Trade Agreements Thresholds (FAR Case 2012-002)
Summary:
FAC 2005-56 includes a final rule amending the Federal Acquisition Regulation (FAR) to incorporate adjusted thresholds for application of the World Trade Organization Government Procurement Agreement and the Free Trade Agreements, as determined by the United States Trade Representative.
Supplementary Information:
I. Background
Every two years, the trade agreements thresholds are adjusted according to a pre-determined formula set forth in the agreements. The United States Trade Representative has specified the following new thresholds in the Federal Register (see 76 FR 76808, published on December 8, 2011):
Trade Agreement | Supply contract (equal to or exceeding) | Service contract (equal to or exceeding) | Construction contract (equal to or exceeding) |
WTO GPA | $202,000 | $202,000 | $7,777,000 |
FTAs: | |||
Australia FTA | 77,494 | 77,494 | 7,777,000 |
Bahrain FTA | 202,000 | 202,000 | 10,074,262 |
CAFTA-DDR (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua) | 77,494 | 77,494 | 7,777,000 |
Chile FTA | 77,494 | 77,494 | 7,777,000 |
Morocco FTA | 202,000 | 202,000 | 7,777,000 |
NAFTA: | |||
- Canada | 25,000 | 77,494 | 10,074,262 |
- Mexico | 77,494 | 77,494 | 10,074,262 |
Oman | 202,000 | 202,000 | 10,074,262 |
Peru FTA | 202,000 | 202,000 | 7,777,000 |
Singapore FTA | 77,494 | 7,777,000 | |
Israeli Trade Act | 50,000 |
II. Discussion and Analysis
This final rule implements the new thresholds in FAR subpart 25.4, Trade Agreements, and other sections in the FAR that include trade agreements thresholds (i.e., 22.1503, 25.202, 25.603, 25.1101, and 25.1102).
In addition, changes are required to FAR clause 52.204-8, Annual Representations and Certifications, and FAR clause 52.222-19, Child Labor-Cooperation with Authorities and Remedies. Conforming changes are also required to the clause dates in FAR clause 52.212-5, Contract Terms and Conditions Required to Implement Statutes or Executive Orders-Commercial Items, and FAR clause 52.213-4, Terms and Conditions-Simplified Acquisitions (Other Than Commercial Items).
Dates:
The Effective Date for this final rule is 2 March 2012.
Click here to read the entire Federal Register notice for this rule.
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