development to facilitate provision of international disaster assistance pursuant to 22 U.S.C. 2292 et seq.; or to support response to an emergency or major disaster (42 U.S.C. 5122), as described in 13.201(g)(1), except for construction subject to 40 U.S.C. chapter 31, subchapter IV, Wage Rate Requirements (Construction) (41 U.S.C. 1903)–(i) $20,000 in the case of any contract to be awarded and performed, or purchase to be made, inside the United States; and(ii) $35,000 in the case of any contract to be awarded and performed, or purchase to be made, outside the United States; and(4) For acquisitions of supplies or services from institutions of higher education (20 U.S.C. 1001(a)) or related or affiliated nonprofit entities, or from nonprofit research organizations or independent research institutes—(i) $10,000; or(ii) A higher threshold, as determined appropriate by the head of the agency and consistent with clean audit findings under 31 U.S.C. chapter 75, Requirements for Single Audits; an internal institutional risk assessment; or State law." class="agov-definition">micro-purchase threshold. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title8" id="FAR_25_101" data-part="section" data-part-number="25.101"> <h3 class="title topictitle3" id="ariaid-title8"> 25.101 General.</h3> <div class="body conbody"> (a) The Buy American statute restricts the purchase of <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies that are not <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end products. For manufactured end products, the Buy American statute, <a class="xref" href="https://www.federalregister.gov/executive-order/13881" target="_blank" title="E.O. 13881," aria-label="E.O. 13881,. Link 128">E.O. 13881,</a> and <a class="xref" href="https://www.federalregister.gov/executive-order/14005" target="_blank" title="E.O. 14005" aria-label="E.O. 14005. Link 129">E.O. 14005</a> use a two-part test to define a <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end product. (1) The article must be manufactured in the United States; and (2) (i) Except for an end product that consists wholly or predominantly of iron or steel or a combination of both, the cost of domestic components shall exceed 60 percent of the cost of all the components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029. But see paragraph (d) of this section. In accordance with <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section1907&num=0&edition=prelim" target="_blank" title="41 U.S.C. 1907" aria-label="41 U.S.C. 1907. Link 126">41 U.S.C. 1907</a>, this domestic content test of the Buy American statute has been waived for <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions of COTS items (see <a class="xref fm:ParaNumOnly" href="/far/part-12#FAR_12_505" title="12.505" aria-label="12.505. Link 131">12.505</a>(a)) (but see paragraph (a)(2)(ii) of this section). (ii) For an end product that consists wholly or <i data-tippy-content="Predominantly of iron or steel or a combination of both means that the cost of the iron and steel content exceeds 50 percent of the total cost of all its components. The cost of iron and steel is the cost of the iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the product and a good faith estimate of the cost of iron or steel components excluding COTS fasteners." class="agov-definition">predominantly of iron or steel or a combination of both, the cost of <i data-tippy-content="Foreign iron and steel means iron or steel products not produced in the United States. Produced in the United States means that all manufacturing processes of the iron or steel must take place in the United States, from the initial melting stage through the application of coatings, except metallurgical processes involving refinement of steel additives. The origin of the elements of the iron or steel is not relevant to the determination of whether it is domestic or foreign." class="agov-definition">foreign iron and steel must constitute less than 5 percent of the cost of all the components used in the end product (see the definition of "<i data-tippy-content="Foreign iron and steel means iron or steel products not produced in the United States. Produced in the United States means that all manufacturing processes of the iron or steel must take place in the United States, from the initial melting stage through the application of coatings, except metallurgical processes involving refinement of steel additives. The origin of the elements of the iron or steel is not relevant to the determination of whether it is domestic or foreign." class="agov-definition">foreign iron and steel" at <a class="xref fm:ParaNumOnly" href="#FAR_25_003" title="25.003" aria-label="25.003. Link 99">25.003</a>). The cost of <i data-tippy-content="Foreign iron and steel means iron or steel products not produced in the United States. Produced in the United States means that all manufacturing processes of the iron or steel must take place in the United States, from the initial melting stage through the application of coatings, except metallurgical processes involving refinement of steel additives. The origin of the elements of the iron or steel is not relevant to the determination of whether it is domestic or foreign." class="agov-definition">foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS <i data-tippy-content="Fastener means a hardware device that mechanically joins or affixes two or more objects together. Examples of fasteners are nuts, bolts, pins, rivets, nails, clips, and screws." class="agov-definition">fasteners. This domestic content test of the Buy American statute has not been waived for <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions of COTS items in this category, except for COTS <i data-tippy-content="Fastener means a hardware device that mechanically joins or affixes two or more objects together. Examples of fasteners are nuts, bolts, pins, rivets, nails, clips, and screws." class="agov-definition">fasteners. (b) The Buy American statute applies to small business set-asides. A manufactured product of a small business concern is a <i data-tippy-content="U.S.-made end product means an article that is mined, produced, or manufactured in the United States or that is substantially transformed in the United States into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed." class="agov-definition">U.S.-made end product, but is not a <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end product unless it meets the domestic content test in paragraph (a)(2) of this section. (c) Exceptions that allow the purchase of a foreign end product are listed at <a class="xref fm:ParaNumOnly" href="#FAR_25_103" title="25.103" aria-label="25.103. Link 133">25.103</a>. The unreasonable cost exception is implemented through the use of an evaluation factor applied to low foreign offers that are not <i data-tippy-content="Eligible offer means an offer of an eligible product. When the solicitation specifies that award will be made on a group of line items, an eligible offer means a foreign offer where the combined proposed price of the eligible products and the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">eligible offers. The evaluation factor is not used to provide a preference for one foreign offer over another. Evaluation procedures and examples are provided in <a class="xref fm:Subpart" href="#FAR_Subpart_25_5" title="subpart  25.5" aria-label="subpart聽 25.5. Link 104">subpart  25.5</a> . (d) (1) A contract with a period of performance that spans the schedule of domestic content threshold increases specified in paragraph (a)(2)(i) of this section shall be required to comply with each increased threshold for the items in the year of delivery, unless the <i data-tippy-content="Senior procurement executive means the individual appointed pursuant to 41 U.S.C. 1702(c) who is responsible for management direction of the acquisition system of the executive agency, including implementation of the unique acquisition policies, regulations, and standards of the executive agency." class="agov-definition">senior procurement executive of the <i data-tippy-content="Contracting means purchasing, renting, leasing, or otherwise obtaining supplies or services from nonfederal sources. Contracting includes description (but not determination) of supplies and services required, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration. It does not include making grants or cooperative agreements." class="agov-definition">contracting agency allows for application of an <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">alternate domestic content test for that contract under which the domestic content threshold in effect at time of contract award will apply to the entire period of performance for the contract. This authority is not delegable. The senior procurement executive shall consult the Office of Management and Budget's Made in America Office before allowing the use of the <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">alternate domestic content test. (2)When a <i data-tippy-content="Senior procurement executive means the individual appointed pursuant to 41 U.S.C. 1702(c) who is responsible for management direction of the acquisition system of the executive agency, including implementation of the unique acquisition policies, regulations, and standards of the executive agency." class="agov-definition">senior procurement executive allows for application of an <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">alternate domestic content test for a contract— (i)See <a class="xref fm:ParaNumOnly" href="#FAR_25_1101" title="25.1101" aria-label="25.1101. Link 135">25.1101</a>(a)(1)(ii) or <a class="xref fm:ParaNumOnly" href="#FAR_25_1101" title="25.1101" aria-label="25.1101. Link 135">25.1101</a>(b)(1)(v) for use of the appropriate <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternate clause to reflect the domestic content threshold that will apply to the entire period of performance for that contract; and (ii)Use the fill-in at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_213_4" title="52.213-4" aria-label="52.213-4. Link 137">52.213-4</a>(b)(1)(xvii)(B) instead of including <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_1" title="52.225-1" aria-label="52.225-1. Link 138">52.225-1</a> <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternate I when using <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_213_4" title="52.213-4" aria-label="52.213-4. Link 137">52.213-4</a>, Terms and Conditions—Simplified <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">Acquisitions (Other Than <i data-tippy-content="Commercial product means— (1) A product, other than real property, that is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes, and–(i) Has been sold, leased, or licensed to the general public; or(ii) Has been offered for sale, lease, or license to the general public;(2) A product that evolved from a product described in paragraph (1) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace, but will be available in the commercial marketplace in time to satisfy the delivery requirements under a Government solicitation;(3) A product that would satisfy a criterion expressed in paragraph (1) or (2) of this definition, except for-(i) Modifications of a type customarily available in the commercial marketplace; or(ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet Federal Government requirements. “Minor modifications” means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component, or change the purpose of a process. Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product. Dollar values and percentages may be used as guideposts, but are not conclusive evidence that a modification is minor;(4) Any combination of products meeting the requirements of paragraph (1), (2), or (3) of this definition that are of a type customarily combined and sold in combination to the general public;(5) A product, or combination of products, referred to in paragraphs (1) through (4) of this definition, even though the product, or combination of products, is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor; or(6) A nondevelopmental item, if the procuring agency determines the product was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple State and local governments or to multiple foreign governments." class="agov-definition">Commercial Products and <i data-tippy-content="Commercial service means— (1) Installation services, maintenance services, repair services, training services, and other services if–(i) Such services are procured for support of a commercial product as defined in this section, regardless of whether such services are provided by the same source or at the same time as the commercial product; and(ii) The source of such services provides similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government;(2) Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions. For purposes of these services–(i)Catalog price means a price included in a catalog, price list, schedule, or other form that is regularly maintained by the manufacturer or vendor, is either published or otherwise available for inspection by customers, and states prices at which sales are currently, or were last, made to a significant number of buyers constituting the general public; and(ii)Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from sources independent of the offerors; or(3) A service referred to in paragraph (1) or (2) of this definition, even though the service is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor." class="agov-definition">Commercial Services). </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title9" id="FAR_25_102" data-part="section" data-part-number="25.102"> <h3 class="title topictitle3" id="ariaid-title9"> 25.102 Policy.</h3> <div class="body conbody"> Except as provided in <a class="xref fm:ParaNumOnly" href="#FAR_25_103" title="25.103" aria-label="25.103. Link 133">25.103</a>, acquire only <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end products for public use inside the United States. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title10" id="FAR_25_103" data-part="section" data-part-number="25.103"> <h3 class="title topictitle3" id="ariaid-title10"> 25.103 Exceptions.</h3> <div class="body conbody"> When one of the following exceptions applies, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer may acquire a foreign end product without regard to the restrictions of the Buy American statute: (a) Public interest. The head of the agency may make a determination that domestic preference would be inconsistent with the public interest. This exception applies when an agency has an agreement with a foreign government that provides a blanket exception to the Buy American statute. (b) Nonavailability. The Buy American statute does not apply with respect to articles, materials, or <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies if articles, materials, or <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies of the class or kind to be acquired, either as end items or components, are not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality. (1) Class determinations. (i) A nonavailability determination has been made for the articles listed in <a class="xref fm:ParaNumOnly" href="#FAR_25_104" title="25.104" aria-label="25.104. Link 141">25.104</a>. This determination does not necessarily mean that there is no domestic source for the listed items, but that domestic sources can only meet 50 percent or less of total U.S. Government and nongovernment demand. (ii) Before <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition of an article on the list, the procuring agency is responsible to conduct market research appropriate to the circumstances, including seeking of domestic sources. This applies to <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition of an article as- (A) An end product; or (B) A significant component (valued at more than 50 percent of the value of all the components). (iii) The determination in paragraph (b)(1)(i) of this section does not apply if the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer learns at any time before the time designated for receipt of bids in sealed bidding or final <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers in negotiation that an article on the list is available domestically in sufficient and reasonably available commercial quantities of a satisfactory quality to meet the requirements of the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation. The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must- (A) Ensure that the appropriate Buy American statute provision and clause are included in the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation (see <a class="xref fm:ParaNumOnly" href="#FAR_25_1101" title="25.1101" aria-label="25.1101. Link 135">25.1101</a>(a), <a class="xref fm:ParaNumOnly" href="#FAR_25_1101" title="25.1101" aria-label="25.1101. Link 135">25.1101</a>(b), or <a class="xref fm:ParaNumOnly" href="#FAR_25_1102" title="25.1102" aria-label="25.1102. Link 144">25.1102</a>); (B) Specify in the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation that the article is available domestically and that offerors and contractors may not treat foreign components of the same class or kind as domestic components; and (C) Submit a copy of supporting documentation to the appropriate council identified in <a class="xref fm:ParaNumOnly" href="/far/part-1#FAR_1_201_1" title="1.201-1" aria-label="1.201-1. Link 145">1.201-1</a>, in accordance with agency procedures, for possible removal of the article from the list. (2) Individual determinations. (i) The head of the contracting activity may make a determination that an article, material, or supply is not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities of a satisfactory quality. A determination is not required before January 1, 2030, if there is an <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer for a foreign end product that exceeds 55 percent domestic content (see <a class="xref fm:ParaNumOnly" href="#FAR_25_106" title="25.106" aria-label="25.106. Link 146">25.106</a>(b)(2) and <a class="xref fm:ParaNumOnly" href="#FAR_25_106" title="25.106" aria-label="25.106. Link 146">25.106</a>(c)(2)). (ii) If the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer considers that the nonavailability of an article is likely to affect future <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer may submit a copy of the determination and supporting documentation to the appropriate council identified in <a class="xref fm:ParaNumOnly" href="/far/part-1#FAR_1_201_1" title="1.201-1" aria-label="1.201-1. Link 145">1.201-1</a>, in accordance with agency procedures, for possible addition to the list in <a class="xref fm:ParaNumOnly" href="#FAR_25_104" title="25.104" aria-label="25.104. Link 141">25.104</a>. (3) A written determination is not required if all of the following conditions are present: (i) The <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition was conducted through use of full and open competition. (ii) The <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition was synopsized in accordance with <a class="xref fm:ParaNumOnly" href="/far/part-5#FAR_5_201" title="5.201" aria-label="5.201. Link 150">5.201</a>. (iii) No <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer for a <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end product was received. (c) Unreasonable cost. The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer may determine that the cost of a <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end product would be unreasonable, in accordance with <a class="xref fm:ParaNumOnly" href="#FAR_25_106" title="25.106" aria-label="25.106. Link 146">25.106</a> and <a class="xref fm:Subpart" href="#FAR_Subpart_25_5" title="subpart  25.5" aria-label="subpart聽 25.5. Link 104">subpart  25.5</a>. (d) Resale. The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer may purchase foreign end products specifically for commissary resale. (e) <i data-tippy-content='Information technology means any equipment, or interconnected system(s) or subsystem(s) of equipment, that is used in the automatic acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information by the agency.(1) For purposes of this definition, equipment is used by an agency if the equipment is used by the agency directly or is used by a contractor under a contract with the agency that requires-(i) Its use; or(ii) To a significant extent, its use in the performance of a service or the furnishing of a product.(2) The term "information technology" includes computers, ancillary equipment (including imaging peripherals, input, output, and storage devices necessary for security and surveillance), peripheral equipment designed to be controlled by the central processing unit of a computer, software, firmware and similar procedures, services (including support services), and related resources.(3) The term "information technology" does not include any equipment that-(i) Is acquired by a contractor incidental to a contract; or(ii) Contains imbedded information technology that is used as an integral part of the product, but the principal function of which is not the acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information. For example, HVAC (heating, ventilation, and air conditioning) equipment, such as thermostats or temperature control devices, and medical equipment where information technology is integral to its operation, are not information technology.' class="agov-definition">Information technology that is a <i data-tippy-content="Commercial product means— (1) A product, other than real property, that is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes, and–(i) Has been sold, leased, or licensed to the general public; or(ii) Has been offered for sale, lease, or license to the general public;(2) A product that evolved from a product described in paragraph (1) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace, but will be available in the commercial marketplace in time to satisfy the delivery requirements under a Government solicitation;(3) A product that would satisfy a criterion expressed in paragraph (1) or (2) of this definition, except for-(i) Modifications of a type customarily available in the commercial marketplace; or(ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet Federal Government requirements. “Minor modifications” means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component, or change the purpose of a process. Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product. Dollar values and percentages may be used as guideposts, but are not conclusive evidence that a modification is minor;(4) Any combination of products meeting the requirements of paragraph (1), (2), or (3) of this definition that are of a type customarily combined and sold in combination to the general public;(5) A product, or combination of products, referred to in paragraphs (1) through (4) of this definition, even though the product, or combination of products, is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor; or(6) A nondevelopmental item, if the procuring agency determines the product was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple State and local governments or to multiple foreign governments." class="agov-definition">commercial product. The restriction on purchasing foreign end products does not apply to the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition of <i data-tippy-content='Information technology means any equipment, or interconnected system(s) or subsystem(s) of equipment, that is used in the automatic acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information by the agency.(1) For purposes of this definition, equipment is used by an agency if the equipment is used by the agency directly or is used by a contractor under a contract with the agency that requires-(i) Its use; or(ii) To a significant extent, its use in the performance of a service or the furnishing of a product.(2) The term "information technology" includes computers, ancillary equipment (including imaging peripherals, input, output, and storage devices necessary for security and surveillance), peripheral equipment designed to be controlled by the central processing unit of a computer, software, firmware and similar procedures, services (including support services), and related resources.(3) The term "information technology" does not include any equipment that-(i) Is acquired by a contractor incidental to a contract; or(ii) Contains imbedded information technology that is used as an integral part of the product, but the principal function of which is not the acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information. For example, HVAC (heating, ventilation, and air conditioning) equipment, such as thermostats or temperature control devices, and medical equipment where information technology is integral to its operation, are not information technology.' class="agov-definition">information technology that is a <i data-tippy-content="Commercial product means— (1) A product, other than real property, that is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes, and–(i) Has been sold, leased, or licensed to the general public; or(ii) Has been offered for sale, lease, or license to the general public;(2) A product that evolved from a product described in paragraph (1) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace, but will be available in the commercial marketplace in time to satisfy the delivery requirements under a Government solicitation;(3) A product that would satisfy a criterion expressed in paragraph (1) or (2) of this definition, except for-(i) Modifications of a type customarily available in the commercial marketplace; or(ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet Federal Government requirements. “Minor modifications” means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component, or change the purpose of a process. Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product. Dollar values and percentages may be used as guideposts, but are not conclusive evidence that a modification is minor;(4) Any combination of products meeting the requirements of paragraph (1), (2), or (3) of this definition that are of a type customarily combined and sold in combination to the general public;(5) A product, or combination of products, referred to in paragraphs (1) through (4) of this definition, even though the product, or combination of products, is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor; or(6) A nondevelopmental item, if the procuring agency determines the product was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple State and local governments or to multiple foreign governments." class="agov-definition">commercial product, when using fiscal year 2004 or subsequent fiscal year funds (section 535(a) of Division F, Title V, Consolidated Appropriations Act, 2004, and similar sections in subsequent appropriations acts). </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title11" id="FAR_25_104" data-part="section" data-part-number="25.104"> <h3 class="title topictitle3" id="ariaid-title11"> 25.104 Nonavailable articles.</h3> <div class="body conbody"> (a) The following articles have been determined to be nonavailable in accordance with <a class="xref fm:ParaNumOnly" href="#FAR_25_103" title="25.103" aria-label="25.103. Link 133">25.103</a>(b)(1)(i): Acetylene, black. Agar, bulk. Anise. Antimony, as metal or oxide. Asbestos, amosite, chrysotile, and crocidolite. Bamboo shoots. Bananas. Bauxite. Beef, corned, canned. Beef extract. Bephenium hydroxynapthoate. Bismuth. Books, trade, text, technical, or scientific; newspapers; pamphlets; magazines; periodicals; printed briefs and films; not printed in the United States and for which domestic editions are not available. Brazil nuts, unroasted Cadmium, ores and flue dust. Calcium cyanamide. Capers. Cashew nuts. Castor beans and castor oil. Chalk, English. Chestnuts. Chicle. Chrome ore or chromite. Cinchona bark. Cobalt, in cathodes, rondelles, or other primary ore and metal forms. Cocoa beans. Coconut and coconut meat, unsweetened, in shredded, desiccated, or similarly prepared form. Coffee, raw or green bean. Colchicine alkaloid, raw. Copra. Cork, wood or bark and waste. Cover glass, microscope slide. Crane rail (85-pound per foot). Cryolite, natural. Dammar gum. Diamonds, industrial, stones and abrasives. Emetine, bulk. Ergot, crude. Erythrityl tetranitrate. Fair linen, altar. Fibers of the following types: abaca, abace, agave, coir, flax, jute, jute burlaps, palmyra, and sisal. Goat and kidskins. Goat hair canvas. Grapefruit sections, canned. Graphite, natural, crystalline, crucible grade. Hand file sets (Swiss pattern). Handsewing needles. Hemp yarn. Hog bristles for brushes. Hyoscine, bulk. Ipecac, root. Iodine, crude. Kaurigum. Lac. Leather, sheepskin, hair type. Lavender oil. Manganese. Menthol, natural bulk. Mica. Microprocessor chips (brought onto a Government <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction site as separate units for incorporation into building systems during <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction or repair and alteration of real property). Modacrylic fiber. Nickel, primary, in ingots, pigs, shots, cathodes, or similar forms; nickel oxide and nickel salts. Nitroguanidine (also known as picrite). Nux vomica, crude. Oiticica oil. Olive oil. Olives (green), pitted or unpitted, or stuffed, in bulk. Opium, crude. Oranges, mandarin, canned. Petroleum, crude oil, unfinished oils, and finished products. Pine needle oil. Pineapple, canned. Platinum and related group metals, refined, as sponge, powder, ingots, or cast bars. Pyrethrum flowers. Quartz crystals. Quebracho. Quinidine. Quinine. Rabbit fur felt. Radium salts, source and special nuclear materials. Rosettes. Rubber, crude and latex. Rutile. Santonin, crude. Secretin. Shellac. Silk, raw and unmanufactured. Spare and replacement parts for equipment of foreign manufacture, and for which domestic parts are not available. Spices and herbs, in bulk. Sugars, raw. Swords and scabbards. Talc, block, steatite. Tantalum. Tapioca flour and cassava. Tartar, crude; tartaric acid and cream of tartar in bulk. Tea in bulk. Thread, metallic (gold). Thyme oil. Tin in bars, blocks, and pigs. Triprolidine hydrochloride. Tungsten. Vanilla beans. Venom, cobra. Water chestnuts. Wax, carnauba. Wire glass. Woods; logs, veneer, and lumber of the following species: Alaskan yellow cedar, angelique, balsa, ekki, greenheart, lignum vitae, mahogany, and teak. Yarn, 50 Denier rayon. Yeast, active dry and instant active dry. (b) This list will be published in the Federal Register for public comment no less frequently than once every five years. Unsolicited recommendations for deletions from this list may be submitted at any time and should provide sufficient data and rationale to permit evaluation (see <a class="xref fm:ParaNumOnly" href="/far/part-1#FAR_1_502" title="1.502" aria-label="1.502. Link 154">1.502</a>). </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title12" id="FAR_25_105" data-part="section" data-part-number="25.105"> <h3 class="title topictitle3" id="ariaid-title12"> 25.105 Critical components and critical items. </h3> <div class="body conbody"> (a) The following is a list of articles that have been determined to be a critical component or <i data-tippy-content="Critical item means a domestic construction material or domestic end product that is deemed critical to the U.S. supply chain. The list of critical items is at 25.105." class="agov-definition">critical item and their respective preference factor(s). (1)-(2) [Reserved] (b) The list of articles and preference factors in paragraph (a) of this section will be published in the Federal Register for public comment no less frequently than once every 4 years. Unsolicited recommendations for deletions from this list may be submitted at any time and should provide sufficient data and rationale to permit evaluation ( see <a class="xref fm:ParaNumOnly" href="/far/part-1#FAR_1_502" title="1.502" aria-label="1.502. Link 154">1.502</a>). (c) For determining reasonableness of cost for <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end products that contain critical components or are <i data-tippy-content="Critical item means a domestic construction material or domestic end product that is deemed critical to the U.S. supply chain. The list of critical items is at 25.105." class="agov-definition">critical items ( see <a class="xref fm:ParaNumOnly" href="#FAR_25_106" title="25.106" aria-label="25.106. Link 146">25.106</a>(c)). </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title13" id="FAR_25_106" data-part="section" data-part-number="25.106"> <h3 class="title topictitle3" id="ariaid-title13"> 25.106 Determining reasonableness of cost. </h3> <div class="body conbody"> (a) The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer- (1) Must use the evaluation factors in paragraphs (b) and (c) of this section unless the head of the agency makes a written determination that the use of higher factors is more appropriate. If the determination applies to all agency <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions, the agency evaluation factors must be published in agency regulations; and (2) Must not apply evaluation factors to <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers of <i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">eligible products if the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is subject to a trade agreement under <a class="xref fm:Subpart" href="#FAR_Subpart_25_4" title="subpart  25.4" aria-label="subpart聽 25.4. Link 97">subpart  25.4</a>. (b) For end products that are not <i data-tippy-content="Critical item means a domestic construction material or domestic end product that is deemed critical to the U.S. supply chain. The list of critical items is at 25.105." class="agov-definition">critical items and do not contain critical components. (1) (i) If there is a <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer that is not the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer, and the restrictions of the Buy American statute apply to the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must determine the reasonableness of the cost of the <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer by adding to the price of the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer, inclusive of duty— (A) 20 percent, if the lowest <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer is from a large business concern; or (B) 30 percent, if the lowest <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer is from a small business concern. The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must use this factor, or another factor established in agency regulations, in small business set-asides if the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer is from a small business concern offering the product of a small business concern that is not a <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end product (see <a class="xref fm:Subpart" href="/far/part-19#FAR_Subpart_19_5" title="subpart  19.5" aria-label="subpart聽 19.5. Link 158">subpart  19.5</a>). (ii) The price of the <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer is reasonable if it does not exceed the evaluated price of the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer after addition of the appropriate evaluation factor in accordance with paragraph (a) or (b)(1)(i) of this section. See evaluation procedures at <a class="xref fm:Subpart" href="#FAR_Subpart_25_5" title="subpart  25.5" aria-label="subpart聽 25.5. Link 104">subpart  25.5</a>. (2) (i) For end products that are not COTS items and do not consist wholly or predominantly of iron or steel or a combination of both, if the procedures in paragraph (b)(1)(i) of this section result in an unreasonable cost determination for the <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer or there is no <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer received, and the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer is for a foreign end product that does not exceed 55 percent domestic content, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall— (A) Treat the lowest <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer of a foreign end product that is manufactured in the United States and exceeds 55 percent domestic content as a domestic <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer; and (B) Determine the reasonableness of the cost of this <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer by applying the evaluation factors listed in paragraph (b)(1)(i) of this section to the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer. (ii) The price of the lowest <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer of a foreign end product that exceeds 55 percent domestic content is reasonable if it does not exceed the evaluated price of the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer after addition of the appropriate evaluation factor in accordance with paragraph (a) or (b)(1)(i) of this section. See evaluation procedures at <a class="xref fm:Subpart" href="#FAR_Subpart_25_5" title="subpart  25.5" aria-label="subpart聽 25.5. Link 104">subpart  25.5</a>. (iii) The procedures in this paragraph (b)(2) will no longer apply as of January 1, 2030. (c) For end products that are <i data-tippy-content="Critical item means a domestic construction material or domestic end product that is deemed critical to the U.S. supply chain. The list of critical items is at 25.105." class="agov-definition">critical items or contain critical components. (1) (i) If there is a <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer that is not the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer, and the restrictions of the Buy American statute apply to the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall determine the reasonableness of the cost of the <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer by adding to the price of the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer, inclusive of duty— (A) 20 percent, plus the additional preference factor identified for the <i data-tippy-content="Critical item means a domestic construction material or domestic end product that is deemed critical to the U.S. supply chain. The list of critical items is at 25.105." class="agov-definition">critical item or end product containing critical components listed at section <a class="xref fm:ParaNumOnly" href="#FAR_25_105" title="25.105" aria-label="25.105. Link 118">25.105</a>, if the lowest <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer is from a large business concern; or (B) 30 percent, plus the additional preference factor identified for the <i data-tippy-content="Critical item means a domestic construction material or domestic end product that is deemed critical to the U.S. supply chain. The list of critical items is at 25.105." class="agov-definition">critical item or end product containing critical components listed at section <a class="xref fm:ParaNumOnly" href="#FAR_25_105" title="25.105" aria-label="25.105. Link 118">25.105</a>, if the lowest <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer is from a small business concern. The <i data-tippy-content="Contracting means purchasing, renting, leasing, or otherwise obtaining supplies or services from nonfederal sources. Contracting includes description (but not determination) of supplies and services required, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration. It does not include making grants or cooperative agreements." class="agov-definition">contracting officer shall use this factor, or another factor established in agency regulations, in small business set-asides if the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer is from a small business concern offering the product of a small business concern that is not a <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end product (see <a class="xref fm:Subpart" href="/far/part-19#FAR_Subpart_19_5" title="subpart  19.5" aria-label="subpart聽 19.5. Link 158">subpart  19.5</a>). (ii) The price of the <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer is reasonable if it does not exceed the evaluated price of the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer after addition of the appropriate evaluation factor in accordance with paragraph (a) or (b) of this section. See evaluation procedures at <a class="xref fm:Subpart" href="#FAR_Subpart_25_5" title="subpart  25.5" aria-label="subpart聽 25.5. Link 104">subpart  25.5</a>. (2) (i) For end products that are not COTS items and do not consist wholly or predominantly of iron or steel or a combination of both, if the procedures in paragraph (c)(1)(ii) of this section result in an unreasonable cost determination for the <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer or there is no <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer received, and the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer is for a foreign end product that does not exceed 55 percent domestic content, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall— (A) Treat the lowest <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer of a foreign end product that is manufactured in the United States and exceeds 55 percent domestic content as a domestic <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer; and (B) Determine the reasonableness of the cost of this <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer by applying the evaluation factors listed in paragraph (c)(1) of this section to the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer. (ii) The price of the lowest <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer of a foreign end product that exceeds 55 percent domestic content is reasonable if it does not exceed the evaluated price of the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer after addition of the appropriate evaluation factor in accordance with paragraph (a) or (b) of this section. See evaluation procedures at <a class="xref fm:Subpart" href="#FAR_Subpart_25_5" title="subpart  25.5" aria-label="subpart聽 25.5. Link 104">subpart  25.5</a>. (iii) The procedures in this paragraph (c)(2) will no longer apply as of January 1, 2030. </div> </article> </article> <article class="topic nested1" aria-labelledby="ariaid-title14" id="FAR_Subpart_25_2" data-part="subpart" data-part-number="25.2"> <h2 class="title topictitle2 Subpart" id="ariaid-title14"> Subpart 25.2 - Buy American-Construction Materials</h2> <article class="topic nested2" aria-labelledby="ariaid-title15" id="FAR_25_200" data-part="section" data-part-number="25.200"> <h3 class="title topictitle3" id="ariaid-title15"> 25.200 Scope of subpart.</h3> <div class="body"> (a) This subpart implements- (1) <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title41-chapter83&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU0MC1jaGFwdGVyMzctZnJvbnQ%3D%7C%7C%7C0%7Cfalse%7Cprelim&edition=prelim" target="_blank" title="41 U.S.C. chapter 83" aria-label="41 U.S.C. chapter 83. Link 93">41 U.S.C. chapter 83</a>, Buy American; (2) Executive Order 10582, December 17, 1954; (3) Executive Order 13881, July 15, 2019; (4) <a class="xref" href="https://www.federalregister.gov/executive-order/14005" target="_blank" title="Executive Order 14005," aria-label="Executive Order 14005,. Link 125">Executive Order 14005,</a> January 25, 2021; and (5) Waiver of the domestic content test of the Buy American statute for <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions of commercially available off-the-shelf (COTS) items in accordance with <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section1907&num=0&edition=prelim" target="_blank" title="41 U.S.C. 1907" aria-label="41 U.S.C. 1907. Link 126">41 U.S.C. 1907</a>, but see <a class="xref fm:ParaNumOnly" href="#FAR_25_201" title="25.201" aria-label="25.201. Link 102">25.201</a>(b)(2)(ii). (b) It applies to contracts for the <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction, alteration, or repair of any public building or public work in the United States. (c) When using funds appropriated or otherwise provided by the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5) (Recovery Act) for <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction, see <a class="xref fm:Subpart" href="#FAR_Subpart_25_6" title="subpart  25.6" aria-label="subpart聽 25.6. Link 121">subpart  25.6</a>. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title16" id="FAR_25_201" data-part="section" data-part-number="25.201"> <h3 class="title topictitle3" id="ariaid-title16"> 25.201 Policy.</h3> <div class="body conbody"> (a) Except as provided in <a class="xref fm:ParaNumOnly" href="#FAR_25_202" title="25.202" aria-label="25.202. Link 171">25.202</a>, use only <i data-tippy-content="Domestic construction material means-(1) For use in subparts other than 25.6—(i) For construction material that does not consist wholly or predominantly of iron or steel or a combination of both—(A) An unmanufactured construction material mined or produced in the United States; or(B) A construction material manufactured in the United States, if–(1) The cost of the components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.201(c)).Components of unknown origin are treated as foreign; or(2) The construction material is a commercially available off-the-shelf (COTS) item; or(ii) For construction material that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the United States if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in such construction material. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the construction material contains multiple components, the cost of all the materials used in such construction material is calculated in accordance with the definition of “cost of components” in this section; or(3) For use in subpart  25.6, see the definition in 25.601." class="agov-definition">domestic construction materials in <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction contracts performed in the United States. (b) The Buy American statute restricts the purchase of <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction materials that are not domestic <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction materials. For manufactured <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction materials, the Buy American statute, <a class="xref" href="https://www.federalregister.gov/executive-order/13881" target="_blank" title="E.O. 13881," aria-label="E.O. 13881,. Link 128">E.O. 13881,</a> and <a class="xref" href="https://www.federalregister.gov/executive-order/14005" target="_blank" title="E.O. 14005" aria-label="E.O. 14005. Link 173">E.O. 14005</a> use a two-part test to define <i data-tippy-content="Domestic construction material means-(1) For use in subparts other than 25.6—(i) For construction material that does not consist wholly or predominantly of iron or steel or a combination of both—(A) An unmanufactured construction material mined or produced in the United States; or(B) A construction material manufactured in the United States, if–(1) The cost of the components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.201(c)).Components of unknown origin are treated as foreign; or(2) The construction material is a commercially available off-the-shelf (COTS) item; or(ii) For construction material that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the United States if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in such construction material. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the construction material contains multiple components, the cost of all the materials used in such construction material is calculated in accordance with the definition of “cost of components” in this section; or(3) For use in subpart  25.6, see the definition in 25.601." class="agov-definition">domestic construction materials. (1) The article must be manufactured in the United States; and (2) (i) Except for <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material that consists wholly or predominantly of iron or steel or a combination of both, the cost of domestic components must exceed 60 percent of the cost of all the components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029, but see paragraph (c) of this section. In accordance with <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title41-section1907&num=0&edition=prelim" target="_blank" title="41 U.S.C. 1907" aria-label="41 U.S.C. 1907. Link 126">41 U.S.C. 1907</a>, this domestic content test of the Buy American statute has been waived for <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions of COTS items (see <a class="xref fm:ParaNumOnly" href="/far/part-12#FAR_12_505" title="12.505" aria-label="12.505. Link 131">12.505</a>(a)). (ii) For <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction material that consists wholly or predominantly of iron or steel or a combination of both, the cost of <i data-tippy-content="Foreign iron and steel means iron or steel products not produced in the United States. Produced in the United States means that all manufacturing processes of the iron or steel must take place in the United States, from the initial melting stage through the application of coatings, except metallurgical processes involving refinement of steel additives. The origin of the elements of the iron or steel is not relevant to the determination of whether it is domestic or foreign." class="agov-definition">foreign iron and steel must constitute less than 5 percent of the cost of all the components used in such <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material (see the definition of "foreign iron and steel" at <a class="xref fm:ParaNumOnly" href="#FAR_25_003" title="25.003" aria-label="25.003. Link 99">25.003</a>). The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS <i data-tippy-content="Fastener means a hardware device that mechanically joins or affixes two or more objects together. Examples of fasteners are nuts, bolts, pins, rivets, nails, clips, and screws." class="agov-definition">fasteners. This domestic content test of the Buy American statute has not been waived for <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions of COTS items in this category, except for COTS <i data-tippy-content="Fastener means a hardware device that mechanically joins or affixes two or more objects together. Examples of fasteners are nuts, bolts, pins, rivets, nails, clips, and screws." class="agov-definition">fasteners. (c) (1) A contract with a period of performance that spans the schedule of domestic content threshold increases specified in paragraph (b)(2)(i) of this section shall be required to comply with each increased threshold for the items in the year of delivery, unless the <i data-tippy-content="Senior procurement executive means the individual appointed pursuant to 41 U.S.C. 1702(c) who is responsible for management direction of the acquisition system of the executive agency, including implementation of the unique acquisition policies, regulations, and standards of the executive agency." class="agov-definition">senior procurement executive of the <i data-tippy-content="Contracting means purchasing, renting, leasing, or otherwise obtaining supplies or services from nonfederal sources. Contracting includes description (but not determination) of supplies and services required, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration. It does not include making grants or cooperative agreements." class="agov-definition">contracting agency allows for application of an <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">alternate domestic content test for that contract under which the domestic content threshold in effect at time of contract award will apply to the entire period of performance for the contract. This authority is not delegable. The senior procurement executive shall consult the Office of Management and Budget's Made in America Office before allowing the use of the <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">alternate domestic content test. (2) When a <i data-tippy-content="Senior procurement executive means the individual appointed pursuant to 41 U.S.C. 1702(c) who is responsible for management direction of the acquisition system of the executive agency, including implementation of the unique acquisition policies, regulations, and standards of the executive agency." class="agov-definition">senior procurement executive allows for application of an <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">alternate domestic content test for a contract, see <a class="xref fm:ParaNumOnly" href="#FAR_25_1102" title="25.1102" aria-label="25.1102. Link 144">25.1102</a>(a)(3) or (c)(4) for use of the appropriate <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternate clause to reflect the domestic content threshold that will apply to the entire period of performance for that contract. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title17" id="FAR_25_202" data-part="section" data-part-number="25.202"> <h3 class="title topictitle3" id="ariaid-title17"> 25.202 Exceptions.</h3> <div class="body conbody"> (a) When one of the following exceptions applies, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer may allow the contractor to acquire foreign construction materials without regard to the restrictions of the Buy American statute: (1) Impracticable or inconsistent with public interest. The head of the agency may determine that application of the restrictions of the Buy American statute to a particular <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material would be impracticable or would be inconsistent with the public interest. The public interest exception applies when an agency has an agreement with a foreign government that provides a blanket exception to the Buy American statute. (2) Nonavailability. The head of the contracting activity may determine that a particular <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material is not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities of a satisfactory quality. The determinations of nonavailability of the articles listed at <a class="xref fm:ParaNumOnly" href="#FAR_25_104" title="25.104" aria-label="25.104. Link 141">25.104</a>(a) and the procedures at <a class="xref fm:ParaNumOnly" href="#FAR_25_103" title="25.103" aria-label="25.103. Link 133">25.103</a>(b)(1) also apply if any of those articles are acquired as <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction materials. A determination is not required before January 1, 2030, if there is an <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer for a foreign <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material that exceeds 55 percent domestic content (see <a class="xref fm:ParaNumOnly" href="#FAR_25_204" title="25.204" aria-label="25.204. Link 180">25.204</a>(b)(1)(ii) and <a class="xref fm:ParaNumOnly" href="#FAR_25_204" title="25.204" aria-label="25.204. Link 180">25.204</a>(b)(2)(ii)). (3) Unreasonable cost. The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer concludes that the cost of <i data-tippy-content="Domestic construction material means-(1) For use in subparts other than 25.6—(i) For construction material that does not consist wholly or predominantly of iron or steel or a combination of both—(A) An unmanufactured construction material mined or produced in the United States; or(B) A construction material manufactured in the United States, if–(1) The cost of the components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.201(c)).Components of unknown origin are treated as foreign; or(2) The construction material is a commercially available off-the-shelf (COTS) item; or(ii) For construction material that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the United States if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in such construction material. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the construction material contains multiple components, the cost of all the materials used in such construction material is calculated in accordance with the definition of “cost of components” in this section; or(3) For use in subpart  25.6, see the definition in 25.601." class="agov-definition">domestic construction material is unreasonable in accordance with <a class="xref fm:ParaNumOnly" href="#FAR_25_204" title="25.204" aria-label="25.204. Link 180">25.204</a>. (4) <i data-tippy-content='Information technology means any equipment, or interconnected system(s) or subsystem(s) of equipment, that is used in the automatic acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information by the agency.(1) For purposes of this definition, equipment is used by an agency if the equipment is used by the agency directly or is used by a contractor under a contract with the agency that requires-(i) Its use; or(ii) To a significant extent, its use in the performance of a service or the furnishing of a product.(2) The term "information technology" includes computers, ancillary equipment (including imaging peripherals, input, output, and storage devices necessary for security and surveillance), peripheral equipment designed to be controlled by the central processing unit of a computer, software, firmware and similar procedures, services (including support services), and related resources.(3) The term "information technology" does not include any equipment that-(i) Is acquired by a contractor incidental to a contract; or(ii) Contains imbedded information technology that is used as an integral part of the product, but the principal function of which is not the acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information. For example, HVAC (heating, ventilation, and air conditioning) equipment, such as thermostats or temperature control devices, and medical equipment where information technology is integral to its operation, are not information technology.' class="agov-definition">Information technology that is a <i data-tippy-content="Commercial product means— (1) A product, other than real property, that is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes, and–(i) Has been sold, leased, or licensed to the general public; or(ii) Has been offered for sale, lease, or license to the general public;(2) A product that evolved from a product described in paragraph (1) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace, but will be available in the commercial marketplace in time to satisfy the delivery requirements under a Government solicitation;(3) A product that would satisfy a criterion expressed in paragraph (1) or (2) of this definition, except for-(i) Modifications of a type customarily available in the commercial marketplace; or(ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet Federal Government requirements. “Minor modifications” means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component, or change the purpose of a process. Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product. Dollar values and percentages may be used as guideposts, but are not conclusive evidence that a modification is minor;(4) Any combination of products meeting the requirements of paragraph (1), (2), or (3) of this definition that are of a type customarily combined and sold in combination to the general public;(5) A product, or combination of products, referred to in paragraphs (1) through (4) of this definition, even though the product, or combination of products, is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor; or(6) A nondevelopmental item, if the procuring agency determines the product was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple State and local governments or to multiple foreign governments." class="agov-definition">commercial product. The restriction on purchasing foreign construction material does not apply to the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition of <i data-tippy-content='Information technology means any equipment, or interconnected system(s) or subsystem(s) of equipment, that is used in the automatic acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information by the agency.(1) For purposes of this definition, equipment is used by an agency if the equipment is used by the agency directly or is used by a contractor under a contract with the agency that requires-(i) Its use; or(ii) To a significant extent, its use in the performance of a service or the furnishing of a product.(2) The term "information technology" includes computers, ancillary equipment (including imaging peripherals, input, output, and storage devices necessary for security and surveillance), peripheral equipment designed to be controlled by the central processing unit of a computer, software, firmware and similar procedures, services (including support services), and related resources.(3) The term "information technology" does not include any equipment that-(i) Is acquired by a contractor incidental to a contract; or(ii) Contains imbedded information technology that is used as an integral part of the product, but the principal function of which is not the acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information. For example, HVAC (heating, ventilation, and air conditioning) equipment, such as thermostats or temperature control devices, and medical equipment where information technology is integral to its operation, are not information technology.' class="agov-definition">information technology that is a <i data-tippy-content="Commercial product means— (1) A product, other than real property, that is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes, and–(i) Has been sold, leased, or licensed to the general public; or(ii) Has been offered for sale, lease, or license to the general public;(2) A product that evolved from a product described in paragraph (1) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace, but will be available in the commercial marketplace in time to satisfy the delivery requirements under a Government solicitation;(3) A product that would satisfy a criterion expressed in paragraph (1) or (2) of this definition, except for-(i) Modifications of a type customarily available in the commercial marketplace; or(ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet Federal Government requirements. “Minor modifications” means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component, or change the purpose of a process. Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product. Dollar values and percentages may be used as guideposts, but are not conclusive evidence that a modification is minor;(4) Any combination of products meeting the requirements of paragraph (1), (2), or (3) of this definition that are of a type customarily combined and sold in combination to the general public;(5) A product, or combination of products, referred to in paragraphs (1) through (4) of this definition, even though the product, or combination of products, is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor; or(6) A nondevelopmental item, if the procuring agency determines the product was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple State and local governments or to multiple foreign governments." class="agov-definition">commercial product, when using Fiscal Year 2004 or subsequent fiscal year funds (section 535(a) of Division F, Title V, Consolidated Appropriations Act, 2004, and similar sections in subsequent appropriations acts). (b) Determination and findings. When a determination is made for any of the reasons stated in this section that certain foreign construction materials may be used, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must list the excepted materials in the contract. The agency must make the findings justifying the exception available for public <i data-tippy-content="Inspection means examining and testing supplies or services (including, when appropriate, raw materials, components, and intermediate assemblies) to determine whether they conform to contract requirements." class="agov-definition">inspection. (c) <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">Acquisitions under trade agreements. For <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction contracts with an estimated <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition value of $6,708,000 or more, see <a class="xref fm:Subpart" href="#FAR_Subpart_25_4" title="subpart  25.4" aria-label="subpart聽 25.4. Link 97">subpart  25.4</a>. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title18" id="FAR_25_203" data-part="section" data-part-number="25.203"> <h3 class="title topictitle3" id="ariaid-title18"> 25.203 Preaward determinations.</h3> <div class="body conbody"> (a) For any <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition, an offeror may request from the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer a determination concerning the inapplicability of the Buy American statute for specifically identified <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction materials. The time for submitting the request is specified in the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation in paragraph (b) of either <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_10" title="52.225-10" aria-label="52.225-10. Link 184">52.225-10</a> or <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_12" title="52.225-12" aria-label="52.225-12. Link 185">52.225-12</a>, whichever applies. The information and supporting data that must be included in the request are also specified in the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation in paragraphs (c) and (d) of either <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_9" title="52.225-9" aria-label="52.225-9. Link 186">52.225-9</a> or <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_11" title="52.225-11" aria-label="52.225-11. Link 187">52.225-11</a>, whichever applies. (b) Before award, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must evaluate all requests based on the information provided and may supplement this information with other readily available information. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title19" id="FAR_25_204" data-part="section" data-part-number="25.204"> <h3 class="title topictitle3" id="ariaid-title19"> 25.204 Evaluating offers of foreign construction material.</h3> <div class="body conbody"> (a) Offerors proposing to use foreign construction material other than that listed by the Government in the applicable clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_9" title="52.225-9" aria-label="52.225-9. Link 186">52.225-9</a>, paragraph (b)(2), or <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_11" title="52.225-11" aria-label="52.225-11. Link 187">52.225-11</a>, paragraph (b)(3), or covered by the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA or a Free Trade Agreement (paragraph (b)(2) of <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_11" title="52.225-11" aria-label="52.225-11. Link 187">52.225-11</a>), must provide the information required by paragraphs (c) and (d) of the respective clauses. (b) (1) For <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction material that is not a <i data-tippy-content="Critical item means a domestic construction material or domestic end product that is deemed critical to the U.S. supply chain. The list of critical items is at 25.105." class="agov-definition">critical item and does not contain critical components. (i) Unless the head of the agency specifies a higher percentage, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall add to the offered price 20 percent of the cost of any foreign <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material proposed for exception from the requirements of the Buy American statute based on the unreasonable cost of <i data-tippy-content="Domestic construction material means-(1) For use in subparts other than 25.6—(i) For construction material that does not consist wholly or predominantly of iron or steel or a combination of both—(A) An unmanufactured construction material mined or produced in the United States; or(B) A construction material manufactured in the United States, if–(1) The cost of the components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.201(c)).Components of unknown origin are treated as foreign; or(2) The construction material is a commercially available off-the-shelf (COTS) item; or(ii) For construction material that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the United States if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in such construction material. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the construction material contains multiple components, the cost of all the materials used in such construction material is calculated in accordance with the definition of “cost of components” in this section; or(3) For use in subpart  25.6, see the definition in 25.601." class="agov-definition">domestic construction materials. In the case of a tie, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall give preference to an <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer that does not include foreign construction material excepted at the request of the offeror on the basis of unreasonable cost. (ii) For <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material that is not a COTS item and does not consist wholly or predominantly of iron or steel or a combination of both, if the procedures in paragraph (b)(1)(i) of this section result in an unreasonable cost determination for the <i data-tippy-content="Domestic construction material means-(1) For use in subparts other than 25.6—(i) For construction material that does not consist wholly or predominantly of iron or steel or a combination of both—(A) An unmanufactured construction material mined or produced in the United States; or(B) A construction material manufactured in the United States, if–(1) The cost of the components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.201(c)).Components of unknown origin are treated as foreign; or(2) The construction material is a commercially available off-the-shelf (COTS) item; or(ii) For construction material that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the United States if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in such construction material. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the construction material contains multiple components, the cost of all the materials used in such construction material is calculated in accordance with the definition of “cost of components” in this section; or(3) For use in subpart  25.6, see the definition in 25.601." class="agov-definition">domestic construction material <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer or there is no <i data-tippy-content="Domestic construction material means-(1) For use in subparts other than 25.6—(i) For construction material that does not consist wholly or predominantly of iron or steel or a combination of both—(A) An unmanufactured construction material mined or produced in the United States; or(B) A construction material manufactured in the United States, if–(1) The cost of the components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.201(c)).Components of unknown origin are treated as foreign; or(2) The construction material is a commercially available off-the-shelf (COTS) item; or(ii) For construction material that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the United States if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in such construction material. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the construction material contains multiple components, the cost of all the materials used in such construction material is calculated in accordance with the definition of “cost of components” in this section; or(3) For use in subpart  25.6, see the definition in 25.601." class="agov-definition">domestic construction material <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer received, and the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer is for foreign construction material that does not exceed 55 percent domestic content, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall— (A) Treat the lowest <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer of foreign construction material that is manufactured in the United States and exceeds 55 percent domestic content as a <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer; and (B) Determine the reasonableness of the cost of this <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer by applying the evaluation factor listed in paragraph (b)(1)(i) to the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer. (iii) The procedures in paragraph (b)(1)(ii) of this section will no longer apply as of January 1, 2030. (2) For <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material that is a <i data-tippy-content="Critical item means a domestic construction material or domestic end product that is deemed critical to the U.S. supply chain. The list of critical items is at 25.105." class="agov-definition">critical item or contains critical components. (i) The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall add to the offered price 20 percent, plus the additional preference factor identified for the <i data-tippy-content="Critical item means a domestic construction material or domestic end product that is deemed critical to the U.S. supply chain. The list of critical items is at 25.105." class="agov-definition">critical item or <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material containing critical components listed at section <a class="xref fm:ParaNumOnly" href="#FAR_25_105" title="25.105" aria-label="25.105. Link 118">25.105</a>, of the cost of any foreign construction material proposed for exception from the requirements of the Buy American statute based on the unreasonable cost of domestic <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction materials. In the case of a tie, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall give preference to an <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer that does not include foreign <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction material excepted at the request of the offeror on the basis of unreasonable cost. See <a class="xref fm:ParaNumOnly" href="#FAR_25_105" title="25.105" aria-label="25.105. Link 118">25.105</a> for the list of critical components and <i data-tippy-content="Critical item means a domestic construction material or domestic end product that is deemed critical to the U.S. supply chain. The list of critical items is at 25.105." class="agov-definition">critical items. (ii) For <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material that is not a COTS item and does not consist wholly or predominantly of iron or steel or a combination of both, if the procedures in paragraph (b)(2)(i) of this section result in an unreasonable cost determination for the <i data-tippy-content="Domestic construction material means-(1) For use in subparts other than 25.6—(i) For construction material that does not consist wholly or predominantly of iron or steel or a combination of both—(A) An unmanufactured construction material mined or produced in the United States; or(B) A construction material manufactured in the United States, if–(1) The cost of the components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.201(c)).Components of unknown origin are treated as foreign; or(2) The construction material is a commercially available off-the-shelf (COTS) item; or(ii) For construction material that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the United States if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in such construction material. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the construction material contains multiple components, the cost of all the materials used in such construction material is calculated in accordance with the definition of “cost of components” in this section; or(3) For use in subpart  25.6, see the definition in 25.601." class="agov-definition">domestic construction material <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer or there is no <i data-tippy-content="Domestic construction material means-(1) For use in subparts other than 25.6—(i) For construction material that does not consist wholly or predominantly of iron or steel or a combination of both—(A) An unmanufactured construction material mined or produced in the United States; or(B) A construction material manufactured in the United States, if–(1) The cost of the components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.201(c)).Components of unknown origin are treated as foreign; or(2) The construction material is a commercially available off-the-shelf (COTS) item; or(ii) For construction material that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the United States if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in such construction material. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the construction material contains multiple components, the cost of all the materials used in such construction material is calculated in accordance with the definition of “cost of components” in this section; or(3) For use in subpart  25.6, see the definition in 25.601." class="agov-definition">domestic construction material <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer received, and the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer is for foreign construction material that does not exceed 55 percent domestic content, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall— (A) Treat the lowest <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer of foreign construction material that is manufactured in the United States and exceeds 55 percent domestic content as a <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer; and (B) Determine the reasonableness of the cost of this <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer by applying the evaluation factors listed in this paragraph (b)(2) to the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer. (iii) The procedures in paragraph (b)(2)(ii) of this section will no longer apply as of January 1, 2030. (c) Offerors also may submit <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">alternate <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers based on use of equivalent <i data-tippy-content="Domestic construction material means-(1) For use in subparts other than 25.6—(i) For construction material that does not consist wholly or predominantly of iron or steel or a combination of both—(A) An unmanufactured construction material mined or produced in the United States; or(B) A construction material manufactured in the United States, if–(1) The cost of the components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.201(c)).Components of unknown origin are treated as foreign; or(2) The construction material is a commercially available off-the-shelf (COTS) item; or(ii) For construction material that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the United States if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in such construction material. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the construction material contains multiple components, the cost of all the materials used in such construction material is calculated in accordance with the definition of “cost of components” in this section; or(3) For use in subpart  25.6, see the definition in 25.601." class="agov-definition">domestic construction material to avoid possible rejection of the entire <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer if the Government determines that an exception permitting use of a particular foreign construction material does not apply. (d) If the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer awards a contract to an offeror that proposed foreign construction material not listed in the applicable clause in the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation (paragraph (b)(2) of <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_9" title="52.225-9" aria-label="52.225-9. Link 186">52.225-9</a>, or paragraph (b)(3) of <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_11" title="52.225-11" aria-label="52.225-11. Link 187">52.225-11</a>), the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must add the excepted materials to the list in the <i data-tippy-content='Contract clause or "clause" means a term or condition used in contracts or in both solicitations and contracts, and applying after contract award or both before and after award.' class="agov-definition">contract clause. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title20" id="FAR_25_205" data-part="section" data-part-number="25.205"> <h3 class="title topictitle3" id="ariaid-title20"> 25.205 Postaward determinations.</h3> <div class="body conbody"> (a) If a contractor requests a determination regarding the inapplicability of the Buy American statute after contract award, the contractor must explain why it could not request the determination before contract award or why the need for such determination otherwise was not reasonably foreseeable. If the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer concludes that the contractor should have made the request before contract award, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer may deny the request. (b) The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must base evaluation of any request for a determination regarding the inapplicability of the Buy American statute made after contract award on information required by paragraphs (c) and (d) of the applicable clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_9" title="52.225-9" aria-label="52.225-9. Link 186">52.225-9</a> or <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_11" title="52.225-11" aria-label="52.225-11. Link 187">52.225-11</a> and/or other readily available information. (c) If a determination, under <a class="xref fm:ParaNumOnly" href="#FAR_25_202" title="25.202" aria-label="25.202. Link 171">25.202</a>(a), is made after contract award that an exception to the Buy American statute applies, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must negotiate adequate consideration and modify the contract to allow use of the foreign construction material. When the basis for the exception is the unreasonable price of a <i data-tippy-content="Domestic construction material means-(1) For use in subparts other than 25.6—(i) For construction material that does not consist wholly or predominantly of iron or steel or a combination of both—(A) An unmanufactured construction material mined or produced in the United States; or(B) A construction material manufactured in the United States, if–(1) The cost of the components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.201(c)).Components of unknown origin are treated as foreign; or(2) The construction material is a commercially available off-the-shelf (COTS) item; or(ii) For construction material that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the United States if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in such construction material. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the construction material contains multiple components, the cost of all the materials used in such construction material is calculated in accordance with the definition of “cost of components” in this section; or(3) For use in subpart  25.6, see the definition in 25.601." class="agov-definition">domestic construction material, adequate consideration is at least the differential established in <a class="xref fm:ParaNumOnly" href="#FAR_25_202" title="25.202" aria-label="25.202. Link 171">25.202</a>(a) or in accordance with agency procedures. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title21" id="FAR_25_206" data-part="section" data-part-number="25.206"> <h3 class="title topictitle3" id="ariaid-title21"> 25.206 Noncompliance.</h3> <div class="body conbody"> The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must- (a) Review allegations of Buy American statute violations; (b) Unless fraud is suspected, notify the contractor of the apparent unauthorized use of foreign construction material and request a reply, to include proposed corrective action; and (c) If the review reveals that a contractor or subcontractor has used foreign construction material without authorization, take appropriate action, including one or more of the following: (1) Process a determination concerning the inapplicability of the Buy American statute in accordance with <a class="xref fm:ParaNumOnly" href="#FAR_25_205" title="25.205" aria-label="25.205. Link 199">25.205</a>. (2) Consider requiring the removal and replacement of the unauthorized foreign construction material. (3) If removal and replacement of foreign construction material incorporated in a <i data-tippy-content='Building or work means construction activity as distinguished from manufacturing, furnishing of materials, or servicing and maintenance work. The terms include, without limitation, buildings, structures, and improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, pumping stations, heavy generators, railways, airports, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, dredging, shoring, rehabilitation and reactivation of plants, scaffolding, drilling, blasting, excavating, clearing, and landscaping. The manufacture or furnishing of materials, articles, supplies, or equipment (whether or not a Federal or State agency acquires title to such materials, articles, supplies, or equipment during the course of the manufacture or furnishing, or owns the materials from which they are manufactured or furnished) is not "building" or "work" within the meaning of this definition unless conducted in connection with and at the site of such building or work as is described in the foregoing sentence, or under the United States Housing Act of 1937 and the Housing Act of 1949 in the construction or development of the project.' class="agov-definition">building or work would be impracticable, cause undue delay, or otherwise be detrimental to the interests of the Government, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer may determine <i data-tippy-content='In writing, "writing," or "written" means any worded or numbered expression that can be read, reproduced, and later communicated, and includes electronically transmitted and stored information.' class="agov-definition">in writing that the foreign construction material need not be removed and replaced. A determination to retain foreign construction material does not constitute a determination that an exception to the Buy American statute applies, and this should be stated in the determination. Further, a determination to retain foreign construction material does not affect the Government’s right to suspend or debar a contractor, subcontractor, or supplier for violation of the Buy American statute, or to exercise other contractual rights and remedies, such as reducing the contract price or terminating the contract for default. (4) If the noncompliance is sufficiently serious, consider exercising appropriate contractual remedies, such as terminating the contract for default. Also consider preparing and forwarding a report to the agency suspending or debarring official in accordance with <a class="xref fm:Subpart" href="/far/part-9#FAR_Subpart_9_4" title="subpart  9.4" aria-label="subpart聽 9.4. Link 200">subpart  9.4</a>. If the noncompliance appears to be fraudulent, refer the matter to other appropriate agency officials, such as the officer responsible for criminal investigation. </div> </article> </article> <article class="topic nested1" aria-labelledby="ariaid-title22" id="FAR_Subpart_25_3" data-part="subpart" data-part-number="25.3"> <h2 class="title topictitle2 Subpart" id="ariaid-title22"> Subpart 25.3 - Contracts Performed Outside the United States</h2> <article class="topic concept nested2" aria-labelledby="ariaid-title23" id="FAR_25_301" data-part="section" data-part-number="25.301"> <h3 class="title topictitle3" id="ariaid-title23"> 25.301 Contractor personnel in a designated operational area or supporting a diplomatic or consular mission outside the United States.</h3> <article class="topic concept nested3" aria-labelledby="ariaid-title24" id="FAR_25_301_1" data-part="subsection" data-part-number="25.301-1"> <h4 class="title topictitle4" id="ariaid-title24"> 25.301-1 Scope.</h4> <div class="body conbody"> (a) This section applies to contracts requiring contractor personnel to perform outside the United States- (1) In a <i data-tippy-content="Designated operational area means a geographic area designated by the combatant commander or subordinate joint force commander for the conduct or support of specified military operations." class="agov-definition">designated operational area during- (i) Contingency operations; (ii) Humanitarian or peacekeeping operations; or (iii) Other military operations or military exercises, when designated by the combatant commander; or (2) When supporting a diplomatic or consular mission- (i) That has been designated by the Department of State as a danger pay post (see <a class="xref" href="https://aoprals.state.gov/" target="_blank" title="https://aoprals.state.gov/" aria-label="https://aoprals.state.gov/. Link 201">https://aoprals.state.gov/</a>); or (ii) That the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer determines is a post at which application of the clause at FAR <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_19" title="52.225-19" aria-label="52.225-19. Link 202">52.225-19</a>, Contractor Personnel in a <i data-tippy-content="Designated operational area means a geographic area designated by the combatant commander or subordinate joint force commander for the conduct or support of specified military operations." class="agov-definition">Designated Operational Area or Supporting a Diplomatic or Consular Mission outside the United States, is appropriate. (b) Any of the types of operations listed in paragraph (a)(1) of this section may include stability operations such as- (1) Establishment or maintenance of a safe and secure environment; or (2) Provision of <i data-tippy-content="Emergency, as used in 6.208, 13.201, 13.500, 18.001, 18.202, 18.203, and subpart 26.2, means any occasion or instance for which, in the determination of the President, Federal assistance is needed to supplement State and local efforts and capabilities to save lives and to protect property and public health and safety, or to lessen or avert the threat of a catastrophe in any part of the United States (42 U.S.C. 5122)." class="agov-definition">emergency infrastructure reconstruction, humanitarian relief, or essential governmental services (until feasible to transition to local government). (c) This section does not apply to <i data-tippy-content="Personal services contract means a contract that, by its express terms or as administered, makes the contractor personnel appear to be, in effect, Government employees (see 37.104)." class="agov-definition">personal services contracts (see FAR <a class="xref fm:ParaNumOnly" href="/far/part-37#FAR_37_104" title="37.104" aria-label="37.104. Link 203">37.104</a>), unless specified otherwise in agency procedures. </div> </article> <article class="topic concept nested3" aria-labelledby="ariaid-title25" id="FAR_25_301_2" data-part="subsection" data-part-number="25.301-2"> <h4 class="title topictitle4" id="ariaid-title25"> 25.301-2 Government support.</h4> <div class="body conbody"> (a) Generally, contractors are responsible for providing their own logistical and security support, including logistical and security support for their employees. The agency shall provide logistical or security support only when the appropriate agency official, in accordance with agency guidance, determines that- (1) Such Government support is available and is needed to ensure continuation of essential contractor services; and (2) The contractor cannot obtain adequate support from other sources at a reasonable cost. (b) The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall specify in the contract, and in the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation if possible, the exact support to be provided, and whether this support is provided on a reimbursable basis, citing the authority for the reimbursement. </div> </article> <article class="topic concept nested3" aria-labelledby="ariaid-title26" id="FAR_25_301_3" data-part="subsection" data-part-number="25.301-3"> <h4 class="title topictitle4" id="ariaid-title26"> 25.301-3 Weapons.</h4> <div class="body conbody"> The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall follow agency procedures and the weapons policy established by the combatant commander or the <i data-tippy-content="Chief of mission means the principal officer in charge of a diplomatic mission of the United States or of a United States office abroad which is designated by the Secretary of State as diplomatic in nature, including any individual assigned under section 502(c) of the Foreign Service Act of 1980 (Public Law 96-465) to be temporarily in charge of such a mission or office." class="agov-definition">chief of mission when authorizing contractor personnel to carry weapons (see paragraph (i) of the clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_19" title="52.225-19" aria-label="52.225-19. Link 202">52.225-19</a>, Contractor Personnel in a <i data-tippy-content="Designated operational area means a geographic area designated by the combatant commander or subordinate joint force commander for the conduct or support of specified military operations." class="agov-definition">Designated Operational Area or <i data-tippy-content="Supporting a diplomatic or consular mission means performing outside the United States under a contract administered by Federal agency personnel who are subject to the direction of a Chief of Mission." class="agov-definition">Supporting a Diplomatic or Consular Mission outside the United States). </div> </article> <article class="topic concept nested3" aria-labelledby="ariaid-title27" id="FAR_25_301_4" data-part="subsection" data-part-number="25.301-4"> <h4 class="title topictitle4" id="ariaid-title27"> 25.301-4 Contract clause.</h4> <div class="body conbody"> Insert the clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_19" title="52.225-19" aria-label="52.225-19. Link 202">52.225-19</a>, Contractor Personnel in a <i data-tippy-content="Designated operational area means a geographic area designated by the combatant commander or subordinate joint force commander for the conduct or support of specified military operations." class="agov-definition">Designated Operational Area or Supporting a Diplomatic or Consular Mission outside the United States, in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations and contracts, other than personal service contracts with individuals, that will require contractor personnel to perform outside the United States— (a) In a <i data-tippy-content="Designated operational area means a geographic area designated by the combatant commander or subordinate joint force commander for the conduct or support of specified military operations." class="agov-definition">designated operational area during– (1) Contingency operations; (2) Humanitarian or peacekeeping operations; or (3) Other military operations or military exercises, when designated by the combatant commander; or (b) When supporting a diplomatic or consular mission– (1) That has been designated by the Department of State as a danger pay post (see <a class="xref" href="https://aoprals.state.gov/" target="_blank" title="https://aoprals.state.gov/" aria-label="https://aoprals.state.gov/. Link 201">https://aoprals.state.gov/</a>); or (2) That the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer determines is a post at which application of the clause FAR <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_19" title="52.225-19" aria-label="52.225-19. Link 202">52.225-19</a>, Contractor Personnel in a <i data-tippy-content="Designated operational area means a geographic area designated by the combatant commander or subordinate joint force commander for the conduct or support of specified military operations." class="agov-definition">Designated Operational Area or Supporting a Diplomatic or Consular Mission outside the United States, is appropriate. </div> </article> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title28" id="FAR_25_302" data-part="section" data-part-number="25.302"> <h3 class="title topictitle3" id="ariaid-title28"> 25.302 Contractors performing private security functions outside the United States.</h3> <article class="topic concept nested3" aria-labelledby="ariaid-title29" id="FAR_25_302_1" data-part="subsection" data-part-number="25.302-1"> <h4 class="title topictitle4" id="ariaid-title29"> 25.302-1 Scope.</h4> <div class="body conbody"> This section prescribes policy for implementing section 862 of the <i data-tippy-content="National defense means any activity related to programs for military or atomic energy production or construction, military assistance to any foreign nation, stockpiling, or space, except that for use in subpart 11.6, see the definition in 11.601." class="agov-definition">National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2008 (Pub. L. 110-181), as amended by section 853 of the NDAA for FY 2009 (Pub. L. 110-417), and sections 831 and 832 of the NDAA for FY 2011 (Pub. L. 111-383) (see 10 U.S.C. Subtitle A, Part V, Subpart G Note). </div> </article> <article class="topic concept nested3" aria-labelledby="ariaid-title30" id="FAR_25_302_2" data-part="subsection" data-part-number="25.302-2"> <h4 class="title topictitle4" id="ariaid-title30"> 25.302-2 Definitions.</h4> <div class="body conbody"> As used in this section- <i data-tippy-content="Area of combat operations means an area of operations designated as such by the Secretary of Defense when enhanced coordination of contractors performing private security functions working for Government agencies is required." class="agov-definition">Area of combat operations means an area of operations designated as such by the Secretary of Defense when enhanced coordination of contractors performing private security functions working for Government agencies is required. <i data-tippy-content="Other significant military operations means activities, other than combat operations, as part of a contingency operation outside the United States that is carried out by United States Armed Forces in an uncontrolled or unpredictable high-threat environment where personnel performing security functions may be called upon to use deadly force (see 25.302-3(a)(2))." class="agov-definition">Other significant military operations means activities, other than combat operations, as part of a <i data-tippy-content="Contingency operation (10 U.S.C. 101(a)(13)) means a military operation that-(1) Is designated by the Secretary of Defense as an operation in which members of the armed forces are or may become involved in military actions, operations, or hostilities against an enemy of the United States or against an opposing military force; or(2) Results in the call or order to, or retention on, active duty of members of the uniformed services under sections 688, 12301(a), 12302, 12304, 12304a, 12305, or 12406 of title 10 of the United States Code, Chapter 13 of title 10 of the United States Code, and section 3713 of title 14 of the United States Code, or any other provision of law during a war or during a national emergency declared by the President or Congress." class="agov-definition">contingency operation outside the United States that is carried out by United States Armed Forces in an uncontrolled or unpredictable high-threat environment where personnel performing security functions may be called upon to use deadly force (see <a class="xref fm:ParaNumOnly" href="#FAR_25_302_3" title="25.302-3" aria-label="25.302-3. Link 208">25.302-3</a>(a)(2)). <i data-tippy-content="Private security functions means activities engaged in by a contractor, as follows-(1) Guarding of personnel, facilities, designated sites, or property of a Federal agency, the contractor or subcontractor, or a third party; or(2) Any other activity for which personnel are required to carry weapons in the performance of their duties in accordance with the terms of the contract." class="agov-definition">Private security functions means activities engaged in by a contractor, as follows- (1) Guarding of personnel, facilities, designated sites, or property of a <i data-tippy-content="Federal agency means any executive agency or any independent establishment in the legislative or judicial branch of the Government (except the Senate, the House of Representatives, the Architect of the Capitol, and any activities under the Architect’s direction)." class="agov-definition">Federal agency, the contractor or subcontractor, or a third party; or (2) Any other activity for which personnel are required to carry weapons in the performance of their duties in accordance with the terms of the contract. </div> </article> <article class="topic concept nested3" aria-labelledby="ariaid-title31" id="FAR_25_302_3" data-part="subsection" data-part-number="25.302-3"> <h4 class="title topictitle4" id="ariaid-title31"> 25.302-3 Applicability.</h4> <div class="body conbody"> (a) This section applies to contracts that require performance outside the United States- (1) In an <i data-tippy-content="Area of combat operations means an area of operations designated as such by the Secretary of Defense when enhanced coordination of contractors performing private security functions working for Government agencies is required." class="agov-definition">area of combat operations as designated by the Secretary of Defense; or (2) In an area of <i data-tippy-content="Other significant military operations means activities, other than combat operations, as part of a contingency operation outside the United States that is carried out by United States Armed Forces in an uncontrolled or unpredictable high-threat environment where personnel performing security functions may be called upon to use deadly force (see 25.302-3(a)(2))." class="agov-definition">other significant military operations as designated by the Secretary of Defense, and only upon agreement of the Secretary of Defense and the Secretary of State. (b) These designations can be found at <a class="xref" href="http://uscode.house.gov/browse.xhtml;jsessionid=114A3287C7B3359E597506A31FC855B3" target="_blank" title="http://www.acq.osd.mil/dpap/pacc/cc/designated_areas_of_other_significant_military_operations.html" aria-label="http://www.acq.osd.mil/dpap/pacc/cc/designated_areas_of_other_significant_military_operations.html. Link 209">http://www.acq.osd.mil/dpap/pacc/cc/designated_areas_of_other_significant_military_operations.html</a> and <a class="xref" href="http://www.acq.osd.mil/dpap/pacc/cc/designated_areas_of_combat_operations.html" target="_blank" title="http://www.acq.osd.mil/dpap/pacc/cc/designated_areas_of_combat_operations.html" aria-label="http://www.acq.osd.mil/dpap/pacc/cc/designated_areas_of_combat_operations.html. Link 210">http://www.acq.osd.mil/dpap/pacc/cc/designated_areas_of_combat_operations.html</a>. (c) When the applicability requirements of this subsection are met, contractors and subcontractors must comply with 32 CFR part 159, whether the contract is for the performance of private security functions as a primary deliverable or the provision of private security functions is ancillary to the stated deliverables. (d) The requirements of section <a class="xref fm:ParaNumOnly" href="#FAR_25_302" title="25.302" aria-label="25.302. Link 211">25.302</a> shall not apply to- (1) Contracts entered into by elements of the intelligence community in support of intelligence activities; or (2) Temporary arrangements entered into on a non-DoD contract for the performance of private security functions by individual indigenous personnel not affiliated with a local or expatriate security company. These temporary arrangements must still comply with local law. </div> </article> <article class="topic concept nested3" aria-labelledby="ariaid-title32" id="FAR_25_302_4" data-part="subsection" data-part-number="25.302-4"> <h4 class="title topictitle4" id="ariaid-title32"> 25.302-4 Policy.</h4> <div class="body conbody"> (a) General. (1) The policy, responsibilities, procedures, accountability, training, equipping, and conduct of personnel performing private security functions in designated areas are addressed at 32 CFR part 159, entitled "Private Security Contractors Operating in <i data-tippy-content="Contingency operation (10 U.S.C. 101(a)(13)) means a military operation that-(1) Is designated by the Secretary of Defense as an operation in which members of the armed forces are or may become involved in military actions, operations, or hostilities against an enemy of the United States or against an opposing military force; or(2) Results in the call or order to, or retention on, active duty of members of the uniformed services under sections 688, 12301(a), 12302, 12304, 12304a, 12305, or 12406 of title 10 of the United States Code, Chapter 13 of title 10 of the United States Code, and section 3713 of title 14 of the United States Code, or any other provision of law during a war or during a national emergency declared by the President or Congress." class="agov-definition">Contingency Operations". Contractor responsibilities include ensuring that employees are aware of, and comply with, relevant orders, directives, and instructions; keeping appropriate personnel records; accounting for weapons; registering and identifying armored vehicles, helicopters, and other military vehicles; and reporting specified incidents in which personnel performing private security functions under a contract are involved. (2) In addition, contractors are required to fully cooperate with any Government-authorized investigation into incidents reported pursuant to paragraph (c)(3) of the clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_26" title="52.225-26" aria-label="52.225-26. Link 212">52.225-26</a>, Contractors Performing Private Security Functions Outside the United States, by providing access to employees performing private security functions and relevant information in the possession of the contractor regarding the incident concerned. (b) Implementing guidance. In accordance with 32 CFR part 159- (1) Geographic combatant commanders will provide DoD contractors performing private security functions with guidance and procedures for the operational environment in their area of responsibility; and (2) In a designated <i data-tippy-content="Area of combat operations means an area of operations designated as such by the Secretary of Defense when enhanced coordination of contractors performing private security functions working for Government agencies is required." class="agov-definition">area of combat operations, or areas of <i data-tippy-content="Other significant military operations means activities, other than combat operations, as part of a contingency operation outside the United States that is carried out by United States Armed Forces in an uncontrolled or unpredictable high-threat environment where personnel performing security functions may be called upon to use deadly force (see 25.302-3(a)(2))." class="agov-definition">other significant military operations, as designated by the Secretary of Defense and only upon agreement of the Secretary of Defense and the Secretary of State, the relevant <i data-tippy-content="Chief of mission means the principal officer in charge of a diplomatic mission of the United States or of a United States office abroad which is designated by the Secretary of State as diplomatic in nature, including any individual assigned under section 502(c) of the Foreign Service Act of 1980 (Public Law 96-465) to be temporarily in charge of such a mission or office." class="agov-definition">Chief of Mission will provide implementing instructions for non-DoD contractors performing private security functions and their personnel consistent with the standards set forth by the geographic combatant commander. In accordance with 32 CFR 159.4(c), the <i data-tippy-content="Chief of mission means the principal officer in charge of a diplomatic mission of the United States or of a United States office abroad which is designated by the Secretary of State as diplomatic in nature, including any individual assigned under section 502(c) of the Foreign Service Act of 1980 (Public Law 96-465) to be temporarily in charge of such a mission or office." class="agov-definition">Chief of Mission has the <i data-tippy-content="Option means a unilateral right in a contract by which, for a specified time, the Government may elect to purchase additional supplies or services called for by the contract, or may elect to extend the term of the contract." class="agov-definition">option of instructing non-DoD contractors performing private security functions and their personnel to follow the guidance and procedures of the geographic combatant commander and/or a sub-unified commander or joint force commander where specifically authorized by the combatant commander to do so and notice of that authorization is provided to non-DoD agencies. </div> </article> <article class="topic concept nested3" aria-labelledby="ariaid-title33" id="FAR_25_302_5" data-part="subsection" data-part-number="25.302-5"> <h4 class="title topictitle4" id="ariaid-title33"> 25.302-5 Remedies.</h4> <div class="body conbody"> (a) In addition to other remedies available to the Government- (1) The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer may direct the contractor, at its own expense, to remove and replace any contractor or subcontractor personnel performing private security functions who fail to comply with or violate applicable requirements. Such action may be taken at the Government's discretion without prejudice to its rights under any other contract provision, e.g., <i data-tippy-content="Termination for default means the exercise of the Government’s right to completely or partially terminate a contract because of the contractor’s actual or anticipated failure to perform its contractual obligations." class="agov-definition">termination for default; (2) The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall include the contractor’s failure to comply with the requirements of this section in appropriate databases of past performance and consider any such failure in any responsibility determination or evaluation of past performance; and (3) In the case of award-fee contracts, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall consider a contractor’s failure to comply with the requirements of this subsection in the evaluation of the contractor’s performance during the relevant evaluation period, and may treat such failure as a basis for reducing or denying award fees for such period or for recovering all or part of award fees previously paid for such period. (b) If the performance failures are severe, prolonged, or repeated, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall refer the matter to the appropriate suspending and debarring official. </div> </article> <article class="topic concept nested3" aria-labelledby="ariaid-title34" id="FAR_25_302_6" data-part="subsection" data-part-number="25.302-6"> <h4 class="title topictitle4" id="ariaid-title34"> 25.302-6 Contract clause.</h4> <div class="body conbody"> (a) Use the clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_26" title="52.225-26" aria-label="52.225-26. Link 212">52.225-26</a>, Contractors Performing Private Security Functions Outside the United States, in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations and contracts for performance outside the United States in an area of- (1) Combat operations, as designated by the Secretary of Defense; or (2) <i data-tippy-content="Other significant military operations means activities, other than combat operations, as part of a contingency operation outside the United States that is carried out by United States Armed Forces in an uncontrolled or unpredictable high-threat environment where personnel performing security functions may be called upon to use deadly force (see 25.302-3(a)(2))." class="agov-definition">Other significant military operations, as designated by the Secretary of Defense and only upon agreement of the Secretary of Defense and the Secretary of State. (b) The clause is not required to be used for- (1) Contracts entered into by elements of the intelligence community in support of intelligence activities; or (2) Temporary arrangements entered into by non-DoD contractors for the performance of private security functions by individual indigenous personnel not affiliated with a local or expatriate security company. </div> </article> </article> </article> <article class="topic nested1" aria-labelledby="ariaid-title35" id="FAR_Subpart_25_4" data-part="subpart" data-part-number="25.4"> <h2 class="title topictitle2 Subpart" id="ariaid-title35"> Subpart 25.4 - Trade Agreements</h2> <article class="topic nested2" aria-labelledby="ariaid-title36" id="FAR_25_400" data-part="section" data-part-number="25.400"> <h3 class="title topictitle3" id="ariaid-title36"> 25.400 Scope of subpart.</h3> <div class="body"> (a) This subpart provides policies and procedures applicable to <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions that are covered by- (1) The World Trade Organization Government Procurement Agreement (<i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA), as approved by Congress in the Uruguay Round Agreements Act (Public Law 103-465); (2) Free Trade Agreements (FTA), consisting of- (i) USMCA (United States-Mexico-Canada Agreement, as approved by Congress in the United States-Mexico-Canada Agreement Implementation Act (Government Procurement Agreement applicable only to the United States and Mexico) ( <a class="xref" href="https://www.govinfo.gov/link/plaw/116/public/113" target="_blank" title="Pub. L. 116-113" aria-label="Pub. L. 116-113. Link 214">Pub. L. 116-113</a>) ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title19-chapter29&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU0MC1jaGFwdGVyMzctZnJvbnQ%3D%7C%7C%7C0%7Cfalse%7Cprelim&edition=prelim" target="_blank" title="19 U.S.C. chapter 29" aria-label="19 U.S.C. chapter 29. Link 215">19 U.S.C. chapter 29</a> (sections 4501-4732)); (ii) Chile FTA (the United States-Chile Free Trade Agreement, as approved by Congress in the United States-Chile Free Trade Agreement Implementation Act of 1993 (Pub. L. 108-77) ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank" title="19 U.S.C. 3805" aria-label="19 U.S.C. 3805. Link 216">19 U.S.C. 3805</a> note)); (iii) Singapore FTA (the United States-Singapore Free Trade Agreement, as approved by Congress in the United States-Singapore Free Trade Agreement Implementation Act (Pub. L. 108-78) ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank" title="19 U.S.C. 3805" aria-label="19 U.S.C. 3805. Link 216">19 U.S.C. 3805</a> note)); (iv) Australia FTA (the United States-Australia Free Trade Agreement, as approved by Congress in the United States-Australia Free Trade Agreement Implementation Act (Pub. L. 108-286) ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank" title="19 U.S.C. 3805" aria-label="19 U.S.C. 3805. Link 216">19 U.S.C. 3805</a> note)); (v) Morocco FTA (The United States-Morocco Free Trade Agreement, as approved by Congress in the United States-Morocco Free Trade Agreement Implementation Act (Pub. L. 108-302) ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank" title="19 U.S.C. 3805" aria-label="19 U.S.C. 3805. Link 216">19 U.S.C. 3805</a> note)); (vi) CAFTA-DR (The Dominican Republic-Central America-United States Free Trade Agreement, as approved by Congress in the Dominican Republic-Central America-United States Free Trade Agreement Implementation Act (Pub. L. 109-53) ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section4001&num=0&edition=prelim" target="_blank" title="19 U.S.C. 4001" aria-label="19 U.S.C. 4001. Link 220">19 U.S.C. 4001</a> note)); (vii) Bahrain FTA (the United States-Bahrain Free Trade Agreement, as approved by Congress in the United States-Bahrain Free Trade Agreement Implementation Act (Pub. L. 109-169) ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank" title="19 U.S.C. 3805" aria-label="19 U.S.C. 3805. Link 216">19 U.S.C. 3805</a> note)); (viii) Oman FTA (the United States-Oman Free Trade Agreement, as approved by Congress in the United States-Oman Free Trade Agreement Implementation Act (Pub. L. 109-283) ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank" title="19 U.S.C. 3805" aria-label="19 U.S.C. 3805. Link 216">19 U.S.C. 3805</a> note)); (ix) Peru FTA (the United States-Peru Trade Promotion Agreement, as approved by Congress in the United States-Peru Trade Promotion Agreement Implementation Act (Pub. L. 110-138) ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank" title="19 U.S.C. 3805" aria-label="19 U.S.C. 3805. Link 216">19 U.S.C. 3805</a> note)); (x) Korea FTA (the United States–Korea Free Trade Agreement Implementation Act (Pub. L. 112-41) ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank" title="19 U.S.C. 3805" aria-label="19 U.S.C. 3805. Link 216">19 U.S.C. 3805</a>)); (xi) Colombia FTA (the United States–Colombia Trade Promotion Agreement Implementation Act (Pub. L. 112-42) ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank" title="19 U.S.C. 3805" aria-label="19 U.S.C. 3805. Link 216">19 U.S.C. 3805</a> note)); and (xii) Panama FTA (the United States-Panama Trade Promotion Agreement Implementation Act (Pub. L. 112-43) ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section3805&num=0&edition=prelim" target="_blank" title="19 U.S.C. 3805" aria-label="19 U.S.C. 3805. Link 216">19 U.S.C. 3805</a> note)); (3) The <i data-tippy-content="Least developed country means any of the following countries: Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia." class="agov-definition">least developed country designation made by the U.S. Trade Representative, pursuant to the Trade Agreements Act ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section2511(b)(4)&num=0&edition=prelim" target="_blank" title="19 U.S.C. 2511(b)(4)" aria-label="19 U.S.C. 2511(b)(4). Link 227">19 U.S.C. 2511(b)(4)</a>), in <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions covered by the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA; (4) The Caribbean Basin Trade Initiative (CBTI) (determination of the U.S. Trade Representative that end products or <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material granted duty-free entry from countries designated as beneficiaries under the Caribbean Basin Economic Recovery Act ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section2701&num=0&edition=prelim" target="_blank" title="19 U.S.C. 2701" aria-label="19 U.S.C. 2701. Link 228">19 U.S.C. 2701</a>, et seq.), with the exception of Panama, must be treated as <i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">eligible products in <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions covered by the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA); (5) The Israeli Trade Act (the U.S.-Israel Free Trade Area Agreement, as approved by Congress in the United States-Israel Free Trade Area Implementation Act of 1985 ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section2112&num=0&edition=prelim" target="_blank" title="19 U.S.C. 2112" aria-label="19 U.S.C. 2112. Link 229">19 U.S.C. 2112</a> note)); or (6) The Agreement on Trade in Civil Aircraft (U.S. Trade Representative waiver of the Buy American statute for signatories of the Agreement on Trade in Civil Aircraft, as implemented in the Trade Agreements Act of 1979 ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section2513&num=0&edition=prelim" target="_blank" title="19 U.S.C. 2513" aria-label="19 U.S.C. 2513. Link 230">19 U.S.C. 2513</a>)). (b) For application of the trade agreements that are unique to individual agencies, see agency regulations. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title37" id="FAR_25_401" data-part="section" data-part-number="25.401"> <h3 class="title topictitle3" id="ariaid-title37"> 25.401 Exceptions.</h3> <div class="body conbody"> (a) This subpart does not apply to- (1) <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">Acquisitions set aside for small businesses; (2) <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">Acquisitions of arms, ammunition, or war materials, or purchases indispensable for national security or for <i data-tippy-content="National defense means any activity related to programs for military or atomic energy production or construction, military assistance to any foreign nation, stockpiling, or space, except that for use in subpart 11.6, see the definition in 11.601." class="agov-definition">national defense purposes; (3) <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">Acquisitions of end products for resale; (4) <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">Acquisitions from Federal Prison Industries, Inc., under <a class="xref fm:Subpart" href="/far/part-8#FAR_Subpart_8_6" title="subpart  8.6" aria-label="subpart聽 8.6. Link 231">subpart  8.6</a>, and <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions under <a class="xref fm:Subpart" href="/far/part-8#FAR_Subpart_8_7" title="subpart  8.7" aria-label="subpart聽 8.7. Link 232">subpart  8.7</a>, <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">Acquisition from Nonprofit Agencies Employing People Who Are Blind or Severely Disabled; (5) Other <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions not using full and open competition, if authorized by <a class="xref fm:Subpart" href="/far/part-6#FAR_Subpart_6_2" title="subpart  6.2" aria-label="subpart聽 6.2. Link 233">subpart  6.2</a> or <a class="xref fm:ParaNumOnly" href="/far/part-6#FAR_Subpart_6_3" title="6.3" aria-label="6.3. Link 234">6.3</a>, when the limitation of competition would preclude use of the procedures of this subpart; or <i data-tippy-content="Sole source acquisition means a contract for the purchase of supplies or services that is entered into or proposed to be entered into by an agency after soliciting and negotiating with only one source." class="agov-definition">sole source acquisitions justified in accordance with <a class="xref fm:ParaNumOnly" href="/far/part-13#FAR_13_501" title="13.501" aria-label="13.501. Link 235">13.501</a>(a); and (6) Goods and services specifically excluded under individual trade agreements, such as exceptions negotiated by the U.S. Trade Representative for particular agencies. See the agency supplementary regulations. (b) In the World Trade Organization Government Procurement Agreement (<i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA) and each FTA, there is a U.S. schedule that lists services that are excluded from that agreement in <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions by the United States. <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">Acquisitions of the following services are excluded from coverage by the U.S. schedule of the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA or an FTA as indicated in this table: <div class="agov-table-wrapper"><table class="table frame-all" aria-label="Presentation Table" role="presentation"><colgroup><col style="width:8.080808080808081%"><col style="width:42.42424242424242%"><col style="width:8.080808080808081%"><col style="width:12.121212121212121%"><col style="width:14.14141414141414%"><col style="width:15.151515151515152%"></colgroup><tbody class="tbody"> <tr> <td class="entry colsep-1 rowsep-1"> </td> <td class="entry CellBody_CtrSmallCaps colsep-1 rowsep-1"> The Service (Federal Service Codes from the Federal Procurement Data System Product/Service Code Manual are indicated in paren-theses for some services.) </td> <td class="entry CellBody_CtrSmallCaps colsep-1 rowsep-1"> <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA and KOREA FTA </td> <td class="entry CellBody_CtrSmallCaps colsep-1 rowsep-1"> Bahrain FTA, CAFTA-DR, Chile FTA, Columbia FTA, USMCA, Oman FTA, Panama FTA, and Peru FTA </td> <td class="entry CellBody_CtrSmallCaps colsep-1 rowsep-1"> Singapore FTA </td> <td class="entry CellBody_CtrSmallCaps colsep-1 rowsep-1"> Australia and Morocco FTA </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> (1) </td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">All services purchased in support of military services overseas.</td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> X </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> (2) </td> <td class="entry Hanging_FL CellBody_Hanging_FL colsep-1 rowsep-1">(i) Automatic data processing (ADP) telecommunications and transmission services (D304), except enhanced (i.e., value-added) telecommunications services.</td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> </td> <td class="entry colsep-1 rowsep-1"> </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> </td> <td class="entry Hanging_FL CellBody_Hanging_FL colsep-1 rowsep-1">(ii) ADP teleprocessing and timesharing services (D305), telecommunications network management services (D316), automated news services, data services or other information services (D317), and other ADP and telecommunications services (D399).</td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> </td> <td class="entry colsep-1 rowsep-1"> </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> </td> <td class="entry Hanging_FL CellBody_Hanging_FL colsep-1 rowsep-1">(iii) Basic telecommunications network services ( i.e., voice telephone services, packet-switched data transmission services, circuit-switched data transmission services, telex services, facsimile services, and private leased circuit services, but not information services, as defined in 47 U.S.C.153(24)).</td> <td class="entry colsep-1 rowsep-1"> * </td> <td class="entry colsep-1 rowsep-1"> * </td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> X </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> (3) </td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">Dredging.</td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> X </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> (4) </td> <td class="entry Hanging_FL CellBody_Hanging_FL colsep-1 rowsep-1">(i) Operation and management contracts of certain Government or privately owned facilities used for Government purposes, including <i data-tippy-content="Federally Funded Research and Development Centers (FFRDC’s) means activities that are sponsored under a broad charter by a Government agency (or agencies) for the purpose of performing, analyzing, integrating, supporting, and/or managing basic or applied research and/or development, and that receive 70 percent or more of their financial support from the Government; and-(1) A long-term relationship is contemplated;(2) Most or all of the facilities are owned or funded by the Government; and(3) The FFRDC has access to Government and supplier data, employees, and facilities beyond that common in a normal contractual relationship." class="agov-definition">Federally Funded Research and Development Centers.</td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> </td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> </td> <td class="entry Hanging_FL CellBody_Hanging_FL colsep-1 rowsep-1">(ii) Operation of all Department of Defense, Department of Energy, or the National Aeronautics and Space Administration facilities; and all Government-owned research and development facilities or Government-owned environmental laboratories.</td> <td class="entry colsep-1 rowsep-1"> ** </td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> ** </td> <td class="entry colsep-1 rowsep-1"> X </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> (5) </td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">Research and development.</td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> X </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> (6) </td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">Transportation services (including launching services, but not including travel agent services).</td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> X </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> (7) </td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">Utility services.</td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> X </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> (8) </td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">Maintenance, repair, modification, rebuilding and installation of equipment related to ships (J019).</td> <td class="entry colsep-1 rowsep-1"> </td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> </td> <td class="entry colsep-1 rowsep-1"> X </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> (9) </td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">Nonnuclear ship repair (J998).</td> <td class="entry colsep-1 rowsep-1"> </td> <td class="entry colsep-1 rowsep-1"> X </td> <td class="entry colsep-1 rowsep-1"> </td> <td class="entry colsep-1 rowsep-1"> X </td> </tr> </tbody></table></div> * Note1. <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">Acquisitions of the services listed at (2)(iii) of this table are a subset of the excluded services at (2)(i) and (ii), and are therefore not covered under the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA. ** Note2. <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">Acquisitions of the services listed at (4)(ii) of this table are a subset of the excluded services at (4)(i), and are therefore not covered under the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title38" id="FAR_25_402" data-part="section" data-part-number="25.402"> <h3 class="title topictitle3" id="ariaid-title38"> 25.402 General.</h3> <div class="body conbody"> (a) (1) The Trade Agreements Act ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section2501&num=0&edition=prelim" target="_blank" title="19 U.S.C.2501" aria-label="19 U.S.C.2501. Link 236">19 U.S.C.2501</a>, et seq.) provides the authority for the President to waive the Buy American statute and other discriminatory provisions for <i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">eligible products from countries that have signed an international trade agreement with the United States, or that meet certain other criteria, such as being a <i data-tippy-content="Least developed country means any of the following countries: Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia." class="agov-definition">least developed country. The President has delegated this waiver authority to the U.S. Trade Representative. In <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions covered by the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA, Free Trade Agreements, or the Israeli Trade Act, the U.S. Trade Representative has waived the Buy American statute and other discriminatory provisions for <i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">eligible products. <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offers of <i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">eligible products receive equal consideration with <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offers. (2) The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall determine the origin of services by the country in which the firm providing the services is established. See <a class="xref fm:Subpart" href="#FAR_Subpart_25_5" title="subpart  25.5" aria-label="subpart聽 25.5. Link 104">subpart  25.5</a> for evaluation procedures for supply contracts covered by trade agreements. (b) The value of the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is a determining factor in the applicability of trade agreements. Most of these dollar thresholds are subject to revision by the U.S. Trade Representative approximately every 2 years. The various thresholds are summarized as follows: <div class="agov-table-wrapper"><table class="table frame-all" id="FAR_25_402__id201DEJ0A0FP"><caption>Table 1 to Paragraph (b)</caption><colgroup><col style="width:33%"><col style="width:22%"><col style="width:22%"><col style="width:23%"></colgroup><tbody class="tbody"> <tr> <td class="entry 9pt CellHeading_9pt_Ctr align-center colsep-1 rowsep-1">Trade Agreement</td> <td class="entry 9pt CellHeading_9pt_Ctr align-center colsep-1 rowsep-1"> Supply Contract (equal to or exceeding) </td> <td class="entry 9pt CellHeading_9pt_Ctr align-center colsep-1 rowsep-1">Service Contract (equal to or exceeding)</td> <td class="entry 9pt CellHeading_9pt_Ctr align-center colsep-1 rowsep-1"><i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">Construction Contract (equal to or exceeding)</td> </tr> <tr> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"><i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1"> $174,000 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1"> $174,000 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1"> $6,708,000 </td> </tr> <tr> <td class="entry CellBody_Left align-left colsep-1 rowsep-0"> FTAs </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"></td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"></td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"></td> </tr> <tr> <td class="entry nd1 CellBody_Ind1 colsep-1 rowsep-0"> Australia FTA </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 102,280 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 102,280 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 6,708,000 </td> </tr> <tr> <td class="entry nd1 CellBody_Ind1 colsep-1 rowsep-0"> Bahrain FTA </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 174,000 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 174,000 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 13,296,489 </td> </tr> <tr> <td class="entry nd1 CellBody_Ind1 colsep-1 rowsep-0"> CAFTA-DR (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua) </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 102,280 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 102,280 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 6,708,000 </td> </tr> <tr> <td class="entry nd1 CellBody_Ind1 colsep-1 rowsep-0"> Chile FTA </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 102,280 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 102,280 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 6,708,000 </td> </tr> <tr> <td class="entry nd1 CellBody_Ind1 colsep-1 rowsep-0"> Colombia FTA </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 102,280 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 102,280 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 6,708,000 </td> </tr> <tr> <td class="entry nd1 CellBody_Ind1 colsep-1 rowsep-0"> Korea FTA </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0">100,000</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0">100,000</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 6,708,000 </td> </tr> <tr> <td class="entry nd1 CellBody_Ind1 colsep-1 rowsep-0"> Morocco FTA </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 174,000 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 174,000 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 6,708,000 </td> </tr> <tr> <td class="entry nd1 CellBody_Ind1 colsep-1 rowsep-0"> USMCA </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"></td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"></td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"></td> </tr> <tr> <td class="entry nd1 CellBody_Ind1 colsep-1 rowsep-0"> -Mexico </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 102,280 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 102,280 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 13,296,489 </td> </tr> <tr> <td class="entry nd1 CellBody_Ind1 colsep-1 rowsep-0"> Oman FTA </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 174,000 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 174,000 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 13,296,489 </td> </tr> <tr> <td class="entry nd1 CellBody_Ind1 colsep-1 rowsep-0"> Panama FTA </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 174,000 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 174,000 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 6,708,000 </td> </tr> <tr> <td class="entry nd1 CellBody_Ind1 colsep-1 rowsep-0"> Peru FTA </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 174,000 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 174,000 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 6,708,000 </td> </tr> <tr> <td class="entry nd1 CellBody_Ind1 colsep-1 rowsep-0"> Singapore FTA </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 102,280 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 102,280 </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-0"> 6,708,000 </td> </tr> <tr> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"> Israeli Trade Act </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1">50,000</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1">-</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1">-</td> </tr> </tbody></table></div> </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title39" id="FAR_25_403" data-part="section" data-part-number="25.403"> <h3 class="title topictitle3" id="ariaid-title39"> 25.403 World Trade Organization Government Procurement Agreement and Free Trade Agreements.</h3> <div class="body conbody"> (a) <i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">Eligible products from <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA and FTA countries are entitled to the nondiscriminatory treatment specified in <a class="xref fm:ParaNumOnly" href="#FAR_25_402" title="25.402" aria-label="25.402. Link 238">25.402</a>(a)(1). The <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA and FTAs specify procurement procedures designed to ensure fairness (see <a class="xref fm:ParaNumOnly" href="#FAR_25_408" title="25.408" aria-label="25.408. Link 239">25.408</a>). (b) Thresholds. (1) To determine whether the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition of products by lease, rental, or lease-purchase contract (including lease-to-ownership, or lease-with-<i data-tippy-content="Option means a unilateral right in a contract by which, for a specified time, the Government may elect to purchase additional supplies or services called for by the contract, or may elect to extend the term of the contract." class="agov-definition">option-to purchase) is covered by the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA or an FTA, calculate the estimated <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition value as follows: (i) If a fixed-term contract of 12 months or less is contemplated, use the total estimated value of the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition. (ii) If a fixed-term contract of more than 12 months is contemplated, use the total estimated value of the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition plus the estimated <i data-tippy-content="Residual value means the proceeds, less removal and disposal costs, if any, realized upon disposition of a tangible capital asset. It usually is measured by the net proceeds from the sale or other disposition of the asset, or its fair value if the asset is traded in on another asset. The estimated residual value is a current forecast of the residual value." class="agov-definition">residual value of the leased equipment at the conclusion of the contemplated term of the contract. (iii) If an indefinite-term contract is contemplated, use the estimated monthly payment multiplied by the total number of months that ordering would be possible under the proposed contract, i.e., the initial ordering period plus any optional ordering periods. (iv) If there is any doubt as to the contemplated term of the contract, use the estimated monthly payment multiplied by 48. (2) The estimated value includes the value of all <i data-tippy-content="Option means a unilateral right in a contract by which, for a specified time, the Government may elect to purchase additional supplies or services called for by the contract, or may elect to extend the term of the contract." class="agov-definition">options. (3) If, in any 12-month period, recurring or multiple awards for the same type of product or products are anticipated, use the total estimated value of these projected awards to determine whether the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA or an FTA applies. Do not divide any <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition with the intent of reducing the estimated value of the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition below the dollar threshold of the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA or an FTA. (c) Purchase restriction. (1) Under the Trade Agreements Act ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section2512&num=0&edition=prelim" target="_blank" title="19 U.S.C. 2512" aria-label="19 U.S.C. 2512. Link 240">19 U.S.C. 2512</a>), in <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions covered by the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA, acquire only U.S.-made or <i data-tippy-content="Designated country end product means a WTO GPA country end product, an FTA country end product, a least developed country end product, or a Caribbean Basin country end product." class="agov-definition">designated country end products or U.S. or <i data-tippy-content='Designated country means any of the following countries:(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Australia, Austria,, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as "the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)"), Ukraine, or United Kingdom);(2) A Free Trade Agreement (FTA) country (Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore);(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago).' class="agov-definition">designated country services, unless <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers for such end products or services are either not received or are insufficient to fulfill the requirements. This purchase restriction does not apply below the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA threshold for <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies and services, even if the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is covered by an FTA. (2) This restriction does not apply to purchases of <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies by the Department of Defense from a country with which it has entered into a reciprocal agreement, as provided in departmental regulations. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title40" id="FAR_25_404" data-part="section" data-part-number="25.404"> <h3 class="title topictitle3" id="ariaid-title40"> 25.404 Least developed countries.</h3> <div class="body conbody"> For <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions covered by the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA, <i data-tippy-content="Least developed country end product means an article that-(1) Is wholly the growth, product, or manufacture of a least developed country; or(2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in a least developed country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed. The term refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the end product, includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself." class="agov-definition">least developed country end products, <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material, and services must be treated as <i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">eligible products. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title41" id="FAR_25_405" data-part="section" data-part-number="25.405"> <h3 class="title topictitle3" id="ariaid-title41"> 25.405 Caribbean Basin Trade Initiative.</h3> <div class="body conbody"> Under the Caribbean Basin Trade Initiative, the United States Trade Representative has determined that, for <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions covered by the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA, <i data-tippy-content="Caribbean Basin country end product—(1) Means an article that–(i)(A) Is wholly the growth, product, or manufacture of a Caribbean Basin country; or(B) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in a Caribbean Basin country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed; and(ii) Is not excluded from duty-free treatment for Caribbean countries under 19 U.S.C. 2703(b).(A) For this reason, the following articles are not Caribbean Basin country end products:(1) Tuna, prepared or preserved in any manner in airtight containers.(2) Petroleum, or any product derived from petroleum.(3) Watches and watch parts (including cases, bracelets, and straps) of whatever type including, but not limited to, mechanical, quartz digital, or quartz analog, if such watches or watch parts contain any material that is the product of any country to which the Harmonized Tariff Schedule of the United States (HTSUS) column 2 rates of duty apply (i.e., Afghanistan, Cuba, Laos, North Korea, and Vietnam).(4) Certain of the following: textiles and apparel articles; footwear, handbags, luggage, flat goods, work gloves, and leather wearing apparel; or handloomed, handmade, and folklore articles.(B) Access to the HTSUS to determine duty-free status of articles of the types listed in paragraph (1)(ii)(A)(4) of this definition is available via the Internet at https://usitc.gov/tata/hts/index.htm. In particular, see the following:(1) General Note 3(c), Products Eligible for Special Tariff treatment.(2) General Note 17, Products of Countries Designated as Beneficiary Countries under the United States- Caribbean Basin Trade Partnership Act of 2000.(3) Section XXII, Chapter 98, Subchapter II, Articles Exported and Returned, Advanced or Improved Abroad, U.S. Note 7(b).(4) Section XXII, Chapter 98, Subchapter XX, Goods Eligible for Special Tariff Benefits under the United States-Caribbean Basin Trade Partnership Act; and(2) Refers to a product offered for purchase under a supply contract, but for purposes of calculating the value of the acquisition, includes services (except transportation services) incidental to the article, provided that the value of those incidental services does not exceed that of the article itself." class="agov-definition">Caribbean Basin country end products, <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material, and services must be treated as <i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">eligible products. In accordance with Section 201 (a)(3) of the Dominican Republic-Central America-United States Free Trade Implementation Act (Pub. L. 109-53) ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title19-section4031&num=0&edition=prelim" target="_blank" title="19 U.S.C. 4031" aria-label="19 U.S.C. 4031. Link 241">19 U.S.C. 4031</a>), when the CAFTA-DR agreement enters into force with respect to a country, that country is no longer designated as a beneficiary country for purposes of the Caribbean Basin Economic Recovery Act, and is therefore no longer included in the definition of "<i data-tippy-content="Caribbean Basin country means any of the following countries: Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago." class="agov-definition">Caribbean Basin country" for purposes of the Caribbean Basin Trade Initiative. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title42" id="FAR_25_406" data-part="section" data-part-number="25.406"> <h3 class="title topictitle3" id="ariaid-title42"> 25.406 Israeli Trade Act.</h3> <div class="body conbody"> <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">Acquisitions of <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies by most agencies are covered by the Israeli Trade Act, if the estimated value of the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is $50,000 or more but does not exceed the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA threshold for <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies (see <a class="xref fm:ParaNumOnly" href="#FAR_25_402" title="25.402" aria-label="25.402. Link 238">25.402</a>(b)). Agencies other than the Department of Defense, the Department of Energy, the Department of Transportation, the Bureau of Reclamation of the Department of the Interior, the Federal Housing Finance Board, and the Office of Thrift Supervision must evaluate <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers of <i data-tippy-content="Israeli end product means an article that-(1) Is wholly the growth, product, or manufacture of Israel; or(2) In the case of an article that consists in whole or in part of materials from another country, has been substantially transformed in Israel into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed." class="agov-definition">Israeli end products without regard to the restrictions of the Buy American statute. The Israeli Trade Act does not prohibit the purchase of other foreign end products. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title43" id="FAR_25_407" data-part="section" data-part-number="25.407"> <h3 class="title topictitle3" id="ariaid-title43"> 25.407 Agreement on Trade in Civil Aircraft.</h3> <div class="body conbody"> Under the authority of Section 303 of the Trade Agreements Act, the U.S. Trade Representative has waived the Buy American statute for <i data-tippy-content="Civil aircraft and related articles means-(1) All aircraft other than aircraft to be purchased for use by the Department of Defense or the U.S. Coast Guard;(2) The engines (and parts and components for incorporation into the engines) of these aircraft;(3) Any other parts, components, and subassemblies for incorporation into the aircraft; and(4) Any ground flight simulators, and parts and components of these simulators, for use with respect to the aircraft, whether to be used as original or replacement equipment in the manufacture, repair, maintenance, rebuilding, modification, or conversion of the aircraft and without regard to whether the aircraft or articles receive duty-free treatment under section 601(a)(2) of the Trade Agreements Act." class="agov-definition">civil aircraft and related articles that meet the substantial transformation test of the Trade Agreements Act, from countries that are parties to the Agreement on Trade in Civil Aircraft. Those countries are Albania, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Macao China, Malta, Montenegro, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, Taiwan (Chinese Taipei), and the United Kingdom. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title44" id="FAR_25_408" data-part="section" data-part-number="25.408"> <h3 class="title topictitle3" id="ariaid-title44"> 25.408 Procedures.</h3> <div class="body conbody"> (a) If the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA or an FTA applies (see <a class="xref fm:ParaNumOnly" href="#FAR_25_401" title="25.401" aria-label="25.401. Link 243">25.401</a>), the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must- (1) Comply with the requirements of <a class="xref fm:ParaNumOnly" href="/far/part-5#FAR_5_203" title="5.203" aria-label="5.203. Link 244">5.203</a>, Publicizing and response time; (2) Comply with the requirements of <a class="xref fm:ParaNumOnly" href="/far/part-5#FAR_5_207" title="5.207" aria-label="5.207. Link 245">5.207</a>, Preparation and transmittal of synopses; (3) Not include technical requirements in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations solely to preclude the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition of <i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">eligible products; (4) Specify in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations that offerors must submit <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers in the English language and in U.S. dollars (see <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_214_34" title="52.214-34" aria-label="52.214-34. Link 246">52.214-34</a>, Submission of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offers in the English Language, and <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_214_35" title="52.214-35" aria-label="52.214-35. Link 247">52.214-35</a>, Submission of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offers in U.S. Currency, or paragraph (c)(5) of <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_215_1" title="52.215-1" aria-label="52.215-1. Link 248">52.215-1</a>, Instruction to Offerors-Competitive <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">Acquisitions); and (5) Provide unsuccessful offerors from <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA or FTA countries notice in accordance with <a class="xref fm:ParaNumOnly" href="/far/part-14#FAR_14_409_1" title="14.409-1" aria-label="14.409-1. Link 249">14.409-1</a> or <a class="xref fm:ParaNumOnly" href="/far/part-15#FAR_15_503" title="15.503" aria-label="15.503. Link 250">15.503</a>. (b) See <a class="xref fm:Subpart" href="#FAR_Subpart_25_5" title="subpart  25.5" aria-label="subpart聽 25.5. Link 104">subpart  25.5</a> for evaluation procedures and examples. </div> </article> </article> <article class="topic nested1" aria-labelledby="ariaid-title45" id="FAR_Subpart_25_5" data-part="subpart" data-part-number="25.5"> <h2 class="title topictitle2 Subpart" id="ariaid-title45"> Subpart 25.5 - Evaluating Foreign Offers-Supply Contracts</h2> <article class="topic concept nested2" aria-labelledby="ariaid-title46" id="FAR_25_501" data-part="section" data-part-number="25.501"> <h3 class="title topictitle3" id="ariaid-title46"> 25.501 General.</h3> <div class="body conbody"> The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer- (a) Must apply the evaluation procedures of this subpart to each <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line item of an <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer unless either the <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer or the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation specifies evaluation on a group basis (see <a class="xref fm:ParaNumOnly" href="#FAR_25_503" title="25.503" aria-label="25.503. Link 252">25.503</a>); (b) May rely on the offeror’s certification of end product origin when evaluating a foreign offer; (c) Must identify and reject <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers of end products that are prohibited in accordance with <a class="xref fm:Subpart" href="#FAR_Subpart_25_7" title="subpart  25.7" aria-label="subpart聽 25.7. Link 253">subpart  25.7</a>; and (d) When trade agreements are involved, must not use the Buy American statute evaluation factors prescribed in this subpart to provide a preference for one foreign offer over another foreign offer. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title47" id="FAR_25_502" data-part="section" data-part-number="25.502"> <h3 class="title topictitle3" id="ariaid-title47"> 25.502 Application.</h3> <div class="body conbody"> (a) Unless otherwise specified in agency regulations, perform the following steps in the order presented: (1) Eliminate all <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers or offerors that are unacceptable for reasons other than price; e.g., nonresponsive, debarred or suspended, or a prohibited source (see <a class="xref fm:Subpart" href="#FAR_Subpart_25_7" title="subpart  25.7" aria-label="subpart聽 25.7. Link 253">subpart  25.7</a>). (2) Rank the remaining <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers by price. (3) If the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation specifies award on the basis of factors in addition to cost or price, apply the evaluation factors as specified in this section and use the evaluated cost or price in determining the <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer that represents the <i data-tippy-content="Best value means the expected outcome of an acquisition that, in the Government's estimation, provides the greatest overall benefit in response to the requirement." class="agov-definition">best value to the Government. (b) For <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions covered by the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA (see <a class="xref fm:Subpart" href="#FAR_Subpart_25_4" title="subpart  25.4" aria-label="subpart聽 25.4. Link 97">subpart  25.4</a>)- (1) Consider only <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers of U.S.-made or <i data-tippy-content="Designated country end product means a WTO GPA country end product, an FTA country end product, a least developed country end product, or a Caribbean Basin country end product." class="agov-definition">designated country end products, unless no <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers of such end products were received; (2) If the agency gives the same consideration given <i data-tippy-content="Eligible offer means an offer of an eligible product. When the solicitation specifies that award will be made on a group of line items, an eligible offer means a foreign offer where the combined proposed price of the eligible products and the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">eligible offers to <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers of <i data-tippy-content="U.S.-made end product means an article that is mined, produced, or manufactured in the United States or that is substantially transformed in the United States into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed." class="agov-definition">U.S.-made end products that are not <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end products, award on the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer. Otherwise, evaluate in accordance with agency procedures; and (3) If there were no <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers of U.S.-made or <i data-tippy-content="Designated country end product means a WTO GPA country end product, an FTA country end product, a least developed country end product, or a Caribbean Basin country end product." class="agov-definition">designated country end products, make a nonavailability determination (see <a class="xref fm:ParaNumOnly" href="#FAR_25_103" title="25.103" aria-label="25.103. Link 133">25.103</a>(b)(2)) and award on the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer (see <a class="xref fm:ParaNumOnly" href="#FAR_25_403" title="25.403" aria-label="25.403. Link 257">25.403</a>(c)). (c) For <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions not covered by the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA, but subject to the Buy American statute (an FTA or the Israeli Trade Act also may apply), the following applies: (1) If the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer is a <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer or an <i data-tippy-content="Eligible offer means an offer of an eligible product. When the solicitation specifies that award will be made on a group of line items, an eligible offer means a foreign offer where the combined proposed price of the eligible products and the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">eligible offer under an FTA or the Israeli Trade Act, award on that <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer. (2) If the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer is a noneligible offer and there were no <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offers (see <a class="xref fm:ParaNumOnly" href="#FAR_25_103" title="25.103" aria-label="25.103. Link 133">25.103</a>(b)(3)), award on the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer. The procedures at <a class="xref fm:ParaNumOnly" href="#FAR_25_106" title="25.106" aria-label="25.106. Link 146">25.106</a>(b)(2) and <a class="xref fm:ParaNumOnly" href="#FAR_25_106" title="25.106" aria-label="25.106. Link 146">25.106</a>(c)(2) do not apply. (3) If the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer is a noneligible offer and there is an <i data-tippy-content="Eligible offer means an offer of an eligible product. When the solicitation specifies that award will be made on a group of line items, an eligible offer means a foreign offer where the combined proposed price of the eligible products and the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">eligible offer that is lower than the lowest <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer, award on the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer. The procedures at <a class="xref fm:ParaNumOnly" href="#FAR_25_106" title="25.106" aria-label="25.106. Link 146">25.106</a>(b)(2) and <a class="xref fm:ParaNumOnly" href="#FAR_25_106" title="25.106" aria-label="25.106. Link 146">25.106</a>(c)(2) do not apply. (4) Otherwise, apply the appropriate evaluation factor provided in <a class="xref fm:ParaNumOnly" href="#FAR_25_106" title="25.106" aria-label="25.106. Link 146">25.106</a> to the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer. The procedures at <a class="xref fm:ParaNumOnly" href="#FAR_25_106" title="25.106" aria-label="25.106. Link 146">25.106</a>(b)(2) and <a class="xref fm:ParaNumOnly" href="#FAR_25_106" title="25.106" aria-label="25.106. Link 146">25.106</a>(c)(2) do not apply. (i) If the evaluated price of the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer remains less than the lowest <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer, award on the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer. (ii) If the price of the lowest <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer is less than the evaluated price of the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer, award on the lowest <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer. (d) Ties. (1) If application of an evaluation factor results in a tie between a <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer and a foreign offer, award on the <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer. (2) If no evaluation preference was applied (i.e., <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers afforded nondiscriminatory treatment under the Buy American statute), resolve ties between domestic and foreign offers by a witnessed drawing of lots by an impartial individual. (3) Resolve ties between foreign offers from small business concerns (under the Buy American statute, a small business offering a manufactured article that does not meet the definition of "<i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end product" is a foreign offer) or foreign offers from a small business concern and a large business concern in accordance with <a class="xref fm:ParaNumOnly" href="/far/part-14#FAR_14_408_6" title="14.408-6" aria-label="14.408-6. Link 266">14.408-6</a>(a). </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title48" id="FAR_25_503" data-part="section" data-part-number="25.503"> <h3 class="title topictitle3" id="ariaid-title48"> 25.503 Group offers.</h3> <div class="body conbody"> (a) If the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation or an <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer specifies that award can be made only on a group of <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line items or on all <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line items contained in the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation or <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer, reject the <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer- (1) If any part of the award would consist of prohibited end products (see <a class="xref fm:Subpart" href="#FAR_Subpart_25_7" title="subpart  25.7" aria-label="subpart聽 25.7. Link 253">subpart  25.7</a>); or (2) If the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is covered by the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA and any part of the <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer consists of items restricted in accordance with <a class="xref fm:ParaNumOnly" href="#FAR_25_403" title="25.403" aria-label="25.403. Link 257">25.403</a>(c). (b) If an <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer restricts award to a group of <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line items or to all <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line items contained in the <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer, determine for each <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line item whether to apply an evaluation factor (see <a class="xref fm:ParaNumOnly" href="#FAR_25_504_4" title="25.504-4" aria-label="25.504-4. Link 269">25.504-4</a>, Example 1). (1) First, evaluate <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers that do not specify an award restriction on a <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line item basis in accordance with <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>, determining a tentative award pattern by selecting for each <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line item the <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer with the lowest evaluated price. (2) Evaluate an <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer that specifies an award restriction against the offered prices of the tentative award pattern, applying the appropriate evaluation factor on a <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line item basis. (3) Compute the total evaluated price for the tentative award pattern and the <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer that specified an award restriction. (4) Unless the total evaluated price of the <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer that specified an award restriction is less than the total evaluated price of the tentative award pattern, award based on the tentative award pattern. (c) If the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation specifies that award will be made only on a group of <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line items or all <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line items contained in the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation, determine the category of end products on the basis of each <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line item, but determine whether to apply an evaluation factor on the basis of the group of items (see <a class="xref fm:ParaNumOnly" href="#FAR_25_504_4" title="25.504-4" aria-label="25.504-4. Link 269">25.504-4</a>, Example 2). (1) If the proposed price of <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end products exceeds 50 percent of the total proposed price of the group, evaluate the entire group as a <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer. Evaluate all other groups as foreign offers. (2) For foreign offers, if the proposed price of <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end products and <i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">eligible products exceeds 50 percent of the total proposed price of the group, evaluate the entire group as an <i data-tippy-content="Eligible offer means an offer of an eligible product. When the solicitation specifies that award will be made on a group of line items, an eligible offer means a foreign offer where the combined proposed price of the eligible products and the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">eligible offer. (3) Apply the evaluation factor to the entire group in accordance with <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>. (d) If no trade agreement applies to a <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation and the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation specifies that award will be made only on a group of <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line items or all <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line items contained in the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation, determine the category of end products ( i.e., domestic or foreign) on the basis of each <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line item, but determine whether to apply an evaluation factor on the basis of the group of items ( see <a class="xref fm:ParaNumOnly" href="#FAR_25_504_4" title="25.504-4" aria-label="25.504-4. Link 269">25.504-4</a>(c), Example 3). (1) If the proposed price of domestic end products exceeds 50 percent of the total proposed price of the group, evaluate the entire group as a <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer. Evaluate all other groups as foreign offers. (2) Apply the evaluation factor to the entire group in accordance with <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>, except where <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>(c)(4) applies and the evaluated price of the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer remains less than the lowest <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer. Where the evaluated price of the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer remains less than the lowest <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer, treat as a <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer any group where the proposed price of end products with a domestic content of at least 55 percent exceeds 50 percent of the total proposed price of the group. (3) Apply the evaluation factor to the entire group in accordance with <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>(c)(4). </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title49" id="FAR_25_504" data-part="section" data-part-number="25.504"> <h3 class="title topictitle3" id="ariaid-title49"> 25.504 Evaluation examples.</h3> <div class="body conbody"> The following examples illustrate the application of the evaluation procedures in <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a> and <a class="xref fm:ParaNumOnly" href="#FAR_25_503" title="25.503" aria-label="25.503. Link 252">25.503</a>. The examples assume that the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer has eliminated all <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers that are unacceptable for reasons other than price or a trade agreement (see <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>(a)(1)). The evaluation factor may change as provided in agency regulations. </div> <article class="topic concept nested3" aria-labelledby="ariaid-title50" id="FAR_25_504_1" data-part="subsection" data-part-number="25.504-1"> <h4 class="title topictitle4" id="ariaid-title50"> 25.504-1 Buy American statute.</h4> <div class="body conbody"> (a) (1) Example 1. <div class="agov-table-wrapper"><table class="table frame-all" aria-label="Presentation Table" role="presentation"><colgroup><col style="width:19%"><col style="width:21%"><col style="width:60%"></colgroup><tbody class="tbody"> <tr> <td class="entry colsep-1 rowsep-1"><i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A</td> <td class="entry colsep-1 rowsep-1"> $16,000 </td> <td class="entry colsep-1 rowsep-1"><i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">Domestic end product, small business</td> </tr> <tr> <td class="entry colsep-1 rowsep-1"><i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B</td> <td class="entry colsep-1 rowsep-1"> $15,700 </td> <td class="entry colsep-1 rowsep-1"><i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">Domestic end product, small business</td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C </td> <td class="entry colsep-1 rowsep-1"> $10,100 </td> <td class="entry colsep-1 rowsep-1"> U.S.-made end product (not domestic), small business </td> </tr> </tbody></table></div> (2) Analysis: This <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is for end products for use in the United States and is set aside for small business concerns. The Buy American statute applies. Since the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition value is less than $50,000 and the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is set aside, none of the trade agreements apply. Perform the steps in <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>(a). <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C is of 50 percent domestic content, therefore <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C is evaluated as a foreign end product, because it is the product of a small business but is not a <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end product ( see <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>(c)(4)). Since <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B is a <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer, apply the 30 percent factor to <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C ( see <a class="xref fm:ParaNumOnly" href="#FAR_25_106" title="25.106" aria-label="25.106. Link 146">25.106</a>(b)(2)). The resulting evaluated price of $13,130 remains lower than <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B. The cost of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B is therefore unreasonable ( see <a class="xref fm:ParaNumOnly" href="#FAR_25_106" title="25.106" aria-label="25.106. Link 146">25.106</a>(b)(1)(ii)). The <a class="xref fm:ParaNumOnly" href="#FAR_25_106" title="25.106" aria-label="25.106. Link 146">25.106</a>(b)(2) procedures do not apply. Award on <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C at $10,100 ( see <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>(c)(4)(i)). (b) (1) Example 2. <div class="agov-table-wrapper"><table class="table frame-all" aria-label="Presentation Table" role="presentation"><colgroup><col style="width:18%"><col style="width:19%"><col style="width:63%"></colgroup><tbody class="tbody"> <tr> <td class="entry colsep-1 rowsep-1"><i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A</td> <td class="entry colsep-1 rowsep-1">$11,000</td> <td class="entry colsep-1 rowsep-1"><i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">Domestic end product, small business</td> </tr> <tr> <td class="entry colsep-1 rowsep-1"><i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B</td> <td class="entry colsep-1 rowsep-1">$10,700</td> <td class="entry colsep-1 rowsep-1"><i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">Domestic end product, small business</td> </tr> <tr> <td class="entry colsep-1 rowsep-1"><i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C</td> <td class="entry colsep-1 rowsep-1">$10,200</td> <td class="entry colsep-1 rowsep-1"><i data-tippy-content="U.S.-made end product means an article that is mined, produced, or manufactured in the United States or that is substantially transformed in the United States into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed." class="agov-definition">U.S.-made end product (not domestic), small business</td> </tr> </tbody></table></div> (2) Analysis: This <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is for end products for use in the United States and is set aside for small business concerns. The Buy American statute applies. Perform the steps in <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>(a). <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C is evaluated as a foreign end product because it is the product of a small business but is not a <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end product (see <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>(c)(4)). After applying the 30 percent factor, the evaluated price of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C is $13,260. Award on <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B at $10,700 (see <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>(c)(4)(ii)). (c) (1) Example 3. <div class="agov-table-wrapper"><table class="table frame-all" id="FAR_25_504_1__table_3_25504_1" aria-label="Presentation Table" role="presentation"><colgroup><col style="width:18%"><col style="width:19%"><col style="width:63%"></colgroup><tbody class="tbody"> <tr> <td class="entry colsep-1 rowsep-1"><i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A</td> <td class="entry colsep-1 rowsep-1">$14,000</td> <td class="entry colsep-1 rowsep-1"><i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">Domestic end product (complies with the required domestic content), small business.</td> </tr> <tr> <td class="entry colsep-1 rowsep-1"><i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B</td> <td class="entry colsep-1 rowsep-1">12,500</td> <td class="entry colsep-1 rowsep-1"><i data-tippy-content="U.S.-made end product means an article that is mined, produced, or manufactured in the United States or that is substantially transformed in the United States into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed." class="agov-definition">U.S.-made end product (not domestic, exceeds 55% domestic content), small business.</td> </tr> <tr> <td class="entry colsep-1 rowsep-1"><i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C</td> <td class="entry colsep-1 rowsep-1">10,100</td> <td class="entry colsep-1 rowsep-1"><i data-tippy-content="U.S.-made end product means an article that is mined, produced, or manufactured in the United States or that is substantially transformed in the United States into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed." class="agov-definition">U.S.-made end product (not domestic, with less than 55% domestic content), small business.</td> </tr> </tbody></table></div> (2) Analysis. This <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is for end products for use in the United States and is set aside for small business concerns. The Buy American statute applies. Since the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition value is less than $50,000 and the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is set aside, none of the trade agreements apply. Perform the steps in <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>(a). <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offers B and C are initially evaluated as foreign end products, because they are the products of small businesses but are not <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end products ( see <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>(c)(4)). <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C is the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer. After applying the 30 percent factor, the evaluated price of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C is $13,130. The resulting evaluated price of $13,130 remains lower than <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A. The cost of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A is therefore unreasonable. <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B is then treated as a <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer, because it is for a <i data-tippy-content="U.S.-made end product means an article that is mined, produced, or manufactured in the United States or that is substantially transformed in the United States into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed." class="agov-definition">U.S.-made end product that exceeds 55 percent domestic content ( see <a class="xref fm:ParaNumOnly" href="#FAR_25_106" title="25.106" aria-label="25.106. Link 146">25.106</a>(b)(2)). <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B is determined reasonable because it is lower than the $13,130 evaluated price of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C. Award on <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B at $12,500. </div> </article> <article class="topic concept nested3" aria-labelledby="ariaid-title51" id="FAR_25_504_2" data-part="subsection" data-part-number="25.504-2"> <h4 class="title topictitle4" id="ariaid-title51"> 25.504-2 WTO GPA/Caribbean Basin Trade Initiative/FTAs.</h4> <div class="body conbody"> Example 1. <div class="agov-table-wrapper"><table class="table frame-all" aria-label="Presentation Table" role="presentation"><colgroup><col style="width:16%"><col style="width:18%"><col style="width:66%"></colgroup><tbody class="tbody"> <tr> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"><i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">$304,000</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"><i data-tippy-content="U.S.-made end product means an article that is mined, produced, or manufactured in the United States or that is substantially transformed in the United States into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed." class="agov-definition">U.S.-made end product (not domestic)</td> </tr> <tr> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"><i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">$303,000</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"><i data-tippy-content="U.S.-made end product means an article that is mined, produced, or manufactured in the United States or that is substantially transformed in the United States into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed." class="agov-definition">U.S.-made end product (domestic), small business</td> </tr> <tr> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"><i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">$300,000</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"><i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">Eligible product</td> </tr> <tr> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"><i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer D</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">$295,000</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">Noneligible product (not U.S.-made)</td> </tr> </tbody></table></div> Analysis: Eliminate <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer D because the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is covered by the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA and there is an <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer of a U.S.-made or an <i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">eligible product (see <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>(b)(1)). If the agency gives the same consideration given <i data-tippy-content="Eligible offer means an offer of an eligible product. When the solicitation specifies that award will be made on a group of line items, an eligible offer means a foreign offer where the combined proposed price of the eligible products and the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">eligible offers to <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers of <i data-tippy-content="U.S.-made end product means an article that is mined, produced, or manufactured in the United States or that is substantially transformed in the United States into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed." class="agov-definition">U.S.-made end products that are not <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offers, it is unnecessary to determine if <i data-tippy-content="U.S.-made end product means an article that is mined, produced, or manufactured in the United States or that is substantially transformed in the United States into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed." class="agov-definition">U.S.-made end products are domestic (large or small business). No further analysis is necessary. Award on the low remaining <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer, <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C (see <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>(b)(2)). </div> </article> <article class="topic concept nested3" aria-labelledby="ariaid-title52" id="FAR_25_504_3" data-part="subsection" data-part-number="25.504-3"> <h4 class="title topictitle4" id="ariaid-title52"> 25.504-3 FTA/Israeli Trade Act.</h4> <div class="body conbody"> (a) Example 1. <div class="agov-table-wrapper"><table class="table frame-all" aria-label="Presentation Table" role="presentation"><colgroup><col style="width:15%"><col style="width:18%"><col style="width:67%"></colgroup><tbody class="tbody"> <tr> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"><i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">$105,000</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"><i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">Domestic end product, small business</td> </tr> <tr> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"> <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B </td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">$100,000</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"><i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">Eligible product</td> </tr> </tbody></table></div> Analysis: Since the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer is an <i data-tippy-content="Eligible offer means an offer of an eligible product. When the solicitation specifies that award will be made on a group of line items, an eligible offer means a foreign offer where the combined proposed price of the eligible products and the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">eligible offer, award on the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer (see <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>(c)(1)). (b) Example 2. <div class="agov-table-wrapper"><table class="table frame-all" aria-label="Presentation Table" role="presentation"><colgroup><col style="width:18%"><col style="width:19%"><col style="width:63%"></colgroup><tbody class="tbody"> <tr> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"><i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">$105,000</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"><i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">Eligible product</td> </tr> <tr> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"> <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B </td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">$103,000</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">Noneligible product</td> </tr> </tbody></table></div> Analysis: Since the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is not covered by the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer can consider the noneligible offer. Since no <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer was received, make a nonavailability determination and award on <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B (see <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>(c)(2)). (c) Example 3. <div class="agov-table-wrapper"><table class="table frame-all" aria-label="Presentation Table" role="presentation"><colgroup><col style="width:16%"><col style="width:18%"><col style="width:66%"></colgroup><tbody class="tbody"> <tr> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"><i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">$105,000</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"><i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">Domestic end product, large business</td> </tr> <tr> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"> <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B </td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">$103,000</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"><i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">Eligible product</td> </tr> <tr> <td class="entry CellBody_Left align-left colsep-1 rowsep-1"> <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C </td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">$100,000</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1">Noneligible product</td> </tr> </tbody></table></div> Analysis: Since the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is not covered by the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer can consider the noneligible offer. Because the <i data-tippy-content="Eligible offer means an offer of an eligible product. When the solicitation specifies that award will be made on a group of line items, an eligible offer means a foreign offer where the combined proposed price of the eligible products and the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">eligible offer (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B) is lower than the <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A), no evaluation factor applies to the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C). Award on the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer (see <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>(c)(3)). </div> </article> <article class="topic concept nested3" aria-labelledby="ariaid-title53" id="FAR_25_504_4" data-part="subsection" data-part-number="25.504-4"> <h4 class="title topictitle4" id="ariaid-title53"> 25.504-4 Group award basis.</h4> <div class="body conbody"> (a) Example 1. <div class="agov-table-wrapper"><table class="table frame-all" aria-label="Presentation Table"><colgroup><col style="width:10.891089108910892%"><col style="width:9.900990099009901%"><col style="width:3.9603960396039604%"><col style="width:15.841584158415841%"><col style="width:9.900990099009901%"><col style="width:3.9603960396039604%"><col style="width:15.841584158415841%"><col style="width:9.900990099009901%"><col style="width:3.9603960396039604%"><col style="width:15.841584158415841%"></colgroup><thead class="thead"> <tr> <th class="entry CellHeading_Ctr align-center colsep-1 rowsep-1" id="FAR_25_504_4__d1638e95__entry__1" colspan="10" aria-label="OFFERS"><i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">OFFERS</th> </tr> <tr> <th class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1" id="FAR_25_504_4__d1638e95__entry__2" aria-label="Item">Item</th> <th class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1" id="FAR_25_504_4__d1638e95__entry__3" colspan="3" aria-label="A">A</th> <th class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1" id="FAR_25_504_4__d1638e95__entry__4" colspan="3" aria-label="B">B</th> <th class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1" id="FAR_25_504_4__d1638e95__entry__5" colspan="3" aria-label="C">C</th> </tr> </thead><tbody class="tbody"> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__2 "> 1 </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__3 ">DO</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__3 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__3 ">$55,000</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__4 ">EL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__4 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__4 ">$56,000</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__5 ">NEL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__5 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__5 ">$50,000</td> </tr> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__2 "> 2 </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__3 ">NEL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__3 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__3 "> $13,000</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__4 ">EL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__4 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__4 "> $10,000</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__5 ">EL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__5 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__5 "> $13,000</td> </tr> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__2 "> 3 </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__3 ">NEL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__3 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__3 "> $11,500</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__4 ">DO</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__4 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__4 "> $12,000</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__5 ">DO</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__5 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__5 "> $10,000</td> </tr> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__2 "> 4 </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__3 ">NEL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__3 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__3 "> $24,000</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__4 ">EL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__4 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__4 "> $28,000</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__5 ">NEL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__5 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__5 "> $22,000</td> </tr> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__2 "> 5 </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__3 ">DO</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__3 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__3 "> $18,000 </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__4 ">NEL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__4 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__4 "> $10,000 </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__5 ">DO</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__5 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__5 "> $14,000 </td> </tr> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__2 "> </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__3 " colspan="3">$121,500</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__4 " colspan="3">$116,000</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__1 FAR_25_504_4__d1638e95__entry__5 " colspan="3">$109,000</td> </tr> </tbody></table></div> <div class="agov-table-wrapper"><table class="table frame-none" aria-label="Presentation Table" role="presentation"><colgroup><col style="width:12%"><col style="width:7.000000000000001%"><col style="width:81%"></colgroup><tbody class="tbody"> <tr> <td class="entry colsep-0 rowsep-0"> Key: </td> <td class="entry colsep-0 rowsep-0"> </td> <td class="entry colsep-0 rowsep-0"> </td> </tr> <tr> <td class="entry CellBody_Left align-left colsep-0 rowsep-0">DO</td> <td class="entry colsep-0 rowsep-0"> = </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-0"><i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">Domestic end product</td> </tr> <tr> <td class="entry CellBody_Left align-left colsep-0 rowsep-0">EL</td> <td class="entry colsep-0 rowsep-0"> = </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-0"><i data-tippy-content="Eligible product means a foreign end product, construction material, or service that, due to applicability of a trade agreement to a particular acquisition, is not subject to discriminatory treatment." class="agov-definition">Eligible product</td> </tr> <tr> <td class="entry CellBody_Left align-left colsep-0 rowsep-0">NEL</td> <td class="entry colsep-0 rowsep-0"> = </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-0">Noneligible product</td> </tr> </tbody></table></div> Problem: Offeror C specifies all-or-none award. Assume all offerors are large businesses. The <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is not covered by the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA. Analysis: (see <a class="xref fm:ParaNumOnly" href="#FAR_25_503" title="25.503" aria-label="25.503. Link 252">25.503</a>) STEP 1: Evaluate <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offers A & B before considering <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C and determine which <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer has the lowest evaluated cost for each <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line item (the tentative award pattern): Item 1: Low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer A is domestic; select A. Item 2: Low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer B is eligible; do not apply factor; select B. Item 3: Low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer A is noneligible and <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B is a <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer. Apply a 20 percent factor to <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A. The evaluated price of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A is higher than <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B; select B. Item 4: Low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer A is noneligible. Since neither <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer is a <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer, no evaluation factor applies; select A. Item 5: Low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer B is noneligible; apply a 20 percent factor to <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B. <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A is still higher than <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B; select B. STEP 2: Evaluate <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C against the tentative award pattern for <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offers A and B: <div class="agov-table-wrapper"><table class="table frame-all" aria-label="Presentation Table"><colgroup><col style="width:11%"><col style="width:14.000000000000002%"><col style="width:15%"><col style="width:4%"><col style="width:24%"><col style="width:10%"><col style="width:4%"><col style="width:18%"></colgroup><thead class="thead"> <tr> <th class="entry CellHeading_Ctr align-center colsep-1 rowsep-1" id="FAR_25_504_4__d1638e95__entry__72" colspan="8" aria-label="OFFERS"><i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">OFFERS</th> </tr> <tr> <th class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1" id="FAR_25_504_4__d1638e95__entry__73" aria-label="Item">Item</th> <th class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1" id="FAR_25_504_4__d1638e95__entry__74" aria-label="Low Offer">Low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer</th> <th class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1" id="FAR_25_504_4__d1638e95__entry__75" colspan="3" aria-label="Tentative Award Pattern from A and B">Tentative Award Pattern from A and B</th> <th class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1" id="FAR_25_504_4__d1638e95__entry__76" colspan="3" aria-label="C">C</th> </tr> </thead><tbody class="tbody"> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__73 "> 1 </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__74 "> A </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__75 ">DO</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__75 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__75 ">$ 55,000</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__76 ">*NEL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__76 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__76 "> $60,000 </td> </tr> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__73 "> 2 </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__74 "> B </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__75 ">EL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__75 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__75 ">$10,000</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__76 ">EL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__76 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__76 "> $13,000 </td> </tr> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__73 "> 3 </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__74 "> B </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__75 ">DO</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__75 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__75 ">$12,000</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__76 ">DO</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__76 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__76 "> $10,000 </td> </tr> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__73 "> 4 </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__74 "> A </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__75 ">NEL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__75 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__75 ">$24,000</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__76 ">NEL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__76 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__76 "> $22,000 </td> </tr> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__73 "> 5 </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__74 "> B </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__75 ">*NEL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__75 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__75 "> $12,000 </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__76 ">DO</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__76 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__76 "> $14,000 </td> </tr> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__73 "> TOTAL </td> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__74 "> </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__75 " colspan="3">$113,000</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__72 FAR_25_504_4__d1638e95__entry__76 " colspan="3">$119,000</td> </tr> </tbody></table></div> *<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer + 20 percent. On a <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line item basis, apply a factor to any noneligible offer if the other <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer for that <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line item is domestic. For Item 1, apply a factor to <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C because <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A is domestic and the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition was not covered by the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA. The evaluated price of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C, Item 1, becomes $60,000 ($50,000 plus 20 percent). Apply a factor to <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B, Item 5, because it is a noneligible product and <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C is domestic. The evaluated price of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B is $12,000 ($10,000 plus 20 percent). Evaluate the remaining items without applying a factor. STEP 3: The tentative unrestricted award pattern from <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offers A and B is lower than the evaluated price of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C. Award the combination of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offers A and B. Note that if <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C had not specified all-or-none award, award would be made on <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C for <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line items 3 and 4, totaling an award of $32,000. (b) Example 2. <div class="agov-table-wrapper"><table class="table frame-all" aria-label="Presentation Table"><colgroup><col style="width:10.891089108910892%"><col style="width:9.900990099009901%"><col style="width:3.9603960396039604%"><col style="width:15.841584158415841%"><col style="width:9.900990099009901%"><col style="width:3.9603960396039604%"><col style="width:15.841584158415841%"><col style="width:9.900990099009901%"><col style="width:3.9603960396039604%"><col style="width:15.841584158415841%"></colgroup><thead class="thead"> <tr> <th class="entry CellHeading_Ctr align-center colsep-1 rowsep-1" id="FAR_25_504_4__d1638e95__entry__121" colspan="10" aria-label="OFFERS"><i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">OFFERS</th> </tr> <tr> <th class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1" id="FAR_25_504_4__d1638e95__entry__122" aria-label="Item">Item</th> <th class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1" id="FAR_25_504_4__d1638e95__entry__123" colspan="3" aria-label="A">A</th> <th class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1" id="FAR_25_504_4__d1638e95__entry__124" colspan="3" aria-label="B">B</th> <th class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1" id="FAR_25_504_4__d1638e95__entry__125" colspan="3" aria-label="C">C</th> </tr> </thead><tbody class="tbody"> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__122 "> 1 </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__123 ">DO</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__123 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__123 ">$50,000</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__124 ">EL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__124 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__124 ">$50,500</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__125 ">NEL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__125 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__125 ">$50,000</td> </tr> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__122 "> 2 </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__123 ">NEL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__123 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__123 ">$10,300</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__124 ">NEL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__124 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__124 ">$10,000</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__125 ">EL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__125 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__125 ">$10,200</td> </tr> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__122 "> 3 </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__123 ">EL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__123 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__123 ">$20,400</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__124 ">EL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__124 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__124 ">$21,000</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__125 ">NEL</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__125 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__125 ">$20,200</td> </tr> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__122 "> 4 </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__123 ">DO</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__123 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__123 "> $10,500 </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__124 ">DO</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__124 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__124 "> $10,300 </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__125 ">DO</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__125 ">=</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__125 "> $10,400 </td> </tr> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__122 "> TOTAL </td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__123 " colspan="3">$91,200</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__124 " colspan="3">$91,800</td> <td class="entry CellBody_Right align-right colsep-1 rowsep-1" headers="FAR_25_504_4__d1638e95__entry__121 FAR_25_504_4__d1638e95__entry__125 " colspan="3">$90,800</td> </tr> </tbody></table></div> Problem: The <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation specifies award on a group basis. Assume the Buy American statute applies and the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition cannot be set aside for small business concerns. All offerors are large businesses. Analysis: (see <a class="xref fm:ParaNumOnly" href="#FAR_25_503" title="25.503" aria-label="25.503. Link 252">25.503</a>(c)) STEP 1: Determine which of the <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers are domestic (see <a class="xref fm:ParaNumOnly" href="#FAR_25_503" title="25.503" aria-label="25.503. Link 252">25.503</a>(c)(1)): <div class="agov-table-wrapper"><table class="table frame-all" aria-label="Presentation Table" role="presentation"><colgroup><col style="width:6%"><col style="width:53%"><col style="width:41%"></colgroup><tbody class="tbody"> <tr> <td class="entry CellHeading_Ctr align-center colsep-1 rowsep-1"></td> <td class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1">Domestic [percent]</td> <td class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1">Determination</td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> A </td> <td class="entry colsep-1 rowsep-1"> $50,000 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A1) + $10,500 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A4) = $60,500 $60,500/$91,200 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A Total) = 66.3% </td> <td class="entry colsep-1 rowsep-1"> Domestic </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> B </td> <td class="entry colsep-1 rowsep-1"> $10,300 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B4) /$91,800 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B Total) $ = 11.2% </td> <td class="entry colsep-1 rowsep-1"> Foreign </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> C </td> <td class="entry colsep-1 rowsep-1"> $10,400 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C4) /$90,800 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C Total) = 11.5% </td> <td class="entry colsep-1 rowsep-1"> Foreign </td> </tr> </tbody></table></div> STEP 2: Determine whether foreign offers are eligible or noneligible offers (see <a class="xref fm:ParaNumOnly" href="#FAR_25_503" title="25.503" aria-label="25.503. Link 252">25.503</a>(c)(2)): <div class="agov-table-wrapper"><table class="table frame-all" aria-label="Presentation Table" role="presentation"><colgroup><col style="width:5%"><col style="width:62%"><col style="width:33%"></colgroup><tbody class="tbody"> <tr> <td class="entry CellHeading_Ctr align-center colsep-1 rowsep-1"></td> <td class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1">Domestic + Eligible [percent]</td> <td class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1">Determination</td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> A </td> <td class="entry colsep-1 rowsep-1"> N/A (Both Domestic) </td> <td class="entry colsep-1 rowsep-1"> Domestic </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> B </td> <td class="entry colsep-1 rowsep-1"> $50,500 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B1) + $21,000 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B3) + $10,300 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B4)= $81,800. $81,800 /$91,800 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B Total) = 89.1% </td> <td class="entry colsep-1 rowsep-1"> Eligible </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> C </td> <td class="entry colsep-1 rowsep-1"> $10,200 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C2) + $10,400 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C4) = $20,600. $20,600/$90,800 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C Total) = 22.7% </td> <td class="entry colsep-1 rowsep-1"> Noneligible </td> </tr> </tbody></table></div> STEP 3: Determine whether to apply an evaluation factor (see <a class="xref fm:ParaNumOnly" href="#FAR_25_503" title="25.503" aria-label="25.503. Link 252">25.503</a>(c)(3)). The low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C) is a foreign offer. There is no <i data-tippy-content="Eligible offer means an offer of an eligible product. When the solicitation specifies that award will be made on a group of line items, an eligible offer means a foreign offer where the combined proposed price of the eligible products and the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">eligible offer lower than the <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer. Therefore, apply the factor to the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer. Addition of the 20 percent factor (use 30 percent if <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A is a small business) to <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C yields an evaluated price of $108,960 ($90,800 + 20 percent). Award on <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A (see <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>(c)(4)(ii)). Note that, if <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A were greater than <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B, an evaluation factor would not be applied, and award would be on <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C (see <a class="xref fm:ParaNumOnly" href="#FAR_25_502" title="25.502" aria-label="25.502. Link 270">25.502</a>(c)(3)). (c) Example 3. <div class="agov-table-wrapper"><table class="table frame-all" id="FAR_25_504_4__table_325044" aria-label="Presentation Table"><colgroup><col style="width:11.66603126191384%"><col style="width:11.399161265726269%"><col style="width:3.812428516965307%"><col style="width:11.208539839878002%"><col style="width:11.894776972931757%"><col style="width:5.2992756385817765%"><col style="width:10.484178421654594%"><col style="width:14.944719786504002%"><col style="width:6.671749904689286%"><col style="width:12.619138391155166%"></colgroup><thead class="thead"> <tr> <th class="entry CellHeading_Ctr align-center colsep-1 rowsep-1" id="FAR_25_504_4__table_325044__entry__1" colspan="10" aria-label="OFFERS"><i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">OFFERS</th> </tr> <tr> <th class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1" id="FAR_25_504_4__table_325044__entry__2" aria-label="Item">Item</th> <th class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1" id="FAR_25_504_4__table_325044__entry__3" colspan="3" aria-label="A">A</th> <th class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1" id="FAR_25_504_4__table_325044__entry__4" colspan="3" aria-label="B">B</th> <th class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1" id="FAR_25_504_4__table_325044__entry__5" colspan="3" aria-label="C">C</th> </tr> </thead><tbody class="tbody"> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__2 "> 1 </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__3 ">DO</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__3 ">=</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__3 ">$17,800</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__4 ">FO (>55%)</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__4 ">=</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__4 ">$16,000</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__5 ">FO (>55%)</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__5 ">=</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__5 ">$11,200</td> </tr> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__2 "> 2 </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__3 ">FO (>55%)</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__3 ">=</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__3 "> $9,000</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__4 ">FO (>55%)</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__4 ">=</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__4 "> $8,500</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__5 ">DO</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__5 ">=</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__5 "> $10,200</td> </tr> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__2 "> 3 </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__3 ">FO (>55%)</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__3 ">=</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__3 "> $11,200</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__4 ">FO (>55%)</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__4 ">=</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__4 "> $12,000</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__5 ">FO (>55%)</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__5 ">=</td> <td class="entry CellBody_Right align-left colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__5 "> $11,000</td> </tr> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__2 "> 4 </td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__3 ">DO</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__3 ">=</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__3 "> $10,000</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__4 ">DO</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__4 ">=</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__4 "> $9,000</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__5 ">FO (>55%)</td> <td class="entry CellBody_Left align-left colsep-0 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__5 ">=</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__5 "> $6,400</td> </tr> <tr> <td class="entry colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__2 "> Total </td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__3 " colspan="3">$48,000</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__4 " colspan="3">$45,500</td> <td class="entry CellBody_Left align-left colsep-1 rowsep-1" headers="FAR_25_504_4__table_325044__entry__1 FAR_25_504_4__table_325044__entry__5 " colspan="3">$38,800.</td> </tr> </tbody></table></div> Key: DO = <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">Domestic end product (complies with the required domestic content). FO > 55% = Foreign end product with domestic content exceeding 55%. FO < 55% = Foreign end product with domestic content of 55% or less. Problem: The <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation specifies award on a group basis. Assume only the Buy American statute applies ( i.e., no trade agreements apply) and the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition cannot be set aside for small business concerns. All offerors are large businesses. Analysis: (see <a class="xref fm:ParaNumOnly" href="#FAR_25_503" title="25.503" aria-label="25.503. Link 252">25.503</a>(d)) STEP 1: Determine which of the <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers are domestic (see <a class="xref fm:ParaNumOnly" href="#FAR_25_503" title="25.503" aria-label="25.503. Link 252">25.503</a>(d)(1)). <div class="agov-table-wrapper"><table class="table frame-all" id="FAR_25_504_4__table_3a25044b" aria-label="Presentation Table" role="presentation"><colgroup><col style="width:6%"><col style="width:53%"><col style="width:41%"></colgroup><tbody class="tbody"> <tr> <td class="entry CellHeading_Ctr align-center colsep-1 rowsep-1"></td> <td class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1">Domestic [percent]</td> <td class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1">Determination</td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> A </td> <td class="entry colsep-1 rowsep-1"> $17,800 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A1) + $10,000 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A4) = $27,800 $27,800/$48,000 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A Total) = 58% </td> <td class="entry colsep-1 rowsep-1"> Domestic </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> B </td> <td class="entry colsep-1 rowsep-1"> $9,000 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B4)/$45,500 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B Total) = 19.8% </td> <td class="entry colsep-1 rowsep-1"> Foreign </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> C </td> <td class="entry colsep-1 rowsep-1"> $10,200 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C2)/$38,800 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C Total) = 26.3% </td> <td class="entry colsep-1 rowsep-1"> Foreign </td> </tr> </tbody></table></div> STEP 2: Determine which <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer, domestic or foreign, is the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer. If the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer is a foreign offer, apply the evaluation factor (see 25.503(d)(2)). The low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C) is a foreign offer. Therefore, apply the factor to the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer. Addition of the 20 percent factor (use 30 percent if <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer A is a small business) to <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C yields an evaluated price of $46,560 ($38,800 + 20 percent). <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C remains the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer. STEP 3: Determine if there is a foreign <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer that could be treated as a <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer (see <a class="xref fm:ParaNumOnly" href="#FAR_25_106" title="25.106" aria-label="25.106. Link 146">25.106</a>(b)(2) and <a class="xref fm:ParaNumOnly" href="#FAR_25_503" title="25.503" aria-label="25.503. Link 252">25.503</a>(d)(2)). <div class="agov-table-wrapper"><table class="table frame-all" id="FAR_25_504_4__table3b25044c" aria-label="Presentation Table" role="presentation"><colgroup><col style="width:5%"><col style="width:62%"><col style="width:33%"></colgroup><tbody class="tbody"> <tr> <td class="entry CellHeading_Ctr align-center colsep-1 rowsep-1"></td> <td class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1">Amount of domestic content (percent)</td> <td class="entry SmallCaps CellHeading_CtrSmallCaps align-center colsep-1 rowsep-1">Determination</td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> A </td> <td class="entry colsep-1 rowsep-1"> N/A </td> <td class="entry colsep-1 rowsep-1"> N/A </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> B </td> <td class="entry colsep-1 rowsep-1"> $9,000 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B4)/$45,500 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B Total) $ = 19.8% is domestic AND $16,000 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B1) + $8,500 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B2) + $12,000 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B3) = $36,500 $36,500/$45,500 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B Total) = 80.2% can be treated as domestic 19.8% + 80.2% = 100% is domestic or can be treated as domestic </td> <td class="entry colsep-1 rowsep-1"> Can be treated as domestic. </td> </tr> <tr> <td class="entry colsep-1 rowsep-1"> C </td> <td class="entry colsep-1 rowsep-1">$10,200 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C2)/$38,800 (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C Total) = 26.3% is domestic</td> <td class="entry colsep-1 rowsep-1"> Noneligible </td> </tr> </tbody></table></div> STEP 4: If there is a foreign offer that could be treated as a <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer, compare the evaluated price of the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer to the price of the <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer treated as domestic ( see <a class="xref fm:ParaNumOnly" href="#FAR_25_503" title="25.503" aria-label="25.503. Link 252">25.503</a>(d)(3)). <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B can be treated as a <i data-tippy-content="Domestic offer means an offer of a domestic end product. When the solicitation specifies that award will be made on a group of line items, a domestic offer means an offer where the proposed price of the domestic end products exceeds 50 percent of the total proposed price of the group." class="agov-definition">domestic offer ($45,500). The evaluated price of the low <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer (<i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer C) is $46,560. Award on <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offer B. </div> </article> </article> </article> <article class="topic nested1" aria-labelledby="ariaid-title54" id="FAR_Subpart_25_6" data-part="subpart" data-part-number="25.6"> <h2 class="title topictitle2 Subpart" id="ariaid-title54"> Subpart 25.6 - American Recovery and Reinvestment Act-Buy American statute-Construction Materials</h2> <article class="topic nested2" aria-labelledby="ariaid-title55" id="FAR_25_600" data-part="section" data-part-number="25.600"> <h3 class="title topictitle3" id="ariaid-title55"> 25.600 Scope of subpart.</h3> <div class="body"> This subpart implements section 1605 in Division A of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5) (Recovery Act) with regard to manufactured construction material and the <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title41-chapter83&saved=%7CZ3JhbnVsZWlkOlVTQy1wcmVsaW0tdGl0bGU0MC1jaGFwdGVyMzctZnJvbnQ%3D%7C%7C%7C0%7Cfalse%7Cprelim&edition=prelim" target="_blank" title="41 U.S.C. chapter 83" aria-label="41 U.S.C. chapter 83. Link 93">41 U.S.C. chapter 83</a>, Buy American (referred to in this subpart as the Buy American statute) with regard to <i data-tippy-content="Unmanufactured construction material means raw material brought to the construction site for incorporation into the building or work that has not been-(1) Processed into a specific form and shape; or(2) Combined with other raw material to create a material that has different properties than the properties of the individual raw materials." class="agov-definition">unmanufactured construction material. It applies to <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction projects that use funds appropriated or otherwise provided by the Recovery Act. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title56" id="FAR_25_601" data-part="section" data-part-number="25.601"> <h3 class="title topictitle3" id="ariaid-title56"> 25.601 Definitions.</h3> <div class="body conbody"> As used in this subpart- <i data-tippy-content="Domestic construction material means the following:(1) An unmanufactured construction material mined or produced in the United States. (The Buy American statute applies.)(2) A manufactured construction material that is manufactured in the United States and, if the construction material consists wholly or predominantly of iron or steel, the iron or steel was produced in the United States. (Section 1605 of the Recovery Act applies.)" class="agov-definition">Domestic construction material means the following: (1) An <i data-tippy-content="Unmanufactured construction material means raw material brought to the construction site for incorporation into the building or work that has not been-(1) Processed into a specific form and shape; or(2) Combined with other raw material to create a material that has different properties than the properties of the individual raw materials." class="agov-definition">unmanufactured construction material mined or produced in the United States. (The Buy American statute applies.) (2) A manufactured construction material that is manufactured in the United States and, if the <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material consists wholly or predominantly of iron or steel, the iron or steel was produced in the United States. (Section 1605 of the Recovery Act applies.) Foreign construction material means a <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material other than a <i data-tippy-content="Domestic construction material means the following:(1) An unmanufactured construction material mined or produced in the United States. (The Buy American statute applies.)(2) A manufactured construction material that is manufactured in the United States and, if the construction material consists wholly or predominantly of iron or steel, the iron or steel was produced in the United States. (Section 1605 of the Recovery Act applies.)" class="agov-definition">domestic construction material. Manufactured construction material means any <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material that is not <i data-tippy-content="Unmanufactured construction material means raw material brought to the construction site for incorporation into the building or work that has not been-(1) Processed into a specific form and shape; or(2) Combined with other raw material to create a material that has different properties than the properties of the individual raw materials." class="agov-definition">unmanufactured construction material. <i data-tippy-content="Public building or public work means a building or work, the construction, prosecution, completion, or repair of which is carried on directly or indirectly by authority of, or with funds of, a Federal agency to serve the interest of the general public regardless of whether title thereof is in a Federal agency (see 22.401). These buildings and works may include, without limitation, bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, pumping stations, heavy generators, railways, airports, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, and canals, and the construction, alteration, maintenance, or repair of such buildings and works." class="agov-definition">Public building or public work means a <i data-tippy-content='Building or work means construction activity as distinguished from manufacturing, furnishing of materials, or servicing and maintenance work. The terms include, without limitation, buildings, structures, and improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, pumping stations, heavy generators, railways, airports, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, dredging, shoring, rehabilitation and reactivation of plants, scaffolding, drilling, blasting, excavating, clearing, and landscaping. The manufacture or furnishing of materials, articles, supplies, or equipment (whether or not a Federal or State agency acquires title to such materials, articles, supplies, or equipment during the course of the manufacture or furnishing, or owns the materials from which they are manufactured or furnished) is not "building" or "work" within the meaning of this definition unless conducted in connection with and at the site of such building or work as is described in the foregoing sentence, or under the United States Housing Act of 1937 and the Housing Act of 1949 in the construction or development of the project.' class="agov-definition">building or work, the <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction, prosecution, completion, or repair of which is carried on directly or indirectly by authority of, or with funds of, a <i data-tippy-content="Federal agency means any executive agency or any independent establishment in the legislative or judicial branch of the Government (except the Senate, the House of Representatives, the Architect of the Capitol, and any activities under the Architect’s direction)." class="agov-definition">Federal agency to serve the interest of the general public regardless of whether title thereof is in a <i data-tippy-content="Federal agency means any executive agency or any independent establishment in the legislative or judicial branch of the Government (except the Senate, the House of Representatives, the Architect of the Capitol, and any activities under the Architect’s direction)." class="agov-definition">Federal agency (see <a class="xref fm:ParaNumOnly" href="/far/part-22#FAR_22_401" title="22.401" aria-label="22.401. Link 310">22.401</a>). These buildings and works may include, without limitation, bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, pumping stations, heavy generators, railways, airports, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, and canals, and the <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction, alteration, maintenance, or repair of such buildings and works. <i data-tippy-content="Recovery Act designated country means a World Trade Organization Government Procurement Agreement country, a Free Trade Agreement country, or a least developed country." class="agov-definition">Recovery Act designated country means a World Trade Organization Government Procurement Agreement country, a <i data-tippy-content="Free Trade Agreement country means Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore." class="agov-definition">Free Trade Agreement country, or a <i data-tippy-content="Least developed country means any of the following countries: Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia." class="agov-definition">least developed country. <i data-tippy-content="Unmanufactured construction material means raw material brought to the construction site for incorporation into the building or work that has not been-(1) Processed into a specific form and shape; or(2) Combined with other raw material to create a material that has different properties than the properties of the individual raw materials." class="agov-definition">Unmanufactured construction material means raw material brought to the <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction site for incorporation into the <i data-tippy-content='Building or work means construction activity as distinguished from manufacturing, furnishing of materials, or servicing and maintenance work. The terms include, without limitation, buildings, structures, and improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, pumping stations, heavy generators, railways, airports, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, dredging, shoring, rehabilitation and reactivation of plants, scaffolding, drilling, blasting, excavating, clearing, and landscaping. The manufacture or furnishing of materials, articles, supplies, or equipment (whether or not a Federal or State agency acquires title to such materials, articles, supplies, or equipment during the course of the manufacture or furnishing, or owns the materials from which they are manufactured or furnished) is not "building" or "work" within the meaning of this definition unless conducted in connection with and at the site of such building or work as is described in the foregoing sentence, or under the United States Housing Act of 1937 and the Housing Act of 1949 in the construction or development of the project.' class="agov-definition">building or work that has not been- (1) Processed into a specific form and shape; or (2) Combined with other raw material to create a material that has different properties than the properties of the individual raw materials. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title57" id="FAR_25_602" data-part="section" data-part-number="25.602"> <h3 class="title topictitle3" id="ariaid-title57"> 25.602 Policy.</h3> <article class="topic concept nested3" aria-labelledby="ariaid-title58" id="FAR_25_602_1" data-part="subsection" data-part-number="25.602-1"> <h4 class="title topictitle4" id="ariaid-title58"> 25.602-1 Section 1605 of the Recovery Act.</h4> <div class="body conbody"> Except as provided in <a class="xref fm:ParaNumOnly" href="#FAR_25_603" title="25.603" aria-label="25.603. Link 311">25.603</a>- (a) None of the funds appropriated or otherwise made available by the Recovery Act may be used for a project for the <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction, alteration, maintenance, or repair of a <i data-tippy-content="Public building or public work means a building or work, the construction, prosecution, completion, or repair of which is carried on directly or indirectly by authority of, or with funds of, a Federal agency to serve the interest of the general public regardless of whether title thereof is in a Federal agency (see 22.401). These buildings and works may include, without limitation, bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, pumping stations, heavy generators, railways, airports, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, and canals, and the construction, alteration, maintenance, or repair of such buildings and works." class="agov-definition">public building or public work unless the <i data-tippy-content="Public building or public work means a building or work, the construction, prosecution, completion, or repair of which is carried on directly or indirectly by authority of, or with funds of, a Federal agency to serve the interest of the general public regardless of whether title thereof is in a Federal agency (see 22.401). These buildings and works may include, without limitation, bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, pumping stations, heavy generators, railways, airports, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, and canals, and the construction, alteration, maintenance, or repair of such buildings and works." class="agov-definition">public building or public work is located in the United States and- (1) All of the iron, steel, and manufactured goods used as <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material in the project are produced or manufactured in the United States. (i) All manufactured construction material must be manufactured in the United States. (ii) Iron or steel components. (A) Iron or steel components of <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material consisting wholly or predominantly of iron or steel must be produced in the United States. This does not restrict the origin of the elements of the iron or steel, but requires that all manufacturing processes of the iron or steel must take place in the United States, except metallurgical processes involving refinement of steel additives. (B) The requirement in paragraph (a)(1)(ii)(A) of this section does not apply to iron or steel components or subcomponents in <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material that does not consist wholly or predominantly of iron or steel. (iii) All other components. There is no restriction on the origin or place of production or manufacture of components or subcomponents that do not consist of iron or steel. (iv) Examples. (A) If a steel guardrail consists predominantly of steel, even though coated with aluminum, then the steel would be subject to the section 1605 restriction requiring that all stages of production of the steel occur in the United States, in addition to the requirement to manufacture the guardrail in the United States. There would be no restrictions on the other components of the guardrail. (B) If a wooden window frame is delivered to the site as a single <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material, there is no restriction on any of the components, including the steel lock on the window frame; or (2) If trade agreements apply, the manufactured construction material shall either comply with the requirements of paragraph (a)(1) of this subsection, or be wholly the product of or be substantially transformed in a <i data-tippy-content="Recovery Act designated country means a World Trade Organization Government Procurement Agreement country, a Free Trade Agreement country, or a least developed country." class="agov-definition">Recovery Act designated country; (b) Manufactured materials purchased directly by the Government and delivered to the site for incorporation into the project shall meet the same domestic source requirements as specified for manufactured construction material in paragraphs (a)(1) and (a)(2) of this section; and (c) A project may include several contracts, a single contract, or one or more <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line items on a contract. </div> </article> <article class="topic concept nested3" aria-labelledby="ariaid-title59" id="FAR_25_602_2" data-part="subsection" data-part-number="25.602-2"> <h4 class="title topictitle4" id="ariaid-title59"> 25.602-2 Buy American statute</h4> <div class="body conbody"> Except as provided in <a class="xref fm:ParaNumOnly" href="#FAR_25_603" title="25.603" aria-label="25.603. Link 311">25.603</a>, use only <i data-tippy-content="Unmanufactured construction material means raw material brought to the construction site for incorporation into the building or work that has not been-(1) Processed into a specific form and shape; or(2) Combined with other raw material to create a material that has different properties than the properties of the individual raw materials." class="agov-definition">unmanufactured construction material mined or produced in the United States, as required by the Buy American statute or, if trade agreements apply, <i data-tippy-content="Unmanufactured construction material means raw material brought to the construction site for incorporation into the building or work that has not been-(1) Processed into a specific form and shape; or(2) Combined with other raw material to create a material that has different properties than the properties of the individual raw materials." class="agov-definition">unmanufactured construction material mined or produced in a <i data-tippy-content='Designated country means any of the following countries:(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Australia, Austria,, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as "the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)"), Ukraine, or United Kingdom);(2) A Free Trade Agreement (FTA) country (Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore);(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago).' class="agov-definition">designated country may also be used. </div> </article> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title60" id="FAR_25_603" data-part="section" data-part-number="25.603"> <h3 class="title topictitle3" id="ariaid-title60"> 25.603 Exceptions.</h3> <div class="body conbody"> (a) (1) When one of the following exceptions applies, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer may allow the contractor to incorporate foreign manufactured construction materials without regard to the restrictions of section 1605 of the Recovery Act or foreign <i data-tippy-content="Unmanufactured construction material means raw material brought to the construction site for incorporation into the building or work that has not been-(1) Processed into a specific form and shape; or(2) Combined with other raw material to create a material that has different properties than the properties of the individual raw materials." class="agov-definition">unmanufactured construction material without regard to the restrictions of the Buy American statute: (i) Nonavailability. The head of the contracting activity may determine that a particular <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material is not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities of a satisfactory quality. The determinations of nonavailability of the articles listed at <a class="xref fm:ParaNumOnly" href="#FAR_25_104" title="25.104" aria-label="25.104. Link 141">25.104</a>(a) and the procedures at <a class="xref fm:ParaNumOnly" href="#FAR_25_103" title="25.103" aria-label="25.103. Link 133">25.103</a>(b)(1) also apply if any of those articles are acquired as <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction materials. (ii) Unreasonable cost. The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer concludes that the cost of <i data-tippy-content="Domestic construction material means the following:(1) An unmanufactured construction material mined or produced in the United States. (The Buy American statute applies.)(2) A manufactured construction material that is manufactured in the United States and, if the construction material consists wholly or predominantly of iron or steel, the iron or steel was produced in the United States. (Section 1605 of the Recovery Act applies.)" class="agov-definition">domestic construction material is unreasonable in accordance with <a class="xref fm:ParaNumOnly" href="#FAR_25_605" title="25.605" aria-label="25.605. Link 315">25.605</a>. (iii) Inconsistent with public interest. The head of the agency may determine that application of the restrictions of section 1605 of the Recovery Act to a particular manufactured construction material, or the restrictions of the Buy American statute to a particular <i data-tippy-content="Unmanufactured construction material means raw material brought to the construction site for incorporation into the building or work that has not been-(1) Processed into a specific form and shape; or(2) Combined with other raw material to create a material that has different properties than the properties of the individual raw materials." class="agov-definition">unmanufactured construction material would be inconsistent with the public interest. (2) In addition, the head of the agency may determine that application of the Buy American statute to a particular <i data-tippy-content="Unmanufactured construction material means raw material brought to the construction site for incorporation into the building or work that has not been-(1) Processed into a specific form and shape; or(2) Combined with other raw material to create a material that has different properties than the properties of the individual raw materials." class="agov-definition">unmanufactured construction material would be impracticable. (b) Determinations. When a determination is made, for any of the reasons stated in this section, that certain foreign construction materials may be used- (1) The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall list the excepted materials in the contract; and (2) For determinations with regard to the inapplicability of section 1605 of the Recovery Act, unless the <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material has already been determined to be domestically nonavailable (see list at <a class="xref fm:ParaNumOnly" href="#FAR_25_104" title="25.104" aria-label="25.104. Link 141">25.104</a>), the head of the agency shall provide a notice to the Federal Register within three business days after the determination is made, with a copy to the Administrator for Federal Procurement Policy and to the Recovery Accountability and Transparency Board. The notice shall include- (i) The title "Buy American Exception under the American Recovery and Reinvestment Act of 2009"; (ii) The dollar value and brief description of the project; and (iii) A detailed justification as to why the restriction is being waived. (c) <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">Acquisitions under trade agreements. (1) For <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction contracts with an estimated <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition value of $6,708,000 or more, also see subpart <a class="xref fm:ParaNumOnly" href="#FAR_Subpart_25_4" title="25.4" aria-label="25.4. Link 108">25.4</a>. <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offers proposing the use of <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material from a <i data-tippy-content='Designated country means any of the following countries:(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Australia, Austria,, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as "the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)"), Ukraine, or United Kingdom);(2) A Free Trade Agreement (FTA) country (Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore);(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago).' class="agov-definition">designated country shall receive equal consideration with <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers proposing the use of <i data-tippy-content="Domestic construction material means the following:(1) An unmanufactured construction material mined or produced in the United States. (The Buy American statute applies.)(2) A manufactured construction material that is manufactured in the United States and, if the construction material consists wholly or predominantly of iron or steel, the iron or steel was produced in the United States. (Section 1605 of the Recovery Act applies.)" class="agov-definition">domestic construction material. (2) For purposes of applying section 1605 of the Recovery Act to evaluation of manufactured construction material, <i data-tippy-content='Designated country means any of the following countries:(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Australia, Austria,, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as "the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)"), Ukraine, or United Kingdom);(2) A Free Trade Agreement (FTA) country (Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore);(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago).' class="agov-definition">designated countries do not include the <i data-tippy-content="Caribbean Basin country means any of the following countries: Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago." class="agov-definition">Caribbean Basin Countries. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title61" id="FAR_25_604" data-part="section" data-part-number="25.604"> <h3 class="title topictitle3" id="ariaid-title61"> 25.604 Preaward determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American statute.</h3> <div class="body conbody"> (a) For any <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition, an offeror may request from the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer a determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American statute for specifically identified <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction materials. The time for submitting the request is specified in the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation in paragraph (b) of either <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_22" title="52.225-22" aria-label="52.225-22. Link 318">52.225-22</a> or <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_24" title="52.225-24" aria-label="52.225-24. Link 319">52.225-24</a>, whichever applies. The information and supporting data that must be included in the request are also specified in the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation in paragraphs (c) and (d) of either <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_21" title="52.225-21" aria-label="52.225-21. Link 320">52.225-21</a> or <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_23" title="52.225-23" aria-label="52.225-23. Link 321">52.225-23</a>, whichever applies. (b) Before award, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must evaluate all requests based on the information provided and may supplement this information with other readily available information. (c) Determination based on unreasonable cost of <i data-tippy-content="Domestic construction material means the following:(1) An unmanufactured construction material mined or produced in the United States. (The Buy American statute applies.)(2) A manufactured construction material that is manufactured in the United States and, if the construction material consists wholly or predominantly of iron or steel, the iron or steel was produced in the United States. (Section 1605 of the Recovery Act applies.)" class="agov-definition">domestic construction material. (1) Manufactured construction material. The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must compare the offered price of the contract using foreign manufactured construction material (i.e., any <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material not manufactured in the United States, or <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material consisting predominantly of iron or steel and the iron or steel is not produced in the United States) to the estimated price if all domestic manufactured construction material were used. If use of domestic manufactured construction material would increase the overall offered price of the contract by more than 25 percent, then the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall determine that the cost of the domestic manufactured construction material is unreasonable (2) <i data-tippy-content="Unmanufactured construction material means raw material brought to the construction site for incorporation into the building or work that has not been-(1) Processed into a specific form and shape; or(2) Combined with other raw material to create a material that has different properties than the properties of the individual raw materials." class="agov-definition">Unmanufactured construction material. The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must compare the cost of each foreign <i data-tippy-content="Unmanufactured construction material means raw material brought to the construction site for incorporation into the building or work that has not been-(1) Processed into a specific form and shape; or(2) Combined with other raw material to create a material that has different properties than the properties of the individual raw materials." class="agov-definition">unmanufactured construction material to the cost of domestic <i data-tippy-content="Unmanufactured construction material means raw material brought to the construction site for incorporation into the building or work that has not been-(1) Processed into a specific form and shape; or(2) Combined with other raw material to create a material that has different properties than the properties of the individual raw materials." class="agov-definition">unmanufactured construction material. If the cost of the domestic <i data-tippy-content="Unmanufactured construction material means raw material brought to the construction site for incorporation into the building or work that has not been-(1) Processed into a specific form and shape; or(2) Combined with other raw material to create a material that has different properties than the properties of the individual raw materials." class="agov-definition">unmanufactured construction material exceeds the cost of the foreign <i data-tippy-content="Unmanufactured construction material means raw material brought to the construction site for incorporation into the building or work that has not been-(1) Processed into a specific form and shape; or(2) Combined with other raw material to create a material that has different properties than the properties of the individual raw materials." class="agov-definition">unmanufactured construction material by more than 20 percent, then the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall determine that the cost of the domestic <i data-tippy-content="Unmanufactured construction material means raw material brought to the construction site for incorporation into the building or work that has not been-(1) Processed into a specific form and shape; or(2) Combined with other raw material to create a material that has different properties than the properties of the individual raw materials." class="agov-definition">unmanufactured construction material is unreasonable. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title62" id="FAR_25_605" data-part="section" data-part-number="25.605"> <h3 class="title topictitle3" id="ariaid-title62"> 25.605 Evaluating offers of foreign construction material.</h3> <div class="body conbody"> (a) If the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer has determined that an exception applies because the cost of certain <i data-tippy-content="Domestic construction material means the following:(1) An unmanufactured construction material mined or produced in the United States. (The Buy American statute applies.)(2) A manufactured construction material that is manufactured in the United States and, if the construction material consists wholly or predominantly of iron or steel, the iron or steel was produced in the United States. (Section 1605 of the Recovery Act applies.)" class="agov-definition">domestic construction material is unreasonable, in accordance with section <a class="xref fm:ParaNumOnly" href="#FAR_25_604" title="25.604" aria-label="25.604. Link 322">25.604</a>, then the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall apply evaluation factors to the <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer incorporating the use of such foreign construction material as follows: (1) Use an evaluation factor of 25 percent, applied to the total offered price of the contract, if foreign manufactured construction material is incorporated in the <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer based on an exception for unreasonable cost of comparable <i data-tippy-content="Domestic construction material means the following:(1) An unmanufactured construction material mined or produced in the United States. (The Buy American statute applies.)(2) A manufactured construction material that is manufactured in the United States and, if the construction material consists wholly or predominantly of iron or steel, the iron or steel was produced in the United States. (Section 1605 of the Recovery Act applies.)" class="agov-definition">domestic construction material requested by the offeror. (2) In addition, use an evaluation factor of 20 percent applied to the cost of foreign <i data-tippy-content="Unmanufactured construction material means raw material brought to the construction site for incorporation into the building or work that has not been-(1) Processed into a specific form and shape; or(2) Combined with other raw material to create a material that has different properties than the properties of the individual raw materials." class="agov-definition">unmanufactured construction material incorporated in the <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer based on an exception for unreasonable cost of comparable domestic <i data-tippy-content="Unmanufactured construction material means raw material brought to the construction site for incorporation into the building or work that has not been-(1) Processed into a specific form and shape; or(2) Combined with other raw material to create a material that has different properties than the properties of the individual raw materials." class="agov-definition">unmanufactured construction material requested by the offeror. (3) Total evaluated price = offered price + (.25 x offered price, if (a)(1) applies) + (.20 x cost of foreign <i data-tippy-content="Unmanufactured construction material means raw material brought to the construction site for incorporation into the building or work that has not been-(1) Processed into a specific form and shape; or(2) Combined with other raw material to create a material that has different properties than the properties of the individual raw materials." class="agov-definition">unmanufactured construction material, if (a)(2) applies). (b) If the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation specifies award on the basis of factors in addition to cost or price, apply the evaluation factors as specified in paragraph (a) of this section and use the evaluated price in determining the <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer that represents the <i data-tippy-content="Best value means the expected outcome of an acquisition that, in the Government's estimation, provides the greatest overall benefit in response to the requirement." class="agov-definition">best value to the Government (c) Unless paragraph (b) applies, if two or more <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers are equal in price, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must give preference to an <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer that does not include foreign construction material excepted at the request of the offeror on the basis of unreasonable cost. (d) Offerors also may submit <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">alternate <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers based on use of equivalent <i data-tippy-content="Domestic construction material means the following:(1) An unmanufactured construction material mined or produced in the United States. (The Buy American statute applies.)(2) A manufactured construction material that is manufactured in the United States and, if the construction material consists wholly or predominantly of iron or steel, the iron or steel was produced in the United States. (Section 1605 of the Recovery Act applies.)" class="agov-definition">domestic construction material to avoid possible rejection of the entire <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offer if the Government determines that an exception permitting use of a particular foreign construction material does not apply. (e) If the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer awards a contract to an offeror that proposed foreign construction material not listed in the applicable clause in the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation (paragraph (b)(3) of <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_21" title="52.225-21" aria-label="52.225-21. Link 320">52.225-21</a>, or paragraph (b)(3) of <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_23" title="52.225-23" aria-label="52.225-23. Link 321">52.225-23</a>), the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must add the excepted materials to the list in the <i data-tippy-content='Contract clause or "clause" means a term or condition used in contracts or in both solicitations and contracts, and applying after contract award or both before and after award.' class="agov-definition">contract clause. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title63" id="FAR_25_606" data-part="section" data-part-number="25.606"> <h3 class="title topictitle3" id="ariaid-title63"> 25.606 Postaward determinations.</h3> <div class="body conbody"> (a) If a contractor requests a determination regarding the inapplicability of section 1605 of the Recovery Act or the Buy American statute after contract award, the contractor must explain why it could not request the determination before contract award or why the need for such determination otherwise was not reasonably foreseeable. If the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer concludes that the contractor should have made the request before contract award, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer may deny the request. (b) The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must base evaluation of any request for a determination regarding the inapplicability of section 1605 of the Recovery Act or the Buy American statute made after contract award on information required by paragraphs (c) and (d) of the applicable clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_21" title="52.225-21" aria-label="52.225-21. Link 320">52.225-21</a> or <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_23" title="52.225-23" aria-label="52.225-23. Link 321">52.225-23</a> and/or other readily available information. (c) If a determination, under <a class="xref fm:ParaNumOnly" href="#FAR_25_603" title="25.603" aria-label="25.603. Link 311">25.603</a>(a), is made after contract award that an exception to section 1605 of the Recovery Act or to the Buy American statute applies, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must negotiate adequate consideration and modify the contract to allow use of the foreign construction material. When the basis for the exception is the unreasonable cost of a <i data-tippy-content="Domestic construction material means the following:(1) An unmanufactured construction material mined or produced in the United States. (The Buy American statute applies.)(2) A manufactured construction material that is manufactured in the United States and, if the construction material consists wholly or predominantly of iron or steel, the iron or steel was produced in the United States. (Section 1605 of the Recovery Act applies.)" class="agov-definition">domestic construction material, adequate consideration is at least the differential established in <a class="xref fm:ParaNumOnly" href="#FAR_25_605" title="25.605" aria-label="25.605. Link 315">25.605</a>(a). </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title64" id="FAR_25_607" data-part="section" data-part-number="25.607"> <h3 class="title topictitle3" id="ariaid-title64"> 25.607 Noncompliance.</h3> <div class="body conbody"> The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must- (a) Review allegations of violations of section 1605 of the Recovery Act or Buy American statute; (b) Unless fraud is suspected, notify the contractor of the apparent unauthorized use of foreign construction material and request a reply, to include proposed corrective action; and (c) If the review reveals that a contractor or subcontractor has used foreign construction material without authorization, take appropriate action, including one or more of the following: (1) Process a determination concerning the inapplicability of section 1605 of the Recovery Act or the Buy American statute in accordance with <a class="xref fm:ParaNumOnly" href="#FAR_25_606" title="25.606" aria-label="25.606. Link 329">25.606</a>. (2) Consider requiring the removal and replacement of the unauthorized foreign construction material. (3) If removal and replacement of foreign construction material incorporated in a <i data-tippy-content='Building or work means construction activity as distinguished from manufacturing, furnishing of materials, or servicing and maintenance work. The terms include, without limitation, buildings, structures, and improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, pumping stations, heavy generators, railways, airports, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, dredging, shoring, rehabilitation and reactivation of plants, scaffolding, drilling, blasting, excavating, clearing, and landscaping. The manufacture or furnishing of materials, articles, supplies, or equipment (whether or not a Federal or State agency acquires title to such materials, articles, supplies, or equipment during the course of the manufacture or furnishing, or owns the materials from which they are manufactured or furnished) is not "building" or "work" within the meaning of this definition unless conducted in connection with and at the site of such building or work as is described in the foregoing sentence, or under the United States Housing Act of 1937 and the Housing Act of 1949 in the construction or development of the project.' class="agov-definition">building or work would be impracticable, cause undue delay, or otherwise be detrimental to the interests of the Government, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer may determine <i data-tippy-content='In writing, "writing," or "written" means any worded or numbered expression that can be read, reproduced, and later communicated, and includes electronically transmitted and stored information.' class="agov-definition">in writing that the foreign construction material need not be removed and replaced. A determination to retain foreign construction material does not constitute a determination that an exception to section 1605 of the Recovery Act or the Buy American statute applies, and this should be stated in the determination. Further, a determination to retain foreign construction material does not affect the Government’s right to suspend or debar a contractor, subcontractor, or supplier for violation of section 1605 of the Recovery Act or the Buy American statute, or to exercise other contractual rights and remedies, such as reducing the contract price or terminating the contract for default. (4) If the noncompliance is sufficiently serious, consider exercising appropriate contractual remedies, such as terminating the contract for default. Also consider preparing and forwarding a report to the agency suspending or debarring official in accordance with subpart <a class="xref fm:ParaNumOnly" href="/far/part-9#FAR_Subpart_9_4" title="9.4" aria-label="9.4. Link 330">9.4</a>. If the noncompliance appears to be fraudulent, refer the matter to other appropriate agency officials, such as the agency’s inspector general or the officer responsible for criminal investigation. </div> </article> </article> <article class="topic nested1" aria-labelledby="ariaid-title65" id="FAR_Subpart_25_7" data-part="subpart" data-part-number="25.7"> <h2 class="title topictitle2 Subpart" id="ariaid-title65"> Subpart 25.7 - Prohibited Sources</h2> <article class="topic nested2" aria-labelledby="ariaid-title66" id="FAR_25_700" data-part="section" data-part-number="25.700"> <h3 class="title topictitle3" id="ariaid-title66"> 25.700 Scope of subpart.</h3> <div class="body"> This subpart implements- (a) Economic sanctions administered by the Office of Foreign Assets Control (OFAC) in the Department of the Treasury prohibiting transactions involving certain countries, entities, and individuals; (b) The Sudan Accountability and Divestment Act of 2007 (Pub. L. 110-174) ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title50-section1701&num=0&edition=prelim" target="_blank" title="50 U.S.C. 1701" aria-label="50 U.S.C. 1701. Link 331">50 U.S.C. 1701</a> note); (c) The Iran Sanctions Act of 1996 (Iran Sanctions Act) (Pub. L. 104-172; <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title50-section1701&num=0&edition=prelim" target="_blank" title="50 U.S.C. 1701" aria-label="50 U.S.C. 1701. Link 331">50 U.S.C. 1701</a> note), including amendments by the Iran Freedom Support Act (Pub. L. 109-293), section 102 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Pub. L. 111-195), and Titles II and III of the Iran Threat Reduction and Syria Human Rights Act of 2012 (Pub. L. 112-158); and (d) Prohibition against <i data-tippy-content="Contracting means purchasing, renting, leasing, or otherwise obtaining supplies or services from nonfederal sources. Contracting includes description (but not determination) of supplies and services required, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration. It does not include making grants or cooperative agreements." class="agov-definition">contracting with entities that export sensitive technologies to Iran ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section8515&num=0&edition=prelim" target="_blank" title="22 U.S.C. 8515" aria-label="22 U.S.C. 8515. Link 333">22 U.S.C. 8515</a>). </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title67" id="FAR_25_701" data-part="section" data-part-number="25.701"> <h3 class="title topictitle3" id="ariaid-title67"> 25.701 Restrictions administered by the Department of the Treasury on acquisitions of supplies or services from prohibited sources.</h3> <div class="body conbody"> (a) Except as authorized by OFAC, agencies and their contractors and subcontractors must not acquire any <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies or services if any proclamation, Executive order, or statute administered by OFAC, or if OFAC’s implementing regulations at 31 CFR Chapter V, would prohibit such a transaction by a person subject to the jurisdiction of the United States. (b) Except as authorized by OFAC, most transactions involving Cuba, Iran, and Sudan are prohibited, as are most imports from Burma or North Korea into the United States or its <i data-tippy-content="Outlying areas means-(1) Commonwealths(i) Puerto Rico.(ii) The Northern Mariana Islands;(2)Territories.(i) American Samoa.(ii) Guam.(iii) U.S. Virgin Islands; and(3)Minor outlying islands.(i) Baker Island.(ii) Howland Island.(iii) Jarvis Island.(iv) Johnston Atoll.(v) Kingman Reef.(vi) Midway Islands.(vii) Navassa Island.(viii) Palmyra Atoll.(ix) Wake Atoll." class="agov-definition">outlying areas. In addition, lists of entities and individuals subject to economic sanctions are included in OFAC’s List of Specially Designated Nationals and Blocked Persons at <a class="xref" href="https://ofac.treasury.gov/specially-designated-nationals-and-blocked-persons-list-sdn-human-readable-lists" target="_blank" title="https://ofac.treasury.gov/specially-designated-nationals-and-blocked-persons-list-sdn-human-readable-lists" aria-label="https://ofac.treasury.gov/specially-designated-nationals-and-blocked-persons-list-sdn-human-readable-lists. Link 334">https://ofac.treasury.gov/specially-designated-nationals-and-blocked-persons-list-sdn-human-readable-lists</a>. More information about these restrictions, as well as updates, is available in OFAC’s regulations at 31 CFR Chapter V and/or on OFAC’s website at <a class="xref" href="https://ofac.treasury.gov/" target="_blank" title="https://ofac.treasury.gov/" aria-label="https://ofac.treasury.gov/. Link 335">https://ofac.treasury.gov/</a>. (c) Refer questions concerning the restrictions in paragraphs (a) or (b) of this section to the- Department of the Treasury Office of Foreign Assets Control Washington, DC 20220 (Telephone (202) 622-2490). </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title68" id="FAR_25_702" data-part="section" data-part-number="25.702"> <h3 class="title topictitle3" id="ariaid-title68"> 25.702 Prohibition on contracting with entities that conduct restricted business operations in Sudan.</h3> <article class="topic concept nested3" aria-labelledby="ariaid-title69" id="FAR_25_702_1" data-part="subsection" data-part-number="25.702-1"> <h4 class="title topictitle4" id="ariaid-title69"> 25.702-1 Definitions.</h4> <div class="body conbody"> As used in this section- <i data-tippy-content="Appropriate Congressional committees means-(1) The Committee on Banking, Housing, and Urban Affairs, The Committee on Foreign Relations, and the Select Committee on Intelligence of the Senate; and(2) The Committee on Financial Services, the Committee on Foreign Relations, and the Permanent Select Committee on Intelligence of the House of Representatives." class="agov-definition">Appropriate Congressional committees means- (1) The Committee on Banking, Housing, and Urban Affairs, The Committee on Foreign Relations, and the Select Committee on Intelligence of the Senate; and (2) The Committee on Financial Services, the Committee on Foreign Relations, and the Permanent Select Committee on Intelligence of the House of Representatives. <i data-tippy-content="Business operations means engaging in commerce in any form, including by acquiring, developing, maintaining, owning, selling, possessing, leasing, or operating equipment, facilities, personnel, products, services, personal property, real property, or any other apparatus of business or commerce." class="agov-definition">Business operations means engaging in commerce in any form, including by acquiring, developing, maintaining, owning, selling, possessing, leasing, or operating equipment, facilities, personnel, products, services, <i data-tippy-content="Personal property means property of any kind or interest in it except real property, records of the Federal Government, and naval vessels of the following categories:(1) Battleships;(2) Cruisers;(3) Aircraft carriers;(4) Destroyers; and(5) Submarines." class="agov-definition">personal property, real property, or any other apparatus of business or commerce. <i data-tippy-content="Marginalized populations of Sudan means-(1) Adversely affected groups in regions authorized to receive assistance under section 8(c) of the Darfur Peace and Accountability Act (Pub. L. 109-344) (50 U.S.C. 1701 note); and(2) Marginalized areas in Northern Sudan described in section 4(9) of such Act." class="agov-definition">Marginalized populations of Sudan means- (1) Adversely affected groups in regions authorized to receive assistance under section 8(c) of the Darfur Peace and Accountability Act (Pub. L. 109-344) ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title50-section1701&num=0&edition=prelim" target="_blank" title="50 U.S.C. 1701" aria-label="50 U.S.C. 1701. Link 331">50 U.S.C. 1701</a> note); and (2) Marginalized areas in Northern Sudan described in section 4(9) of such Act. <i data-tippy-content="Restricted business operations-(1) Means, except as provided in paragraph (2) of this definition, business operations in Sudan that include power production activities, mineral extraction activities, oil-related activities, or the production of military equipment, as those terms are defined in the Sudan Accountability and Divestment Act of 2007 (Pub. L. 110-174).(2) Does not include business operations that the person (as that term is defined in Section 2 of the Sudan Accountability and Divestment Act of 2007) conducting the business can demonstrate-(i) Are conducted under contract directly and exclusively with the regional government of southern Sudan;(ii) Are conducted pursuant to specific authorization from the Office of Foreign Assets Control in the Department of the Treasury, or are expressly exempted under Federal law from the requirement to be conducted under such authorization;(iii) Consist of providing goods or services to marginalized populations of Sudan;(iv) Consist of providing goods or services to an internationally recognized peacekeeping force or humanitarian organization;(v) Consist of providing goods or services that are used only to promote health or education; or(vi) Have been voluntarily suspended." class="agov-definition">Restricted business operations- (1) Means, except as provided in paragraph (2) of this definition, <i data-tippy-content="Business operations means engaging in commerce in any form, including by acquiring, developing, maintaining, owning, selling, possessing, leasing, or operating equipment, facilities, personnel, products, services, personal property, real property, or any other apparatus of business or commerce." class="agov-definition">business operations in Sudan that include power production activities, mineral extraction activities, oil-related activities, or the production of military equipment, as those terms are defined in the Sudan Accountability and Divestment Act of 2007 (Pub. L. 110-174). (2) Does not include <i data-tippy-content="Business operations means engaging in commerce in any form, including by acquiring, developing, maintaining, owning, selling, possessing, leasing, or operating equipment, facilities, personnel, products, services, personal property, real property, or any other apparatus of business or commerce." class="agov-definition">business operations that the person (as that term is defined in Section 2 of the Sudan Accountability and Divestment Act of 2007) conducting the business can demonstrate- (i) Are conducted under contract directly and exclusively with the regional government of southern Sudan; (ii) Are conducted pursuant to specific authorization from the Office of Foreign Assets Control in the Department of the Treasury, or are expressly exempted under Federal law from the requirement to be conducted under such authorization; (iii) Consist of providing goods or services to <i data-tippy-content="Marginalized populations of Sudan means-(1) Adversely affected groups in regions authorized to receive assistance under section 8(c) of the Darfur Peace and Accountability Act (Pub. L. 109-344) (50 U.S.C. 1701 note); and(2) Marginalized areas in Northern Sudan described in section 4(9) of such Act." class="agov-definition">marginalized populations of Sudan; (iv) Consist of providing goods or services to an internationally recognized peacekeeping force or humanitarian organization; (v) Consist of providing goods or services that are used only to promote health or education; or (vi) Have been voluntarily suspended. </div> </article> <article class="topic concept nested3" aria-labelledby="ariaid-title70" id="FAR_25_702_2" data-part="subsection" data-part-number="25.702-2"> <h4 class="title topictitle4" id="ariaid-title70"> 25.702-2 Certification.</h4> <div class="body conbody"> As required by the Sudan Accountability and Divestment Act of 2007 (Pub. L. 110-174), each offeror must certify that it does not conduct <i data-tippy-content="Restricted business operations-(1) Means, except as provided in paragraph (2) of this definition, business operations in Sudan that include power production activities, mineral extraction activities, oil-related activities, or the production of military equipment, as those terms are defined in the Sudan Accountability and Divestment Act of 2007 (Pub. L. 110-174).(2) Does not include business operations that the person (as that term is defined in Section 2 of the Sudan Accountability and Divestment Act of 2007) conducting the business can demonstrate-(i) Are conducted under contract directly and exclusively with the regional government of southern Sudan;(ii) Are conducted pursuant to specific authorization from the Office of Foreign Assets Control in the Department of the Treasury, or are expressly exempted under Federal law from the requirement to be conducted under such authorization;(iii) Consist of providing goods or services to marginalized populations of Sudan;(iv) Consist of providing goods or services to an internationally recognized peacekeeping force or humanitarian organization;(v) Consist of providing goods or services that are used only to promote health or education; or(vi) Have been voluntarily suspended." class="agov-definition">restricted business operations in Sudan. </div> </article> <article class="topic concept nested3" aria-labelledby="ariaid-title71" id="FAR_25_702_3" data-part="subsection" data-part-number="25.702-3"> <h4 class="title topictitle4" id="ariaid-title71"> 25.702-3 Remedies.</h4> <div class="body conbody"> Upon the determination of a false certification under subsection <a class="xref fm:ParaNumOnly" href="#FAR_25_702_2" title="25.702-2" aria-label="25.702-2. Link 337">25.702-2</a>- (a) The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer may terminate the contract; (b) The suspending official may suspend the contractor in accordance with the procedures in <a class="xref fm:Subpart" href="/far/part-9#FAR_Subpart_9_4" title="subpart  9.4" aria-label="subpart聽 9.4. Link 200">subpart  9.4</a>; and (c) The debarring official may debar the contractor for a period not to exceed 3 years in accordance with the procedures in <a class="xref fm:Subpart" href="/far/part-9#FAR_Subpart_9_4" title="subpart  9.4" aria-label="subpart聽 9.4. Link 200">subpart  9.4</a>. </div> </article> <article class="topic concept nested3" aria-labelledby="ariaid-title72" id="FAR_25_702_4" data-part="subsection" data-part-number="25.702-4"> <h4 class="title topictitle4" id="ariaid-title72"> 25.702-4 Waiver.</h4> <div class="body conbody"> (a) The President may waive the requirement of subsection <a class="xref fm:ParaNumOnly" href="#FAR_25_702_2" title="25.702-2" aria-label="25.702-2. Link 337">25.702-2</a> on a case-by-case basis if the President determines and certifies <i data-tippy-content='In writing, "writing," or "written" means any worded or numbered expression that can be read, reproduced, and later communicated, and includes electronically transmitted and stored information.' class="agov-definition">in writing to the <i data-tippy-content="Appropriate Congressional committees means-(1) The Committee on Banking, Housing, and Urban Affairs, The Committee on Foreign Relations, and the Select Committee on Intelligence of the Senate; and(2) The Committee on Financial Services, the Committee on Foreign Relations, and the Permanent Select Committee on Intelligence of the House of Representatives." class="agov-definition">appropriate congressional committees that it is in the national interest to do so. (b) An agency seeking waiver of the requirement shall submit the request to the Administrator of the Office of Federal Procurement Policy (OFPP), allowing sufficient time for review and approval. Upon receipt of the waiver request, OFPP shall consult with the President’s National Security Council, Office of African Affairs, and the Department of State Sudan Office and Sanctions Office to assess foreign policy aspects of making a national interest recommendation. (c) Agencies may request a waiver on an individual or class basis; however, waivers are not indefinite and can be cancelled if warranted. (1) A class waiver may be requested only when the class of <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies is not available from any other source and it is in the national interest. (2) Prior to submitting the waiver request, the request must be reviewed and cleared by the <i data-tippy-content='Agency head or "head of the agency" means the Secretary, Attorney General, Administrator, Governor, Chairperson, or other chief official of an executive agency, unless otherwise indicated, including any deputy or assistant chief official of an executive agency.' class="agov-definition">agency head. (3) All waiver requests must include the following information: (i) Agency name, complete mailing address, and point of contact name, telephone number, and email address; (ii) Offeror’s name, complete mailing address, and point of contact name, telephone number, and email address; (iii) Description/nature of product or service; (iv) The total cost and length of the contract; (v) Justification, with market research demonstrating that no other offeror can provide the product or service and stating why the product or service must be procured from this offeror, as well as why it is in the national interest for the President to waive the prohibition on <i data-tippy-content="Contracting means purchasing, renting, leasing, or otherwise obtaining supplies or services from nonfederal sources. Contracting includes description (but not determination) of supplies and services required, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration. It does not include making grants or cooperative agreements." class="agov-definition">contracting with this offeror that conducts <i data-tippy-content="Restricted business operations-(1) Means, except as provided in paragraph (2) of this definition, business operations in Sudan that include power production activities, mineral extraction activities, oil-related activities, or the production of military equipment, as those terms are defined in the Sudan Accountability and Divestment Act of 2007 (Pub. L. 110-174).(2) Does not include business operations that the person (as that term is defined in Section 2 of the Sudan Accountability and Divestment Act of 2007) conducting the business can demonstrate-(i) Are conducted under contract directly and exclusively with the regional government of southern Sudan;(ii) Are conducted pursuant to specific authorization from the Office of Foreign Assets Control in the Department of the Treasury, or are expressly exempted under Federal law from the requirement to be conducted under such authorization;(iii) Consist of providing goods or services to marginalized populations of Sudan;(iv) Consist of providing goods or services to an internationally recognized peacekeeping force or humanitarian organization;(v) Consist of providing goods or services that are used only to promote health or education; or(vi) Have been voluntarily suspended." class="agov-definition">restricted business operations in Sudan, including consideration of foreign policy aspects identified in consultation(s) pursuant to <a class="xref fm:ParaNumOnly" href="#FAR_25_702_4" title="25.702-4" aria-label="25.702-4. Link 341">25.702-4</a>(b); (vi) Documentation regarding the offeror’s past performance and integrity (see the Contractor Performance Assessment Reporting System (CPARS) including the Federal Awardee Performance Information and Integrity System at <a class="xref" href="https://www.cpars.gov" target="_blank" title="https://www.cpars.gov" aria-label="https://www.cpars.gov. Link 342">https://www.cpars.gov</a> and any other relevant information); (vii) Information regarding the offeror’s relationship or connection with other firms that conduct prohibited <i data-tippy-content="Business operations means engaging in commerce in any form, including by acquiring, developing, maintaining, owning, selling, possessing, leasing, or operating equipment, facilities, personnel, products, services, personal property, real property, or any other apparatus of business or commerce." class="agov-definition">business operations in Sudan; and (viii) Any humanitarian efforts engaged in by the offeror, the human rights impact of doing business with the offeror for which the waiver is requested, and the extent of the offeror’s <i data-tippy-content="Business operations means engaging in commerce in any form, including by acquiring, developing, maintaining, owning, selling, possessing, leasing, or operating equipment, facilities, personnel, products, services, personal property, real property, or any other apparatus of business or commerce." class="agov-definition">business operations in Sudan. (d) The consultation in <a class="xref fm:ParaNumOnly" href="#FAR_25_702_4" title="25.702-4" aria-label="25.702-4. Link 341">25.702-4</a>(b) and the information in <a class="xref fm:ParaNumOnly" href="#FAR_25_702_4" title="25.702-4" aria-label="25.702-4. Link 341">25.702-4</a>(c)(3) will be considered in determining whether to recommend that the President waive the requirement of subsection <a class="xref fm:ParaNumOnly" href="#FAR_25_702_2" title="25.702-2" aria-label="25.702-2. Link 337">25.702-2</a>. In accordance with section 6(c) of the Sudan Accountability and Divestment Act of 2007, OFPP will semiannually submit a report to Congress, on April 15 th and October 15 th, on the waivers granted. </div> </article> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title73" id="FAR_25_703" data-part="section" data-part-number="25.703"> <h3 class="title topictitle3" id="ariaid-title73"> 25.703 Prohibition on contracting with entities that engage in certain activities or transactions relating to Iran.</h3> <article class="topic concept nested3" aria-labelledby="ariaid-title74" id="FAR_25_703_1" data-part="subsection" data-part-number="25.703-1"> <h4 class="title topictitle4" id="ariaid-title74"> 25.703-1 Definitions.</h4> <div class="body conbody"> As used in this section- <i data-tippy-content="Person-(1) Means-(i) A natural person;(ii) A corporation, business association, partnership, society, trust, financial institution, insurer, underwriter, guarantor, and any other business organization, any other nongovernmental entity, organization, or group, and any governmental entity operating as a business enterprise; and(iii) Any successor to any entity described in paragraph (1)(ii) of this definition; and(2) Does not include a government or governmental entity that is not operating as a business enterprise.Sensitive technology-(1) Means hardware, software, telecommunications equipment, or any other technology that is to be used specifically-(i) To restrict the free flow of unbiased information in Iran; or(ii) To disrupt, monitor, or otherwise restrict speech of the people of Iran; and(2) Does not include information or informational materials the export of which the President does not have the authority to regulate or prohibit pursuant to section 203(b)(3) of the International Emergency Economic Powers Act ( 50 U.S.C. 1702(b)(3))." class="agov-definition">Person- (1) Means- (i) A natural <i data-tippy-content="Person-(1) Means-(i) A natural person;(ii) A corporation, business association, partnership, society, trust, financial institution, insurer, underwriter, guarantor, and any other business organization, any other nongovernmental entity, organization, or group, and any governmental entity operating as a business enterprise; and(iii) Any successor to any entity described in paragraph (1)(ii) of this definition; and(2) Does not include a government or governmental entity that is not operating as a business enterprise.Sensitive technology-(1) Means hardware, software, telecommunications equipment, or any other technology that is to be used specifically-(i) To restrict the free flow of unbiased information in Iran; or(ii) To disrupt, monitor, or otherwise restrict speech of the people of Iran; and(2) Does not include information or informational materials the export of which the President does not have the authority to regulate or prohibit pursuant to section 203(b)(3) of the International Emergency Economic Powers Act ( 50 U.S.C. 1702(b)(3))." class="agov-definition">person; (ii) A corporation, business association, partnership, society, trust, financial institution, insurer, underwriter, guarantor, and any other business organization, any other nongovernmental entity, organization, or group, and any governmental entity operating as a business enterprise; and (iii) Any successor to any entity described in paragraph (1)(ii) of this definition; and (2) Does not include a government or governmental entity that is not operating as a business enterprise. <i data-tippy-content="Sensitive technology-(1) Means hardware, software, telecommunications equipment, or any other technology that is to be used specifically-(i) To restrict the free flow of unbiased information in Iran; or(ii) To disrupt, monitor, or otherwise restrict speech of the people of Iran; and(2) Does not include information or informational materials the export of which the President does not have the authority to regulate or prohibit pursuant to section 203(b)(3) of the International Emergency Economic Powers Act ( 50 U.S.C. 1702(b)(3))." class="agov-definition">Sensitive technology- (1) Means hardware, software, telecommunications equipment, or any other technology that is to be used specifically- (i) To restrict the free flow of unbiased information in Iran; or (ii) To disrupt, monitor, or otherwise restrict speech of the people of Iran; and (2) Does not include information or informational materials the export of which the President does not have the authority to regulate or prohibit pursuant to section 203(b)(3) of the International <i data-tippy-content="Emergency, as used in 6.208, 13.201, 13.500, 18.001, 18.202, 18.203, and subpart 26.2, means any occasion or instance for which, in the determination of the President, Federal assistance is needed to supplement State and local efforts and capabilities to save lives and to protect property and public health and safety, or to lessen or avert the threat of a catastrophe in any part of the United States (42 U.S.C. 5122)." class="agov-definition">Emergency Economic Powers Act ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title50-section1702(b)(3)&num=0&edition=prelim" target="_blank" title="50 U.S.C. 1702(b)(3)" aria-label="50 U.S.C. 1702(b)(3). Link 346">50 U.S.C. 1702(b)(3)</a>). </div> </article> <article class="topic concept nested3" aria-labelledby="ariaid-title75" id="FAR_25_703_2" data-part="subsection" data-part-number="25.703-2"> <h4 class="title topictitle4" id="ariaid-title75"> 25.703-2 Iran Sanctions Act.</h4> <div class="body conbody"> (a) Certification. (1) Certification relating to activities described in section 5 of the Iran Sanctions Act. As required by section 6(b)(1)(A) of the Iran Sanctions Act ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=(title:50%20section:1701%20edition:prelim)%20OR%20(granuleid:USC-prelim-title50-section1701)&f=treesort&edition=prelim&num=0&jumpTo=true" target="_blank" title="50 U.S.C. 1701" aria-label="50 U.S.C. 1701. Link 347">50 U.S.C. 1701</a> note), unless an exception applies in accordance with paragraph (c) of this subsection, or a waiver is granted in accordance with <a class="xref fm:ParaNumOnly" href="#FAR_25_703_4" title="25.703-4" aria-label="25.703-4. Link 348">25.703-4</a>, each offeror must certify that the offeror, and any <i data-tippy-content="Person-(1) Means-(i) A natural person;(ii) A corporation, business association, partnership, society, trust, financial institution, insurer, underwriter, guarantor, and any other business organization, any other nongovernmental entity, organization, or group, and any governmental entity operating as a business enterprise; and(iii) Any successor to any entity described in paragraph (1)(ii) of this definition; and(2) Does not include a government or governmental entity that is not operating as a business enterprise.Sensitive technology-(1) Means hardware, software, telecommunications equipment, or any other technology that is to be used specifically-(i) To restrict the free flow of unbiased information in Iran; or(ii) To disrupt, monitor, or otherwise restrict speech of the people of Iran; and(2) Does not include information or informational materials the export of which the President does not have the authority to regulate or prohibit pursuant to section 203(b)(3) of the International Emergency Economic Powers Act ( 50 U.S.C. 1702(b)(3))." class="agov-definition">person owned or controlled by the offeror, does not engage in any activity for which sanctions may be imposed under section 5 of the Iran Sanctions Act. Such activities, which are described in detail in section 5 of the Iran Sanctions Act, relate to the energy sector of Iran and development by Iran of weapons of mass destruction or other military capabilities. (2) Certification relating to transactions with Iran's Revolutionary Guard Corps. As required by section 6(b)(1)(B) of the Iran Sanctions Act ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=(title:50%20section:1701%20edition:prelim)%20OR%20(granuleid:USC-prelim-title50-section1701)&f=treesort&edition=prelim&num=0&jumpTo=true" target="_blank" title="50 U.S.C. 1701" aria-label="50 U.S.C. 1701. Link 347">50 U.S.C. 1701</a> note), unless an exception applies in accordance with paragraph (c) of this subsection, or a waiver is granted in accordance with <a class="xref fm:ParaNumOnly" href="#FAR_25_703_4" title="25.703-4" aria-label="25.703-4. Link 348">25.703-4</a>, each offeror must certify that the offeror, and any <i data-tippy-content="Person-(1) Means-(i) A natural person;(ii) A corporation, business association, partnership, society, trust, financial institution, insurer, underwriter, guarantor, and any other business organization, any other nongovernmental entity, organization, or group, and any governmental entity operating as a business enterprise; and(iii) Any successor to any entity described in paragraph (1)(ii) of this definition; and(2) Does not include a government or governmental entity that is not operating as a business enterprise.Sensitive technology-(1) Means hardware, software, telecommunications equipment, or any other technology that is to be used specifically-(i) To restrict the free flow of unbiased information in Iran; or(ii) To disrupt, monitor, or otherwise restrict speech of the people of Iran; and(2) Does not include information or informational materials the export of which the President does not have the authority to regulate or prohibit pursuant to section 203(b)(3) of the International Emergency Economic Powers Act ( 50 U.S.C. 1702(b)(3))." class="agov-definition">person owned or controlled by the offeror, does not knowingly engage in any significant transaction (i.e., a transaction that exceeds $10,000, with Iran's Revolutionary Guard Corps or any of its officials, agents, or <i data-tippy-content='Affiliates means associated business concerns or individuals if, directly or indirectly either one controls or can control the other; or third party controls or can control both, except as follows:(1) For use in subpart 9.4, see the definition at 9.403.(2) For use of affiliates in size determinations, see the definition of "small business concern" in this section.' class="agov-definition">affiliates, the property and interests in property of which are blocked pursuant to the International <i data-tippy-content="Emergency, as used in 6.208, 13.201, 13.500, 18.001, 18.202, 18.203, and subpart 26.2, means any occasion or instance for which, in the determination of the President, Federal assistance is needed to supplement State and local efforts and capabilities to save lives and to protect property and public health and safety, or to lessen or avert the threat of a catastrophe in any part of the United States (42 U.S.C. 5122)." class="agov-definition">Emergency Economic Powers Act ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=(title:50%20section:1701%20edition:prelim)%20OR%20(granuleid:USC-prelim-title50-section1701)&f=treesort&edition=prelim&num=0&jumpTo=true" target="_blank" title="50 U.S.C. 1701" aria-label="50 U.S.C. 1701. Link 347">50 U.S.C. 1701</a> et seq.)(see OFAC’s Specially Designated Nationals and Blocked <i data-tippy-content="Person-(1) Means-(i) A natural person;(ii) A corporation, business association, partnership, society, trust, financial institution, insurer, underwriter, guarantor, and any other business organization, any other nongovernmental entity, organization, or group, and any governmental entity operating as a business enterprise; and(iii) Any successor to any entity described in paragraph (1)(ii) of this definition; and(2) Does not include a government or governmental entity that is not operating as a business enterprise.Sensitive technology-(1) Means hardware, software, telecommunications equipment, or any other technology that is to be used specifically-(i) To restrict the free flow of unbiased information in Iran; or(ii) To disrupt, monitor, or otherwise restrict speech of the people of Iran; and(2) Does not include information or informational materials the export of which the President does not have the authority to regulate or prohibit pursuant to section 203(b)(3) of the International Emergency Economic Powers Act ( 50 U.S.C. 1702(b)(3))." class="agov-definition">Persons List at <a class="xref" href="https://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx" target="_blank" title="https://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx" aria-label="https://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx. Link 352">https://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx</a>). (b) Remedies. Upon the determination of a false certification under paragraph (a) of this section, the agency shall take one or more of the following actions: (1) The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer terminates the contract in accordance with procedures in part <a class="xref fm:ParaNumOnly" href="/far/part-49#FAR_Part_49" title="49" aria-label="49. Link 353">49</a>, or for <i data-tippy-content="Commercial product means— (1) A product, other than real property, that is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes, and–(i) Has been sold, leased, or licensed to the general public; or(ii) Has been offered for sale, lease, or license to the general public;(2) A product that evolved from a product described in paragraph (1) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace, but will be available in the commercial marketplace in time to satisfy the delivery requirements under a Government solicitation;(3) A product that would satisfy a criterion expressed in paragraph (1) or (2) of this definition, except for-(i) Modifications of a type customarily available in the commercial marketplace; or(ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet Federal Government requirements. “Minor modifications” means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component, or change the purpose of a process. Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product. Dollar values and percentages may be used as guideposts, but are not conclusive evidence that a modification is minor;(4) Any combination of products meeting the requirements of paragraph (1), (2), or (3) of this definition that are of a type customarily combined and sold in combination to the general public;(5) A product, or combination of products, referred to in paragraphs (1) through (4) of this definition, even though the product, or combination of products, is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor; or(6) A nondevelopmental item, if the procuring agency determines the product was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple State and local governments or to multiple foreign governments." class="agov-definition">commercial products and <i data-tippy-content="Commercial service means— (1) Installation services, maintenance services, repair services, training services, and other services if–(i) Such services are procured for support of a commercial product as defined in this section, regardless of whether such services are provided by the same source or at the same time as the commercial product; and(ii) The source of such services provides similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government;(2) Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions. For purposes of these services–(i)Catalog price means a price included in a catalog, price list, schedule, or other form that is regularly maintained by the manufacturer or vendor, is either published or otherwise available for inspection by customers, and states prices at which sales are currently, or were last, made to a significant number of buyers constituting the general public; and(ii)Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from sources independent of the offerors; or(3) A service referred to in paragraph (1) or (2) of this definition, even though the service is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor." class="agov-definition">commercial services, see <a class="xref fm:ParaNumOnly" href="/far/part-12#FAR_12_403" title="12.403" aria-label="12.403. Link 354">12.403</a>. (2) The suspending official suspends the contractor in accordance with the procedures in subpart <a class="xref fm:ParaNumOnly" href="/far/part-9#FAR_Subpart_9_4" title="9.4" aria-label="9.4. Link 330">9.4</a>. (3) The debarring official debars the contractor for a period of at least two years in accordance with the procedures in subpart <a class="xref fm:ParaNumOnly" href="/far/part-9#FAR_Subpart_9_4" title="9.4" aria-label="9.4. Link 330">9.4</a>. (c) Exception for trade agreements. The certification requirements of paragraph (a) of this subsection do not apply if the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is subject to trade agreements and the offeror certifies that all the offered products are <i data-tippy-content="Designated country end product means a WTO GPA country end product, an FTA country end product, a least developed country end product, or a Caribbean Basin country end product." class="agov-definition">designated country end products or <i data-tippy-content='Designated country means any of the following countries:(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Australia, Austria,, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as "the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)"), Ukraine, or United Kingdom);(2) A Free Trade Agreement (FTA) country (Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore);(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago).' class="agov-definition">designated country <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material (see subpart <a class="xref fm:ParaNumOnly" href="#FAR_Subpart_25_4" title="25.4" aria-label="25.4. Link 108">25.4</a>). </div> </article> <article class="topic concept nested3" aria-labelledby="ariaid-title76" id="FAR_25_703_3" data-part="subsection" data-part-number="25.703-3"> <h4 class="title topictitle4" id="ariaid-title76"> 25.703-3 Prohibition on contracting with entities that export sensitive technology to Iran.</h4> <div class="body conbody"> (a) The head of an <i data-tippy-content="Executive agency means an executive department, a military department, or any independent establishment within the meaning of 5 U.S.C.101, 102, and 104(1), respectively, and any wholly owned Government corporation within the meaning of 31 U.S.C. 9101." class="agov-definition">executive agency may not enter into or extend a contract for the procurement of goods or services with a <i data-tippy-content="Person-(1) Means-(i) A natural person;(ii) A corporation, business association, partnership, society, trust, financial institution, insurer, underwriter, guarantor, and any other business organization, any other nongovernmental entity, organization, or group, and any governmental entity operating as a business enterprise; and(iii) Any successor to any entity described in paragraph (1)(ii) of this definition; and(2) Does not include a government or governmental entity that is not operating as a business enterprise.Sensitive technology-(1) Means hardware, software, telecommunications equipment, or any other technology that is to be used specifically-(i) To restrict the free flow of unbiased information in Iran; or(ii) To disrupt, monitor, or otherwise restrict speech of the people of Iran; and(2) Does not include information or informational materials the export of which the President does not have the authority to regulate or prohibit pursuant to section 203(b)(3) of the International Emergency Economic Powers Act ( 50 U.S.C. 1702(b)(3))." class="agov-definition">person that exports certain <i data-tippy-content="Sensitive technology-(1) Means hardware, software, telecommunications equipment, or any other technology that is to be used specifically-(i) To restrict the free flow of unbiased information in Iran; or(ii) To disrupt, monitor, or otherwise restrict speech of the people of Iran; and(2) Does not include information or informational materials the export of which the President does not have the authority to regulate or prohibit pursuant to section 203(b)(3) of the International Emergency Economic Powers Act ( 50 U.S.C. 1702(b)(3))." class="agov-definition">sensitive technology to Iran, as determined by the President, and has an active exclusion in the <i data-tippy-content="System for Award Management (SAM) means the primary Government repository for prospective Federal awardee and Federal awardee information and the centralized Government system for certain contracting, grants, and other assistance-related processes. It includes—(1) Data collected from prospective Federal awardees required for the conduct of business with the Government;(2) Prospective contractor-submitted annual representations and certifications in accordance with FAR subpart 4.12; and(3) Identification of those parties excluded from receiving Federal contracts, certain subcontracts, and certain types of Federal financial and non-financial assistance and benefits." class="agov-definition">System for Award Management at <a class="xref" href="http://www.sam.gov" target="_blank" title="http://www.sam.gov" aria-label="http://www.sam.gov. Link 358">http://www.sam.gov</a> ( <a class="xref" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section8515&num=0&edition=prelim" target="_blank" title="22 U.S.C. 8515" aria-label="22 U.S.C. 8515. Link 333">22 U.S.C. 8515</a>). (b) Each offeror must represent that it does not export any <i data-tippy-content="Sensitive technology-(1) Means hardware, software, telecommunications equipment, or any other technology that is to be used specifically-(i) To restrict the free flow of unbiased information in Iran; or(ii) To disrupt, monitor, or otherwise restrict speech of the people of Iran; and(2) Does not include information or informational materials the export of which the President does not have the authority to regulate or prohibit pursuant to section 203(b)(3) of the International Emergency Economic Powers Act ( 50 U.S.C. 1702(b)(3))." class="agov-definition">sensitive technology to the government of Iran or any entities or individuals owned or controlled by, or acting on behalf or at the direction of, the government of Iran. (c) Exception for trade agreements. The representation requirement of paragraph (b) of this subsection does not apply if the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is subject to trade agreements and the offeror certifies that all the offered products are <i data-tippy-content="Designated country end product means a WTO GPA country end product, an FTA country end product, a least developed country end product, or a Caribbean Basin country end product." class="agov-definition">designated country end products or <i data-tippy-content='Designated country means any of the following countries:(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Australia, Austria,, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as "the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)"), Ukraine, or United Kingdom);(2) A Free Trade Agreement (FTA) country (Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore);(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago).' class="agov-definition">designated country <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material (see subpart <a class="xref fm:ParaNumOnly" href="#FAR_Subpart_25_4" title="25.4" aria-label="25.4. Link 108">25.4</a>). </div> </article> <article class="topic concept nested3" aria-labelledby="ariaid-title77" id="FAR_25_703_4" data-part="subsection" data-part-number="25.703-4"> <h4 class="title topictitle4" id="ariaid-title77"> 25.703-4 Waiver.</h4> <div class="body conbody"> (a) An agency or contractor seeking a waiver of the requirements of <a class="xref fm:ParaNumOnly" href="#FAR_25_703_2" title="25.703-2" aria-label="25.703-2. Link 361">25.703-2</a> or <a class="xref fm:ParaNumOnly" href="#FAR_25_703_3" title="25.703-3" aria-label="25.703-3. Link 362">25.703-3</a>, consistent with section 6(b)(5) of the Iran Sanctions Act or <a class="xref" href="https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section8551&num=0&edition=prelim" target="_blank" title="22 U.S.C. 8551" aria-label="22聽U.S.C.聽8551. Link 363">22 U.S.C. 8551</a>(b), respectively, and the Presidential Memorandum of September 23, 2010 (75 FR 67025), shall submit the request to the Office of Federal Procurement Policy, allowing sufficient time for review and approval. (b) Agencies may request a waiver on an individual or class basis; however, waivers are not indefinite and can be cancelled, if warranted. (1) A class waiver may be requested only when the class of <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies or equipment is not available from any other source and it is in the national interest. (2) Prior to submitting the waiver request, the request must be reviewed and cleared by the <i data-tippy-content='Agency head or "head of the agency" means the Secretary, Attorney General, Administrator, Governor, Chairperson, or other chief official of an executive agency, unless otherwise indicated, including any deputy or assistant chief official of an executive agency.' class="agov-definition">agency head. (c) In general, all waiver requests should include the following information: (1) Agency name, complete mailing address, and point of contact name, telephone number, and e-mail address. (2) Offeror’s name, complete mailing address, and point of contact name, telephone number, and e-mail address. (3) Description/nature of product or service. (4) The total cost and length of the contract. (5) Justification, with market research demonstrating that no other offeror can provide the product or service and stating why the product or service must be procured from this offeror. (i) If the offeror exports <i data-tippy-content="Sensitive technology-(1) Means hardware, software, telecommunications equipment, or any other technology that is to be used specifically-(i) To restrict the free flow of unbiased information in Iran; or(ii) To disrupt, monitor, or otherwise restrict speech of the people of Iran; and(2) Does not include information or informational materials the export of which the President does not have the authority to regulate or prohibit pursuant to section 203(b)(3) of the International Emergency Economic Powers Act ( 50 U.S.C. 1702(b)(3))." class="agov-definition">sensitive technology to the government of Iran or any entities or individuals owned or controlled by, or acting on behalf or at the direction of, the government of Iran, provide rationale why it is in the national interest for the President to waive the prohibition on <i data-tippy-content="Contracting means purchasing, renting, leasing, or otherwise obtaining supplies or services from nonfederal sources. Contracting includes description (but not determination) of supplies and services required, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration. It does not include making grants or cooperative agreements." class="agov-definition">contracting with this offeror, as required by <a class="xref" href="https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section8551&num=0&edition=prelim" target="_blank" title="22 U.S.C. 8551" aria-label="22聽U.S.C.聽8551. Link 363">22 U.S.C. 8551</a>(b). (ii) If the offeror conducts activities for which sanctions may be imposed under section 5 of the Iran Sanctions Act or engages in any transaction that exceeds the threshold at <a class="xref fm:ParaNumOnly" href="#FAR_25_703_2" title="25.703-2" aria-label="25.703-2. Link 361">25.703-2</a>(a)(2) with Iran’s Revolutionary Guard Corps or any of its officials, agents, or <i data-tippy-content='Affiliates means associated business concerns or individuals if, directly or indirectly either one controls or can control the other; or third party controls or can control both, except as follows:(1) For use in subpart 9.4, see the definition at 9.403.(2) For use of affiliates in size determinations, see the definition of "small business concern" in this section.' class="agov-definition">affiliates, the property and interests in property of which are blocked pursuant to the International <i data-tippy-content="Emergency, as used in 6.208, 13.201, 13.500, 18.001, 18.202, 18.203, and subpart 26.2, means any occasion or instance for which, in the determination of the President, Federal assistance is needed to supplement State and local efforts and capabilities to save lives and to protect property and public health and safety, or to lessen or avert the threat of a catastrophe in any part of the United States (42 U.S.C. 5122)." class="agov-definition">Emergency Economic Powers Act, provide rationale why it is essential to the national security interests of the United States for the President to waive the prohibition on <i data-tippy-content="Contracting means purchasing, renting, leasing, or otherwise obtaining supplies or services from nonfederal sources. Contracting includes description (but not determination) of supplies and services required, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration. It does not include making grants or cooperative agreements." class="agov-definition">contracting with this offeror, as required by section 6(b)(5) of the Iran Sanctions Act. (6) Documentation regarding the offeror’s past performance and integrity (see the Contractor Performance Assessment Reporting System (CPARS) and the Federal Awardee Performance Information and Integrity System at <a class="xref" href="https://www.cpars.gov" target="_blank" title="https://www.cpars.gov" aria-label="https://www.cpars.gov. Link 342">https://www.cpars.gov</a>, and any other relevant information). (7) Information regarding the offeror’s relationship or connection with other firms that- (i) Export <i data-tippy-content="Sensitive technology-(1) Means hardware, software, telecommunications equipment, or any other technology that is to be used specifically-(i) To restrict the free flow of unbiased information in Iran; or(ii) To disrupt, monitor, or otherwise restrict speech of the people of Iran; and(2) Does not include information or informational materials the export of which the President does not have the authority to regulate or prohibit pursuant to section 203(b)(3) of the International Emergency Economic Powers Act ( 50 U.S.C. 1702(b)(3))." class="agov-definition">sensitive technology to the government of Iran or any entities or individuals owned or controlled by, or acting on behalf or at the direction of, the government of Iran; (ii) Conduct activities for which sanctions may be imposed under section 5 of the Iran Sanctions Act; or (iii) Conduct any transaction that exceeds the threshold at <a class="xref fm:ParaNumOnly" href="#FAR_25_703_2" title="25.703-2" aria-label="25.703-2. Link 361">25.703-2</a>(a)(2) with Iran’s Revolutionary Guard Corps or any of its officials, agents, or <i data-tippy-content='Affiliates means associated business concerns or individuals if, directly or indirectly either one controls or can control the other; or third party controls or can control both, except as follows:(1) For use in subpart 9.4, see the definition at 9.403.(2) For use of affiliates in size determinations, see the definition of "small business concern" in this section.' class="agov-definition">affiliates, the property and interests in property of which are blocked pursuant to the International <i data-tippy-content="Emergency, as used in 6.208, 13.201, 13.500, 18.001, 18.202, 18.203, and subpart 26.2, means any occasion or instance for which, in the determination of the President, Federal assistance is needed to supplement State and local efforts and capabilities to save lives and to protect property and public health and safety, or to lessen or avert the threat of a catastrophe in any part of the United States (42 U.S.C. 5122)." class="agov-definition">Emergency Economic Powers Act. (8) Describe- (i) The <i data-tippy-content="Sensitive technology-(1) Means hardware, software, telecommunications equipment, or any other technology that is to be used specifically-(i) To restrict the free flow of unbiased information in Iran; or(ii) To disrupt, monitor, or otherwise restrict speech of the people of Iran; and(2) Does not include information or informational materials the export of which the President does not have the authority to regulate or prohibit pursuant to section 203(b)(3) of the International Emergency Economic Powers Act ( 50 U.S.C. 1702(b)(3))." class="agov-definition">sensitive technology and the entity or individual to which it was exported (i.e., the government of Iran or an entity or individual owned or controlled by, or acting on behalf or at the direction of, the government of Iran); (ii) The activities in which the offeror is engaged for which sanctions may be imposed under section 5 of the Iran Sanctions Act; or (iii) The transactions that exceed the threshold at <a class="xref fm:ParaNumOnly" href="#FAR_25_703_2" title="25.703-2" aria-label="25.703-2. Link 361">25.703-2</a>(a)(2) with Iran’s Revolutionary Guard Corps or any of its officials, agents, or <i data-tippy-content='Affiliates means associated business concerns or individuals if, directly or indirectly either one controls or can control the other; or third party controls or can control both, except as follows:(1) For use in subpart 9.4, see the definition at 9.403.(2) For use of affiliates in size determinations, see the definition of "small business concern" in this section.' class="agov-definition">affiliates, the property and interests in property of which are blocked pursuant to the International <i data-tippy-content="Emergency, as used in 6.208, 13.201, 13.500, 18.001, 18.202, 18.203, and subpart 26.2, means any occasion or instance for which, in the determination of the President, Federal assistance is needed to supplement State and local efforts and capabilities to save lives and to protect property and public health and safety, or to lessen or avert the threat of a catastrophe in any part of the United States (42 U.S.C. 5122)." class="agov-definition">Emergency Economic Powers Act. </div> </article> </article> </article> <article class="topic nested1" aria-labelledby="ariaid-title78" id="FAR_Subpart_25_8" data-part="subpart" data-part-number="25.8"> <h2 class="title topictitle2 Subpart" id="ariaid-title78"> Subpart 25.8 - Other International Agreements and Coordination</h2> <article class="topic concept nested2" aria-labelledby="ariaid-title79" id="FAR_25_801" data-part="section" data-part-number="25.801"> <h3 class="title topictitle3" id="ariaid-title79"> 25.801 General.</h3> <div class="body conbody"> Treaties and agreements between the United States and foreign governments affect the evaluation of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers from foreign entities and the performance of contracts in foreign countries. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title80" id="FAR_25_802" data-part="section" data-part-number="25.802"> <h3 class="title topictitle3" id="ariaid-title80"> 25.802 Procedures.</h3> <div class="body conbody"> (a) When placing contracts with contractors located outside the United States, for performance outside the United States, <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officers must- (1) Determine the existence and applicability of any international agreements and ensure compliance with these agreements; and (2) Conduct the necessary advance <i data-tippy-content="Acquisition planning means the process by which the efforts of all personnel responsible for an acquisition are coordinated and integrated through a comprehensive plan for fulfilling the agency need in a timely manner and at a reasonable cost. It includes developing the overall strategy for managing the acquisition." class="agov-definition">acquisition planning and coordination between the appropriate U.S. <i data-tippy-content="Executive agency means an executive department, a military department, or any independent establishment within the meaning of 5 U.S.C.101, 102, and 104(1), respectively, and any wholly owned Government corporation within the meaning of 31 U.S.C. 9101." class="agov-definition">executive agencies and foreign interests as required by these agreements. (b) The Department of State publishes many international agreements in the "United States Treaties and Other International Agreements" series. Copies of this publication normally are available in overseas legal offices and U.S. diplomatic missions. (c) <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">Contracting officers must award all contracts with Taiwanese firms or organizations through the American Institute of Taiwan (AIT). AIT is under contract to the Department of State. </div> </article> </article> <article class="topic nested1" aria-labelledby="ariaid-title81" id="FAR_Subpart_25_9" data-part="subpart" data-part-number="25.9"> <h2 class="title topictitle2 Subpart" id="ariaid-title81"> Subpart 25.9 - Customs and Duties</h2> <article class="topic nested2" aria-labelledby="ariaid-title82" id="FAR_25_900" data-part="section" data-part-number="25.900"> <h3 class="title topictitle3" id="ariaid-title82"> 25.900 Scope of subpart.</h3> <div class="body"> This subpart provides policies and procedures for exempting from import duties certain <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies purchased under Government contracts. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title83" id="FAR_25_901" data-part="section" data-part-number="25.901"> <h3 class="title topictitle3" id="ariaid-title83"> 25.901 Policy.</h3> <div class="body conbody"> United States laws impose duties on foreign <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies imported into the customs territory of the United States. Certain exemptions from these duties are available to Government agencies. Agencies must use these exemptions when the anticipated savings to appropriated funds will outweigh the administrative costs associated with processing required documentation. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title84" id="FAR_25_902" data-part="section" data-part-number="25.902"> <h3 class="title topictitle3" id="ariaid-title84"> 25.902 Procedures.</h3> <div class="body conbody"> For regulations governing importations and duties, see the Customs Regulations issued by the U.S. Customs Service, Department of the Treasury (19 CFR Chapter 1). Except as provided elsewhere in the Customs Regulations (see 19 CFR 10.100), all shipments of imported <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies purchased under Government contracts are subject to the usual Customs entry and examination requirements. Unless the agency obtains an exemption (see <a class="xref fm:ParaNumOnly" href="#FAR_25_903" title="25.903" aria-label="25.903. Link 369">25.903</a>), those shipments are also subject to duty. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title85" id="FAR_25_903" data-part="section" data-part-number="25.903"> <h3 class="title topictitle3" id="ariaid-title85"> 25.903 Exempted supplies.</h3> <div class="body conbody"> (a) Subchapters VIII and X of Chapter 98 of the Harmonized Tariff Schedule of the United States (19 U.S.C. 1202) list <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies for which exemptions from duty may be obtained when imported into the customs territory of the United States under a Government contract. For certain of these <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies, the <i data-tippy-content="Contracting means purchasing, renting, leasing, or otherwise obtaining supplies or services from nonfederal sources. Contracting includes description (but not determination) of supplies and services required, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration. It does not include making grants or cooperative agreements." class="agov-definition">contracting agency must certify to the Commissioner of Customs that they are for the purpose stated in the Harmonized Tariff Schedule (see 19 CFR 10.102-104, 10.114, and 10.121 and 15 CFR Part 301 for requirements and formats). (b) <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">Supplies (excluding equipment) for Government-operated vessels or aircraft may be withdrawn from any customs-bonded warehouse, from continuous customs custody elsewhere than in a bonded warehouse, or from a foreign-trade zone, free of duty and internal revenue tax as provided in 19 U.S.C. 1309 and 1317. The contracting activity must cite this authority on the appropriate customs form when making purchases (see 19 CFR 10.59 - 10.65). </div> </article> </article> <article class="topic nested1" aria-labelledby="ariaid-title86" id="FAR_Subpart_25_10" data-part="subpart" data-part-number="25.10"> <h2 class="title topictitle2 Subpart" id="ariaid-title86"> Subpart 25.10 - Additional Foreign Acquisition Regulations</h2> <article class="topic concept nested2" aria-labelledby="ariaid-title87" id="FAR_25_1001" data-part="section" data-part-number="25.1001"> <h3 class="title topictitle3" id="ariaid-title87"> 25.1001 Waiver of right to examination of records.</h3> <div class="body conbody"> (a) Policy. The clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_215_2" title="52.215-2" aria-label="52.215-2. Link 370">52.215-2</a>, Audit and Records-Negotiation, prescribed at <a class="xref fm:ParaNumOnly" href="/far/part-15#FAR_15_209" title="15.209" aria-label="15.209. Link 371">15.209</a>(b), and paragraph (d) of the clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_212_5" title="52.212-5" aria-label="52.212-5. Link 372">52.212-5</a>, Contract Terms and Conditions Required to Implement Statutes or Executive Orders-<i data-tippy-content="Commercial product means— (1) A product, other than real property, that is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes, and–(i) Has been sold, leased, or licensed to the general public; or(ii) Has been offered for sale, lease, or license to the general public;(2) A product that evolved from a product described in paragraph (1) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace, but will be available in the commercial marketplace in time to satisfy the delivery requirements under a Government solicitation;(3) A product that would satisfy a criterion expressed in paragraph (1) or (2) of this definition, except for-(i) Modifications of a type customarily available in the commercial marketplace; or(ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet Federal Government requirements. “Minor modifications” means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component, or change the purpose of a process. Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product. Dollar values and percentages may be used as guideposts, but are not conclusive evidence that a modification is minor;(4) Any combination of products meeting the requirements of paragraph (1), (2), or (3) of this definition that are of a type customarily combined and sold in combination to the general public;(5) A product, or combination of products, referred to in paragraphs (1) through (4) of this definition, even though the product, or combination of products, is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor; or(6) A nondevelopmental item, if the procuring agency determines the product was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple State and local governments or to multiple foreign governments." class="agov-definition">Commercial Products and <i data-tippy-content="Commercial service means— (1) Installation services, maintenance services, repair services, training services, and other services if–(i) Such services are procured for support of a commercial product as defined in this section, regardless of whether such services are provided by the same source or at the same time as the commercial product; and(ii) The source of such services provides similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government;(2) Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions. For purposes of these services–(i)Catalog price means a price included in a catalog, price list, schedule, or other form that is regularly maintained by the manufacturer or vendor, is either published or otherwise available for inspection by customers, and states prices at which sales are currently, or were last, made to a significant number of buyers constituting the general public; and(ii)Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from sources independent of the offerors; or(3) A service referred to in paragraph (1) or (2) of this definition, even though the service is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor." class="agov-definition">Commercial Services, prescribed at <a class="xref fm:ParaNumOnly" href="/far/part-12#FAR_12_301" title="12.301" aria-label="12.301. Link 373">12.301</a>(b)(4), implement <a class="xref" href="https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section3841&num=0&edition=prelim" target="_blank" title="10 U.S.C. 3841" aria-label="10 U.S.C. 3841. Link 374">10 U.S.C. 3841</a> and 41 U.S.C. 4706. The basic clauses authorize examination of records by the Comptroller General. (1) Insert the appropriate basic clause, whenever possible, in negotiated contracts with foreign contractors. (2) The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer may use <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_215_2" title="52.215-2" aria-label="52.215-2. Link 370">52.215-2</a> with its <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternate III or <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_212_5" title="52.212-5" aria-label="52.212-5. Link 372">52.212-5</a> with its <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternate I after- (i) Exhausting all reasonable efforts to include the basic clause; (ii) Considering factors such as <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">alternate sources of supply, additional cost, and time of delivery; and (iii) The head of the agency has executed a determination and findings in accordance with paragraph (b) of this section, with the concurrence of the Comptroller General. However, concurrence of the Comptroller General is not required if the contractor is a foreign government or agency thereof or is precluded by the laws of the country involved from making its records available for examination. (b) Determination and findings. The determination and findings must- (1) Identify the contract and its purpose, and identify if the contract is with a foreign contractor or with a foreign government or an agency of a foreign government; (2) Describe the efforts to include the basic clause; (3) State the reasons for the contractor’s refusal to include the basic clause; (4) Describe the price and availability of the <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies or services from the United States and other sources; and (5) Determine that it will best serve the interest of the United States to use the appropriate <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">alternate clause in paragraph (a)(2) of this section. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title88" id="FAR_25_1002" data-part="section" data-part-number="25.1002"> <h3 class="title topictitle3" id="ariaid-title88"> 25.1002 Use of foreign currency.</h3> <div class="body conbody"> (a) Unless an international agreement or the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA (see <a class="xref fm:ParaNumOnly" href="#FAR_25_408" title="25.408" aria-label="25.408. Link 239">25.408</a>(a)(4)) requires a specific currency, <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officers must determine whether <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations for contracts to be entered into and performed outside the United States will require submission of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers in U.S. currency or a specified foreign currency. In unusual circumstances, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer may permit submission of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers in other than a specified currency. (b) To ensure a fair evaluation of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers, <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations generally should require all <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers to be priced in the same currency. However, if the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation permits submission of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers in other than a specified currency, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must convert the offered prices to U.S. currency for evaluation purposes. The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must use the current market exchange rate from a commonly used source in effect as follows: (1) For <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions conducted using sealed bidding procedures, on the date of bid opening. (2) For <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions conducted using negotiation procedures- (i) On the date specified for receipt of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers, if award is based on initial <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers; otherwise (ii) On the date specified for receipt of final proposal revisions. (c) If a contract is priced in foreign currency, the agency must ensure that adequate funds are available to cover currency fluctuations to avoid a violation of the Anti-Deficiency Act (31 U.S.C. 1341, 1342, 1511-1519). </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title89" id="FAR_25_1003" data-part="section" data-part-number="25.1003"> <h3 class="title topictitle3" id="ariaid-title89"> 25.1003 Tax on certain foreign procurements.</h3> <div class="body conbody"> See <a class="xref fm:ParaNumOnly" href="/far/part-29#FAR_29_204" title="29.204" aria-label="29.204. Link 378">29.204</a> for the imposition of the tax on certain foreign procurements pursuant to the James Zadroga 9/11 Health and Compensation Act of 2010 ( <a class="xref" href="https://www.govinfo.gov/content/pkg/PLAW-111publ347/html/PLAW-111publ347.htm" target="_blank" title="Pub. L. 111-347" aria-label="Pub. L. 111-347. Link 379">Pub. L. 111-347</a>), <a class="xref" href="https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section5000&num=0&edition=prelim" target="_blank" title="26 U.S.C. 5000" aria-label="26 U.S.C. 5000. Link 380">26 U.S.C. 5000</a> C, and its implementing regulations at 26 CFR 1.5000C-1 through 1.5000C-7. </div> </article> </article> <article class="topic nested1" aria-labelledby="ariaid-title90" id="FAR_Subpart_25_11" data-part="subpart" data-part-number="25.11"> <h2 class="title topictitle2 Subpart" id="ariaid-title90"> Subpart 25.11 - Solicitation Provisions and Contract Clauses</h2> <article class="topic concept nested2" aria-labelledby="ariaid-title91" id="FAR_25_1101" data-part="section" data-part-number="25.1101"> <h3 class="title topictitle3" id="ariaid-title91"> 25.1101 Acquisition of supplies.</h3> <div class="body conbody"> The following provisions and clauses apply to the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition of <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies and the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition of services involving the furnishing of <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies. (a) (1) (i) Insert the clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_1" title="52.225-1" aria-label="52.225-1. Link 138">52.225-1</a>, Buy American-<i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">Supplies, in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations and contracts with a value exceeding the <i data-tippy-content="Micro-purchase threshold means $10,000, except it means-(1) For acquisitions of construction subject to 40 U.S.C. chapter 31, subchapter IV, Wage Rate Requirements (Construction), $2,000;(2) For acquisitions of services subject to 41 U.S.C. chapter 67, Service Contract Labor Standards, $2,500;  (3) For acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation; to facilitate defense against or recovery from cyber, nuclear, biological, chemical or radiological attack; to support a request from the Secretary of State or the Administrator of the United States Agency for International Development to facilitate provision of international disaster assistance pursuant to 22 U.S.C. 2292 et seq.; or to support response to an emergency or major disaster (42 U.S.C. 5122), as described in 13.201(g)(1), except for construction subject to 40 U.S.C. chapter 31, subchapter IV, Wage Rate Requirements (Construction) (41 U.S.C. 1903)–(i) $20,000 in the case of any contract to be awarded and performed, or purchase to be made, inside the United States; and(ii) $35,000 in the case of any contract to be awarded and performed, or purchase to be made, outside the United States; and(4) For acquisitions of supplies or services from institutions of higher education (20 U.S.C. 1001(a)) or related or affiliated nonprofit entities, or from nonprofit research organizations or independent research institutes—(i) $10,000; or(ii) A higher threshold, as determined appropriate by the head of the agency and consistent with clean audit findings under 31 U.S.C. chapter 75, Requirements for Single Audits; an internal institutional risk assessment; or State law." class="agov-definition">micro-purchase threshold but not exceeding $50,000; and in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations and contracts with a value exceeding $50,000, if none of the clauses prescribed in paragraphs (b) and (c) of this section apply, except if- (A) The <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation is restricted to <i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end products in accordance with <a class="xref fm:Subpart" href="/far/part-6#FAR_Subpart_6_3" title="subpart  6.3" aria-label="subpart聽 6.3. Link 382">subpart  6.3</a>; (B) The <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is for <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies for use within the United States and an exception to the Buy American statute applies (e.g., nonavailability, public interest, or <i data-tippy-content='Information technology means any equipment, or interconnected system(s) or subsystem(s) of equipment, that is used in the automatic acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information by the agency.(1) For purposes of this definition, equipment is used by an agency if the equipment is used by the agency directly or is used by a contractor under a contract with the agency that requires-(i) Its use; or(ii) To a significant extent, its use in the performance of a service or the furnishing of a product.(2) The term "information technology" includes computers, ancillary equipment (including imaging peripherals, input, output, and storage devices necessary for security and surveillance), peripheral equipment designed to be controlled by the central processing unit of a computer, software, firmware and similar procedures, services (including support services), and related resources.(3) The term "information technology" does not include any equipment that-(i) Is acquired by a contractor incidental to a contract; or(ii) Contains imbedded information technology that is used as an integral part of the product, but the principal function of which is not the acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information. For example, HVAC (heating, ventilation, and air conditioning) equipment, such as thermostats or temperature control devices, and medical equipment where information technology is integral to its operation, are not information technology.' class="agov-definition">information technology that is a <i data-tippy-content="Commercial product means— (1) A product, other than real property, that is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes, and–(i) Has been sold, leased, or licensed to the general public; or(ii) Has been offered for sale, lease, or license to the general public;(2) A product that evolved from a product described in paragraph (1) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace, but will be available in the commercial marketplace in time to satisfy the delivery requirements under a Government solicitation;(3) A product that would satisfy a criterion expressed in paragraph (1) or (2) of this definition, except for-(i) Modifications of a type customarily available in the commercial marketplace; or(ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet Federal Government requirements. “Minor modifications” means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component, or change the purpose of a process. Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product. Dollar values and percentages may be used as guideposts, but are not conclusive evidence that a modification is minor;(4) Any combination of products meeting the requirements of paragraph (1), (2), or (3) of this definition that are of a type customarily combined and sold in combination to the general public;(5) A product, or combination of products, referred to in paragraphs (1) through (4) of this definition, even though the product, or combination of products, is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor; or(6) A nondevelopmental item, if the procuring agency determines the product was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple State and local governments or to multiple foreign governments." class="agov-definition">commercial product); or (C) The <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is for <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies for use outside the United States. (ii) The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall use the clause with its <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternate I to reflect the domestic content threshold that will apply to the entire period of performance, when the <i data-tippy-content="Senior procurement executive means the individual appointed pursuant to 41 U.S.C. 1702(c) who is responsible for management direction of the acquisition system of the executive agency, including implementation of the unique acquisition policies, regulations, and standards of the executive agency." class="agov-definition">senior procurement executive allows for application of an <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">alternate domestic content test for the contract in accordance with <a class="xref fm:ParaNumOnly" href="#FAR_25_101" title="25.101" aria-label="25.101. Link 101">25.101</a>(d). For contracts that the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer estimates will be awarded in calendar year 2022 or 2023, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall insert “60” in paragraph (1)(ii)(A) of the definition of “<i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end product.” For contracts that the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer estimates will be awarded in calendar year 2024, 2025, 2026, 2027, or 2028, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall insert “65”. For contracts that the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer estimates will be awarded after calendar year 2028 the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall insert “75”. (2) Insert the provision at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_2" title="52.225-2" aria-label="52.225-2. Link 384">52.225-2</a>, Buy American Certificate, in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations containing the clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_1" title="52.225-1" aria-label="52.225-1. Link 138">52.225-1</a>. (b) (1) (i) Insert the clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_3" title="52.225-3" aria-label="52.225-3. Link 386">52.225-3</a>, Buy American-Free Trade Agreements-Israeli Trade Act, in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations and contracts if- (A) The <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is for <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies, or for services involving the furnishing of <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies, for use within the United States, and the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition value is $50,000; or more, but is less than $174,000; (B) The <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is not for <i data-tippy-content='Information technology means any equipment, or interconnected system(s) or subsystem(s) of equipment, that is used in the automatic acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information by the agency.(1) For purposes of this definition, equipment is used by an agency if the equipment is used by the agency directly or is used by a contractor under a contract with the agency that requires-(i) Its use; or(ii) To a significant extent, its use in the performance of a service or the furnishing of a product.(2) The term "information technology" includes computers, ancillary equipment (including imaging peripherals, input, output, and storage devices necessary for security and surveillance), peripheral equipment designed to be controlled by the central processing unit of a computer, software, firmware and similar procedures, services (including support services), and related resources.(3) The term "information technology" does not include any equipment that-(i) Is acquired by a contractor incidental to a contract; or(ii) Contains imbedded information technology that is used as an integral part of the product, but the principal function of which is not the acquisition, storage, analysis, evaluation, manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or information. For example, HVAC (heating, ventilation, and air conditioning) equipment, such as thermostats or temperature control devices, and medical equipment where information technology is integral to its operation, are not information technology.' class="agov-definition">information technology that is a <i data-tippy-content="Commercial product means— (1) A product, other than real property, that is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes, and–(i) Has been sold, leased, or licensed to the general public; or(ii) Has been offered for sale, lease, or license to the general public;(2) A product that evolved from a product described in paragraph (1) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace, but will be available in the commercial marketplace in time to satisfy the delivery requirements under a Government solicitation;(3) A product that would satisfy a criterion expressed in paragraph (1) or (2) of this definition, except for-(i) Modifications of a type customarily available in the commercial marketplace; or(ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet Federal Government requirements. “Minor modifications” means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component, or change the purpose of a process. Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product. Dollar values and percentages may be used as guideposts, but are not conclusive evidence that a modification is minor;(4) Any combination of products meeting the requirements of paragraph (1), (2), or (3) of this definition that are of a type customarily combined and sold in combination to the general public;(5) A product, or combination of products, referred to in paragraphs (1) through (4) of this definition, even though the product, or combination of products, is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor; or(6) A nondevelopmental item, if the procuring agency determines the product was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple State and local governments or to multiple foreign governments." class="agov-definition">commercial product, using fiscal year 2004 or subsequent fiscal year funds; and (C) No exception in <a class="xref fm:ParaNumOnly" href="#FAR_25_401" title="25.401" aria-label="25.401. Link 243">25.401</a> applies. For <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions of agencies not subject to the Israeli Trade Act (see <a class="xref fm:ParaNumOnly" href="#FAR_25_406" title="25.406" aria-label="25.406. Link 388">25.406</a>), see agency regulations. (ii) If the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition value is $50,000 or more but is less than $100,000, use the clause with its <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternate II. (iii) If the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition value is $100,000 or more but is less than $102,280, use the clause with its <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternate III. (iv) The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall use the clause with its <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternate IV to reflect the domestic content threshold that will apply to the entire period of performance, when the <i data-tippy-content="Senior procurement executive means the individual appointed pursuant to 41 U.S.C. 1702(c) who is responsible for management direction of the acquisition system of the executive agency, including implementation of the unique acquisition policies, regulations, and standards of the executive agency." class="agov-definition">senior procurement executive allows for application of an <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">alternate domestic content test for the contract in accordance with <a class="xref fm:ParaNumOnly" href="#FAR_25_102" title="25.102" aria-label="25.102. Link 389">25.102</a>(d). For contracts that the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer estimates will be awarded in calendar year 2022 or 2023, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall insert “60” in paragraph (1)(ii)(A) of the definition of “<i data-tippy-content='Domestic end product means- (1) For an end product that does not consist wholly or predominantly of iron or steel or a combination of both—(i) An unmanufactured end product mined or produced in the United States;(ii) An end product manufactured in the United States, if–(A) The cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.101(d)). Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic; or(B) The end product is a COTS item; or(2) For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in the end product. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the end product and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the definition of "cost of components" in this section.' class="agov-definition">domestic end product.” For contracts that the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer estimates will be awarded in calendar year 2024, 2025, 2026, 2027, or 2028, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall insert “65”. For contracts that the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer estimates will be awarded after calendar year 2028 the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall insert “75”. (2) (i) Insert the provision at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_4" title="52.225-4" aria-label="52.225-4. Link 390">52.225-4</a>, Buy American-Free Trade Agreements-Israeli Trade Act Certificate, in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations containing the clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_3" title="52.225-3" aria-label="52.225-3. Link 386">52.225-3</a>. (ii) If the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition value is $50,000 or more but is less than $100,000, use the provision with its <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternate II. (iii) If the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition value is $100,000 or more, but is less than $102,280, use the provision with its <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternate III. (c) (1) Insert the clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_5" title="52.225-5" aria-label="52.225-5. Link 392">52.225-5</a>, Trade Agreements, in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations and contracts valued at $174,000 or more, if the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition is covered by the <i data-tippy-content="World Trade Organization Government Procurement Agreement (WTO GPA) country means any of the following countries: Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan, Ukraine, or United Kingdom." class="agov-definition">WTO GPA (see <a class="xref fm:Subpart" href="#FAR_Subpart_25_4" title="subpart  25.4" aria-label="subpart聽 25.4. Link 97">subpart  25.4</a>) and the agency has determined that the restrictions of the Buy American statute are not applicable to <i data-tippy-content="U.S.-made end product means an article that is mined, produced, or manufactured in the United States or that is substantially transformed in the United States into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed." class="agov-definition">U.S.-made end products. If the agency has not made such a determination, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer must follow agency procedures. (2) Insert the provision at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_6" title="52.225-6" aria-label="52.225-6. Link 394">52.225-6</a>, Trade Agreements Certificate, in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations containing the clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_5" title="52.225-5" aria-label="52.225-5. Link 392">52.225-5</a>. (d) Insert the provision at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_7" title="52.225-7" aria-label="52.225-7. Link 396">52.225-7</a>, Waiver of Buy American Statute for <i data-tippy-content="Civil aircraft and related articles means-(1) All aircraft other than aircraft to be purchased for use by the Department of Defense or the U.S. Coast Guard;(2) The engines (and parts and components for incorporation into the engines) of these aircraft;(3) Any other parts, components, and subassemblies for incorporation into the aircraft; and(4) Any ground flight simulators, and parts and components of these simulators, for use with respect to the aircraft, whether to be used as original or replacement equipment in the manufacture, repair, maintenance, rebuilding, modification, or conversion of the aircraft and without regard to whether the aircraft or articles receive duty-free treatment under section 601(a)(2) of the Trade Agreements Act." class="agov-definition">Civil Aircraft and Related Articles, in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations for <i data-tippy-content="Civil aircraft and related articles means-(1) All aircraft other than aircraft to be purchased for use by the Department of Defense or the U.S. Coast Guard;(2) The engines (and parts and components for incorporation into the engines) of these aircraft;(3) Any other parts, components, and subassemblies for incorporation into the aircraft; and(4) Any ground flight simulators, and parts and components of these simulators, for use with respect to the aircraft, whether to be used as original or replacement equipment in the manufacture, repair, maintenance, rebuilding, modification, or conversion of the aircraft and without regard to whether the aircraft or articles receive duty-free treatment under section 601(a)(2) of the Trade Agreements Act." class="agov-definition">civil aircraft and related articles (see <a class="xref fm:ParaNumOnly" href="#FAR_25_407" title="25.407" aria-label="25.407. Link 397">25.407</a>), if the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition value is less than $174,000. (e) Insert the clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_8" title="52.225-8" aria-label="52.225-8. Link 398">52.225-8</a>, Duty-Free Entry, in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations and contracts for <i data-tippy-content="Supplies means all property except land or interest in land. It includes (but is not limited to) public works, buildings, and facilities; ships, floating equipment, and vessels of every character, type, and description, together with parts and accessories; aircraft and aircraft parts, accessories, and equipment; machine tools; and the alteration or installation of any of the foregoing." class="agov-definition">supplies that may be imported into the United States and for which duty-free entry may be obtained in accordance with <a class="xref fm:ParaNumOnly" href="#FAR_25_903" title="25.903" aria-label="25.903. Link 369">25.903</a>(a), if the value of the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition- (1) Exceeds the <i data-tippy-content="Simplified acquisition threshold means $250,000, except for—(1) Acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation; to facilitate defense against or recovery from cyber, nuclear, biological, chemical, or radiological attack; to support a request from the Secretary of State or the Administrator of the United States Agency for International Development to facilitate provision of international disaster assistance pursuant to 22 U.S.C. 2292 et seq.; or to support response to an emergency or major disaster (42 U.S.C. 5122), (41 U.S.C. 1903), the term means–(i) $800,000 for any contract to be awarded and performed, or purchase to be made, inside the United States; and(ii) $1.5 million for any contract to be awarded and performed, or purchase to be made, outside the United States; and(2) Acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a humanitarian or peacekeeping operation (10 U.S.C. 3015), the term means $500,000 for any contract to be awarded and performed, or purchase to be made, outside the United States." class="agov-definition">simplified acquisition threshold; or (2) Does not exceed the <i data-tippy-content="Simplified acquisition threshold means $250,000, except for—(1) Acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation; to facilitate defense against or recovery from cyber, nuclear, biological, chemical, or radiological attack; to support a request from the Secretary of State or the Administrator of the United States Agency for International Development to facilitate provision of international disaster assistance pursuant to 22 U.S.C. 2292 et seq.; or to support response to an emergency or major disaster (42 U.S.C. 5122), (41 U.S.C. 1903), the term means–(i) $800,000 for any contract to be awarded and performed, or purchase to be made, inside the United States; and(ii) $1.5 million for any contract to be awarded and performed, or purchase to be made, outside the United States; and(2) Acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a humanitarian or peacekeeping operation (10 U.S.C. 3015), the term means $500,000 for any contract to be awarded and performed, or purchase to be made, outside the United States." class="agov-definition">simplified acquisition threshold, but the savings from waiving the duty is anticipated to be more than the administrative cost of waiving the duty. When used for <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions that do not exceed the <i data-tippy-content="Simplified acquisition threshold means $250,000, except for—(1) Acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a contingency operation; to facilitate defense against or recovery from cyber, nuclear, biological, chemical, or radiological attack; to support a request from the Secretary of State or the Administrator of the United States Agency for International Development to facilitate provision of international disaster assistance pursuant to 22 U.S.C. 2292 et seq.; or to support response to an emergency or major disaster (42 U.S.C. 5122), (41 U.S.C. 1903), the term means–(i) $800,000 for any contract to be awarded and performed, or purchase to be made, inside the United States; and(ii) $1.5 million for any contract to be awarded and performed, or purchase to be made, outside the United States; and(2) Acquisitions of supplies or services that, as determined by the head of the agency, are to be used to support a humanitarian or peacekeeping operation (10 U.S.C. 3015), the term means $500,000 for any contract to be awarded and performed, or purchase to be made, outside the United States." class="agov-definition">simplified acquisition threshold, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer may modify paragraphs (c)(1) and (j)(2) of the clause to reduce the dollar figure. (f) Insert the provision at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_18" title="52.225-18" aria-label="52.225-18. Link 100">52.225-18</a>, Place of Manufacture, in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations that are predominantly for the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition of <i data-tippy-content="Manufactured end product means any end product in product and service codes (PSC) 1000-9999, except-(1) PSC 5510, Lumber and Related Basic Wood Materials;(2) Product or service group (PSG) 87, Agricultural Supplies;(3) PSG 88, Live Animals;(4) PSG 89, Subsistence;(5) PSC 9410, Crude Grades of Plant Materials;(6) PSC 9430, Miscellaneous Crude Animal Products, Inedible;(7) PSC 9440, Miscellaneous Crude Agricultural and Forestry Products;(8) PSC 9610, Ores;(9) PSC 9620, Minerals, Natural and Synthetic; and(10) PSC 9630, Additive Metal Materials." class="agov-definition">manufactured end products (i.e., the estimated value of the <i data-tippy-content="Manufactured end product means any end product in product and service codes (PSC) 1000-9999, except-(1) PSC 5510, Lumber and Related Basic Wood Materials;(2) Product or service group (PSG) 87, Agricultural Supplies;(3) PSG 88, Live Animals;(4) PSG 89, Subsistence;(5) PSC 9410, Crude Grades of Plant Materials;(6) PSC 9430, Miscellaneous Crude Animal Products, Inedible;(7) PSC 9440, Miscellaneous Crude Agricultural and Forestry Products;(8) PSC 9610, Ores;(9) PSC 9620, Minerals, Natural and Synthetic; and(10) PSC 9630, Additive Metal Materials." class="agov-definition">manufactured end products exceeds the estimated value of other items to be acquired as a result of the <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation). </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title92" id="FAR_25_1102" data-part="section" data-part-number="25.1102"> <h3 class="title topictitle3" id="ariaid-title92"> 25.1102 Acquisition of construction.</h3> <div class="body conbody"> When using funds other than those appropriated under the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5) (Recovery Act), follow the prescriptions in paragraphs (a) through (d) of this section. Otherwise, follow the prescription in paragraph (e). (a) Insert the clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_9" title="52.225-9" aria-label="52.225-9. Link 186">52.225-9</a>, Buy American-<i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">Construction Materials, in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations and contracts for <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction that is performed in the United States valued at less than $6,708,000. (1) List in paragraph (b)(2) of the clause all foreign construction material excepted from the requirements of the Buy American statute. (2) If the head of the agency determines that a higher percentage is appropriate, substitute the higher evaluation percentage in paragraph (b)(3)(i) of the clause. (3) The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall use the clause with its <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternate I to reflect the domestic content threshold that will apply to the entire period of performance, when the <i data-tippy-content="Senior procurement executive means the individual appointed pursuant to 41 U.S.C. 1702(c) who is responsible for management direction of the acquisition system of the executive agency, including implementation of the unique acquisition policies, regulations, and standards of the executive agency." class="agov-definition">senior procurement executive allows for application of an <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">alternate domestic content test for the contract in accordance with <a class="xref fm:ParaNumOnly" href="#FAR_25_201" title="25.201" aria-label="25.201. Link 102">25.201</a>(c). For contracts that the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer estimates will be awarded in calendar year 2022 or 2023, the <i data-tippy-content="Contracting means purchasing, renting, leasing, or otherwise obtaining supplies or services from nonfederal sources. Contracting includes description (but not determination) of supplies and services required, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration. It does not include making grants or cooperative agreements." class="agov-definition">contracting officer shall insert “60” in paragraph (1)(ii)(A) of the definition of “<i data-tippy-content="Domestic construction material means-(1) For use in subparts other than 25.6—(i) For construction material that does not consist wholly or predominantly of iron or steel or a combination of both—(A) An unmanufactured construction material mined or produced in the United States; or(B) A construction material manufactured in the United States, if–(1) The cost of the components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.201(c)).Components of unknown origin are treated as foreign; or(2) The construction material is a commercially available off-the-shelf (COTS) item; or(ii) For construction material that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the United States if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in such construction material. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the construction material contains multiple components, the cost of all the materials used in such construction material is calculated in accordance with the definition of “cost of components” in this section; or(3) For use in subpart  25.6, see the definition in 25.601." class="agov-definition">domestic construction material.” For contracts that the <i data-tippy-content="Contracting means purchasing, renting, leasing, or otherwise obtaining supplies or services from nonfederal sources. Contracting includes description (but not determination) of supplies and services required, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration. It does not include making grants or cooperative agreements." class="agov-definition">contracting officer estimates will be awarded in calendar year 2024, 2025, 2026, 2027, or 2028, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall insert “65”. For contracts that the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer estimates will be awarded after calendar year 2028 the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall insert “75”. (b) (1) Insert the provision at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_10" title="52.225-10" aria-label="52.225-10. Link 184">52.225-10</a>, Notice of Buy American Requirement-<i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">Construction Materials, in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations containing the clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_9" title="52.225-9" aria-label="52.225-9. Link 186">52.225-9</a>. (2) If insufficient time is available to process a determination regarding the inapplicability of the Buy American statute before receipt of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers, use the provision with its <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternate I. (c) Insert the clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_11" title="52.225-11" aria-label="52.225-11. Link 187">52.225-11</a>, Buy American-<i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">Construction Materials under Trade Agreements, in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations and contracts for <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction that is performed in the United States valued at $6,708,000 or more. (1) List in paragraph (b)(3) of the clause all foreign construction material excepted from the requirements of the Buy American statute, other than <i data-tippy-content='Designated country means any of the following countries:(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Australia, Austria,, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as "the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)"), Ukraine, or United Kingdom);(2) A Free Trade Agreement (FTA) country (Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore);(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago).' class="agov-definition">designated country <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material. (2) If the head of the agency determines that a higher percentage is appropriate, substitute the higher evaluation percentage in paragraph (b)(4)(i) of the clause. (3) For <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions valued at $6,708,000 or more, but less than $13,296,489, use the clause with its <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternate I. List in paragraph (b)(3) of the clause all foreign construction material excepted from the requirements of the Buy American statute, unless the excepted foreign <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction material is from a <i data-tippy-content='Designated country means any of the following countries:(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Australia, Austria,, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as "the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)"), Ukraine, or United Kingdom);(2) A Free Trade Agreement (FTA) country (Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore);(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago).' class="agov-definition">designated country other than Bahrain, Mexico, and Oman. (4) The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall use the clause with its <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternate II to reflect the domestic content threshold that will apply to the entire period of performance, when the <i data-tippy-content="Senior procurement executive means the individual appointed pursuant to 41 U.S.C. 1702(c) who is responsible for management direction of the acquisition system of the executive agency, including implementation of the unique acquisition policies, regulations, and standards of the executive agency." class="agov-definition">senior procurement executive allows for application of an <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">alternate domestic content test for the contract in accordance with <a class="xref fm:ParaNumOnly" href="#FAR_25_201" title="25.201" aria-label="25.201. Link 102">25.201</a>(c). For contracts that the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer estimates will be awarded in calendar year 2022 or 2023, the <i data-tippy-content="Contracting means purchasing, renting, leasing, or otherwise obtaining supplies or services from nonfederal sources. Contracting includes description (but not determination) of supplies and services required, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration. It does not include making grants or cooperative agreements." class="agov-definition">contracting officer shall insert “60” in paragraph (1)(ii)(A) of the definition of “<i data-tippy-content="Domestic construction material means-(1) For use in subparts other than 25.6—(i) For construction material that does not consist wholly or predominantly of iron or steel or a combination of both—(A) An unmanufactured construction material mined or produced in the United States; or(B) A construction material manufactured in the United States, if–(1) The cost of the components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029 (unless an alternate percentage is established for a contract in accordance with FAR 25.201(c)).Components of unknown origin are treated as foreign; or(2) The construction material is a commercially available off-the-shelf (COTS) item; or(ii) For construction material that consists wholly or predominantly of iron or steel or a combination of both, a construction material manufactured in the United States if the cost of foreign iron and steel constitutes less than 5 percent of the cost of all the components used in such construction material. The cost of foreign iron and steel includes but is not limited to the cost of foreign iron or steel mill products (such as bar, billet, slab, wire, plate, or sheet), castings, or forgings utilized in the manufacture of the construction material and a good faith estimate of the cost of all foreign iron or steel components excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the construction material contains multiple components, the cost of all the materials used in such construction material is calculated in accordance with the definition of “cost of components” in this section; or(3) For use in subpart  25.6, see the definition in 25.601." class="agov-definition">domestic construction material.” For contracts that the <i data-tippy-content="Contracting means purchasing, renting, leasing, or otherwise obtaining supplies or services from nonfederal sources. Contracting includes description (but not determination) of supplies and services required, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration. It does not include making grants or cooperative agreements." class="agov-definition">contracting officer estimates will be awarded in calendar year 2024, 2025, 2026, 2027, or 2028, the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall insert “65”. For contracts that the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer estimates will be awarded after calendar year 2028 the <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall insert “75”. (d) (1) Insert the provision at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_12" title="52.225-12" aria-label="52.225-12. Link 185">52.225-12</a>, Notice of Buy American Requirement-<i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">Construction Materials under Trade Agreements, in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations containing the clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_11" title="52.225-11" aria-label="52.225-11. Link 187">52.225-11</a>. (2) If insufficient time is available to process a determination regarding the inapplicability of the Buy American statute before receipt of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers, use the provision with its <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternate I. (3) For <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisitions valued at $6,708,000 or more, but less than $13,296,489, use the provision with its <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternate II. (e) (1) When using funds appropriated under the Recovery Act for <i data-tippy-content='Construction means construction, alteration, or repair (including dredging, excavating, and painting) of buildings, structures, or other real property. For purposes of this definition, the terms "buildings, structures, or other real property" include, but are not limited to, improvements of all types, such as bridges, dams, plants, highways, parkways, streets, subways, tunnels, sewers, mains, power lines, cemeteries, pumping stations, railways, airport facilities, terminals, docks, piers, wharves, ways, lighthouses, buoys, jetties, breakwaters, levees, canals, and channels. Construction does not include the manufacture, production, furnishing, construction, alteration, repair, processing, or assembling of vessels, aircraft, or other kinds of personal property (except that for use in subpart 22.5, see the definition at 22.502).' class="agov-definition">construction, use provisions and clauses <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_21" title="52.225-21" aria-label="52.225-21. Link 320">52.225-21</a>, <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_22" title="52.225-22" aria-label="52.225-22. Link 318">52.225-22</a>, <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_23" title="52.225-23" aria-label="52.225-23. Link 321">52.225-23</a>, or <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_24" title="52.225-24" aria-label="52.225-24. Link 319">52.225-24</a> (with appropriate <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternates) in lieu of the provisions and clauses <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_9" title="52.225-9" aria-label="52.225-9. Link 186">52.225-9</a>, <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_10" title="52.225-10" aria-label="52.225-10. Link 184">52.225-10</a>, <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_11" title="52.225-11" aria-label="52.225-11. Link 187">52.225-11</a>, or <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_12" title="52.225-12" aria-label="52.225-12. Link 185">52.225-12</a> (with appropriate <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternates), respectively, that would be applicable as prescribed in paragraphs (a) through (d) of this section if Recovery Act funds were not used. (2) If these Recovery Act provisions and clauses are only applicable to a project consisting of certain <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line items in the contract, identify in the schedule the <i data-tippy-content='Line item means the basic structural element in a procurement instrument that describes and organizes the required product or service for pricing, delivery, inspection, acceptance, invoicing, and payment. The use of the term "line item" includes "subline item," as applicable.' class="agov-definition">line items to which the provisions and clauses apply. (3) When using clause <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_23" title="52.225-23" aria-label="52.225-23. Link 321">52.225-23</a>, list foreign construction material in paragraph (b)(3) of the clause as follows: (i) Basic clause. List all foreign construction materials excepted from the Buy American statute or section 1605 of the Recovery Act, other than manufactured <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material from a Recovery Act <i data-tippy-content='Designated country means any of the following countries:(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Australia, Austria,, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as "the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)"), Ukraine, or United Kingdom);(2) A Free Trade Agreement (FTA) country (Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore);(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago).' class="agov-definition">designated country or unmanufactured <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material from a <i data-tippy-content='Designated country means any of the following countries:(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Australia, Austria,, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as "the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)"), Ukraine, or United Kingdom);(2) A Free Trade Agreement (FTA) country (Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore);(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago).' class="agov-definition">designated country. (ii) <i data-tippy-content="Alternate means a substantive variation of a basic provision or clause prescribed for use in a defined circumstance. It adds wording to, deletes wording from, or substitutes specified wording for a portion of the basic provision or clause. The alternate version of a provision or clause is the basic provision or clause as changed by the addition, deletion, or substitution (see 52.105(a))." class="agov-definition">Alternate I. List in paragraph (b)(3) of the clause all foreign construction material excepted from the Buy American statute or section 1605 of the Recovery Act, other than- (A) Manufactured <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material from a Recovery Act <i data-tippy-content='Designated country means any of the following countries:(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Australia, Austria,, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as "the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)"), Ukraine, or United Kingdom);(2) A Free Trade Agreement (FTA) country (Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore);(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago).' class="agov-definition">designated country other than Bahrain, Mexico, or Oman; or (B) Unmanufactured <i data-tippy-content="Construction material means an article, material, or supply brought to the construction site by a contractor or subcontractor for incorporation into the building or work. The term also includes an item brought to the site preassembled from articles, materials, or supplies. However, emergency life safety systems, such as emergency lighting, fire alarm, and audio evacuation systems, that are discrete systems incorporated into a public building or work and that are produced as complete systems, are evaluated as a single and distinct construction material regardless of when or how the individual parts or components of those systems are delivered to the construction site. Materials purchased directly by the Government are supplies, not construction material." class="agov-definition">construction material from a <i data-tippy-content='Designated country means any of the following countries:(1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Australia, Austria,, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as "the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)"), Ukraine, or United Kingdom);(2) A Free Trade Agreement (FTA) country (Australia, Bahrain, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore);(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago).' class="agov-definition">designated country other than Bahrain, Mexico, or Oman. </div> </article> <article class="topic concept nested2" aria-labelledby="ariaid-title93" id="FAR_25_1103" data-part="section" data-part-number="25.1103"> <h3 class="title topictitle3" id="ariaid-title93"> 25.1103 Other provisions and clauses.</h3> <div class="body conbody"> (a) Restrictions on certain foreign purchases. Insert the clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_13" title="52.225-13" aria-label="52.225-13. Link 418">52.225-13</a>, Restrictions on Certain Foreign Purchases, in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations and contracts, unless an exception applies. (b) Translations. Insert the clause at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_14" title="52.225-14" aria-label="52.225-14. Link 419">52.225-14</a>, Inconsistency Between English Version and Translation of Contract, in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations and contracts if anticipating translation into another language. (c) Foreign currency <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers. Insert the provision at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_17" title="52.225-17" aria-label="52.225-17. Link 420">52.225-17</a>, Evaluation of Foreign Currency <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">Offers, in <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations that permit the use of other than a specified currency. Insert in the provision the source of the rate to be used in the evaluation of <i data-tippy-content='Offer means a response to a solicitation that, if accepted, would bind the offeror to perform the resultant contract. Responses to invitations for bids (sealed bidding) are offers called "bids" or "sealed bids"; responses to requests for proposals (negotiation) are offers called "proposals"; however, responses to requests for quotations (simplified acquisition) are "quotations," not offers. For unsolicited proposals, see subpart 15.6.' class="agov-definition">offers. (d) The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall include in each <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitation for the <i data-tippy-content="Acquisition means the acquiring by contract with appropriated funds of supplies or services (including construction) by and for the use of the Federal Government through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, and evaluated. Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract." class="agov-definition">acquisition of other than <i data-tippy-content="Commercial product means— (1) A product, other than real property, that is of a type customarily used by the general public or by nongovernmental entities for purposes other than governmental purposes, and–(i) Has been sold, leased, or licensed to the general public; or(ii) Has been offered for sale, lease, or license to the general public;(2) A product that evolved from a product described in paragraph (1) of this definition through advances in technology or performance and that is not yet available in the commercial marketplace, but will be available in the commercial marketplace in time to satisfy the delivery requirements under a Government solicitation;(3) A product that would satisfy a criterion expressed in paragraph (1) or (2) of this definition, except for-(i) Modifications of a type customarily available in the commercial marketplace; or(ii) Minor modifications of a type not customarily available in the commercial marketplace made to meet Federal Government requirements. “Minor modifications” means modifications that do not significantly alter the nongovernmental function or essential physical characteristics of an item or component, or change the purpose of a process. Factors to be considered in determining whether a modification is minor include the value and size of the modification and the comparative value and size of the final product. Dollar values and percentages may be used as guideposts, but are not conclusive evidence that a modification is minor;(4) Any combination of products meeting the requirements of paragraph (1), (2), or (3) of this definition that are of a type customarily combined and sold in combination to the general public;(5) A product, or combination of products, referred to in paragraphs (1) through (4) of this definition, even though the product, or combination of products, is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor; or(6) A nondevelopmental item, if the procuring agency determines the product was developed exclusively at private expense and sold in substantial quantities, on a competitive basis, to multiple State and local governments or to multiple foreign governments." class="agov-definition">commercial products or <i data-tippy-content="Commercial service means— (1) Installation services, maintenance services, repair services, training services, and other services if–(i) Such services are procured for support of a commercial product as defined in this section, regardless of whether such services are provided by the same source or at the same time as the commercial product; and(ii) The source of such services provides similar services contemporaneously to the general public under terms and conditions similar to those offered to the Federal Government;(2) Services of a type offered and sold competitively in substantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specific outcomes to be achieved and under standard commercial terms and conditions. For purposes of these services–(i)Catalog price means a price included in a catalog, price list, schedule, or other form that is regularly maintained by the manufacturer or vendor, is either published or otherwise available for inspection by customers, and states prices at which sales are currently, or were last, made to a significant number of buyers constituting the general public; and(ii)Market prices means current prices that are established in the course of ordinary trade between buyers and sellers free to bargain and that can be substantiated through competition or from sources independent of the offerors; or(3) A service referred to in paragraph (1) or (2) of this definition, even though the service is transferred between or among separate divisions, subsidiaries, or affiliates of a contractor." class="agov-definition">commercial services the provision at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_20" title="52.225-20" aria-label="52.225-20. Link 421">52.225-20</a>, Prohibition on Conducting Restricted Business Operations in Sudan—Certification. (e) The <i data-tippy-content='Contracting officer means a person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. "Administrative contracting officer (ACO)" refers to a contracting officer who is administering contracts. "Termination contracting officer (TCO)" refers to a contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in any or all of these areas. Reference in this regulation (48 CFR chapter 1) to administrative contracting officer or termination contracting officer does not-(1) Require that a duty be performed at a particular office or activity; or(2) Restrict in any way a contracting officer in the performance of any duty properly assigned.' class="agov-definition">contracting officer shall include in all <i data-tippy-content='Solicitation means any request to submit offers or quotations to the Government. Solicitations under sealed bid procedures are called "invitations for bids." Solicitations under negotiated procedures are called "requests for proposals." Solicitations under simplified acquisition procedures may require submission of either a quotation or an offer.' class="agov-definition">solicitations the provision at <a class="xref fm:ParaNumOnly" href="/far/part-52#FAR_52_225_25" title="52.225-25" aria-label="52.225-25. Link 422">52.225-25</a>, Prohibition on <i data-tippy-content="Contracting means purchasing, renting, leasing, or otherwise obtaining supplies or services from nonfederal sources. Contracting includes description (but not determination) of supplies and services required, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration. It does not include making grants or cooperative agreements." class="agov-definition">Contracting with Entities Engaging in Certain Activities or Transactions Relating to Iran-Representation and Certifications. </div> </article> </article> </article> </article> </div> <div class="nextprev"><a href="/far/24.302" class="docprevious docprevround" title="Previous" aria-label="Previous">芦 Previous</a><a href="/far/25.000" class="docnext docnextround" title="Next" aria-label="Next">Next 禄</a></div> </div> <div id="block-favoriteslinksblock" class="block block-agov-favorites block-agov-favorites-links-block"> <div id="favorites-container"><div id="favorites-header"><h4 id="favorites-heading">Favorite</h4><h4 id="favorites-close-bookmarks">X</h4></div> <div id="favorites-menu-container"></div> </div> </div> <div id="block-messagemodalblock" class="block block-agov-favorites block-agov-message-modal-block"> <div class="messages-overlay"><div id="messages-container"><div 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data-key="0" data-type="subtitle" data-subtopic="25.504-1, 52.225-10, 52.225-11, 52.225-12, 52.225-1, 52.225-21, 52.225-22, 52.225-7" data-subpart="25.1, 25.6" ><article data-history-node-id="57452" role="article" about="/content/buy-american-act"> <div> <div class="field-section padding-y-1"> <div> <div class="paragraph paragraph--type--insights-section paragraph--view-mode--default"> <div class="field-type padding-y-1"><div about="/acquisition-insights-type/buy-american-act"> <div class="field-svg-icon padding-y-1"> <img width="40" height="40" alt="Buy American Act" src="/sites/default/files/2023-05/buy_american_icon.svg" /> </div> </div> </div> <div class="field-title padding-y-1">Buy American Statute Resources</div> <div class="field-subsection padding-y-1"> <div> <div class="paragraph paragraph--type--insights-subsection paragraph--view-mode--default"> <div class="field-not-linked-title padding-y-1">Federal Civilian Agencies</div> <div class="field-body padding-y-1"><a href="https://www.fai.gov/tools/Buy-American-and-Trade-Agreements-Decision-Tools">Buy American and Trade Agreements Decision Tools for Supplies</a></div> <div class="clearfix"></div> <div class="field-accordion-title padding-y-1"> <a href="javascript:void()" aria-label="Learn More">Learn More</a></div> <div class="field-items-count padding-y-1">2</div> <div class="field-accordion-body padding-y-1"><a href="https://www.fai.gov/sites/default/files/BA_TAA_DecisionTool_ClauseProvisionSelection/story.html">Clause and Provision Selection Tool</a> <a href="https://www.fai.gov/tools/Buy-American-and-Trade-Agreements-Decision-Tools">Evaluating Foreign Offers Tool</a></div> </div> </div> <div> <div class="paragraph paragraph--type--insights-subsection paragraph--view-mode--default"> <div class="field-not-linked-title padding-y-1">Department of Defense (DoD) Agencies</div> <div class="field-body padding-y-1"><a href="https://media.dau.edu/media/t/1_vvyrixha">Buy American and Balance of Payments Program Course</a></div> <div class="clearfix"></div> <div class="field-accordion-title padding-y-1"> <a href="javascript:void()" aria-label="Learn More">Learn More</a></div> <div class="field-items-count padding-y-1">2</div> <div class="field-accordion-body padding-y-1"><a href="https://icatalog.dau.edu/onlinecatalog/courses.aspx?crs=CON%200270">CON 0270 Buy American and Balance of Payments Program</a> <a href="https://www.dau.edu/tools/t/DoD-Decision-Tool-for-Buy-American">DoD Decision Tool for Buy American</a></div> </div> </div> </div> </div> </div> </div> <div class="node_view"></div> </div> </article> </div> <div class="acquisition-insight acquisition-insight-1" data-key="1" data-type="subtitle" data-subtopic="25.103, 25.202, 25.502, 25.1101" data-subpart="" ><article data-history-node-id="60311" role="article" about="/content/acquisition-insight-2022-01-fardita"> <div> <div class="field-section padding-y-1"> <div> <div class="paragraph paragraph--type--insights-section paragraph--view-mode--default"> <div class="field-type padding-y-1"><div about="/acquisition-insights-type/caac-letter"> <div class="field-svg-icon padding-y-1"> <img width="40" height="40" alt="CAAC Letter" src="/sites/default/files/2023-05/caac_letter_icon.svg" /> </div> </div> </div> <div class="field-title padding-y-1">CAAC Letter 2022-01</div> <div class="field-caac-letter padding-y-1"> <div> <div class="paragraph--type--insights-section"> <div class="paragraph--type--insights-subsection"> <div class="field-linked-title padding-y-1"> <a href="https://www.acquisition.gov/sites/default/files/caac/CAAC-Letter-2022-01-Made-in-America-Nonavailability-Waivers-under-EO-14005-11.16.21.pdf" target="_blank" aria-label="2022-01"> CAAC Letter 2022-01 </a> </div> <div class="field-subtitle padding-y-1"> Nov 16, 2021 </div> <div class="field-body padding-y-1"> <a href="https://www.acquisition.gov/sites/default/files/caac/CAAC-Letter-2022-01-Made-in-America-Nonavailability-Waivers-under-EO-14005-11.16.21.pdf" target="_blank" aria-label="2022-01"> Class Deviation From the Federal Acquisition Regulation (FAR) Regarding Requirements for Nonavailability Determinations Under the Buy American Statute </a> </div> <div class="clearfix"></div> <div class="field-accordion-title padding-y-1"> <a href="javascript:void()" aria-label="Related Agency Class Deviations">Related Agency Class Deviations</a> </div> <div class="field-items-count padding-y-1">8</div> <div class="field-accordion-body padding-y-1" style="display: none;"> <a href="https://www.acquisition.gov/sites/default/files/caac/deviation/Department_of_Commerce_PM_2022-02_FAR_Class_Deviation_MIAO.pdf" target="_blank">Department of Commerce (DOC)</a> <a href="https://www.acquisition.gov/sites/default/files/caac/deviation/DOI-AAAP-0180_v01.pdf" target="_blank">Department of Interior (DOI)</a> <a href="https://www.acquisition.gov/sites/default/files/caac/deviation/DOJ_FAR_Class_Deviation-EO_14005_Implementation_MIA.pdf" target="_blank">Department of Justice (DOJ)</a> <a href="https://www.acquisition.gov/sites/default/files/caac/deviation/HHS_Class_Deviation_2022-01_Made_in_America.pdf" target="_blank">Department of the Health and Human Services (HHS)</a> <a href="https://www.acquisition.gov/sites/default/files/caac/deviation/VA_CAAC_2022-01_deviation-far-20211201.pdf" target="_blank">Department of Veterans Affairs (VA)</a> <a href="https://www.acquisition.gov/sites/default/files/caac/deviation/CD-2022-01.pdf" target="_blank">General Services Administration (GSA)</a> <a href="https://www.acquisition.gov/sites/default/files/caac/deviation/NSF_MIA_FAR_Deviation_Memo_01.13.2022.pdf" target="_blank">National Science Foundation (NSF)</a> <a href="https://www.acquisition.gov/sites/default/files/caac/deviation/OPM_FAR_Deviation_22-02.pdf" target="_blank">Office of Personnel Management (OPM)</a> </div> </div> </div> </div> </div> </div> </div> </div> <div class="node_view"></div> </div> </article> </div> <div class="acquisition-insight acquisition-insight-2" data-key="2" data-type="subtitle" data-subtopic="25.103, 25.202, 25.502, 25.1101" data-subpart="" ><article data-history-node-id="60357" role="article" about="/content/acquisition-insight-2022-01-supplement-1-fardita"> <div> <div class="field-section padding-y-1"> <div> <div class="paragraph paragraph--type--insights-section paragraph--view-mode--default"> <div class="field-type padding-y-1"><div about="/acquisition-insights-type/caac-letter"> <div class="field-svg-icon padding-y-1"> <img width="40" height="40" alt="CAAC Letter" src="/sites/default/files/2023-05/caac_letter_icon.svg" /> </div> </div> </div> <div class="field-title padding-y-1">CAAC Letter 2022-01 Supplement 1</div> <div class="field-caac-letter padding-y-1"> <div> <div class="paragraph--type--insights-section"> <div class="paragraph--type--insights-subsection"> <div class="field-linked-title padding-y-1"> <a href="https://www.acquisition.gov/sites/default/files/caac/CAAC_Letter_2022-01_Supplement_1.pdf" target="_blank" aria-label="2022-01 Supplement 1"> CAAC Letter 2022-01 Supplement 1 </a> </div> <div class="field-subtitle padding-y-1"> Feb 1, 2023 </div> <div class="field-body padding-y-1"> <a href="https://www.acquisition.gov/sites/default/files/caac/CAAC_Letter_2022-01_Supplement_1.pdf" target="_blank" aria-label="2022-01 Supplement 1"> Supplement to the Class Deviation From the Federal Acquisition Regulation (FAR) Regarding Requirements for Nonavailability Determinations Under the Buy American Statute </a> </div> <div class="clearfix"></div> <div class="field-accordion-title padding-y-1"> <a href="javascript:void()" aria-label="Related Agency Class Deviations">Related Agency Class Deviations</a> </div> <div class="field-items-count padding-y-1">1</div> <div class="field-accordion-body 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