[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR25.101]

[Page 468-469]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 25_FOREIGN ACQUISITION--Table of Contents
 
                 Subpart 25.1_Buy American Act_Supplies
 
Sec.  25.101  General.

    (a) The Buy American Act restricts the purchase of supplies that are 
not domestic end products. For manufactured end products, the Buy 
American Act uses a two-part test to define a domestic end product.
    (1) The article must be manufactured in the United States; and
    (2) The cost of domestic components must exceed 50 percent of the 
cost of all the components.
    (b) The Buy American Act applies to small business set-asides. A 
manufactured product of a small business concern is a U.S.-made end 
product, but is not a domestic end product unless it

[[Page 469]]

meets the component test in paragraph (a)(2) of this section.
    (c) Exceptions that allow the purchase of a foreign end product are 
listed at 25.103. The unreasonable cost exception is implemented through 
the use of an evaluation factor applied to low foreign offers that are 
not eligible offers. The evaluation factor is not used to provide a 
preference for one foreign offer over another. Evaluation procedures and 
examples are provided in Subpart 25.5.