FAR 23.107-2—Biobased products.
Plain-English Summary
FAR 23.107-2 explains how the federal biobased products preference works under the USDA BioPreferred Program and when agencies must apply it. It covers the legal authorities behind the program, the program’s purpose, when the rule applies based on USDA-designated product categories and dollar thresholds, and when micro-purchases count toward the threshold. It also describes the requirement for agencies to maintain an affirmative procurement program, including preference policies, promotion, certification and reporting procedures, and annual review. In addition, it sets out the purchasing procedures agencies must follow once the threshold is met, including buying conforming products to the maximum extent practicable, using specifications or commercial descriptions, and identifying the highest practicable biobased content or USDA minimum content standards. The section also addresses the contracting officer’s ability to request biobased-content information, the treatment of products from designated countries, and where to find USDA and agency guidance. In practice, this section tells agencies and contracting personnel when biobased purchasing is mandatory, how to build the internal program that supports it, and how to document and source compliant products.
Key Rules
USDA BioPreferred authority
The biobased products preference is grounded in the Farm Security and Rural Investment Act of 2002 and the Energy Policy Act of 2005, and is implemented through USDA regulations. The rule exists to increase federal purchase and use of biobased products as defined in FAR 2.101.
Threshold-based applicability
The section applies only to contract actions involving a biobased product in a USDA-designated product category when the individual purchase exceeds $10,000 or when the aggregate amount paid for multiple purchases of the product, or a functionally equivalent product, in the prior fiscal year was $10,000 or more. Micro-purchases count toward the aggregate total, but agencies do not have to track them in certain circumstances.
Micro-purchase tracking exception
Agencies do not need to track micro-purchases for threshold purposes if they already anticipate that aggregate spending will exceed $10,000 or if they intend to establish or continue an affirmative procurement program in the next fiscal year. This reduces administrative burden where the program clearly applies.
Mandatory affirmative procurement program
If agency purchases of covered biobased products exceed the threshold, the agency must establish an affirmative procurement program. The program must include a biobased products preference program, promotion of that preference, preaward certification and reporting procedures, and annual review and monitoring of effectiveness.
Program ownership and updates
Technical or requirements personnel and procurement personnel are responsible for preparing, implementing, and monitoring the affirmative procurement program. Agencies also get one year to revise their procurement programs after USDA updates designated product categories.
Purchase conforming products to maximum extent practicable
Once a product is included in a USDA-designated category, agencies must buy conforming products to the maximum extent practicable unless a justification, exception, or exemption applies under the related FAR provisions. The preference is not absolute, but deviations must be supported under the applicable exceptions.
Specification and content requirements
Agencies may use their own specifications or commercial product descriptions, but the contract should require either the highest percentage of biobased material practicable or USDA’s recommended minimum content standards. Contracting officers may also request biobased-content information or related standards from offerors or contractors.
Designated country treatment
Products from designated countries are eligible for the biobased preference if they meet the biobased-product definition except for the domestic-origin requirement for renewable agricultural or forestry materials, and if they otherwise satisfy the program’s requirements. This aligns the preference with trade agreement treatment where applicable.
Reference sources
USDA’s BioPreferred website provides the current list of designated product categories and minimum content standards, and agencies should also consult their own affirmative procurement program for agency-specific procedures and guidance.
Responsibilities
Agency
Establish an affirmative procurement program when the threshold is exceeded; include the required preference, promotion, certification/reporting, and annual review components; revise the program within one year after USDA updates designated categories; and ensure purchases follow the biobased preference rules.
Technical or Requirements Personnel
Help prepare, implement, and monitor the agency’s affirmative procurement program by identifying applicable biobased requirements, product categories, and technical content standards.
Procurement Personnel
Implement the preference in solicitations and awards, support the affirmative procurement program, and monitor compliance with biobased purchasing requirements.
Contracting Officer
Apply the biobased preference when applicable, request biobased-content or related standards information when needed, include appropriate contract language, and ensure exceptions, justifications, or exemptions are properly handled.
Offerors and Contractors
Provide products that meet USDA-designated category requirements and any stated biobased-content standard, certify compliance when required, and report biobased products used in service and construction contract performance when applicable.
USDA
Maintain the BioPreferred Program, designate product categories, publish minimum content standards, and update the program information used by agencies and contractors.
Practical Implications
This rule matters most when an agency buys recurring supplies or services that involve covered biobased products, because prior-year spending can trigger the program even if a single purchase is small.
A common pitfall is overlooking functionally equivalent products when calculating the $10,000 aggregate threshold; agencies must look at the broader category of purchases, not just identical items.
Another frequent issue is failing to update internal procurement procedures after USDA changes designated categories; agencies have only one year to revise their programs.
Contracting officers should not assume that a biobased preference means any product labeled “green” qualifies; the product must be in a USDA-designated category and meet the applicable content standard or other stated requirement.
Documentation matters: if an agency does not buy the preferred biobased product, it should be able to show that a justification, exception, or exemption applies under the related FAR provisions.
Official Regulatory Text
(a) Authorities. (1) The Farm Security and Rural Investment Act of 2002 (FSRIA), 7 U.S.C. 8102 , as implemented at 7 CFR part 3201 . (2) The Energy Policy Act of 2005, Public Law 109-58 . (b) USDA BioPreferred ® Program. The BioPreferred Program was created in the 2002 Farm Bill and is managed by the USDA. The goal of the BioPreferred Program is to increase the purchase and use of biobased products (as defined in 2.101 ) by agencies. (c) Applicability. (1) This section applies to contract actions involving a biobased product in a USDA-designated product category if— (i) The price of the biobased product exceeds $10,000; or (ii) The aggregate amount paid for multiple purchases of the biobased product, or for a functionally equivalent product, in the preceding fiscal year was $10,000 or more. (2) While micro-purchases are included in determining the aggregate amount paid under paragraph (c)(1) of this section, it is not necessary for an agency to track micro-purchases when— (i) The agency anticipates the aggregate amount paid will exceed $10,000; or (ii) The agency intends to establish or continue an affirmative procurement program in the following fiscal year. (d) Agency affirmative procurement program. An agency shall establish an affirmative procurement program for biobased products in USDA-designated product categories if the agency's purchases of such products exceed the threshold set forth in paragraph (c)(1) of this section. (1) Agency affirmative procurement programs must include— (i) A biobased products preference program; (ii) A program to promote the biobased products preference program; (iii) A program for requiring preaward certification that products meet USDA recommendations (see 52.223-1 , Biobased Product Certification) and reporting on biobased products used in performance of contracts (see 52.223-2 , Reporting of Biobased Products Under Service and Construction Contracts); and (iv) Annual review and monitoring of the effectiveness of the program. (2) Technical or requirements personnel and procurement personnel are responsible for the preparation, implementation, and monitoring of affirmative procurement programs. (3) Agencies have a period of 1 year to revise their procurement program(s) after USDA updates any USDA-designated product categories. (e) Procedures. The following procedures apply when the thresholds set forth in paragraph (c)(1) of this section are exceeded. (1) Once a biobased product is included in a USDA-designated product category, agencies shall purchase conforming products to the maximum extent practicable in accordance with 23.104 (a), unless a justification, exception, or exemption applies (see 23.104 (a), 23.105 , and 23.106 , respectively). (2) Agencies may use their own specifications or commercial product descriptions when procuring biobased products; however, the contract should specify that the biobased product is composed of the— (i) Highest percentage of biobased material practicable; or (ii) USDA's recommended minimum contents standards. (3) When acquiring biobased products, the contracting officer may request information or data on such products, including biobased content or related standards of the products (see 11.301 (c)). (4) Agencies shall treat as eligible for the preference for biobased products, products from designated countries, as defined in 25.003 , provided that those products— (i) Meet the criteria for the definition of biobased product, except that the products need not meet the requirement that renewable agricultural materials or forestry materials in such product must be domestic; and (ii) Otherwise meet all requirements for participation in the preference program. (f) Resources. (1) For information on USDA-designated product categories and minimum content standards for biobased products, see https://www.biopreferred.gov . (2) Contracting officers should also consult their agency's affirmative procurement program for agency-specific guidance.