Part 25
Foreign Acquisition
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.