25.1101
Acquisition of supplies
For supply contracts, FAR 25.1101 makes clause selection turn on contract value, place of use, trade-agreement coverage, and exceptions—so contractors must match their certifications and sourcing approach to the exact provision included in the solicitation.
Overview
- FAR 25.1101 prescribes which domestic preference, trade agreement, duty, and place-of-manufacture provisions and clauses must be included in solicitations and contracts for supplies and services involving the furnishing of supplies.
- Its purpose is to help contracting officers select the correct clause based on dollar value, place of use, trade agreement coverage, and applicable exceptions to the Buy American statute.
Key Rules
- Buy American-Supplies (52.225-1) and Certificate (52.225-2)
- Use 52.225-1 for acquisitions above the micro-purchase threshold up to $50,000, and also above $50,000 when the trade-agreement clauses in paragraphs (b) and (c) do not apply, unless the solicitation is restricted to domestic end products, an exception to the Buy American statute applies for U.S. use, or the supplies are for use outside the United States.
- Include 52.225-2 whenever 52.225-1 is used. Alternate I may be required to reflect the applicable domestic content threshold: 60% for awards in 2022-2023, 65% for 2024-2028, and 75% after 2028.
- Buy American-Free Trade Agreements-Israeli Trade Act (52.225-3) and Certificate (52.225-4)
- Use 52.225-3 for acquisitions for use within the United States valued at $50,000 or more but less than $174,000, when the acquisition is not for commercial IT using FY 2004 or later funds and no FAR 25.401 exception applies.
- Use Alternate II for $50,000 to less than $100,000, Alternate III for $100,000 to less than $105,767, and Alternate IV when an approved alternate domestic content threshold applies. Include 52.225-4, with matching alternates where required.
- Trade Agreements (52.225-5) and Certificate (52.225-6)
- Use 52.225-5 for acquisitions valued at $174,000 or more when covered by the WTO GPA and the agency has determined that Buy American restrictions do not apply to U.S.-made end products.
- Include 52.225-6 whenever 52.225-5 is used.
- Other Specialized Provisions and Clauses
- Use 52.225-7 for solicitations for civil aircraft and related articles valued at less than $174,000.
- Use 52.225-8, Duty-Free Entry, when supplies may be imported into the United States and duty-free entry may be available, generally when the acquisition exceeds the simplified acquisition threshold, or below that threshold if expected duty savings exceed administrative costs.
- Use 52.225-18, Place of Manufacture, in solicitations predominantly for manufactured end products.
Responsibilities
- Contracting Officers: determine the correct clause and provision based on value, end use location, trade agreement coverage, exceptions, and whether alternates must be inserted.
- Contractors: complete required certifications accurately, identify place of manufacture when required, and comply with domestic preference or trade agreement sourcing rules incorporated into the solicitation or contract.
- Agencies: make or follow determinations regarding WTO GPA coverage, Buy American applicability, Israeli Trade Act applicability, and approved alternate domestic content thresholds.
Practical Implications
- This section matters because the wrong clause can misstate sourcing obligations, invalidate certifications, or create protest and compliance risk.
- Contractors should pay close attention to value thresholds, where supplies will be used, and whether the procurement is for manufactured end products, civil aircraft, or imported supplies.
- Common pitfalls include using the wrong certificate alternate, overlooking exceptions for commercial IT or foreign use, and failing to align offers with the domestic content threshold stated in the solicitation.