FAR 25.102—Policy.
Plain-English Summary
FAR 25.102 states the basic Buy American policy for federal acquisitions: for public use inside the United States, agencies are to acquire only domestic end products unless an exception in FAR 25.103 applies. In practice, this section sets the default sourcing rule for supplies and end items purchased by the Government for use in the United States, and it establishes the starting point for evaluating whether a product qualifies as domestic. Its purpose is to favor U.S.-made products in federal procurement, support domestic industry, and ensure contracting decisions follow the statutory and regulatory preference structure. The section is short, but it is foundational because it tells contracting officers and contractors that foreign end products are generally not acceptable unless a listed exception or waiver applies. It also signals that the real work happens in the surrounding Buy American framework, including determining whether an item is a domestic end product and whether an exception under FAR 25.103 permits a foreign product. For contractors, this means supply chain and country-of-origin compliance must be addressed early; for contracting officers, it means the solicitation and award decision must reflect the domestic preference unless an exception is properly documented.
Key Rules
Default domestic-only rule
For acquisitions of items for public use inside the United States, the Government must acquire only domestic end products. This is the baseline policy unless an exception in FAR 25.103 applies.
Applies to public use in U.S.
The policy is tied to acquisitions for public use inside the United States, so the location and intended use of the end product matter. If the acquisition falls within that scope, the domestic preference is triggered.
Exceptions control the outcome
The rule is not absolute; FAR 25.103 may authorize an exception. Contracting officers must check whether a listed exception or waiver permits acquisition of a non-domestic end product.
End product focus
The policy applies to end products, meaning the finished supply being acquired, not every component or raw material. Determining whether the item is domestic requires applying the FAR’s domestic end product definitions and tests.
Responsibilities
Contracting Officer
Apply the domestic preference as the default rule when buying supplies for public use inside the United States, determine whether an exception under FAR 25.103 applies, and ensure the solicitation and award file reflect the correct Buy American analysis.
Contractor
Identify whether offered products are domestic end products, support country-of-origin and manufacturing representations, and alert the Government if a proposed product may be foreign or if an exception is being relied on.
Agency
Structure procurement actions to comply with the domestic preference policy, provide acquisition planning and oversight that support Buy American compliance, and ensure internal procedures align with FAR Part 25 requirements.
Practical Implications
This section creates the default expectation that U.S.-used supplies will be domestic, so contractors should verify sourcing early rather than after proposal submission.
A common pitfall is assuming a product is domestic because it is assembled in the United States; the FAR’s domestic end product test may require more than final assembly.
Contracting officers should not treat the policy as self-executing without checking exceptions in FAR 25.103, since an authorized exception can change the acquisition outcome.
Documentation matters: the file should show how the domestic preference was applied and, if relevant, why an exception was allowed.
Because the rule is brief but foundational, errors often occur when teams overlook related definitions, clauses, or waiver procedures in the broader Buy American framework.
Official Regulatory Text
Except as provided in 25.103 , acquire only domestic end products for public use inside the United States.