Notice of Required Use of American Iron, Steel, and Manufactured Goods-Buy American Statute-Construction Materials Under Trade Agreements
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.