52.225-24 Notice of Required Use of American Iron, Steel, and Manufactured Goods-Buy American Statute-Construction Materials Under Trade Agreements
Source: FAR 52.225-24 on acquisition.gov
FAR 52.225-24 requires contractors to use American iron, steel, and manufactured goods in covered construction projects unless a valid exception is approved, with strict documentation and evaluation requirements for offers including foreign materials.
Overview
FAR 52.225-24 notifies offerors of the requirement to use American iron, steel, and manufactured goods in construction projects funded under the Buy American statute and the American Recovery and Reinvestment Act (Recovery Act), except where trade agreements apply. The provision outlines definitions, procedures for requesting exceptions, evaluation of offers with foreign materials, and requirements for submitting alternate offers. It also provides specific instructions for submitting requests for exception and for handling offers that include foreign construction materials, including cost evaluation penalties and documentation requirements. Alternate versions of the provision address timing for exception requests and special rules for certain countries under trade agreements.
Key Rules
- Definitions and Applicability
- Key terms are defined by reference to FAR 52.225-23, and the provision applies to construction materials under the Buy American statute and Recovery Act, subject to trade agreement exceptions.
- Requests for Exception
- Offerors must submit requests for exception to the Contracting Officer with supporting data, either before or with their offer, depending on the version of the provision used.
- Evaluation of Offers
- Offers including foreign materials may be penalized in price evaluation (25% for manufactured, 20% for unmanufactured) unless an exception applies.
- Alternate Offers
- Offerors may submit alternate offers using domestic or designated country materials, with separate forms and cost tables required.
- Special Rules for Certain Countries
- Alternate II provides additional rules for materials from Bahrain, Mexico, or Oman.
Responsibilities
- Contracting Officers: Evaluate requests for exception, apply price penalties, and determine responsiveness of offers.
- Contractors/Offerors: Submit exception requests with required data, prepare alternate offers as needed, and comply with documentation requirements.
- Agencies: Ensure compliance with Buy American and Recovery Act requirements and proper evaluation of offers.
Practical Implications
- This provision ensures preference for American-made construction materials unless exceptions are justified and approved. Contractors must carefully document and justify any use of foreign materials and understand the cost implications in offer evaluation. Failure to comply or provide required documentation can result in rejection of offers.
As prescribed in 25.1102(e), insert the following provision:
Notice of Required Use of American Iron, Steel, and Manufactured Goods-Buy American Statute-Construction Materials Under Trade Agreements (Jan 2021)
(a) Definitions. "Construction material," "domestic construction material," "foreign construction material," "manufactured construction material," "Recovery Act designated country construction material," "steel," and "unmanufactured construction material," as used in this provision, are defined in the clause of this solicitation entitled "Required Use of Iron, Steel, and Manufactured Goods-Buy American statute-Construction Materials Under Trade Agreements" (Federal Acquisition Regulation (FAR) clause 52.225-23).
(b) Requests for determination of inapplicability. An Offeror requesting a determination regarding the inapplicability of section 1605 of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5) (Recovery Act) or the Buy American statute should submit the request to the Contracting Officer in time to allow a determination before submission of offers. The Offeror shall include the information and applicable supporting data required by paragraphs (c) and (d) of FAR clause 52.225-23 in the request. If an Offeror has not requested a determination regarding the inapplicability of section 1605 of the Recovery Act or the Buy American statute before submitting its offer, or has not received a response to a previous request, the Offeror shall include the information and supporting data in the offer.
(c) Evaluation of offers.
(1) If the Government determines that an exception based on unreasonable cost of domestic construction material applies in accordance with FAR 25.604, the Government will evaluate an offer requesting exception to the requirements of section 1605 of the Recovery Act or the Buy American statute by adding to the offered price of the contract-
(i) 25 percent of the offered price of the contract, if foreign manufactured construction material is included in the offer based on an exception for the unreasonable cost of comparable manufactured domestic construction material; and
(ii) 20 percent of the cost of foreign unmanufactured construction material included in the offer based on an exception for the unreasonable cost of comparable domestic unmanufactured construction material.
(2) If the solicitation specifies award on the basis of factors in addition to cost or price, the Contracting Officer will apply the evaluation factors as specified in paragraph (c)(1) of this provision and use the evaluated cost or price in determining the offer that represents the best value to the Government.
(3) Unless paragraph (c)(2) of this provision applies, if two or more offers are equal in price, the Contracting Officer will 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) Alternate offers.
(1) When an offer includes foreign construction material, other than Recovery Act designated country construction material, that is not listed by the Government in this solicitation in paragraph (b)(3) of FAR clause 52.225-23, the Offeror also may submit an alternate offer based on use of equivalent domestic or Recovery Act designated country construction material.
(2) If an alternate offer is submitted, the Offeror shall submit a separate Standard Form 1442 for the alternate offer and a separate cost comparison table prepared in accordance with paragraphs (c) and (d) of FAR clause 52.225-23 for the offer that is based on the use of any foreign construction material for which the Government has not yet determined an exception applies.
(3) If the Government determines that a particular exception requested in accordance with paragraph (c) of FAR clause 52.225-23 does not apply, the Government will evaluate only those offers based on use of the equivalent domestic or Recovery Act designated country construction material, and the Offeror shall be required to furnish such domestic or Recovery Act designated country construction material. An offer based on use of the foreign construction material for which an exception was requested-
(i) Will be rejected as nonresponsive if this acquisition is conducted by sealed bidding; or
(ii) May be accepted if revised during negotiations.
(End of Provision)
Alternate I (May 2014). As prescribed in 25.1102 (e), substitute the following paragraph (b) for paragraph (b) of the basic provision:
(b) Requests for determination of inapplicability. An offeror requesting a determination regarding the inapplicability of section 1605 of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5) (Recovery Act) or the Buy American statute shall submit the request with its offer, including the information and applicable supporting data required by paragraphs (c) and (d) of FAR clause 52.225-23.
Alternate II (Nov 2023) . As prescribed in 25.1102 (e), add the definition of "Bahraini, Mexican, or Omani construction material" to paragraph (a) and substitute the following paragraph (d) for paragraph (d) of the basic provision:
(d) Alternate offers. (1) When an offer includes foreign construction material, except foreign construction material from a Recovery Act designated country other than Bahrain, Mexico, or Oman that is not listed by the Government in this solicitation in paragraph (b)(3) of FAR clause 52.225-23, the offeror also may submit an alternate offer based on use of equivalent domestic or Recovery Act designated country construction material other than Bahraini, Mexican, or Omani construction material.
(2) If an alternate offer is submitted, the offeror shall submit a separate Standard Form 1442 for the alternate offer and a separate cost comparison table prepared in accordance with paragraphs (c) and (d) of FAR clause 52.225-23 for the offer that is based on the use of any foreign construction material for which the Government has not yet determined an exception applies.
(3) If the Government determines that a particular exception requested in accordance with paragraph (c) of FAR clause 52.225-23 does not apply, the Government will evaluate only those offers based on use of the equivalent domestic or Recovery Act designated country construction material other than Bahraini, Mexican, or Omani construction material. An offer based on use of the foreign construction material for which an exception was requested-
(i) Will be rejected as nonresponsive if this acquisition is conducted by sealed bidding; or
(ii) May be accepted if revised during negotiations.