80 FR 81892 - Federal Acquisition Regulation; New Designated Countries-Montenegro and New Zealand

DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 80, Issue 251 (December 31, 2015)

DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to add Montenegro and New Zealand as new designated countries under the World Trade Organization Government Procurement Agreement (WTO GPA) and update the list of parties to the Agreement on Trade in Civil Aircraft.

[Federal Register Volume 80, Number 251 (Thursday, December 31, 2015)]
[Rules and Regulations]
[Pages 81892-81894]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32429]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 22, 25, and 52

[FAC 2005-86; FAR Case 2015-034; Item III; Docket No. 2015-0034; 
Sequence No. 1]
RIN 9000-AN15


Federal Acquisition Regulation; New Designated Countries--
Montenegro and New Zealand

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to add Montenegro and New Zealand 
as new designated countries under the World Trade Organization 
Government Procurement Agreement (WTO GPA) and update the list of 
parties to the Agreement on Trade in Civil Aircraft.

DATES: Effective: February 1, 2016.

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 Division at 202-501-4755. Please cite FAC 2005-86, FAR Case 
2015-034.

SUPPLEMENTARY INFORMATION:

I. Background

    On July 15, 2015, Montenegro became a party to the WTO GPA. New 
Zealand became a party to the WTO GPA on August 12, 2015. The Trade 
Agreements Act (19 U.S.C. 2501 et seq.) provides the authority for the 
President to waive the Buy American Act and other discriminatory 
provisions for eligible products from countries that have signed an 
international trade agreement with the United States (such as the WTO 
GPA). The President has delegated this authority to the U.S. Trade 
Representative.
    Effective July 15, 2015, because Montenegro became a party to the 
WTO GPA, and because the U.S. Trade Representative has determined that 
Montenegro will provide appropriate reciprocal competitive Government 
procurement opportunities to United States products and services, the 
U.S. Trade Representative published a notice in the Federal Register at 
80 FR 39829 on July 10, 2015, waiving the Buy American Act and other 
discriminatory provisions for eligible products from Montenegro.
    Effective August 12, 2015, because New Zealand became a party to 
the WTO GPA, and because the U.S. Trade Representative has determined 
that New Zealand will provide appropriate reciprocal competitive 
Government procurement opportunities to United States products and 
services, the U.S. Trade Representative published a notice in the 
Federal Register at 80 FR 48386 on August 12, 2015, waiving the Buy 
American Act and other discriminatory provisions for eligible products 
from New Zealand.
    In addition, the Office of the U.S. Trade Representative has also 
indicated that Montenegro is a party to the Agreement on Trade in Civil 
Aircraft. The U.S. Trade Representative has waived the Buy American Act 
for civil aircraft and related articles from countries that are parties 
to the Agreement on Trade in Civil Aircraft.

II. Discussion and Analysis

    Therefore, this rule adds Montenegro and New Zealand to the list of 
World Trade Organization Government Procurement Agreement countries 
wherever it appears in the FAR, whether as a separate definition, part 
of the definition of ``designated country'' or ``Recovery Act 
designated country,'' or as part of the list of countries exempt from 
the prohibition of acquisition of products produced by forced or 
indentured child labor (FAR 22.1503, 25.003, 52.222-19, 52.225-5, 
52.225-11, and 52.225-23).
    This rule also updates FAR 25.407 and 52.225-7 to reflect that 
Montenegro is already a party to the Agreement on Trade in Civil 
Aircraft.
    Conforming changes were required to FAR 52.212-5, Contract Terms 
and Conditions Required to Implement Statute or Executive Orders--
Commercial Items, and 52.213-4, Terms

[[Page 81893]]

and Conditions--Simplified Acquisitions (Other Than Commercial Items).

III. Publication of This Final Rule for Public Comment Is Not Required 
by Statute

    ``Publication of proposed regulations'', 41 U.S.C. 1707, applies to 
the publication of the Federal Acquisition Regulation. 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 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 has no 
significant cost or administrative impact on contractors or offerors. 
The rule solely updates the lists of designated countries and countries 
that are parties to the Agreement on Trade in Civil Aircraft, in order 
to conform to the determinations by the U.S. Trade Representative.

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 does apply, because the rule affects 
the response of an offeror that is offering a product of Montenegro to 
the information collection requirements in the provisions at FAR 
52.212-3(g)(5), 52.225-6, and 52.225-11. The offeror is no longer 
required to list a product from Montenegro or New Zealand under ``other 
end products'', because Montenegro is now a designated country. These 
information collection requirements are currently approved under OMB 
clearances 9000-0136, 9000-0025, and 9000-0141 respectively. The 
impact, however, is negligible.

List of Subjects in 48 CFR Parts 22, 25, and 52

    Government procurement.

    Dated: December 17, 2015.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-wide Policy.
    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 51 
U.S.C. 20113.

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS


22.1503  [Amended]

0
2. Amend section 22.1503 by adding to paragraph (b)(4), in alphabetical 
order, ``Montenegro,'' and ``New Zealand,''.

PART 25--FOREIGN ACQUISITION


25.003  [Amended]

0
3. Amend section 25.003 by--
0
a. In the definition ``Designated country''--
0
i. Removing from paragraph (1) ``Agreement'' and adding ``Agreement 
(WTO GPA)'' in its place and adding, in alphabetical order, 
``Montenegro,'' and ``New Zealand,''; and
0
ii. Removing from paragraph (2) ``Agreement'' and adding ``Agreement 
(FTA)'' in its place; and
0
b. In the definition ``World Trade Organization Government Procurement 
Agreement (WTO GPA) country'', adding, in alphabetical order, 
``Montenegro,'' and ``New Zealand,''.


25.407  [Amended]

0
4. Amend section 25.407 by adding, in alphabetical order, the word 
``Montenegro,''.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
5. Amend section 52.212-5 by revising the date of the clause and 
paragraphs (b)(26) and (43) 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 (FEB 2016)

* * * * *
    (b) * * *
    __ (26) 52.222-19, Child Labor--Cooperation with Authorities and 
Remedies (FEB 2016) (E.O. 13126).
* * * * *
    __ (43) 52.225-5, Trade Agreements (FEB 2016) (19 U.S.C. 2501, 
et seq., 19 U.S.C. 3301 note).
* * * * *

0
6. Amend section 52.213-4 by adding a period at the end of the section 
heading and revising the date of the clause and paragraph (b)(1)(ii) 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) (FEB 2016)

* * * * *
    (b) * * *
    (1) * * *
    (ii) 52.222-19, Child Labor--Cooperation with Authorities and 
Remedies (FEB 2016) (E.O. 13126). (Applies to contracts for supplies 
exceeding the micro-purchase threshold).
* * * * *


0
7. Amend section 52.222-19 by revising the date of the clause and 
adding to paragraph (a)(4), in alphabetical order, ``Montenegro,'' and 
``New Zealand,'' to read as follows:


52.222-19  Child Labor--Cooperation with Authorities and Remedies.

* * * * *

Child Labor--Cooperation With Authorities and Remedies (FEB 2016)

0
8. Amend section 52.225-5 by--
0
a. Revising the date of the clause; and
0
b. In paragraph (a), under the definition of ``Designated country''--
0
i. In paragraph (1)--
0
A. Removing ``Agreement'' and adding ``Agreement (WTO GPA)'' in its 
place;

[[Page 81894]]

0
B. Adding, in alphabetical order, ``Montenegro,'' and ``New Zealand,''; 
and
0
C. Removing ``Taipei))'','' and adding ``Taipei)''),'' in its place; 
and
0
ii. Removing from paragraph (2) ``Agreement'' and adding ``Agreement 
(FTA)'' in its place.
    The revision reads as follows:


52.225-5  Trade Agreements.

* * * * *

Trade Agreements (FEB 2016)

* * * * *


0
9. Amend section 52.225-7 by revising the date of the provision and 
adding to paragraph (b), in alphabetical order, ``Montenegro,'' to read 
as follows:


52.225-7  Waiver of Buy American Statute for Civil Aircraft and Related 
Articles.

* * * * *

Waiver of Buy American Statute for Civil Aircraft and Related Articles 
(FEB 2016)

* * * * *


0
10. Amend section 52.225-11 by--
0
a. Revising the date of the clause; and
0
b. In paragraph (a), under the definition of ``Designated country''--
0
i. In paragraph (1), removing ``Agreement'' and adding ``Agreement (WTO 
GPA)'' in its place and adding, in alphabetical order ``Montenegro,'' 
and ``New Zealand,''; and
0
ii. Removing from paragraph (2) ``Agreement'' and adding ``Agreement 
(FTA)'' in its place.
    The revision reads as follows:


52.225-11  Buy American--Construction Materials Under Trade Agreements.

* * * * *

Buy American--Construction Materials Under Trade Agreements (FEB 2016)

* * * * *


0
11. Amend section 52.225-23 by--
0
a. Revising the date of the clause; and
0
b. In paragraph (a)--
0
i. In the definition of ``Designated country'', adding to paragraph 
(1), in alphabetical order, ``Montenegro,'' and ``New Zealand,''; and
0
ii. In the definition of ``Recovery Act designated country'', adding in 
paragraph (1), in alphabetical order, ``Montenegro,'' and ``New 
Zealand,''.
    The revision reads as follows:


52.225-23  Required Use of American Iron, Steel, and Manufactured 
Goods--Buy American Statute--Construction Materials Under Trade 
Agreements.

* * * * *

Required Use of American Iron, Steel, and Manufactured Goods--Buy 
American Statute--Construction Materials Under Trade Agreements (FEB 
2016)

* * * * *
[FR Doc. 2015-32429 Filed 12-30-15; 8:45 am]
 BILLING CODE 6820-EP-P