[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]]



------------------------------------------------------------------------
                                              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
------------------------------------------------------------------------

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:

0
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]

0
2. Amend section 225.1101 by--
0
a. In paragraph (6) introductory text, removing ``$180,000'' and adding 
``$182,000'' in its place;
0
b. In paragraph (10)(i) introductory text, removing ``$180,000'' and 
adding ``$182,000'' in its place;
0
c. In paragraph (10)(i)(A), removing ``$180,000'' and adding 
``$182,000'' in its place;
0
d. In paragraph (10)(i)(B), removing ``$80,317'' and adding ``$83,099'' 
in its place;

[[Page 72247]]

0
e. In paragraph (10)(i)(C), removing ``$180,000'' and adding 
``$182,000'' in its place; and
0
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]

0
3. Amend section 225.7017-3, in paragraph (b), by removing ``$180,000'' 
and adding ``$182,000'' in its place.


225.7503  [Amended]

0
4. Amend section 225.7503 by--
0
a. In paragraphs (a) and (b) introductory text, removing ``$6,932,000'' 
and adding ``$7,008,000'' in both places;
0
b. In paragraph (b)(1), removing ``$10,441,216'' and adding 
``$10,802,884'' in its place;
0
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;
0
d. In paragraph (b)(3), removing ``$10,441,216'' and adding 
``$10,802,884'' in its place; and
0
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]

0
5. Amend section 252.225-7017 by--
0
a. Removing clause date ``(AUG 2019)'' and adding ``(JAN 2020)'' in its 
place;
0
b. In paragraphs (c)(2) and (3), removing ``$80,317'' and adding 
``$83,099'' in its place; and
0
c. In paragraphs (c)(4) and (5), removing ``$180,000'' and adding 
``$182,000'' in its place.


252.225-7018  [Amended]

0
6. Amend section 252.225-7018 by--
0
a. Removing clause date ``(DEC 2018)'' and adding ``(JAN 2020)'' in its 
place;
0
b. In paragraph (b)(1) introductory text, removing ``$180,000'' and 
adding ``$182,000'' in its place;
0
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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