Two important and complex areas of Federal contracting frequently misunderstood by Federal contractors and new entrants to the Federal Marketplace is the Trade Agreements Act (TAA) and the Nonmanufacturer Rule (NMR). Contractors often receive conflicting guidance from Federal contracting officers in the application and compliance with TAA and NMR. Compounding the problem is a contractor’s failure to comply with these important requirements can be costly.
Failure to fully understand and comply with TAA can create a potentially substantial civil liability, and even potential criminal liability. TAA is an increasingly high visibility compliance and enforcement issue. Competitors, employees (current and former) can turn Whistleblowers, as they have a strong financial incentive to report violations and use qui tam (whistleblower) lawsuits under the False Claims Act (FCA). The Department of Justice uses FCA as a tool to enforce TAA-compliance. In addition to regulatory fines and sanctions, violations under FCA allow the government to treble damages and impose statutory penalties ranging from $10,781 to $21,563 for each false claim (invoice).
The NMR is a codified regulation of the U.S. Small Business Administration (SBA) (13 Code of Federal Regulations (CFR) § 121.406). NMR requires small businesses provide their own products, or those of another domestic small business when they are awarded a contract under a total or partial set-aside for small business. This includes set-asides in in any of the socioeconomic procurement preference program categories. Set-aside clauses contain agreement language which are a contractual requirement unless SBA has issued an individual waiver for the specific procurement, or a class waiver covering a class of products.
Protect your company and ensure compliance with TAA and NMR.
Centre Law and Consulting, a certified Women-Owned Small Business (WOSB) with over fifteen-years of experience in providing integrated legal, consulting and professional advisory and assistance services will host a 90-minute webinar providing information on these two important topics.
- An overview of TAA, application, exclusions
- Country of Origin
- Substantial Transformation Test
- An overview of NMR
- Small business NMR compliance requirements under set-asides
- Small Business Administration NMR waivers- class and individual
Participants Will Learn:
- The requirements of TAA
- How Country of Origin is determined
- How to determine what constitutes substantial transformation
- How TAA is enforced – vulnerabilities, the False Claims Acts
- Agreement provisions in set-aside clauses – consequences to small businesses
- How waivers are granted by SBA
Who Should Attend:
- Federal contractors, small and other than small, especially those with contracts containing Federal Acquisition Regulation (FAR) Clause 52.225-5, Trade Agreements, and businesses seeking to enter and/or better understand the unique and often peculiar requirements of the Federal Marketplace relating to trade agreements.
- Small businesses receiving awards under set-asides should also attend the webinar to fully understand the requirements of NMR and their obligations thereunder.
Course Number: WE01