FAR 25—Foreign Acquisition

Scope of part.

FAR 25.000 states the scope of FAR Part 25, which is the part of the FAR that governs foreign acquisition issues. It covers two main subject areas: the acquisition of foreign supplies, services, and construction materials, and contracts performed outside the United States. The section also explains that Part 25 implements 41 U.S.C. chapter 83, including Buy American requirements, trade agreements, and other related laws and regulations. In practice, this means Part 25 is the starting point for determining whether special sourcing, country-of-origin, trade agreement, or overseas performance rules apply to a procurement. For contracting officers, it signals that acquisitions involving foreign products or overseas performance require careful legal and regulatory review. For contractors, it means that where goods come from and where work is performed can affect eligibility, evaluation, pricing, and compliance obligations.

General.

FAR 25.001 is the gateway provision for the Buy American and trade agreements framework. It explains what the Buy American statute does: it restricts the purchase of non-domestic supplies for use in the United States and generally requires domestic construction materials in U.S. construction contracts, subject to exceptions and waiver rules in subparts 25.1 and 25.2. It also explains when those Buy American restrictions do not apply because an acquisition is covered by a trade agreement under subpart 25.4, in which case qualifying foreign end products and construction materials from designated countries receive nondiscriminatory evaluation treatment. The section further distinguishes three different country-of-origin concepts that contractors and contracting officers often confuse: the Buy American domestic end product/domestic construction material test, the trade agreements substantial transformation test, and the simple place-of-manufacture representation at FAR 52.225-18. Finally, it notes a special rule for ARRA-funded construction materials, where domestic manufacture is required but component origin generally is not, except for iron or steel, which must be produced in the United States if the material is wholly or predominantly iron or steel. In practice, this section tells the reader which sourcing regime applies, which definition to use, and why the answer can change based on dollar value, funding source, product type, and whether the acquisition is covered by a trade agreement.

Subpart 25.1

Subpart 25.2

Applicability of subparts.

FAR 25.002 is the roadmap for when each subpart of FAR Part 25 applies. It does not itself impose the substantive buying rules; instead, it tells contracting officers, contractors, and acquisition teams which international procurement topics to consult based on what is being bought, where performance will occur, and whether the acquisition involves supplies, construction materials, or services. The section points readers to the major subject areas in Part 25, including Buy American for supplies, Buy American for construction materials, contracts performed outside the United States, trade agreements, evaluating foreign offers for supply contracts, the American Recovery and Reinvestment Act Buy American requirements for construction materials, prohibited sources, other international agreements and coordination, customs and duties, additional foreign acquisition regulations, and the solicitation provisions and contract clauses that implement these rules. It also notes that Subpart 25.5 provides comprehensive procedures and examples for evaluating foreign offers. In practice, this section helps acquisition personnel quickly determine which international procurement rules are in play so they can apply the correct statutory and regulatory requirements, include the right clauses, and avoid using the wrong domestic preference or trade agreement framework.

Definitions.

FAR 25.003 is the definitions section for FAR Part 25, which governs foreign acquisition, trade agreements, and related domestic preference rules. It defines the key terms that drive Buy American and trade-agreement determinations, including Caribbean Basin country, Caribbean Basin country end product, civil aircraft and related articles, component, construction material, cost of components, critical component, critical item, and designated country. These definitions matter because they determine whether an item qualifies for a preference, whether an exception applies, how to calculate content or component costs, and whether a procurement is subject to special treatment under trade agreements or domestic source restrictions. In practice, contracting officers use these definitions to draft solicitations, evaluate offers, apply evaluation preferences, and document compliance, while contractors use them to determine product eligibility and price their offers correctly. The section is foundational because many FAR Part 25 requirements turn on these terms, and a small definitional mistake can change the outcome of a competition or a compliance determination.

Subpart 25.3

Subpart 25.4

Subpart 25.5

Subpart 25.6

Subpart 25.7

Subpart 25.8

Subpart 25.9