New Trade Agreements Act Thresholds for Government Contractors

Government contractors should take note of recent changes to the contract-value thresholds that trigger Trade Agreements Act (TAA) compliance requirements. 

The TAA is a domestic sourcing regime that prohibits the federal government from purchasing products and services from countries that are not U.S. trading partners. The TAA also generally exempts contractors from the Buy American Act (BAA) made-in-America preferences and permits the federal government to purchase products from the United States or trading partners called “designated countries.” The non-trading-partner prohibition and BAA exemption only apply if, among other things, the value of the contract exceeds the TAA thresholds, which the FAR Council adjusted in a recent final rule that took effect January 1, 2022. The new thresholds, to be provided in Federal Acquisition Regulation (FAR) 25.402(b), are as follows:


 

Connect with Ice Miller for More Details

If you have questions concerning the impact of this recent development, Ice Miller has extensive experience assisting companies to comply with the TAA, BAA, and FAR. Our team includes Dale Stackhouse, chair of Ice Miller’s International Group and co-chair of its Regulatory Compliance Group, and Christian Robertson, a former U.S. Air Force intelligence officer who regularly advises clients on government contracts matters.

[1] See https://www.govinfo.gov/content/pkg/FR-2021-12-13/pdf/2021-26094.pdf.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.