[Federal Register Volume 84, Number 250 (Tuesday, December 31, 2019)]
[Rules and Regulations]
[Pages 72245-72247]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27828]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 225 and 252
[Docket DARS-2019-0069]
RIN 0750-AK75
Defense Federal Acquisition Regulation Supplement: Trade
Agreements Thresholds (DFARS Case 2019-D035)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
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SUMMARY: DoD is issuing a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) 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 January 1, 2020.
FOR FURTHER INFORMATION CONTACT: Ms. Kimberly Bass, 571-372-6174.
SUPPLEMENTARY INFORMATION:
I. Background
This rule adjusts thresholds for application of the World Trade
Organization (WTO) Government Procurement Agreement (GPA) and Free
Trade Agreements (FTA) as determined by the United States Trade
Representative (USTR). The trade agreements thresholds are adjusted
every two years according to predetermined formulae set forth in the
agreements. The USTR has specified the following new thresholds (84 FR
70615, December 23, 2019):
[[Page 72246]]
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Supply Construction
contract contract
Trade agreement (equal to or (equal to or
exceeding) exceeding)
------------------------------------------------------------------------
WTO GPA................................. $182,000 $7,008,000
FTAs:
Australia FTA....................... 83,099 7,008,000
Bahrain FTA......................... 182,000 10,802,884
CAFTA-DR (Costa Rica, Dominican 83,099 7,088,000
Republic, El Salvador, Guatemala,
Honduras, and Nicaragua)...........
Chile FTA........................... 83,099 7,088,000
Columbia............................ 83,099 7,088,000
Korea............................... 100,000 7,008,000
Morocco FTA......................... 182,000 7,008,000
NAFTA:
--Canada............................ 83,099 10,802,884
--Mexico............................ 83,099 10,802,884
Panama FTA.......................... 182,000 7,008,000
Peru FTA............................ 182,000 7,008,000
Singapore FTA....................... 83,099 7,008,000
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II. Publication of This Final Rule for Public Comment Is Not Required
by Statute
The statute that applies to the publication of the Federal
Acquisition Regulation (FAR) is 41 U.S.C. 1707 entitled ``Publication
of Proposed Regulations.'' 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 does not constitute a significant DFARS revision within the
meaning of FAR 1.501-1 and does not have a significant cost or
administrative impact on contractors or offerors. This final rule only
adjusts the trade agreements 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.
III. 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 DFARS to revise thresholds for application of
the WTO GPA and the FTA. 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.
IV. Executive Orders 12866 and 13563
Executive Order (E.O.) 12866, Regulatory Planning and Review, and
E.O. 13563, Improving Regulation and Regulatory Review, 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. The Office of Management and Budget (OMB), Office of
Information and Regulatory Affairs, has determined that this is not a
significant regulatory action as defined under section 3(f) of E.O.
12866 and, therefore, was not subject to review under section 6(b).
This rule is not a major rule as defined at 5 U.S.C. 804(2).
V. Executive Order 13771
This rule is not subject to E.O. 13771, because this rule is not a
significant regulatory action under E.O. 12866.
VI. 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.
VII. 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 provision
at DFARS 252.225-7035, Buy American--Free Trade Agreements-Balance of
Payments Program Certificate, and the certification and information
collection requirements in the provision at DFARS 252.225-7018,
Photovoltaic Devices--Certificate. The changes to these DFARS clauses
do not impose additional information collection requirements to the
paperwork burden previously approved under OMB Control Number 0704-
0229, entitled ``DFARS Part 225, Foreign Acquisition and related
clauses,'' because the threshold changes are in line with inflation and
maintain the status quo.
List of Subjects in 48 CFR Parts 225 and 252
Government procurement.
Jennifer Lee Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 225 and 252 are amended as follows:
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1. The authority citation for 48 CFR parts 225 and 252 continues to
read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 225--FOREIGN ACQUISITION
225.1101 [Amended]
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2. Amend section 225.1101 by--
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a. In paragraph (6) introductory text, removing ``$180,000'' and adding
``$182,000'' in its place;
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b. In paragraph (10)(i) introductory text, removing ``$180,000'' and
adding ``$182,000'' in its place;
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c. In paragraph (10)(i)(A), removing ``$180,000'' and adding
``$182,000'' in its place;
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d. In paragraph (10)(i)(B), removing ``$80,317'' and adding ``$83,099''
in its place;
[[Page 72247]]
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e. In paragraph (10)(i)(C), removing ``$180,000'' and adding
``$182,000'' in its place; and
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f. In paragraphs (10)(i)(D) through (F), removing ``$80,317'' wherever
it appears and adding ``$83,099'' in its place.
225.7017-3 [Amended]
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3. Amend section 225.7017-3, in paragraph (b), by removing ``$180,000''
and adding ``$182,000'' in its place.
225.7503 [Amended]
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4. Amend section 225.7503 by--
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a. In paragraphs (a) and (b) introductory text, removing ``$6,932,000''
and adding ``$7,008,000'' in both places;
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b. In paragraph (b)(1), removing ``$10,441,216'' and adding
``$10,802,884'' in its place;
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c. In paragraph (b)(2), removing ``$6,932,000'' and adding
``$7,008,000'' in its place, and removing ``$10,441,216'' and adding
``$10,802,884'' in its place;
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d. In paragraph (b)(3), removing ``$10,441,216'' and adding
``$10,802,884'' in its place; and
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e. In paragraph (b)(4), removing ``$6,932,000'' and adding
``$7,008,000'' in its place, and removing ``$10,441,216'' and adding
``$10,802,884'' in its place.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
252.225-7017 [Amended]
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5. Amend section 252.225-7017 by--
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a. Removing clause date ``(AUG 2019)'' and adding ``(JAN 2020)'' in its
place;
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b. In paragraphs (c)(2) and (3), removing ``$80,317'' and adding
``$83,099'' in its place; and
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c. In paragraphs (c)(4) and (5), removing ``$180,000'' and adding
``$182,000'' in its place.
252.225-7018 [Amended]
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6. Amend section 252.225-7018 by--
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a. Removing clause date ``(DEC 2018)'' and adding ``(JAN 2020)'' in its
place;
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b. In paragraph (b)(1) introductory text, removing ``$180,000'' and
adding ``$182,000'' in its place;
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c. In paragraph (b)(2), removing ``$180,000'' and adding ``$182,000''
in its place;
0
d. In paragraphs (d)(3) and (4) introductory text, removing ``$80,317''
and adding ``$83,099'' in both places; and
0
e. In paragraphs (d)(5) and (6) introductory text, removing
``$180,000'' and adding ``$182,000'' in both places.
[FR Doc. 2019-27828 Filed 12-30-19; 8:45 am]
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