FAR 25.1101—Acquisition of supplies.
Plain-English Summary
FAR 25.1101 tells contracting officers which domestic-preference and trade-related provisions and clauses must be included when buying supplies, or services that involve furnishing supplies. It covers the Buy American-Supplies clause and certificate, the Buy American-Free Trade Agreements-Israeli Trade Act clause and certificate, the Trade Agreements clause and certificate, the civil aircraft waiver provision, the Duty-Free Entry clause, and the Place of Manufacture provision. The section also ties clause selection to dollar thresholds, the place of use of the supplies, whether the acquisition is restricted to domestic end products, whether a Buy American exception applies, whether the WTO GPA or other trade agreements apply, and whether the acquisition is for commercial IT funded by FY 2004 or later funds. It further addresses use of alternate clauses and provisions to reflect changing domestic content thresholds over time, including the senior procurement executive’s authorization of an alternate domestic content test. In practice, this section is a clause-selection roadmap: it helps the contracting officer determine which solicitation and contract language must be inserted so the competition, certification, evaluation, and post-award administration all align with the applicable domestic sourcing and trade rules.
Key Rules
Buy American clause for lower values
Insert 52.225-1, Buy American-Supplies, in solicitations and contracts above the micro-purchase threshold up to $50,000, and also above $50,000 when no clause under paragraphs (b) or (c) applies. Do not use it when the solicitation is already restricted to domestic end products, when a Buy American exception applies for supplies used in the United States, or when the supplies are for use outside the United States.
Alternate domestic content thresholds
Use the alternate version of 52.225-1 when the senior procurement executive authorizes an alternate domestic content test under 25.101(d). The clause must reflect the applicable threshold for the entire period of performance, with the required percentage depending on the estimated award year.
Buy American certificate required
When 52.225-1 is included, also insert 52.225-2, Buy American Certificate. The certificate supports the offeror’s representation regarding domestic end products and is part of the solicitation package whenever the Buy American-Supplies clause is used.
FTA/Israeli Trade Act clause for mid-range buys
Insert 52.225-3, Buy American-Free Trade Agreements-Israeli Trade Act, for supplies or services involving supplies used within the United States when the acquisition value is at least $50,000 but less than $174,000, the acquisition is not for commercial IT funded by FY 2004 or later funds, and no exception in 25.401 applies. Use the specified alternates when the value falls within the stated subranges.
Trade Agreements clause for covered higher-value buys
Insert 52.225-5, Trade Agreements, in solicitations and contracts valued at $174,000 or more when the acquisition is covered by the WTO GPA and the agency has determined the Buy American statute does not apply to U.S.-made end products. If the agency has not made that determination, the contracting officer must follow agency procedures. Also include 52.225-6, Trade Agreements Certificate, with that clause.
Civil aircraft waiver provision
Insert 52.225-7, Waiver of Buy American Statute for Civil Aircraft and Related Articles, in solicitations for civil aircraft and related articles when the acquisition value is less than $174,000. This provision addresses the special waiver framework for that category of supplies.
Duty-free entry clause
Insert 52.225-8, Duty-Free Entry, in solicitations and contracts for supplies that may be imported into the United States and qualify for duty-free entry under 25.903(a), when the acquisition exceeds the simplified acquisition threshold or when the expected savings from waiving duty exceed the administrative cost of doing so. For acquisitions at or below the simplified acquisition threshold, the contracting officer may reduce the dollar figure in specified paragraphs.
Place of manufacture provision
Insert 52.225-18, Place of Manufacture, in solicitations that are predominantly for manufactured end products, meaning the estimated value of manufactured end products exceeds the value of other items being acquired under the solicitation. This provision helps identify where the end products are manufactured for domestic-preference purposes.
Responsibilities
Contracting Officer
Determine which clause or provision applies based on acquisition type, value, place of use, funding, and applicable exceptions or trade agreements. Insert the correct clause, certificate, and alternate versions; ensure the domestic content threshold language matches the authorized period of performance; and follow agency procedures when the agency must decide whether the Buy American statute applies or when special trade-agreement rules control.
Senior Procurement Executive
Authorize use of an alternate domestic content test under 25.101(d) or 25.102(d), as applicable, so the contracting officer can use the alternate clause versions reflecting the approved threshold for the contract period.
Agency
Make required determinations regarding whether the Buy American statute applies to U.S.-made end products for Trade Agreements clause usage, and establish procedures where the regulation directs the contracting officer to follow agency procedures. Agencies not subject to the Israeli Trade Act must apply their own regulations.
Offeror/Contractor
Complete the required certificates accurately when the corresponding clause is included, and provide truthful representations regarding domestic end products, trade-agreement eligibility, and place of manufacture. Contractors must also comply with any duty-free entry, domestic content, or trade-agreement requirements incorporated into the contract.
Practical Implications
Clause selection here is threshold-driven, so a small mistake in estimated value can cause the wrong domestic-preference regime to be used. Contracting officers should confirm whether the acquisition is for use inside or outside the United States and whether it is services involving supplies, because those facts change the applicable clause.
The section requires careful coordination between the clause and its certificate. If the solicitation includes 52.225-1, 52.225-3, or 52.225-5, the matching certificate must also be included; omitting the certificate can create evaluation and award problems.
The alternate domestic content thresholds are time-sensitive and must match the expected award year and the authorized alternate test. Using the wrong percentage can invalidate the solicitation language or create post-award compliance issues.
Trade-agreement coverage can displace or modify Buy American treatment, especially for acquisitions at or above $174,000. Contracting officers should verify WTO GPA coverage, agency determinations, and whether the item is commercial IT funded by FY 2004 or later funds before selecting the clause.
Duty-free entry is often overlooked in supply buys involving imports. Failing to include 52.225-8 when it would save money, or failing to adjust the clause for simplified acquisition threshold buys when appropriate, can leave avoidable costs in the contract.
Official Regulatory Text
The following provisions and clauses apply to the acquisition of supplies and the acquisition of services involving the furnishing of supplies. (a) (1) (i) Insert the clause at 52.225-1 , Buy American-Supplies, in solicitations and contracts with a value exceeding the micro-purchase threshold but not exceeding $50,000; and in solicitations and contracts with a value exceeding $50,000, if none of the clauses prescribed in paragraphs (b) and (c) of this section apply, except if- (A) The solicitation is restricted to domestic end products in accordance with subpart 6.3 ; (B) The acquisition is for supplies for use within the United States and an exception to the Buy American statute applies (e.g., nonavailability, public interest, or information technology that is a commercial product); or (C) The acquisition is for supplies for use outside the United States. (ii) The contracting officer shall use the clause with its Alternate I to reflect the domestic content threshold that will apply to the entire period of performance, when the senior procurement executive allows for application of an alternate domestic content test for the contract in accordance with 25.101 (d). For contracts that the contracting officer estimates will be awarded in calendar year 2022 or 2023, the contracting officer shall insert “60” in paragraph (1)(ii)(A) of the definition of “domestic end product.” For contracts that the contracting officer estimates will be awarded in calendar year 2024, 2025, 2026, 2027, or 2028, the contracting officer shall insert “65”. For contracts that the contracting officer estimates will be awarded after calendar year 2028 the contracting officer shall insert “75”. (2) Insert the provision at 52.225-2 , Buy American Certificate, in solicitations containing the clause at 52.225-1 . (b) (1) (i) Insert the clause at 52.225-3 , Buy American-Free Trade Agreements-Israeli Trade Act, in solicitations and contracts if- (A) The acquisition is for supplies, or for services involving the furnishing of supplies, for use within the United States, and the acquisition value is $50,000; or more, but is less than $174,000; (B) The acquisition is not for information technology that is a commercial product, using fiscal year 2004 or subsequent fiscal year funds; and (C) No exception in 25.401 applies. For acquisitions of agencies not subject to the Israeli Trade Act (see 25.406 ), see agency regulations. (ii) If the acquisition value is $50,000 or more but is less than $100,000, use the clause with its Alternate II. (iii) If the acquisition value is $100,000 or more but is less than $105,767, use the clause with its Alternate III. (iv) The contracting officer shall use the clause with its Alternate IV to reflect the domestic content threshold that will apply to the entire period of performance, when the senior procurement executive allows for application of an alternate domestic content test for the contract in accordance with 25.102 (d). For contracts that the contracting officer estimates will be awarded in calendar year 2022 or 2023, the contracting officer shall insert “60” in paragraph (1)(ii)(A) of the definition of “domestic end product.” For contracts that the contracting officer estimates will be awarded in calendar year 2024, 2025, 2026, 2027, or 2028, the contracting officer shall insert “65”. For contracts that the contracting officer estimates will be awarded after calendar year 2028 the contracting officer shall insert “75”. (2) (i) Insert the provision at 52.225-4 , Buy American-Free Trade Agreements-Israeli Trade Act Certificate, in solicitations containing the clause at 52.225-3 . (ii) If the acquisition value is $50,000 or more but is less than $100,000, use the provision with its Alternate II. (iii) If the acquisition value is $100,000 or more, but is less than $105,767, use the provision with its Alternate III. (c) (1) Insert the clause at 52.225-5 , Trade Agreements, in solicitations and contracts valued at $174,000 or more, if the acquisition is covered by the WTO GPA (see subpart 25.4 ) and the agency has determined that the restrictions of the Buy American statute are not applicable to U.S.-made end products. If the agency has not made such a determination, the contracting officer must follow agency procedures. (2) Insert the provision at 52.225-6 , Trade Agreements Certificate, in solicitations containing the clause at 52.225-5 . (d) Insert the provision at 52.225-7 , Waiver of Buy American Statute for Civil Aircraft and Related Articles, in solicitations for civil aircraft and related articles (see 25.407 ), if the acquisition value is less than $174,000. (e) Insert the clause at 52.225-8 , Duty-Free Entry, in solicitations and contracts for supplies that may be imported into the United States and for which duty-free entry may be obtained in accordance with 25.903 (a), if the value of the acquisition- (1) Exceeds the simplified acquisition threshold; or (2) Does not exceed the simplified acquisition threshold, but the savings from waiving the duty is anticipated to be more than the administrative cost of waiving the duty. When used for acquisitions that do not exceed the simplified acquisition threshold, the contracting officer may modify paragraphs (c)(1) and (j)(2) of the clause to reduce the dollar figure. (f) Insert the provision at 52.225-18 , Place of Manufacture, in solicitations that are predominantly for the acquisition of manufactured end products ( i.e. , the estimated value of the manufactured end products exceeds the estimated value of other items to be acquired as a result of the solicitation).