[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR25.403]



[Page 492-493]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 25_FOREIGN ACQUISITION--Table of Contents

 

                      Subpart 25.4_Trade Agreements

 

Sec. 25.403  World Trade Organization Government Procurement Agreement and Free Trade Agreements.



    (a) Eligible products from WTO GPA and FTA countries are entitled to 

the nondiscriminatory treatment specified in 25.402(a)(1). The WTO GPA 

and FTAs specify procurement procedures designed to ensure fairness (see 

25.408).

    (b) Thresholds. (1) To determine whether the acquisition of products 

by lease, rental, or lease-purchase contract (including lease-to-

ownership, or lease-with-option-to purchase) is covered by the WTO GPA 

or an FTA, calculate the estimated acquisition value as follows:

    (i) If a fixed-term contract of 12 months or less is contemplated, 

use the total estimated value of the acquisition.



[[Page 493]]



    (ii) If a fixed-term contract of more than 12 months is 

contemplated, use the total estimated value of the acquisition plus the 

estimated residual value of the leased equipment at the conclusion of 

the contemplated term of the contract.

    (iii) If an indefinite-term contract is contemplated, use the 

estimated monthly payment multiplied by the total number of months that 

ordering would be possible under the proposed contract, i.e., the 

initial ordering period plus any optional ordering periods.

    (iv) If there is any doubt as to the contemplated term of the 

contract, use the estimated monthly payment multiplied by 48.

    (2) The estimated value includes the value of all options.

    (3) If, in any 12-month period, recurring or multiple awards for the 

same type of product or products are anticipated, use the total 

estimated value of these projected awards to determine whether the WTO 

GPA or an FTA applies. Do not divide any acquisition with the intent of 

reducing the estimated value of the acquisition below the dollar 

threshold of the WTO GPA or an FTA.

    (c) Purchase restriction. (1) Under the Trade Agreements Act (19 

U.S.C. 2512), in acquisitions covered by the WTO GPA, acquire only U.S.-

made or designated country end products or U.S. or designated country 

services, unless offers for such end products or services are either not 

received or are insufficient to fulfill the requirements. This purchase 

restriction does not apply below the WTO GPA threshold for supplies and 

services, even if the acquisition is covered by an FTA.



[64 FR 72419, Dec. 27, 1999, as amended at 65 FR 36026, June 6, 2000; 67 

FR 21535, Apr. 30, 2002; 67 FR 56123, Aug. 30, 2002; 69 FR 1054, Jan. 7, 

2004; 69 FR 77875, Dec. 28, 2004]