25.406 Israeli Trade Act
Source: FAR 25.406 on acquisition.gov
For most federal supply acquisitions between $50,000 and the WTO GPA threshold, Israeli end products must be evaluated without Buy American Act restrictions, unless the agency is specifically excluded.
Overview
FAR 25.406 implements the Israeli Trade Act for federal acquisitions of supplies valued at $50,000 or more but below the WTO Government Procurement Agreement (GPA) threshold. For most agencies (excluding DOD, DOE, DOT, Bureau of Reclamation, Federal Housing Finance Board, and Office of Thrift Supervision), offers of Israeli end products must be evaluated without applying Buy American Act restrictions. This provision ensures that Israeli products are given equal consideration in federal procurements within the specified value range. The Act does not restrict agencies from purchasing other foreign end products, maintaining flexibility in sourcing.
Key Rules
- Applicability Thresholds
- Applies to supply acquisitions valued at $50,000 or more but below the WTO GPA threshold.
- Agency Exclusions
- Does not apply to DOD, DOE, DOT, Bureau of Reclamation, Federal Housing Finance Board, or Office of Thrift Supervision.
- Evaluation of Israeli End Products
- Covered agencies must evaluate Israeli end products without Buy American Act restrictions.
- No Prohibition on Other Foreign Products
- Agencies may still purchase other foreign end products if desired.
Responsibilities
- Contracting Officers: Must identify if the acquisition falls within the value range and agency scope, and ensure Israeli end products are evaluated without Buy American Act restrictions.
- Contractors: Should identify and properly designate Israeli end products in their offers.
- Agencies: Must ensure compliance with the Israeli Trade Act and maintain documentation of evaluation procedures.
Practical Implications
- This section promotes fair competition for Israeli products in U.S. federal procurements within the specified value range.
- Contractors offering Israeli end products gain a competitive advantage as Buy American restrictions do not apply.
- Common pitfalls include misidentifying the applicable value range or agency exclusions, leading to compliance issues.
Acquisitions of supplies by most agencies are covered by the Israeli Trade Act, if the estimated value of the acquisition is $50,000 or more but does not exceed the WTO GPA threshold for supplies (see 25.402(b)). Agencies other than the Department of Defense, the Department of Energy, the Department of Transportation, the Bureau of Reclamation of the Department of the Interior, the Federal Housing Finance Board, and the Office of Thrift Supervision must evaluate offers of Israeli end products without regard to the restrictions of the Buy American statute. The Israeli Trade Act does not prohibit the purchase of other foreign end products.