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

When it is used

FAR 25.1101(b)(1)(i): supplies, or services involving the furnishing of supplies, for use within the United States, where the acquisition value is $50,000 or more but less than $174,000, the acquisition is not for commercial information technology, and no 25.103 exception applies. Below $50,000 the Government uses 52.225-1 instead; at $174,000 and above it uses 52.225-5 (Trade Agreements). The alternates narrow which trade partners count as the value falls: Alt II for $50,000 to under $100,000, Alt III for $100,000 to under $105,767, Alt IV where the senior procurement executive has approved an alternate domestic content test. For DoD, DFARS 225.1101 directs 'Use the basic or an alternate of the clause at 252.225-7036, Buy American—Free Trade Agreements—Balance of Payments Program, instead of the clause at FAR 52.225-3' — so on a DoD subcontract this FAR number is usually the wrong instrument (L3Harris says exactly this: 'applies to Orders in lieu of FAR 52.225-3 for end products').

Read closely

(c) is the delivery restriction and it reads on what was specified in the offer; (b) is where a list of foreign articles the contracting officer treats as domestic can be obtained. Neither names a table or a supplier statement. Domestic means two things at once, manufactured in the United States and more than 65 percent of component cost of US origin for deliveries in 2024 through 2028, rising to 75 percent from 2029. For an item wholly or predominantly of iron or steel the percentage test drops away and the foreign iron and steel share has to stay under 5 percent, with no off-the-shelf relief. On a DoD order this FAR number is usually the wrong instrument: 252.225-7036 is the one the defense supplement directs.

Alternates

• Alt I · [Reserved]

  none — FAR 25.1101(b)(1) prescribes Alternates II, III and IV only; no subparagraph prescribes an Alternate I.

  Alt I is printed as reserved on the current clause page — the designator exists in the numbering and carries no text — so it moves nothing at all. A flow-down table imposing it with a dated designation is citing a number with nothing behind it.

• Alt II · Jan 2025

  FAR 25.1101(b)(1) — acquisition value is $50,000 or more but less than $100,000.

  Alt II substitutes paragraph (c) so that only the Israeli Trade Act applies and Free Trade Agreement country end products are treated as foreign. It moves which origins qualify at the bottom of the value band, not the component-cost table or the supplier statements behind it.

• Alt III · Feb 2024

  FAR 25.1101(b)(1) — acquisition value is $100,000 or more but less than $105,767.

  Alt III swaps the Bahraini, Moroccan, Omani, Panamanian and Peruvian definitions for a Korean one, so the clause runs on the Korea agreement and the Israeli Trade Act alone. Again the qualifying origins move and the record you have to be able to produce does not.

• Alt IV · Oct 2022

  FAR 25.1101(b)(1) — the senior procurement executive has approved application of an alternate domestic content test.

  Alt IV lets the contracting officer write a domestic content percentage into the definition in place of the standing schedule — 60, 65 or 75 depending on the award year. It changes the number the component-cost table is measured against, so the figure typed into the clause is the one that governs, but the table and the supplier statements are the parent's.