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Challenging Government Reliance on BAA Compliance Certificates in Defense Procurements

The Buy American Act (BAA) generally requires federal agencies to procure only domestic end products when acquiring supplies and construction materials in government contracts over the micro-purchase threshold unless an exemption applies. In response to defense solicitations that incorporate the provision at Defense Federal Acquisition Regulation Supplement (DFARS) 252.225-7000, offerors must provide a certification as to whether their proposed products are domestic end products from the United States, foreign end products from a qualifying country, or foreign end products from a non-qualifying country. When an offeror certifies that it will furnish end products in accordance with the BAA, it undertakes a contractual obligation to comply with that representation. The procuring agency can typically rely upon an offeror’s certification of compliance without further investigation unless there is a reason to believe, before making an award, that the offeror will not provide compliant products. On the other hand, if prior to award, significant countervailing evidence creates doubts concerning the offeror’s ability to comply with the BAA requirements, the agency must investigate beyond the firm’s representation of compliance before making an award. Under its bid protest function, the Government Accountability Office (GAO) will review whether an agency reasonably relied on an offeror’s certification of compliance. Similarly, when the agency investigates beyond the offeror’s representation of compliance, the GAO will review the agency’s evaluation and the resulting country of origin determination under the BAA to ensure they were reasonable.

In B-424395; B-424395.2; B-424395.3, a decision issued on July 7, 2026, the GAO denied a bid protest alleging that the procuring agency unreasonably relied on the awardee’s BAA compliance certification representing that it would supply domestic end products. The Defense Logistics Agency (DLA) issued the relevant request for proposals (RFP) for the award of one or more indefinite-delivery, indefinite-quantity (IDIQ) contracts for eleven types of hydrofluorocarbon (HFC) gases listed by national stock number (NSN), as well as cylinders on a lowest-price, technically acceptable (LPTA) basis. The RFP incorporated DFARS 252.225-7000, requiring offerors to submit a BAA compliance certificate for their proposed products. The awardee received a contract with eight NSNs, while the protester was also awarded a contract for three of the eleven NSNs. The protester challenged the award of three out of the eight NSNs secured by the awardee, arguing that the cylinders and gas proposed by the awardee were foreign made. Regarding the cylinders, the protester argued that a previous GAO protest of an award under a different solicitation put the DLA on notice that the awardee had proposed foreign-made cylinders. In addition, the protester presented statements from the awardee’s supplier, confirming that the awardee purchased its cylinders from a company based in Thailand. However, the GAO rejected this argument for failing to state a valid basis of protest because it concluded that the end product at issue in the instant procurement was the HFC gases, not the cylinders containing them.

Next, the GAO assessed the protester’s argument challenging the reasonableness of the DLA’s reliance on the awardee’s BAA compliance certification with respect to the gases, but also found it unpersuasive. The protester presented a sworn declaration of its Senior Vice President of Operations to support the assertion that the awardee could not source one of the relevant gases domestically at its proposed price point. The declaration also provided that a major component of one of the gases under the awardee’s contract was primarily produced in China. However, the GAO concluded that the declaration was insufficient to conclusively establish that the gases could not be sourced domestically or that the relevant component of one of the gases could only be sourced in China. The decision noted that the awardee’s proposal contained details regarding the sourcing of gases for each NSN. Furthermore, in response to the contracting officer’s (CO) request for reassurance regarding the place of manufacturing for the three gases at issue, the awardee had reconfirmed that it would provide domestic products. Under these circumstances, the protester’s arguments amounted to nothing more than unsupported allegations that the awardee’s proposed products were likely noncompliant with its BAA certification and thus did not impose an obligation on the CO to conduct an investigation behind the awardee’s certification. Consequently, the GAO denied the protest by determining that the DLA did not unreasonably rely on the awardee’s BAA compliance certification, which represented that it would provide domestic end products.

Solicitations for defense contracts for supplies may require offerors to provide a certification that they will furnish end products in accordance with the BAA. Such a representation by the offeror creates a binding obligation and may be properly relied upon by the procuring agency in making the award without further investigation. However, if prior to award, the agency has reason to believe that the offeror will not provide BAA-compliant end products, it must investigate the issue beyond the offeror’s certification. Once an award has been made upon the agency’s reasonable reliance on the BAA certification, whether the contractor ultimately delivers compliant end products is a matter of contract administration not reviewed by the GAO. Contractors should also be mindful that absent a belief that an offeror’s BAA certification is invalid either due to information on the face of the offeror’s proposal or other information received prior to award, the agency has no obligation to demand proof of compliance as a matter of course when conducting its evaluation. Of course, the agency may, as it did in the procurement described above, independently seek confirmation or additional information regarding an offeror’s ability to comply with its BAA certification. Finally, it is also worth remembering that each procurement stands alone and any agency actions taken to justify reliance on a BAA compliance certificate in one procurement are not relevant to a different procurement.

This Bid Protest Insight is provided as a general summary of the applicable law in the practice area and does not constitute legal advice. Contractors wishing to learn more are encouraged to consult the TILLIT LAW PLLC Client Portal or Contact Us to determine how the law would apply in a specific situation.

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Since the United States (U.S.) government is the single largest consumer in the world, contracting with the government is naturally viewed as a desirable avenue of expansion for many foreign companies. However, prospective foreign contractors looking to supply products to the U.S. government must navigate a somewhat complex regulatory maze of country-of-origin (COO) rules. These COO rules serve the function of implementing U.S. domestic preferences while fulfilling U.S. obligations to its trade partners under bilateral and multilateral international trade agreements. Interested foreign companies must satisfy the requirements of two main federal statutes that govern the U.S. government’s acquisition of foreign products. Enacted during the Great Depression, the Buy American Act (BAA) of 1933 is the primary domestic preference statute. Meanwhile, the Trade Agreements Act (TAA) of 1979 dictates the rules surrounding the U.S. government’s acquisition of products from a long list of countries with which it has bilateral or multilateral trade agreements. The Federal Acquisition Regulation (FAR) trade agreements clause at FAR § 52.225-5 harmonizes and implements the BAA and the TAA, requiring contractors to deliver “only U.S. made or designated country end products” in covered procurements.

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Prospective foreign contractors looking to obtain service contracts with the U.S. Government must satisfy the requirements of the Trade Agreements Act (TAA). The TAA was enacted in 1979, generally providing reciprocal treatment in government procurement with countries that have signed bilateral and multilateral trade agreements with the U.S. The United States Trade Representative (USTR) has been delegated the President’s authority under the TAA to waive requirements of restrictive domestic preference regulations, such as the Buy America Act (BAA), for prospective contractors from countries that qualify under the TAA. Under the Federal Acquisition Regulations (FAR) 25.402(a)(2), the relevant test for determining the application of the TAA to services is the country in which the firm providing the services is established. To determine the country in which a prospective contractor is established, the government considers where the prospective contractor is incorporated or maintains its principal place of business or headquarters.

Issues concerning the applicability of the TAA in service contracts may be raised in the form of bid protests. In B-405296, B-405296.2, B-405296.3, the Government Accountability Office (GAO) applied the TAA test for service contracts to a cloud computing data center requirement solicited by the General Services Administration (GSA). In sustaining the protest, the GAO described the TAA test for service contracts in the context of a requirement limiting the location of non-U.S.-based cloud computing data centers. In the procurement at issue, the GSA sought to establish a blanket purchase agreement (BPA) amongst the holders of the Federal Supply Schedule (FSS) 70 contract. The BPA contemplated the acquisition of cloud computing services, including emails, office automation, records management, migration, and integration services. These services were further divided into sub-categories before being split into two contract line item numbers (CLIN) for pricing purposes. The first CLIN was for U.S.-based prices and required all data and data centers to be in the U.S. The second CLIN required offerors to provide non-U.S.-based pricing applicable to any data or data centers in TAA-designated countries and formed the basis of the bid protest.

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At the outset of a small business set-aside procurement, the contracting officer (CO) assigns the procurement a North American Industry Classification System (NAICS) code, which has a corresponding size standard. The CO is also responsible for structuring the procurement as one for manufactured products or supply items, or for services. When a contract for manufactured products or supply items is set aside for small business, the prime contractor must either manufacture the end item or qualify under the nonmanufacturer rule. Entities may qualify as a manufacturer if they manufacture the end item in the United States. Under the relevant regulations, a manufacturing entity utilizes its own facilities to perform the primary activities in transforming inorganic or organic substances, including the assembly of parts and components, into the end item being procured. Notably, there can only be one manufacturer of an end item for size purposes. The Small Business Administration (SBA) conducts an analysis under three factors enumerated in 13 C.F.R. § 121.406(b)(2)(i) to determine whether an entity is the manufacturer. These factors are:

  • (A) The proportion of total value in the end item added by the efforts of the entity, excluding costs of overhead, testing, quality control, and profit.
  • (B) The importance of the elements added by the entity to the function of the end item, regardless of their relative value.
  • (C) The entity’s technical capabilities; plant, facilities and equipment; production or assembly line processes; packaging and boxing operations; labeling of products; and product warranties.
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The limitations on subcontracting clause in federal contracts prohibits small businesses from subcontracting out more than a specified percentage of work to non-similarly situated entities. For contracts set-aside for service disabled veteran owned small businesses (SDVOSBs), the limitation on subcontracting clause may limit the prime contractor from subcontracting out more than 50% of the amount paid to it by the government to firms that are not certified SDVOSBs listed in the Small Business Administration (SBA) certification database as set forth in Veteran Affairs Acquisition Regulations (VAAR) 852.219-73 or certified veteran owned small businesses (VOSBs) listed in the SBA certification database as set forth in VAAR 852.219-74. The solicitations for these SDVOSB contracts require each offeror to submit a certification demonstrating its agreement to comply with the limitation on subcontracting terms. Such a certification imposes substantial legal obligations on the contractor and is accordingly considered a material solicitation term. An offeror’s failure to execute the limitation on subcontracting certification renders its proposal unresponsive because it fails to demonstrate an unequivocal commitment to be bound to perform, without exception, in accordance with the material terms and conditions of the solicitation. Therefore, the Government Accountability Office (GAO) will not sustain a protest if the protester is eliminated for failing to submit a properly executed limitation on subcontracting certification with its proposal.

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Challenging Government Reliance on BAA Compliance Certificates in Defense Procurements

TILLIT LAW Bid Protest Insights