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  • Question

    In accordance with FAR clause 52.225-9 under (b) domestic preference, the Contracting Officer may add other foreign construction materials....if the Government determines that the cost of domestic construction materials would be unreasonable and exceed 6% of the cost of foreign material. How do I apply the differential that is addressed in (c)(2) in requesting adequate consideration? Is it the differenial addressed in the paragraph 6% the difference between the foreign price and the U.S. price or is it 6% of the cost of the U.S. price?


    Answer

    Since we do not have all of the facts pertaining to your requirement, solicitation/contract or contractor(s), the following answer is based solely on the background and question provided.  As we do not have access to the contract folder or particulars that apply to this situation, we highly recommend you consult the Contracting Officer and possibly the Legal Office.
     
    The clause at FAR 52.225-9(b)(i) states, "The cost of a particular domestic construction material subject to the requirements of the Buy American Act is  unreasonable when the cost of such material exceeds the cost of foreign material by more than 6 percent." Simply put, when the cost of the domestic material is 6 percent higher than the cost of the foreign material. 

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