[Federal Register Volume 77, Number 91 (Thursday, May 10, 2012)]
[Rules and Regulations]
[Pages 27548-27550]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-11149]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 25 and 52

[FAC 2005-59; FAR Case 2012-012; Item II; Docket 2012-0012, Sequence 1]
RIN 9000-AM24


Federal Acquisition Regulation; Free Trade Agreement--Colombia

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

ACTION: Interim rule.

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SUMMARY: DoD, GSA, and NASA are issuing an interim rule amending the 
Federal Acquisition Regulation (FAR) to implement the United States-
Colombia Trade Promotion Agreement. This Trade Promotion Agreement is a 
free trade agreement that provides for mutually non-discriminatory 
treatment of eligible products and services from Colombia.

DATES: Effective Date: May 15, 2012.
    Comment Date: Interested parties should submit written comments to 
the Regulatory Secretariat on or before July 9, 2012 to be considered 
in the formulation of a final rule.

ADDRESSES: Submit comments identified by FAC 2005-59, FAR Case 2012-
012, by any of the following methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by searching ``FAR Case 
2012-012''. Select the link ``Submit a Comment'' that corresponds with 
``FAR Case 2012-012.'' Follow the instructions provided at the ``Submit 
a Comment'' screen. Please include your name, company name (if any), 
and ``FAR Case 2012-012'' on your attached document.
     Fax: 202-501-4067.
     Mail: General Services Administration, Regulatory 
Secretariat (MVCB), ATTN: Hada Flowers, 1275 First Street NE., 7th 
Floor, Washington, DC 20417.
    Instructions: Please submit comments only and cite FAC 2005-59, FAR 
Case 2012-012, in all correspondence related

[[Page 27549]]

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: 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 2005-59, FAR Case 2012-
012.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD, GSA, and NASA are issuing an interim rule amending the Federal 
Acquisition Regulation (FAR), to amend FAR part 25 and the 
corresponding provisions and clauses in FAR part 52 to implement the 
United States-Colombia Trade Promotion Agreement Implementation Act 
(Pub. L. 112-42) (19 U.S.C. 3805 note).
    This Trade Promotion Agreement is designated in the FAR as the 
Colombia Free Trade Agreement (FTA). The FTA provides for--
     Waiver of the applicability of the Buy American statute 
(41 U.S.C. chapter 83) for some foreign supplies and construction 
materials from Colombia; and
     Applicability of specified procurement procedures designed 
to ensure fairness in the acquisition of supplies and services (see FAR 
25.408).

II. Discussion and Analysis

    This interim rule adds Colombia to the definition of ``Free Trade 
Agreement country'' in multiple locations in the FAR.
    The Colombia FTA covers acquisition of supplies and services equal 
to or exceeding $77,494. The threshold for the Colombia FTA is 
$7,777,000 for construction. The excluded services for the Colombia FTA 
are the same as for the Bahrain FTA, Dominican Republic-Central 
American FTA, Chile FTA, NAFTA, Oman FTA, and Peru FTA.
    Because the Colombia FTA construction threshold of $7,777,000 is 
the same as the WTO GPA threshold, no new clause alternates are 
required for the Buy American Act--Construction Materials under Trade 
Agreements provision and clause (FAR 52.225-11 and 52.225-12) or the 
Recovery Act FAR clauses at 52.225-23 and 52.225-24.

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 a significant regulatory action and, therefore, was 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

    DoD, GSA, and NASA do 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. Although the rule now opens up Government procurement to the goods 
and services of Colombia, DoD, GSA, and NASA do not anticipate 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 Defense Federal Acquisition Regulation Supplement 225.401-70, 
and acquisitions that are set aside or provide other form of preference 
for small businesses are exempt. FAR 19.502-2 states that acquisitions 
of supplies or services with an anticipated dollar value between $3,000 
and $150,000 (with some exceptions) are automatically reserved for 
small business concerns.
    Therefore, an Initial Regulatory Flexibility Analysis has not been 
performed. DoD, GSA, and NASA invite comments from small business 
concerns and other interested parties on the expected impact of this 
rule on small entities.
    DoD, GSA, and NASA will also consider comments from small entities 
concerning the existing regulations in subparts affected by the 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 2005-59, FAR Case 
2012-012), in correspondence.

V. Paperwork Reduction Act

    This rule affects the certification and information collection 
requirements in the provisions at FAR 52.212-3, 52.225-4, 52.225-6, and 
52.225-11 currently approved under OMB Control Numbers 9000-0136, 9000-
0130, 9000-0025, and 9000-0141, respectively, in accordance with the 
Paperwork Reduction Act (44 U.S.C. chapter 35). The impact, however, is 
negligible because it is just a question of which category offered 
goods from Colombia would be listed under.

VI. 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 action 
is necessary because the effective date of the Free Trade Agreement 
with Colombia is May 15, 2012. This is a reciprocal agreement, approved 
by Congress and the President of the United States. It is important for 
the United States Government to honor its new trade obligations to 
Colombia, as Colombia in turn honors its new trade obligations to the 
United States. However, pursuant to 41 U.S.C. 1707 and FAR 1.501-3(b), 
DoD, GSA, and NASA 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 25 and 52

    Government procurement.

    Dated: May 3, 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 25 and 52 as set 
forth below:

0
1. The authority citation for 48 CFR parts 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
3. Amend section 25.003 by removing from paragraph (2) of the 
definition ``Designated country'', and the definition ``Free Trade 
Agreement country'' the words ``Chile, Costa Rica'' and adding the 
words ``Chile, Colombia, Costa Rica'' in their place.

0
4. Amend section 25.400 by removing from paragraph (a)(2)(ix) ``; and'' 
and adding ``;'' in its place; removing from paragraph (a)(2)(x) ``;'' 
and adding ``; and'' in its place; and adding paragraph (a)(2)(xi) to 
read as follows:


25.400  Scope of subpart.

    (a) * * *

[[Page 27550]]

    (2) * * *
    (xi) Colombia FTA (the United States-Colombia Trade Promotion 
Agreement Implementation Act (Pub. L. 112-42) (19 U.S.C. 3805 note));
* * * * *


25.401  [Amended]

0
5. Amend section 25.401 in the table that follows paragraph (b) by 
removing from the table heading ``CAFTA-DR, Chile'' and adding ``CAFTA-
DR, Colombia FTA, Chile'' in its place.

0
6. 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................................................           $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
    Colombia FTA.......................................             77,494             77,494          7,777,000
    Korea FTA..........................................            100,000            100,000          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                 --                 --
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PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
7. Amend section 52.212-5 by revising the date of the clause, and 
paragraphs (b)(40)(i) and (b)(41) 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 (MAY 2012)

* * * * *
    (b) * * *
    ---- (40)(i) 52.225-3, Buy American Act--Free Trade Agreements--
Israeli Trade Act (MAY 2012) (41 U.S.C. chapter 83, 19 U.S.C. 3301 
note, 19 U.S.C. 2112 note, 19 U.S.C. 3805 note, 19 U.S.C. 4001 note, 
Pub. L. 103-182, 108-77, 108-78, 108-286, 108-302, 109-53, 109-169, 
109-283, 110-138, 112-41, and 112-42).
* * * * *
    ---- (41) 52.225-5, Trade Agreements (MAY 2012) (19 U.S.C. 2501, et 
seq., 19 U.S.C. 3301 note).
* * * * *


52.225-3  [Amended]

0
8. Amend section 52.225-3 by revising the date of the clause to read 
``(MAY 2012)''; and in paragraph (a) removing from the definition 
``Free Trade Agreement country'' the words ``Chile, Costa Rica'' and 
adding the words ``Chile, Colombia, Costa Rica'' in their place.


52.225-5  [Amended]

0
9. Amend section 52.225-5 by revising the date of the clause to read 
``(MAY 2012)''; and in paragraph (a) removing from paragraph (2) of the 
definition ``Designated country'' the words ``Chile, Costa Rica'' and 
adding the words ``Chile, Colombia, Costa Rica'' in their place.


52.225-11  [Amended]

0
10. Amend section 52.225-11 by revising the date of the clause to read 
``(MAY 2012)''; and in paragraph (a) removing from paragraph (2) of the 
definition ``Designated country'' the words ``Chile, Costa Rica'' and 
adding the words ``Chile, Colombia, Costa Rica'' in their place.


52.225-23  [Amended]

0
11. Amend section 52.225-23 by revising the date of the clause to read 
``(MAY 2012)''; and in paragraph (a) removing from paragraph (2) of the 
definitions ``Designated country'' and ``Recovery Act designated 
country'' the words ``Chile, Costa Rica'' and adding the words ``Chile, 
Colombia, Costa Rica'' in their place.

[FR Doc. 2012-11149 Filed 5-9-12; 8:45 am]
BILLING CODE 6820-EP-P