### Subpart 25.6- Trade Sanctions

## 25.600 Scope of subpart.

This subpart implements sanctions imposed by the President pursuant to Section 305(g)(1) of the Trade Agreements Act of 1979 (19 U.S.C. 2515(g)(1)), on European Union (EU) member states that discriminate against U.S. products or services (sanctioned EU member states). This subpart does not apply to contracts for supplies or services awarded and performed outside the United States, or to the Department of Defense. For thresholds unique to individual agencies, see agency regulations.

## 25.601 Policy.

(a) Except as provided in 25.602, agencies must not award contracts for-

(1) Sanctioned EU country end products with an estimated acquisition value less than $177,000;
(2) Sanctioned EU country construction with an estimated acquisition value less than $6,806,000; or
(3) Sanctioned EU country services as follows (Federal Service Code or Category from the Federal Procurement Data System Product/Service Code Manual is indicated in parentheses):

(i) Service contracts regardless of acquisition value for-

(A) All transportation services, including launching services (all V codes, J019, J998, J999, and K019);
(B) Dredging (Y216 and Z216);
(C) Management and operation of certain Government or privately owned facilities used for Government purposes, including federally funded research and development centers (all M codes);
(D) Development, production or coproduction of program material for broadcasting, such as motion pictures (T006 and T016);
(E) Research and development (all A codes);
(F) Airport concessions (S203);
(G) Legal services (R418);
(H) Hotel and restaurant services (S203);
(I) Placement and supply of personnel services (V241 and V251);
(J) Investigation and security services (S206, S211, and R423);
(K) Education and training services (all U codes and R419);
(L) Health and social services (all O and G codes);
(M) Recreational, cultural, and sporting services (G003); or
(N) Telecommunications services (encompassing only voice telephony, telex, radio telephony, paging, and satellite services) (S1, D304, D305, D316, D317, and D399).

(ii) All other service contracts with an estimated acquisition value less than $177,000.

(b) Determine the applicability of sanction thresholds in the manner provided at 25.403(b).

## 25.602 Exceptions.

(a) The sanctions in 25.601 do not apply to-

(1) Purchases at or below the simplified acquisition threshold awarded using simplified acquisition procedures;
(2) Total small business set-asides in accordance with 19.502-2;
(3) Contracts in support of U.S. national security interests; or
(4) Contracts for essential spare, repair, or replacement parts not otherwise available from nonsanctioned countries.

(b)(1) The head of the agency, without power of redelegation, may authorize the award of a contract or class of contracts for sanctioned EU country end products, services, and construction, the purchase of which is otherwise prohibited by 25.601(a), if the head of the agency determines that such action is necessary-

(i) In the public interest;
(ii) To avoid the restriction of competition in a manner that would limit the acquisition in question to, or would establish a preference for, the services, articles, materials, or supplies of a single manufacturer or supplier; or
(iii) Because there would be or are an insufficient number of potential or actual offerors to ensure the acquisition of services, articles, materials, or supplies of requisite quality at competitive prices.

(2) When the head of the agency makes a determination in accordance with paragraph (b)(1) of this section, the agency must notify the U.S. Trade Representative within 30 days after contract award.