...offeror declines to certify compliance, as required, with a material term of the solicitation, in this case the TAA, such that the proposal consequently fails to establish a legal obligation to comply with that material term.”14
Enforcement of the TAA has received a great deal of attention at the Department of Justice as well as at the General Services Administration (“GSA”) particularly with respect to contractors that have a GSA Schedule. The GSA announced15 that a press release (source unidentified) dated February 10, 2006 about another office products contractor reaching a $5.02 million settlement with the Department of Justice over violations of U.S. trade regulations. That brings the total to (5) five office products contractors having reached settlements with a combined value of nearly $30 million. The contractors ranged from large businesses to 8(a) and veteran-owned small businesses. There is no preferential treatment under the TAA for small businesses.
Remember that “in solicitation provision FAR 52.212-3(f)(2), Offeror Representations and Certifications-Commercial Items, you must include a list of those offered items that are obtained from sources other than the U.S. or a designated country.” If an item is not listed, it is deemed to be compliant with the TAA.
If, in fact, an item not listed is later determined to be from a non-designated country or not from the U.S., you can be subject to sanctions or prosecution by the Department of Justice. Therefore, in this age of heightened surveillance of foreign products and services, and foreign companies, you may have a contract cancelled if you fail to provide the proper TAA certification. Don't take a chance - be sure you list all products that are obtained from other than a designated country or the U.S.
Tom Petruska, Owner
Contracts Unlimited, Incorporated
Do you need assistance with Trade Agreements Act compliance or other contracting issues?
This discussion should not be interpreted as legal advice or a legal opinion. Please consult with an attorney for a legal opinion.
