FAR 52.225-24—Notice of Required Use of American Iron, Steel, and Manufactured Goods-Buy American Statute-Construction Materials Under Trade Agreements.
Plain-English Summary
FAR 52.225-24 is the solicitation provision that tells offerors how to respond when a construction acquisition is subject to the Buy American statute, the Recovery Act domestic preference rules, and the trade agreements framework that can affect whether foreign construction materials may be used. It works together with FAR 52.225-23, which contains the substantive requirements and definitions for required use of iron, steel, and manufactured goods, and it tells offerors how to request a determination that a domestic-preference requirement does not apply, how the Government will evaluate offers that include foreign construction material, and when alternate offers may be submitted. The provision also addresses the special evaluation treatment for unreasonable-cost exceptions, including the 25 percent adjustment for foreign manufactured construction material and the 20 percent adjustment for foreign unmanufactured construction material. It further explains how sealed bidding and negotiated acquisitions differ when an exception is denied, and it sets out the alternate-offer process, including separate Standard Form 1442 submissions and cost comparison tables. Alternate I changes the timing of requests for inapplicability determinations, and Alternate II adds special treatment for Bahraini, Mexican, and Omani construction material under applicable trade agreement rules. In practice, this provision is important because it affects what materials an offeror may propose, what documentation must be submitted, how prices are evaluated, and whether a foreign-material offer can be accepted at all.
Key Rules
Definitions come from 52.225-23
This provision does not create its own full set of material definitions; instead, it incorporates the definitions in FAR 52.225-23 for terms such as construction material, domestic construction material, foreign construction material, manufactured construction material, Recovery Act designated country construction material, steel, and unmanufactured construction material. Offerors and contracting officers must read the two clauses together.
Request exceptions before offer submission
An offeror seeking a determination that the Recovery Act section 1605 requirement or the Buy American statute does not apply should submit the request early enough for the contracting officer to decide before offers are due. The request must include the information and supporting data required by FAR 52.225-23 paragraphs (c) and (d), and if no prior request was made or answered, the information must be included in the offer itself.
Unreasonable-cost exceptions affect evaluation
If the Government finds that the unreasonable-cost exception applies under FAR 25.604, it will evaluate the offer by adding a price adjustment to the offered price: 25 percent of the offered price for foreign manufactured construction material and 20 percent of the cost of foreign unmanufactured construction material. This adjustment is used only for evaluation, not as an actual contract price increase.
Best-value and tie-break rules apply
When award is based on factors other than price, the contracting officer applies the same evaluation adjustments and uses the evaluated price in the best-value decision. If two or more offers are equal in price and the best-value rule does not apply, preference goes to an offer that does not include foreign construction material excepted because of unreasonable cost.
Alternate offers may be allowed
If an offer includes foreign construction material that is not listed by the Government in the solicitation under FAR 52.225-23 paragraph (b)(3), the offeror may submit an alternate offer using equivalent domestic or Recovery Act designated country construction material. The alternate-offer process requires a separate SF 1442 and a separate cost comparison table prepared under FAR 52.225-23.
Denied exceptions change offer treatment
If the Government denies the requested exception, it will evaluate only offers based on equivalent domestic or Recovery Act designated country construction material, and the offeror must furnish that material if awarded. In sealed bidding, an offer based on the denied foreign material is nonresponsive and must be rejected; in negotiations, the offer may still be accepted if revised during negotiations.
Alternate II narrows alternate-offer options
Under Alternate II, Bahraini, Mexican, or Omani construction material receives special treatment. The alternate-offer rule is modified so that the offeror may submit an alternate offer for equivalent domestic or Recovery Act designated country construction material other than Bahraini, Mexican, or Omani construction material, reflecting the trade-agreement status of those countries.
Responsibilities
Contracting Officer
Include the provision when prescribed, apply the definitions and procedures from FAR 52.225-23, decide requests for inapplicability, evaluate offers using the required price adjustments when an unreasonable-cost exception applies, apply best-value or tie-break rules as stated, determine whether alternate offers are permitted, and reject nonresponsive sealed bids when a denied exception leaves the offer based on foreign material.
Offeror
Identify any foreign construction material in the offer, request a determination of inapplicability early enough for a decision before offer submission when possible, include all required supporting data from FAR 52.225-23, submit the information with the offer if no prior decision has been received, prepare alternate offers when allowed, and provide separate SF 1442 forms and cost comparison tables as required.
Agency
Apply the domestic-preference and trade-agreement framework consistently in construction acquisitions, ensure the solicitation includes the correct provision and any applicable alternate, and support the contracting officer in evaluating whether exceptions, alternate offers, and country-of-origin rules apply.
Government Evaluators
Use the prescribed evaluation adjustments and comparison methods, compare alternate offers correctly, and ensure that offers based on foreign construction material are treated in accordance with the solicitation and the applicable FAR clauses.
Practical Implications
Offerors cannot wait until after award to sort out domestic-preference issues; if they need an exception, they should raise it early and document it fully.
The 25 percent and 20 percent adjustments can materially change the apparent competitiveness of an offer, so pricing strategy must account for evaluation, not just proposed cost.
A denied exception can be fatal in sealed bidding because the offer becomes nonresponsive if it still relies on the foreign material; in negotiated procurements, there may still be room to revise the offer.
Alternate offers require extra paperwork and careful separation of the base and alternate proposals, including separate SF 1442s and cost comparison tables.
Alternate II can change which foreign materials may be used in an alternate-offer structure, so contractors must check whether Bahraini, Mexican, or Omani construction material is treated differently under the solicitation.
Official Regulatory Text
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.