Evaluating offers of foreign construction material
FAR 25.605 requires specific evaluation factors for offers using foreign construction materials, ensuring domestic preference unless exceptions for unreasonable cost are properly justified and documented.
Overview
FAR 25.605 outlines the procedures for evaluating offers that include foreign construction material when an exception for unreasonable cost of domestic material has been determined. The section establishes specific evaluation factors to be applied to offers using foreign manufactured or unmanufactured construction materials, ensuring that domestic materials are preferred unless their cost is unreasonable. The regulation also provides guidance for tie-breaking between offers and allows offerors to submit alternate proposals using domestic materials. Additionally, it requires contracting officers to update contract clauses if foreign materials not previously listed are accepted.
Key Rules
- Evaluation Factors for Foreign Material
- Apply a 25% evaluation factor to the total offered price for foreign manufactured construction material and a 20% factor to the cost of foreign unmanufactured material when exceptions for unreasonable domestic cost are granted.
- Best Value Determination
- When award is based on factors beyond price, use the evaluated price (including the above factors) to determine best value.
- Preference in Tie Situations
- If offers are tied in price, preference is given to offers not using excepted foreign material.
- Alternate Offers
- Offerors may submit alternate offers using domestic materials to avoid rejection if exceptions are not granted.
- Contract Clause Updates
- Contracting officers must update the contract to include any newly excepted foreign materials.
Responsibilities
- Contracting Officers: Apply evaluation factors, resolve tie situations, update contract clauses, and ensure compliance with exception procedures.
- Contractors: Submit requests for exceptions, provide alternate offers, and ensure accurate identification of foreign materials.
- Agencies: Oversee application of evaluation procedures and ensure Buy American compliance.
Practical Implications
This section ensures a fair and transparent process for evaluating offers with foreign construction materials, discourages unnecessary use of foreign materials, and maintains compliance with Buy American requirements. Contractors must carefully document and justify exceptions, and contracting officers must apply evaluation factors consistently. Common pitfalls include misapplying evaluation factors or failing to update contract clauses when exceptions are granted.