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Clauses · DFARS · Supply chain and sourcing

DFARS 252.225-7036 Buy American—Free Trade Agreements—Balance of Payments Program

Does the regulation require it to flow down?

No

No subcontract paragraph in the text (Basic ends at (d), the duty exclusion from the price); the prime flows it down to be able to certify the domestic content of what it delivers — the same mechanism as 7021, one value band lower

A clause can reach your subcontract without a mandate. Once it is in your document, it is a contract term all the same. The missing mandate is a fact about the regulation. It is not a ruling on your order.

Checked against acquisition.gov on 2026-08-04 · edition FEB 2024 (Basic and multiple alternates by value band/agreement) · base v0.9.3 Read the text ↗

What it makes you produce

2 items for your checklist, slowest first.

  1. Something somebody else has to issue you

    The same day if the issuer is one of your own suppliers, months if it is an assessor or an underwriter.

    • Country-of-origin statements from the suppliers of those components — the prime asking for them sets what is enough

      DFARS 252.225-7036

  2. Something you write

    Days to weeks, and nobody outside your company has to agree to it.

    • A component-cost table per part number, giving each component's country and cost, standing behind the certification rather than filed with it

      DFARS 252.225-7036

When it is used

At the prime: items listed in 225.401-70 with an estimated value below $174,000 (225.1101(10)(i)) — the band where TAA (7021) hasn't kicked in yet. The variant depends on the per-agreement band: Basic for value between $100,000 and $174,000; Alt I below $102,280; the other alternates for other combinations and for approved alternate content thresholds. No regulatory flow-down; reaches the sub by template.

Read closely

(c) is the delivery restriction and it reads on what was specified in the offer; the clause names neither the table nor a supplier statement. Domestic and qualifying country content has to clear 65 percent of component cost for deliveries in 2024 through 2028 and 75 percent from 2029; for an item wholly or predominantly of iron or steel the test changes to a nonconforming share under 5 percent, and the off-the-shelf waiver drops the component test but not the manufacture requirement.

The 10 templates that name it, with the line
233RTX Flowdown of U.S. Government Contract Clauses Under U.S. Government ContractsRTXline 1500166Northrop Grumman CTM-P-ST-001 — U.S. Government Firm Fixed Price Order (Not for Commercial Products and Services)Northrop Grummanline 2480166Northrop Grumman CTM-P-ST-003 — U.S. Government T&M Order (Not for Commercial Products and Services)Northrop Grummanline 2417168Northrop Grumman CTM-P-ST-004 — U.S. Government Cost Reimbursement Order (Not for Commercial Products and Services)Northrop Grummanline 2508255GD Mission Systems SCM-TMP-005 — General Provisions, Firm Fixed Price PO under U.S. Government Contract (Non-Commercial)General Dynamicsline 1291122GD Mission Systems SCM-TMP-095 — FFP Purchase Orders for Commercial/COTS Products or Services in Support of a U.S. Government ContractGeneral Dynamicsline 1131240L3Harris LGL-50.F1 — General T&C and Flowdown Clauses for Other Than Commercial Products/Services under a U.S. Government ContractL3Harrisline 2452106L3Harris LGL-50.F2 — General T&C and Flowdown Clauses for Commercial Products/Services under a U.S. Government ContractL3Harrisline 1744273BAE Systems Inc. USGOVA — FAR/DFARS Flow Down Provisions for Subcontracts/Purchase Orders under a U.S. Government (DoD) Prime ContractBAE Systemsline 1175178AAR Component Services NY — U.S. Government Contract FAR and DFARS Clauses Incorporated by ReferenceAAR Corpline 1042

Source: acquisition.gov, DFARS 252.225-7036 and 225.1101(10) (verified 2026-08-04)

This is research, not legal advice. It states what the regulation says about this clause and cites the paragraph behind it. It does not rule on your order, and it does not rule on whether a prime's markings are correct.