25.401
Exceptions
FAR 25.401 identifies specific acquisitions and services that are exempt from trade agreement requirements, ensuring contracting professionals apply Subpart 25.4 only when appropriate.
Overview
FAR 25.401 outlines specific exceptions to the applicability of Subpart 25.4, which governs trade agreements in federal acquisitions. This section details when the requirements of Subpart 25.4 do not apply, including certain types of acquisitions and specific services excluded under various trade agreements. It provides a table listing services that are excluded from coverage under the World Trade Organization Government Procurement Agreement (WTO GPA) and various Free Trade Agreements (FTAs), clarifying which services and acquisitions are exempt from trade agreement procedures.
Key Rules
- General Exceptions
- Subpart 25.4 does not apply to acquisitions set aside for small businesses, national security-related purchases, end products for resale, certain Federal Prison Industries and nonprofit agency acquisitions, non-competitive acquisitions under specific FAR subparts, and goods/services excluded by individual trade agreements.
- Service Exclusions by Trade Agreement
- The section provides a detailed table of services (e.g., military support, telecommunications, dredging, R&D, transportation, utilities, ship repair) that are excluded from coverage under the WTO GPA and various FTAs, with exclusions varying by agreement and service type.
Responsibilities
- Contracting Officers: Must determine if an acquisition falls under any of the listed exceptions before applying Subpart 25.4 procedures; must consult the table and agency regulations for service exclusions.
- Contractors: Should be aware of exceptions that may affect eligibility or requirements for certain procurements, especially regarding trade agreement coverage.
- Agencies: Must maintain awareness of agency-specific exclusions and supplementary regulations negotiated under trade agreements.
Practical Implications
- This section helps contracting professionals quickly identify when trade agreement requirements do not apply, avoiding unnecessary compliance steps. Misapplying Subpart 25.4 can lead to procurement delays or compliance issues. Common pitfalls include overlooking service exclusions or failing to recognize set-aside or national security exceptions.