81 FR 93840 - Defense Federal Acquisition Regulation Supplement: New Qualifying Country-Estonia (DFARS Case 2017-D001)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 81, Issue 246 (December 22, 2016)

Page Range		93840-93841
FR Document		2016-30598

DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to add Estonia as a qualifying country.

Federal Register, Volume 81 Issue 246 (Thursday, December 22, 2016)

[Federal Register Volume 81, Number 246 (Thursday, December 22, 2016)]
[Rules and Regulations]
[Pages 93840-93841]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-30598]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 225 and 252

[Docket DARS-2016-0048]
RIN 0750-AJ18


Defense Federal Acquisition Regulation Supplement: New Qualifying 
Country--Estonia (DFARS Case 2017-D001)

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

ACTION: Final rule.

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

SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to add Estonia as a 
qualifying country.

DATES: Effective December 22, 2016.

FOR FURTHER INFORMATION CONTACT: Ms. Lorena Malcolm, telephone 571-372-
6176.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD is amending the DFARS to add Estonia as a qualifying country. 
On September 23, 2016, the Secretary of Defense signed a reciprocal 
defense procurement agreement with Estonia. The agreement removes 
discriminatory barriers to procurements of supplies and services 
produced by industrial enterprises of the other country to the extent 
mutually beneficial and consistent with national laws, regulations, 
policies, and international obligations. This agreement does not cover 
construction or construction material. Estonia is already a designated 
country under the World Trade Organization Government Procurement 
Agreement.

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 qualifying countries in the 
DFARS by adding the newly qualifying country of Estonia. The definition 
of ``qualifying 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-
7001, Buy American and Balance of Payments Program; DFARS 252.225-7002, 
Qualifying Country Sources as Subcontractors; DFARS 252.225-7012, 
Preference for Certain Domestic Commodities; DFARS 252.225-7017, 
Photovoltaic Devices; DFARS 252.225-7021, Trade Agreements; and DFARS 
252.225-7036, Buy American--Trade Agreements--Balance of Payments 
Program.

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 does not constitute a significant DFARS revision within the 
meaning of FAR 1.501-1 and does not have a significant cost or 
administrative impact on contractors or offerors. Estonia is added to 
the list of 25 other countries that have similar reciprocal defense 
procurement agreements with DoD. 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

    The Paperwork Reduction Act (44 U.S.C. chapter 35) does apply to 
this rule; however, these changes to the DFARS do not impose additional 
information collection requirements to the paperwork burden previously 
approved under OMB Control Number 0704-0229, entitled ``DFARS Part 225, 
Foreign Acquisition and related clauses.'' This rule merely shifts the 
category under which items from Estonia must be listed.

List of Subjects in 48 CFR Parts 225 and 252

    Government procurement.

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

0
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 48 CFR chapter 1.

PART 225--FOREIGN ACQUISITION


225.003   [Amended]

0
2. Section 225.003 is amended in paragraph (10), the definition of 
``Qualifying country'', by adding, in alphabetical order, the country 
of ``Estonia''.


225.872-1   [Amended]

0
3. Section 225.872-1 is amended in paragraph (a) by adding, in 
alphabetical order, the country of ``Estonia''.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.225-7001   [Amended]

0
4. Section 252.225-7001 is amended by--
0
a. In the clause heading, removing the date ``(AUG 2016)'' and adding 
``(DEC 2016)'' in its place;
0
b. In paragraph (a), the definition of ``Qualifying country'', adding, 
in alphabetical order, the country of ``Estonia''; and

[[Page 93841]]

0
c. In the Alternate I clause--
0
i. In the clause heading, removing the date ``(AUG 2016)'' and adding 
``(DEC 2016)'' in its place; and
0
ii. In paragraph (a), the definition of ``Qualifying country'', adding, 
in alphabetical order, the country of ``Estonia''.


252.225-7002   [Amended]

0
5. Section 252.225-7002 is amended by--
0
a. In the clause heading, removing the date ``(AUG 2016)'' and adding 
``(DEC 2016)'' in its place; and
0
b. In paragraph (a), the definition of ``Qualifying country'', adding, 
in alphabetical order, the country of ``Estonia''.


252.225-7012   [Amended]

0
6. Section 252.225-7012 is amended by--
0
a. In the clause heading, removing the date ``(JUL 2016)'' and adding 
``(DEC 2016)'' in its place; and
0
b. In paragraph (a), the definition of ``Qualifying country'', adding, 
in alphabetical order, the country of ``Estonia''.


252.225-7017   [Amended]

0
7. Section 252.225-7017 is amended by--
0
a. In the clause heading, removing the date ``(SEP 2016)'' and adding 
``(DEC 2016)'' in its place; and
0
b. In paragraph (a), the definition of ``Qualifying country'', adding, 
in alphabetical order, the country of ``Estonia''.


252.225-7021   [Amended]

0
8. Section 252.225-7021 is amended by--
0
a. In the clause heading, removing the date ``(SEP 2016)'' and adding 
``(DEC 2016)'' in its place;
0
b. In paragraph (a), the definition of ``Qualifying country'', adding, 
in alphabetical order, the country of ``Estonia''; and
0
c. In the Alternate II clause--
0
i. In the clause heading, removing the date of ``(SEP 2016)'' and 
adding ``(DEC 2016)'' in its place; and
0
ii. In paragraph (a), the definition of ``Qualifying country'', adding, 
in alphabetical order, the country of ``Estonia''.


252.225-7036   [Amended]

0
9. Section 252.225-7036 is amended by--
0
a. In the clause heading, removing the date ``(AUG 2016)'' and adding 
``(DEC 2016)'' in its place;
0
b. In paragraph (a), the definition of ``Qualifying country'', adding, 
in alphabetical order, the country of ``Estonia'';
0
c. In the Alternate I clause--
0
i. In the clause heading, removing the date ``(AUG 2016)'' and adding 
``(DEC 2016)'' in its place; and
0
ii. In paragraph (a), the definition of ``Qualifying country'', adding, 
in alphabetical order, the country of ``Estonia'';
0
d. In the Alternate II clause--
0
i. In the clause heading, removing the date ``(AUG 2016)'' and adding 
``(DEC 2016)'' in its place; and
0
ii. In paragraph (a), the definition of ``Qualifying country'', adding, 
in alphabetical order, the country of ``Estonia'';
0
e. In the Alternate III clause--
0
i. In the clause heading, removing the date ``(AUG 2016)'' and adding 
``(DEC 2016)'' in its place; and
0
ii. In paragraph (a), the definition of ``Qualifying country'', adding, 
in alphabetical order, the country of ``Estonia'';
0
f. In the Alternate IV clause--
0
i. In the clause heading, removing the date ``(AUG 2016)'' and adding 
``(DEC 2016)'' in its place; and
0
ii. In paragraph (a), the definition of ``Qualifying country'', adding, 
in alphabetical order, the country of ``Estonia''; and
0
g. In the Alternate V clause--
0
i. In the clause heading, removing the date ``(AUG 2016)'' and adding 
``(DEC 2016)'' in its place; and
0
ii. In paragraph (a), the definition of ``Qualifying country'', adding, 
in alphabetical order, the country of ``Estonia''.

[FR Doc. 2016-30598 Filed 12-21-16; 8:45 am]
BILLING CODE 5001-06-P

93840 Federal Register / Vol. 81, No. 246 / Thursday, December 22, 2016 / Rules and Regulations

By the Commission. following clauses; however, this Review, dated September 30, 1993. This
Rachel E. Dickon, revision does not impact the clause rule is not a major rule under 5 U.S.C.
Assistant Secretary. prescriptions for use, or applicability at 804.
[FR Doc. 2016–30745 Filed 12–21–16; 8:45 am] or below the simplified acquisition
V. Regulatory Flexibility Act
BILLING CODE 6731–AA–P
threshold, or applicability to
commercial items. The clauses are: The Regulatory Flexibility Act does
DFARS 252.225–7001, Buy American not apply to this rule because this final
and Balance of Payments Program; rule does not constitute a significant
DEPARTMENT OF DEFENSE DFARS revision within the meaning of
DFARS 252.225–7002, Qualifying
Defense Acquisition Regulations Country Sources as Subcontractors; FAR 1.501–1, and 41 U.S.C. 1707 does
System DFARS 252.225–7012, Preference for not require publication for public
Certain Domestic Commodities; DFARS comment.
48 CFR Parts 225 and 252 252.225–7017, Photovoltaic Devices;
VI. Paperwork Reduction Act
DFARS 252.225–7021, Trade
[Docket DARS–2016–0048] Agreements; and DFARS 252.225–7036, The Paperwork Reduction Act (44
Buy American—Trade Agreements— U.S.C. chapter 35) does apply to this
RIN 0750–AJ18
Balance of Payments Program. rule; however, these changes to the
Defense Federal Acquisition DFARS do not impose additional
III. Publication of This Final Rule for information collection requirements to
Regulation Supplement: New Public Comment Is Not Required by
Qualifying Country—Estonia (DFARS the paperwork burden previously
Statute approved under OMB Control Number
Case 2017–D001)
The statute that applies to the 0704–0229, entitled ‘‘DFARS Part 225,
AGENCY: Defense Acquisition publication of the Federal Acquisition Foreign Acquisition and related
Regulations System, Department of Regulation (FAR) is 41 U.S.C. 1707 clauses.’’ This rule merely shifts the
Defense (DoD). entitled ‘‘Publication of Proposed category under which items from
ACTION: Final rule. Regulations.’’ Paragraph (a)(1) of the Estonia must be listed.
statute requires that a procurement
SUMMARY: DoD is issuing a final rule policy, regulation, procedure or form List of Subjects in 48 CFR Parts 225 and
amending the Defense Federal (including an amendment or 252
Acquisition Regulation Supplement modification thereof) must be published Government procurement.
(DFARS) to add Estonia as a qualifying for public comment if it relates to the
Jennifer L. Hawes,
country. expenditure of appropriated funds, and
has either a significant effect beyond the Editor, Defense Acquisition Regulations
DATES: Effective December 22, 2016. System.
internal operating procedures of the
FOR FURTHER INFORMATION CONTACT: Ms. ■ Therefore, 48 CFR parts 225 and 252
agency issuing the policy, regulation,
Lorena Malcolm, telephone 571–372– are amended as follows:
procedure or form, or has a significant
6176. ■ 1. The authority citation for 48 CFR
cost or administrative impact on
SUPPLEMENTARY INFORMATION: contractors or offerors. This final rule is parts 225 and 252 continues to read as
not required to be published for public follows:
I. Background
comment, because it does not constitute Authority: 41 U.S.C. 1303 and 48 CFR
DoD is amending the DFARS to add a significant DFARS revision within the chapter 1.
Estonia as a qualifying country. On meaning of FAR 1.501–1 and does not
September 23, 2016, the Secretary of have a significant cost or administrative PART 225—FOREIGN ACQUISITION
Defense signed a reciprocal defense impact on contractors or offerors.
225.003 [Amended]
procurement agreement with Estonia. Estonia is added to the list of 25 other
The agreement removes discriminatory countries that have similar reciprocal ■ 2. Section 225.003 is amended in
barriers to procurements of supplies and defense procurement agreements with paragraph (10), the definition of
services produced by industrial DoD. These requirements affect only the ‘‘Qualifying country’’, by adding, in
enterprises of the other country to the internal operating procedures of the alphabetical order, the country of
extent mutually beneficial and Government. ‘‘Estonia’’.
consistent with national laws, 225.872–1 [Amended]
regulations, policies, and international IV. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and ■ 3. Section 225.872–1 is amended in
obligations. This agreement does not
13563 direct agencies to assess all costs paragraph (a) by adding, in alphabetical
cover construction or construction
and benefits of available regulatory order, the country of ‘‘Estonia’’.
material. Estonia is already a designated
country under the World Trade alternatives and, if regulation is PART 252—SOLICITATION
Organization Government Procurement necessary, to select regulatory PROVISIONS AND CONTRACT
Agreement. approaches that maximize net benefits CLAUSES
(including potential economic,
II. Applicability to Contracts at or environmental, public health and safety 252.225–7001 [Amended]
Below the Simplified Acquisition effects, distributive impacts, and ■ 4. Section 252.225–7001 is amended
Threshold and for Commercial Items, equity). E.O. 13563 emphasizes the by—
Including Commercially Available Off- importance of quantifying both costs ■ a. In the clause heading, removing the
Lhorne on DSK30JT082PROD with RULES

the-Shelf Items and benefits, of reducing costs, of date ‘‘(AUG 2016)’’ and adding ‘‘(DEC
This rule only updates the list of harmonizing rules, and of promoting 2016)’’ in its place;
qualifying countries in the DFARS by flexibility. This is not a significant ■ b. In paragraph (a), the definition of
adding the newly qualifying country of regulatory action and, therefore, was not ‘‘Qualifying country’’, adding, in
Estonia. The definition of ‘‘qualifying subject to review under section 6(b) of alphabetical order, the country of
country’’ is updated in each of the E.O. 12866, Regulatory Planning and ‘‘Estonia’’; and

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Federal Register / Vol. 81, No. 246 / Thursday, December 22, 2016 / Rules and Regulations 93841

■ c. In the Alternate I clause— ■ c. In the Alternate I clause— contract financing, other than loan
■ i. In the clause heading, removing the ■ i. In the clause heading, removing the guarantees and advance payments
date ‘‘(AUG 2016)’’ and adding ‘‘(DEC date ‘‘(AUG 2016)’’ and adding ‘‘(DEC identified in FAR part 32, for certain
2016)’’ in its place; and 2016)’’ in its place; and fixed-price contracts.
■ ii. In paragraph (a), the definition of ■ ii. In paragraph (a), the definition of DATES: Effective December 22, 2016.
‘‘Qualifying country’’, adding, in ‘‘Qualifying country’’, adding, in FOR FURTHER INFORMATION CONTACT: Mr.
alphabetical order, the country of alphabetical order, the country of Mark Gomersall, telephone 571–372–
‘‘Estonia’’. ‘‘Estonia’’; 6099.
■ d. In the Alternate II clause—
252.225–7002 [Amended] SUPPLEMENTARY INFORMATION:
■ i. In the clause heading, removing the
■ 5. Section 252.225–7002 is amended
date ‘‘(AUG 2016)’’ and adding ‘‘(DEC I. Background
by—
■ a. In the clause heading, removing the
2016)’’ in its place; and
■ ii. In paragraph (a), the definition of
DoD published a proposed rule in the
date ‘‘(AUG 2016)’’ and adding ‘‘(DEC Federal Register at 81 FR 42607 on June
2016)’’ in its place; and ‘‘Qualifying country’’, adding, in
alphabetical order, the country of 30, 2016, to revise the DFARS regarding
■ b. In paragraph (a), the definition of the use of customary contract financing,
‘‘Qualifying country’’, adding, in ‘‘Estonia’’;
■ e. In the Alternate III clause—
other than loan guarantees and advance
alphabetical order, the country of payments identified in FAR part 32, on
‘‘Estonia’’. ■ i. In the clause heading, removing the
date ‘‘(AUG 2016)’’ and adding ‘‘(DEC fixed-price contracts with a period of
252.225–7012 [Amended] 2016)’’ in its place; and performance in excess of one year that
■ 6. Section 252.225–7012 is amended ■ ii. In paragraph (a), the definition of
meet the dollar thresholds established
by— ‘‘Qualifying country’’, adding, in in FAR 32.104(d). DoD has determined
■ a. In the clause heading, removing the alphabetical order, the country of that the use of such customary contract
date ‘‘(JUL 2016)’’ and adding ‘‘(DEC ‘‘Estonia’’; financing provides improved cash flow
2016)’’ in its place; and ■ f. In the Alternate IV clause—
as an incentive for commercial
■ b. In paragraph (a), the definition of ■ i. In the clause heading, removing the
companies to do business with DoD, is
‘‘Qualifying country’’, adding, in date ‘‘(AUG 2016)’’ and adding ‘‘(DEC in the Department’s best interest, and
alphabetical order, the country of 2016)’’ in its place; and requires no further justification of its
‘‘Estonia’’. ■ ii. In paragraph (a), the definition of
use.

252.225–7017 [Amended]
‘‘Qualifying country’’, adding, in II. Discussion and Analysis
alphabetical order, the country of No public comments were submitted
■ 7. Section 252.225–7017 is amended
‘‘Estonia’’; and in response to the proposed rule.
by—
■ g. In the Alternate V clause—
■ a. In the clause heading, removing the Therefore, there are no changes from the
■ i. In the clause heading, removing the
date ‘‘(SEP 2016)’’ and adding ‘‘(DEC proposed rule made in the final rule.
2016)’’ in its place; and date ‘‘(AUG 2016)’’ and adding ‘‘(DEC
■ b. In paragraph (a), the definition of
2016)’’ in its place; and III. Applicability to Contracts at or
‘‘Qualifying country’’, adding, in ■ ii. In paragraph (a), the definition of Below the Simplified Acquisition
alphabetical order, the country of ‘‘Qualifying country’’, adding, in Threshold and for Commercial Items,
‘‘Estonia’’. alphabetical order, the country of Including Commercially Available Off-
‘‘Estonia’’. the-Shelf Items
252.225–7021 [Amended] [FR Doc. 2016–30598 Filed 12–21–16; 8:45 am] This final rule only provides DoD
■ 8. Section 252.225–7021 is amended BILLING CODE 5001–06–P policy regarding providing contract
by— financing for certain fixed-priced
■ a. In the clause heading, removing the contracts. The rule does not add any
date ‘‘(SEP 2016)’’ and adding ‘‘(DEC DEPARTMENT OF DEFENSE new provisions or clauses or impact any
2016)’’ in its place; existing provisions or clauses.
■ b. In paragraph (a), the definition of Defense Acquisition Regulations
‘‘Qualifying country’’, adding, in System IV. Executive Orders 12866 and 13563
alphabetical order, the country of Executive Orders (E.O.s) 12866 and
‘‘Estonia’’; and 48 CFR Part 232 13563 direct agencies to assess all costs
■ c. In the Alternate II clause—
[Docket DARS–2016–0009] and benefits of available regulatory
■ i. In the clause heading, removing the
alternatives and, if regulation is
date of ‘‘(SEP 2016)’’ and adding ‘‘(DEC RIN 0750–AI90 necessary, to select regulatory
2016)’’ in its place; and
approaches that maximize net benefits
■ ii. In paragraph (a), the definition of Defense Federal Acquisition
(including potential economic,
‘‘Qualifying country’’, adding, in Regulation Supplement: Contract
environmental, public health and safety
alphabetical order, the country of Financing (DFARS Case 2015–D026)
effects, distributive impacts, and
‘‘Estonia’’.
AGENCY: Defense Acquisition equity). E.O. 13563 emphasizes the
252.225–7036 [Amended] Regulations System, Department of importance of quantifying both costs
■ 9. Section 252.225–7036 is amended Defense (DoD). and benefits, of reducing costs, of
by— ACTION: Final rule. harmonizing rules, and of promoting
■ a. In the clause heading, removing the flexibility. This is not a significant
Lhorne on DSK30JT082PROD with RULES

date ‘‘(AUG 2016)’’ and adding ‘‘(DEC SUMMARY: DoD is issuing a final rule regulatory action and, therefore, was not
2016)’’ in its place; amending the Defense Federal subject to review under section 6(b) of
■ b. In paragraph (a), the definition of Acquisition Regulation Supplement E.O. 12866, Regulatory Planning and
‘‘Qualifying country’’, adding, in (DFARS) by providing that contracting Review, dated September 30, 1993. This
alphabetical order, the country of officers are not required to further rule is not a major rule under 5 U.S.C.
‘‘Estonia’’; justify a decision to provide customary 804.

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Document Created: 2016-12-21 23:52:40
Document Modified: 2016-12-21 23:52:40

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 December 22, 2016.
Contact		Ms. Lorena Malcolm, telephone 571-372- 6176.
FR Citation		81 FR 93840
RIN Number		0750-AJ18
CFR Citation		48 CFR 225 48 CFR 252

81 FR 93840 - Defense Federal Acquisition Regulation Supplement: New Qualifying Country-Estonia (DFARS Case 2017-D001)

DEPARTMENT OF DEFENSEDefense Acquisition Regulations System

Federal Register Volume 81, Issue 246 (December 22, 2016)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System