GSA Showing Signs of Renewed Focus on TAA Compliance under Trump Administration
In February, 2017, President Donald J. Trump addressed a joint session of Congress for the first time and outlined his plan for a “new chapter of American greatness.” That plan included renewed emphasis on protecting United States labor and manufacturing and can be summarized in the words he repeated often: “Buy American and Hire American”. There is a significant likelihood that enforcement of requirements for domestic sourcing and content, including the Trade Agreements Act (TAA) (19 U.S.C. §§ 2501–2581) and the Buy American Act (BAA) (41 U.S.C. §§ 8301–8305) will be a priority of the Trump Administration.
With this, TAA and BAA compliance has already gained renewed focus in the GSA contracting community.
What is TAA?
TAA essentially provides that agencies of The United States Government may acquire only “U.S. made or designated country end products.” The Act requires contractors to certify that each end product meets the applicable requirements. “End products” are defined as “those articles, materials and supplies to be acquired from certain designated (foreign) countries with which the United States has negotiated a trade agreement where the procurement is valued in excess of a specified dollar threshold (see FAR 25.402). Under the current Federal Acquisition Regulations (FAR), products and construction materials derived from a Trade Agreement “designated country” must be manufactured or “substantially transformed” within that country (see FAR 25.4, 52.225-5, 52.225-11). “Non-designated countries” include several countries that are major suppliers of goods or services to the U.S. market such as: China, India, Malaysia, and Thailand.
The TAA provides an exception to the Buy American Act (BAA), which is intended to promote the acquisition of “domestic [US] end products”. In other words, where the TAA applies, the BAA does not apply. The penalties for failing to comply with the TAA where required can be anywhere from a hefty fine to exclusion from government contracting depending on the severity of the offense.
For over a decade Sole Source Technology™ (SST) has been the choice for many Federal Government VARS, providing TAA compliant products and greatly simplifying the supply chain. SST offers:
- Unparalleled experience supporting US Government IT procurement
- Support for GSA schedule through Letter of Supply (LOS)
- Long term product & pricing support for contracts
- Product shipped to all major GWACs
To ensure full compliance, SST provides complete certification and traceability to the source, so resellers and contractors can procure with confidence™. To receive confirmation of TAA compliance for a specific SST product, please contact the SST Customer Service Team at (855) 951-6901 or contact us at Sales@SoleSourceTech.com.
TAA Designated Countries
World Trade Organization (WTO) Government Procurement Agreement Countries
Armenia, Aruba, 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, 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)”), or United Kingdom
Free Trade Agreement Countries
Australia, Bahrain, Canada, Chile, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Oman, Panama, Peru, or Singapore
Caribbean Basin Countries
Antigua and Barbuda, Aruba, Bahamas, Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, St. Eustatius, St. Marten, or Trinidad and Tobago
Least Developed Countries
Afghanistan, Angola, Bangladesh, Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste, Togo, Tuvalu
Non-TAA Designated Countries
China, India, Indonesia, Iran, Iraq, Malaysia, Pakistan, Russia, Sri Lanka