[Federal Register Volume 86, Number 248 (Thursday, December 30, 2021)]
[Rules and Regulations]
[Pages 74375-74377]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-28161]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 225 and 252

[Docket DARS-2021-0026]
RIN 0750-AL50


Defense Federal Acquisition Regulation Supplement: Trade 
Agreements Thresholds (DFARS Case 2022-D003)

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, 2022.

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

[[Page 74376]]

following new thresholds in the Federal Register (86 FR 67579, November 
26, 2021), which are being implemented in this rule:

------------------------------------------------------------------------
                                              Supply       Construction
                                             contract        contract
             Trade agreement               (equal to or    (equal to or
                                            exceeding)      exceeding)
------------------------------------------------------------------------
WTO GPA.................................        $183,000      $7,032,000
FTA:
    Australia...........................          92,319       7,032,000
    Bahrain.............................         183,000      12,001,460
    CAFTA-DR (Costa Rica, Dominican               92,319       7,032,000
     Republic, El Salvador, Guatemala,
     Honduras, and Nicaragua)...........
    Chile...............................          92,319       7,032,000
    Colombia............................          92,319       7,032,000
    Korea...............................         100,000       7,032,000
    Morocco.............................         183,000       7,032,000
    Panama..............................         183,000       7,032,000
    Peru................................         183,000       7,032,000
    Singapore...........................          92,319       7,032,000
------------------------------------------------------------------------

    Updates for the United States-Mexico-Canada Agreement (USMCA), 
which superseded the North American Free Trade Agreement (NAFTA), are 
not included in this revision to the trade agreements thresholds in the 
DFARS. On January 29, 2020, the President signed into law the United 
States-Mexico-Canada Agreement Implementation Act, through which 
Congress approved the USMCA. On July 1, 2020, the USMCA entered into 
effect. Although Canada is still a designated country under the WTO 
GPA, Canada is no longer a Free Trade Agreement country, because 
chapter 13 of the USMCA (Government procurement) applies only to the 
United States and Mexico. While updates to the DFARS to implement the 
revisions resulting from the USMCA are not implemented in this final 
rule, implementation is being accomplished via separate rulemaking 
under DFARS Case 2020-D032. Changes to the Federal Acquisition 
Regulation (FAR) to implement the USMCA are being accomplished under 
FAR Case 2020-014.

II. Publication of This Final Rule for Public Comment is not Required 
by Statute

    The statute that applies to the publication of the FAR is 41 U.S.C. 
1707. Subsection (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 account 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 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.

V. Congressional Review Act

    As required by the Congressional Review Act (5 U.S.C. 801-808) 
before an interim or final rule takes effect, DoD will submit a copy of 
the final rule with the form, Submission of Federal Rules under the 
Congressional Review Act, to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States. A 
major rule under the Congressional Review Act cannot take effect until 
60 days after it is published in the Federal Register. The Office of 
Information and Regulatory Affairs has determined that this rule is not 
a major rule as defined by 5 U.S.C. 804.

VI. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule, because 
this final rule does not constitute a significant DFARS revision within 
the meaning of FAR 1.501-1, and 41 U.S.C. 1707 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 
provisions 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.

[[Page 74377]]

List of Subjects in 48 CFR Parts 225 and 252

    Government procurement.

Jennifer D. Johnson,
Editor/Publisher, 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 ``$182,000'' and adding 
``$183,000'' in its place;
0
b. In paragraph (10)(i) introductory text, removing ``$182,000'' and 
adding ``$183,000'' in its place;
0
c. In paragraph (10)(i)(A), removing ``$182,000'' and adding 
``$183,000'' in its place;
0
d. In paragraph (10)(i)(B), removing ``$83,099'' and adding ``92,319'' 
in its place;
0
e. In paragraph (10)(i)(C), removing ``$182,000'' and adding 
``$183,000'' in its place; and
0
f. In paragraphs (10)(i)(D) through (F), removing ``$83,099'' and 
adding ``92,319'' in its place.


225.7017-3   [Amended]

0
3. Amend section 225.7017-3 by--
0
a. In paragraph (b), removing ``$182,000'' and adding ``$183,000'' in 
its place; and
0
b. In paragraph (c)(2), by removing ``$180,000'' and adding 
``$183,000'' in its place.


225.7503   [Amended]

0
4. Amend section 225.7503 by--
0
a. In paragraphs (a) introductory text and (b) introductory text, 
removing ``$7,008,000'' and adding ``$7,032,000'' in its place;
0
b. In paragraph (b)(1), removing ``$10,802,884'' and adding 
``$12,001,460'' in its place;
0
c. In paragraph (b)(2), removing ``$7,008,000'' and adding 
``$7,032,000'' in its place, and removing ``$10,802,884'' and adding 
``$12,001,460'' in its place;
0
d. In paragraph (b)(3), removing ``$10,802,884'' and adding 
``$12,001,460'' in its place; and
0
e. In paragraph (b)(4), removing ``$7,008,000'' and adding 
``$7,032,000'' in its place, and removing ``$10,802,884'' and adding 
``$12,001,460'' 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 ``(JAN 2020)'' and adding ``(JAN 2022)'' in its 
place;
0
b. In paragraphs (c)(2) and (3), removing ``$83,099'' and adding 
``92,319'' in its place; and
0
c. In paragraphs (c)(4) and (5), removing ``$182,000'' and adding 
``$183,000'' in its place.


252.225-7018   [Amended]

0
6. Amend section 252.225-7018 by--
0
a. Removing clause date ``(JAN 2020)'' and adding ``(JAN 2022)'' in its 
place;
0
b. In paragraphs (b)(1) and (2), removing ``$182,000'' and adding 
``$183,000'' in its place;
0
c. In paragraphs (d)(3) introductory text and (d)(4) introductory text, 
removing ``$83,099'' and adding ``92,319'' in its place; and
0
d. In paragraphs (d)(5) introductory text and (d)(6) introductory text, 
removing ``$182,000'' and adding ``$183,000'' in each place.

 [FR Doc. 2021-28161 Filed 12-29-21; 8:45 am]
 BILLING CODE 5001-06-P