FAR and DFARS › DFARS Part 225

DFARS Part 225: Foreign Acquisition

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

DFARS Part 225 implements DoD-specific policies for acquiring foreign end products and services, including restrictions, prohibitions, and procedures for contracting outside the United States. It matters to contractors because it determines when foreign products can be offered, what countries are eligible, and what clauses must be included in contracts performed abroad.

Key rules

For DoD, a manufactured end product is domestic only if it is manufactured in the United States and meets the domestic content requirement. (225.101)
When evaluating offers of foreign end products, use an evaluation factor of 50 percent instead of the factors specified in FAR 25.106. (225.106)
Do not acquire items covered by the USML or the 600 series of the CCL from any Communist Chinese military company. (225.770-2)
Do not award a contract of $200,000 or more to a firm owned or controlled by a government that is a state sponsor of terrorism. (225.771-2)
Do not award a contract for commercial satellite services to a foreign entity if the award presents an unacceptable risk to national security. (225.772-2)
Use the clause at 252.225-7040 for contractor personnel supporting U.S. Armed Forces deployed outside the United States. (225.371-5)
Use the clause at 252.225-7043 for antiterrorism/force protection policy for defense contractors outside the United States. (225.372-2)
For acquisitions in support of operations in Afghanistan, treat offers from South Caucasus or Central and South Asian states as qualifying country end products. (225.502)

Who does what

Contracting officers

Apply the two-part test to determine if an end product is domestic.
Use the 50 percent evaluation factor for foreign end products.
Do not award contracts to prohibited sources as specified in the part.
Include required solicitation provisions and contract clauses.

Contractors

Comply with prohibitions on acquiring items from certain sources.
Provide required training and support for personnel in designated operational areas.
Ensure compliance with trade agreements and restrictions on foreign products.

Agencies

Follow reporting requirements for end products manufactured outside the United States.
Obtain waivers when necessary for prohibited acquisitions.
Provide guidance and procedures as outlined in the PGI.

In practice

When bidding on DoD contracts, verify that your end products meet the domestic end product definition or qualify under trade agreements.
If performing outside the United States, ensure you comply with clauses on personnel support, antiterrorism, and law of war training.
Check for prohibitions on sources like Communist Chinese military companies or state sponsors of terrorism before proposing.
For contracts in Afghanistan, be aware of special evaluation procedures that treat certain South Asian products as qualifying.

Common pitfalls

Assuming a product manufactured in the U.S. is automatically domestic; it must also meet the domestic content test.
Overlooking the 50 percent evaluation factor for foreign end products, which can make your offer less competitive.
Failing to include required clauses for contracts performed outside the United States, leading to noncompliance.
Not checking if a proposed subcontractor is a prohibited source, such as a Communist Chinese military company.

Written by AI from this part's codified text (2026-10-04); cited sections are checked against the part. A guide, not legal advice: the regulation text, the solicitation and your contract rule.