Class Deviation 2024-O0004 - Implementation of the United States Trade Representative Trade Agreements Thresholds

Status: Archived

Date Issued: 2024-01-01

Signed By: John M. Tenaglia, Principal Director, Defense Pricing and Contracting

Scope: All DoD contracting officers

Applies to DAF/Air Force: Yes

Authority: United States Trade Representative (USTR) trade agreements threshold adjustment authority under the WTO Government Procurement Agreement and applicable free trade agreements

Summary

This deviation implements updated USTR trade agreements thresholds effective January 1, 2024, for calendar years 2024 and 2025. Contracting Officers must use the new threshold table in lieu of Federal Acquisition Regulation (FAR) 25.402(b) and deviation versions of Defense Federal Acquisition Regulation Supplement (DFARS) 252.225-7017 and 252.225-7018. The Korea FTA threshold of $100,000 is now the lowest applicable FTA threshold, requiring revised prescriptions for alternates I, III, IV and V of DFARS 252.225-7036.

Required Contracting Officer Actions

Use the threshold table in Attachment 1 in lieu of the table at FAR 25.402(b) effective January 1, 2024.
Use the deviation version of DFARS clause 252.225-7017, Photovoltaic Devices, in lieu of the standard DFARS clause.
Use the deviation version of DFARS provision 252.225-7018, Photovoltaic Devices Certificate, in lieu of the standard DFARS provision.
Use the alternate I clause at 252.225-7036 when the estimated value is less than $100,000, except for end products in support of operations in Afghanistan.
Use the alternate III clause at 252.225-7036 when the estimated value is less than $100,000 and the acquisition is of end products in support of operations in Afghanistan.
Use the alternate IV clause at 252.225-7036 when the estimated value equals or exceeds $100,000, except for end products in support of operations in Afghanistan.
Use the alternate V clause at 252.225-7036 when the estimated value equals or exceeds $100,000 and the acquisition is of end products in support of operations in Afghanistan.

Affected Provisions and Clauses

252.225-7017, Photovoltaic Devices (Clause)

Prescribed in: 225.7017-4(a)
Change type: REPLACED
Action: Replace the standard DFARS clause with the deviation version reflecting updated dollar thresholds for photovoltaic device restrictions.

252.225-7018, Photovoltaic Devices Certificate (Provision)

Prescribed in: 225.7017-4(b)
Change type: REPLACED
Action: Replace the standard DFARS provision with the deviation version reflecting updated dollar thresholds for photovoltaic device certifications.

Notes

Effective Date: All threshold changes apply to solicitations and contracts issued on or after January 1, 2024.

Duration: This deviation remains in effect until incorporated into the FAR and DFARS or otherwise rescinded.

Korea FTA Threshold: The Korea FTA threshold of $100,000 is unchanged. It is now the lowest USTR FTA threshold. COs should use this as the key breakpoint for 252.225-7036 alternate prescriptions.

Point of Contact: Direct questions to Mr. Greg Snyder at gregory.d.snyder.civ@mail.mil.