80 FR 250 pgs. 81470-81471 - Defense Federal Acquisition Regulation Supplement: Trade Agreements Thresholds (DFARS Case 2016-D003)
Type: RULEVolume: 80Number: 250Pages: 81470 - 81471
Pages: 81470, 81471Docket number: [Docket DARS-2015-0066]
FR document: [FR Doc. 2015-32875 Filed 12-29-15; 8:45 am]
Agency: Defense Department
Sub Agency: Defense Acquisition Regulations System
Official PDF Version: PDF Version
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 225 and 252
[Docket DARS-2015-0066]
RIN 0750-AI79
Defense Federal Acquisition Regulation Supplement: Trade Agreements Thresholds (DFARS Case 2016-D003)
AGENCY:
Defense Acquisition Regulations System, Department of Defense (DoD).
ACTION:
Final rule.
SUMMARY:
DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to incorporate increased 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, 2016.
FOR FURTHER INFORMATION CONTACT:
Ms. Amy G. Williams, telephone 571-372-6106.
SUPPLEMENTARY INFORMATION:
I. Background
Every two years, the trade agreements thresholds are escalated according to a predetermined formula set forth in the agreements. The United States Trade Representative has specified the following new thresholds in the Federal Register (80 FR 77694, December 15, 2015):
| Trade agreement | Supply contract (equal to or exceeding) | Construction contract (equal to or exceeding) |
|---|---|---|
| WTO GPA | 191,000 | 7,358,000 |
| FTAs: | ||
| Australia FTA | 77,533 | 7,358,000 |
| Bahrain FTA | 191,000 | 10,079,365 |
| CAFTA-DR (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua) | 77,533 | 7,358,000 |
| Chile FTA | 77,533 | 7,358,000 |
| Colombia FTA | 77,533 | 7,358,000 |
| Korea FTA | 100,000 | 7,358,000 |
| Morocco FTA | 191,000 | 7,358,000 |
| NAFTA | ||
| -Canada | 25,000 | 10,079,365 |
| -Mexico | 77,533 | 10,079,365 |
| Panama FTA | 191,000 | 7,358,000 |
| Peru FTA | 191,000 | 7,358,000 |
| Singapore FTA | 77,533 | 7,358,000 |
II. Discussion and Analysis
This final rule implements the new thresholds in DFARS part 225, Foreign Contracting, for sections that include trade agreements thresholds ( i.e., 225.1101, 225.7017-3, 225.7017-4, and 225.7503). Additionally, the rule updates clauses 252.225-7017, Photovoltaic Devices, and 252.225-7018, Photovoltaic Devices-Certificate, with conforming changes. A minor technical amendment corrects cross references at 225.1101(10)(i) and paragraphs (b)(1)(i) and (ii) of the clause at 252.225-7018.
III. Publication of This Final Rule for Public Comment Is Not Required by Statute
[top] The statute that applies to the publication of the Federal Acquisition Regulation (FAR) is 41. U.S.C. entitled "Publication of Proposed Regulations." 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
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. This rule is not a major rule under 5 U.S.C. 804.
V. Regulatory Flexibility Act
The Regulatory Flexibility Act does not apply to this rule because this final rule does not constitute a significant FAR revision within the meaning of FAR 1.501-1, and 41 U.S.C. 1707 does not require publication for public comment.
VI. 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 and the certification and information collection requirements in the provision at DFARS 252.225-7018 (both currently approved under OMB Control #0704-0229), Defense Federal Acquisition Regulation Supplement Part 225, Foreign Acquisition and Related Clauses. However, there is no impact on the estimated burden hours, because the threshold changes are in line with inflation and maintain the status quo.
List of Subjects in 48 CFR Parts 225 and 252
Government procurement.
Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 225 and 252 are amended as follows:
1. The authority citation for 48 CFR parts 225 and 252 continues to read as follows:
Authority:
41 U.S.C. 1303 and CFR chapter 1.
PART 225-FOREIGN CONTRACTING
225.1101 [Amended]
2. Amend section 225.1101-
a. In paragraph (6) introductory text, by removing "$204,000" and adding "$191,000" in its place;
b. In paragraph (10)(i) introductory text, by removing "$204,000" and adding "$191,000" in its place, and removing "at 25.401 applies" and adding "at FAR 25.401 or 225.401 applies" in its place;
c. In paragraphs (10)(i)(A), by removing "$204,000" and adding "$191,000" in its place;
d. In paragraph (10)(i)(B), by removing "$79,507" and adding "$77,533" in its place;
e. In paragraph (10)(i)(C), by removing "$204,000" and adding "$191,000" in its place; and
f. In paragraphs (10)(i)(D) through (F), by removing "$79,507" wherever it appears and adding "$77,533)" in its place.
225.7017-3 [Amended]
3. Amend section 225.7017-3 in paragraph (b) by removing "$204,000" and adding "$191,000" in its place.
225.7017-4 [Amended]
4. Amend section 225.7017-4 in paragraphs (a)(1) and (b)(1) by removing "$204,000" and adding "$191,000" in both places.
225.7503 [Amended]
5. Amend section 225.7503-
a. In paragraphs (a) and (b) introductory text, by removing "$7,864,000" and adding "$7,358,000" in both places;
b. In paragraph (b)(1), by removing "$10,335,931" and adding "$10,079,365" in its place;
c. In paragraph (b)(2), by removing "$7,864,000" and adding "$7,358,000" in its place, and removing "$10,335,931" and adding "$10,079,365" in its place;
d. In paragraph (b)(3) by removing, "$10,335,931" and adding "$10,079,365" in its place; and
e. In paragraph (b)(4), by removing "$7,864,000" and adding "$7,358,000" in its place, and removing "$10,335,931" and adding "$10,079,365" in its place.
PART 252-SOLICITATION PROVISIONS AND CONTRACT CLAUSES
252.225-7017 [Amended]
6. Amend section 252.225-7017-
a. By removing clause date "(NOV 2015)" and adding "(JAN 2016)" in its place;
b. In paragraphs (c)(2) and (3), by removing "$79,507" and adding "$77,533" in its place; and
c. In paragraphs (c)(4) and (5), by removing "$204,000" and adding "$191,000" in its place.
252.225-7018 [Amended]
7. Amend section 252.225-7018-
a. By removing clause date "(NOV 2015)" and adding "(JAN 2016)" in its place;
b. In paragraph (b)(1) introductory text, by removing "$204,000" and adding "$191,000" in its place;
c. In paragraph (b)(1)(i), by removing "DFARS 225.217-4(b)" and adding "DFARS 225.7017-4(b)" in its place;
d. In paragraph (b)(1)(ii), by removing "DFARS 225.217-4(a)" and adding "DFARS 225.7017-4(a)" in its place;
e. In paragraph (b)(2), by removing "$204,000" and adding "$191,000" in its place;
f. In paragraphs (d)(3) and (4) introductory text, by removing "$79,507" and adding "$77,533" in both places; and
g. In paragraphs (d)(5) and (6) introductory text, by removing "$204,000" and adding "$191,000" in both places.
[FR Doc. 2015-32875 Filed 12-29-15; 8:45 am]
BILLING CODE 5001-06-P