Why Part 25 Matters

The Buy American Act creates significant price preferences (currently 20-30% depending on contractor size) for domestic products and is heavily enforced. Trade agreement thresholds determine whether foreign products from designated countries receive national treatment. Contractors must properly determine country of origin, component costs, and substantial transformation for compliance. Violations can result in contract termination and False Claims Act liability.

Key Topics in Part 25

FAR Part 25 addresses several critical areas of the federal acquisition process. Understanding these topics is essential for both contracting officers and contractors working within this regulatory framework.

• Buy American Act — domestic end products and construction materials (Subpart 25.1)
• Trade Agreements Act and WTO GPA (Subpart 25.4)
• Evaluation factors and price preferences for domestic offers
• Country of origin determinations and substantial transformation
• Prohibited sources and sanctioned countries (Subpart 25.7)
• Berry Amendment and specialty metals restrictions
• Foreign end product waivers and exceptions
• Contractors and subcontractors outside the United States

How FAR Part 25 Applies

The Federal Acquisition Regulation is organized into 53 parts, each covering a distinct area of the procurement process. Part 25 (Foreign Acquisition) is part of this framework and works in conjunction with other FAR parts to create a comprehensive regulatory structure. Contracting officers must comply with all applicable parts when executing procurement actions, and contractors must understand the requirements that flow from these regulations into their contracts.

The requirements in Part 25 may be implemented through specific contract clauses prescribed in FAR Part 52. When a clause references Part 25, the substantive requirements originate here, while Part 52 provides the actual clause language incorporated into contracts and solicitations.

Subparts

FAR Part 25 is divided into 11 subparts, each addressing a specific aspect of foreign acquisition.

• 25.1 — Buy American—Supplies
• 25.2 — Buy American—Construction Materials
• 25.3 — Contracts Performed Outside the United States
• 25.4 — Trade Agreements
• 25.5 — Evaluating Foreign Offers—Supply Contracts
• 25.6 — American Recovery and Reinvestment Act—Buy American Statute—Construction Materials
• 25.7 — Prohibited Sources
• 25.8 — Other International Agreements and Coordination
• 25.9 — Customs and Duties
• 25.10 — Additional Foreign Acquisition Regulations
• 25.11 — Solicitation Provisions and Contract Clauses

Reading FAR Part 25

The full text of FAR Part 25 is available on the Electronic Code of Federal Regulations (eCFR). The eCFR provides the most current version of the regulation, including any recent amendments published through Federal Acquisition Circulars (FACs). For historical versions, use the eCFR's point-in-time search feature.

• What does FAR Part 25 cover?

  FAR Part 25 covers foreign acquisition within the federal acquisition process. FAR Part 25 covers foreign acquisition, implementing the Buy American Act (Subpart 25.1), trade agreements including the WTO Government Procurement Agreement and Free Trade Agreements (Subpart 25.4), and restrictions on acquiring foreign products and services. It prescribes evaluation factors for comparing domestic and foreign offers, including price preferences for domestic end products and construction materials. Subpart 25.7 addresses prohibited sources and embargoed countries.

• Who must comply with FAR Part 25?

  FAR Part 25 applies to all executive branch agencies conducting acquisitions, unless a specific exemption exists. Contractors must comply with the requirements that are incorporated into their contracts through prescribed clauses from FAR Part 52. Agency-specific supplements (DFARS, GSAM, etc.) may add additional requirements beyond the base FAR.

• Where can I read the full text of FAR Part 25?

  The full text is available on the Electronic Code of Federal Regulations (eCFR). You can also access it through acquisition.gov, which is maintained by the General Services Administration. Both sources reflect the most current version of the regulation.

• How does FAR Part 25 relate to contract clauses?

  FAR Part 25 establishes the substantive policies and procedures. The actual clause language that gets incorporated into contracts is found in FAR Part 52. Each clause in Part 52 includes a "prescription" that references the relevant policy part, creating a direct link between the requirement and its implementation in the contract.