[Federal Register Volume 78, Number 251 (Tuesday, December 31, 2013)]
[Rules and Regulations]
[Pages 80379-80381]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-31151]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 22, 25, and 52

[FAC 2005-72; FAR Case 2013-021; Item IV; Docket No. 2013-0021, 
Sequence No. 1]
RIN 9000-AM67


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 revised 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: January 1, 2014.

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 2005-72, FAR case 2013-
021.

SUPPLEMENTARY INFORMATION:

I. Background

    Every two years, the trade agreements thresholds are adjusted 
according to a pre-determined formula under the agreements. These 
thresholds become effective on January 1, 2014. On December 18, 2013 
(78 FR 76700), the United States Trade Representative published new 
procurement thresholds. 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................................................           $204,000           $204,000         $7,864,000
FTAs:
    Australia FTA......................................             79,507             79,507          7,864,000
    Bahrain FTA........................................            204,000            204,000         10,335,931
    CAFTA-DR (Costa Rica, Dominican Republic, El                    79,507             79,507          7,864,000
     Salvador, Guatemala, Honduras, and Nicaragua).....
    Chile FTA..........................................             79,507             79,507          7,864,000
    Colombia FTA.......................................             79,507             79,507          7,864,000
    Korea FTA..........................................            100,000            100,000          7,864,000
    Morocco FTA........................................            204,000            204,000          7,864,000
NAFTA:
    --Canada...........................................             25,000             79,507         10,335,931
    --Mexico...........................................             79,507             79,507         10,335,931
    Oman FTA...........................................            204,000            204,000         10,335,931
    Panama FTA.........................................            204,000            204,000          7,864,000
    Peru FTA...........................................            204,000            204,000          7,864,000
    Singapore FTA......................................             79,507             79,507          7,864,000
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 the clauses 52.204-8, Annual 
Representations and Certifications, and 52.222-19, Child Labor--
Cooperation with Authorities and Remedies, with conforming changes to 
the clause dates in 52.212-5, Contract Terms and Conditions Required to 
Implement Statutes or Executive Orders--Commercial Items, and 52.213-4, 
Terms and Conditions--Simplified Acquisitions (Other Than Commercial 
Items).

III. Publication of This Final Rule for Public Comment Is Not Required 
by Statute

    ``Publication of proposed regulations,'' 41 U.S.C. 1707, is the 
statute which applies to the publication of the Federal Acquisition 
Regulation. Paragraph (a)(1) of the statute requires that a procurement 
policy, regulation, procedure or form (including an amendment or 
modification thereof) must be published for public comment if it 
relates to the expenditure of appropriated funds, and has either a 
significant effect beyond the internal operating procedures of the 
agency issuing the policy, regulation, procedure or form, or has a 
significant cost or administrative impact on contractors or offerors. 
This final rule is not required to be published for public comment, 
because it only adjusts the thresholds according to pre-determined 
formula to adjust for changes in economic conditions, thus maintaining 
the status quo, without significant effect beyond the internal 
operating procedures of the Government.

[[Page 80380]]

IV. 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.

V. Regulatory Flexibility Act

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

VI. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) does apply, 
because the final rule affects the prescriptions for use of the 
certification and information collection requirements in the provisions 
at 52.225-4 (OMB Control No. 9000-0130, Buy American Act--Free Trade 
Agreement--Israeli Trade Certificate), and 52.225-6 (OMB Control No. 
9000-0025, Trade Agreements Certificate), and the clauses at 52.225-9, 
52.225-11, 52.225-21, and 52.225-23 (OMB Control No. 9000-0141, Buy 
American--Construction) respectively. However, there is no impact on 
the estimated burden hours, because the threshold changes are in line 
with inflation and maintain the status quo.

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

    Government procurement.

    Dated: December 19, 2013.
William Clark,
Acting Director, Office of Government-wide Acquisition Policy, Office 
of Acquisition Policy, Office of Government-wide 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 51 
U.S.C. 20113.

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS


22.1503  [Amended]

0
2. Amend section 22.1503 by removing from paragraph (b)(1) ``Subpart'' 
and adding ``subpart'' in its place.
0
3. Amend section 22.1503 by removing from paragraph (b)(3) ``$77,494'' 
and ``Subpart'', and adding ``$79,507'' and ``subpart'' in its place, 
respectively.
0
4. Amend section 22.1503 by removing from paragraph (b)(4) ``$202,000'' 
and adding ``$204,000'' in its place.

PART 25--FOREIGN ACQUISITION


25.202  [Amended]

0
5. Amend section 25.202 by removing from paragraph (c) ``$7,777,000'' 
and ``Subpart'', and adding ``$7,864,000'' and ``subpart'' in its 
place, respectively.
0
6. 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................................................           $204,000           $204,000         $7,864,000
FTAs:
    Australia FTA......................................             79,507             79,507          7,864,000
    Bahrain FTA........................................            204,000            204,000         10,335,931
    CAFTA-DR (Costa Rica, Dominican Republic, El                    79,507             79,507          7,864,000
     Salvador, Guatemala, Honduras, and Nicaragua).....
    Chile FTA..........................................             79,507             79,507          7,864,000
    Colombia FTA.......................................             79,507             79,507          7,864,000
    Korea FTA..........................................            100,000            100,000          7,864,000
    Morocco FTA........................................            204,000            204,000          7,864,000
NAFTA:
    --Canada...........................................             25,000             79,507         10,335,931
    --Mexico...........................................             79,507             79,507         10,335,931
    Oman FTA...........................................            204,000            204,000         10,335,931
    Panama FTA.........................................            204,000            204,000          7,864,000
    Peru FTA...........................................            204,000            204,000          7,864,000
    Singapore FTA......................................             79,507             79,507          7,864,000
Israeli Trade Act......................................             50,000  .................  .................
----------------------------------------------------------------------------------------------------------------

25.603  [Amended]

0
7. Amend section 25.603 by removing from paragraph (c)(1) 
``$7,777,000'' and adding ``$7,864,000'' in its place.


25.1101  [Amended]

0
8. Amend section 25.1101 by--
0
a. Removing from paragraph (b)(1)(i)(A) ``$202,000'' and adding 
``$204,000'' in its place;
0
b. Removing from paragraph (b)(1)(iii) ``$77,494'' and adding 
``$79,507'' in its place;
0
c. Removing from paragraph (b)(1)(iv) ``$77,494'' and adding 
``$79,507'' in its place;
0
d. Removing from paragraph (b)(2)(iii) ``$77,494'' and adding 
``$79,507'' in its place;
0
e. Removing from paragraph (b)(2)(iv) ``$77,494'' and adding 
``$79,507'' in its place;
0
f. Removing from paragraph (c)(1) ``$202,000'' and ``Subpart'', and 
adding

[[Page 80381]]

``$204,000'' and ``subpart'' in its place, respectively; and
0
g. Removing from paragraph (d) ``$202,000'' and adding ``$204,000'' in 
its place.


25.1102  [Amended]

0
9. Amend section 25.1102 by--
0
a. Removing from the introductory text of paragraph (a) ``$7,777,000'' 
and adding ``$7,864,000'' in its place;
0
b. Removing from the introductory text of paragraph (c) ``$7,777,000'' 
and adding ``$7,864,000'' in its place;
0
c. Removing from paragraph (c)(3) ``$7,777,000'' and ``$10,074,262'', 
and adding ``$7,864,000'' and ``$10,335,931'' in its place, 
respectively; and
0
d. Removing from paragraph (d)(3) ``$7,777,000'' and ``$10,074,262'', 
and adding ``$7,864,000'' and ``$10,335,931'' in its place, 
respectively.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
10. Amend section 52.204-8 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (c)(1)(xvii)(C) ``$77,494'' and adding 
``$79,507 in its place; and
0
c. Removing from (c)(1)(xvii)(D) ``$77,494'' and adding ``$79,507'' in 
its place.
    The revised text reads as follows:


52.204-8  Annual Representations and Certifications.

* * * * *

Annual Representations and Certifications (DEC 2013)

* * * * *

0
11. 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 Items (DEC 2013)

* * * * *
    (b) * * *
    --(27) 52.222-19, Child Labor--Cooperation with Authorities and 
Remedies (DEC 2013) ERT Abbreviated Month and Year of Publication in 
the Federal Register]) (E.O. 13126).
* * * * *

0
12. Amend section 52.213-4 by revising the date of the clause and 
paragraph (b)(1)(ii) 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) (DEC 2013)

* * * * *
    (b) * * *
    (1) * * *
    (ii) 52.222-19, Child Labor--Cooperation with Authorities and 
Remedies (DEC 2013) (E.O. 13126). (Applies to contracts for supplies 
exceeding the micro-purchase threshold.)
* * * * *

0
13. Amend section 52.222-19 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (a)(3) ``$77,494'' and adding ``$79,507'' in 
its place; and
0
c. Removing from paragraph (a)(4) ``$202,000'' and adding ``$204,000'' 
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 (DEC 2013)

* * * * *
[FR Doc. 2013-31151 Filed 12-30-13; 8:45 am]
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