25.1101 Acquisition of supplies
Source: FAR 25.1101 on acquisition.gov
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.
The following provisions and clauses apply to the acquisition of supplies and the acquisition of services involving the furnishing of supplies.
(a)
(1)
(i) Insert the clause at 52.225-1, Buy American-Supplies, in solicitations and contracts with a value exceeding the micro-purchase threshold but not exceeding $50,000; and in solicitations and contracts with a value exceeding $50,000, if none of the clauses prescribed in paragraphs (b) and (c) of this section apply, except if-
(A) The solicitation is restricted to domestic end products in accordance with subpart 6.3;
(B) The acquisition is for supplies for use within the United States and an exception to the Buy American statute applies (e.g., nonavailability, public interest, or information technology that is a commercial product); or
(C) The acquisition is for supplies for use outside the United States.
(ii) The contracting officer shall use the clause with its Alternate I to reflect the domestic content threshold that will apply to the entire period of performance, when the senior procurement executive allows for application of an alternate domestic content test for the contract in accordance with 25.101(d). For contracts that the contracting officer estimates will be awarded in calendar year 2022 or 2023, the contracting officer shall insert “60” in paragraph (1)(ii)(A) of the definition of “domestic end product.” For contracts that the contracting officer estimates will be awarded in calendar year 2024, 2025, 2026, 2027, or 2028, the contracting officer shall insert “65”. For contracts that the contracting officer estimates will be awarded after calendar year 2028 the contracting officer shall insert “75”.
(2) Insert the provision at 52.225-2, Buy American Certificate, in solicitations containing the clause at 52.225-1.
(b)
(1)
(i) Insert the clause at 52.225-3, Buy American-Free Trade Agreements-Israeli Trade Act, in solicitations and contracts if-
(A) The acquisition is for supplies, or for services involving the furnishing of supplies, for use within the United States, and the acquisition value is $50,000; or more, but is less than $174,000;
(B) The acquisition is not for information technology that is a commercial product, using fiscal year 2004 or subsequent fiscal year funds; and
(C) No exception in 25.401 applies. For acquisitions of agencies not subject to the Israeli Trade Act (see 25.406), see agency regulations.
(ii) If the acquisition value is $50,000 or more but is less than $100,000, use the clause with its Alternate II.
(iii) If the acquisition value is $100,000 or more but is less than $105,767, use the clause with its Alternate III.
(iv) The contracting officer shall use the clause with its Alternate IV to reflect the domestic content threshold that will apply to the entire period of performance, when the senior procurement executive allows for application of an alternate domestic content test for the contract in accordance with 25.102(d). For contracts that the contracting officer estimates will be awarded in calendar year 2022 or 2023, the contracting officer shall insert “60” in paragraph (1)(ii)(A) of the definition of “domestic end product.” For contracts that the contracting officer estimates will be awarded in calendar year 2024, 2025, 2026, 2027, or 2028, the contracting officer shall insert “65”. For contracts that the contracting officer estimates will be awarded after calendar year 2028 the contracting officer shall insert “75”.
(2)
(i) Insert the provision at 52.225-4, Buy American-Free Trade Agreements-Israeli Trade Act Certificate, in solicitations containing the clause at 52.225-3.
(ii) If the acquisition value is $50,000 or more but is less than $100,000, use the provision with its Alternate II.
(iii) If the acquisition value is $100,000 or more, but is less than $105,767, use the provision with its Alternate III.
(c)
(1) Insert the clause at 52.225-5, Trade Agreements, in solicitations and contracts valued at $174,000 or more, if the acquisition is covered by the WTO GPA (see subpart 25.4) and the agency has determined that the restrictions of the Buy American statute are not applicable to U.S.-made end products. If the agency has not made such a determination, the contracting officer must follow agency procedures.
(2) Insert the provision at 52.225-6, Trade Agreements Certificate, in solicitations containing the clause at 52.225-5.
(d) Insert the provision at 52.225-7, Waiver of Buy American Statute for Civil Aircraft and Related Articles, in solicitations for civil aircraft and related articles (see 25.407), if the acquisition value is less than $174,000.
(e) Insert the clause at 52.225-8, Duty-Free Entry, in solicitations and contracts for supplies that may be imported into the United States and for which duty-free entry may be obtained in accordance with 25.903(a), if the value of the acquisition-
(1) Exceeds the simplified acquisition threshold; or
(2) Does not exceed the simplified acquisition threshold, but the savings from waiving the duty is anticipated to be more than the administrative cost of waiving the duty. When used for acquisitions that do not exceed the simplified acquisition threshold, the contracting officer may modify paragraphs (c)(1) and (j)(2) of the clause to reduce the dollar figure.
(f) Insert the provision at 52.225-18, Place of Manufacture, in solicitations that are predominantly for the acquisition of manufactured end products (i.e., the estimated value of the manufactured end products exceeds the estimated value of other items to be acquired as a result of the solicitation).