Part 25 Foreign Acquisition
Source: FAR 25 on acquisition.gov
FAR Part 25 governs how federal agencies acquire foreign supplies and services, balancing domestic preference laws with international trade obligations and security restrictions.
Overview
FAR Part 25, Foreign Acquisition, establishes the policies and procedures for acquiring supplies and services from foreign sources. It covers the application of the Buy American statute, trade agreements, restrictions on certain foreign sources, and requirements for contracts performed outside the United States. The part is organized into subparts addressing specific topics such as Buy American requirements for supplies and construction materials, evaluation of foreign offers, trade agreements, prohibited sources, customs and duties, and solicitation provisions. The regulation aims to ensure compliance with U.S. laws and international agreements while balancing the need for competition and national security.
Key Rules
- Buy American Requirements
- Outlines when U.S.-made goods and construction materials must be preferred and details exceptions.
- Trade Agreements
- Specifies how international agreements affect procurement and when foreign offers must be considered.
- Prohibited Sources
- Identifies countries and entities from which procurement is restricted or prohibited.
- Contracts Outside the U.S.
- Sets requirements for contracts performed abroad, including personnel and security considerations.
- Customs and Duties
- Addresses exemptions and procedures for customs and duties on imported goods for government use.
Responsibilities
- Contracting Officers: Must apply the correct statutory and regulatory requirements, evaluate offers accordingly, and ensure compliance with all relevant restrictions and exceptions.
- Contractors: Must certify compliance with Buy American and trade agreement provisions, avoid prohibited sources, and provide required documentation.
- Agencies: Oversee compliance, maintain records, and report on foreign acquisition activities as required.
Practical Implications
- FAR Part 25 ensures that federal acquisitions comply with domestic preference laws and international obligations, impacting sourcing decisions and offer evaluations.
- Contractors must be vigilant about sourcing, certifications, and compliance with restrictions to avoid penalties or disqualification.
- Common pitfalls include misunderstanding applicability of exceptions, failing to properly evaluate foreign offers, or inadvertently sourcing from prohibited entities.
25.002 Applicability of subparts.
Subpart 25.1 - Buy American-Supplies
25.105 Critical components and critical items.
25.106 Determining reasonableness of cost.
Subpart 25.2 - Buy American-Construction Materials
25.203 Preaward determinations.
25.204 Evaluating offers of foreign construction material.
25.205 Postaward determinations.
Subpart 25.3 - Contracts Performed Outside the United States
25.302 Contractors performing private security functions outside the United States.
Subpart 25.4 - Trade Agreements
25.403 World Trade Organization Government Procurement Agreement and Free Trade Agreements.
25.404 Least developed countries.
25.405 Caribbean Basin Trade Initiative.
25.407 Agreement on Trade in Civil Aircraft.
Subpart 25.5 - Evaluating Foreign Offers-Supply Contracts
25.504-1 Buy American statute.
25.504-2 WTO GPA/Caribbean Basin Trade Initiative/FTAs.
25.504-3 FTA/Israeli Trade Act.
Subpart 25.6 - American Recovery and Reinvestment Act-Buy American statute-Construction Materials
25.602-1 Section 1605 of the Recovery Act.
25.605 Evaluating offers of foreign construction material.
25.606 Postaward determinations.
Subpart 25.7 - Prohibited Sources
25.703-3 Prohibition on contracting with entities that export sensitive technology to Iran.
Subpart 25.8 - Other International Agreements and Coordination
Subpart 25.9 - Customs and Duties
Subpart 25.10 - Additional Foreign Acquisition Regulations
25.1001 Waiver of right to examination of records.
25.1002 Use of foreign currency.
25.1003 Tax on certain foreign procurements.
Subpart 25.11 - Solicitation Provisions and Contract Clauses
25.1101 Acquisition of supplies.