Season 10: Episode 15 “FAR Facts”

Hello and thank you for joining us for our first fourteen Episodes of Fun with the FAR Season 10!
Our next session will cover: FAR Part 25 (Foreign Acquisition)

As we prepare for our fifteenth episode of Season 10, here are a few FAR Facts for us to think about:

  • Under the Buy American Act, a foreign end product may be purchased if the contracting officer determines that the price of the lowest domestic offer is unreasonable or if another exception applies. FAR 25.001(a)(1).
  • Stated exceptions to the Buy American Act include:
    • Public Interest
    • Nonavailability
    • Unreasonable cost
    • Resale at a commissary
    • Information technology that is a commercial item.
      FAR 25.103
  • The test to determine the “country of origin” for an end product under the Buy American Act is different from the test to determine country of origin for an end product under the trade agreements. It is also different from the criteria for the representation on end products manufactured outside the U.S. FAR 25.001(c).
  • Under the trade agreements, the test to determine country of origin is “substantial transformation” (i.e., transforming an article into a new and different article of commerce, with a name, character, or use distinct from the original article). FAR 25.001(c)(2)
  • For contracts performed outside of the United States, the agency shall provide logistical or security support only when 1) the appropriate agency official determines that such support is available and needed to ensure continuation of essential contractor services and 2) the contractor cannot obtain adequate support from other sources at a reasonable cost. FAR 25.301-2(a)
  • Contract clauses that restrict country of origin should be flowed down from prime to subcontractor.

We look forward to you joining us for Episode 15, which will cover FAR Part 22 & FAR Part 23!
Included here is the link to our Fun with the FAR program:

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