80 FR 81470 - Defense Federal Acquisition Regulation Supplement: Trade Agreements Thresholds (DFARS Case 2016-D003)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 80, Issue 250 (December 30, 2015)

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.

[Federal Register Volume 80, Number 250 (Wednesday, December 30, 2015)]
[Rules and Regulations]
[Pages 81470-81471]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32875]


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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.

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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):

------------------------------------------------------------------------
                                                          Construction
                                       Supply contract   contract (equal
           Trade agreement              (equal to or          to or
                                         exceeding)        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             77,533         7,358,000
     Republic, El Salvador,
     Guatemala, Honduras, and
     Nicaragua).....................
    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

    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

[[Page 81471]]

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 
adjust for changes in economic conditions, thus maintaining the status 
quo, without significant effect beyond the internal operating 
procedures of the Government.

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:

0
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]

0
2. Amend section 225.1101--
0
a. In paragraph (6) introductory text, by removing ``$204,000'' and 
adding ``$191,000'' in its place;
0
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;
0
c. In paragraphs (10)(i)(A), by removing ``$204,000'' and adding 
``$191,000'' in its place;
0
d. In paragraph (10)(i)(B), by removing ``$79,507'' and adding 
``$77,533'' in its place;
0
e. In paragraph (10)(i)(C), by removing ``$204,000'' and adding 
``$191,000'' in its place; and
0
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]

0
3. Amend section 225.7017-3 in paragraph (b) by removing ``$204,000'' 
and adding ``$191,000'' in its place.


225.7017-4  [Amended]

0
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]

0
5. Amend section 225.7503--
0
a. In paragraphs (a) and (b) introductory text, by removing 
``$7,864,000'' and adding ``$7,358,000'' in both places;
0
b. In paragraph (b)(1), by removing ``$10,335,931'' and adding 
``$10,079,365'' in its place;
0
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;
0
d. In paragraph (b)(3) by removing, ``$10,335,931'' and adding 
``$10,079,365'' in its place; and
0
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]

0
6. Amend section 252.225-7017--
0
a. By removing clause date ``(NOV 2015)'' and adding ``(JAN 2016)'' in 
its place;
0
b. In paragraphs (c)(2) and (3), by removing ``$79,507'' and adding 
``$77,533'' in its place; and
0
c. In paragraphs (c)(4) and (5), by removing ``$204,000'' and adding 
``$191,000'' in its place.


252.225-7018  [Amended]

0
7. Amend section 252.225-7018--
0
a. By removing clause date ``(NOV 2015)'' and adding ``(JAN 2016)'' in 
its place;
0
b. In paragraph (b)(1) introductory text, by removing ``$204,000'' and 
adding ``$191,000'' in its place;
0
c. In paragraph (b)(1)(i), by removing ``DFARS 225.217-4(b)'' and 
adding ``DFARS 225.7017-4(b)'' in its place;
0
d. In paragraph (b)(1)(ii), by removing ``DFARS 225.217-4(a)'' and 
adding ``DFARS 225.7017-4(a)'' in its place;
0
e. In paragraph (b)(2), by removing ``$204,000'' and adding 
``$191,000'' in its place;
0
f. In paragraphs (d)(3) and (4) introductory text, by removing 
``$79,507'' and adding ``$77,533'' in both places; and
0
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