[Federal Register Volume 71, Number 3 (Thursday, January 5, 2006)]
[Rules and Regulations]
[Pages 864-866]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-54]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 22, 25, and 52

[FAC 2005-08; FAR Case 2005-030]
RIN 9000-AK40


Federal Acquisition Regulation; Trade Agreements--Thresholds

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

ACTION: Interim rule with request for comments.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed on an interim 
rule amending the Federal Acquisition Regulation (FAR) to implement the 
increased thresholds for the World Trade Organization Government 
Procurement Agreement and Free Trade Agreements.

DATES: Effective Date: January 5, 2006.
    Comment Date: Interested parties should submit written comments to 
the FAR Secretariat on or before March 6, 2006 to be considered in the 
formulation of a final rule.

ADDRESSES: Submit comments identified by FAC 2005-08, FAR case 2005-
030, by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Agency Web Site: http://www.acqnet.gov/far/ProposedRules/proposed.htm. Click on the FAR case number to submit comments.
     E-mail: [email protected]. Include FAC 2005-08, FAR 
case 2005-030 in the subject line of the message.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (VIR), 1800 F Street, NW, Room 4035, ATTN: Laurieann 
Duarte, Washington, DC 20405.
    Instructions: Please submit comments only and cite FAC 2005-08, FAR 
case 2005-030, in all correspondence related to this case. All comments 
received will be posted without change to http://www.acqnet.gov/far/ProposedRules/proposed.htm, including any personal and/or business 
confidential information provided.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Ms. Kimberly Marshall, Procurement Analyst, at (202) 219-0986. Please 
cite FAC 2005-08, FAR case 2005-030. For

[[Page 865]]

information pertaining to status or publication schedules, contact the 
FAR Secretariat at (202) 501-4755.

SUPPLEMENTARY INFORMATION:

A. Background

    Every two years, the trade agreements thresholds are escalated 
according to a pre-determined formula set forth in the agreements. The 
United States Trade Representative published the new thresholds in the 
December 12, 2005, Federal Register (70 FR 73510 to 73511) and has 
specified the following new thresholds:

 
----------------------------------------------------------------------------------------------------------------
                                                             Supply Contract  Service Contract    Construction
                      Trade Agreement                         (equal to or      (equal to or     Contract (equal
                                                               exceeding)        exceeding)     to or exceeding)
----------------------------------------------------------------------------------------------------------------
WTO GPA...................................................          $193,000          $193,000        $7,407,000
FTAs......................................................  ................  ................  ................
 NAFTA....................................................  ................  ................
 -Canada..................................................            25,000            64,786         8,422,165
 -Mexico..................................................            64,786            64,786         8,422,165
 Chile FTA................................................            64,786            64,786         7,407,000
 Singapore FTA............................................            64,786            64,786         7,407,000
 Australia FTA............................................            64,786            64,786         7,407,000
----------------------------------------------------------------------------------------------------------------

    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

    This interim rule is not expected to 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. The threshold 
changes are in line with inflation and only maintain the status quo. 
Therefore, an Initial Regulatory Flexibility Analysis has not been 
performed. We invite comments from small business concerns and other 
interested parties on this issue. The Councils will also consider 
comments from small entities concerning the affected FAR Parts 22, 25, 
and 52 in accordance with 5 U.S.C. 610. Interested parties must submit 
such comments separately and should cite 5 U.S.C 601, et seq. (FAC 
2005-08, FAR case 2005-030), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does apply; however, the 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, 9000-0141, and 9000-0155.

D. Determination to Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense (DoD), the Administrator of General Services (GSA), and the 
Administrator of the National Aeronautics and Space Administration 
(NASA) that urgent and compelling reasons exist to promulgate this 
interim rule without prior opportunity for public comment. The United 
States Trade Representative published the thresholds in the December 
12, 2005, Federal Register (70 FR 73510 to 73511). This action is 
necessary because these threshold changes go into effect January 1, 
2006. However, pursuant to Public Law 98-577 and FAR 1.501, the 
Councils will consider public comments received in response to this 
interim rule in the formation of the final rule.

List of Subjects in 48 CFR Parts 22, 25, and 52

    Government procurement.

    Dated: December 28, 2005.
Gerald Zaffos,
Director, Contract Policy Division.

0
Therefore, DoD, GSA, and NASA amend 48 CFR parts 22, 25, and 52 as set 
forth below:
0
1. The authority citation for 48 CFR parts 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 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS


22.1503   [Amended]

0
2. Amend section 22.1503 by removing from paragraph (b)(3) ``$58,550'' 
and adding ``$64,786'' in its place; and removing from paragraph (b)(4) 
``$175,000'' and adding ``$193,000'' in its place.

PART 25--FOREIGN ACQUISITION


25.202   [Amended]

0
3. Amend section 25.202 by removing from paragraph (c) ``$6,725,000'' 
and adding ``$7,407,000'' in its place.
0
4. Amend section 25.402 by revising the table following paragraph (b) 
to read as follows:


25.402   General.

* * * * *
    (b) * * *

 
----------------------------------------------------------------------------------------------------------------
                                                             Supply Contract  Service Contract    Construction
                      Trade Agreement                         (equal to or      (equal to or     Contract (equal
                                                               exceeding)        exceeding)     to or exceeding)
----------------------------------------------------------------------------------------------------------------
WTO GPA...................................................          $193,000          $193,000        $7,407,000
FTAs......................................................  ................  ................  ................
 NAFTA....................................................  ................  ................
 -Canada..................................................            25,000            64,786         8,422,165
 -Mexico..................................................            64,786            64,786         8,422,165

[[Page 866]]

 
 Chile FTA................................................            64,786            64,786         7,407,000
 Singapore FTA............................................            64,786            64,786         7,407,000
 Australia FTA............................................            64,786            64,786         7,407,000
Israeli Trade Act.........................................            50,000           .......           .......
----------------------------------------------------------------------------------------------------------------

25.601  [Amended]

0
5. Amend section 25.601 by removing from paragraph (a)(1) ``$175,000'' 
and adding ``$193,000'' in its place; removing from paragraph (a)(2) 
``$6,725,000'' and adding ``$7,407,000'' in its place; and removing 
from paragraph (a)(3)(ii) ``$175,000'' and adding ``$193,000'' in its 
place.


25.1101   [Amended]

0
6. Amend section 25.1101 by--
0
a. Removing from paragraph (b)(1)(i)(A) ``$175,000'' and adding 
``$193,000'' in its place; removing from paragraph (b)(1)(iii) 
``$58,550'' and adding ``$64,786'' in its place; and removing from 
paragraph (b)(2)(iii) ``$58,550'' and adding ``$64,786'' in its place;
0
b. Removing from paragraph (c)(1) ``$175,000'' and adding ``$193,000'' 
in its place; and
0
c. Removing from paragraph (d) ``$175,000'' and adding ``$193,000'' in 
its place.


25.1102   [Amended]

0
7. Amend section 25.1102 by--
0
a. Removing from the introductory text of paragraph (a) ``$6,725,000'' 
and adding ``$7,407,000'' in its place;
0
b. Removing from the introductory text of paragraph (c) ``$6,725,000'' 
and adding ``$7,407,000'' in its place; and removing from paragraph 
(c)(3) ``$6,725,000'' and ``$7,611,532'' and adding ``$7,407,000'' and 
``$8,422,165'', respectively, in their place; and
0
c. Removing from paragraph (d)(3) ``$6,725,000'' and ``$7,611,532'' and 
adding ``$7,407,000'' and ``$8,422,165'', respectively, in their place.


25.1103   [Amended]

0
8. Amend section 25.1103 by removing from paragraphs (c)(1)(i) and 
(c)(1)(ii)(B) ``$175,000'' and adding ``$193,000'' in their place.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


52.212-5  [Amended]

0
9. Amend section 52.212-5 by revising the date of the clause to read 
``(JAN 2006)'' and removing from paragraph (b)(15) of the clause ``(Jun 
2004)'' and adding ``(Jan 2006)'' in its place.


52.213-4  [Amended]

0
10. Amend section 52.213-4 by revising the date of the clause to read 
``(Jan 2006)'' and removing from paragraph (b)(1)(i) of the clause 
``(Jun 2004)'' and adding ``(Jan 2006)'' in its place.


52.222-19  [Amended]

0
11. Amend section 52.222-19 by revising the date of the clause to read 
``(JAN 2006)''; removing from paragraph (a)(3) of the clause 
``$58,550'' and adding ``$64,786'' in its place; and removing from 
paragraph (a)(4) of the clause ``$175,000'' and adding ``$193,000'' in 
its place.
[FR Doc. 06-54 Filed 1-4-06; 8:45 am]
BILLING CODE 6820-EP-S