[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: 48CFR25.105]

[Page 470-471]
 
            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.  25.105  Determining reasonableness of cost.

    (a) The contracting officer--
    (1) Must use the evaluation factors in paragraph (b) of this section 
unless the head of the agency makes a written determination that the use 
of higher factors is more appropriate. If the determination applies to 
all agency acquisitions, the agency evaluation factors must be published 
in agency regulations; and
    (2) Must not apply evaluation factors to offers of eligible products 
if the acquisition is subject to a trade agreement under Subpart 25.4.
    (b) If there is a domestic offer that is not the low offer, and the 
restrictions of the Buy American Act apply to the low offer, the 
contracting officer must determine the reasonableness of the

[[Page 471]]

cost of the domestic offer by adding to the price of the low offer, 
inclusive of duty--
    (1) 6 percent, if the lowest domestic offer is from a large business 
concern; or
    (2) 12 percent, if the lowest domestic offer is from a small 
business concern. The contracting officer must use this factor, or 
another factor established in agency regulations, in small business set-
asides if the low offer is from a small business concern offering the 
product of a small business concern that is not a domestic end product 
(see Subpart 19.5).
    (c) The price of the domestic offer is reasonable if it does not 
exceed the evaluated price of the low offer after addition of the 
appropriate evaluation factor in accordance with paragraph (a) or (b) of 
this section. (See evaluation procedures at Subpart 25.5.)