Required Use of American Iron, Steel, and Manufactured Goods-Buy American Statute-Construction Materials
Contractors on covered federal construction projects must use American-made iron, steel, and manufactured goods unless a specific exception is granted by the government.
Overview
FAR 52.225-21 requires contractors on certain federally funded construction projects to use only American-made iron, steel, and manufactured goods, unless specific exceptions apply. The clause implements Section 1605 of the American Recovery and Reinvestment Act (Recovery Act) and the Buy American statute, mandating a preference for domestic construction materials. Contractors must ensure that all construction materials incorporated into the project are domestic unless the government has listed exceptions or grants a waiver based on cost, availability, or public interest. The regulation defines key terms such as domestic construction material, foreign construction material, and the thresholds for what constitutes unreasonable cost. Contractors seeking to use foreign materials must submit detailed justification and cost comparison data for government evaluation. Failure to comply may result in noncompliance with federal law and contract modification requirements.
Key Rules
- Domestic Preference Requirement
- Contractors must use only domestic construction materials unless an exception is listed or approved by the Contracting Officer.
- Exceptions to Domestic Material Use
- Exceptions may be granted if domestic materials are unavailable, of unsatisfactory quality, or if their use is inconsistent with public interest, or if the cost differential exceeds 25% for manufactured or 20% for unmanufactured materials.
- Requesting Use of Foreign Materials
- Contractors must submit detailed requests with supporting data and justification for using foreign materials, including cost comparisons and supplier information.
- Contract Modification for Exceptions
- If an exception is granted post-award, the contract will be modified, and adequate consideration negotiated, except for cost-based exceptions where the minimum differential applies.
Responsibilities
- Contracting Officers: List any excepted materials, evaluate requests for exceptions, and modify contracts as needed.
- Contractors: Use only domestic materials unless approved otherwise, submit required documentation for exceptions, and maintain supporting data.
- Agencies: Ensure compliance with statutory requirements and oversee exception processes.
Practical Implications
- This clause ensures federal funds support American manufacturing and labor. Contractors must plan procurement carefully to avoid delays or noncompliance. Common pitfalls include inadequate documentation for exception requests and misunderstanding cost thresholds for waivers.