FAR 18.119—Trade agreements.
Plain-English Summary
FAR 18.119 is a short but important cross-reference rule about when the trade agreements policies and procedures in FAR subpart 25.4 do not apply. Its focus is acquisitions that are not awarded under full and open competition, and it points readers to FAR 25.401(a)(5) for the specific limitation. In practical terms, this means a contracting officer cannot assume trade agreements coverage simply because an acquisition involves a foreign product, service, or supplier; the competition method matters. The section exists to prevent improper use of trade agreement procedures in noncompetitive or otherwise restricted acquisitions, where the normal trade agreements framework may not be available. For contractors, it signals that trade agreement-based evaluation or eligibility arguments may not help when the procurement is not full and open. For agencies and contracting officers, it is a reminder to check the acquisition’s competition status before applying subpart 25.4 rules.
Key Rules
Trade agreements may not apply
The policies and procedures in FAR subpart 25.4 may be inapplicable to acquisitions that are not awarded under full and open competition. This is a limitation on when trade agreement rules can be used, not a blanket rule that all noncompetitive actions are excluded in every case.
Check FAR 25.401(a)(5)
This section directs users to FAR 25.401(a)(5) for the operative exception or limitation. The practical requirement is to confirm the acquisition’s competition basis before relying on trade agreement procedures.
Competition status controls coverage
Whether an acquisition is full and open competition is a threshold issue for trade agreement applicability. If the procurement is set aside, sole-source, or otherwise not full and open, the contracting officer must verify whether subpart 25.4 can be used at all.
Responsibilities
Contracting Officer
Determine whether the acquisition is being awarded under full and open competition before applying FAR subpart 25.4. If the procurement is not full and open, consult FAR 25.401(a)(5) and avoid assuming trade agreement procedures apply.
Agency
Ensure acquisition planning and policy guidance correctly identify when trade agreement rules are available and when they are not. Train personnel to evaluate competition status before invoking subpart 25.4.
Contractor
Understand that trade agreement protections or preferences may not be available in non-full-and-open procurements. Do not rely on trade agreement arguments unless the solicitation and acquisition structure support their applicability.
Practical Implications
This section is a gatekeeper: before using trade agreement procedures, the contracting officer must confirm the procurement is full and open.
A common pitfall is assuming that foreign-origin issues automatically trigger trade agreement analysis; the competition method is the first question.
If the acquisition is set aside or otherwise restricted, subpart 25.4 may be unavailable, so the acquisition team should check the cited exception in FAR 25.401(a)(5).
Contractors should not expect trade agreement-based treatment in sole-source or limited-competition actions unless the FAR specifically allows it.
Because this is a cross-reference provision, the real operational answer is found in FAR 25.401(a)(5); users should read both sections together.
Official Regulatory Text
The policies and procedures of FAR 25.4 may not apply to acquisitions not awarded under full and open competition (see 25.401 (a)(5)).