Overview
FAR 25.1102 prescribes the specific solicitation provisions and contract clauses required for construction projects performed in the United States to ensure compliance with the Buy American statute and international trade agreements. It establishes monetary thresholds and domestic content requirements that dictate which regulations apply based on the contract value and the funding source.
Key Rules
- Threshold-Based Clause Selection:
- Under $6,708,000: Use Clause 52.225-9 (Buy American—Construction Materials) and Provision 52.225-10.
- $6,708,000 or more: Use Clause 52.225-11 (Buy American—Construction Materials under Trade Agreements) and Provision 52.225-12.
- Escalating Domestic Content Thresholds: The definition of "domestic construction material" requires an increasing percentage of domestic content based on the award year:
- 2022–2023: 60%
- 2024–2028: 65%
- After 2028: 75%
- Trade Agreement Nuances: For acquisitions between $6,708,000 and $13,296,489, specific alternates must be used to exclude certain trade partners (Bahrain, Mexico, and Oman) from the standard "designated country" treatment.
- Recovery Act Exception: If the project uses funds from the American Recovery and Reinvestment Act of 2009, a separate set of clauses (52.225-21 through 52.225-24) must be used in place of the standard Buy American clauses.
- Exceptions and Evaluations: Any foreign construction materials excepted from the Buy American statute must be specifically listed in the contract clause, and the head of the agency has the authority to substitute higher evaluation percentages for foreign material.
Practical Implications
- Contractors must monitor their supply chains closely, as the "domestic content" requirement for materials increases significantly over the next several years, impacting long-term project planning and material sourcing.
- Contracting Officers must be diligent in selecting the correct Alternate versions of provisions (e.g., Alternate I or II) based on the specific dollar value and the date of the solicitation to ensure trade agreement compliance is properly applied.