[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: 48CFR25.504-1]



[Page 495-496]

 

            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.







[[Page 496]]



    (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. 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]