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ARRA Buy America Construction Contract

alswanson9

Posted 01 March 2011 - 01:47 PM

How do you disclose or document an exemption provided for by 52.225-23?

Federal construction contract for a federal building, total contract value greater than $7,443,000
Purchase of construction materials from Germany and France

52.225-23 (B)(2) Contractor will use only domestic or Recovery Act designated country construction material.

GSA engineer has requested "justification"

Thoughts?

Don Mansfield

Posted 01 March 2011 - 03:08 PM

Show the GSA engineer the clause. It clearly permits use of Recovery Act designated country construction material. What do you think you need to "justify"?

Note: The views expressed in this post do not necessarily reflect the views of DAU.


Jacques

Posted 01 March 2011 - 04:59 PM

For those of you like me that don't spend a lot of time thinking about domestic source restrictions, here's my "unpacking" of what has been said thus far:

It sounds like either the solicitation or contract includes FAR 52.225-23. It sounds like someone from GSA is requesting information from the original poster on why the domestic source restrictions do not preclude use of construction materials from Germany and France. Don points out this is a ridiculous request.

FAR 52.225-23 is used in solicitations and contracts for construction that is performed in the United States valued at $7,804,000 or more when using funds appropriated under the Recovery Act. FAR 25.1102(e)(1), FAR 25.1102( c ).

In terms of manufactured construction material: When trade agreements apply, FAR 25.602-1(a)(2) permits use of Recovery Act funds for construction of a public work located in the United States where the manufactured contraction material is either wholly the product of or is substantially transformed in a "Recovery Act designated country." "Recovery Act designated countries" include Germany and France, as both are World Trade Organization Procurement Agreement countries. FAR 25.601, 25.003. FAR 52.225-23, at para (b)(1), points out, "The restrictions of section 1605 of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5) (Recovery Act) do not apply to Recovery Act designated country manufactured construction material."

In terms of unmanufactured construction material: When trade agreements apply, FAR 25.602-2 permits use of unmanufactured construction material mined or produced in a designated country. Germany and France are both "designated countries." FAR 25.601, 25.003. FAR 52.225-23, at para (b)(1), points out, "The restrictions of the Buy American Act do not apply to designated country unmanufactured construction material."

Trade agreements apply except as provided in FAR 25.401 & 25.402.

If I've mischaracterized, I trust alswanson9 or Don will correct me.

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