Overview
This section prescribes the specific solicitation provisions and contract clauses required for the acquisition of supplies and services involving the furnishing of supplies. It establishes the framework for implementing the Buy American statute, various Free Trade Agreements, and the Trade Agreements Act based on specific dollar thresholds and the nature of the items being procured.
Key Rules
- Buy American (Standard): Use clause 52.225-1 for acquisitions exceeding the micro-purchase threshold but not exceeding $50,000, or for higher values if no trade agreement clauses apply. It is not used for acquisitions outside the U.S. or for certain exceptions like commercial IT products.
- Domestic Content Thresholds: The section mandates a phased increase in "domestic end product" content requirements:
- 60% for contracts awarded in 2022-2023.
- 65% for contracts awarded between 2024–2028.
- 75% for contracts awarded after 2028.
- Free Trade Agreements (FTA) & Israeli Trade Act: Clause 52.225-3 is required for acquisitions valued between $50,000 and $174,000. Specific Alternates (II or III) must be selected based on whether the value is below or above $100,000.
- Trade Agreements Act (TAA): Clause 52.225-5 is required for acquisitions valued at $174,000 or more if covered by the WTO GPA.
- Certification Requirements: Solicitations must include corresponding "Certificate" provisions (52.225-2, 52.225-4, or 52.225-6) to require offerors to certify the origin of their products.
- Duty-Free Entry: Clause 52.225-8 must be included if the acquisition exceeds the Simplified Acquisition Threshold (SAT) and the supplies are eligible for duty-free entry.
Practical Implications
- Threshold Monitoring: Contracting Officers must precisely estimate contract values, as a difference of only a few dollars can shift a procurement from Buy American requirements to Free Trade Agreement requirements.
- Compliance Tracking: Contractors must track the year of award and potential periods of performance carefully, as the domestic content percentage (65% vs. 75%) is tied to the timeline of the contract award and senior procurement executive decisions.