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FAC 2005-57 Implements Korea Free Trade Agreement

The Civilian Agency Acquisition and Defense Acquisition Regulations Councils have issued Federal Acquisition Circular 2005-57 with one interim rule amending the Federal Acquisition Regulation. The rule implements the United States-Korea Free Trade Agreement (see PL 112-41 and 19 USC 3805 note). The Republic of Korea is already party to the World Trade Organization Government Procurement Agreement, but the new FTA implements a lower procurement threshold. The interim rule adds the Republic of Korea to the definition of "Free Trade Agreement country" in multiple locations in the FAR. Eligible goods and services from Korea are now covered when valued at or above $100,000, rather than at or above the WTO GPA threshold of $202,000. The threshold for the Korea FTA for construction, $7,777,000, is the same as the threshold for the WTO GPA for construction. The Korea FTA $100,000 threshold for supplies and services is higher than the threshold for supplies and services for most of the FTAs ($77,494), but not as high as the Bahrain, Morocco, Oman, and Peru FTA threshold for supplies and services ($202,000). Therefore, new alternates are required for the Buy American Act --Free Trade Agreements --Israeli Trade Act provision and clause (FAR 52.225-3 and FAR 52.225-4) to cover acquisitions that are valued at $77,494 or more but less than $100,000. In that dollar range, all FTAs apply except for the Bahrain, Korea, Morocco, Oman, and Peru FTAs. The interim rule, which also makes minor editorial changes, impacts the following regulations: FAR 4.1202, FAR 25.003, FAR 25.400 - FAR 25.402, FAR 25.1101, FAR 52.204-8, FAR 52.212-3, FAR 52.212-5, FAR 52.225-3 - FAR 52.225-5, FAR 52.225-11, and FAR 52.225-23. The FAC also contains a Small Entity Compliance Guide. The rule is effective March 15, 2012. Comments on the interim rule, identified by FAR Case 2012-004, are due May 7, 2012. For the full text of FAC 2005-57, see 70,002.142.




































































































































































 






 

 

(The news featured above is a selection from the news covered in the Government Contracts Report Letter, which is published weekly and distributed to subscribers of the Government Contracts Reporter. )

     
  
 

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