Buy American-Supplies
Contractors must deliver domestic end products that meet increasing U.S. content thresholds, with specific rules for COTS and iron/steel items, unless otherwise specified in the contract.
Overview
FAR 52.225-1, Buy American-Supplies, establishes requirements for contractors to provide domestic end products when supplying goods to the U.S. Government. The clause defines key terms such as domestic end product, component, and COTS (commercially available off-the-shelf) items, and sets out the criteria for determining whether a product qualifies as domestic under the Buy American statute. The regulation includes specific thresholds for domestic content, which increase over time, and provides exceptions for certain COTS items and iron/steel products. Contractors must deliver only domestic end products unless otherwise specified, and may consult with the Contracting Officer regarding exceptions or lists of foreign articles treated as domestic.
Key Rules
- Domestic Content Requirements
- End products must meet specific domestic content thresholds (currently 60%, increasing to 65% in 2024-2028, and 75% from 2029) to qualify as domestic, with special rules for iron and steel products.
- COTS Item Exception
- COTS items are generally exempt from the domestic content test, except for iron and steel products, where only the iron and steel content is tested.
- Offeror and Contractor Obligations
- Contractors must deliver only domestic end products unless foreign end products are specified in the Buy American Certificate.
- Definitions and Calculations
- The clause provides detailed definitions for key terms and outlines how to calculate the cost of components and determine product origin.
Responsibilities
- Contracting Officers: Must provide lists of foreign articles treated as domestic and insert appropriate domestic content percentages when using Alternate I.
- Contractors: Must ensure delivered products meet domestic content requirements, maintain documentation, and specify any foreign end products in their offer.
- Agencies: Oversee compliance and manage exceptions or waivers as applicable.
Practical Implications
- This clause ensures federal procurement supports U.S. manufacturing and supply chains.
- Contractors must carefully track and document the origin and cost of components to ensure compliance.
- Failure to comply can result in contract penalties or disqualification. Common pitfalls include misclassifying COTS items or miscalculating domestic content percentages.