[Federal Register Volume 87, Number 53 (Friday, March 18, 2022)]
[Rules and Regulations]
[Pages 15815-15816]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-05534]



[[Page 15815]]

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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 225 and 252

[Docket DARS-2022-0006]
RIN 0750-AL63


Defense Federal Acquisition Regulation Supplement: New Qualifying 
County--Lithuania (DFARS Case 2022-D012)

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 add Lithuania as a 
qualifying country.

DATES: Effective March 18, 2022.

FOR FURTHER INFORMATION CONTACT: Monica Wideman, telephone 571-372-
6174.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD is amending the DFARS to add Lithuania as a qualifying country. 
A qualifying country is a country that has a reciprocal defense 
procurement agreement or memorandum of understanding with the United 
States in which both countries agree to remove discriminatory barriers 
to purchases of supplies produced in the other country or services 
performed by sources of the other country. The agreement or memorandum 
must comply, where applicable, with the requirements of section 36 of 
the Arms Export Control Act (22 U.S.C. 2776), which addresses reports 
and certifications to Congress on military exports, and with 10 U.S.C. 
2457, which addresses standardization of equipment with North Atlantic 
Treaty Organization members. For purposes of the Buy American Act 
(DFARS 225.1) and the Balance of Payments Program (DFARS 225.75), 
supplies and components produced in qualifying countries are treated 
the same as supplies and components produced in the United States.
    On December 13, 2021, the Secretary of Defense and the Ministry of 
National Defense of the Republic of Lithuania signed a Reciprocal 
Defense Procurement Agreement. The Secretary of Defense also signed, on 
that day, a determination and findings that it is inconsistent with the 
public interest to apply the restrictions of the Buy American Act to 
the acquisition of articles, materials, and supplies produced or 
manufactured in the Republic of Lithuania. The Reciprocal Defense 
Procurement Agreement removes discriminatory barriers to procurements 
of supplies and services produced by industrial enterprises of 
Lithuania to the extent mutually beneficial and consistent with 
national laws, regulations, policies, and international obligations. 
This agreement does not cover construction or construction material. 
Lithuania is already a designated country under the World Trade 
Organization Government Procurement Agreement.

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, Publication of Proposed 
Regulations. 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 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. Lithuania is added to 
the list of 27 other countries that have similar reciprocal defense 
procurement agreements with DoD. These requirements affect only the 
internal operating procedures of the Government.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold (SAT), for Commercial Products Including Commercially 
Available Off-the-Shelf (COTS) Items, and for Commercial Services

    This rule only updates the list of qualifying countries in the 
DFARS by adding the newly qualifying country of Lithuania. The 
definition of ``qualifying country'' is updated in each of the 
following clauses: DFARS 252.225-7001, Buy American and Balance of 
Payments Program; DFARS 252.225-7002, Qualifying Country Sources as 
Subcontractors; DFARS 252.225-7012, Preference for Certain Domestic 
Commodities; DFARS 252.225-7017, Photovoltaic Devices; DFARS 252.225-
7021, Trade Agreements; and DFARS 252.225-7036, Buy American-Free Trade 
Agreements-Balance of Payments Program. However, this rule does not 
change the clause prescriptions or applicability to contracts at or 
below the SAT, for commercial products including COTS items, or for 
commercial services.

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 interim or 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) applies to this 
rule. However, these changes to the DFARS do not impose additional 
information collection requirements to the paperwork burden previously 
approved under Office of Management and Budget (OMB) Control Number 
0704-0229, entitled ``DFARS Part 225, Foreign Acquisition.''

[[Page 15816]]

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


225.003  [Amended]

0
2. Amend section 225.003 in the definition of ``Qualifying country'' by 
adding, in alphabetical order, the country of ``Lithuania''.


225.872-1  [Amended]

0
3. Amend section 225.872-1 in paragraph (a) by adding, in alphabetical 
order, the country of ``Lithuania''.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
4. Amend section 252.225-7001 by--
0
a. In the clause heading, removing the date ``(DEC 2017)'' and adding 
``(MAR 2022)'' in its place;
0
b. In the paragraph (a), in the definition of ``Qualifying country'', 
adding, in alphabetical order, the country of ``Lithuania''; and
0
c. In Alternate I--
0
i. In the clause heading, removing the date ``(DEC 2017)'' and adding 
``(MAR 2022)'' in its place; and
0
ii. In the paragraph (a), in the definition of ``Qualifying country'', 
adding, in alphabetical order, the country of ``Lithuania''.

0
5. Amend section 225.225-7002 by--
0
a. Revising the section heading and date of the clause; and
0
b. In the paragraph (a), in the definition of ``Qualifying country'', 
adding, in alphabetical order, the country of ``Lithuania''.
    The revisions read as follows:


252.225-7002  Qualifying Country Sources as Subcontractors.

* * * * *
    Qualifying Country Sources as Subcontractors (MAR 2022)
* * * * *

0
6. Amend section 252.225-7012 by--
0
a. Revising the section heading and date of the clause; and
0
b. In the paragraph (a), in the definition of ``Qualifying country'', 
adding, in alphabetical order, the country of ``Lithuania''.
    The revisions read as follows:


252.225-7012  Preference for Certain Domestic Commodities.

* * * * *
    Preference for Certain Domestic Commodities (MAR 2022)
* * * * *


252.225-7017   [Amended]

0
7. Amend section 252.225-7017 by--
0
a. In the clause heading, removing the date ``(JAN 2022)'' and adding 
``(MAR 2022)'' in its place; and
0
b. In the paragraph (a), in the definition of ``Qualifying country'', 
adding, in alphabetical order, the country of ``Lithuania''.


252.225-7021  [Amended]

0
8. Amend section 252.225-7021 by--
0
a. In the clause heading, removing ``(SEP 2019)'' and adding ``(MAR 
2022)'' in its place;
0
b. In the paragraph (a), in the definition of ``Qualifying country'', 
adding, in alphabetical order, the country of ``Lithuania''; and
0
c. In Alternate II--
0
i. In the clause heading, removing the date of ``(SEP 2019)'' and 
adding ``(MAR 2022)'' in its place; and
0
ii. In the paragraph (a), in the definition of ``Qualifying country'', 
adding, in alphabetical order, the country of ``Lithuania''.


252.225-7036   [Amended]

0
9. Amend section 252.225-7036 by--
0
a. In the clause heading, removing the date ``(DEC 2017)'' and adding 
``(MAR 2022)'' in its place;
0
b. In the paragraph (a), in the definition of ``Qualifying country'', 
adding, in alphabetical order, the country of ``Lithuania'';
0
c. In Alternate I--
0
i. In the clause heading, removing the clause date of ``(DEC 2017)'' 
and adding ``(MAR 2022)'' in its place; and
0
ii. In the paragraph (a), in the definition of ``Qualifying country'', 
adding, in alphabetical order, the country of ``Lithuania'';
0
d. In Alternate II--
0
i. In the clause heading, removing the clause date of ``(DEC 2017)'' 
and adding ``(MAR 2022)'' in its place; and
0
ii. In the paragraph (a), in the definition of ``Qualifying country'', 
adding, in alphabetical order, the country of ``Lithuania'';
0
e. In Alternate III--
0
i. In the clause heading, removing the clause date of ``(DEC 2017)'' 
and adding ``(MAR 2022)'' in its place; and
0
ii. In the paragraph (a), in the definition of ``Qualifying country'', 
adding, in alphabetical order, the country of ``Lithuania'';
0
f. In Alternate IV--
0
i. In the clause heading, removing the clause date of ``(DEC 2017)'' 
and adding ``(MAR 2022)'' in its place; and
0
ii. In the paragraph (a), in the definition of ``Qualifying country'', 
adding, in alphabetical order, the country of ``Lithuania''; and
0
g. In Alternate V--
0
i. In the clause heading, removing the clause date of ``(DEC 2017)'' 
and adding ``(MAR 2022)'' in its place; and
0
ii. In the paragraph (a), in the definition of ``Qualifying country'', 
adding, in alphabetical order, the country of ``Lithuania''.

[FR Doc. 2022-05534 Filed 3-17-22; 8:45 am]
BILLING CODE 5001-06-P