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  • Question

    If a LUMP SUM contract (total value above say $1 million) contains component(s), where the total material costs of the individual component(s) is less than the micro purchase threshold of $3000, does the BAA apply?


    Answer

    Based on your description, the Buy American Act would apply. The application of the Buy American Act, FAR Subpart 25.2 -- Construction Materials, applies to the materials used in a contract for the construction, alteration, or repair of any public building or public work in the United States. The individual material cost is not a factor in determining the coverage of the Buy American Act for construction materials. The Mini-split air conditioner from Thailand may meet the requirements for a waiver of commercially available off-the-shelf (COTS) items.

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