[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR25.101]



[Page 485-486]

 

            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 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



[[Page 486]]



procedures and examples are provided in Subpart 25.5.