FAR 25.602-2—Buy American statute
Plain-English Summary
FAR 25.602-2 states the core sourcing rule for unmanufactured construction material under the Buy American statute. It tells contracting officers and contractors that, unless an exception in FAR 25.603 applies, only unmanufactured construction material mined or produced in the United States may be used in covered construction work. It also recognizes that when a trade agreement applies, unmanufactured construction material mined or produced in a designated country may be used as well. In practice, this section is the baseline domestic-preference rule for raw construction inputs such as stone, sand, gravel, and other unmanufactured materials, and it determines whether a proposed source is acceptable before the material is incorporated into the project. The section matters because it affects specification writing, offer evaluation, subcontractor sourcing, and compliance reviews, and it can trigger rejection of noncompliant material if the contractor does not identify an applicable exception or trade agreement coverage.
Key Rules
Use U.S.-mined material
For covered construction, the default rule is to use only unmanufactured construction material mined or produced in the United States. This is the Buy American statute requirement as applied to raw, unprocessed construction materials.
Trade agreements may expand sources
If a trade agreement applies to the acquisition, unmanufactured construction material mined or produced in a designated country may also be used. The designated-country exception is not automatic; it depends on whether the procurement is covered by an applicable trade agreement.
Exceptions in 25.603 control
The rule applies only except as provided in FAR 25.603. If an exception under that section applies, the contracting activity may allow material that would otherwise be prohibited under the domestic-preference rule.
Applies to unmanufactured material only
This section is limited to unmanufactured construction material, meaning raw materials mined or produced rather than manufactured items. Different FAR rules may apply to manufactured construction materials or other supplies.
Source verification is essential
Compliance depends on where the material was mined or produced, not merely where it was purchased or shipped from. Contractors must be able to show the material’s origin to support acceptance.
Responsibilities
Contracting Officer
Apply the Buy American statute rule when evaluating construction requirements, determine whether a trade agreement or FAR 25.603 exception applies, and ensure solicitations and awards reflect the correct sourcing limitation for unmanufactured construction material.
Contractor
Use only U.S.-mined or U.S.-produced unmanufactured construction material unless an applicable trade agreement or FAR 25.603 exception permits a designated-country source, and maintain documentation showing the material’s origin and compliance.
Agency
Ensure acquisition planning, specifications, and contract administration support compliance with domestic-preference requirements and any applicable trade agreement coverage for construction materials.
Subcontractors/Suppliers
Provide accurate origin information for unmanufactured construction material and supply only material that meets the contract’s domestic-preference or designated-country requirements.
Practical Implications
Contractors should verify origin early, because a material can be physically available in the United States but still be noncompliant if it was mined or produced elsewhere.
The biggest pitfall is confusing place of purchase, processing, or delivery with place of mining or production; the rule turns on origin, not logistics.
If a trade agreement applies, designated-country sources may be acceptable, but only if the procurement is actually covered and the material fits the agreement’s scope.
Contracting officers should make sure the solicitation and evaluation approach match the applicable sourcing rule so they do not accept noncompliant material later in performance.
Documentation matters: origin certifications, supplier statements, and traceability records are often needed to defend compliance decisions and avoid replacement or rejection of material.
Official Regulatory Text
Except as provided in 25.603 , use only unmanufactured construction material mined or produced in the United States, as required by the Buy American statute or, if trade agreements apply, unmanufactured construction material mined or produced in a designated country may also be used.