25.204
Evaluating offers of foreign construction material
FAR 25.204 requires contractors to provide detailed information and comply with strict evaluation factors when proposing foreign construction materials, ensuring Buy American preferences are enforced in federal construction contracts.
Overview
FAR 25.204 outlines the procedures for evaluating offers that propose the use of foreign construction materials in government contracts subject to the Buy American statute. It establishes how contracting officers must apply price evaluation factors to foreign materials, differentiating between critical and non-critical items, and sets out the requirements for offerors to provide specific information when requesting exceptions. The section also addresses how to handle offers with domestic content above certain thresholds and provides guidance for alternate offers and contract modifications when exceptions are granted.
Key Rules
- Submission Requirements for Foreign Materials
- Offerors proposing foreign construction materials not pre-approved or covered by trade agreements must submit detailed information as specified in FAR clauses 52.225-9 or 52.225-11.
- Evaluation Factors for Non-Critical Items
- A 20% price evaluation factor is added to the cost of foreign materials (unless a higher percentage is specified) when determining if domestic materials are unreasonably costly. Special rules apply for offers with more than 55% domestic content.
- Evaluation Factors for Critical Items/Components
- For critical items or those containing critical components, the 20% factor plus any additional preference factor from FAR 25.105 is applied.
- Alternate Offers
- Offerors may submit alternate offers using domestic materials to avoid rejection if exceptions for foreign materials are not granted.
- Contract Modification
- If a contract is awarded with unlisted foreign materials, the contracting officer must update the contract to include these materials.
Responsibilities
- Contracting Officers: Apply evaluation factors, determine reasonableness, update contract clauses, and ensure compliance with Buy American requirements.
- Contractors: Submit required information for foreign materials, consider alternate domestic offers, and comply with content thresholds and documentation.
- Agencies: Oversee application of evaluation factors and ensure proper contract modifications.
Practical Implications
- This section ensures fair evaluation of offers involving foreign construction materials and enforces Buy American preferences. Contractors must be diligent in documentation and aware of evaluation factors that can affect competitiveness. Misunderstanding thresholds or failing to submit required information can lead to offer rejection or compliance issues.