[Federal Register Volume 83, Number 16 (Wednesday, January 24, 2018)]
[Rules and Regulations]
[Pages 3396-3398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-01199]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 22, 25, and 52

[FAC 2005-97; FAR Case 2018-001; Docket No. 2018-0004; Sequence No. 1]
RIN 9000-AN60


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 Government Procurement 
Agreement and the Free Trade Agreements, as determined by the United 
States Trade Representative.

DATES: Effective Date: January 24, 2018.

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 2005-97, FAR Case 
2018-001.

SUPPLEMENTARY INFORMATION:

I. Background

    Approximately every two years, the thresholds for the World Trade 
Organization Government Procurement Agreement (WTO GPA) and the free 
trade agreements (FTAs) are adjusted according to predetermined 
formulae under the agreements. On December 11, 2017 (82 FR 58248), the 
United States Trade Representative published new procurement 
thresholds. These thresholds became effective on January 1, 2018. The 
United States Trade Representative has specified the following new 
thresholds:

----------------------------------------------------------------------------------------------------------------
                                                                      Supply          Service      Construction
                                                                     contract        contract        contract
                         Trade agreement                           (equal to or    (equal to or    (equal to or
                                                                    exceeding)      exceeding)      exceeding)
----------------------------------------------------------------------------------------------------------------
WTO GPA.........................................................        $180,000        $180,000      $6,932,000
FTAs:
    Australia FTA...............................................          80,317          80,317       6,932,000
    Bahrain FTA.................................................         180,000         180,000      10,441,216

[[Page 3397]]

 
    CAFTA-DR (Costa Rica, Dominican Republic, El Salvador,                80,317          80,317       6,932,000
     Guatemala, Honduras, and Nicaragua)........................
    Chile FTA...................................................          80,317          80,317       6,932,000
    Colombia FTA................................................          80,317          80,317       6,932,000
    Korea FTA...................................................         100,000         100,000       6,932,000
    Morocco FTA.................................................         180,000         180,000       6,932,000
    NAFTA:
        --Canada................................................          25,000          80,317      10,441,216
        --Mexico................................................          80,317          80,317      10,441,216
    Oman FTA....................................................         180,000         180,000      10,441,216
    Panama FTA..................................................         180,000         180,000       6,932,000
    Peru FTA....................................................         180,000         180,000       6,932,000
    Singapore FTA...............................................          80,317          80,317       6,932,000
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 provision at FAR 52.204-8, 
Annual Representations and Certifications, and clause at FAR 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 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 predetermined 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. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This rule amends the FAR to revise thresholds for application of 
the WTO GPA and the FTAs. The revisions do not add any new burdens or 
impact applicability of clauses and provisions at or below the 
simplified acquisition threshold, or to commercial items.

V. 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.

VI. Executive Order 13771

    This rule is not subject to E.O. 13771, Reducing Regulation and 
Controlling Regulatory Costs, because this rule is not a significant 
regulatory action under E.O. 12866.

VII. 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 does not require 
publication for public comment.

VIII. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) does apply to 
this final rule, since the rule affects the prescriptions for use of 
the certification and information collection requirements in the 
provisions at 52.225-4 and 52.225-6 and the clauses at FAR 52.225-9, 
52.225-11, 52.225-21, and 52.225-23, currently approved under OMB 
Control Number 9000-0024, entitled ``Buy American Act, Trade 
Agreements, and Duty-Free Entry.'' The impact, however, is expected to 
be negligible, because the threshold changes are in line with inflation 
and maintain the status quo. As a result, there is no change to the 
estimated burden.

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

    Government procurement.

    Dated: January 18, 2018.
William F. Clark,
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--
0
a. Removing from paragraph (b)(3) ``$77,533'' and adding ``$80,317'' in 
its place; and

[[Page 3398]]

0
b. Removing from paragraph (b)(4) ``$191,000'' and adding ``$180,000'' 
in its place.

PART 25--FOREIGN ACQUISITION


25.202   [Amended]

0
3. Amend section 25.202 by removing from paragraph (c) ``$7,358,000'' 
and adding ``$6,932,000'' 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          Service      Construction
                                                                     contract        contract        contract
                         Trade agreement                           (equal to or    (equal to or    (equal to or
                                                                    exceeding)      exceeding)      exceeding)
----------------------------------------------------------------------------------------------------------------
WTO GPA.........................................................        $180,000        $180,000      $6,932,000
FTAs:
    Australia FTA...............................................          80,317          80,317       6,932,000
    Bahrain FTA.................................................         180,000         180,000      10,441,216
    CAFTA-DR (Costa Rica, Dominican Republic, El Salvador,                80,317          80,317       6,932,000
     Guatemala, Honduras, and Nicaragua)........................
    Chile FTA...................................................          80,317          80,317       6,932,000
    Colombia FTA................................................          80,317          80,317       6,932,000
    Korea FTA...................................................         100,000         100,000       6,932,000
    Morocco FTA.................................................         180,000         180,000       6,932,000
    NAFTA:
        --Canada................................................          25,000          80,317      10,441,216
        --Mexico................................................          80,317          80,317      10,441,216
    Oman FTA....................................................         180,000         180,000      10,441,216
    Panama FTA..................................................         180,000         180,000       6,932,000
    Peru FTA....................................................         180,000         180,000       6,932,000
    Singapore FTA...............................................          80,317          80,317       6,932,000
Israeli Trade Act...............................................          50,000  ..............  ..............
----------------------------------------------------------------------------------------------------------------

25.603   [Amended]

0
5. Amend section 25.603 by removing from paragraph (c)(1) 
``$7,358,000'' and adding ``$6,932,000'' in its place.


25.1101   [Amended]

0
6. Amend section 25.1101 by--
0
a. Removing from paragraph (b)(1)(i)(A) ``$191,000;'' and adding 
``$180,000;'' in its place;
0
b. Removing from paragraphs (b)(1)(iii) and (iv) and (b)(2)(iii) and 
(iv) ``$77,533'' and adding ``$80,317'' in its place; and
0
c. Removing from paragraphs (c)(1) and (d) ``$191,000'' and adding 
``$180,000'' in its place.


25.1102   [Amended]

0
7. Amend section 25.1102 by--
0
a. Removing from the introductory text of paragraphs (a) and (c) 
``$7,358,000'' and adding ``$6,932,000'' in its place;
0
b. Removing from paragraph (c)(3) ``$7,358,000'' and ``$10,079,365'' 
and adding ``$6,932,000'' and ``$10,441,216'' in their places, 
respectively; and
0
c. Removing from paragraph (d)(3) ``$7,864,000'' and ``$10,079,365'' 
and adding ``$6,932,000'' and ``$10,441,216'' in their places, 
respectively.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
8. Amend section 52.204-8 by--
0
a. Revising the date of the provision; and
0
b. Removing from paragraphs (c)(1)(xx)(C) and (D) ``$77,533'' and 
adding ``$80,317'' in its place.
    The revision reads as follows:


52.204-8  Annual Representations and Certifications.

* * * * *

Annual Representations and Certifications (Jan 2018)

* * * * *

0
9. Amend section 52.212-5 by revising the date of the clause and 
paragraph (b)(26) 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 2018)

* * * * *
    (b) * * *
    __ (26) 52.222-19, Child Labor--Cooperation with Authorities and 
Remedies (Jan 2018) (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 2018)

* * * * *
    (b) * * *
    (1) * * *
    (ii) 52.222-19, Child Labor--Cooperation with Authorities and 
Remedies (Jan 2018) (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) ``$77,533'' and adding ``$80,317'' in 
its place; and
0
c. Removing from paragraph (a)(4) ``$191,000'' and adding ``$180,000'' 
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 2018)

* * * * *
[FR Doc. 2018-01199 Filed 1-23-18; 8:45 am]
 BILLING CODE 6820-EP-P