[Federal Register Volume 77, Number 42 (Friday, March 2, 2012)]
[Rules and Regulations]
[Pages 12933-12935]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-4492]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 22, 25, and 52

[FAC 2005-56; FAR Case 2012-002; Item V; Docket 2012-0002, Sequence 1]
RIN 9000-AM17


Federal Acquisition Regulation: Trade Agreements Thresholds

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

ACTION: Final rule.

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SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to incorporate adjusted 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: March 2, 2012.

FOR FURTHER INFORMATION CONTACT: Ms. Cecelia L. Davis, Procurement 
Analyst, at 202-219-0202 for clarification of content. For information 
pertaining to status or publication schedules, contact the Regulatory 
Secretariat at 202-501-4755. Please cite FAC 2005-56, FAR Case 2012-
002.

SUPPLEMENTARY INFORMATION: 

I. Background

    Every two years, the trade agreements thresholds are adjusted 
according to a pre-determined formula set forth in the agreements. The 
United States Trade Representative has specified the following new 
thresholds in the Federal Register (see 76 FR 76808, published on 
December 8, 2011):

----------------------------------------------------------------------------------------------------------------
                                                          Supply contract    Service contract     Construction
                    Trade agreement                         (equal to or       (equal to or     contract  (equal
                                                             exceeding)         exceeding)     to or  exceeding)
----------------------------------------------------------------------------------------------------------------
WTO GPA................................................           $202,000           $202,000         $7,777,000
FTAs:
    Australia FTA......................................             77,494             77,494          7,777,000
    Bahrain FTA........................................            202,000            202,000         10,074,262
    CAFTA-DR (Costa Rica, Dominican Republic, El                    77,494             77,494          7,777,000
     Salvador, Guatemala, Honduras, and Nicaragua).....
    Chile FTA..........................................             77,494             77,494          7,777,000
    Morocco FTA........................................            202,000            202,000          7,777,000
    NAFTA:                                               .................  .................  .................
        --Canada.......................................             25,000             77,494         10,074,262
        --Mexico.......................................             77,494             77,494         10,074,262
        Oman FTA.......................................            202,000            202,000         10,074,262
        Peru FTA.......................................            202,000            202,000          7,777,000
    Singapore FTA......................................             77,494             77,494          7,777,000
Israeli Trade Act......................................             50,000  .................  .................
----------------------------------------------------------------------------------------------------------------

II. Discussion and Analysis

    This final rule implements the new thresholds in FAR subpart 25.4, 
Trade Agreements, and other sections in the FAR that include trade 
agreements thresholds (i.e., 22.1503, 25.202, 25.603, 25.1101, and 
25.1102).
    In addition, changes are required to FAR clause 52.204-8, Annual 
Representations and Certifications, and FAR clause 52.222-19, Child 
Labor-Cooperation with Authorities and Remedies. Conforming changes are 
also required to the clause dates in FAR clause 52.212-5, Contract 
Terms and Conditions Required to Implement Statutes or Executive 
Orders-Commercial Items, and FAR clause 52.213-4, Terms and Conditions-
Simplified Acquisitions (Other Than Commercial Items).

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

IV. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule because 
this final rule does not constitute a significant FAR revision within 
the meaning of FAR 1.501-1 and 41 U.S.C. 1707 and does not require 
publication for public comment.

V. Paperwork Reduction Act

    The final rule does not contain any information collection 
requirements that require the approval of the Office of Management and 
Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35).

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

    Government procurement.


[[Page 12934]]


    Dated: February 21, 2012.
Laura Auletta,
Director, Office of Governmentwide Acquisition Policy, Office of 
Acquisition Policy, Office of Governmentwide Policy.
    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) ``$70,079'' 
and adding ``$77,494'' in its place, and by removing from paragraph 
(b)(4) ``$203,000'' and adding ``$202,000'' in its place.

PART 25--FOREIGN ACQUISITION


25.202  [Amended]

0
3. Amend section 25.202 by removing from paragraph (c) ``$7,804,000'' 
and adding ``$7,777,000'' in its place.
0
4. Amend section 25.402 by revising the table in 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................................................           $202,000           $202,000         $7,777,000
FTAs:
    Australia FTA......................................             77,494             77,494          7,777,000
    Bahrain FTA........................................            202,000            202,000         10,074,262
    CAFTA-DR (Costa Rica, Dominican Republic, El                    77,494             77,494          7,777,000
     Salvador, Guatemala, Honduras, and Nicaragua).....
    Chile FTA..........................................             77,494             77,494          7,777,000
    Morocco FTA........................................            202,000            202,000          7,777,000
    NAFTA:.............................................
        --Canada.......................................             25,000             77,494         10,074,262
        --Mexico.......................................             77,494             77,494         10,074,262
        Oman FTA.......................................            202,000            202,000         10,074,262
        Peru FTA.......................................            202,000            202,000          7,777,000
        Singapore FTA..................................             77,494             77,494          7,777,000
Israeli Trade Act......................................             50,000  .................  .................
----------------------------------------------------------------------------------------------------------------

25.603  [Amended]

0
5. Amend section 25.603 by removing from paragraph (c)(1) 
``$7,804,000'' and adding ``$7,777,000'' in its place.


25.1101  [Amended]

0
6. Amend section 25.1101 by--
0
a. Removing from paragraph (b)(1)(i)(A) ``$203,000'' and adding 
``$202,000'' in its place;
0
b. Removing from paragraphs (b)(1)(iii) and (b)(2)(iii) ``$70,079'' and 
adding ``$77,494'' in its place; and
0
c. Removing from paragraphs (c)(1) and (d) ``$203,000'' and adding 
``202,000'' in its place.


25.1102  [Amended]

0
7. Amend section 25.1102 by--
0
a. Removing from the introductory text of paragraph (a) ``$7,804,000'' 
and adding ``$7,777,000'' in its place;
0
b. Removing from the introductory text of paragraph (c) ``$7,804,000'' 
and adding ``$7,777,000'' in its place;
0
c. Removing from paragraph (c)(3) ``$7,804,000'' and ``$9,110,318'' and 
adding ``$7,777,000'' and ``$10,074,262'' in their place, respectively; 
and
0
d. Removing from paragraph (d)(3) ``$7,804,000'' and ``$9,110,318'' and 
adding ``$7,777,000'' and ``$10,074,262'' in their place, respectively.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
8. Amend section 52.204-8 by revising the date of the provision as set 
forth below, and removing from paragraph (c)(1)(xvii)(C) ``$67,826'' 
and adding ``$77,494'' in its place.


52.204-8  Annual Representations and Certifications.

* * * * *

ANNUAL REPRESENTATIONS AND CERTIFICATIONS (MAR 2012)

* * * * *

0
9. Amend section 52.212-5 by revising the date of the clause and 
paragraph (b)(27) 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 (MAR 2012)

* * * * *
    (b) * * *
    --(27) 52.222-19, Child Labor-Cooperation with Authorities and 
Remedies (MAR 2012) (E.O. 13126).
* * * * *

0
10. Amend section 52.213-4 by revising the date of the clause and 
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) (MAR 2012)

* * * * *
    (b) * * *
    (1) * * *
    (i) 52.222-19, Child Labor--Cooperation with Authorities and 
Remedies (MAR 2012) (E.O. 13126). (Applies to contracts for supplies 
exceeding the micro-purchase threshold.)
* * * * *

0
11. Amend section 52.222-19 by revising the date of the clause; 
removing from paragraph (a)(3) ``$70,079'' and adding ``$77,494'' in 
its place; and removing from paragraph (a)(4) ``$203,000'' and adding 
``$202,000'' in

[[Page 12935]]

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 (MAR 2012)

* * * * *
[FR Doc. 2012-4492 Filed 3-1-12; 8:45 am]
BILLING CODE 6820-EP-P