Acquisition of supplies
FAR 25.1101 mandates specific solicitation provisions and contract clauses for supply acquisitions based on contract value, product type, and applicable trade agreements, requiring careful compliance by both contracting officers and contractors.
Overview
FAR 25.1101 prescribes the specific solicitation provisions and contract clauses that must be included in federal contracts for the acquisition of supplies, and for services involving the furnishing of supplies, based on contract value, type of product, and applicable trade agreements. It details when to use Buy American, Free Trade Agreement, Trade Agreements, and other related clauses, as well as their alternates, depending on thresholds and exceptions. The section also addresses requirements for duty-free entry and place of manufacture provisions.
Key Rules
- Buy American—Supplies (52.225-1)
- Required for contracts exceeding the micro-purchase threshold but not exceeding $50,000, and for higher-value contracts unless certain exceptions apply. Alternate I is used for specific domestic content thresholds.
- Buy American Certificate (52.225-2)
- Must be included in solicitations containing the Buy American—Supplies clause.
- Buy American—Free Trade Agreements—Israeli Trade Act (52.225-3)
- Applies to contracts for supplies/services within the U.S. valued at $50,000 or more but less than $174,000, with alternates based on value and content thresholds.
- Buy American—Free Trade Agreements—Israeli Trade Act Certificate (52.225-4)
- Included in solicitations with the above clause, with alternates for certain value ranges.
- Trade Agreements (52.225-5)
- Used for contracts at or above $174,000 covered by the WTO GPA, if Buy American restrictions are waived.
- Trade Agreements Certificate (52.225-6)
- Included in solicitations with the Trade Agreements clause.
- Waiver for Civil Aircraft (52.225-7)
- Used for civil aircraft acquisitions under $174,000.
- Duty-Free Entry (52.225-8)
- Required for contracts where supplies may be imported duty-free, based on value or cost savings.
- Place of Manufacture (52.225-18)
- Included in solicitations predominantly for manufactured end products.
Responsibilities
- Contracting Officers: Must determine the correct clauses and alternates to include based on contract value, product type, and applicable exceptions or trade agreements. Responsible for inserting correct domestic content thresholds and modifying clauses as needed.
- Contractors: Must comply with the applicable clauses, provide required certifications, and ensure products meet domestic content requirements.
- Agencies: Ensure oversight of clause application and compliance with trade agreement determinations.
Practical Implications
- This section ensures compliance with domestic preference laws and trade agreements, impacting which products can be offered and under what conditions. Contractors must be vigilant about thresholds, exceptions, and certification requirements. Errors in clause inclusion or certification can lead to compliance issues or contract disputes.