25.605 Evaluating offers of foreign construction material
Source: FAR 25.605 on acquisition.gov
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.
(a) If the contracting officer has determined that an exception applies because the cost of certain domestic construction material is unreasonable, in accordance with section 25.604, then the contracting officer shall apply evaluation factors to the offer incorporating the use of such foreign construction material as follows:
(1) Use an evaluation factor of 25 percent, applied to the total offered price of the contract, if foreign manufactured construction material is incorporated in the offer based on an exception for unreasonable cost of comparable domestic construction material requested by the offeror.
(2) In addition, use an evaluation factor of 20 percent applied to the cost of foreign unmanufactured construction material incorporated in the offer based on an exception for unreasonable cost of comparable domestic unmanufactured construction material requested by the offeror.
(3) Total evaluated price = offered price + (.25 x offered price, if (a)(1) applies) + (.20 x cost of foreign unmanufactured construction material, if (a)(2) applies).
(b) If the solicitation specifies award on the basis of factors in addition to cost or price, apply the evaluation factors as specified in paragraph (a) of this section and use the evaluated price in determining the offer that represents the best value to the Government
(c) Unless paragraph (b) applies, if two or more offers are equal in price, the contracting officer must give preference to an offer that does not include foreign construction material excepted at the request of the offeror on the basis of unreasonable cost.
(d) Offerors also may submit alternate offers based on use of equivalent domestic construction material to avoid possible rejection of the entire offer if the Government determines that an exception permitting use of a particular foreign construction material does not apply.
(e) If the contracting officer awards a contract to an offeror that proposed foreign construction material not listed in the applicable clause in the solicitation (paragraph (b)(3) of 52.225-21, or paragraph (b)(3) of 52.225-23), the contracting officer must add the excepted materials to the list in the contract clause.