Home - Blank Rome LLP

Register to receive insights and analyses on breaking news and trends across varying industries.
<a class="link-primary mt-4" href="/subscribe">Subscribe</a>

Philadelphia, PA

New York, NY

Wilmington, DE

Cincinnati, OH

Princeton, NJ

Los Angeles, CA

Houston, TX

Tampa, FL

Shanghai

West Palm Beach, FL

Pittsburgh, PA

Washington, D.C.

Chicago, IL

Orange County, CA

Dallas, TX

Boston, MA

On July 28, 2026, the U.S. Court of Federal Claims issued its decision in AvKare, LLC v. United States, upholding the Department of Veterans Affairs’ (“VA”) national contract award for Hydroxychloroquine tablets. The opinion is an important reminder of the discretion contracting officers have to evaluate pharmaceuticals for Trade Agreements Act (“TAA”) compliance and reaffirms that the country where a drug’s active pharmaceutical ingredient (“API”) is synthesized can be its country of origin for TAA purposes. The Court also declined to extend the scope of the Federal Circuit’s 2020 Acetris decision which would have conflated “manufacturing” and “substantial transformation.”

core/paragraph

core/heading

The TAA provides that the Government may only acquire “U.S.-made or designated country end products.”&nbsp;See&nbsp;FAR 52.225-5. The TAA states that if a product comprises materials from multiple countries, its country of origin is where it was “substantially transformed into a new and different article of commerce with a name, character, or use distinct from that of the article or articles from which it was so transformed.” 19 U.S.C. § 2518(4)(B). If a product is “substantially transformed” in a TAA-designated country, the product complies with the TAA.

Read the full post on our&nbsp;<a href="https://governmentcontractsnavigator.com/2026/08/11/court-of-federal-claims-reaffirms-agency-discretion-in-taa-country-of-origin-determinations-for-pharmaceuticals/">Government Contracts Navigator</a>&nbsp;blog.

Healthcare – Public Policy, Government Contracts Counseling & Compliance

Merle M. DeLancey Jr.

Shane M. Hannon

Government Contracts

Bid Protests

Blog Post

Publications

Trump Administration Resource Hub

Court of Federal Claims Reaffirms Agency Discretion in TAA Country-of-Origin Determinations for Pharmaceuticals

Court of Federal Claims Reaffirms Agency Discretion in TAA Country-of-Origin Determinations for Pharmaceuticals

Offices

Stay Connected

Slide Menu

Slide Search

Court of Federal Claims Reaffirms Agency Discretion in TAA Country-of-Origin Determinations for Pharmaceuticals

Offices

Stay Connected