[Federal Register Volume 75, Number 109 (Tuesday, June 8, 2010)]
[Rules and Regulations]
[Pages 32637-32638]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-13523]

Federal Register / Vol. 75, No. 109 / Tuesday, June 8, 2010 / Rules 

and Regulations

[[Page 32637]]



Defense Acquisition Regulations System

48 CFR Part 225

RIN 0750-AG59

Defense Federal Acquisition Regulation Supplement; Trade 

Agreements Thresholds (DFARS Case 2009-D040)

AGENCY: Defense Acquisition Regulations System; Department of Defense 


ACTION: Interim rule with request for comments.


SUMMARY: DoD is issuing an interim rule amending the Defense Federal 

Acquisition Regulation Supplement (DFARS) to incorporate increased 

thresholds for application of the World Trade Organization Government 

Procurement Agreement and the Free Trade Agreements, as determined by 

the United States Trade Representative.

DATES: Effective Date: June 8, 2010.

    Comment Date: Comments on the interim rule should be submitted in 

writing to the address shown below on or before August 9, 2010 to be 

considered in the formulation of the final rule.

ADDRESSSES: You may submit comments, identified by DFARS Case 2009-

D040, using any of the following methods:

     Federal eRulemaking Portal: http://www.regulations.gov.

    Follow the instructions for submitting comments.

     E-mail: [email protected]. Include DFARS Case 2009-D040 in the 

subject line of the message.

     Fax: 703-602-0350.

     Mail: Defense Acquisition Regulations System, Attn: Ms. 

Amy Williams, OUSD (AT&L) DPAP (DARS), 3060 Defense Pentagon, Room 

3B855, Washington, DC 20301-3060.

    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, 703-602-0328.


A. Background

    This interim rule amends the clause prescriptions at DFARS 225.1101 

and 225.7503 to reflect increased thresholds for application of the 

trade agreements. 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 has specified the 

following new thresholds (74 FR 68907, December 29, 2009):


                                              Supply       Construction

                                             contract        contract

             Trade Agreement               (equal to or    (equal to or

                                            exceeding)      exceeding)


WTO GPA.................................        $203,000      $7,804,000


    Australia FTA.......................          70,079       7,804,000

    Bahrain FTA.........................         203,000       9,110,318

    CAFTA-DR (Costa Rica, Dominican               70,079       7,804,000

     Republic, El Salvador, Guatemala,

     Honduras, and Nicaragua)...........

    Chile FTA...........................          70,079       7,804,000

    Morocco FTA.........................         203,000       7,804,000


    --Canada............................          25,000       9,110,318

    --Mexico............................          70,079       9,110,318

    Peru FTA............................         203,000       7,804,000

    Singapore FTA.......................          70,079       7,804,000


    This rule was subject to Office of Management and Budget review 

under Executive Order 12866, Regulatory Planning and Review, dated 

September 30, 1993.

B. Regulatory Flexibility Act

    DoD does not expect this interim rule 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., 

because the dollar threshold changes are designed to keep pace with 

inflation and thus maintain the status quo. Therefore, DoD has not 

performed an initial regulatory flexibility analysis. DoD invites 

comments from small business concerns and other interested parties on 

the expected impact of this rule on small entities.

    DoD will also consider comments from small entities concerning the 

existing regulations in subparts affected by this rule in accordance 

with 5 U.S.C. 610. Interested parties must submit such comments 

separately and should cite 5 U.S.C. 610 (DFARS Case 2009-D040) in 


C. Paperwork Reduction Act

    This interim rule affects the certification and information 

collection requirements in the provisions at DFARS 252.225-7020 and 

252.225-7035, currently approved under Office of Management and Budget 

Control Number 0704-0229. However, there is no impact on the estimated 

burden hours. The dollar threshold changes are in line with inflation 

and maintain the status quo.

D. Determination To Issue an Interim Rule

    A determination has been made under the authority of the Secretary 

of Defense, that urgent and compelling reasons exist to publish an 

interim rule prior to affording the public an opportunity to comment. 

This interim rule incorporates increased dollar thresholds for 

application of the World Trade Organization Government Procurement 

Agreement and the Free Trade Agreements, as determined by the United 

States Trade Representative. This action is necessary because the 

increased thresholds were effective January 1, 2010. Comments received 

in response to this interim rule will be considered in the formation of 

the final rule.

List of Subjects in 48 CFR Part 225

    Government procurement.

Ynette R. Shelkin,

Editor, Defense Acquisition Regulations System.


Therefore, 48 CFR part 225 is amended as follows:



1. The authority citation for 48 CFR part 225 continues to read as 


[[Page 32638]]

    Authority: 41 U.S.C. 421 and 48 CFR chapter 1.

225.1101  [Amended]


2. Section 225.1101 is amended in paragraph (11)(i) introductory text 

by removing ``$194,000'' and adding in its place ``$203,000''; and in 

paragraphs (11)(i)(A) and (11)(i)(B) by removing ``$67,826'' and adding 

in its place ``$70,079''.

225.7503  [Amended]


3. Section 225.7503 is amended in paragraph (a) by removing 

``$7,443,000'' and adding in its place ``$7,804,000''; and in paragraph 

(b) by removing ``$7,443,000'' and adding in its place ``$7,804,000'', 

and by removing ``$8,817,449'' and adding in its place ``$9,110,318''.

[FR Doc. 2010-13523 Filed 6-7-10; 8:45 am]