Overview
FAR 25.501 establishes the foundational guidelines for Contracting Officers when evaluating offers involving foreign end products, ensuring compliance with domestic preference statutes and international trade agreements. It defines the scope of evaluation at the line-item level and outlines the authority of the Contracting Officer to rely on offeror certifications.
Key Rules
- Evaluation Unit: Evaluations must be conducted on a line-item basis unless the solicitation or the offer specifically dictates a group-basis evaluation.
- Reliance on Certification: Contracting Officers are authorized to accept the offeror’s self-certification regarding the country of origin of an end product at face value.
- Prohibited Sources: Offers containing end products from prohibited sources (as defined in FAR Subpart 25.7, such as sanctioned countries or entities) must be identified and rejected.
- Trade Agreement Limitations: When trade agreements apply, the Contracting Officer is prohibited from using Buy American statute price evaluation factors to create a preference for one foreign offer over another.
Practical Implications
- Contracting Officers are not required to conduct independent "country of origin" audits and can rely on the legal liability of the offeror's certification during the evaluation phase.
- The regulation ensures that while domestic products may receive a price preference, the government maintains a neutral stance between different foreign entities when trade agreements have waived Buy American requirements.