[Federal Register Volume 77, Number 91 (Thursday, May 10, 2012)]
[Rules and Regulations]
[Pages 27548-27550]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-11149]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 25 and 52
[FAC 2005-59; FAR Case 2012-012; Item II; Docket 2012-0012, Sequence 1]
RIN 9000-AM24
Federal Acquisition Regulation; Free Trade Agreement--Colombia
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule.
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SUMMARY: DoD, GSA, and NASA are issuing an interim rule amending the
Federal Acquisition Regulation (FAR) to implement the United States-
Colombia Trade Promotion Agreement. This Trade Promotion Agreement is a
free trade agreement that provides for mutually non-discriminatory
treatment of eligible products and services from Colombia.
DATES: Effective Date: May 15, 2012.
Comment Date: Interested parties should submit written comments to
the Regulatory Secretariat on or before July 9, 2012 to be considered
in the formulation of a final rule.
ADDRESSES: Submit comments identified by FAC 2005-59, FAR Case 2012-
012, by any of the following methods:
Regulations.gov: http://www.regulations.gov. Submit
comments via the Federal eRulemaking portal by searching ``FAR Case
2012-012''. Select the link ``Submit a Comment'' that corresponds with
``FAR Case 2012-012.'' Follow the instructions provided at the ``Submit
a Comment'' screen. Please include your name, company name (if any),
and ``FAR Case 2012-012'' on your attached document.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (MVCB), ATTN: Hada Flowers, 1275 First Street NE., 7th
Floor, Washington, DC 20417.
Instructions: Please submit comments only and cite FAC 2005-59, FAR
Case 2012-012, in all correspondence related
[[Page 27549]]
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: Ms. Cecelia L. Davis, Procurement
Analyst, at 202-219-0202 for clarification of content. For information
pertaining to status or publication schedules, contact the Regulatory
Secretariat at (202) 501-4755. Please cite FAC 2005-59, FAR Case 2012-
012.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA are issuing an interim rule amending the Federal
Acquisition Regulation (FAR), to amend FAR part 25 and the
corresponding provisions and clauses in FAR part 52 to implement the
United States-Colombia Trade Promotion Agreement Implementation Act
(Pub. L. 112-42) (19 U.S.C. 3805 note).
This Trade Promotion Agreement is designated in the FAR as the
Colombia Free Trade Agreement (FTA). The FTA provides for--
Waiver of the applicability of the Buy American statute
(41 U.S.C. chapter 83) for some foreign supplies and construction
materials from Colombia; and
Applicability of specified procurement procedures designed
to ensure fairness in the acquisition of supplies and services (see FAR
25.408).
II. Discussion and Analysis
This interim rule adds Colombia to the definition of ``Free Trade
Agreement country'' in multiple locations in the FAR.
The Colombia FTA covers acquisition of supplies and services equal
to or exceeding $77,494. The threshold for the Colombia FTA is
$7,777,000 for construction. The excluded services for the Colombia FTA
are the same as for the Bahrain FTA, Dominican Republic-Central
American FTA, Chile FTA, NAFTA, Oman FTA, and Peru FTA.
Because the Colombia FTA construction threshold of $7,777,000 is
the same as the WTO GPA threshold, no new clause alternates are
required for the Buy American Act--Construction Materials under Trade
Agreements provision and clause (FAR 52.225-11 and 52.225-12) or the
Recovery Act FAR clauses at 52.225-23 and 52.225-24.
III. 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 a significant regulatory action and, therefore, was 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.
IV. Regulatory Flexibility Act
DoD, GSA, and NASA do not expect this interim rule to have a
significant economic impact on a substantial number of small entities
within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et
seq. Although the rule now opens up Government procurement to the goods
and services of Colombia, DoD, GSA, and NASA do not anticipate any
significant economic impact on U.S. small businesses. The Department of
Defense only applies the trade agreements to the non-defense items
listed at Defense Federal Acquisition Regulation Supplement 225.401-70,
and acquisitions that are set aside or provide other form of preference
for small businesses are exempt. FAR 19.502-2 states that acquisitions
of supplies or services with an anticipated dollar value between $3,000
and $150,000 (with some exceptions) are automatically reserved for
small business concerns.
Therefore, an Initial Regulatory Flexibility Analysis has not been
performed. DoD, GSA, and NASA invite comments from small business
concerns and other interested parties on the expected impact of this
rule on small entities.
DoD, GSA, and NASA will also consider comments from small entities
concerning the existing regulations in subparts affected by the 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 2005-59, FAR Case
2012-012), in correspondence.
V. Paperwork Reduction Act
This rule affects the certification and information collection
requirements in the provisions at FAR 52.212-3, 52.225-4, 52.225-6, and
52.225-11 currently approved under OMB Control Numbers 9000-0136, 9000-
0130, 9000-0025, and 9000-0141, respectively, in accordance with the
Paperwork Reduction Act (44 U.S.C. chapter 35). The impact, however, is
negligible because it is just a question of which category offered
goods from Colombia would be listed under.
VI. 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 action
is necessary because the effective date of the Free Trade Agreement
with Colombia is May 15, 2012. This is a reciprocal agreement, approved
by Congress and the President of the United States. It is important for
the United States Government to honor its new trade obligations to
Colombia, as Colombia in turn honors its new trade obligations to the
United States. However, pursuant to 41 U.S.C. 1707 and FAR 1.501-3(b),
DoD, GSA, and NASA will consider public comments received in response
to this interim rule in the formation of the final rule.
List of Subjects in 48 CFR Parts 25 and 52
Government procurement.
Dated: May 3, 2012.
Laura Auletta,
Director, Office of Governmentwide Acquisition Policy, Office of
Acquisition Policy, Office of Governmentwide Policy.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 25 and 52 as set
forth below:
0
1. The authority citation for 48 CFR parts 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 25--FOREIGN ACQUISITION
25.003 [Amended]
0
3. Amend section 25.003 by removing from paragraph (2) of the
definition ``Designated country'', and the definition ``Free Trade
Agreement country'' the words ``Chile, Costa Rica'' and adding the
words ``Chile, Colombia, Costa Rica'' in their place.
0
4. Amend section 25.400 by removing from paragraph (a)(2)(ix) ``; and''
and adding ``;'' in its place; removing from paragraph (a)(2)(x) ``;''
and adding ``; and'' in its place; and adding paragraph (a)(2)(xi) to
read as follows:
25.400 Scope of subpart.
(a) * * *
[[Page 27550]]
(2) * * *
(xi) Colombia FTA (the United States-Colombia Trade Promotion
Agreement Implementation Act (Pub. L. 112-42) (19 U.S.C. 3805 note));
* * * * *
25.401 [Amended]
0
5. Amend section 25.401 in the table that follows paragraph (b) by
removing from the table heading ``CAFTA-DR, Chile'' and adding ``CAFTA-
DR, Colombia FTA, Chile'' in its place.
0
6. 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................................................ $202,000 $202,000 $7,777,000
FTAs:
Australia FTA...................................... 77,494 77,494 7,777,000
Bahrain FTA........................................ 202,000 202,000 10,074,262
CAFTA-DR (Costa Rica, Dominican Republic, El 77,494 77,494 7,777,000
Salvador, Guatemala, Honduras, and Nicaragua).....
Chile FTA.......................................... 77,494 77,494 7,777,000
Colombia FTA....................................... 77,494 77,494 7,777,000
Korea FTA.......................................... 100,000 100,000 7,777,000
Morocco FTA........................................ 202,000 202,000 7,777,000
NAFTA:
--Canada....................................... 25,000 77,494 10,074,262
--Mexico....................................... 77,494 77,494 10,074,262
Oman FTA........................................... 202,000 202,000 10,074,262
Peru FTA........................................... 202,000 202,000 7,777,000
Singapore FTA...................................... 77,494 77,494 7,777,000
Israeli Trade Act...................................... 50,000 -- --
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PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
7. Amend section 52.212-5 by revising the date of the clause, and
paragraphs (b)(40)(i) and (b)(41) 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 (MAY 2012)
* * * * *
(b) * * *
---- (40)(i) 52.225-3, Buy American Act--Free Trade Agreements--
Israeli Trade Act (MAY 2012) (41 U.S.C. chapter 83, 19 U.S.C. 3301
note, 19 U.S.C. 2112 note, 19 U.S.C. 3805 note, 19 U.S.C. 4001 note,
Pub. L. 103-182, 108-77, 108-78, 108-286, 108-302, 109-53, 109-169,
109-283, 110-138, 112-41, and 112-42).
* * * * *
---- (41) 52.225-5, Trade Agreements (MAY 2012) (19 U.S.C. 2501, et
seq., 19 U.S.C. 3301 note).
* * * * *
52.225-3 [Amended]
0
8. Amend section 52.225-3 by revising the date of the clause to read
``(MAY 2012)''; and in paragraph (a) removing from the definition
``Free Trade Agreement country'' the words ``Chile, Costa Rica'' and
adding the words ``Chile, Colombia, Costa Rica'' in their place.
52.225-5 [Amended]
0
9. Amend section 52.225-5 by revising the date of the clause to read
``(MAY 2012)''; and in paragraph (a) removing from paragraph (2) of the
definition ``Designated country'' the words ``Chile, Costa Rica'' and
adding the words ``Chile, Colombia, Costa Rica'' in their place.
52.225-11 [Amended]
0
10. Amend section 52.225-11 by revising the date of the clause to read
``(MAY 2012)''; and in paragraph (a) removing from paragraph (2) of the
definition ``Designated country'' the words ``Chile, Costa Rica'' and
adding the words ``Chile, Colombia, Costa Rica'' in their place.
52.225-23 [Amended]
0
11. Amend section 52.225-23 by revising the date of the clause to read
``(MAY 2012)''; and in paragraph (a) removing from paragraph (2) of the
definitions ``Designated country'' and ``Recovery Act designated
country'' the words ``Chile, Costa Rica'' and adding the words ``Chile,
Colombia, Costa Rica'' in their place.
[FR Doc. 2012-11149 Filed 5-9-12; 8:45 am]
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