Small Purchase Exception for the Acquisition of U.S. Flags

On June 25, 2026, the Defense Acquisition Regulations System published in the Federal Register (91 FR 38386) Small Purchase Exception for the Acquisition of U.S. Flags (DFARS Case 2024-D013).

SUMMARY: DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement sections of the National Defense Authorization Acts for Fiscal Years 2024, 2025, and 2026. These sections provide a requirement for full domestic production of flags of the United States acquired by DoD, amend an exception to the requirement to buy certain articles from American sources, and expand the domestic sourcing requirement for seafood acquired for commissary resale.

DoD is proposing to revise the DFARS to implement section 832 of tNDhe National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2024 (Pub. L. 118-31), section 843 of the NDAA for FY 2025 (Pub. L. 118-159), and section 831 of the NDAA for FY 2026 (Pub. L. 119-60). Section 832 amends 10 U.S.C. 4862, known as the BERRY AMENDMENT, to add flags of the United States to the list of covered components or items at 10 U.S.C. 4862(b). The Berry Amendment mandates that DoD procure certain products--including food, clothing, fabrics, fibers, and hand tools--exclusively from domestic sources. Accordingly, section 832 requires that DoD must generally procure U.S. flags that are produced in the United States. Section 832 also revises the exception for small purchases provided in 10 U.S.C. 4862(h). Section 843 of the NDAA for FY 2025 clarifies that the exception at 10 U.S.C. 4862(d)(2) pertains to procurements by, or for, vessels in foreign waters. Section 831 narrows the commissary-resale exception at 10 U.S.C. 4862(g); as a result, this exception does not apply to seafood originating from certain countries.