25.607
Noncompliance
Contractors must promptly address and correct unauthorized use of foreign construction materials or risk severe contractual and legal consequences.
Overview
FAR 25.607 outlines the procedures contracting officers must follow when there are allegations or findings of noncompliance with section 1605 of the Recovery Act or the Buy American statute regarding the use of foreign construction materials. The regulation details steps for reviewing allegations, notifying contractors, and determining appropriate corrective actions, including removal and replacement of unauthorized materials, written determinations for retention, and potential contractual remedies such as termination or debarment. It also addresses the process for handling suspected fraud and reporting serious violations to agency officials.
Key Rules
- Review of Allegations
- Contracting officers must review any claims of violations related to unauthorized foreign construction materials.
- Contractor Notification
- Unless fraud is suspected, contractors must be notified of the apparent violation and asked for a response and corrective action plan.
- Corrective Actions
- If unauthorized use is confirmed, actions may include requiring removal/replacement, written determination to retain material (with limitations), or exercising contractual remedies such as termination or debarment.
- Reporting and Fraud
- Serious or fraudulent noncompliance must be reported to agency officials, including the inspector general or criminal investigators.
Responsibilities
- Contracting Officers: Review allegations, notify contractors, determine and implement corrective actions, and report serious or fraudulent violations.
- Contractors: Respond to notifications, propose corrective actions, and comply with removal/replacement or other remedies as directed.
- Agencies: Oversee compliance, process determinations, and handle suspension/debarment actions as needed.
Practical Implications
- Ensures compliance with domestic material requirements in construction contracts.
- Provides a structured process for addressing noncompliance, protecting government interests.
- Contractors must be proactive in responding to allegations and implementing corrective actions to avoid severe penalties or contract termination.