FAR 25.504-1—Buy American statute.

Buy American applies here

For end products to be used in the United States, the Buy American statute applies unless an exception or trade agreement rule removes it. In the examples, the acquisitions are small-business set-asides and under the stated threshold, so the trade agreements do not apply.

Use FAR 25.502(a) first

The evaluation must begin with the steps in FAR 25.502(a). That means the contracting officer first identifies which offers are domestic end products and which are not, then applies the required evaluation treatment to non-domestic offers.

Small-business U.S.-made items may be foreign for evaluation

A product made by a small business can still be treated as a foreign end product if it is not a domestic end product under the Buy American definition. The examples show that these offers are evaluated as foreign even though the offeror is a small business.

Apply the 30 percent factor

Non-domestic offers are increased by the 30 percent evaluation factor under FAR 25.106(b)(2) when comparing prices. This can make a lower-priced non-domestic offer lose to a higher-priced domestic offer.

Determine whether domestic price is unreasonable

If the evaluated price of a non-domestic offer remains lower than the domestic offer, the domestic offer may be considered unreasonable under FAR 25.106(b)(1)(ii). In that case, award may go to the non-domestic offer if the rules allow it.

U.S.-made but not domestic can still win

A U.S.-made end product that is not domestic may still receive award if, after evaluation, it remains the lowest acceptable offer and meets the applicable small-business set-aside rules. The examples show award going to such an offer when it stays below the domestic offer after the adjustment.

Domestic content matters

The examples distinguish between U.S.-made end products that exceed 55 percent domestic content and those that do not. An offer exceeding the domestic-content threshold is treated as a domestic offer for evaluation purposes, while one below the threshold is treated as foreign.

Contracting Officer

Identify whether the acquisition is for end products for use in the United States, determine whether the Buy American statute and any trade agreement exceptions apply, and follow the evaluation steps in FAR 25.502(a). The contracting officer must apply the 30 percent factor to non-domestic offers, decide whether a domestic offer is unreasonable, and make award consistent with the small-business set-aside and Buy American rules.

Offeror / Contractor

Represent accurately whether the offered product is a domestic end product, a U.S.-made end product, or otherwise non-domestic, and ensure the domestic-content information is correct. Small-business offerors must understand that being a small business does not automatically make a product domestic for Buy American evaluation purposes.

Agency

Structure the acquisition correctly as a small-business set-aside when applicable, ensure the solicitation and evaluation method reflect the Buy American statute and related FAR provisions, and support contracting officers in applying the proper thresholds and exceptions.

Source Selection / Evaluation Team

Evaluate offers using the required domestic-preference framework, apply the price adjustment correctly, and document the comparison results so the award decision can be justified under the cited FAR provisions.