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OFFICE OF THE UNDER SECRETARY OF DEFENSE
3000 DEFENSE PENTAGON
WASHINGTON, DC 20301-3000
ACQUISITION
AND SUSTAINMENT
In reply refer to
DARS Tracking Number: 2024-O0004
MEMORANDUM FOR COMMANDER, UNITED STATES CYBER
COMMAND (ATTN: ACQUISITION EXECUTIVE)
COMMANDER, UNITED STATES SPECIAL OPERATIONS
COMMAND (ATTN: AQUISITION EXECUTIVE)
COMMANDER, UNITED STATES TRANSPORTATION
COMMAND (ATTN: ACQUISITION EXECUTIVE)
DEPUTY ASSISTANT SECRETARY OF THE ARMY
(PROCUREMENT)
DEPUTY ASSISTANT SECRETARY OF THE NAVY
(PROCUREMENT)
DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
(CONTRACTING)
DEFENSE AGENCY AND DOD FIELD ACTIVITY DIRECTORS
SUBJECT: Class Deviation—Implementation of the United States Trade Representative Trade
Agreements Thresholds
Effective January 1, 2024, contracting officers shall use the table in attachment 1 in lieu
of the table at FAR 25.402(b) to implement the new United States Trade Representative (USTR)
trade agreements thresholds. Contracting officers shall use the provision and clause in
attachment 2 in lieu of the DFARS provision at 252.225-7018, Photovoltaic Devices Certificate,
and the DFARS clause at 252.225-7017, Photovoltaic Devices. In addition, contracting officers
shall use the following prescriptions for alternates I, III, IV, and V of the clause at 252.225-7036,
Buy American—Free Trade Agreements—Balance of Payments Program, in lieu of the
prescriptions at DFARS 225.1101(10)(i)(B), (D), (E), and (F):
• Use the alternate I clause in solicitations and contracts when the estimated value is
less than $100,000, except if the acquisition is of end products in support of
operations in Afghanistan.
• Use the alternate III clause in solicitations and contracts 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 in solicitations and contracts when the estimated value equals
or exceeds $100,000, except if the acquisition is of end products in support of operations
in Afghanistan.
• Use the alternate V clause in solicitations and contracts when the estimated value equals or
exceeds $100,000 and the acquisition is of end products in support of operations in
Afghanistan.
Class Deviation 2024-O0004
Implementation of the United States Trade Representative
Trade Agreements Thresholds
Approximately every two years, the trade agreements thresholds for the World Trade
Organization Government Procurement Agreement and the free trade agreements (FTAs) are
adjusted according to predetermined formulae under the agreements. This class deviation
implements the new USTR trade agreements thresholds effective on January 1, 2024, for
calendar years 2024 and 2025. The Korea FTA threshold of $100,000 is unchanged and is now
the lowest USTR FTA threshold applicable. Therefore, the prescriptions for alternates I, III, IV,
and V of the clause at 252.225-7036 are revised accordingly.
This class deviation remains in effect until incorporated into the FAR and DFARS or
until otherwise rescinded. My point of contact is Mr. Greg Snyder, who is available at
gregory.d.snyder.civ@mail.mil.
for
John M. Tenaglia
Principal Director,
Defense Pricing and Contracting
Attachments:
As stated
2
Attachment 1
Class Deviation 2024-O0004
Implementation of the U.S. Trade Representative Trade Agreements Thresholds
Trade Agreement Supply Contract Construction Contract
(equal to or (equal to or exceeding)
exceeding)
WTO GPA $183,000[174,000] $7,032,000[6,708,000]
FTAs:
Australia $92,319[102,280] $7,032,000[6,708,000]
Bahrain $183,000[174,000] $12,001,460[13,296,489]
CAFTA-DR (Costa $92,319[102,280] $7,032,000[6,708,000]
Rica, Dominican
Republic, El
Salvador,
Guatemala,
Honduras, and
Nicaragua)
Chile $92,319[102,280] $7,032,000[6,708,000]
Colombia $92,319[102,280] $7,032,000[6,708,000]
Korea $100,000 $7,032,000[6,708,000]
Morocco $183,000[174,000] $7,032,000[6,708,000]
Panama $183,000[174,000] $7,032,000[6,708,000]
Peru $183,000[174,000] $7,032,000[6,708,000]
Singapore $92,319[102,280] $7,032,000[6,708,000]
USMCA
-Mexico $92,319[102,280] $12,001,460[13,296,489]
Attachment 2
Class Deviation 2024-O0004
Implementation of the U.S. Trade Representative Trade Agreements Thresholds
Changes to the text are indicated by a change bar in the right-hand margin.
252.225-7017 Photovoltaic Devices. (DEVIATION 2024-O0004)
Use the clause in solicitations, including solicitations using FAR part 12 procedures for
the acquisition of commercial products and commercial services, for a contract expected
to exceed the simplified acquisition threshold that may be a covered contract, i.e., an
energy savings performance contract, a utility service contract, or a private housing
contract awarded by DoD, if such contract will result in DoD ownership of photovoltaic
devices, by means other than DoD purchase as end products.
In addition, use the clause in the resultant contract, including contracts using FAR part
12 procedures for the acquisition of commercial products and commercial services, if it is
a covered contract.
PHOTOVOLTAIC DEVICES (DEVIATION 2024-O0004) (JAN 2024)
(a) Definitions. As used in this clause—
Bahraini photovoltaic device means a photovoltaic device that—
(1) Is wholly manufactured in Bahrain; or
(2) In the case of a photovoltaic device that consists in whole or in part of
materials from another country, has been substantially transformed in Bahrain into a
new and different article of commerce with a name, character, or use distinct from that
of the article or articles from which it was transformed, provided that the photovoltaic
device is not subsequently substantially transformed outside of Bahrain.
Caribbean Basin country photovoltaic device means a photovoltaic device that—
(1) Is wholly manufactured in a Caribbean Basin country; or
(2) In the case of a photovoltaic device that consists in whole or in part of
materials from another country, has been substantially transformed in a Caribbean
Basin country into a new and different article of commerce with a name, character, or
use distinct from that of the article or articles from which it was transformed, provided
that the photovoltaic device is not subsequently substantially transformed outside of a
Caribbean Basin country.
Designated country means—
(1) A World Trade Organization Government Procurement Agreement (WTO
GPA) country (Armenia, Aruba, Australia, Austria, Belgium, Bulgaria, Canada,
Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany,
Greece, Hong Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic of),
Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Montenegro,
Netherlands, New Zealand, North Macedonia, Norway, Poland, Portugal, Romania,
Singapore, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Taiwan (known in
the World Trade Organization as “the Separate Customs Territory of Taiwan, Penghu,
Kinmen, and Matsu” (Chinese Taipei)), Ukraine, or the United Kingdom);
Page 1 of 8
Attachment 2
Class Deviation 2024-O0004
Implementation of the U.S. Trade Representative Trade Agreements Thresholds
Changes to the text are indicated by a change bar in the right-hand margin.
(2) A Free Trade Agreement country (Australia, Bahrain, Chile, Colombia,
Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic
of), Mexico, Morocco, Nicaragua, Panama, Peru, or Singapore);
(3) A least developed country (Afghanistan, Angola, Bangladesh, Benin,
Bhutan, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros,
Democratic Republic of Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia,
Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Liberia, Madagascar, Malawi,
Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda, Samoa, Sao Tome and Principe,
Senegal, Sierra Leone, Solomon Islands, Somalia, South Sudan, Tanzania, Timor-Leste,
Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or
(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas,
Barbados, Belize, Bonaire, British Virgin Islands, Curacao, Dominica, Grenada,
Guyana, Haiti, Jamaica, Montserrat, Saba, St. Kitts and Nevis, St. Lucia, St. Vincent
and the Grenadines, Sint Eustatius, Sint Maarten, or Trinidad and Tobago).
Designated country photovoltaic device means a WTO GPA country photovoltaic
device, a Free Trade Agreement country photovoltaic device, a least developed country
photovoltaic device, or a Caribbean Basin country photovoltaic device.
Domestic photovoltaic device means a photovoltaic device that is manufactured in
the United States.
Foreign photovoltaic device means a photovoltaic device other than a domestic
photovoltaic device.
Free Trade Agreement country means Australia, Bahrain, Chile, Colombia, Costa
Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Korea (Republic of),
Mexico, Morocco, Nicaragua, Panama, Peru, or Singapore.
Free Trade Agreement country photovoltaic device means a photovoltaic device
that—
(1) Is wholly manufactured in a Free Trade Agreement country; or
(2) In the case of a photovoltaic device that consists in whole or in part of
materials from another country, has been substantially transformed in a Free Trade
Agreement country into a new and different article of commerce with a name,
character, or use distinct from that of the article or articles from which it was
transformed, provided that the photovoltaic device is not subsequently substantially
transformed outside of a Free Trade Agreement country.
Korean photovoltaic device means a photovoltaic device that—
(1) Is wholly manufactured in Korea; or
(2) In the case of a photovoltaic device that consists in whole or in part of
materials from another country, has been substantially transformed in Korea (Republic
of) into a new and different article of commerce with a name, character, or use distinct
from that of the article or articles from which it was transformed, provided that the
Page 2 of 8
Attachment 2
Class Deviation 2024-O0004
Implementation of the U.S. Trade Representative Trade Agreements Thresholds
Changes to the text are indicated by a change bar in the right-hand margin.
photovoltaic device is not subsequently substantially transformed outside of Korea
(Republic of).
Least developed country photovoltaic device means a photovoltaic device that—
(1) Is wholly manufactured in a least developed country; or
(2) In the case of a photovoltaic device that consists in whole or in part of
materials from another country, has been substantially transformed in a least
developed country into a new and different article of commerce with a name, character,
or use distinct from that of the article or articles from which it was transformed,
provided that the photovoltaic device is not subsequently substantially transformed
outside of a least developed country.
Moroccan photovoltaic device means a photovoltaic device that—
(1) Is wholly manufactured in Morocco; or
(2) In the case of a photovoltaic device that consists in whole or in part of
materials from another country, has been substantially transformed in Morocco into a
new and different article of commerce with a name, character, or use distinct from that
of the article or articles from which it was transformed, provided that the photovoltaic
device is not subsequently substantially transformed outside of Morocco.
Panamanian photovoltaic device means a photovoltaic device that—
(1) Is wholly manufactured in Panama; or
(2) In the case of a photovoltaic device that consists in whole or in part of
materials from another country, has been substantially transformed in Panama into a
new and different article of commerce with a name, character, or use distinct from that
of the article or articles from which it was transformed, provided that the photovoltaic
device is not subsequently substantially transformed outside of Panama.
Peruvian photovoltaic device means a photovoltaic device that—
(1) Is wholly manufactured in Peru; or
(2) In the case of a photovoltaic device that consists in whole or in part of
materials from another country, has been substantially transformed in Peru into a new
and different article of commerce with a name, character, or use distinct from that of
the article or articles from which it was transformed, provided that the photovoltaic
device is not subsequently substantially transformed outside of Peru.
Photovoltaic device means a device that converts light directly into electricity
through a solid-state, semiconductor process.
Qualifying country means a country with a reciprocal defense procurement
memorandum of understanding or international agreement with the United States in
which both countries agree to remove barriers to purchases of supplies produced in the
other country or services performed by sources of the other country, and the
Page 3 of 8
Attachment 2
Class Deviation 2024-O0004
Implementation of the U.S. Trade Representative Trade Agreements Thresholds
Changes to the text are indicated by a change bar in the right-hand margin.
memorandum or agreement complies, where applicable, with the requirements of
section 36 of the Arms Export Control Act (22 U.S.C. 2776) and with 10 U.S.C. 2457.
Accordingly, the following are qualifying countries:
Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Estonia
Egypt
Finland
France
Germany
Greece
Israel
Italy
Japan
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Portugal
Slovenia
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland
Qualifying country photovoltaic device means a photovoltaic device manufactured in
a qualifying country.
United States means the 50 States, the District of Columbia, and outlying areas.
U.S.-made photovoltaic device means a photovoltaic device that—
(1) Is manufactured in the United States; or
(2) Is substantially transformed in the United States into a new and different
article of commerce with a name, character, or use distinct from that of the article or
articles from which it was transformed, provided that the photovoltaic device is not
subsequently substantially transformed outside of the United States.
WTO GPA country photovoltaic device means a photovoltaic device that—
(1) Is wholly manufactured in a WTO GPA country; or
Page 4 of 8
Attachment 2
Class Deviation 2024-O0004
Implementation of the U.S. Trade Representative Trade Agreements Thresholds
Changes to the text are indicated by a change bar in the right-hand margin.
(2) In the case of a photovoltaic device that consists in whole or in part of
materials from another country, has been substantially transformed in a WTO GPA
country into a new and different article of commerce with a name, character, or use
distinct from that of the article or articles from which it was transformed, provided that
the photovoltaic device is not subsequently substantially transformed outside of a WTO
GPA country.
(b) This clause implements section 846 of the National Defense Authorization Act
for Fiscal Year 2011 (Pub. L. 111-383).
(c) Restriction. If the Contractor specified in its offer in the Photovoltaic Devices—
Certificate provision of the solicitation that the estimated value of the photovoltaic
devices to be utilized in performance of this contract would be—
(1) More than the micro-purchase threshold but less than $100,000, then
the Contractor shall utilize only domestic photovoltaic devices unless, in its offer, it
specified utilization of qualifying country or other foreign photovoltaic devices in
paragraph (d)(2) of the Photovoltaic Devices—Certificate provision of the solicitation.
(2) $100,000 or more but less than $102,280, then the Contractor shall
utilize under this contract only domestic photovoltaic devices unless, in its offer, it
specified utilization of Free Trade Agreement country photovoltaic devices (other than
Bahraini, Korean, Moroccan, Panamanian, or Peruvian photovoltaic devices), qualifying
country photovoltaic devices, or other foreign photovoltaic devices in paragraph (d)(4) of
the Photovoltaic Devices—Certificate provision of the solicitation. If the Contractor
certified in its offer that it will utilize a Free Trade Agreement country photovoltaic
device (other than a Bahraini, Korean, Moroccan, Panamanian, or Peruvian
photovoltaic device) or a qualifying country photovoltaic device, then the Contractor
shall utilize a Free Trade Agreement country photovoltaic device (other than a
Bahraini, Korean, Moroccan, Panamanian, or Peruvian photovoltaic device) or a
qualifying country photovoltaic device; or, at the Contractor’s option, a domestic
photovoltaic device;
(3) $102,280 or more but less than $174,000, then the Contractor shall
utilize under this contract only domestic photovoltaic devices, unless, in its offer it
specified utilization of Free Trade Agreement country photovoltaic devices (other than
Bahraini, Moroccan, Panamanian, or Peruvian photovoltaic devices), qualifying country
photovoltaic devices, or other foreign photovoltaic devices in paragraph (d)(5) of the
Photovoltaic Devices—Certificate provision of the solicitation. If the Contractor
certified in its offer that it will utilize a Free Trade Agreement country photovoltaic
device (other than a Bahraini, Moroccan, Panamanian, or Peruvian photovoltaic device)
or a qualifying country photovoltaic device, then the Contractor shall utilize a Free
Trade Agreement country photovoltaic device (other than a Bahraini, Moroccan,
Panamanian, or Peruvian photovoltaic device) or a qualifying country photovoltaic
device; or, at the Contractor’s option, a domestic photovoltaic device; or
(4) $174,000 or more, then the Contractor shall utilize under this contract
only U.S.-made, designated country, or qualifying country photovoltaic devices.
(End of clause)
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Attachment 2
Class Deviation 2024-O0004
Implementation of the U.S. Trade Representative Trade Agreements Thresholds
Changes to the text are indicated by a change bar in the right-hand margin.
252.225-7018 Photovoltaic Devices Certificate. (DEVIATION 2024-O0004)
Use the following provision in solicitations, including solicitations using FAR part 12
procedures for the acquisition of commercial products and commercial services, that
contain the clause at 252.225-7017:
PHOTOVOLTAIC DEVICES—CERTIFICATE (DEVIATION 2024-O0004) (JAN 2024)
(a) Definitions. “Bahraini photovoltaic device,” “Caribbean Basin photovoltaic
device,” “designated country,” “designated country photovoltaic device,” “domestic
photovoltaic device,” “foreign photovoltaic device,” “Free Trade Agreement country,”
“Free Trade Agreement photovoltaic device,” “Korean photovoltaic device,” “least
developed country photovoltaic device,” “Moroccan photovoltaic device,” “Panamanian
photovoltaic device,” “Peruvian photovoltaic device,” “photovoltaic device,” “qualifying
country,” “qualifying country photovoltaic device,” “United States,” “U.S.-made
photovoltaic device,” and “WTO GPA country photovoltaic device” have the meanings
given in the Photovoltaic Devices clause of this solicitation.
(b) Restrictions. The following restrictions apply, depending on the estimated
aggregate value of photovoltaic devices to be utilized under a resultant contract:
(1) If more than the micro-purchase threshold but less than $174,000, then the
Government will not accept an offer specifying the use of other foreign photovoltaic
devices in paragraph (d)(2)(ii), (d)(3)(ii), (d)(4)(ii), or (d)(5)(ii) of this provision, unless the
offeror documents to the satisfaction of the Contracting Officer that the price of the
foreign photovoltaic device plus 50 percent is less than the price of a comparable
domestic photovoltaic device.
(2) If $174,000 or more, then the Government will consider only offers that
utilize photovoltaic devices that are U.S.-made, qualifying country, or designated
country photovoltaic devices.
(c) Country in which a designated country photovoltaic device was wholly
manufactured or was substantially transformed. If the estimated value of the
photovoltaic devices to be utilized under a resultant contract exceeds $100,000, the
Offeror’s certification that such photovoltaic device (e.g., solar panel) is a designated
country photovoltaic device shall be consistent with country of origin determinations by
the U.S. Customs and Border Protection with regard to importation of the same or
similar photovoltaic devices into the United States. If the Offeror is uncertain as to
what the country of origin would be determined to be by the U.S. Customs and Border
Protection, the Offeror shall request a determination from U.S. Customs and Border
Protection. (See http://www.cbp.gov/trade/rulings.)
(d) Certification and identification of country of origin.
[The offeror shall check the block and fill in the blank for one of the following
paragraphs, based on the estimated value and the country of origin of photovoltaic
devices to be utilized in performance of the contract:]
Page 6 of 8
Attachment 2
Class Deviation 2024-O0004
Implementation of the U.S. Trade Representative Trade Agreements Thresholds
Changes to the text are indicated by a change bar in the right-hand margin.
___ (1) No photovoltaic devices will be utilized in performance of the contract, or
such photovoltaic devices have an estimated value that does not exceed the micro-
purchase threshold.
(2) If more than the micro-purchase threshold but less than $100,000—
___ (i) The offeror certifies that each photovoltaic device to be utilized in
performance of the contract is a domestic photovoltaic device;
___ (ii) The offeror certifies that each photovoltaic device to be utilized in
performance of the contract is a qualifying country photovoltaic device [Offeror to specify
country of origin____________]; or
___ (iii) The foreign (other than qualifying country) photovoltaic devices to
be utilized in performance of the contract are the product of
___________________.[Offeror to specify country of origin, if known, and provide
documentation that the cost of a domestic photovoltaic device would be unreasonable in
comparison to the cost of the proposed foreign photovoltaic device, i.e. that the price of the
foreign photovoltaic device plus 50 percent is less than the price of a comparable domestic
photovoltaic device.]
(3) If less than $100,000—
___ (i) The offeror certifies that each photovoltaic device to be utilized in
performance of the contract is a domestic photovoltaic device;
___ (ii) The offeror certifies that each photovoltaic device to be utilized in
performance of the contract is a qualifying country photovoltaic device [Offeror to specify
country of origin____________________________]; or
___ (iii) The foreign photovoltaic devices to be utilized in performance of the
contract are the product of ___________________.[Offeror to specify country of origin, if
known, and provide documentation that the cost of a domestic photovoltaic device would
be unreasonable in comparison to the cost of the proposed foreign photovoltaic device, i.e.
that the price of the foreign photovoltaic device plus 50 percent is less than the price of a
comparable domestic photovoltaic device.]
(4) If $100,000 or more but less than $102,280—
___ (i) The offeror certifies that each photovoltaic device to be utilized in
performance of the contract is a domestic photovoltaic device;
___ (ii) The offeror certifies that each photovoltaic device to be utilized in
performance of the contract is a Free Trade Agreement country photovoltaic device
(other than a Bahraini, Korean, Moroccan, Panamanian, or Peruvian photovoltaic
device) or a qualifying country photovoltaic device [Offeror to specify country of
origin_________]; or
___ (iii) The offered foreign photovoltaic devices (other than those from
countries listed in paragraph (d)(4)(ii) of this provision) are the product of
___________________.[Offeror to specify country of origin, if known, and provide
Page 7 of 8
Attachment 2
Class Deviation 2024-O0004
Implementation of the U.S. Trade Representative Trade Agreements Thresholds
Changes to the text are indicated by a change bar in the right-hand margin.
documentation that the cost of a domestic photovoltaic device would be unreasonable in
comparison to the cost of the proposed foreign photovoltaic device, i.e. that the price of the
foreign photovoltaic device plus 50 percent is less than the price of a comparable domestic
photovoltaic device.]
(5) If $102,280 or more but less than $174,000—
___ (i) The offeror certifies that each photovoltaic device to be utilized in
performance of the contract is a domestic photovoltaic device;
___ (ii) The offeror certifies that each photovoltaic device to be utilized in
performance of the contract is a Free Trade Agreement country photovoltaic device
(other than a Bahraini, Moroccan, Panamanian, or Peruvian photovoltaic device) or a
qualifying country photovoltaic device [Offeror to specify country of origin_________]; or
___ (iii) The offered foreign photovoltaic devices (other than those from
countries listed in paragraph (d)(5)(ii) of this provision) are the product of
___________________. [Offeror to specify country of origin, if known, and provide
documentation that the cost of a domestic photovoltaic device would be unreasonable in
comparison to the cost of the proposed foreign photovoltaic device, i.e. that the price of the
foreign photovoltaic device plus 50 percent is less than the price of a comparable domestic
photovoltaic device.]
(6) If $174,000 or more, the Offeror certifies that each photovoltaic device to be
used in performance of the contract is—
___ (i) A U.S.-made photovoltaic device; or
___ (ii) A designated country photovoltaic device or a qualifying country
photovoltaic device. [Offeror to specify country of origin_________________.]
(End of provision)
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