Subpart 225.5 - EVALUATING FOREIGN

OFFERS—SUPPLY CONTRACTS

Parent topic: Part 225 - FOREIGN ACQUISITION

225.502 Application.

(a) Whenever the acquisition is in support of operations in Afghanistan, treat the offers of end

products from South Caucasus or Central and South Asian states listed in 225.401-70 the same as

qualifying country offers.

(b) Use the following procedures instead of the procedures in FAR 25.502(b) for acquisitions subject

to the World Trade Organization Government Procurement Agreement:

(i) Consider only offers of U.S.-made, qualifying country, or designated country end products, except

as permitted by 225.403 or 225.7703-1.

(ii) If price is the determining factor, award on the low offer.

(c) Use the following procedures instead of those in FAR 25.502(c) for acquisitions subject to the

Buy American statute or the Balance of Payments Program:

(i)(A) If the acquisition is subject only to the Buy American statute or the Balance of Payments

Program, then only qualifying country end products are exempt from application of the Buy

American or Balance of Payments Program evaluation factor.

(B) If the acquisition is also subject to a Free Trade Agreement, then eligible products of the

applicable Free Trade Agreement country are also exempt from application of the Buy American or

Balance of Payments Program evaluation factor, but see 225.106.

(ii) If price is the determining factor, use the following procedures:

(A) If the low offer is a domestic offer, award on that offer.

(B) If there are no domestic offers, award on the low offer (see example in PGI 225.504 (1)).

(C) If the low offer is a foreign offer that is exempt from application of the Buy American or Balance

of Payments Program evaluation factor, award on that offer. If the low offer is a qualifying country

offer from a country listed at 225.872-1(b), execute a determination in accordance with 225.872-4. A

qualifying country offer is subject to the domestic content requirement for end products that are

wholly or predominantly of iron or steel or a combination of both.

(D) If the low offer is a foreign offer that is not exempt from application of the Buy American or

Balance of Payments Program evaluation factor, and there is another foreign offer that is exempt

and is lower than the lowest domestic offer, award on the low foreign offer (see example in PGI

225.504 (2)).

(E) Otherwise, apply the 50 percent evaluation factor to the low foreign offer.

(1) If the price of the low domestic offer is less than the evaluated price of the low foreign offer,
award on the low domestic offer (see example in PGI 225.504 (3)).

(2) If the evaluated price of the low foreign offer remains less than the low domestic offer, award on

the low foreign offer (see example in PGI 225.504 (4)).

(iii) If price is not the determining factor, use the following procedures:

(A) If there are domestic offers, apply the 50 percent Buy American or Balance of Payments Program

evaluation factor to all foreign offers unless an exemption applies.

(B) Evaluate in accordance with the criteria of the solicitation.

(C) If these procedures will not result in award on a domestic offer, reevaluate offers without the 50

percent factor. If this will result in award on an offer to which the Buy American statute or Balance

of Payments Program applies, but evaluation in accordance with paragraph (c)(ii) of this section

would result in award on a domestic offer, proceed with award only after execution of a

determination in accordance with 225.103(a)(ii)(B), that domestic preference would be inconsistent

with the public interest.

(iv) If the solicitation includes the provision at 252.225-7023, Preference for Products or Services

from Afghanistan, use the evaluation procedures at 225.7703-3.

225.503 Group offers.

Evaluate group offers in accordance with FAR 25.503, but apply the evaluation procedures of

225.502 .

225.504 Evaluation examples.

For examples that illustrate the evaluation procedures in 225.502 (c)(ii), see PGI 225.504 .