FAR and DFARS › DFARS Part 225: Foreign Acquisition › Subpart 225.75
DFARS 225.7503 Contract clauses.
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
This section tells contracting officers which Balance of Payments Program clause to include in solicitations and contracts for construction performed outside the United States. The choice of clause and alternate depends on the estimated contract value, whether the work supports operations in Afghanistan, and whether an alternate domestic content threshold applies. It matters to contractors because it determines which construction-material restrictions and trade-agreement terms will appear in their contract.
Applies to: Solicitations and contracts for construction performed outside the United States, including acquisitions of commercial products or commercial components
Key terms: Balance of Payments Program · Construction Material · simplified acquisition threshold · commercial products · commercial components
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
Unless the entire acquisition is exempt from the Balance of Payments Program—
(a) Use the basic or an alternate of the clause at 252.225-7044, Balance of Payments Program—Construction Material, in solicitations and contracts for construction to be performed outside the United States, including acquisitions of commercial products or commercial components, with an estimated value greater than the simplified acquisition threshold but less than $6,708,000.
(1) Use the basic clause unless the acquisition is in support of operations in Afghanistan.
(2) Use the alternate I clause if the acquisition is in support of operations in Afghanistan.
(3) Use the alternate II clause in lieu of the basic clause if an alternate domestic content threshold will apply to the entire period of performance as approved by the senior procurement executive (see 225.101(d)), unless the acquisition is in support of operations in Afghanistan.
(4) Use the alternate III clause in lieu of the alternate I clause if—
(i) The acquisition is in support of operations in Afghanistan; and
(ii) An alternate domestic content threshold will apply to the entire period of performance as approved by the senior procurement executive (see 225.101(d)).
(b) Use the basic or an alternate of the clause at 252.225-7045, Balance of Payments Program—Construction Material Under Trade Agreements, in solicitations and contracts for construction to be performed outside the United States with an estimated value of $6,708,000 or more, including acquisitions of commercial products or commercial components.
(1) Use the basic clause in solicitations and contracts with an estimated value of $13,296,489 or more, unless the acquisition is in support of operations in Afghanistan.
(2) Use the alternate I clause in solicitations and contracts with an estimated value of $6,708,000 or more, but less than $13,296,489 unless the acquisition is in support of operations in Afghanistan.
(3) Use the alternate II clause in solicitations and contracts with an estimated value of $13,296,489 or more and is in support of operations in Afghanistan.
(4) Use the alternate III clause in solicitations and contracts with an estimated value of $6,708,000 or more, but less than $13,296,489, and is in support of operations in Afghanistan.
(5) Use the alternate IV clause in lieu of the basic clause in solicitations and contracts, unless the acquisition is in support of operations in Afghanistan, when—
(i) The estimated value is $13,296,489 or more; and
(ii) An alternate domestic content threshold will apply to the entire period of performance as approved by the senior procurement executive (see 225.101(d)).
(6) Use the alternate V clause in lieu of the alternate I clause in solicitations and contracts, unless the acquisition is in support of operations in Afghanistan, when—
(i) The estimated value is $6,708,000 or more, but less than $13,296,489; and
(ii) An alternate domestic content threshold will apply to the entire period of performance as approved by the senior procurement executive (see 225.101(d)).
(7) Use the alternate VI clause in lieu of the alternate II clause in solicitations and contracts when—
(i) The estimated value is $13,296,489 or more;
(ii) The acquisition is in support of operations in Afghanistan; and
(iii) An alternate domestic content threshold will apply to the entire period of performance as approved by the senior procurement executive (see 225.101(d)).
(8) Use the alternate VII clause in lieu of the alternate III clause in solicitations and contracts when—
(i) The estimated value is $6,708,000 or more but less than $13,296,489;
(ii) The acquisition is in support of operations in Afghanistan; and
(iii) An alternate domestic content threshold will apply to the entire period of performance as approved by the senior procurement executive (see 225.101(d)).
Sections it refers to
- 252.225-7044 Balance of Payments Program—Construction Material.
- 225.101 General.
- 252.225-7045 Balance of Payments Program—Construction Material Under Trade Agreements.
Sections that refer to it
- 225.7704-3 Solicitation provisions and contract clauses.
- 252.225-7044 Balance of Payments Program—Construction Material.
- 252.225-7045 Balance of Payments Program—Construction Material Under Trade Agreements.
← 225.7502 Procedures. · 225.7601 Restriction. →
Rule changes for DFARS Part 225
- Defense Federal Acquisition Regulation Supplement: Modifications to Printed Circuit Board Acquisition Restrictions (DFARS Case 2022-D011) ↗ · proposed 2026-07-02 · comments due 2026-08-31
- Defense Federal Acquisition Regulation Supplement: Small Purchase Exception for the Acquisition of U.S. Flags (DFARS Case 2024-D013) ↗ · proposed 2026-06-25 · comments due 2026-08-24
- Defense Federal Acquisition Regulation Supplement: Inflation Adjustment of Acquisition-Related Thresholds (DFARS Case 2024-D002) ↗ · final rule 2025-08-25 · effective 2025-10-01
- Defense Federal Acquisition Regulation Supplement; Technical Amendments ↗ · final rule 2025-08-25 · effective 2025-08-25
- Defense Federal Acquisition Regulation Supplement: Inflation Adjustment of Acquisition-Related Thresholds (DFARS Case 2024-D002) ↗ · proposed 2025-01-17 · comments due 2025-03-18
- Defense Federal Acquisition Regulation Supplement; Technical Amendments ↗ · final rule 2024-12-18 · effective 2024-12-18
- Defense Federal Acquisition Regulation Supplement: Inapplicability of Additional Defense-Unique Laws and Certain Non-Statutory DFARS Clauses to Commercial Item Contracts (DFARS Case 2018-D074) ↗ · final rule 2024-11-15 · effective 2024-11-25
- Defense Federal Acquisition Regulation Supplement; Technical Amendments ↗ · final rule 2024-11-15 · effective 2024-11-15
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.