25.001
General
FAR 25.001 establishes when Buy American restrictions apply, how exceptions work, and the tests for determining country of origin in federal acquisitions.
Overview
FAR 25.001 provides the foundational rules for the Buy American statute and its relationship to trade agreements in federal acquisitions. It outlines restrictions on purchasing foreign supplies and construction materials for use within the United States, details exceptions, and explains how country of origin is determined under various statutes and agreements. The section also clarifies when trade agreements override Buy American restrictions and highlights special rules for acquisitions using American Recovery and Reinvestment Act (ARRA) funds.
Key Rules
- Buy American Restrictions
- Purchases for use in the U.S. must favor domestic end products and construction materials, with exceptions for unreasonable cost or other specific circumstances.
- Trade Agreement Exceptions
- Certain acquisitions, based on dollar thresholds and country of origin, are exempt from Buy American restrictions and must treat eligible foreign products equally.
- Country of Origin Tests
- The Buy American statute uses a two-part test (manufacture in the U.S. and domestic content), while trade agreements use the “substantial transformation” test. COTS items have special rules.
- ARRA Funded Projects
- For ARRA-funded construction, materials must be manufactured in the U.S., and iron or steel must be produced domestically.
Responsibilities
- Contracting Officers: Must determine applicability of Buy American or trade agreements, apply correct country of origin tests, and ensure compliance with exceptions and special funding rules.
- Contractors: Must certify and supply compliant products/materials, understand origin requirements, and provide accurate representations.
- Agencies: Oversee compliance, ensure proper application of exceptions, and monitor adherence to funding-specific rules.
Practical Implications
- This section ensures federal spending supports domestic industries unless trade agreements or exceptions apply. Contractors must be vigilant about origin requirements, especially for construction and supply contracts, and stay updated on thresholds and exceptions to avoid compliance issues.