52.225-23
Required Use of American Iron, Steel, and Manufactured Goods-Buy American Statute-Construction Materials under Trade Agreements
Contractors on federal construction projects must prioritize American-made iron, steel, and manufactured goods, but may use certain foreign materials if strict exception procedures are followed and justified.
Overview
FAR 52.225-23 establishes requirements for the use of American iron, steel, and manufactured goods in federal construction projects, implementing the Buy American Statute and Section 1605 of the American Recovery and Reinvestment Act (Recovery Act), while also addressing obligations under various international trade agreements. The clause defines key terms, sets out when domestic or designated country materials must be used, and provides procedures for requesting exceptions based on cost, availability, or public interest. Alternate I modifies requirements for contracts involving Bahrain, Mexico, or Oman.
Key Rules
- Domestic Preference
- Contractors must use domestic construction materials, Recovery Act designated country manufactured materials, or designated country unmanufactured materials unless an exception applies.
- Exceptions to Domestic Requirement
- Exceptions may be granted if domestic materials are unreasonably costly, unavailable in sufficient quantity/quality, or if public interest dictates. Specific thresholds (25% for manufactured, 20% for unmanufactured) apply for cost-based exceptions.
- Requesting Exceptions
- Contractors must submit detailed justification and cost comparison data to request use of foreign materials, including supplier surveys and delivery costs.
- Alternate I
- For contracts involving Bahrain, Mexico, or Oman, special definitions and exclusions apply to construction materials from these countries.
Responsibilities
- Contracting Officers: List any excepted materials, evaluate and approve exception requests, and modify contracts as needed.
- Contractors: Use only approved materials, submit exception requests with required data, and maintain documentation.
- Agencies: Ensure compliance with statutory and trade agreement requirements, and oversee exception determinations.
Practical Implications
- This clause ensures federal construction projects support domestic industries while honoring trade agreements. Contractors must carefully track material origins, maintain documentation, and follow procedures for exceptions. Common pitfalls include incomplete exception requests, misclassification of materials, and failure to account for delivery costs in cost comparisons.