25.502
Application
FAR 25.502 mandates a structured, preference-driven process for evaluating and awarding supply contracts involving foreign and domestic products, ensuring compliance with Buy American and trade agreement requirements.
Overview
FAR 25.502 outlines the step-by-step process for evaluating offers in supply contracts involving foreign and domestic products, particularly under the Buy American statute, Free Trade Agreements (FTAs), the Israeli Trade Act, and the WTO Government Procurement Agreement (GPA). It provides a structured approach for eliminating unacceptable offers, ranking by price, applying evaluation factors, and determining award decisions based on the origin of end products and applicable trade agreements. The section also addresses tie-breaking procedures between domestic and foreign offers, ensuring compliance with statutory preferences and agency procedures.
Key Rules
- Offer Evaluation Sequence
- Eliminate unacceptable offers (e.g., nonresponsive, debarred, prohibited sources), then rank remaining offers by price, and apply evaluation factors if required.
- WTO GPA Acquisitions
- Only consider U.S.-made or designated country end products unless unavailable; follow specific award and nonavailability procedures.
- Non-WTO GPA Acquisitions (Buy American/FTA/Israeli Trade Act)
- Award to the lowest domestic or eligible offer; if not available, follow prescribed steps for noneligible offers and apply evaluation factors as needed.
- Tie-Breaking Procedures
- Prefer domestic offers in ties with foreign offers; otherwise, resolve ties by drawing lots or as specified for small business concerns.
Responsibilities
- Contracting Officers: Must follow the prescribed evaluation and award sequence, apply appropriate evaluation factors, and document nonavailability determinations.
- Contractors: Ensure offers are compliant, responsive, and clearly identify product origin and eligibility under relevant statutes or agreements.
- Agencies: Oversee adherence to evaluation procedures and maintain impartiality in tie-breaking.
Practical Implications
- This section ensures fair and consistent evaluation of foreign and domestic offers, supporting statutory preferences and trade obligations.
- Contractors must understand eligibility requirements and documentation to avoid disqualification.
- Common pitfalls include misapplying evaluation factors, failing to document nonavailability, or incorrectly resolving ties.