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[Federal Register Volume 77, Number 19 (Monday, January 30, 2012)]
[Rules and Regulations]
[Pages 4630-4631]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-1487]

[[Page 4629]]

Vol. 77

Monday,

No. 19

January 30, 2012

Part II

Department of Defense

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 Defense Acquisitions Regulations System

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48 CFR Part 212, 225, 231, et al.

 Defense Federal Acquisition Regulation Supplements; Final Rules and 
Proposed Rules

Federal Register / Vol. 77 , No. 19 / Monday, January 30, 2012 / 
Rules and Regulations

[[Page 4630]]

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DEPARTMENT OF DEFENSE

Defense Acquisitions Regulations System

48 CFR Part 225

RIN 0750-AH50

Defense Federal Acquisition Regulation Supplement; Trade 
Agreements Thresholds (DFARS Case 2012-D005)

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 adjusted 
thresholds for application of the World Trade Organization Government 
Procurement Agreement and the Free Trade Agreements, as determined by 
the United States Trade Representative. Additionally, this rule 
includes language in prescriptions for use of contract clauses intended 
to clarify their applicability to commercial items.

DATES: Effective Date: January 30, 2012.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, (703) 602-0328.

SUPPLEMENTARY INFORMATION:

I. Background

    Every two years, the trade agreements thresholds are adjusted 
according to a pre-determined formula set forth in the agreements. The 
United States Trade Representative has specified the following new 
thresholds in the Federal Register (76 FR 76808 December 8, 2011):

------------------------------------------------------------------------
                                              Supply       Construction
                                             contract        contract
             Trade agreement               (equal to or    (equal to or
                                            exceeding)      exceeding)
------------------------------------------------------------------------
WTO GPA.................................        $202,000      $7,777,000
FTAs:
    Australia FTA.......................          77,494       7,777,000
    Bahrain FTA.........................         202,000      10,074,262
    CAFTA-DR (Costa Rica, Dominican               77,494       7,777,000
     Republic, El Salvador, Guatemala,
     Honduras, and Nicaragua)...........
    Chile FTA...........................          77,494       7,777,000
    Morocco FTA.........................         202,000       7,777,000
    NAFTA:
    --Canada............................          25,000      10,074,262
    --Mexico............................          77,494      10,074,262
    Peru FTA............................         202,000       7,777,000
    Singapore FTA.......................          77,494       7,777,000
------------------------------------------------------------------------

II. Discussion and Analysis

    This final rule implements the new thresholds in the clause 
prescriptions at DFARS 225.1101 and 225.7503.

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

    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 and does not require 
publication for public comment.

V. Paperwork Reduction Act

    The rule does not contain any information collection requirements 
that require the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Part 225

    Government procurement.

Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR part 225 is amended as follows:

PART 225--FOREIGN ACQUISITION

0
1. The authority citation for 48 CFR part 225 is revised to read as 
follows:

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

0
2. In section 225.1101, revise paragraph (11)(i) to read as follows:

225.1101  Acquisition of supplies.

* * * * *
    (11)(i) Except as provided in paragraph (11)(ii) of this section, 
use the clause at 252.225-7036, Buy American Act--Free Trade 
Agreements--Balance of Payments Program, instead of the clause at FAR 
52.225-3, Buy American Act--Free Trade Agreements--Israeli Trade Act, 
in solicitations and contracts for the items listed at 225.401-70, 
including acquisitions of commercial items or components, when the 
estimated value equals or exceeds $25,000, but is less than $202,000, 
and a Free Trade Agreement applies to the acquisition.
    (A) Use the basic clause when the estimated value equals or exceeds 
$77,494.
    (B) Use the clause with its Alternate I when the estimated value 
equals or exceeds $25,000 but is less than $77,494.
* * * * *

0
3. In section 225.7503, revise paragraphs (a)(1) and (b) to read as 
follows:

225.7503  Contract clauses.

* * * * *
    (a)(1) Use the clause at 252.225-7044, Balance of Payments 
Program--Construction Material, in solicitations and contracts for 
construction to be performed outside the United States, including 
acquisitions of commercial items or components, with a value

[[Page 4631]]

greater than the simplified acquisition threshold but less than 
$7,777,000.
* * * * *
    (b)(1) Use the clause at 252.225-7045, Balance of Payments 
Program--Construction Material Under Trade Agreements, in solicitations 
and contracts for construction to be performed outside the United 
States with a value of $7,777,000 or more, including acquisitions of 
commercial items or components.
    (2) For acquisitions with a value of $7,777,000 or more, but less 
than $10,074,262, including acquisitions of comercial items or 
components, use the clause with its Alternate I, unless the acquisition 
is in support of Afghanistan.
    (3) If the acquisition is for construction with a value of 
$10,074,262 or more and is in support of operations in Afghanistan, use 
the clause with its Alternate II.
    (4) If the acquisition is for construction with a value of 
$7,777,000 or more, but less than $10,074,262, and is in support of 
operations in Afghanistan, use the clause with its Alternate III.

[FR Doc. 2012-1487 Filed 1-27-12; 8:45 am]
BILLING CODE 5001-06-P
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