FAC Number: FAC 2022-07
Effective Date: 08/10/2022

25.1002 Use of foreign currency.

      (a) Unless an international agreement or the WTO GPA (see 25.408(a)(4)) requires a specific currency, contracting officers must determine whether solicitations for contracts to be entered into and performed outside the United States will require submission of offers in U.S. currency or a specified foreign currency. In unusual circumstances, the contracting officer may permit submission of offers in other than a specified currency.

      (b) To ensure a fair evaluation of offers, solicitations generally should require all offers to be priced in the same currency. However, if the solicitation permits submission of offers in other than a specified currency, the contracting officer must convert the offered prices to U.S. currency for evaluation purposes. The contracting officer must use the current market exchange rate from a commonly used source in effect as follows:

           (1) For acquisitions conducted using sealed bidding procedures, on the date of bid opening.

           (2) For acquisitions conducted using negotiation procedures-

                (i) On the date specified for receipt of offers, if award is based on initial offers; otherwise

                (ii) On the date specified for receipt of final proposal revisions.

      (c) If a contract is priced in foreign currency, the agency must ensure that adequate funds are available to cover currency fluctuations to avoid a violation of the Anti-Deficiency Act ( 31 U.S.C. 1341, 1342, 1511-1519).

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