FAR 252.225-7001 — Buy American and Balance of Payments Program
This DFARS clause implements the Buy American statute and Balance of Payments Program for Department of Defense acquisitions, restricting acquisition of items that are not domestic end products unless an exception applies.
- Clause
- FAR 252.225-7001
- Applies to
- DoD supply contracts
- Flows down to subs
- Yes
- Primary risk
- Nonqualifying end product rejection
Key takeaways
- Read the clause as incorporated in your contract — tailoring and alternates change obligations.
- Flowdown obligations are your responsibility; a noncompliant subcontractor is your problem.
- Document compliance contemporaneously; after-the-fact reconstruction rarely satisfies auditors.
- When a clause is unclear, ask the contracting officer in writing before award, not after.
What the clause requires
You must certify whether each end product is a qualifying country end product, a domestic end product, or another end product, and DoD generally will not accept nonqualifying end products unless a statutory exception, such as public interest, nonavailability, or unreasonable cost, applies. Component cost tests determine domestic end product status.
How to comply in practice
Map your bill of materials against the domestic component cost test before certifying, and identify qualifying country sources early since DoD's qualifying country list differs from general Buy American treatment under the civilian FAR clause.
Common mistakes
Contractors apply the general FAR Buy American rules instead of the DFARS-specific qualifying country framework, misclassifying an end product and creating a certification accuracy problem discovered late in performance.
FAQ
What is a qualifying country end product?
An end product from a country with a reciprocal defense procurement agreement with the United States, treated more favorably than other foreign end products.
Is this the same as the civilian Buy American clause?
No, the DFARS version has its own qualifying country framework distinct from FAR 52.225-1 and related civilian clauses.
What exceptions exist?
Nonavailability, unreasonable cost, public interest, and qualifying country status are the primary statutory exceptions.
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