Gsa Trade Agreement Act

December 10, 2020 – 3:04 am

In early May 2016, the U.S. General Services Administration (GSA) announced to thousands of Federal Supply Schedule (FSS) contract holders that it was increasingly reviewing compliance with the Schedule Holder`s Trade Agreements Act (TAA). These notices, which have received extensive coverage in the trade press, require contractors who have certain FSS contracts to verify the country of origin of the products according to their GSA plans and to remove non-compliant products from their schedules. According to GSA, these notices were fuelled in part by increased congressional verification following violations reported to the TAA. Although the notices were allegedly directed towards certain FSS contracts, these notices are an important warning to all FSS policyholders as well as to all other public contractors submitted to the TAA as to the importance of this issue. Indeed, a number of recent cases of the False Claims Act involving the TAA still illustrate the risks and serious consequences for contractors who do not meet these requirements. Therefore, all flight plan holders and other public contractors subject to the TAA should take this opportunity to ensure that they have appropriate controls in place to ensure that products and services sold to the government are compliant with the AAA. Where the TAA applies, the law and the terms of application prohibit agencies from purchasing products or services that do not originate in the United States or from a “designated country” that has a free trade agreement with the United States. While the list of “designated countries” includes a wide range of countries that are parties to various free trade agreements – including the World Trade Organization (WTO) Public Procurement Agreement (GPA) and some bilateral trade agreements between the United States and individual countries – there are a number of countries (including China and India, two notable examples) that are not “designated countries” for TAA purposes.

The Trade Agreements Act (19 U.S.C. – 2501-2581) of 1979 was passed to promote fair and open international trade, but more importantly, it implemented the requirement that the U.S. government only buy finished manufactured products or certain finished products. This means, in particular, that, under a MAS program, GSA can only purchase products that are compliant in the United States and/or compliant with the TAA. This requirement has always baffled many MAS contract holders as to their actual meaning. The Trade Agreements Act (TAA) was created to promote fair international trade with certain designated countries. Companies that work with foreign products or services need to know which companies are limited to comply with taA and GSA. The U.S. government was required to purchase only U.S.-made products and services or finished products from TAA companies.

If you do these steps, you can better understand what is AAD compliant and what is not. With a system in place you can make sure you can catch any problems before they get out of hand, but in the end, the best thing you can do for your business is talk to a professional if you ever have any questions. An expert in government contracts can help you quickly determine if TAA compliance issues are occurring and lead to a quick fix. If you have a GSA calendar, you must accept that all products or services you sell have been significantly transformed if they come from outside the United States. Therefore, it is important that you choose the right manufacturer if you are looking for someone to provide you with materials. Many companies see a chance to use a GSA calendar, but often ask themselves the question: what is taa compliance and how does it affect my business? In early May 2016, the GSA sent draft letters on Trade Agreements Act (TAA) certifications to multiple Schedule Awards (MAS) holders with product contracts managed by GSA`s Southwest Supply and Acquisition Center (SSAC).

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