GSA Schedule
Compliance with the
Trade Agreements
Act (TAA)
Implementation of the Trade Agreements Act (TAA) has been a hot topic among GSA schedule contractors in
recent years. A number of contractors have settled highly publicized False Claims Act actions. The settlements
were based upon allegations that the companies misrepresented the country of origin (COO) of products
delivered under the contract. All indications are that TAA compliance will continue to be a priority at GSA. This
whitepaper provides information to help Schedule contractors understand their TAA obligations.
What does the Act require?
Products delivered under the contract must be:
Wholly the growth, product, or manufacture of the U.S. or a designated country
Substantially transformed into a new and different article of commerce in the US or a designated country
When does TAA apply?
Every GSA schedule contract contains clauses implementing TAA.
TAA applies to acquisitions that exceed $203,000 ($7,804,000 for construction contracts). This threshold is
subject to revision by the U.S. Trade Representative approximately every 2 years. GSA applies the TAA threshold
based on the total value of the entire GSA schedule, not the value of an individual company's contract.
Are there special requirements for GSA schedule holders?
Some GSA solicitations require that an offeror submit a description of the system that it uses to assure TAA
compliance and describe how it monitors the system. If an offeror is a reseller it must obtain written assurance
from suppliers that all products shipped will be TAA compliant.
How does the government decide if an item is TAA compliant?
The contracting officer relies on the contractor's self certification. Determining a product's country of origin can be
complex when an item is made of many components, with manufacturing and assembly processes occurring in
various countries. Industry and Federal agencies rely on decisions of U.S. Customs and Border Protection
(customs) in determining if, a product has been substantially transformed. To determine whether a particular
product has been substantially transformed customs looks at the totality of the circumstances. Some factors that
Customs considers include:
The complexity of manufacturing or assembly processes
Whether manufacturing processes result in a dramatic change in the character or functionality of the
product
Whether manufacturing processes result in a product with a different name, character, or use than that of
the item from which it was transformed
Can a contractor get help in determining whether an item has been substantially transformed?
Customs maintains a searchable database of its decisions. http://rulings.cbp.gov/. Contractors may also
request an opinion from third party experts. Washington Management Group (WMG) consultants can assist
clients in determining a product's country of origin. A contractor can also request that customs make a
determination about particular products. Only customs can make an official TAA determination.
Where can I find a list of Designated Countries?
The Federal Acquisition Regulations contain a list of designated countries at section 25.003. Some notable
countries not on the list include China, India and Malaysia.
Does TAA apply to a contract for Services?
TAA applies in contracts for services. The impact of the Act is, however, significantly less than in contracts for
products. A recent GAO decision confirmed that for services, country of origin is determined based on where a
company is legally established, not on the location from which the service is ultimately provided.
GSA Schedule Compliance with TAA | ©Deltek 2012, All Rights Reserved
What can a contractor do to enhance its ability to comply with TAA?
Document your manufacturing processes
Require notification to your GSA Contracts administrator when there is any manufacturing change that
affects country of origin
Require suppliers to periodically certify country of origin; require suppliers to promptly notify your GSA
Contracts administrator of any changes in country of origin
Use the Modifications clause to promptly delete non-compliant products
Contact a GSA or VA Schedule Consultant to Win More Business
Washington Management Group is the leading GSA and VA Schedule contract consulting firm in the nation. We
provide hands-on assistance in ensuring your compliance while minimizing your risk with a GSA or VA Schedule
Contract.
As part of your federal business team, we provide a dedicated consultant who works with GSA and VA on your
behalf. We help you develop a sound pricing strategy. We prepare and submit your Schedule Contract offer, we
revise your schedule contract when modifications are necessary, and manage your contract to ensure compliance
demands are met.
With more than 33 years of experience, no other consulting company has our subject matter expertise, level of
experience, and understanding of government and industry. No other firm is more adept at maneuvering within
the complex world of government contracting.
Get a GSA Schedule. Manage your GSA Schedule. Contact WMG Today.
Visit WashMG.com, call 866-964-9200 or email info@washmg.com
About The Washington Management Group (WMG)
Headquartered in Washington, DC, with offices in Portland, Oregon, The Washington Management Group (WMG) is the leading GSA and VA
Schedule contract consulting firm in the nation. WMG specializes in the General Services Administration (GSA) and Veterans' Affairs (VA)
Multiple Award Schedules Program. We drive growth within your company by offering a hands-on approach to obtaining and maintaining your
GSA and VA Schedule Contract.
About Deltek
WMG was acquired by Deltek in April, 2011. Deltek (Nasdaq: PROJ) is the leading global provider of enterprise software and information
solutions for professional services firms and government contractors. For decades, we have delivered actionable insight that empowers our
customers to unlock their business potential. Over 14,500 organizations and 1.8 million users in approximately 80 countries around the world
rely on Deltek to research and identify opportunities, win new business, optimize resources, streamline operations, and deliver more profitable
projects. Deltek – Know more. Do more.® www.deltek.com
GSA Schedule Compliance with TAA | ©Deltek 2012, All Rights Reserved