[Federal Register Volume 80, Number 251 (Thursday, December 31, 2015)]
[Rules and Regulations]
[Pages 81894-81896]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32430]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 22, 25, and 52

[FAC 2005-86; FAR Case 2016-001; Item No. IV; Docket No. 2016-0001, 
Sequence No. 1]
RIN 9000-AN16


Federal Acquisition Regulation; Trade Agreements Thresholds

AGENCY: 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 (WTO) Government 
Procurement Agreement (GPA) and the Free Trade Agreements (FTAs), as 
determined by the United States Trade Representative.

DATES:  Effective: January 1, 2016.

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 Division at 202-501-4755. Please cite FAC 2005-86, FAR case 
2016-001.

SUPPLEMENTARY INFORMATION:

I. Background

    Approximately 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, 2016. The United States 
Trade Representative published new procurement thresholds in the 
Federal Register at 80 FR 77694, on December 15, 2015. The United 
States Trade Representative has specified the following new thresholds:

----------------------------------------------------------------------------------------------------------------
                                        Supply contract (equal  Service contract (equal   Construction contract
           Trade agreement                 to or exceeding)         to or exceeding)     (equal to or exceeding)
----------------------------------------------------------------------------------------------------------------
WTO GPA..............................                 $191,000                 $191,000               $7,358,000
FTAs:
    Australia FTA....................                   77,533                   77,533                7,358,000
    Bahrain FTA......................                  191,000                  191,000               10,079,365
    CAFTA-DR (Costa Rica, Dominican                     77,533                   77,533                7,358,000
     Republic, El Salvador,
     Guatemala, Honduras, and
     Nicaragua)......................
    Chile FTA........................                   77,533                   77,533                7,358,000
    Colombia FTA.....................                   77,533                   77,533                7,358,000
    Korea FTA........................                  100,000                  100,000                7,358,000
    Morocco FTA......................                  191,000                  191,000                7,358,000
NAFTA:
    --Canada.........................                   25,000                   77,533               10,079,365
    --Mexico.........................                   77,533                   77,533               10,079,365
    Oman FTA.........................                  191,000                  191,000               10,079,365
    Panama FTA.......................                  191,000                  191,000                7,358,000
    Peru FTA.........................                  191,000                  191,000                7,358,000
    Singapore FTA....................                   77,533                   77,533                7,358,000
Israeli Trade Act....................                   50,000  .......................  .......................
----------------------------------------------------------------------------------------------------------------


[[Page 81895]]

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., FAR sections 22.1503, 25.202, 25.603, 
25.1101, and 25.1102).
    In addition, changes are required to FAR sections 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 FAR sections 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, applies to 
the publication of the FAR. 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 
formulae to adjust for changes in economic conditions, thus maintaining 
the status quo, without significant effect beyond the internal 
operating procedures of the Government.

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 FAR sections 52.225-4, OMB Control No. 9000-0130, titled: Buy 
American Act--Free Trade Agreement-Israeli Trade Certificate; 52.225-6, 
OMB Control No. 9000-0025, titled: Trade Agreements Certificate; and 
the clauses at FAR 52.225-9, 52.225-11, 52.225-21, and 52.225-23, OMB 
Control No. 9000-0141, titled: Buy American--Construction. 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 17, 2015.
William Clark,
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 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)(3) ``$79,507'' 
and adding ``$77,533'' in its place and removing from paragraph (b)(4) 
``$204,000'' and adding ``$191,000'' in its place.

PART 25--FOREIGN ACQUISITION


25.202   [Amended]

0
3. Amend section 25.202 by removing from paragraph (c) ``$7,864,000'' 
and adding ``$7,358,000'' in its place.
0
4. Amend section 25.402 by removing from paragraph (a)(1) ``the USTR'' 
and adding ``the U.S. Trade Representative'' in its place and revising 
the table in paragraph (b) to read as follows:


25.402   General.

* * * * *
    (b) * * *

----------------------------------------------------------------------------------------------------------------
                                        Supply contract (equal  Service contract (equal   Construction contract
           Trade agreement                 to or exceeding)         to or exceeding)     (equal to or exceeding)
----------------------------------------------------------------------------------------------------------------
WTO GPA..............................                 $191,000                 $191,000               $7,358,000
FTAs:
    Australia FTA....................                   77,533                   77,533                7,358,000
    Bahrain FTA......................                  191,000                  191,000               10,079,365
    CAFTA-DR (Costa Rica, Dominican                     77,533                   77,533                7,358,000
     Republic, El Salvador,
     Guatemala, Honduras, and
     Nicaragua)......................
    Chile FTA........................                   77,533                   77,533                7,358,000
    Colombia FTA.....................                   77,533                   77,533                7,358,000
    Korea FTA........................                  100,000                  100,000                7,358,000
    Morocco FTA......................                  191,000                  191,000                7,358,000
NAFTA:
    --Canada.........................                   25,000                   77,533               10,079,365
    --Mexico.........................                   77,533                   77,533               10,079,365
    Oman FTA.........................                  191,000                  191,000               10,079,365
    Panama FTA.......................                  191,000                  191,000                7,358,000
    Peru FTA.........................                  191,000                  191,000                7,358,000
    Singapore FTA....................                   77,533                   77,533                7,358,000

[[Page 81896]]

 
Israeli Trade Act....................                   50,000  .......................  .......................
----------------------------------------------------------------------------------------------------------------

25.603   [Amended]

0
5. Amend section 25.603 by removing from paragraph (c)(1) 
``$7,864,000'' and adding ``$7,358,000'' in its place.


25.1101   [Amended]

0
6. Amend section 25.1101 by--
0
a. Removing from paragraph (b)(1)(i)(A) ``$204,000'' and adding 
``$191,000'' in its place;
0
b. Removing from paragraphs (b)(1)(iii), (b)(1)(iv), (b)(2)(iii), and 
(b)(2)(iv) ``$79,507'' and adding ``$77,533'' in their places;
0
c. Removing from paragraph (c)(1) ``$204,000'' and adding ``$191,000'' 
in its place; and
0
d. Removing from paragraph (d) ``statute'' and ``$204,000'' and adding 
``Statute'' and ``$191,000'' in their places, respectively.


25.1102   [Amended]

0
7. Amend section 25.1102 by--
0
a. Removing from the introductory texts of paragraphs (a) and (c) 
``$7,864,000'' and adding ``$7,358,000'' in their place; and
0
b. Removing from paragraphs (c)(3) and (d)(3) ``$7,864,000'' and 
``$10,335,931'' and adding ``$7,358,000'' and ``$10,079,365'' in their 
places, respectively.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
8. Revise section 52.204-8 by--
0
a. Revising the date of the provision;
0
b. Removing from paragraphs (c)(1)(xvii)(C) and (D) ``$79,507'' and 
adding ``$77,533'' in their places; and
0
c. Removing from the introductory text of paragraph (c)(2) 
``certifications'' and adding ``representations or certifications'' in 
its place.
    The revision reads as follows:


52.204-8   Annual Representations and Certifications.

* * * * *

Annual Representations and Certifications (JAN 2016)

* * * * *

0
9. Amend section 52.212-5 by revising the date of the clause and 
paragraph (b)(26) and removing from paragraph (e)(2) ``contractor'' and 
adding ``Contractor'' in its place 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 (JAN 2016)

* * * * *
    (b) * * *
    __(26) 52.222-19, Child Labor--Cooperation with Authorities and 
Remedies (JAN 2016) (E.O. 13126).
* * * * *


0
10. 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 Acquisition (Other Than Commercial 
Items) (JAN 2016)

* * * * *
    (b) * * *
    (1) * * *
    (ii) 52.222-19, Child Labor--Cooperation with Authorities and 
Remedies (JAN 2016) (E.O. 13126). (Applies to contracts for supplies 
exceeding the micro-purchase threshold.)
* * * * *


0
11. Amend section 52.222-19 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (a)(3) ``$79,507'' and adding ``$77,533'' in 
its place; and
0
c. Removing from paragraph (a)(4) ``$204,000'' and adding ``$191,000'' 
in its place.
    The revision reads as follows:


52.222-19   Child Labor--Cooperation with Authorities and Remedies.

* * * * *

Child Labor--Cooperation with Authorities and Remedies (JAN 2016)

* * * * *
[FR Doc. 2015-32430 Filed 12-30-15; 8:45 am]
 BILLING CODE 6820-EP-P