[Federal Register Volume 71, Number 1 (Tuesday, January 3, 2006)]
[Rules and Regulations]
[Pages 219-220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-24549]



[[Page 219]]

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 5, 6, 9, 12, 14, 17, 22, 25, and 52

[FAC 2005-07; FAR Case 2004-027; Item IV]
RIN 9000-AK09


Federal Acquisition Regulation; Free Trade Agreements--Australia 
and Morocco

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed to convert the 
interim rule published in the Federal Register at 69 FR 77870, December 
28, 2004, to a final rule with changes. This rule implemented new Free 
Trade Agreements with Australia and Morocco as approved by Congress 
(Public Laws 108-286 and 108-302). These Free Trade Agreements were 
scheduled to become effective on or after January 1, 2005. However, the 
Moroccan Free Trade Agreement has not yet been implemented and is 
therefore removed from this final rule.
    The rule also established a table of services excluded from the 
coverage of the various trade agreements, corrected the threshold for 
Canadian services, revised the list of Least Developed Countries, 
revised FAR terminology relating to international trade agreements and 
the Trade Agreements Act (TAA), and revised the FAR clauses that 
implement application of the Buy American Act (41 U.S.C. 10a, 10b, 10b-
1, and 10c) and trade agreements to construction material.

DATES: Effective Date: January 3, 2006.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Ms. Kimberly A. Marshall, Procurement Analyst, at (202) 219-0986. 
Please cite FAC 2005-07, FAR case 2004-027. For information pertaining 
to status or publication schedules, contact the FAR Secretariat at 
(202) 501-4755.

SUPPLEMENTARY INFORMATION:

A. Background

    The 60-day comment period on the interim rule ended February 28, 
2005. The Councils did not receive any public comments. However, the 
United States Trade Representative has informed the Councils that the 
Morocco Free Trade Agreement has not yet entered into force. Although 
the United States-Morocco Free Trade Agreement (Pub. L. 108-302) was 
enacted on August 17, 2004, entry into force on or after January 1, 
2005, was conditioned on determination by the President that Morocco 
has taken certain measures necessary to bring it into compliance with 
certain provisions of the agreement. This determination has not been 
made, and implementation of the Morocco Free Trade Agreement is removed 
from this final rule.
    This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not have a significant economic impact on a substantial 
number of small entities within the meaning of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq. Although the rule opens up 
Government procurement to the products of Australia and Caribbean Basin 
country construction material, this will not have any significant 
economic impact on U.S. small businesses. The Department of Defense 
only applies the trade agreements to the non-defense items listed at 
DFARS 225.401-70, and acquisitions that are set aside for small 
businesses are exempt. The Councils did not receive any comments 
relating to the Regulatory Flexibility Act.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does apply; however, these changes to 
the FAR do not impose additional information collection requirements to 
the paperwork burden previously approved under OMB Control Numbers 
9000-0025, 9000-0130, and 9000-0141.

List of Subjects in 48 CFR Parts 5, 6, 9, 12, 14, 17, 22, 25, and 
52

    Government procurement.

    Dated: December 22, 2005.
Gerald Zaffos,
Director, Contract Policy Division.

0
Accordingly, the interim rule amending 48 CFR parts 5, 6, 9, 12, 14, 
17, 22, 25, and 52 which was published at 69 FR 77870 on December 28, 
2004, is adopted as a final rule with changes:
0
1. The authority citation for 48 CFR parts 5, 6, 9, 12, 14, 17, 22, 25, 
and 52 continues to read as follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 25--FOREIGN ACQUISITION


25.003  [Amended]

0
2. Amend section 25.003, in paragraph (2) of the definition 
``Designated country'' and ``Free Trade Agreement country'' by removing 
``Morocco,''.


25.400  [Amended]

0
3. Amend section 25.400 by--
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a. Adding in paragraph (a)(2)(iii) the word ``and'' at the end of the 
paragraph;
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b. Removing from the end of paragraph (a)(2)(iv) the word ``and''; and
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c. Removing paragraph (a)(2)(v).


25.401  [Amended]

0
4. Amend section 25.401 in paragraph (b), in the table, in the sixth 
column, in the heading, by removing the text ``and Morocco''.


25.402  [Amended]

0
5. Amend section 25.402 in paragraph (b), in the table, in the third 
row, by removing the entry ``Morocco FTA'' and its corresponding line 
items ``175,000'', ``175,000'', and ``6,725,000''.


25.1102  [Amended]

0
6. Amend section 25.1102 by removing from paragraph (c)(3) ``, Chilean, 
or Moroccan'' and adding ``or Chilean'' in its place.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


52.212-5  [Amended]

0
7. Amend section 52.212-5 by revising the date of the clause to read 
``(JAN 2006)''; and by removing from paragraphs (b)(24)(i) and (b)(25) 
``(JAN 2005)'' and adding ``(JAN 2006)'' in its place.


52.225-3  [Amended]

0
8. Amend section 52.225-3 by revising the date of the clause to read 
``(JAN 2006)''; and in paragraph (c) by removing ``(except the Morocco 
FTA)''.


52.225-5  [Amended]

0
9. Amend section 52.225-5 by revising the date of the clause to read 
``(JAN 2006)''; and in paragraph (a), in the definition ``Designated 
country'' by removing from paragraph (2) ``Morocco,''.


52.225-11  [Amended]

0
10. Amend section 52.225-11 by--

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a. Revising the date of the clause to read ``(JAN 2006)'';
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b. In paragraph (a), in the definition ``Designated country'' by 
removing from paragraph (2) ``Morocco,''; and
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c. In Alternate I by--
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1. Revising the date of Alternate I to read ``(JAN 2006)'';
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2. Removing from the introductory paragraph ``, Chilean, or Moroccan'' 
and adding ``or Chilean'' in its place;
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3. Removing from the definition ``Australian, Chilean, or Moroccan 
construction material'' ``, Chilean, or Moroccan'' and adding ``or 
Chilean'' in its place; and in paragraphs (1) and (2) by removing ``, 
Chile, or Morocco'' and adding ``or Chile'' in its place; and
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4. Removing from paragraph (b)(1) ``and Australian, Chilean, and 
Moroccan'' and adding ``, Australian or Chilean'' in its place; and by 
removing from paragraph (b)(2) ``, Chilean, or Moroccan'' and adding 
``or Chilean'' in its place.


52.225-12  [Amended]

0
11. Amend section 52.225-12 by revising the date of Alternate II to 
read ``(JAN 2006)''; and by removing from paragraphs (a), (d)(1) twice, 
and (d)(3) twice ``, Chilean, or Moroccan'' and adding ``or Chilean'' 
in its place.
[FR Doc. 05-24549 Filed 12-30-05; 8:45 am]
BILLING CODE 6820-EP-S