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    The KO and I are trying to gain clarity on TAA. The responses we received are all non-TAA compliant. The customer did not specify if these products had to TAA complaint. When looking at FAR 25.402(b) WPO GPA for supply contract is $180K. Does this amount apply to the countries listed in the table?


    Answer

    According to 25.003 Definitions, Designated country means any of the following countries:

               (1) A World Trade Organization Government Procurement Agreement (WTO GPA) country (Armenia, Aruba, Australia, Austria,, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in the World Trade Organization as "the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei)"), Ukraine, or United Kingdom)

    Also, in the definitions, it states that a designated country end product means a WTO GPA country end product, an FTA country end product, a least developed country end product, or a Caribbean Basin country end product.

    Also, keep in mind the following exceptions: FAR 25.401 Exceptions.

          (a) This subpart does not apply to-

               (1) Acquisitions set aside for small businesses;

               (2) Acquisitions of arms, ammunition, or war materials, or purchases indispensable for national security or for national defense purposes;

               (3) Acquisitions of end products for resale;

               (4) Acquisitions from Federal Prison Industries, Inc., under subpart  8.6, and acquisitions under subpart  8.7, Acquisition from Nonprofit Agencies Employing People Who Are Blind or Severely Disabled; and

               (5) Other acquisitions not using full and open competition, if authorized by subpart  6.2 or 6.3, when the limitation of competition would preclude use of the procedures of this subpart; or sole source acquisitions justified in accordance with 13.501(a).

    Bottom line: the $182K amount applies to the WTO GPA countries.  These countries are listed in the WTO GPA definition.  The other thresholds provided in the table at FAR 25.402 are for other trade agreements such as FTA.  You did not provide the dollar value of your acquisition, but to determine whether your acquisition is covered by the WTO GPA or FTA, you need to compare the value of your acquisition (following the guidance in FAR 25.403(b) for calculating the total value of your acquisition) against the thresholds in the table.  This is assuming that your acquisition includes a designated country end product as defined by the FAR and assuming none of the exceptions at FAR 25.401 apply.  Due to the complexity involved with trade agreements, we strongly recommend consulting with your legal office to ensure any legal implications of trade agreements on your acquisition are fully understood.

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