25.404
Least developed countries
For WTO GPA-covered procurements, products and services from least developed countries must be treated as eligible and cannot be excluded based on origin.
Overview
FAR 25.404 requires that, for acquisitions subject to the World Trade Organization Government Procurement Agreement (WTO GPA), products, construction materials, and services originating from least developed countries (LDCs) must be treated as eligible products. This means that LDC-origin goods and services cannot be excluded from consideration solely based on their country of origin, provided they otherwise meet the solicitation requirements. The regulation supports U.S. commitments to international trade agreements and ensures fair access for suppliers from LDCs in covered procurements.
Key Rules
- WTO GPA Coverage
- Applies only to acquisitions covered by the WTO GPA thresholds and requirements.
- Eligibility of LDC Products and Services
- End products, construction material, and services from least developed countries must be considered eligible for award.
Responsibilities
- Contracting Officers: Must ensure that offers of LDC-origin products, materials, and services are evaluated as eligible under WTO GPA-covered procurements.
- Contractors: Should identify and certify the origin of their products and services when submitting offers.
- Agencies: Must comply with international trade obligations and ensure procurement processes do not discriminate against LDC-origin goods and services.
Practical Implications
- This section exists to fulfill U.S. obligations under the WTO GPA and promote economic development in least developed countries.
- It impacts daily contracting by requiring equal treatment of LDC-origin products and services in covered procurements.
- Common pitfalls include failing to recognize WTO GPA applicability or improperly excluding LDC-origin offers.