QUESTION AND ANSWER.docx

QUESTION AND ANSWER

Inquiry ID: 9414441(display only)

b. Comment Classification: Controlled Unclassified Information (CUI)

c. Design Discipline: Equipment

d. Spec Section: 00 72 00

e. Drawing Sheet/Detail: n/a n/a

f. Inquiry Text: Under paragraph 1.72 *FAR 52.225-11 BUY AMERICAN-CONSTRUCTION MATERIALS UNDER TRADE AGREEMENTS (OCT 2019), the "Designated country" definition lists countries of the World Trade Organization Government Procurement Agreement (WTO GPA). Further down under the definition for "WTO GPA country construction material" (2)(b)(1) states that "[t]herefore, the Buy American restrictions are waived for designated construction materials." We assume that construction materials and/or components from the foreign countries listed under the "Designated county" definition could be used without further restrictions should a system have assembled components using both American produced/fabricated products and other countries within that list. Will the Government verify this is accurate?

ANSWER:

This assumption may be correct depending on the circumstances. In pertaining to assemblies used for construction derived from a WTO GPA country, the clause 25.225-11 states:

“(2) In the case of a construction material that consists in whole or in part of materials from another country, has been substantially transformed in a WTO GPA country into a new and different construction material distinct from the materials from which it was transformed.”

Since WTO GPA countries of origin have an exemption to the Buy American Act, items that are of a combination of US manufactured products and foreign components from a WTO GPA country would be acceptable so long as the material has been substantially transformed in and by a WTO GPA country.

Further, the clause states:

“Domestic construction material means… …(A) The cost of its components mined, produced, or manufactured in the United States exceeds 55 percent of the cost of all its components. Components of foreign origin of the same class or kind for which nonavailability determinations have been made are treated as domestic. Components of unknown origin are treated as foreign”

Therefore, if a material consists of both US and WTO GPA country components but is ether a) 55% of the cost of the components are US manufactured, or b) substantially transformed from non WTO GPA materials in a WTO GPA country, then that material would be compliant with the Buy American Act.

"please also see amendments 0008 and 0009 for clarification."