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Waiver category

Unreasonable Cost Waiver

A waiver granted when including US-produced materials would increase the cost of the overall project by more than 25 percent.

Objective test: Domestic preference would increase overall project cost by more than 25 percent

The objective test

Domestic preference would increase overall project cost by more than 25 percent.

What the applicant must show

The inclusion of domestically produced materials will increase the cost of the overall project by more than 25 percent.

A waiver is not compliance

An item that fails its standard but matches this category is marked waiver-eligible in a determination. That is a prompt to assemble the evidence and file the request with the funding agency, not a green light to use the item. Treating waiver-eligible as a pass is exactly what shows up in an audit.

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