225.7000 - Scope of subpart
(a) This subpart contains restrictions on the acquisition of foreign products and services, imposed by DoD appropriations and authorization acts and other statutes. Refer to the acts to verify current applicability of the restrictions.
(b) Nothing in this subpart affects the applicability of the Buy American statute or the Balance of Payments Program.

225.7001 - Definitions
As used in this subpart—
“Assembly” means an item forming a portion of a system or subsystem that—
(1) Can be provisioned and replaced as an entity; and
(2) Incorporates multiple, replaceable parts.
“Bearing components” means the bearing element, retainer, inner race, or outer race.
“Component” means any item supplied to the Government as part of an end item or of another component, except that for use in 225.7007 , the term means an article, material, or supply incorporated directly into an end product.
“End item,” as used in sections 225.7003 and 225.7018 , means the final production product when assembled or completed and ready for delivery under a line item of the contract (10 U.S.C. 2533b(m)).
“End product” means supplies delivered under a line item of the contract.
“Hand or measuring tools” means those tools listed in Federal supply classifications 51 and 52, respectively.
“Structural component of a tent”—
(1) Means a component that contributes to the form and stability of the tent (e.g., poles, frames, flooring, guy ropes, pegs); and
(2) Does not include equipment such as heating, cooling, or lighting.
“Subsystem” means a functional grouping of items that combine to perform a major function within an end item, such as electrical power, altitude control, and propulsion.

225.7002 - Restrictions on food, clothing, fabrics, hand or measuring tools, and flags


225.7002-2 - Exceptions
Acquisitions in the following categories are not subject to the restrictions in 225.7002-1:
(a) Acquisitions at or below the simplified acquisition threshold, except for athletic footwear purchased by DoD for use by members of the Army, Navy, Air Force, or Marine Corps upon their initial entry into the Armed Forces (section 817 of the National Defense Authorization Act for Fiscal Year 2017 (Pub. L. 114-328)).
(b) Acquisitions of any of the items in 225.7002-1, if the Secretary concerned determines that items grown, reprocessed, reused, or produced in the United States cannot be acquired as and when needed in a satisfactory quality and sufficient quantity at U.S. market prices. (See the requirement in 205.301 for synopsis within 7 days after contract award when using this exception.)
(1) The following officials are authorized, without power of redelegation, to make such a domestic nonavailability determination:
(i) The Under Secretary of Defense (Acquisition, Technology, and Logistics).
(ii) The Secretary of the Army.
(iii) The Secretary of the Navy.
(iv) The Secretary of the Air Force.
(v) The Director of the Defense Logistics Agency.
(2) The supporting documentation for the determination shall include—
(i) An analysis of alternatives that would not require a domestic nonavailability determination; and
(ii) A written certification by the requiring activity, with specificity, why such alternatives are unacceptable.
(3) Defense agencies other than the Defense Logistics Agency shall follow the procedures at PGI 225.7002-2 (b)(3) when submitting a request for a domestic nonavailability determination.
(c) Acquisitions of items listed in FAR 25.104(a).
(d) Acquisitions outside the United States in support of combat operations.
(e) Acquisitions of perishable foods by or for activities located outside the United States for personnel of those activities.
(f) Acquisitions of food or hand or measuring tools—
(1) In support of contingency operations; or
(2) For which the use of other than competitive procedures has been approved on the basis of unusual and compelling urgency in accordance with FAR 6.302-2.
(g) Emergency acquisitions by activities located outside the United States for personnel of those activities.
(h) Acquisitions by vessels in foreign waters.
(i) Acquisitions of items specifically for commissary resale.
(j) Acquisitions of incidental amounts of cotton, other natural fibers, or wool incorporated in an end product, for which the estimated value of the cotton, other natural fibers, or wool—
(1) Is not more than 10 percent of the total price of the end product; and
(2) Does not exceed the simplified acquisition threshold.
(k) Acquisitions of waste and byproducts of cotton or wool fiber for use in the production of propellants and explosives.
(l) Acquisitions of foods manufactured or processed in the United States, regardless of where the foods (and any component if applicable) were grown or produced. However, in accordance with section 8118 of the DoD Appropriations Act for Fiscal Year 2005 (Pub. L. 108-287), this exception does not apply to fish, shellfish, or seafood manufactured or processed in the United States or fish, shellfish, or seafood contained in foods manufactured or processed in the United States.
(m) Acquisitions of fibers and yarns that are for use in synthetic fabric or coated synthetic fabric (but not the purchase of the synthetic or coated synthetic fabric itself), if—
(1) The fabric is to be used as a component of an end product that is not a textile product. Examples of textile products, made in whole or in part of fabric, include—
(i) Draperies, floor coverings, furnishings, and bedding (Product or Service Group (PSG) 72, Household and Commercial Furnishings and Appliances);
(ii) Items made in whole or in part of fabric in PSG 83, Textile/leather/furs/apparel/findings/tents/flags, or PSG 84, Clothing, Individual Equipment and Insignia;
(iii) Upholstered seats (whether for household, office, or other use); and
(iv) Parachutes (PSC 1670); or
(2) The fibers and yarns are para-aramid fibers and continuous filament para-aramid yarns manufactured in a qualifying country.
(n) Acquisitions of chemical warfare protective clothing when the acquisition furthers an agreement with a qualifying country. (See 225.003 (10) and the requirement in 205.301 for synopsis within 7 days after contract award when using this exception.)
(o) Acquisitions that are interagency, State, or local purchases that are executed by DoD as a result of the transfer of contracts from the General Services Administration or for which DoD serves as an item manager for products on behalf of the General Services Administration. According to section 897 of the National Defense Authorization Act for Fiscal Year 2016 (Pub. L. 114-92), such contracts shall not be subject to requirements under chapter 148 of title 10, United States Code (including 10 U.S.C. 2533a), to the extent such contracts are for purchases of products by other Federal agencies or State or local governments.

225.7003 - Restrictions on acquisition of specialty metals


225.7004 - Restriction on acquisition of foreign buses


225.7004-3 - Exceptions
This restriction does not apply in any of the following circumstances:
(a) Buses manufactured outside the United States, Australia, Canada, or the United Kingdom are needed for temporary use because buses manufactured in the United States, Australia, Canada, or the United Kingdom are not available to satisfy requirements that cannot be postponed. Such use may not, however, exceed the lead time required for acquisition and delivery of buses manufactured in the United States, Australia, Canada, or the United Kingdom.
(b) The requirement for buses is temporary in nature. For example, to meet a special, nonrecurring requirement or a sporadic and infrequent recurring requirement, buses manufactured outside the United States, Australia, Canada, or the United Kingdom may be used for temporary periods of time. Such use may not, however, exceed the period of time needed to meet the special requirement.
(c) Buses manufactured outside the United States, Australia, Canada, or the United Kingdom are available at no cost to the U.S. Government.
(d) The acquisition is for an amount at or below the simplified acquisition threshold.

225.7004-4 - Waiver
The waiver criteria at 225.7008 (a) apply to this restriction.

225.7005 - Restriction on certain chemical weapons antidote.


225.7005-2 - Exception.
This restriction does not apply if the acquisition is for an amount at or below the simplified acquisition threshold.

225.7005-3 - Waiver.
The waiver criteria at 225.7008 (a) apply to this restriction.

225.7006 - Restriction on air circuit breakers for naval vessels


225.7006-1 - Restriction
In accordance with 10 U.S.C. 2534, do not acquire air circuit breakers for naval vessels unless they are manufactured in the United States, Australia, Canada, or the United Kingdom.

225.7006-2 - Exceptions
This restriction does not apply if the acquisition is—
(a) For an amount at or below the simplified acquisition threshold; or
(b) For spare or repair parts needed to support air circuit breakers manufactured outside the United States. Support includes the purchase of spare air circuit breakers when those from alternate sources are not interchangeable.

225.7006-3 - Waiver
The waiver criteria at 225.7008 (a) apply to this restriction.

225.7007 - Restrictions on anchor and mooring chain


225.7007-1 - Restrictions
(a) In accordance with Section 8041 of the Fiscal Year 1991 DoD Appropriations Act (Pub. L. 101-511) and similar sections in subsequent DoD appropriations acts, do not acquire welded shipboard anchor and mooring chain, four inches or less in diameter, unless—
(1) It is manufactured in the United States, including cutting, heat treating, quality control, testing, and welding (both forging and shot blasting process); and
(2) The cost of the components manufactured in the United States exceeds 50 percent of the total cost of components.
(b) 10 U.S.C. 2534 also restricts acquisition of welded shipboard anchor and mooring chain, four inches or less in diameter, when used as a component of a naval vessel. However, the Appropriations Act restriction described in paragraph (a) of this subsection takes precedence over the restriction of 10 U.S.C. 2534.

225.7007-3 - Contract clause
Unless a waiver has been granted, use the clause at 252.225-7019 , Restriction on Acquisition of Anchor and Mooring Chain, in solicitations and contracts requiring welded shipboard anchor or mooring chain four inches or less in diameter.

225.7009 - Restriction on ball and roller bearings


225.7009-1 - Scope
This section implements Section 8065 of the Fiscal Year 2002 DoD Appropriations Act (Pub. L. 107-117) and the same restriction in subsequent DoD appropriations acts.

225.7009-2 - Restriction
(a) Do not acquire ball and roller bearings unless—
(1) The bearings are manufactured in the United States or Canada; and
(2) For each ball or roller bearing, the cost of the bearing components manufactured in the United States or Canada exceeds 50 percent of the total cost of the bearing components of that ball or roller bearing.
(b) The restriction at 225.7003-2 may also apply to bearings that are made from specialty metals, such as high carbon chrome steel (bearing steel).

225.7009-3 - Exception
The restriction in 225.7009-2 does not apply to contracts or subcontracts for the acquisition of commercial items, except for commercial ball and roller bearings acquired as end items.

225.7009-4 - Waiver
The Secretary of the department responsible for acquisition or, for the Defense Logistics Agency, the Component Acquisition Executive, may waive the restriction in 225.7009-2 , on a case-by-case basis, by certifying to the House and Senate Committees on Appropriations that—
(a) Adequate domestic supplies are not available to meet DoD requirements on a timely basis; and
(b) The acquisition must be made in order to acquire capability for national security purposes.

225.7009-5 - Contract clause
Use the clause at 252.225-7016 , Restriction on Acquisition of Ball and Roller Bearings, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items, unless—
(a) The items being acquired are commercial items other than ball or roller bearings acquired as end items;
(b) The items being acquired do not contain ball and roller bearings; or
(c) A waiver has been granted in accordance with 225.7009-4 .

225.701 - Restrictions


225.701-70 - Exception
DoD personnel are authorized to make emergency acquisitions in direct support of U.S. or allied forces deployed in military contingency, humanitarian, or peacekeeping operations in a country or region subject to economic sanctions administered by the Department of the Treasury, Office of Foreign Assets Control.

225.7010 - Restriction on certain naval vessel components


225.7010-1 - Restriction
In accordance with 10 U.S.C. 2534, do not acquire the following components of naval vessels, to the extent they are unique to marine applications, unless manufactured in the United States, Australia, Canada, or the United Kingdom:
(a) Gyrocompasses.
(b) Electronic navigation chart systems.
(c) Steering controls.
(d) Pumps.
(e) Propulsion and machinery control systems.
(f) Totally enclosed lifeboats.

225.7010-2 - Exceptions
This restriction does not apply to—
(a) Contracts or subcontracts that do not exceed the simplified acquisition threshold; or
(b) Acquisition of spare or repair parts needed to support components for naval vessels manufactured outside the United States. Support includes the purchase of spare gyrocompasses, electronic navigation chart systems, steering controls, pumps, propulsion and machinery control systems, or totally enclosed lifeboats, when those from alternate sources are not interchangeable.

225.7010-3 - Waiver
The waiver criteria at 225.7008(a) apply to this restriction.

225.7010-4 - Implementation
(a) 10 U.S.C. 2534(h) prohibits the use of contract clauses or certifications to implement this restriction.
(b) Agencies shall accomplish implementation of this restriction through use of management and oversight techniques that achieve the objectives of this section without imposing a significant management burden on the Government or the contractor involved.

225.7011 - Restriction on carbon, alloy, and armor steel plate


225.7012 - Restriction on supercomputers


225.7012-1 - Restriction
In accordance with Section 8112 of Pub. L. 100-202, and similar sections in subsequent DoD appropriations acts, do not purchase a supercomputer unless it is manufactured in the United States.

225.7012-2 - Waiver
The Secretary of Defense may waive this restriction, on a case-by-case basis, after certifying to the Armed Services and Appropriations Committees of Congress that—
(a) Adequate U.S. supplies are not available to meet requirements on a timely basis; and
(b) The acquisition must be made in order to acquire capability for national security purposes.

225.7012-3 - Contract clause
Unless a waiver has been granted, use the clause at 252.225-7011 , Restriction on Acquisition of Supercomputers, in solicitations and contracts for the acquisition of supercomputers.

225.7014 - Restrictions on military construction
(a) For restriction on award of military construction contracts to be performed in the United States outlying areas in the Pacific and on Kwajalein Atoll, or in countries bordering the Arabian Gulf, see 236.273 (a).
(b) For restriction on acquisition of steel for use in military construction projects, see 236.274 .

225.7015 - Restriction on overseas architect-engineer services
For restriction on award of architect-engineer contracts to be performed in Japan, in any North Atlantic Treaty Organization member country, or in countries bordering the Arabian Gulf, see 236.602-70 .

225.7017 - Utilization of domestic photovoltaic devices


225.7017-1 - Definitions As used in this section—
“Caribbean Basin country photovoltaic device” means a photovoltaic device that—
(1) Is wholly manufactured in a Caribbean Basin country; or
(2) In the case of a photovoltaic device that consists in whole or in part of materials from another country, has been substantially transformed in a Caribbean Basin country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed, provided that the photovoltaic device is not subsequently substantially transformed outside of a Caribbean Basin country.
“Covered contract” means an energy savings performance contract, a utility services contract, or a private housing contract awarded by DoD, to be performed in the United States, if such contract results in DoD ownership of photovoltaic devices, by means other than DoD purchase as end products. DoD is deemed to own a photovoltaic device if the device is—
(1) Installed in the United States on DoD property or in a facility owned by DoD; and
(2) Reserved for the exclusive use of DoD in the United States for the full economic life of the device.
“Designated country photovoltaic device” means a World Trade Organization Government Procurement Agreement (WTO GPA) country photovoltaic device, a Free Trade Agreement country photovoltaic device, a least developed country photovoltaic device, or a Caribbean Basin country photovoltaic device.
“Domestic photovoltaic device” means a photovoltaic device that is manufactured in the United States.
“Foreign photovoltaic device” means a photovoltaic device other than a domestic photovoltaic device.
“Free Trade Agreement country photovoltaic device” means a photovoltaic device that—
(1) Is wholly manufactured in a Free Trade Agreement country; or
(2) In the case of a photovoltaic device that consists in whole or in part of materials from another country, has been substantially transformed in a Free Trade Agreement country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed, provided that the photovoltaic device is not subsequently substantially transformed outside of a Free Trade Agreement country.
“Least developed country photovoltaic device” means a photovoltaic device that—
(1) Is wholly manufactured in a least developed country; or
(2) In the case of a photovoltaic device that consists in whole or in part of materials from another country, has been substantially transformed in a least developed country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed, provided that the photovoltaic device is not subsequently substantially transformed outside of a least developed country.
"Photovoltaic device" means a device that converts light directly into electricity through a solid-state, semiconductor process.
“Qualifying country photovoltaic device” means a photovoltaic device manufactured in a qualifying country.
“U.S.-made photovoltaic device” means a photovoltaic device that—
(1) Is manufactured in the United States; or
(2) Is substantially transformed in the United States into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed, provided that the photovoltaic device is not subsequently substantially transformed outside of the United States.
“WTO GPA country photovoltaic device” means a photovoltaic device that—
(1) Is wholly manufactured in a WTO GPA country; or
(2) In the case of a photovoltaic device that consists in whole or in part of materials from another country, has been substantially transformed in a WTO GPA country into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was transformed, provided that the photovoltaic device is not subsequently substantially transformed outside of a WTO GPA country.

225.7017-2 - Restriction
In accordance with section 846 of the National Defense Authorization Act for Fiscal Year 2011, photovoltaic devices provided under any covered contract shall comply with 41 U.S.C. chapter 83, Buy American, subject to the exceptions to that statute provided in the Trade Agreements Act of 1979 (19 U.S.C. 2501 et seq.).

225.7017-3 - Exceptions
DoD requires the contractor to utilize domestic photovoltaic devices in covered contracts that exceed the simplified acquisition threshold, with the following exceptions:
(a) Qualifying country. Qualifying country photovoltaic devices may be utilized in any covered contract, because 225.103 (a)(i)(A) provides an exception to the Buy American statute for products of qualifying countries, as defined in 225.003 .
(b) Buy American—unreasonable cost. For a covered contract that utilizes photovoltaic devices valued at less than $182,000, the exception for unreasonable cost may apply (see FAR 25.103(c). If the cost of a foreign photovoltaic device plus 50 percent is less than the cost of a domestic photovoltaic device, then the foreign photovoltaic device may be utilized.
(c) Trade agreements.
(1) Free Trade Agreements. For a covered contract that utilizes photovoltaic devices valued at $25,000 or more, photovoltaic devices may be utilized from a country covered under the acquisition by a Free Trade Agreement, depending upon dollar threshold (see FAR subpart 25.4).
(2) World Trade Organization—Government Procurement Agreement. For covered contracts that utilize photovoltaic devices that are valued at $182,000 or more, only U.S.-made photovoltaic devices, designated country photovoltaic devices, or qualifying country photovoltaic devices may be utilized.

225.7018 - Restriction on acquisition of certain magnets and tungsten


225.7018-2 - Restriction
(a) Except as provided in 225.7018-3 and 225.7018-4, do not acquire any covered material melted or produced in any covered country, or any end item, manufactured in any covered country, that contains a covered material (10 U.S.C. 2533c).
(b)(1) For samarium-cobalt magnets and neodymium iron-boron magnets, this restriction includes -
(i) Melting samarium with cobalt to produce the samarium-cobalt alloy or melting neodymium with iron and boron to produce the neodymium-iron-boron alloy; and
(ii) All subsequent phases of production of the magnets, such as powder formation, pressing, sintering or bonding, and magnetization.
(2) The restriction on melting and producing of samarium-cobalt magnets is in addition to any applicable restrictions on melting of specialty metals at 225.7003 and the clause at 252.225-7009, Restriction on Acquisition of Certain Articles Containing Specialty Metals.
(c) For production of tungsten metal powder and tungsten heavy alloy, this restriction includes–
(1) Atomization;
(2) Calcination and reduction into powder;
(3) Final consolidation of non-melt derived metal powders; and
(4) All subsequent phases of production of tungsten metal powder, tungsten heavy alloy, or any finished or semi-finished component containing tungsten heavy alloy.

225.7018-3 - Exceptions
The restriction in section 225.7018-2 does not apply to an acquisition—
(a) At or below the simplified acquisition threshold;
(b) Outside the United States of an item for use outside the United States; or
(c) Of an end item that is—
(1) A commercially available off-the-shelf item (but see PGI 225.7018-3 (c)(1)(i) with regard to commercially available samarium-cobalt magnets), other than—
(i) A commercially available off-the-shelf item that is 50 percent or more tungsten by weight; or
(ii) A tungsten heavy alloy mill product, such as bar, billet, slab, wire, cube, sphere, block, blank, plate, or sheet, that has not been incorporated into an end item, subsystem, assembly, or component;
(2) An electronic device, unless the Secretary of Defense, upon the recommendation of the Strategic Materials Protection Board pursuant to 10 U.S.C. 187 determines that the domestic availability of a particular electronic device is critical to national security (but see PGI 225.7018-3 (c)(1)(ii) with regard to samarium-cobalt magnets used in electronic components); or
(3) A neodymium-iron-boron magnet manufactured from recycled material if the milling of the recycled material and sintering of the final magnet takes place in the United States.
(d) If the authorized agency official concerned determines that compliant covered materials of satisfactory quality and quantity, in the required form, cannot be procured as and when needed at a reasonable price.
(1) For tungsten heavy alloy, the term “required form” refers to the form of the mill product, such as bar, billet, wire, slab, plate, or sheet, in the grade appropriate for the production of a finished end item to be delivered to the Government under this contract; or a finished component assembled into an end item to be delivered to the Government under the contract.
(2) For samarium-cobalt magnets or neodymium-iron-boron magnets, the term “required form” refers to the form and properties of the magnets.

225.7018-4 - Nonavailability determination
(a) Individual nonavailability determinations.
(1) The head of the contracting activity is authorized to make a nonavailability determination described in 225.7018-3 (d) on an individual basis (i.e., applies to only one contract).
(2) The supporting documentation for the determination shall include—
(i) An analysis of alternatives that would not require a nonavailability determination; and
(ii) A written certification by the requiring activity that describes, with specificity, why such alternatives are unacceptable.
(3) Provide to USD(A&S) DASD (Industrial Policy), in accordance with the procedures at PGI 225.7018-4 (a)(4)—
(i) A copy of individual nonavailability determinations with supporting documentation; and
(ii) Notification when individual waivers are requested, but denied.
(b) Class nonavailability determinations.
A class nonavailability determination (i.e., a nonavailability determinations that applies to more than one contract) requires the approval of the USD(A&S). Follow the procedures at PGI 225.7018-4 (b) when submitting a request for a class nonavailability determination.
(1) At least 30 days before making a nonavailability determination that would apply to more than one contract, the USD(A&S) will, to the maximum extent practicable, and in a manner consistent with the protection of national security and confidential business information—
(i) Publish a notice on the Federal Business Opportunities website (www.FedBizOpps.gov) of the intent to make the nonavailability determination; and
(ii) Solicit information relevant to such notice from interested parties, including producers of mill products from covered materials.
(2) The USD(A&S)—
(i) Will take into consideration all information submitted in response to the notice in making a class nonavailability determination;
(ii) May consider other relevant information that cannot be made part of the public record consistent with the protection of national security information and confidential business information; and
(iii) Will ensure that any such nonavailability determination and the rationale for the determination are made publicly available to the maximum extent consistent with the protection of national security and confidential business information.

225.7018-5 - Contract clause
Unless acquiring items outside the United States for use outside the United States or a nonavailability determination has been made in accordance with 225.7018-4 , use the clause at 252.225-7052 , Restriction on Acquisition of Certain Magnets and Tungsten, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items, that exceed the simplified acquisition threshold.