[Federal Register Volume 85, Number 248 (Monday, December 28, 2020)]
[Rules and Regulations]
[Pages 84266-84268]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27328]


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DEPARTMENT OF VETERANS AFFAIRS

48 CFR Part 825

RIN 2900-AQ79


VA Acquisition Regulation: Foreign Acquisition

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: The Department of Veterans Affairs (VA) is amending and 
updating its VA Acquisition Regulation (VAAR) in phased increments to 
revise or remove any policy superseded by changes in the Federal 
Acquisition Regulation (FAR), to remove any procedural guidance 
internal to VA into the VA Acquisition Manual (VAAM), and to 
incorporate any new agency specific regulations or policies. These 
changes seek to streamline and align the VAAR with the FAR and remove 
outdated and duplicative requirements and reduce burden on contractors. 
The VAAM incorporates portions of the removed VAAR as well as other 
internal agency acquisition policy. VA will rewrite certain parts of 
the VAAR and VAAM, and as VAAR parts are rewritten, will publish them 
in the Federal Register. In particular, this rulemaking removes VAAR 
coverage concerning Foreign Acquisition.

DATES: This rule is effective on January 27, 2021.

FOR FURTHER INFORMATION CONTACT: Mr. Bogdan Vaga, Senior Procurement 
Analyst, Procurement Policy and Warrant Management Services, 003A2A, 
425 I Street NW, Washington, DC 20001, (202) 894-0686. (This is not a 
toll-free number.)

SUPPLEMENTARY INFORMATION: On June 9, 2020, VA published a proposed 
rule in the Federal Register (85 FR 35238) which announced VA's intent 
to amend regulations for VAAR Case RIN 2900-AQ79--VA Acquisition 
Regulation: Foreign Acquisition. VA provided a 60-day comment period 
for the public to respond to the proposed rule and submit comments. The 
comment period for the proposed rule ended on August 10, 2020 and VA 
received comments from seven respondents. This rule adopts as a final 
rule the proposed rule published in the Federal Register on June 9, 
2020, with the exception of minor formatting edits.

[[Page 84267]]

    As stated previously, VA received comments from seven respondents. 
A summary of the comments and the issues raised are provided as 
follows:
    One commenter expressed support for the Buy American Act and 
concern regarding future procurements from China. VA is fully committed 
to complying with the Buy American Act as set forth in the Federal 
Acquisition Regulation.
    Multiple respondents expressed concern about the Los Angeles 
Metropolitan Transportation Authority awarding a contract to a Chinese 
firm to build railcars for their public transportation system. VA 
appreciates these comments. However, the VA does not have any authority 
with the Los Angeles Metropolitan Transportation Authority and has no 
influence regarding this organization's procurement decisions. As the 
comment does not specifically address issues with the proposed rule, VA 
is making no revisions as a result of these comments.
    Multiple respondents expressed concern that VA was attempting to 
eliminate the requirement to comply with the Buy American Act via the 
removal of Part 825 which results from this rulemaking. VA is fully 
committed to complying with and implementing all Buy American Statutes. 
The updating of the VAAR to remove coverage at 825 does not in any way 
create loopholes to circumvent the FAR or the Buy American Statutes. As 
a Federal agency, VA must comply with all federal regulations, 
statutes, rules, etc.
    Another commenter expressed consternation regarding a school in Los 
Angeles that would be encroaching on VA property if it were to expand 
beyond its existing boundaries. In regard to the concern expressed 
about the expansion of the ``Brentwood school'' and its possible 
encroachment on VA property, this rulemaking has no impact on this 
situation, and this is beyond the purview of this regulation. As the 
comment does not specifically address issues with the proposed rule 
applicable to VA procurements, VA is making no revisions as a result of 
the comment.

Executive Orders 12866, 13563 and 13771

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, when 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, and other advantages; distributive impacts, 
and equity). Executive Order 13563 (Improving Regulation and Regulatory 
Review) emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
The Office of Information and Regulatory Affairs has determined that 
this rule is not a significant regulatory action under Executive Order 
12866.
    VA's impact analysis can be found as a supporting document at 
http://www.regulations.gov, usually within 48 hours after the 
rulemaking document is published. Additionally, a copy of the 
rulemaking and its impact analysis are available on VA's website at 
http://www.va.gov/orpm/, by following the link for ``VA Regulations 
Published From FY 2004 Through Fiscal Year to Date.''
    This rule is not an E.O. 13771 regulatory action because this rule 
is not significant under E.O. 12866.

Paperwork Reduction Act

    This final rule contains no provisions constituting a collection of 
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3521).

Regulatory Flexibility Act

    The Secretary hereby certifies that this final rule will not have a 
significant economic impact on a substantial number of small entities 
as they are defined in the Regulatory Flexibility Act (5 U.S.C. 601-
612). The rule primarily affects the use of authorities that VA 
contracting officers are already authorized by statute to utilize when 
required and in accordance with existing agency regulation, policies 
and procedures. This rule appropriately clarifies and revises the use 
of such authorities and when certain justification and approval 
requirements apply. The authorities were previously codified in the 
VAAR either in this part or in other parts, to include those affecting 
small business programs, and they affected both large and small 
entities alike. With this rule, VA ensures content to supplement the 
FAR for VA's unique service-disabled veteran-owned small business and 
veteran-owned small business program is properly implemented in this 
part.
    The overall impact of the rule is of benefit to small businesses 
owned by Veterans or service-disabled Veterans as the VAAR is being 
updated to remove extraneous procedural information that applies only 
to VA's internal operating processes or procedures. This rule will 
ensure clarity for both the public and VA contracting officers to 
ensure that when such authorities are utilized, they are properly cited 
and, when required, appropriately documented and publicized. This 
rulemaking does not change VA's policy regarding small businesses. VA 
estimates that no cost or economic impact to individual businesses will 
result from this rule update. VA estimates this final rule is not 
expected to result in increased or decreased costs to small business 
entities, and no more than de minimis costs. On this basis, the final 
rule does not have a significant economic impact on a substantial 
number of small entities as they are defined in the Regulatory 
Flexibility Act, 5 U.S.C. 601-612. Therefore, pursuant to 5 U.S.C. 
605(b), the initial and final regulatory flexibility analysis 
requirements of 5 U.S.C. 603 and 604 do not apply.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local, and tribal Governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any one year. This final rule will have no such effect on 
State, local, and tribal Governments or on the private sector.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a major rule, as defined by 5 U.S.C. 804(2).

List of Subjects in 48 CFR Part 825

    Customs duties and inspection, Foreign currencies, Foreign trade, 
Government procurement.

[[Page 84268]]

Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. Brooks D. 
Tucker, Assistant Secretary for Congressional and Legislative Affairs, 
Performing the Delegable Duties of the Chief of Staff, Department of 
Veterans Affairs, approved this document on December 8, 2020, for 
publication.

Luvenia Potts,
Regulation Development Coordinator, Office of Regulation Policy & 
Management, Office of the Secretary, Department of Veterans Affairs.

    Accordingly, under the authority of 40 U.S.C. 121(c), 41 U.S.C. 
1702; and 48 CFR 1.301-1.304, VA amends 48 CFR by removing and 
reserving part 825.

[FR Doc. 2020-27328 Filed 12-23-20; 8:45 am]
BILLING CODE 8320-01-P