[Federal Register: July 2, 2010 (Volume 75, Number 127)]
[Rules and Regulations]
[Page 38689-38691]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02jy10-22]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 22, 25, and 52
[FAC 2005-43; FAR Case 2009-040; Item V; Docket 2010-0092, Sequence 1]
RIN 9000-AL57
Federal Acquisition Regulation; FAR Case 2009-040, Trade
Agreements Thresholds
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule with request for comments.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (the Councils) are issuing an interim
rule amending the Federal Acquisition Regulation (FAR) 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 Date: July 2, 2010.
Comment Date: Interested parties should submit written comments to
the Regulatory Secretariat on or before August 31, 2010 to be
considered in the formulation of a final rule.
ADDRESSES: Submit comments identified by FAC 2005-43, FAR Case 2009-
040, by any of the following methods:
Regulations.gov: http://www.regulations.gov.
Submit comments via the Federal eRulemaking portal by inputting
``FAR Case 2009-040'' under the heading ``Enter Keyword or ID'' and
selecting ``Search''. Select the link ``Submit a Comment'' that
corresponds with ``FAR Case 2009-040''. Follow the instructions
provided at the ``Submit a Comment'' screen. Please include your name,
company name (if any), and ``FAR Case 2009-040'' on your attached
document.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (MVCB), 1800 F Street, NW., Room 4041, ATTN: Hada Flowers,
Washington, DC 20405.
Instructions: Please submit comments only and cite FAC 2005-43, FAR
case 2009-040, in all correspondence related to this case. All comments
received will be posted without change to http://www.regulations.gov,
including any personal and/or business confidential information
provided.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
Ms. Cecelia L. Davis, Procurement Analyst, at (202) 219-0202. Please
cite FAC 2005-43, FAR Case 2009-040. For information pertaining to
status or publication schedules, contact the Regulatory Secretariat at
(202) 501-4755.
SUPPLEMENTARY INFORMATION:
A. Background
Every two years, the trade agreements thresholds are adjusted
according to a pre-determined formula under the agreements. On December
29, 2009 (74 FR 68907), the United States Trade Representative
established new procurement thresholds. These thresholds became
effective on January 1, 2010. The United States Trade Representative
has specified the following new thresholds:
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Supply contract Service contract Construction
Trade agreement (equal to or (equal to or contract (equal
exceeding) exceeding) to or exceeding)
----------------------------------------------------------------------------------------------------------------
WTO GPA................................................ $203,000 $203,000 $7,804,000
FTAs:
Australia FTA...................................... 70,079 70,079 7,804,000
Bahrain FTA........................................ 203,000 203,000 9,110,318
CAFTA-DR (Costa Rica, Dominican Republic, El 70,079 70,079 7,804,000
Salvador, Guatemala, Honduras, and Nicaragua).....
Chile FTA.......................................... 70,079 70,079 7,804,000
Morocco FTA........................................ 203,000 203,000 7,804,000
NAFTA:
--Canada........................................... 25,000 70,079 9,110,318
--Mexico........................................... 70,079 70,079 9,110,318
Oman FTA............................................... 203,000 203,000 9,110,318
Peru FTA............................................... 203,000 203,000 7,804,000
Singapore FTA.......................................... 70,079 70,079 7,804,000
Israeli Trade Act...................................... 50,000 ................. .................
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B. Executive Order 12866
This is a significant regulatory action and, therefore, was subject
to review under Section 6(b) of Executive Order 12866, Regulatory
Planning and Review, dated September 30, 1993. This rule is not a major
rule under 5 U.S.C. 804.
C. Regulatory Flexibility Act
The Councils do not expect this interim rule to have a significant
economic impact on a substantial number of small entities within the
[[Page 38690]]
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
because the dollar threshold changes are designed to keep pace with
inflation and thus maintain the status quo. Therefore, an Initial
Regulatory Flexibility Analysis has not been performed. The Councils
invite comments from small business concerns and other interested
parties on the expected impact of this rule on small entities.
The Councils will also consider comments from small entities
concerning the existing regulations in parts affected by this rule in
accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C. 610 (FAC 2005-43, FAR Case
2009-040) in all correspondence.
D. Paperwork Reduction Act
The Paperwork Reduction Act does apply; however, these changes to
the FAR do not impose additional information collection requirements to
the paperwork burden previously approved under OMB Control Numbers
9000-0130 (FAR 52.225-4), 9000-0025 (FAR 52.225-6) and 9000-0141 (FAR
52.225-9, 52.225-11, 52.225-21, and 52.225-23). The interim rule
affects the prescriptions for use of the certifications. However, there
is no impact on the estimated burden hours, because the threshold
changes are in line with inflation and maintain the status quo.
E. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense (DOD), the Administrator of General Services (GSA), and the
Administrator of the National Aeronautics and Space Administration
(NASA), that urgent and compelling reasons exist to promulgate this
interim rule without prior opportunity for public comment. This interim
rule incorporates increased dollar thresholds for application of the
World Trade Organization Government Procurement Agreement and the Free
Trade Agreements, as determined by the United States Trade
Representative. This action is necessary because the new thresholds
became effective on January 1, 2010. However, pursuant to 41 U.S.C.
418b and FAR 1.501-3(b), the Councils will consider public comments
received in response to this interim rule in the formation of the final
rule. Absent this regulatory change, this requirement would not be
incorporated into the FAR and implemented by the acquisition community.
List of Subjects in 48 CFR Parts 22, 25, and 52
Government procurement.
Dated: June 25, 2010.
Edward Loeb,
Director, Acquisition Policy Division.
0
Therefore, DoD, GSA, and NASA amend 48 CFR parts 22, 25, and 52 as set
forth below:
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 42
U.S.C. 2473(c).
PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
22.1503 [Amended]
0
2. Amend section 22.1503 by removing from paragraph (b)(3) ``$67,826''
and adding ``$70,079'' in its place; and removing from paragraph (b)(4)
``$194,000'' and adding ``$203,000'' in its place.
PART 25--FOREIGN ACQUISITION
25.202 [Amended]
0
3. Amend section 25.202 by removing from paragraph (c) ``$7,443,000''
and adding ``$7,804,000'' in its place.
0
4. Amend section 25.402 by revising the table that follows paragraph
(b) to read as follows:
25.402 General.
* * * * *
(b) * * *
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Supply contract Service contract Construction
Trade agreement (equal to or (equal to or contract (equal
exceeding) exceeding) to or exceeding)
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WTO GPA................................................ $203,000 $203,000 $7,804,000
FTAs:
Australia FTA...................................... 70,079 70,079 7,804,000
Bahrain FTA........................................ 203,000 203,000 9,110,318
CAFTA-DR (Costa Rica, El Salvador, Dominican 70,079 70,079 7,804,000
Republic, Guatemala, Honduras, and Nicaragua).....
Chile FTA.......................................... 70,079 70,079 7,804,000
Morocco FTA........................................ 203,000 203,000 7,804,000
NAFTA:
--Canada........................................... 25,000 70,079 9,110,318
--Mexico........................................... 70,079 70,079 9,110,318
Oman FTA............................................... 203,000 203,000 9,110,318
Peru FTA............................................... 203,000 203,000 7,804,000
Singapore FTA.......................................... 70,079 70,079 7,804,000
Israeli Trade Act...................................... 50,000 ................. .................
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0
4. Amend section 25.504-2 by revising Example 1. to read as follows:
25.504-2 WTO GPA/Caribbean Basin Trade Initiative/FTAs.
Example 1.
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Offer A........................ 304,000 U.S.-made end product
(not domestic).
Offer B........................ 303,000 U.S.-made end product
(domestic), small
business.
Offer C........................ 300,000 Eligible product.
Offer D........................ 295,000 Noneligible product
(not U.S.-made).
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[[Page 38691]]
* * * * *
25.603 [Amended]
0
5. Amend section 25.603 in paragraph (c) by removing ``$7,443,000'' and
adding ``$7,804,000'' in its place.
25.1101 [Amended]
0
6. Amend section 25.1101 by--
0
a. Removing from paragraph (b)(1)(i)(A) ``$194,000'' and adding
``$203,000'' in its place;
0
b. Removing from paragraphs (b)(1)(iii) and (b)(2)(iii) ``$67,826'',
and adding ``$70,079'' in its place;
0
c. Removing from paragraphs (c)(1) and (d) ``$194,000'', and adding
``$203,000'' in its place.
0
7. Amend section 25.1102 by removing from paragraphs (a) introductory
text and (c) introductory text ``$7,443,000'' and adding ``$7,804,000''
in its place; revising the first sentence in paragraph (c)(3); and
revising paragraph (d)(3) to read as follows:
25.1102 Acquisition of construction.
* * * * *
(c) * * *
(3) For acquisitions valued at $7,804,000 or more, but less than
$9,110,318, use the clause with its Alternate I. * * *
(d) * * *
(3) For acquisitions valued at $7,804,000 or more, but less than
$9,110,318, use the clause with its Alternate II.
* * * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
8. Amend section 52.212-5 by revising the date of the clause and
paragraph (b)(20) 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 (JUL 2010)
(b) * * *
----(20) 52.222-19, Child Labor--Cooperation with Authorities
and Remedies (Jul 2010) (E.O. 13126).
* * * * *
0
9. Amend section 52.213-4 by revising the date of the clause and the
first sentence of paragraph (b)(1)(i) to read as follows:
52.213-4 Terms and Conditions--Simplified Acquisitions (Other Than
Commercial Items).
* * * * *
TERMS AND CONDITIONS--SIMPLIFIED ACQUISITIONS (OTHER THAN COMMERCIAL
ITEMS) (JUL 2010)
(b) * * *
(1) * * *
(i) 52.222-19, Child Labor--Cooperation with Authorities and
Remedies (Jul 2010) (E.O. 13126). * * *
* * * * *
0
10. Amend section 52.222-19 by revising the date of the clause;
removing from paragraph (a)(3) ``$67,826'' and adding ``$70,079'' in
its place; and removing from paragraph (a)(4) ``$194,000'' and adding
``$203,000'' in its place.
The revised text reads as follows:
52.222-19 Child Labor--Cooperation with Authorities and Remedies.
* * * * *
CHILD LABOR--COOPERATION WITH AUTHORITIES AND REMEDIES (JUL 2010)
* * * * *
[FR Doc. 2010-15901 Filed 7-1-10; 8:45 am]
BILLING CODE 6820-EP-P