General
FAR 25.402 requires contracting officers to apply trade agreement waivers and consider eligible foreign offers equally with domestic offers when acquisitions meet specific dollar thresholds.
Overview
FAR 25.402 outlines the general framework for applying trade agreements to federal acquisitions, including the waiver of the Buy American statute for eligible products and services from countries with which the U.S. has trade agreements. The section explains that the President, via the U.S. Trade Representative, can waive certain domestic preference laws for products and services from designated countries, ensuring equal consideration with domestic offers in covered procurements. It also clarifies that the origin of services is determined by the country where the providing firm is established. The section provides a detailed table of dollar thresholds for various trade agreements, which dictate when these waivers and equal treatment provisions apply. These thresholds are updated approximately every two years and vary by agreement and contract type (supplies, services, construction).