Trade Agreements Act / Made in America

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Presentation transcript:

Trade Agreements Act / Made in America An overview of Region 7 activities in FY16-FY17 presented by Steve Nieswiadomy and Mark Sims

WHAT IS TAA? The Trade Agreements Act (TAA) was passed in 1979 to approve and implement various trade agreements negotiated between the U.S. and other countries. Under the TAA the President has the authority to waive the Buy American Act (BAA) requirements for some procurements. This authority has been delegated by the President to the U.S. Trade Representative (USTR). It restricts purchases of supplies and services to U.S.-made End Products and services or Designated Country End Products and services (with exceptions).

Where Is Guidance? TAA, found in FAR Subpart 25.4, applies to U.S. Government acquisitions. The current threshold for the applicability of the Trade Agreements Act (for a supply or service contract) is up to $191,000. The U.S. Trade Representative revises this threshold approximately every two years (refer to FAR 25.402(b)).

DEFINE COUNTRY OF ORIGIN PRODUCT -- MANUFACTURING SITE SERVICES – COUNTRY FIRM IS ESTABLISHED

TRADE AGREEMENTS CLAUSES IN SCHEDULE CONTRACT Federal Supply Schedules program is determined to meet the applicable TAA threshold Applicable contractual clauses: • 52.225-5 Trade Agreements; 52.212-3(g)(4) Offeror Representations and Certifications --- Commercial Items (includes 52.335-6 certification); SCP-FSS-003 Specific Proposal Instructions for Products; SCP-FSS-004 Specific Proposal Instructions for Schedule 70.

FAR 25.4 “The contracting officer shall determine the origin of services by the country in which the firm providing the services is established.” Eligible products from World Trade Organization Government Procurement Agreement (WTO GPA) Free Trade Agreement (FTA) countries; Least developed countries per U.S. Trade Representative; Caribbean Basin Trade Initiatives (CBTI); Israeli Trade Act; Countries party to The Agreement on Trade in Civil Aircraft.

2016 TAA/MiA INQUIRIES CONGRESSIONAL INQUIRIES MEDIA REPORTS Sen. Shumer Sen. Griffo Rep. McKinley MEDIA REPORTS Bloomberg News ABC World News Tonight OTHER EXTERNAL INQUIRIES Competitors – Sherrill Manufacturing Third parties – TINA.org

R7 MANAGEMENT RESPONSE C.O. TRAINING IN AREAS OF: Enhanced surveillance and investigation emphasis Attention to IOA reports QV standardized templates U.S. Production Dashboard SIP files best practices Briefings w/ management and staff TAA/MiA training across FAS Bi-Monthly review of GSA Advantage! files

RESPONSIBILITIES OF MAS VENDORS Certify TAA compliance prior to award Ensure only TAA compliant products are offered/delivered Must provide an acceptable Letter of Commitment/Supply when the offeror is not the manufacturer of proposed products Must accurately list each product’s country of origin on Advantage! May make “substantial transformation” determinations on their own, request an opinion from a 3rd-party expert, or go to the Office of Regulations and Rulings within CBP (cbp.gov) Report TAA/MiA violations to C.O. for investigation

RESULTS OF INVESTIGATIONS Report of non-compliant part numbers on Region 7 Advantage files results: September 2016 3600 hits November 2016 2700 hits December 2016 1500 hits Februray 2017 1200 hits

LESSONS LEARNED SIP “replace” versus “change” file Manufacturer part number facilitates compliance Letters of Supply – Manufacturers move production Recertify Country of Origin Consequences can be severe

POTENTIAL CONSEQUENCES TO NON-COMPLIANCE WITH TAA (MAS) Corrective Action Plan Delete Items Cure Notice Cancel Contract Refer to OIG Evaluate in CPARS

POINTS OF CONTACT Schedule 56 – Mataya Jordan, Section Chief Michael Johns, Senior CO Schedule 66 – Richard Armstead, Section Chief Laura Wair, Senior CO Schedule 73 – Steve Nieswiadomy, Section Chief Schedule 84 – Teresa Hill, Section Chief Special Purpose Clothing Daniel Stafford, Section Chief, Security Bryon Boyer, Section Chief Law Enforcement Jonathan Woodcock, Senor CO

QUESTIONS and ANSWERS