Buy American-Construction Materials under Trade Agreements
FAR 52.225-11 requires contractors to use domestic or designated country construction materials in federal projects, but allows exceptions with strict documentation when domestic materials are impractical, unavailable, or unreasonably costly.
Overview
FAR 52.225-11 establishes requirements for the use of domestic and designated country construction materials in federal construction contracts subject to trade agreements. The clause implements the Buy American statute, providing a preference for domestic materials but waives certain restrictions for materials from countries with applicable trade agreements (WTO GPA, FTAs, least developed, and Caribbean Basin countries). It defines key terms, sets content thresholds, and outlines procedures for requesting exceptions when domestic materials are unavailable, impracticable, or unreasonably costly.
Key Rules
- Preference for Domestic and Designated Country Materials
- Contractors must use only domestic or designated country construction materials unless exceptions apply.
- Waivers for Trade Agreement Countries
- Buy American restrictions are waived for materials from designated countries, as determined by the Contracting Officer.
- Content Thresholds
- Domestic content requirements vary by material type and delivery year (e.g., 60%, 65%, or 75% for non-iron/steel items; <5% foreign content for iron/steel items).
- Exception Procedures
- Contractors may request to use foreign materials if domestic options are impracticable, unavailable, or unreasonably expensive, providing detailed justification and supporting data.
- Documentation and Reporting
- Requests for exceptions must include price comparisons, supplier surveys, and justifications. Post-award requests require additional explanation.
Responsibilities
- Contracting Officers: Determine applicability of trade agreements, list excepted materials, evaluate exception requests, and modify contracts as needed.
- Contractors: Ensure use of compliant materials, submit exception requests with required data, and maintain documentation.
- Agencies: Oversee compliance, maintain lists of critical items/components, and enforce reporting requirements.
Practical Implications
- Ensures federal construction projects support domestic industry while honoring trade agreements.
- Contractors must carefully track material origins, content percentages, and maintain thorough records.
- Failure to comply or provide adequate documentation can result in noncompliance and contract issues.