FAR 25.504-1 — Buy American statute

Regulatory text. Not legal advice.

(a)

(a)(1) Example 1.

(2) Analysis. This 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 acquisition value is less than $50, 000 an d t h e a c q u i s i t i o ni sse t a s i d e, n o n eo f t h e t r a d e a g ree m e n t s a ppl y . P er f or m t h es t e p s in [[F A R 25.502∣ F A R 25.502 (a)]] . O ff er C i so f 50 p erce n t d o m es t i cco n t e n t, t h ere f ore O ff er C i se v a l u a t e d a s a f ore i g n e n d p ro d u c t, b ec a u se i t i s t h e p ro d u c t o f a s ma ll b u s in ess b u t i s n o t a d o m es t i ce n d p ro d u c t (_{s} e e_{[} [F A R 25.502∣ F A R 25.502 (c) (4)]]) . S in ce O ff er B i s a d o m es t i co ff er, a ppl y t h e 30 p erce n t f a c t or t o O ff er C (_{s} e e_{[} [F A R 25.106∣ F A R 25.106 (b) (2)]]) . T h eres u lt in g e v a l u a t e d p r i ceo f$ 13,130 remains lower than Offer B. The cost of Offer B is therefore unreasonable (see FAR 25.106(b)(1)(ii)). The FAR 25.106(b)(2) procedures do not apply. Award on Offer C at $10,100 (see FAR 25.502(c)(4)(i)).

(b)

(b)(1) Example 2.

(2) Analysis: This 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 FAR 25.502(a). Offer C is evaluated as a foreign end product because it is the product of a small business but is not a domestic end product (see FAR 25.502(c)(4)). After applying the 30 percent factor, the evaluated price of Offer C is $13, 260. A w a r d o n O ff er B a t$ 10,700 (see FAR 25.502(c)(4)(ii)).

(c)

(c)(1) Example 3.

(2) Analysis. This 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 acquisition value is less than $50, 000 an d t h e a c q u i s i t i o ni sse t a s i d e, n o n eo f t h e t r a d e a g ree m e n t s a ppl y . P er f or m t h es t e p s in [[F A R 25.502∣ F A R 25.502 (a)]] . O ff ers B an d C a re ini t ia ll ye v a l u a t e d a s f ore i g n e n d p ro d u c t s, b ec a u se t h ey a re t h e p ro d u c t so f s ma ll b u s in esses b u t a re n o t d o m es t i ce n d p ro d u c t s (_{s} e e_{[} [F A R 25.502∣ F A R 25.502 (c) (4)]]) . O ff er C i s t h e l o w o ff er . A f t er a ppl y in g t h e 30 p erce n t f a c t or, t h ee v a l u a t e d p r i ceo f O ff er C i s$ 13,130. The resulting evaluated price of $13, 130 re main s l o w er t han O ff er A . T h ecos t o f O ff er A i s t h ere f ore u n re a so nab l e . O ff er B i s t h e n t re a t e d a s a d o m es t i co ff er, b ec a u se i t i s f or a U . S . - ma d ee n d p ro d u c tt ha t e x cee d s 55 p erce n t d o m es t i cco n t e n t (_{s} e e_{[} [F A R 25.106∣ F A R 25.106 (b) (2)]]) . O ff er B i s d e t er min e d re a so nab l e b ec a u se i t i s l o w er t han t h e$ 13,130 evaluated price of Offer C. Award on Offer B at $12,500.

Citation history: [64 FR 72419, Dec. 27, 1999, as amended at 67 FR 21535, Apr. 30, 2002; 79 FR 24209, Apr. 29, 2014; 86 FR 6187, Jan. 15, 2021; 87 FR 12793, Mar. 7, 2022; 87 FR 73892, Dec. 1, 2022]

Source: eCFR • Pulled 2026-04-16

Buy American statute

FAR 25.504-1 — Buy American statute

(a)

(b)

(c)

Graph View

Table of Contents