81 FR 42563 - Defense Federal Acquisition Regulation Supplement: New Designated Country-Ukraine (DFARS Case 2016-D026)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 81, Issue 126 (June 30, 2016)

Page Range		42563-42564
FR Document		2016-15258

DoD is issuing a final rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to add Ukraine as a new designated country under the World Trade Organization Government Procurement Agreement.

Federal Register, Volume 81 Issue 126 (Thursday, June 30, 2016)

[Federal Register Volume 81, Number 126 (Thursday, June 30, 2016)]
[Rules and Regulations]
[Pages 42563-42564]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-15258]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 252

[Docket DARS-2016-0022]
RIN 0750-AI98


Defense Federal Acquisition Regulation Supplement: New Designated 
Country--Ukraine (DFARS Case 2016-D026)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: DoD is issuing a final rule to amend the Defense Federal 
Acquisition Regulation Supplement (DFARS) to add Ukraine as a new 
designated country under the World Trade Organization Government 
Procurement Agreement.

DATES: Effective June 30, 2016.

FOR FURTHER INFORMATION CONTACT: Mr. Christopher Stiller, telephone 
571-372-6176.

SUPPLEMENTARY INFORMATION: 

I. Background

    On November 11, 2015, the World Trade Organization (WTO) Committee 
on Government Procurement approved the accession of Ukraine to the WTO 
Government Procurement Agreement (GPA). Ukraine submitted its 
instrument of accession to the Secretary General of the WTO on April 
18, 2016. The GPA entered into force for Ukraine on May 18, 2016. The 
United States, which is also a party to the GPA, has agreed to waive 
discriminatory purchasing requirements for eligible products and 
suppliers of Ukraine beginning on May 18, 2016. Therefore, this rule 
adds Ukraine to the list of WTO GPA countries wherever it appears in 
the DFARS, as part of the definition of ``designated country''.

II. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This rule only updates the list of designated countries in the 
DFARS by adding the newly designated country of Ukraine. The definition 
of ``designated country'' is updated in each of the following clauses; 
however, this revision does not impact the clause prescriptions for 
use, or applicability at or below the simplified acquisition threshold, 
or applicability to commercial items. The clauses are: DFARS 252.225-
7017, Photovoltaic Devices; DFARS 252.225-7021, Trade Agreements; and 
DFARS 252.225-7045, Balance of Payments Program--Construction Material 
Under Trade Agreements.

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. 1707 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 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 is just updating the lists of designated countries in order 
to reflect that Ukraine is now a member of the WTO GPA. These 
requirements affect only 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 DFARS 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

    This rule affects the information collection requirements in the 
provisions at DFARS 252.225-7020, Trade Agreements Certificate, and 
252.225-7018, Photovoltaic Devices--Certificate, currently approved 
under OMB Control Number 0704-0229, entitled ``Defense Federal 
Acquisition Regulation Supplement Part 225, Foreign Acquisition, and 
related clauses,'' in accordance with the Paperwork Reduction Act (44 
U.S.C. chapter 35). The impact, however, is negligible, because the 
rule only affects the response of an offeror that is offering a product 
of Ukraine in an acquisition that exceeds $191,000. In 252.225-7018, 
the offeror of a product from Ukraine must now check a box at (d)(6)(i) 
of the provision. However, the offeror no longer needs to list a 
product from Ukraine under ``other end products'' at 252.225-
7020(c)(2), because Ukraine is now a designated country.

List of Subjects in 48 CFR Part 252

    Government procurement.

Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR part 252 is amended as follows:

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
1. The authority citation for 48 CFR part 252 continues to read as 
follows:

    Authority:  41 U.S.C. 1303 and 48 CFR chapter 1.


252.225-7017  [Amended]

0
2. Amend section 252.225-7017 by--
0
a. Removing the clause date of ``(JAN 2016)'' and adding ``(JUN 2016)'' 
in its place; and
0
b. In paragraph (a), in the definition of ``designated country'' in 
paragraph (i), adding, in alphabetical order, the country of 
``Ukraine''.


252.225-7021  [Amended]

0
3. Amend section 252.225-7021 by--

[[Page 42564]]

0
a. Removing the basic clause date of ``(OCT 2015)'' and adding ``(JUN 
2016)'' in its place;
0
b. In paragraph (a), in the definition of ``designated country'' in 
paragraph (i), adding, in alphabetical order, the country of 
``Ukraine''; and
0
c. In the Alternate II clause--
0
i. Removing the clause date of ``(OCT 2015)'' and adding ``(JUN 2016)'' 
in its place; and
0
ii. In paragraph (a), in the definition of ``designated country'' in 
paragraph (i), adding, in alphabetical order, the country of 
``Ukraine''.


252.225-7045  [Amended]

0
4. Amend section 252.225-7045 by--
0
a. Removing the basic clause date of ``(OCT 2015)'' and adding ``(JUN 
2016)'' in its place;
0
b. In paragraph (a), in the definition of ``designated country'' in 
paragraph (i), adding, in alphabetical order, the country of 
``Ukraine'';
0
c. In the Alternate I clause--
0
i. Removing the clause date of ``(OCT 2015)'' and adding ``(JUN 2016)'' 
in its place; and
0
ii. In paragraph (a), in the definition of ``designated country'' in 
paragraph (i), adding, in alphabetical order, the country of 
``Ukraine'';
0
d. In the Alternate II clause--
0
i. Removing the clause date of ``(OCT 2015)'' and adding ``(JUN 2016)'' 
in its place; and
0
ii. In paragraph (a), in the definition of ``designated country'' in 
paragraph (i), adding, in alphabetical order, the country of 
``Ukraine''; and
0
e. In the Alternate III clause--
0
i. Removing the clause date of ``(OCT 2015)'' and adding ``(JUN 2016)'' 
in its place; and
0
ii. In paragraph (a), in the definition of ``designated country'' in 
paragraph (i), adding, in alphabetical order, the country of 
``Ukraine''.

[FR Doc. 2016-15258 Filed 6-29-16; 8:45 am]
 BILLING CODE 5001-06-P

Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations 42563

Authorization Act for Fiscal Year 2016 II. Applicability to Contracts at or E.O. 12866, Regulatory Planning and
(Pub. L. 114–92), such contracts shall Below the Simplified Acquisition Review, dated September 30, 1993. This
not be subject to requirements under Threshold and for Commercial Items, rule is not a major rule under 5 U.S.C.
chapter 148 of title 10, United States Including Commercially Available Off- 804.
Code (including 10 U.S.C. 2533a), to the the-Shelf Items V. Regulatory Flexibility Act
extent such contracts are for purchases This rule only updates the list of
of products by other Federal agencies or The Regulatory Flexibility Act does
designated countries in the DFARS by not apply to this rule because this final
State or local governments. adding the newly designated country of rule does not constitute a significant
[FR Doc. 2016–15249 Filed 6–29–16; 8:45 am] Ukraine. The definition of ‘‘designated DFARS revision within the meaning of
BILLING CODE 5001–06–P country’’ is updated in each of the FAR 1.501–1, and 41 U.S.C. 1707 does
following clauses; however, this not require publication for public
revision does not impact the clause comment.
DEPARTMENT OF DEFENSE prescriptions for use, or applicability at
or below the simplified acquisition VI. Paperwork Reduction Act
Defense Acquisition Regulations threshold, or applicability to This rule affects the information
System commercial items. The clauses are: collection requirements in the
DFARS 252.225–7017, Photovoltaic provisions at DFARS 252.225–7020,
48 CFR Part 252 Devices; DFARS 252.225–7021, Trade Trade Agreements Certificate, and
Agreements; and DFARS 252.225–7045, 252.225–7018, Photovoltaic Devices—
[Docket DARS–2016–0022] Balance of Payments Program— Certificate, currently approved under
Construction Material Under Trade OMB Control Number 0704–0229,
RIN 0750–AI98
Agreements. entitled ‘‘Defense Federal Acquisition
Regulation Supplement Part 225,
III. Publication of This Final Rule for
Defense Federal Acquisition Foreign Acquisition, and related
Public Comment is not Required by
Regulation Supplement: New clauses,’’ in accordance with the
Statute
Designated Country—Ukraine (DFARS Paperwork Reduction Act (44 U.S.C.
Case 2016–D026) The statute that applies to the chapter 35). The impact, however, is
publication of the Federal Acquisition negligible, because the rule only affects
AGENCY: Defense Acquisition Regulation (FAR) is 41 U.S.C. 1707 the response of an offeror that is offering
Regulations System, Department of entitled ‘‘Publication of Proposed a product of Ukraine in an acquisition
Defense (DoD). Regulations.’’ Paragraph (a)(1) of the that exceeds $191,000. In 252.225–7018,
statute requires that a procurement the offeror of a product from Ukraine
ACTION: Final rule. policy, regulation, procedure or form must now check a box at (d)(6)(i) of the
(including an amendment or provision. However, the offeror no
SUMMARY: DoD is issuing a final rule to modification thereof) must be published longer needs to list a product from
amend the Defense Federal Acquisition for public comment if it relates to the Ukraine under ‘‘other end products’’ at
Regulation Supplement (DFARS) to add expenditure of appropriated funds, and 252.225–7020(c)(2), because Ukraine is
Ukraine as a new designated country has either a significant effect beyond the now a designated country.
under the World Trade Organization internal operating procedures of the
Government Procurement Agreement. agency issuing the policy, regulation, List of Subjects in 48 CFR Part 252
procedure or form, or has a significant Government procurement.
DATES: Effective June 30, 2016. cost or administrative impact on Jennifer L. Hawes,
FOR FURTHER INFORMATION CONTACT: Mr. contractors or offerors. This final rule is
Editor, Defense Acquisition Regulations
Christopher Stiller, telephone 571–372– not required to be published for public System.
6176. comment, because it is just updating the
lists of designated countries in order to Therefore, 48 CFR part 252 is
SUPPLEMENTARY INFORMATION:
reflect that Ukraine is now a member of amended as follows:
I. Background the WTO GPA. These requirements PART 252—SOLICITATION
affect only the internal operating PROVISIONS AND CONTRACT
On November 11, 2015, the World procedures of the Government. CLAUSES
Trade Organization (WTO) Committee
on Government Procurement approved IV. Executive Orders 12866 and 13563
■ 1. The authority citation for 48 CFR
the accession of Ukraine to the WTO Executive Orders (E.O.s) 12866 and part 252 continues to read as follows:
Government Procurement Agreement 13563 direct agencies to assess all costs
Authority: 41 U.S.C. 1303 and 48 CFR
(GPA). Ukraine submitted its instrument and benefits of available regulatory chapter 1.
of accession to the Secretary General of alternatives and, if regulation is
the WTO on April 18, 2016. The GPA necessary, to select regulatory 252.225–7017 [Amended]
entered into force for Ukraine on May approaches that maximize net benefits ■ 2. Amend section 252.225–7017 by—
18, 2016. The United States, which is (including potential economic, ■ a. Removing the clause date of ‘‘(JAN
also a party to the GPA, has agreed to environmental, public health and safety 2016)’’ and adding ‘‘(JUN 2016)’’ in its
waive discriminatory purchasing effects, distributive impacts, and place; and
srobinson on DSK5SPTVN1PROD with RULES

requirements for eligible products and equity). E.O. 13563 emphasizes the ■ b. In paragraph (a), in the definition of
suppliers of Ukraine beginning on May importance of quantifying both costs ‘‘designated country’’ in paragraph (i),
18, 2016. Therefore, this rule adds and benefits, of reducing costs, of adding, in alphabetical order, the
Ukraine to the list of WTO GPA harmonizing rules, and of promoting country of ‘‘Ukraine’’.
countries wherever it appears in the flexibility. This is not a significant
DFARS, as part of the definition of regulatory action and, therefore, was not 252.225–7021 [Amended]
‘‘designated country’’. subject to review under section 6(b) of ■ 3. Amend section 252.225–7021 by—

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42564 Federal Register / Vol. 81, No. 126 / Thursday, June 30, 2016 / Rules and Regulations

■ a. Removing the basic clause date of ACTION: Interim final rule. Improvements Act of 2015,’’ M–16–06
‘‘(OCT 2015)’’ and adding ‘‘(JUN 2016)’’ (OMB Memorandum M–16–06),
in its place; SUMMARY: PHMSA is revising references providing guidance to federal agencies
■ b. In paragraph (a), in the definition of in its regulations to the maximum civil on how to update their civil penalties
‘‘designated country’’ in paragraph (i), penalties for violations of the Federal pursuant to the 2015 Act. OMB
adding, in alphabetical order, the Pipeline Safety Laws, or any PHMSA Memorandum M–16–06 directs agencies
country of ‘‘Ukraine’’; and regulation or order issued thereunder. to use multipliers to adjust their civil
■ c. In the Alternate II clause— Under the ‘‘Federal Civil Penalties monetary penalties, or the minimum
■ i. Removing the clause date of ‘‘(OCT Inflation Adjustment Act Improvements
and maximum penalties, based on the
2015)’’ and adding ‘‘(JUN 2016)’’ in its Act of 2015,’’ which further amended
year the penalty was established or last
place; and the ‘‘Federal Civil Penalties Inflation
adjusted by statute or regulation other
■ ii. In paragraph (a), in the definition Adjustment Act of 1990,’’ federal
than under the Inflation Adjustment Act
of ‘‘designated country’’ in paragraph agencies are required to adjust their
(Base Year). For the catch-up
(i), adding, in alphabetical order, the civil monetary penalties effective
August 1, 2016, and then annually adjustment, the agency must use the
country of ‘‘Ukraine’’.
thereafter, to account for changes in multiplier, based on the Consumer Price
252.225–7045 [Amended] inflation. Index for October 2015, provided in the
■ 4. Amend section 252.225–7045 by— PHMSA finds good cause to amend table of OMB Memorandum M–16–06
■ a. Removing the basic clause date of the regulation related to civil penalties and multiply it by the current maximum
‘‘(OCT 2015)’’ and adding ‘‘(JUN 2016)’’ without notice and opportunity for penalty amount. After making an
in its place; public comment. For the reasons adjustment, all penalty levels must be
■ b. In paragraph (a), in the definition of described below, advance public notice rounded to the nearest dollar, but no
‘‘designated country’’ in paragraph (i), is unnecessary. penalty level may be increased by more
adding, in alphabetical order, the DATES: The effective date of this interim
than 150 percent of corresponding
country of ‘‘Ukraine’’; final rule is August 1, 2016. penalty levels in effect on November 2,
■ c. In the Alternate I clause— 2015.
FOR FURTHER INFORMATION CONTACT:
■ i. Removing the clause date of ‘‘(OCT PHMSA is revising the maximum
Aaron Glaser, Attorney-Advisor,
2015)’’ and adding ‘‘(JUN 2016)’’ in its civil penalty amounts in its regulations,
Pipeline Safety Division, Office of Chief
place; and consistent with the process outlined in
■ ii. In paragraph (a), in the definition
Counsel, Pipeline and Hazardous
Materials Safety Administration, by OMB Memorandum M–16–06. The
of ‘‘designated country’’ in paragraph ‘‘Pipeline Safety, Regulatory Certainty,
(i), adding, in alphabetical order, the telephone at 202–366–6318 or by email
at aaron.glaser@dot.gov; Melanie and Job Creation Act of 2011’’ (the 2011
country of ‘‘Ukraine’’;
Stevens, Attorney-Advisor, Pipeline Act) (Public Law No: 112–90) adjusted
■ d. In the Alternate II clause—
■ i. Removing the clause date of ‘‘(OCT Safety Division, Office of Chief Counsel, the maximum civil penalties for
2015)’’ and adding ‘‘(JUN 2016)’’ in its Pipeline and Hazardous Materials Safety violations under 49 U.S.C. 60101, et seq.
place; and Administration, by telephone at 202– In 2013, PHMSA amended 49 Code of
■ ii. In paragraph (a), in the definition 366–5466 or by email at Federal Regulations (CFR) § 190.223(a)
of ‘‘designated country’’ in paragraph melanie.stevens@dot.gov. to conform to the 2011 Act, effective
(i), adding, in alphabetical order, the SUPPLEMENTARY INFORMATION: January 2, 2012. (78 FR 58897). Based
country of ‘‘Ukraine’’; and on the 2012 effective date, a multiplier
I. Procedures 1.02819 was used to calculate the
■ e. In the Alternate III clause—
■ i. Removing the clause date of ‘‘(OCT Background updated penalties for violations under
2015)’’ and adding ‘‘(JUN 2016)’’ in its 49 U.S.C. 60101, et seq., and any
Section 701 of the ‘‘Federal Civil
place; and regulation or order issued thereunder.
Penalties Inflation Adjustment Act
■ ii. In paragraph (a), in the definition The civil penalty amounts for violations
Improvements Act of 2015’’ (Pub. L.
of ‘‘designated country’’ in paragraph 114–72) (the 2015 Act) amended the of 49 U.S.C. 60103 and 60111 were last
(i), adding, in alphabetical order, the ‘‘Federal Civil Penalties Inflation set by Congress in 1994 with the
country of ‘‘Ukraine’’. Adjustment Act of 1990’’ (Pub. L. 101– Revision of Title 49, United States Code
[FR Doc. 2016–15258 Filed 6–29–16; 8:45 am] 410) (Inflation Adjustment Act) to Annotated, Transportation (Pub. L. 103–
BILLING CODE 5001–06–P require that federal agencies adjust their 272), and last adjusted by PHMSA in
civil penalties with an initial ‘‘catch- 1996 via regulation amending 49 CFR
up’’ adjustment through an interim final 190.223(c) (61 FR 18515). The 1996
DEPARTMENT OF TRANSPORTATION rulemaking by July 1, 2016, as well as multiplier of 1.50245 was used to
make subsequent annual adjustments calculate the updated penalties for
Pipeline and Hazardous Materials for inflation. This interim rule adjusts violations of 49 U.S.C. 60103 and 60111.
Safety Administration the maximum civil penalties assessed Lastly, the penalty amount for violations
under 49 U.S.C. 60101, et seq., or of 49 U.S.C. 60129 was last set by
49 CFR Part 190 regulations or orders issued thereunder. Congress in 2002 with the passage of the
[Docket No. PHMSA–2016–0010] These adjusted penalties will apply to ‘‘Pipeline Safety Improvement Act of
violations occurring on or after the 2002,’’ (Pub. L. 107–355), and last
RIN–2137–AF16 effective date of August 1, 2016. adjusted by PHMSA in 2005 via
srobinson on DSK5SPTVN1PROD with RULES

On February 24, 2016, the Office of regulation amending 49 CFR 190.223(d)
Pipeline Safety: Inflation Adjustment of
Management and Budget (OMB) issued (70 FR 11137). The 2005 multiplier of
Maximum Civil Penalties
a ‘‘Memorandum for the Heads of 1.19397 was used to calculate the
AGENCY: Pipeline and Hazardous Executive Departments and Agencies, updated penalties for violations of 49
Materials Safety Administration Implementation of the Federal Civil U.S.C. 60129. These revised penalties
(PHMSA), DOT. Penalties Inflation Adjustment Act are shown as follows:

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Document Created: 2018-02-08 07:45:24
Document Modified: 2018-02-08 07:45:24

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		Effective June 30, 2016.
Contact		Mr. Christopher Stiller, telephone 571-372-6176.
FR Citation		81 FR 42563
RIN Number		0750-AI98

81 FR 42563 - Defense Federal Acquisition Regulation Supplement: New Designated Country-Ukraine (DFARS Case 2016-D026)

DEPARTMENT OF DEFENSEDefense Acquisition Regulations System

Federal Register Volume 81, Issue 126 (June 30, 2016)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System