12798 Federal Register / Vol. 87, No. 44 / Monday, March 7, 2022 / Rules and Regulations 

revising the first sentence of paragraph 

(1)(ii)(A); 

■ d. Revising paragraph (b)(4)(i); and 

■ e. Adding Alternate II. 

The revisions and additions read as 

follows: 

52.225–11 Buy American—Construction 

Materials Under Trade Agreements. 

* * * * * 

Buy American—Construction Materials 

Under Trade Agreements (OCT 2022) 

(a) * * * 

Critical component means a component 

that is mined, produced, or manufactured in 

the United States and deemed critical to the 

U.S. supply chain. The list of critical 

components is at FAR 25.105. 

Critical item means a domestic 

construction material or domestic end 

product that is deemed critical to U.S. supply 

chain resiliency. The list of critical items is 

at FAR 25.105. 

* * * * * 

Domestic construction material * * * 

(1) * * * 

(ii) * * * 

(A) The cost of its components mined, 

produced, or manufactured in the United 

States exceeds 60 percent of the cost of all 

its 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. * * * 

* * * * * 

(b) * * * 

(4) * * * 

(i) The cost of domestic construction 

material would be unreasonable. 

(A) For domestic construction material that 

is not a critical item or does not contain 

critical components. (1) The cost of a 

particular domestic construction material 

subject to the restrictions of the Buy 

American statute is unreasonable when the 

cost of such material exceeds the cost of 

foreign material by more than 20 percent; 

(2) For construction material that is not a 

COTS item and does not consist wholly or 

predominantly of iron or steel or a 

combination of both, if the cost of a 

particular domestic construction material is 

determined to be unreasonable or there is no 

domestic offer received, and the low offer is 

for foreign construction material that does 

not exceed 55 percent domestic content, the 

Contracting Officer will treat the lowest offer 

of foreign construction material that is 

manufactured in the United States and 

exceeds 55 percent domestic content as a 

domestic offer and determine whether the 

cost of that offer is unreasonable by applying 

the evaluation factor listed in paragraph 

(b)(4)(i)(A)(1) of this clause. 

(3) The procedures in paragraph 

(b)(4)(i)(A)(2) of this clause will no longer 

apply as of January 1, 2030. 

(B) For domestic construction material that 

is a critical item or contains critical 

components. (1) The cost of a particular 

domestic construction material that is a 

critical item or contains critical components, 

subject to the requirements of the Buy 

American statute, is unreasonable when the 

cost of such material exceeds the cost of 

foreign material by more than 20 percent plus 

the additional preference factor identified for 

the critical item or construction material 

containing critical components listed at FAR 

25.105. 

(2) For construction material that does not 

consist wholly or predominantly of iron or 

steel or a combination of both, if the cost of 

a particular domestic construction material is 

determined to be unreasonable or there is no 

domestic offer received, and the low offer is 

for foreign construction material that does 

not exceed 55 percent domestic content, the 

Contracting Officer will treat the lowest offer 

of foreign construction material that is 

manufactured in the United States and 

exceeds 55 percent domestic content as a 

domestic offer, and determine whether the 

cost of that offer is unreasonable by applying 

the evaluation factor listed in paragraph 

(b)(4)(i)(B)(1) of this clause. 

(3) The procedures in paragraph 

(b)(4)(i)(B)(2) of this clause will no longer 

apply as of January 1, 2030. 

* * * * * 

Alternate II (OCT 2022). As prescribed 

in 25.1102(c)(4) substitute the following 

sentence for the first sentence of 

paragraph (1)(ii)(A) of the definition of 

domestic construction material in 

paragraph (a): 

(A) The cost of its components mined, 

produced, or manufactured in the United 

States exceeds ll percent of the cost of all 

its components. [Contracting officer to insert 

the percentage.] 

[FR Doc. 2022–04173 Filed 3–4–22; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Chapter 1 

[Docket No. FAR–2022–0051, Sequence No. 

2] 

Federal Acquisition Regulation; 

Federal Acquisition Circular 2022–05; 

Small Entity Compliance Guide 

AGENCY: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Small Entity Compliance Guide 

(SECG). 

SUMMARY: This document is issued 

under the joint authority of DoD, GSA, 

and NASA. This Small Entity 

Compliance Guide has been prepared in 

accordance with section 212 of the 

Small Business Regulatory Enforcement 

Fairness Act of 1996. It consists of a 

summary of the rule appearing in 

Federal Acquisition Circular (FAC) 

2022–05, which amends the Federal 

Acquisition Regulation (FAR). 

Interested parties may obtain further 

information regarding this rule by 

referring to FAC 2022–05, which 

precedes this document. 

DATES: March 7, 2022. 

ADDRESSES: The FAC, including the 

SECG, is available at https://

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Mahruba Uddowla, Procurement 

Analyst, at 703–605–2868 or by email at 

mahruba.uddowla@gsa.gov, for 

clarification of content. For information 

pertaining to status or publication 

schedules, contact the Regulatory 

Secretariat Division at 202–501–4755 or 

GSARegSec@gsa.gov. Please cite FAC 

2022–05, FAR Case 2021–008. 

RULE LISTED IN FAC 2022–05 

Subject FAR case 

Amendments to the FAR Buy 

American Act—Requirements 2021–008 

SUPPLEMENTARY INFORMATION: A 

summary for the FAR rule follows. For 

the actual revisions and/or amendments 

made by this FAR rule, refer to the 

specific subject set forth in the 

document following this summary. FAC 

2022–05 amends the FAR as follows: 

Amendments to the FAR Buy American 

Act Requirements (FAR Case 2021–008) 

This final rule amends the Federal 

Acquisition Regulation (FAR) to 

implement section 8 of E.O. 14005, 

Ensuring the Future Is Made in All of 

America by All of America’s Workers. 

Upon the October 25, 2022, effective 

date, this final FAR rule changes the 

domestic content threshold to 60 

percent immediately, then to 65 percent 

for items delivered starting in calendar 

year 2024, and then to 75 percent for 

items delivered starting in calendar year 

2029. While a supplier that is awarded 

a contract with a period of performance 

that spans this schedule of domestic 

content threshold increases will be 

required to comply with each increased 

threshold for the items in the year of 

delivery, this rule allows for the agency 

senior procurement executive to apply 

an alternate domestic content test under 

which the contractor would be required 

to comply with the domestic content 

threshold in place at time of award for 

the entire life of the contract. 

This final rule also creates a fallback 

threshold that would allow for products 


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Federal Register / Vol. 87, No. 44 / Monday, March 7, 2022 / Rules and Regulations 12799 

and construction material meeting a 55 

percent domestic content threshold to 

qualify as ‘‘domestic’’ under certain 

circumstances. 

In addition, the final rule creates a 

framework for application of an 

enhanced price preference for a 

domestic product/domestic construction 

material that is considered a critical 

item or made up of critical components. 

The list of critical items and critical 

components, along with the associated 

enhanced price preference, will be 

incorporated in the FAR through 

separate rulemaking. 

William F. Clark, 

Director, Office of Government-wide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Government-wide Policy. 

[FR Doc. 2022–04174 Filed 3–4–22; 8:45 am] 

BILLING CODE 6820–EP–P 


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