[Federal Register Volume 75, Number 127 (Friday, July 2, 2010)]
[Rules and Regulations]
[Pages 38689-38691]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-15901]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 22, 25, and 52

[FAC 2005-43; FAR Case 2009-040; Item V; Docket 2010-0092, Sequence 1]
RIN 9000-AL57


Federal Acquisition Regulation; FAR Case 2009-040, 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 (the Councils) are issuing an interim 
rule amending the Federal Acquisition Regulation (FAR) 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: July 2, 2010.
    Comment Date: Interested parties should submit written comments to 
the Regulatory Secretariat on or before August 31, 2010 to be 
considered in the formulation of a final rule.

ADDRESSES: Submit comments identified by FAC 2005-43, FAR Case 2009-
040, by any of the following methods:
     Regulations.gov: http://www.regulations.gov.
    Submit comments via the Federal eRulemaking portal by inputting 
``FAR Case 2009-040'' under the heading ``Enter Keyword or ID'' and 
selecting ``Search''. Select the link ``Submit a Comment'' that 
corresponds with ``FAR Case 2009-040''. Follow the instructions 
provided at the ``Submit a Comment'' screen. Please include your name, 
company name (if any), and ``FAR Case 2009-040'' on your attached 
document.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (MVCB), 1800 F Street, NW., Room 4041, ATTN: Hada Flowers, 
Washington, DC 20405.
    Instructions: Please submit comments only and cite FAC 2005-43, FAR 
case 2009-040, in all correspondence related to this case. All comments 
received will be posted without change to http://www.regulations.gov, 
including any personal and/or business confidential information 
provided.

FOR FURTHER INFORMATION CONTACT: For clarification of content, contact 
Ms. Cecelia L. Davis, Procurement Analyst, at (202) 219-0202. Please 
cite FAC 2005-43, FAR Case 2009-040. For information pertaining to 
status or publication schedules, contact the Regulatory Secretariat at 
(202) 501-4755.

SUPPLEMENTARY INFORMATION:

A. Background

    Every two years, the trade agreements thresholds are adjusted 
according to a pre-determined formula under the agreements. On December 
29, 2009 (74 FR 68907), the United States Trade Representative 
established new procurement thresholds. These thresholds became 
effective on January 1, 2010. The United States Trade Representative 
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................................................           $203,000           $203,000         $7,804,000
FTAs:
    Australia FTA......................................             70,079             70,079          7,804,000
    Bahrain FTA........................................            203,000            203,000          9,110,318
    CAFTA-DR (Costa Rica, Dominican Republic, El                    70,079             70,079          7,804,000
     Salvador, Guatemala, Honduras, and Nicaragua).....
    Chile FTA..........................................             70,079             70,079          7,804,000
    Morocco FTA........................................            203,000            203,000          7,804,000
NAFTA:
    --Canada...........................................             25,000             70,079          9,110,318
    --Mexico...........................................             70,079             70,079          9,110,318
Oman FTA...............................................            203,000            203,000          9,110,318
Peru FTA...............................................            203,000            203,000          7,804,000
Singapore FTA..........................................             70,079             70,079          7,804,000
Israeli Trade Act......................................             50,000  .................  .................
----------------------------------------------------------------------------------------------------------------

B. Executive Order 12866

    This is a significant regulatory action and, therefore, was 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.

C. Regulatory Flexibility Act

    The Councils do not expect this interim rule to have a significant 
economic impact on a substantial number of small entities within the

[[Page 38690]]

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, an Initial 
Regulatory Flexibility Analysis has not been performed. The Councils 
invite comments from small business concerns and other interested 
parties on the expected impact of this rule on small entities.
    The Councils will also consider comments from small entities 
concerning the existing regulations in parts 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 (FAC 2005-43, FAR Case 
2009-040) in all correspondence.

D. 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 
9000-0130 (FAR 52.225-4), 9000-0025 (FAR 52.225-6) and 9000-0141 (FAR 
52.225-9, 52.225-11, 52.225-21, and 52.225-23). The interim rule 
affects the prescriptions for use of the certifications. However, there 
is no impact on the estimated burden hours, because the threshold 
changes are in line with inflation and maintain the status quo.

E. 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. 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 new thresholds 
became effective on January 1, 2010. However, pursuant to 41 U.S.C. 
418b and FAR 1.501-3(b), the Councils will consider public comments 
received in response to this interim rule in the formation of the final 
rule. Absent this regulatory change, this requirement would not be 
incorporated into the FAR and implemented by the acquisition community.

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

    Government procurement.

    Dated: June 25, 2010.
Edward Loeb,
Director, Acquisition 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) ``$67,826'' 
and adding ``$70,079'' in its place; and removing from paragraph (b)(4) 
``$194,000'' and adding ``$203,000'' in its place.

PART 25--FOREIGN ACQUISITION


25.202   [Amended]

0
3. Amend section 25.202 by removing from paragraph (c) ``$7,443,000'' 
and adding ``$7,804,000'' in its place.
0
4. Amend section 25.402 by revising the table that follows 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................................................           $203,000           $203,000         $7,804,000
FTAs:
    Australia FTA......................................             70,079             70,079          7,804,000
    Bahrain FTA........................................            203,000            203,000          9,110,318
    CAFTA-DR (Costa Rica, El Salvador, Dominican                    70,079             70,079          7,804,000
     Republic, Guatemala, Honduras, and Nicaragua).....
    Chile FTA..........................................             70,079             70,079          7,804,000
    Morocco FTA........................................            203,000            203,000          7,804,000
NAFTA:
    --Canada...........................................             25,000             70,079          9,110,318
    --Mexico...........................................             70,079             70,079          9,110,318
Oman FTA...............................................            203,000            203,000          9,110,318
Peru FTA...............................................            203,000            203,000          7,804,000
Singapore FTA..........................................             70,079             70,079          7,804,000
Israeli Trade Act......................................             50,000  .................  .................
----------------------------------------------------------------------------------------------------------------


0
4. Amend section 25.504-2 by revising Example 1. to read as follows:


25.504-2  WTO GPA/Caribbean Basin Trade Initiative/FTAs.

    Example 1.

------------------------------------------------------------------------
 
------------------------------------------------------------------------
Offer A........................         304,000  U.S.-made end product
                                                  (not domestic).
Offer B........................         303,000  U.S.-made end product
                                                  (domestic), small
                                                  business.
Offer C........................         300,000  Eligible product.
Offer D........................         295,000  Noneligible product
                                                  (not U.S.-made).
------------------------------------------------------------------------


[[Page 38691]]

* * * * *


25.603   [Amended]

0
5. Amend section 25.603 in paragraph (c) by removing ``$7,443,000'' and 
adding ``$7,804,000'' in its place.


25.1101   [Amended]

0
6. Amend section 25.1101 by--
0
a. Removing from paragraph (b)(1)(i)(A) ``$194,000'' and adding 
``$203,000'' in its place;
0
b. Removing from paragraphs (b)(1)(iii) and (b)(2)(iii) ``$67,826'', 
and adding ``$70,079'' in its place;
0
c. Removing from paragraphs (c)(1) and (d) ``$194,000'', and adding 
``$203,000'' in its place.

0
7. Amend section 25.1102 by removing from paragraphs (a) introductory 
text and (c) introductory text ``$7,443,000'' and adding ``$7,804,000'' 
in its place; revising the first sentence in paragraph (c)(3); and 
revising paragraph (d)(3) to read as follows:


25.1102  Acquisition of construction.

* * * * *
    (c) * * *
    (3) For acquisitions valued at $7,804,000 or more, but less than 
$9,110,318, use the clause with its Alternate I. * * *
    (d) * * *
    (3) For acquisitions valued at $7,804,000 or more, but less than 
$9,110,318, use the clause with its Alternate II.
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
8. Amend section 52.212-5 by revising the date of the clause and 
paragraph (b)(20) to read as follows:


52.212-5   Contract Terms and Conditions Required to Implement Statutes 
or Executive Orders--Commercial Items.

* * * * *

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR 
EXECUTIVE ORDERS--COMMERCIAL ITEMS (JUL 2010)

    (b) * * *
    ----(20) 52.222-19, Child Labor--Cooperation with Authorities 
and Remedies (Jul 2010) (E.O. 13126).
* * * * *

0
9. Amend section 52.213-4 by revising the date of the clause and the 
first sentence of paragraph (b)(1)(i) to read as follows:


52.213-4   Terms and Conditions--Simplified Acquisitions (Other Than 
Commercial Items).

* * * * *

TERMS AND CONDITIONS--SIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL 
ITEMS) (JUL 2010)

    (b) * * *
    (1) * * *
    (i) 52.222-19, Child Labor--Cooperation with Authorities and 
Remedies (Jul 2010) (E.O. 13126). * * *
* * * * *

0
10. Amend section 52.222-19 by revising the date of the clause; 
removing from paragraph (a)(3) ``$67,826'' and adding ``$70,079'' in 
its place; and removing from paragraph (a)(4) ``$194,000'' and adding 
``$203,000'' in its place.
    The revised text reads as follows:
    52.222-19 Child Labor--Cooperation with Authorities and Remedies.
* * * * *

CHILD LABOR--COOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)

* * * * *
[FR Doc. 2010-15901 Filed 7-1-10; 8:45 am]
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