BAA/TAA - Designated Countries + Components

Assuming 52.225-11 is the correct clause (the contract is over the TAA threshold), then your obligation is to deliver either domestic construction material, or designated country construction material. To meet the definition of "domestic", it must be manufactured in the US, and have at least 60% US-manufactured content. The content requirement is waived if the construction material is COTS. If you are buying all your components from designated countries, it sounds unlikely that you will meet the 60% US content test.

Yes, this places a higher standard on construction material manufactured in the US, because there is no content requirement material from a designated country. That's the way the clause works, and it has been that way for a long time. I don't know whether Congress wrote it that way, but that's how it is implemented in the FAR.

Thank you @Fara Fasat.

Another question: Under the same facts (and yes, the TAA clause applies), but instead of manufacturing the construction material, we are manufacturing a component that our customer will manufacture into the final construction material at its facility in the US. Could we source raw material from a designated country to use in manufacturing our component? Could we source it from a non-designated country (e.g. China or Russia)? Does the answer change if the raw material is iron/steel?

If you make a component to the prime's construction material, then your raw material is a subcomponent, and there is no BAA restriction on that. You need to tell the prime the COO of the product you are making (presumably the US) so that the prime can calculate the US content of its construction material. Be aware though of other statutory prohibitions on certain products from China and Russia. Too detailed to go into here.

As for iron and steel, that depends on whether the construction material it is going into consists wholly or predominantly of iron or steel. This is now getting too fact-specific for this forum. You need an in-depth discussion with an expert in the BAA/TAA.

Fara Fasat said:

You need an in-depth discussion with an expert in the BAA/TAA.

Yes, indeed. You would need a “Philadelphia lawyer”.

China and Russia are no go.

Thanks