Just as with my Quick Hitters on the FAR and GSAR, my Quick Hitter series on the DFARS is meant to simplify business with the government. This time with DoD.
DFARS 225.504 Evaluation Examples
Contracting with foreign companies does not have to be intimidating. Although I am not considered to be a subject matter expert, I have performed such an action.
There are some exceptions, but you are essentially being dealt with as an LPTA buy if the country of origin of the company you are dealing with is within the World Trade Organization (WTO) or other trade agreement which includes free trade.
PGI 225.504 Evaluation Examples
Procedures are in accordance with DFARS 225.502(c)(ii) with the assumption that the CO has eliminated all proposals outside of the competitive range as well as plausible trade agreements.
Example 1
Offer A is a foreign offer valued at $945,000 subject to BAA/BOP
Offer B is a foreign offer valued at $950,000 exempt from BAA/BOP.
It can safely be assumed that Offer A was submitted from a country within the WTO/FTA and Offer B was not submitted by a country within the WTO/FTA. However, treaties and EOs may allow for such business. In accordance with DFARS 225.502, there is no domestic offer. Thus, the lowest-price-technically-acceptable offer shall be the awarded party.
Example 2
Offer A is a domestic offer valued at $950,000.
Offer B is a foreign offer valued at $890,000 which is exempt from BAA/BOP.
Offer C is a foreign offer valued at $890,000 which is subject to BAA/BOP.
Again, the CO will make their award decision based upon DFARS 225.502. Offer B can be eliminated due to the fact that it is safely assumed such as a country that the United States does not ordinarily conduct business with or within. Now, we are down to Offer A versus Offer C. Although, Offer A is domestic, the valued price is $60,000 greater than Offer C. Therefore, Offer C not only is vastly cheaper, but the foreign company is housed in a country in which the United States is amenable to doing business with. Therefore, you don’t have to add the 50% evaluation factor to the foreign offer. 
Example 3
Offer A is a foreign offer valued at $9100 which is exempt from BAA/BOP.
Offer B is a domestic offer valued at $8900.
Offer C is a foreign offer valued at $6000 which is subject to BAA/BOP.
Offer A can easily be eliminated because it is the highest as well as outside established normal trade agreement. Now, we have Offer B versus Offer C. Offer C maybe the clear cut winner to those who are not diligent. However, remember that you have to add 50% of the offer value to such proposals. Therefore, making the established contract value for this proposal $9000 instead of $6000. Offer B wins on LPTA.
Example 4
Offer A is a foreign offer valued at $910,000 which is exempt from BAA/BOP.
Offer B is a domestic offer valued at $890,000.
Offer C is a foreign offer valued at $590,000 which is subject to BAA/BOP.
The award goes to Offer C which includes the 50% evaluation factor. Offer A is immediately eliminated because it is the highest as well as it can safely be assumed that the proposal comes from a country that the United States is not amenable to doing business with or within. The 50% evaluation rule eliminates what I am dubbing “home cooking” or “foreign cuisine” if you will. The difference is $5000 in favor of Offer C. It does not matter how much of a patriot the CO is. Offer C must win the solicitation.
Example 5
Offer A is a foreign offer valued at $900,000 which is exempt from BAA/BOP.
Offer B is a domestic offer valued at $850,000.
Offer C is a foreign offer valued at $550,000 which is subject to BAA/BOP.
Offer C wins. Offer A can easily be eliminated because it is the highest in price as well as within a country that the United States is not amenable to doing business with or within. Offer B is eliminated when the 50% evaluation factor is added to Offer C.
Despite the quobbling, the USG takes great effort in constructing procedures in which each offeror receives a fair and reasonable opportunity to sell.
As previously mentioned, I dealt with a foreign giant within my time at the FSS. It was a German company who considered themselves to be the Nike of leg braces. The contracting experience was not that different. If dealing with different time zones as well as a language barrier frustrates you then you will not be successful dealing with foreign companies. It was the same story for me. We got to the negotiation table, and I closed. The fact that the company was German never crossed my mind throughout the duration of the contracting process.
If you think I can help you then email nicholas.s.robertson@outlook.com for your introductory email and free consultation. 
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