[Federal Register Volume 85, Number 10 (Wednesday, January 15, 2020)]
[Rules and Regulations]
[Pages 2616-2619]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00025]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 22, 25, and 52
[FAC 2020-04; FAR Case 2019-012; Docket No. FAR-2019-0012; Sequence No.
1]
RIN 9000-AN95
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: January 15, 2020.
FOR FURTHER INFORMATION CONTACT: Ms. Camara Francis, Procurement
Analyst, at (202) 550-0935 or by email at [email protected] for
clarification of content. For information pertaining to status or
publication schedules, contact the Regulatory Secretariat Division at
(202) 501-4755. Please cite FAC 2020-04, FAR case 2019-012.
SUPPLEMENTARY INFORMATION:
I. Background
Approximately every two years, the trade agreements 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. These thresholds become
effective on January 1, 2020. On December 23, 2019 (84 FR 70615), the
United States Trade Representative published new procurement
thresholds. The United States Trade Representative has specified the
following new thresholds:
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Supply contract Service contract Construction
Trade agreement (equal to or (equal to or contract (equal
exceeding) exceeding) to or exceeding)
----------------------------------------------------------------------------------------------------------------
WTO GPA................................................ $182,000 $182,000 $7,008,000
[[Page 2617]]
FTAs:
Australia FTA...................................... 83,099 83,099 7,008,000
Bahrain FTA........................................ 182,000 182,000 10,802,884
CAFTA-DR (Costa Rica, Dominican Republic, El 83,099 83,099 7,008,000
Salvador, Guatemala, Honduras, and Nicaragua).....
Chile FTA.......................................... 83,099 83,099 7,008,000
Colombia FTA....................................... 83,099 83,099 7,008,000
Korea FTA.......................................... 100,000 100,000 7,008,000
Morocco FTA........................................ 182,000 182,000 7,008,000
NAFTA:
--Canada....................................... 25,000 83,099 10,802,884
--Mexico....................................... 83,099 83,099 10,802,884
Oman FTA........................................... 182,000 182,000 10,802,884
Panama FTA......................................... 182,000 182,000 7,008,000
Peru FTA........................................... 182,000 182,000 7,008,000
Singapore FTA...................................... 83,099 83,099 7,008,000
Israeli Trade Act...................................... 50,000 ................. .................
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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 52.204-8,
Annual Representations and Certifications, and the clause at 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 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 make minor revisions in the thresholds
for application of the WTO GPA and the FTAs. The revisions do not add
any new burdens or, except for the thresholds changes themselves,
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
Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule under 41
U.S.C. 1707(a)(1) (see section III of this preamble), the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
are not applicable. Accordingly, no regulatory flexibility analysis is
required and none has been prepared.
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 FAR 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.
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:
[[Page 2618]]
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) ``$80,317'' and adding ``$83,099'' in
its place; and
0
b. Removing from paragraph (b)(4) ``$180,000'' and adding ``$182,000''
in its place.
PART 25--FOREIGN ACQUISITION
25.202 [Amended]
0
3. Amend section 25.202 by removing from paragraph (c) ``$6,932,000''
and adding ``$7,008,000'' in its place.
0
4. Amend section 25.402(b) by adding a heading for the table and
revising the table to read as follows:
25.402 General.
* * * * *
(b) * * *
Table 1 to Paragraph (b)
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Supply contract Service contract Construction
Trade agreement (equal to or (equal to or contract (equal
exceeding) exceeding) to or exceeding)
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WTO GPA................................................ $182,000 $182,000 $7,008,000
FTAs:
Australia FTA...................................... 83,099 83,099 7,008,000
Bahrain FTA........................................ 182,000 182,000 10,802,884
CAFTA-DR (Costa Rica, Dominican Republic, El 83,099 83,099 7,008,000
Salvador, Guatemala, Honduras, and Nicaragua).....
Chile FTA.......................................... 83,099 83,099 7,008,000
Colombia FTA....................................... 83,099 83,099 7,008,000
Korea FTA.......................................... 100,000 100,000 7,008,000
Morocco FTA........................................ 182,000 182,000 7,008,000
NAFTA:
--Canada....................................... 25,000 83,099 10,802,884
--Mexico....................................... 83,099 83,099 10,802,884
Oman FTA........................................... 182,000 182,000 10,802,884
Panama FTA......................................... 182,000 182,000 7,008,000
Peru FTA........................................... 182,000 182,000 7,008,000
Singapore FTA...................................... 83,099 83,099 7,008,000
Israeli Trade Act...................................... 50,000 ................. .................
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25.603 [Amended]
0
5. Amend section 25.603 by removing from paragraph (c)(1)
``$6,932,000'' and adding ``$7,008,000'' in its place.
25.1101 [Amended]
0
6. Amend section 25.1101 by--
0
a. Removing from paragraph (b)(1)(i)(A) ``$180,000'' and adding
``$182,000'' in its place;
0
b. Removing from paragraphs (b)(1)(iii) and (iv) and (b)(2)(iii) and
(iv) ``$80,317'' and adding ``$83,099'' in its place; and
0
c. Removing from paragraphs (c)(1) and (d) ``$180,000'' and adding
``$182,000'' 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)
introductory text ``$6,932,000'' and adding ``$7,008,000'' in its
place;
0
b. Removing from paragraph (c)(3) ``$6,932,000'' and ``$10,441,216''
and adding ``$7,008,000'' and ``$10,802,884'' in their places,
respectively; and
0
c. Removing from paragraph (d)(3) ``$6,932,000'' and ``$10,441,216''
and adding ``$7,008,000'' and ``$10,802,884'' 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)(xxi)(C) and (D) ``$80,317'' and
adding ``$83,099'' in its place.
The revision reads as follows:
52.204-8 Annual Representations and Certifications.
* * * * *
Annual Representations and Certifications (JAN 2020)
* * * * *
0
9. Amend section 52.212-5 by revising the date of the clause and
removing from paragraph (b)(26) ``(OCT 2019)'' and adding ``(JAN
2020)'' 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 2020)
* * * * *
0
10. Amend section 52.213-4 by revising the date of the clause and
removing from paragraph (b)(1)(ii) ``(OCT 2019)'' and adding ``(JAN
2020)'' in its place 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 2020)
* * * * *
0
11. Amend section 52.222-19 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (a)(3) ``$80,317'' and adding ``$83,099'' in
its place; and
0
c. Removing from paragraph (a)(4) ``$180,000'' and adding ``$182,000''
in its place.
The revision reads as follows:
[[Page 2619]]
52.222-19 Child Labor--Cooperation with Authorities and Remedies.
* * * * *
Child Labor--Cooperation With Authorities and Remedies (JAN 2020)
* * * * *
[FR Doc. 2020-00025 Filed 1-14-20; 8:45 am]
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