Buy American on federal construction bids

Pricing a federal job with imported fixtures, panels or equipment can look cheaper on paper, until the Buy American rules change the math. Here's what the FAR clause says and where estimators get caught.

Key takeaways

A manufactured construction material counts as domestic if the cost of its U.S. components exceeds 65% of the cost of all components for items delivered in 2024-2028, rising to 75% from 2029.
Iron or steel products count as domestic only if foreign iron and steel is less than 5% of the cost of all components.
Exceptions exist for nonavailability, unreasonable cost, public interest and IT that is a commercial product.
When you request an unreasonable-cost exception, the contracting officer adds 20% of the cost of the foreign material to your offered price for evaluation, unless the agency sets a higher percentage.

What counts as domestic

FAR 52.225-9, Buy American - Construction Materials defines domestic construction material. For most manufactured items (not mainly iron or steel), the material must be made in the United States and "the cost of its components mined, produced, or manufactured in the United States exceeds 60 percent of the cost of all its components, except that the percentage will be 65 percent for items delivered in calendar years 2024 through 2028 and 75 percent for items delivered starting in calendar year 2029." Components of unknown origin "are treated as foreign." COTS items made in the U.S. also qualify.

For material that is "wholly or predominantly of iron or steel," it qualifies only if "the cost of foreign iron and steel constitutes less than 5 percent of the cost of all components."

The exceptions

FAR 25.202, exceptions for construction material lets the contracting officer allow foreign construction material when:

applying the rule would be impracticable or inconsistent with the public interest (as determined by the head of the agency);
the material isn't available in the U.S. "in sufficient and reasonably available commercial quantities of a satisfactory quality";
the cost of domestic material is unreasonable under FAR 25.204; or
the item is information technology that is a commercial product.

The 20% evaluation factor

Under FAR 25.204, evaluating offers of foreign construction material, for material that isn't a critical item, "the contracting officer shall add to the offered price 20 percent of the cost of any foreign construction material proposed for exception" on unreasonable-cost grounds, unless the agency specifies a higher percentage. Critical items get an additional preference factor. In a tie, the offer without that excepted foreign material wins.

Estimator checklist

Find the Buy American clause in the solicitation and any materials the Government already listed as excepted.
Ask suppliers for domestic-content documentation on big-ticket manufactured items.
If you plan to request an exception, include the information the clause requires (description, unit, quantity, price and more) with your offer.
Price a domestic alternate so a denied request doesn't blow up your number.

General information, not legal advice. Check the solicitation for trade agreement clauses, which can change the rules. Sources: FAR 52.225-9, Buy American - Construction Materials; FAR 25.202, exceptions for construction material; FAR 25.204, evaluating offers of foreign construction material.

Published October 31, 2026. We do not use affiliate links on this page; see our Affiliate Disclosure.