[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: 48CFR25.504-1]

[Page 477-478]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 25_FOREIGN ACQUISITION--Table of Contents
 
         Subpart 25.5_Evaluating Foreign Offers_Supply Contracts
 
Sec.  25.504-1  Buy American Act.

    (a)(1) Example 1.

Offer A.............................     $12,000  Domestic end product,
                                                   small business.
Offer B.............................      11,700  Domestic end product,
                                                   small business.
Offer C.............................      10,000  U.S.-made end product
                                                   (not domestic), small
                                                   business.


    (2) Analysis: This acquisition is for end products for use in the 
United

[[Page 478]]

States and is set aside for small business concerns. The Buy American 
Act applies. Since the acquisition value is less than $25,000 and the 
acquisition is set aside, none of the trade agreements apply. Perform 
the steps in 25.502(a). Offer C is evaluated as a foreign end product 
because it is the product of a small business, but is not a domestic end 
product (see 25.502(c)(4)). Since Offer B is a domestic offer, apply the 
12 percent factor to Offer C (see 25.105(b)(2)). The resulting evaluated 
price of $11,200 remains lower than Offer B. The cost of Offer B is 
therefore unreasonable (see 25.105(c)). Award on Offer C at $10,000 (see 
25.502(c)(4)(i)).
    (b)(1) Example 2.

------------------------------------------------------------------------

------------------------------------------------------------------------
Offer A..........................      $11,000  Domestic end product,
                                                 small business
Offer B..........................      $10,700  Domestic end product,
                                                 small business
Offer C..........................      $10,200  U.S.-made end product
                                                 (not domestic), small
                                                 business
------------------------------------------------------------------------

    (2) Analysis: This acquisition is for end products for use in the 
United States and is set aside for small business concerns. The Buy 
American Act applies. Perform the steps in 25.502(a). Offer C is 
evaluated as a foreign end product because it is the product of a small 
business but is not a domestic end product (see 25.502(c)(4)). After 
applying the 12 percent factor, the evaluated price of Offer C is 
$11,424. Award on Offer B at $10,700 (see 25.502(c)(4)(ii)).

[64 FR 72419, Dec. 27, 1999, as amended at 67 FR 21535, Apr. 30, 2002]