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[Federal Register Volume 77, Number 99 (Tuesday, May 22, 2012)]
[Rules and Regulations]
[Pages 30359-30361]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-11559]

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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 252

RIN 0750-AH72

Defense Federal Acquisition Regulation Supplement: New Free Trade 
Agreement With Colombia (DFARS Case 2012-D032)

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

ACTION: Interim rule.

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SUMMARY: DoD is issuing an interim rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to implement the United 
States--Colombia Trade Promotion

[[Page 30360]]

Agreement. This Trade Promotion Agreement is a free trade agreement 
that provides for mutually non-discriminatory treatment of eligible 
products and services from Columbia.

DATES: Effective date: May 22, 2012.
    Comment Date: Comments on the interim rule should be submitted in 
writing to the address shown below on or before July 23, 2012, to be 
considered in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2012-D032, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by entering ``DFARS Case 2012-D032'' 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 
2012-D032.'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``DFARS Case 2012-D032'' on your attached document.
    [cir] Email: dfars@osd.mil. Include DFARS Case 2012-D032 in the 
subject line of the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. Amy 
Williams, OUSD (AT&L) DPAP/DARS, Room 3B855, 3060 Defense Pentagon, 
Washington, DC 20301-3060.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To 
confirm receipt of your comment(s), please check www.regulations.gov 
approximately two to three days after submission to verify posting 
(except allow 30 days for posting of comments submitted by mail).

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, Defense Acquisition 
Regulations System, OUSD(AT&L)DPAP/DARS, Room 3B855, 3060 Defense 
Pentagon, Washington, DC 20301-3060. Telephone 571-372-6106.

SUPPLEMENTARY INFORMATION: 

I. Background

    This interim rule amends DFARS part 252 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 Federal 
Acquisition Regulation (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 DFARS. The Colombia 
FTA covers acquisition of supplies and services equal to or exceeding 
$77,494. The threshold for the Columbia FTA is $7,777,000 for 
construction.
    Because the Colombia FTA construction threshold of $7,777,000 is 
the same as the World Trade Organization Government Procurement 
Agreement threshold, no new clause alternates are required for the 
Balance of Payments Program--Construction Material under the Trade 
Agreements clause (DFARS 252.225-7045).
    There are also conforming changes to the clause at DFARS 252.212-
7001, Contract Terms and Conditions Required to Implement Statutes or 
Executive Orders Applicable to Defense Acquisitions of Commercial 
Items.

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 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.

IV. Regulatory Flexibility Act

    DoD does not expect this 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 
at or above the threshold of $77,494, DoD does 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 DFARS 225.401-70, and acquisitions that are set aside or 
provide other forms of preference for small businesses are exempt. FAR 
19.502-2 states that acquisitions that do not exceed $150,000 (with 
some exceptions) are automatically reserved exclusively for small 
business concerns. Therefore, DoD has not performed an Initial 
Regulatory Flexibility Analysis. DoD invites comments from small 
business concerns and other interested parties on the expected impact 
of this rule on small entities.
    DoD 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 (DFARS Case 2012-D032), in 
correspondence.

V. Paperwork Reduction Act

    This rule affects the certification and information collection 
requirements in the provisions at DFARS 252.225-7020 and 252.225-7035, 
currently approved under OMB Control Number 0704-0229, titled 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 it is just a question of under which category 
offered goods from Colombia would be listed.

VI. Determination To Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense that urgent and compelling reasons exist to promulgate this 
interim rule without prior opportunity for public comment. This action 
is necessary because the Free Trade Agreement with Colombia entered 
into force on May 15, 2012. This Trade Promotion Agreement 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 will consider public comments 
received in response to this interim rule in the formation of the final 
rule.

[[Page 30361]]

List of Subjects in 48 CFR Part 252

    Government procurement.

Ynette R. Shelkin,
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. Section 252.225-7017 is amended by--
0
a. In paragraph (a), in the definition of ``Designated country,'' 
paragraph (ii), by removing ``Australia, Bahrain, Canada, Chile, Costa 
Rica'' and adding ``Australia, Bahrain, Canada, Chile, Columbia, Costa 
Rica'' in its place; and
0
b. In paragraph (a) in the definition of ``Free Trade Agreement 
country'' removing ``Australia, Bahrain, Canada, Chile, Costa Rica'' 
and adding ``Australia, Bahrain, Canada, Chile, Columbia, Costa Rica'' 
in its place.

252.225-7021  [Amended]

0
3. Section 252.225-7021 is amended in paragraph (a), in the definition 
of ``Designated country,'' paragraph (ii), by removing ``Australia, 
Bahrain, Canada, Chile, Costa Rica'' and adding ``Australia, Bahrain, 
Canada, Chile, Columbia, Costa Rica'' in its place.

252.225-7045  [Amended]

0
4. Section 252.225-7045 is amended in paragraph (a), in the definition 
of ``Designated country,'' paragraph (2), by removing ``Australia, 
Bahrain, Canada, Chile, Costa Rica'' and adding ``Australia, Bahrain, 
Canada, Chile, Columbia, Costa Rica'' in its place.

[FR Doc. 2012-11559 Filed 5-21-12; 8:45 am]
BILLING CODE 5001-06-P
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