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                            25.201 Policy.
        
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FAC Number: 2024-03 Effective Date: 02/23/2024
PartPart 1Part 2Part 3Part 4Part 5Part 6Part 7Part 8Part 9Part 10Part 11Part 12Part 13Part 14Part 15Part 16Part 17Part 18Part 19Part 20Part 21Part 22Part 23Part 24Part 25Part 26Part 27Part 28Part 29Part 30Part 31Part 32Part 33Part 34Part 35Part 36Part 37Part 38Part 39Part 40Part 41Part 42Part 43Part 44Part 45Part 46Part 47Part 48Part 49Part 50Part 51Part 52Part 53
Subpart25.025.125.225.325.425.525.625.725.825.925.1025.11
Section25.20025.20125.20225.20325.20425.20525.206
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25.201 Policy.25.201 Policy.       (a)                                      Except as provided in  25.202, use only domestic construction materials in construction contracts performed in the United States.                                          (b) The Buy American statute                   restricts the purchase of construction materials that are not domestic                   construction materials. For manufactured construction materials, the Buy American                      statute,   E.O. 13881, and   E.O. 14005                      use                   a two-part test to define domestic construction materials.                                                         (1)                                                  The article must be manufactured in the United States; and                                                            (2)                                                                           (i)                               Except for                                  construction material that consists wholly or predominantly of iron                                  or steel or a combination of both, the cost of domestic components                                  must exceed 60 percent of the cost of all the components, except                                  that the percentage will be 65 percent for items delivered in                                  calendar years 2024 through 2028 and 75 percent for items delivered                                  starting in calendar year 2029, but see paragraph (c) of this                                  section.                               In accordance with 41 U.S.C. 1907, this domestic content test of the                               Buy American statute has been waived for acquisitions of COTS items                               (see  12.505(a)).                                                                              (ii) For construction                               material that consists wholly or predominantly of iron or steel or a                               combination of both, the cost of foreign iron and steel must                               constitute less than 5 percent of the cost of all the components used                               in such construction material (see the definition of "foreign iron and                               steel" at  25.003). The cost of foreign                               iron and steel includes but is not limited to the cost of foreign iron                               or steel mill products (such as bar, billet, slab, wire, plate, or                               sheet), castings, or forgings utilized in the manufacture of the                               construction material and a good faith estimate of the cost of all                               foreign iron or steel components excluding COTS fasteners. This                               domestic content test of the Buy American statute has not been waived                               for acquisitions of COTS items in this category, except for COTS                               fasteners.                                                                                                                            (c)                                                         (1)                         A contract with a period of                            performance that spans the schedule of domestic content threshold                            increases specified in paragraph (b)(2)(i) of this section shall be                            required to comply with each increased threshold for the items in the                            year of delivery, unless the senior procurement executive of the                            contracting agency allows for application of an alternate domestic                            content test for that contract under which the domestic content threshold                            in effect at time of contract award will apply to the entire period of                            performance for the contract. This authority is not delegable. The senior                            procurement executive shall consult the Office of Management and Budget's                            Made in America Office before allowing the use of the alternate domestic                            content test.                                                            (2)                         When a senior procurement executive                            allows for application of an alternate domestic content test for a                            contract, see  25.1102(a)(3) or (c)(4) for use of                            the appropriate Alternate clause to reflect the domestic content                            threshold that will apply to the entire period of performance for that                            contract.    **Parent topic:**  Subpart 25.2 - Buy American-Construction Materials
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