Acquisition of construction
FAR 25.1102 mandates specific Buy American and Trade Agreements clauses for construction contracts based on value, location, and funding source, with evolving domestic content thresholds.
Overview
FAR 25.1102 prescribes the required solicitation provisions and contract clauses for the acquisition of construction materials, focusing on compliance with the Buy American statute and Trade Agreements Act. The section distinguishes requirements based on contract value thresholds, performance location (United States), and funding source (including special rules for American Recovery and Reinvestment Act (ARRA) funds). It details which clauses and alternates must be included in solicitations and contracts, how to handle exceptions for foreign construction materials, and the evolving domestic content thresholds for different award years.
Key Rules
- Buy American-Construction Materials (Contracts < $6,708,000)
- Use clause 52.225-9 and provision 52.225-10; list all excepted foreign materials and adjust evaluation percentages or domestic content thresholds as required.
- Buy American-Construction Materials under Trade Agreements (Contracts ≥ $6,708,000)
- Use clause 52.225-11 and provision 52.225-12; apply alternates and list exceptions as specified, with special rules for contracts under $13,296,489.
- Recovery Act Funded Construction
- Use clauses 52.225-21 through 52.225-24 (and alternates) instead of standard clauses; identify applicable line items and list foreign materials exceptions per Recovery Act requirements.
- Domestic Content Thresholds
- Insert the appropriate percentage (60%, 65%, or 75%) in the definition of “domestic construction material” based on the estimated award year.
Responsibilities
- Contracting Officers: Must insert correct clauses/provisions, apply alternates, list exceptions, and ensure thresholds are updated per award year and funding source.
- Contractors: Must comply with Buy American and Trade Agreements requirements, provide information on foreign materials, and adhere to domestic content thresholds.
- Agencies: Oversee compliance, make determinations on exceptions, and ensure proper application of Recovery Act rules.
Practical Implications
This section ensures that construction contracts comply with domestic preference laws and trade agreements, with evolving thresholds and requirements. Contractors must be vigilant about which clauses apply, especially regarding contract value, funding source, and the year of award. Errors in clause inclusion or threshold application can lead to compliance issues or bid challenges.