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FAR ClauseBuy American

FAR 52.225-3Buy American — Free Trade Agreements — Israeli Trade Act

Applies the Buy American preference only to acquisitions where the Trade Agreements Act and Free Trade Agreements do not apply — generally, when value is below TAA thresholds.

When This Clause Applies

Required in supply contracts below the TAA threshold (currently around $174,000 for most goods). Above that, TAA-eligible products from designated countries can be acquired without Buy American preference.

What This Means for Contractors

Offerors must determine whether each product is a U.S.-made, qualifying country, designated country (TAA), or other foreign end product — and how the price evaluation differs for each. Misclassification can trigger pricing reevaluation and award reversals.

Common Pitfalls

  • 1Treating all foreign products the same — TAA designated countries differ from generic foreign
  • 2Missing the TAA threshold analysis
  • 3Inadequate country-of-origin documentation for component products

Related Topics

FAR 52.225-3Trade Agreements ActTAA compliancedesignated country products

Need help complying with FAR 52.225-3?

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