[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:

----------------------------------------------------------------------------------------------------------------
                                                          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  .................  .................
----------------------------------------------------------------------------------------------------------------

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)
----------------------------------------------------------------------------------------------------------------
                                                          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
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  .................  .................
----------------------------------------------------------------------------------------------------------------

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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