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  • Question

    In a LUMP SUM contract (total value above say $1 million), if the contractor plans to buy Canadian steel... 1. Is there any test required (i.e. Add 6% for large business or 12% for large business)? 2. Can the allowance, restriction be discussed/elaborated upon?


    Answer

    See FAR Subpart 25.204 Evaluating Offers of Foreign Construction Material and exceptions for unreasonable cost at FAR Supbart 25.202. Canadian Steel could be allowed if the contracting officer concludes that the domestic construction material (steel), covered by the Buy American Act, is unreasonable if the cost exceeds the cost of foreign material by more than 6 percent.

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