FAR and DFARS › FAR Part 25: Foreign Acquisition › Subpart 25.5
FAR 25.502 Application.
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 the order of steps to evaluate offers when buying foreign or domestic products under the Buy American statute or the WTO GPA. It matters to contractors because it determines whether a domestic offer gets a price preference and how ties between domestic and foreign offers are broken.
Applies to: Contracting officers evaluating offers for acquisitions subject to the Buy American statute or the WTO GPA
What it requires
- Eliminate offers that are unacceptable for reasons other than price, such as nonresponsive, debarred or suspended, or prohibited source
- Rank the remaining offers by price
- If the solicitation specifies award on factors besides cost or price, apply the evaluation factors and use evaluated cost or price to determine best value
- For WTO GPA acquisitions, consider only U.S.-made or designated country end products unless none were received
Key terms: domestic offer · foreign offer · noneligible offer · eligible offer · designated country end product
Written by AI from this section's text. A guide, not legal advice: the text below rules.
The text
(a) Unless otherwise specified in agency regulations, perform the following steps in the order presented:
(1) Eliminate all offers or offerors that are unacceptable for reasons other than price; e.g., nonresponsive, debarred or suspended, or a prohibited source (see Subpart 25.7).
(2) Rank the remaining offers by price.
(3) If the solicitation specifies award on the basis of factors in addition to cost or price, apply the evaluation factors as specified in this section and use the evaluated cost or price in determining the offer that represents the best value to the Government.
(b) For acquisitions covered by the WTO GPA (see Subpart 25.4)—
(1) Consider only offers of U.S.-made or designated country end products, unless no offers of such end products were received;
(2) If the agency gives the same consideration given eligible offers to offers of U.S.-made end products that are not domestic end products, award on the low offer. Otherwise, evaluate in accordance with agency procedures; and
(3) If there were no offers of U.S.-made or designated country end products, make a nonavailability determination (see 25.103(b)(2)) and award on the low offer (see 25.403(c)).
(c) For acquisitions not covered by the WTO GPA, but subject to the Buy American statute (an FTA or the Israeli Trade Act also may apply), the following applies:
(1) If the low offer is a domestic offer or an eligible offer under NAFTA or the Israeli Trade Act, award on that offer.
(2) If the low offer is a noneligible offer and there were no domestic offers (see 25.103(b)(3)), award on the low offer. The procedures at 25.106(b)(2) and 25.106(c)(2) do not apply.
(3) If the low offer is a noneligible offer and there is an eligible offer that is lower than the lowest domestic offer, award on the low offer. The procedures at 25.106(b)(2) and 25.106(c)(2) do not apply.
(4) Otherwise, apply the appropriate evaluation factor provided in 25.106 to the low offer. The procedures at 25.106(b)(2) and 25.106(c)(2) do not apply.
(i) If the evaluated price of the low offer remains less than the lowest domestic offer, award on the low offer.
(ii) If the price of the lowest domestic offer is less than the evaluated price of the low offer, award on the lowest domestic offer.
(d) Ties. (1) If application of an evaluation factor results in a tie between a domestic offer and a foreign offer, award on the domestic offer.
(2) If no evaluation preference was applied (i.e., offers afforded nondiscriminatory treatment under the Buy American statute), resolve ties between domestic and foreign offers by a witnessed drawing of lots by an impartial individual.
(3) Resolve ties between foreign offers from small business concerns (under the Buy American statute, a small business offering a manufactured article that does not meet the definition of “domestic end product” is a foreign offer) or foreign offers from a small business concern and a large business concern in accordance with 14.408-6(a).
Sections it refers to
← 25.501 General. · 25.503 Group offers. →
Rule changes for FAR Part 25
- Federal Acquisition Regulation: Trade Agreements Thresholds ↗ · final rule 2026-03-13 · effective 2026-03-13
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · final rule 2025-08-27 · effective 2025-10-01
- Federal Acquisition Regulation: List of Domestically Nonavailable Articles ↗ · final rule 2025-05-12 · effective 2025-06-11
- Federal Acquisition Regulation: Improving Consistency Between Procurement and Nonprocurement Procedures on Suspension and Debarment ↗ · final rule 2025-01-03 · effective 2025-01-17
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2024-12-16 · effective 2025-01-03
- Federal Acquisition Regulation: Inflation Adjustment of Acquisition-Related Thresholds ↗ · proposed 2024-11-29 · comments due 2025-01-28
- Federal Acquisition Regulation: List of Domestically Nonavailable Articles ↗ · proposed 2024-10-23 · comments due 2024-12-23
- Federal Acquisition Regulation; Technical Amendments ↗ · final rule 2024-07-30 · effective 2024-08-29
Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.