[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: 48CFR25.105]



[Page 488]

 

            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 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.)