FAR Part 25: Foreign Acquisition

In plain English

FAR Part 25 implements the Buy American statute and trade agreements that restrict the acquisition of foreign supplies, services, and construction materials for use in the United States, and provides policies for contracts performed outside the United States. It matters to contractors because it determines whether they can offer foreign end products or construction materials and what evaluation procedures apply.

Key rules

• The Buy American statute restricts the purchase of supplies that are not domestic end products for use within the United States. (25.001, 25.101)
• Except for exceptions in 25.103, agencies must acquire only domestic end products for public use inside the United States. (25.102)
• For construction contracts performed in the United States, contractors must use only domestic construction materials unless an exception in 25.202 applies. (25.201)
• The Trade Agreements Act waives the Buy American statute for eligible products from countries that have signed international trade agreements, such as WTO GPA and Free Trade Agreements. (25.402, 25.403)
• For acquisitions covered by the WTO GPA, least developed country and Caribbean Basin country end products must be treated as eligible products. (25.404, 25.405)
• The Israeli Trade Act covers acquisitions of supplies by most agencies if the estimated value is $50,000 or more but does not exceed the WTO GPA threshold for supplies. (25.406)
• Contracting officers must apply the evaluation procedures in subpart 25.5 to determine whether foreign offers are acceptable and how to compare them. (25.501, 25.502)
• For contracts performed outside the United States, special rules apply for contractor personnel in designated operational areas and for private security functions. (25.301-1, 25.302-3)

Who does what

In practice

• When bidding on a contract for supplies or construction for use in the United States, you must determine if your products qualify as domestic end products or domestic construction materials, or if an exception or trade agreement allows foreign products.
• If you plan to use foreign construction material, you may need to request a preaward determination from the contracting officer before award, as described in 25.203.
• For contracts performed outside the United States, be aware of additional requirements for contractor personnel, including rules on weapons and private security functions.
• If you are a foreign contractor, check if your country is covered by a trade agreement, as this may make your products eligible for evaluation without Buy American restrictions.

Common pitfalls

• Assuming that all foreign products are prohibited; the Buy American statute has exceptions and trade agreements may allow eligible foreign products.
• Failing to request a determination for foreign construction material before award when required, which could lead to noncompliance and potential remedies.
• Overlooking the certification requirements for Sudan and Iran, which can result in contract termination or suspension if falsely certified.
• Not considering the evaluation procedures in subpart 25.5, which can affect the competitiveness of your offer if it includes foreign products.

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.