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e-CFR data is current as of January 15, 2021

Title 48Chapter 1Subchapter DPart 25Subpart 25.5 → §25.504-1


Title 48: Federal Acquisition Regulations System
PART 25—FOREIGN ACQUISITION
Subpart 25.5—Evaluating Foreign Offers—Supply Contracts


25.504-1   Buy American statute.

(a)(1) Example 1.

Offer A$12,000Domestic end product, small business.
Offer B11,700Domestic end product, small business.
Offer C10,000U.S.-made end product (not domestic), small business.

(2) Analysis: This acquisition is for end products for use in the United States and is set aside for small business concerns. The Buy American statute applies. Since the acquisition value is less than $25,000 and the acquisition is set aside, none of the trade agreements apply. Perform the steps in 25.502(a). Offer C is evaluated as a foreign end product because it is the product of a small business, but is not a domestic end product (see 25.502(c)(4)). Since Offer B is a domestic offer, apply the 12 percent factor to Offer C (see 25.105(b)(2)). The resulting evaluated price of $11,200 remains lower than Offer B. The cost of Offer B is therefore unreasonable (see 25.105(c)). Award on Offer C at $10,000 (see 25.502(c)(4)(i)).

(b)(1) Example 2.

Offer A$11,000Domestic end product, small business
Offer B$10,700Domestic end product, small business
Offer C$10,200U.S.-made end product (not domestic), small business

(2) Analysis: This acquisition is for end products for use in the United States and is set aside for small business concerns. The Buy American statute applies. Perform the steps in 25.502(a). Offer C is evaluated as a foreign end product because it is the product of a small business but is not a domestic end product (see 25.502(c)(4)). After applying the 12 percent factor, the evaluated price of Offer C is $11,424. Award on Offer B at $10,700 (see 25.502(c)(4)(ii)).

[64 FR 72419, Dec. 27, 1999, as amended at 67 FR 21535, Apr. 30, 2002; 79 FR 24209, Apr. 29, 2014]

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