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                            25.504-1 Buy American statute.
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
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Subpart25.025.125.225.325.425.525.625.725.825.925.1025.11
Section25.50125.50225.50325.504
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25.504-1 Buy American statute.25.504-1 Buy American statute.       (a)                                                         (1)                         *Example                            1*.                      Offer A                                  $16,000                                  Domestic end product, small businessOffer B                                  $15,700                                  Domestic end product, small businessOffer                                        C                                  $10,100                                  U.S.-made                                        end product (not domestic), small business                                                            (2)                         *Analysis:* This acquisition is for end products for use in the United States and is set aside for small business concerns. The Buy American statute applies. Since the acquisition value is less than $50,000 and the acquisition is set aside, none of the trade agreements apply. Perform the steps in  25.502(a). Offer C is of 50 percent domestic content, therefore Offer C is evaluated as a foreign end product, because it is the product of a small business but is not a domestic end product ( *see*                          25.502(c)(4)). Since Offer B is a domestic offer, apply the 30 percent factor to Offer C ( *see*                          25.106(b)(2)). The resulting evaluated price of $13,130 remains lower than Offer B. The cost of Offer B is therefore unreasonable ( *see*                          25.106(b)(1)(ii)). The  25.106(b)(2) procedures do not apply. Award on Offer C at $10,100 ( *see*                          25.502(c)(4)(i)).                                                                             (b)                                                         (1)                         *Example 2*.                      Offer A                                  $11,000                                  Domestic end product, small businessOffer B                                  $10,700                                  Domestic end product, small businessOffer C                                  $10,200                                  U.S.-made end product (not domestic), small business                                                            (2)                         *Analysis*: This acquisition is for end products for use in the United States and is set aside for small business concerns. The Buy American statute applies. Perform the steps in  25.502(a). Offer C is evaluated as a foreign end product because it is the product of a small business but is not a domestic end product (see  25.502(c)(4)). After applying the 30 percent  factor, the evaluated price of Offer C is $13,260. Award on Offer B at $10,700 (see  25.502(c)(4)(ii)).                                                                             (c)                                                         (1)                         *Example 3*.                      Offer A                                  $14,000                                  Domestic end product (complies with the required                                     domestic content), small business.Offer B                                  12,500                                  U.S.-made end product (not domestic, exceeds 55%                                     domestic content), small business.Offer C                                  10,100                                  U.S.-made end product (not domestic, with less                                     than 55% domestic content), small business.                                                            (2)                         *Analysis.* This acquisition is for end products for use in the United States and is set aside for small business concerns. The Buy American statute applies. Since the acquisition value is less than $50,000 and the acquisition is set aside, none of the trade agreements apply. Perform the steps in  25.502(a). Offers B and C are initially evaluated as foreign end products, because they are the products of small businesses but are not domestic end products ( *see*                          25.502(c)(4)). Offer C is the low offer. After applying the 30 percent factor, the evaluated price of Offer C is $13,130. The resulting evaluated price of $13,130 remains lower than Offer A. The cost of Offer A is therefore unreasonable. Offer B is then treated as a domestic offer, because it is for a U.S.-made end product that exceeds 55 percent domestic content ( *see*                          25.106(b)(2)). Offer B is determined reasonable because it is lower than the $13,130 evaluated price of Offer C. Award on Offer B at $12,500.    **Parent topic:**  25.504 Evaluation examples.
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