Overview
FAR 25.100 defines the regulatory scope and applicability of the Buy American statute for supply contracts, identifying the specific executive orders and laws it implements. It establishes the criteria for when domestic preference requirements apply to acquisitions, focusing on the location of use and the contract's dollar value.
Key Rules
- Statutory and Executive Authority: Implements 41 U.S.C. chapter 83 (Buy American Act) along with Executive Orders 10582, 13881, and 14005, which collectively strengthen domestic sourcing requirements.
- COTS Item Waiver: Provides a waiver of the domestic content test for Commercially Available Off-the-Shelf (COTS) items, as authorized by 41 U.S.C. 1907 (with specific exceptions noted in 25.101).
- Geographic Limitation: Requirements apply only to supplies acquired for use within the United States.
- Applicability Thresholds: The subpart is triggered when a supply contract—or the supply portion of a service contract—exceeds the micro-purchase threshold.
- Small Business Inclusion: Explicitly applies to contracts set aside for small business concerns, ensuring domestic preference rules are not bypassed by set-aside status.
Practical Implications
- Contracting officers must ensure Buy American clauses are included in all domestic supply solicitations exceeding the micro-purchase threshold, even when the procurement is restricted to small businesses.
- The COTS waiver simplifies compliance for many commercial vendors by focusing on the place of manufacture rather than requiring a complex "cost of components" analysis, though vendors must still monitor specific exceptions for items like iron and steel.