Agreement Thresholds

This rule modifies the FAR by slightly changing the thresholds for the application of the WTO GPA and free trade agreements. The revisions shall not add new burdens or affect the applicability of clauses and provisions to or below the simplified acquisition threshold or to commercial property, with the exception of changes in thresholds. Every two years, the thresholds for free trade agreements are updated. This communication amends the thresholds in Contracting Policy Notice 2018-01 to provide new thresholds expressed in Canadian dollars. All thresholds are valid for the period from 1 January 2020 to 31 December 2021. “Publication of proposed regulations,” 41 U.S.C 1707, is the law applicable to the publication of the Federal Acquisition Regulation. Point (a)(1) of the Statute provides that a policy, regulation, procedure or form of procurement (including an amendment or amendment thereto) is to be published for public notice where it relates to the use of fine funds and has a significant effect beyond the Agency`s internal operational procedures, which issue the policy, the regulation, procedure or form. or has a significant impact on costs or administrative costs on contractors or suppliers. This final rule should not be published for public notice, as it only adapts the thresholds according to predefined formulas in order to adapt to changes in economic conditions and thus maintain the status quo, without having a significant impact on the government`s internal operating procedures. Pursuant to Executive Order 12260, the United States Trade Representative (USTR) is required to set the thresholds in United States dollars for the WTO Agreement on Government Procurement and Free Trade Agreements. == the obligations arising from these agreements apply to covered government procurement contracts located on or above the usual dollar thresholds indicated. The thresholds are adjusted every two years.

When determining the total value of a contract, consider the value of all renewal or renewal options, as long as they are accurate. For example, a one-year contract worth $50,000 should be valued at $250,000 (50,000 x 5) for the application of the thresholds. The latter rule implements the new thresholds in subsection 25.4 of the FAR, trade agreements, and other sections of the FAR that contain thresholds for trade agreements (i.e.: 22.1503, 25.202, 25.603, 25.1101 and 25.1102). Subject: Update of the thresholds applicable to free trade agreements Applying from 1 January 2020 to 31 December 2021 for government procurement subject to free trade agreements to which the federal government is subject, are as follows. Under Canada`s free trade agreements with Chile, Colombia and Ukraine, there are “expanded transparency” obligations to provide suppliers with information on government procurement for which they are unable to provide information, but for which (1) an open tendering procedure is used and (2) the value of purchases exceeds $CAN 124,000 for Chile and Ukraine, and CAN $150,000 for Colombia. Approximately every two years, the trade agreement thresholds for the World Trade Organization Agreement on Government Procurement (WTO GPA) and free trade agreements (FTAs) are adapted according to the formulas defined in the framework of the agreements. . . .