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FAR and DFARS › FAR Part 25: Foreign Acquisition › Subpart 25.10

FAR 25.1002 Use of foreign currency.

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 how to handle currency when a contract will be entered into and performed outside the United States. It generally requires solicitations to pick either U.S. currency or a specified foreign currency, and if other currencies are allowed, the officer must convert prices to U.S. currency for evaluation using a current market exchange rate. It also requires agencies to ensure enough funds are available to cover currency fluctuations when a contract is priced in foreign currency.

Applies to: Contracting officers handling solicitations and contracts to be entered into and performed outside the United States

What it requires

  • Determine whether the solicitation will require offers in U.S. currency or a specified foreign currency, unless an international agreement or the WTO GPA requires a specific currency
  • Generally require all offers to be priced in the same currency to ensure fair evaluation
  • If offers in other than a specified currency are permitted, convert offered prices to U.S. currency for evaluation using the current market exchange rate from a commonly used source
  • If a contract is priced in foreign currency, ensure adequate funds are available to cover currency fluctuations

Key terms: international agreement · WTO GPA · U.S. currency · specified foreign currency · current market exchange rate

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) Unless an international agreement or the WTO GPA (see 25.408(a)(4)) requires a specific currency, contracting officers must determine whether solicitations for contracts to be entered into and performed outside the United States will require submission of offers in U.S. currency or a specified foreign currency. In unusual circumstances, the contracting officer may permit submission of offers in other than a specified currency.

(b) To ensure a fair evaluation of offers, solicitations generally should require all offers to be priced in the same currency. However, if the solicitation permits submission of offers in other than a specified currency, the contracting officer must convert the offered prices to U.S. currency for evaluation purposes. The contracting officer must use the current market exchange rate from a commonly used source in effect as follows:

(1) For acquisitions conducted using sealed bidding procedures, on the date of bid opening.

(2) For acquisitions conducted using negotiation procedures—

(i) On the date specified for receipt of offers, if award is based on initial offers; otherwise

(ii) On the date specified for receipt of final proposal revisions.

(c) If a contract is priced in foreign currency, the agency must ensure that adequate funds are available to cover currency fluctuations to avoid a violation of the Anti-Deficiency Act (31 U.S.C. 1341, 1342, 1511-1519).

Sections it refers to

← 25.1001 Waiver of right to examination of records. · 25.1003 Tax on certain foreign procurements. →

Rule changes for FAR Part 25

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 25.1002 Use of foreign currency · SpendQuery