Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Rules and Regulations 40461 

this clause therefore provide some 

mechanism for dealing with the 

potential required price adjustment. The 

Councils have been advised that use of 

these clauses for time-and-materials and 

labor-hour service contracts is already 

widespread. Uniform use of the 

appropriate clause will ensure 

consistency in the adjustment method 

for any required increase in wage rate, 

but should not have a significant cost 

impact. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the changes to the 

FAR do not impose information 

collection requirements that require the 

approval of the Office of Management 

and Budget under 44 U.S.C. Chapter 35, 

et seq. 

List of Subjects in 48 CFR Parts 22 and 

52 

Government procurement. 

Dated: August 4, 2009. 

Al Matera, 

Director, Office of Acquisition Policy. 

■ Therefore, DoD, GSA, and NASA 

amend 48 CFR parts 22 and 52 as set 

forth below: 

■ 1. The authority citation for 48 CFR 

parts 22 and 52 continues to read as 

follows: 

Authority: 40 U.S.C. 121(c); 10 U.S.C. 

chapter 137; and 42 U.S.C. 2473(c). 

PART 22—APPLICATION OF LABOR 

LAWS TO GOVERNMENT 

ACQUISITIONS 

22.1006 [Amended] 

■ 2. Amend section 22.1006 by 

removing from paragraphs (c)(1) and 

(c)(2) ‘‘fixed-price’’ and adding ‘‘fixedprice, time-and-materials, or laborhour’’ in its place. 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

52.212–5 [Amended] 

■ 3. Amend section 52.212–5 by 

removing from the date of the clause 

‘‘(June 2009)’’ and adding ‘‘(Sep 2009)’’ 

in its place; by removing from paragraph 

(c)(3) ‘‘(Nov 2006)’’ and adding ‘‘(Sep 

2009)’’ in its place; and by removing 

from paragraph (c)(4) ‘‘(Feb 2002)’’ and 

adding ‘‘(Sep 2009)’’ in its place. 

■ 4. Amend section 52.222–43 by 

revising the date of the clause, 

introductory text in paragraph (d), and 

the third and fourth sentences of 

paragraph (f) to read as follows: 

52.222–43 Fair Labor Standards Act and 

Service Contract Act—Price Adjustment 

(Multiple Year and Option Contracts). 

* * * * * 

FAIR LABOR STANDARDS ACT AND 

SERVICE CONTRACT ACT—PRICE 

ADJUSTMENT (MULTIPLE YEAR AND 

OPTION CONTRACTS) (Sep 2009) 

* * * * * 

(d) The contract price, contract unit 

price labor rates, or fixed hourly labor 

rates will be adjusted to reflect the 

Contractor’s actual increase or decrease 

in applicable wages and fringe benefits 

to the extent that the increase is made 

to comply with or the decrease is 

voluntarily made by the Contractor as a 

result of: 

* * * * * 

(f) * * * The notice shall contain a 

statement of the amount claimed and 

the change in fixed hourly rates (if this 

is a time-and-materials or labor-hour 

contract), and any relevant supporting 

data, including payroll records, that the 

Contracting Officer may reasonably 

require. Upon agreement of the parties, 

the contract price, contract unit price 

labor rates, or fixed hourly rates shall be 

modified in writing. * * * 

* * * * * 

■ 5. Amend section 52.222–44 by 

revising the date of the clause, 

introductory text of paragraph (c), and 

the third and fourth sentences of 

paragraph (e) to read as follows: 

52.222–44 Fair Labor Standards Act and 

Service Contract Act—Price Adjustment. 

* * * * * 

FAIR LABOR STANDARDS ACT AND 

SERVICE CONTRACT ACT—PRICE 

ADJUSTMENT (Sep 2009) 

* * * * * 

(c) The contract price, contract unit 

price labor rates, or fixed hourly labor 

rates will be adjusted to reflect increases 

or decreases by the Contractor in wages 

and fringe benefits to the extent that 

these increases or decreases are made to 

comply with— 

* * * * * 

(e) * * * The notice shall contain a 

statement of the amount and the change 

in fixed hourly rates (if this is a timeand-materials or labor-hour contract) 

claimed and any relevant supporting 

data that the Contracting Officer may 

reasonably require. Upon agreement of 

the parties, the contract price, contract 

unit price labor rates, or fixed hourly 

rates shall be modified in writing. * * 

* 

* * * * * 

[FR Doc. E9–19163 Filed 8–10–09; 8:45 am] 

BILLING CODE 6820–EP–S 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 22, 25, and 52 

[FAC 2005–36; FAR Case 2009–014; Item 

III; Docket 2009–0027, Sequence 1] 

RIN 9000–AL34 

Federal Acquisition Regulation; FAR 

Case 2009–014, New Designated 

Country—Taiwan 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Interim rule with request for 

comments. 

SUMMARY: The Civilian Agency 

Acquisition Council and the Defense 

Acquisition Regulations Council 

(Councils) have agreed on an interim 

rule amending the Federal Acquisition 

Regulation (FAR) to add Taiwan (known 

in the World Trade Organization as ‘‘the 

Separate Customs Territory of Taiwan, 

Penghu, Kinmen and Matsu (Chinese 

Taipei))’’ as a designated country, due to 

the accession of Taiwan to membership 

in the World Trade Organization 

Agreement on Government 

Procurement. 

DATES: Effective Date: August 11, 2009. 

Comment Date: Interested parties 

should submit written comments to the 

Regulatory Secretariat on or before 

October 13, 2009 to be considered in the 

formulation of a final rule. 

ADDRESSES: Submit comments 

identified by FAC 2005–36, FAR case 

2009–014, by any of the following 

methods: 

•Regulations.gov: http:// 

www.regulations.gov. 

Submit comments via the Federal 

eRulemaking portal by inputting ‘‘FAR 

Case 2009–014’’ under the heading 

‘‘Comment or Submission’’. Select the 

link ‘‘Send a Comment or Submission’’ 

that corresponds with FAR Case 2009– 

014. Follow the instructions provided to 

complete the ‘‘Public Comment and 

Submission Form’’. Please include your 

name, company name (if any), and 

‘‘FAR Case 2009–014’’ on your attached 

document. 

• Fax: 202–501–4067. 

• Mail: General Services 

Administration, Regulatory Secretariat 

(VPR), 1800 F Street, NW, Room 4041, 

ATTN: Hada Flowers, Washington, DC 

20405. 


srobinson on DSKHWCL6B1PROD with RULES5
40462 Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Rules and Regulations 

Instructions: Please submit comments 

only and cite FAC 2005–36, FAR case 

2009–014, in all correspondence related 

to this case. All comments received will 

be posted without change to http:// 

www.regulations.gov, including any 

personal and/or business confidential 

information provided. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Ms. 

Meredith Murphy, Procurement 

Analyst, at (202) 208–6925. For 

information pertaining to status or 

publication schedules, contact the FAR 

Secretariat at (202) 501–4755. Please 

cite FAR Case 2009–014. 

SUPPLEMENTARY INFORMATION: 

A. Background 

On July 15, 2009, Taiwan became a 

designated country based on its 

accession to the World Trade 

Organization Agreement on Government 

Procurement. This interim rule adds 

Taiwan to the list of World Trade 

Organization Government Procurement 

Agreement countries in FAR 22.1503, 

25.003, 52.222–19, 52.225–5, 52.225–11, 

and 52.225–23. 

This is a significant regulatory action 

and, therefore, was subject to review 

under Section 6(b) of Executive Order 

12866, Regulatory Planning and Review, 

dated September 30, 1993. This rule is 

not a major rule under 5 U.S.C. 804. 

B. Regulatory Flexibility Act 

The interim rule is not expected 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 opens up Government 

procurement to the goods and services 

of Taiwan, the Councils do 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 Defense Federal 

Acquisition Regulation Supplement 

(DFARS) 225.401–70, and acquisitions 

that are set aside for small businesses 

are exempt. Therefore, an Initial 

Regulatory Flexibility Analysis has not 

been performed. The Councils will 

consider comments from small entities 

concerning the affected FAR Parts 22, 

25, and 52 in accordance with 5 U.S.C. 

610. Interested parties must submit such 

comments separately and should cite 5 

U.S.C 601, et seq. (FAC 2005–36, FAR 

case 2009–014), in all correspondence. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

apply; however, these changes to the 

FAR do not impose additional 

information collection requirements to 

the paperwork burden previously 

approved under OMB Control Number 

9000–0141, Buy American Act— 

Construction. The interim rule affects 

the certification and information 

collection requirement in the clause at 

FAR 52.225–11. The impact, however, is 

negligible. 

D. Determination to Issue an Interim 

Rule 

A determination has been made under 

the authority of the Secretary of Defense 

(DoD), the Administrator of General 

Services (GSA), and the Administrator 

of the National Aeronautics and Space 

Administration (NASA) that urgent and 

compelling reasons exist to promulgate 

this interim rule without prior 

opportunity for public comment. This 

action is necessary because this interim 

rule implements the designation of 

Taiwan under the World Trade 

Organization Agreement on Government 

Procurement, which took effect on July 

15, 2009. However, pursuant to Pub. L. 

98–577 and FAR 1.501, the Councils 

will consider public comments received 

in response to this interim rule in the 

formation of the final rule. 

List of Subjects in 48 CFR Parts 22, 25, 

and 52 

Government procurement. 

Dated: August 4, 2009. 

Al Matera, 

Director, Office of Acquisition Policy. 

■ Therefore, DoD, GSA, and NASA 

amend 48 CFR parts 22, 25, and 52 as 

set forth below: 

■ 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 42 U.S.C. 2473(c). 

PART 22—APPLICATION OF LABOR 

LAWS TO GOVERNMENT 

ACQUISITIONS 

22.1503 [Amended] 

■ 2. Amend section 22.1503 in 

paragraph (b)(4) by removing 

‘‘Switzerland,’’ and adding 

‘‘Switzerland, Taiwan,’’ in its place. 

PART 25—FOREIGN ACQUISITIONS 

■ 3. Amend section 25.003 by— 

■ a. Revising paragraph (1) in the 

definition ‘‘Designated country’’ ; and 

■ b. Removing from the definition 

‘‘World Trade Organization Government 

Procurement Agreement (WTO GPA) 

country’’ the words ‘‘Switzerland,’’ and 

adding ‘‘Switzerland, Taiwan,’’ in its 

place. 

■ The revised text reads as follows: 

25.003 Definitions. 

* * * * * 

Designated country * * * 

(1)A World Trade Organization 

Government Procurement Agreement 

country (Aruba, Austria, Belgium, 

Bulgaria, Canada, Cyprus, Czech 

Republic, Denmark, Estonia, Finland, 

France, Germany, Greece, Hong Kong, 

Hungary, Iceland, Ireland, Israel, Italy, 

Japan, Korea (Republic of), Latvia, 

Liechtenstein, Lithuania, Luxembourg, 

Malta, Netherlands, Norway, Poland, 

Portugal, Romania, Singapore, Slovak 

Republic, Slovenia, Spain, Sweden, 

Switzerland, Taiwan (known in the 

World Trade Organization as ‘‘the 

Separate Customs Territory of Taiwan, 

Penghu, Kinmen and Matsu’’ (Chinese 

Taipei)) or United Kingdom); 

* * * * * 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

■ 4. Amend section 52.212–5 by 

revising the date of the clause, and 

paragraphs (b)(20) and (b)(33) 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 (Aug 09) 

* * * * * 

(b) * * * 

ll (20) 52.222–19, Child Labor— 

Cooperation with Authorities and 

Remedies (Aug 09) (E.O. 13126). 

* * * * * 

ll (33) 52.225–5, Trade Agreements 

(Aug 09) (19 U.S.C. 2501, et seq., 19 

U.S.C. 3301 note). 

* * * * * 

■ 5. Amend section 52.213–4 by 

revising the date of the clause, and 

paragraph (b)(1)(i) 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)(Aug 09) 

* * * * * 

(b) * * * 

(1) * * * 

(i) 52.222–19, Child Labor— 

Cooperation with Authorities and 

Remedies (Aug 09) (E.O. 13126). 

(Applies to contracts for supplies 

exceeding the micro-purchase 

threshold.) 

* * * * * 


srobinson on DSKHWCL6B1PROD with RULES5
Federal Register / Vol. 74, No. 153 / Tuesday, August 11, 2009 / Rules and Regulations 40463 

52.222–19 [Amended] 

■ 6. Amend section 52.222–19 by 

removing from the clause heading ‘‘(Feb 

2008)’’ and adding ‘‘(Aug 09)’’ in its 

place; and removing from paragraph 

(a)(4) ‘‘Switzerland,’’ and adding 

‘‘Switzerland, Taiwan,’’ in its place. 

■ 7. Amend section 52.225–5 by 

revising the date of the clause; and in 

paragraph (a), in the definition 

‘‘Designated Country’’, revising 

paragraph (1) to read as follows: 

52.225–5 Trade Agreements. 

* * * * * 

TRADE AGREEMENTS (Aug 09) 

(a) Definitions. * * * 

Designated country * * * 

(1) A World Trade Organization 

Government Procurement Agreement 

country (Aruba, Austria, Belgium, 

Bulgaria, Canada, Cyprus, Czech 

Republic, Denmark, Estonia, Finland, 

France, Germany, Greece, Hong Kong, 

Hungary, Iceland, Ireland, Israel, Italy, 

Japan, Korea (Republic of), Latvia, 

Liechtenstein, Lithuania, Luxembourg, 

Malta, Netherlands, Norway, Poland, 

Portugal, Romania, Singapore, Slovak 

Republic, Slovenia, Spain, Sweden, 

Switzerland, Taiwan (known in the 

World Trade Organization as ‘‘the 

Separate Customs Territory of Taiwan, 

Penghu, Kinmen and Matsu (Chinese 

Taipei))’’, or United Kingdom); 

* * * * * 

52.225–11 [Amended] 

■ 8. Amend section 52.225–11 by 

removing from the clause heading 

‘‘(June 2009)’’ and adding ‘‘(Aug 09)’’ in 

its place; and in paragraph (a), in the 

definition ‘‘Designated country’’, 

removing from paragraph (1) 

‘‘Switzerland,’’ and adding 

‘‘Switzerland, Taiwan,’’ in its place. 

52.225–23 [Amended] 

■ 9. Amend section 52.225–23 by 

removing from the clause heading ‘‘(Mar 

2009)’’ and adding ‘‘(Aug 09)’’ in its 

place; and in paragraph (a), in the 

definition ‘‘Recovery Act designated 

country’’, removing from paragraph (1) 

‘‘Switzerland,’’ and adding 

‘‘Switzerland, Taiwan,’’ in its place. 

[FR Doc. E9–19164 Filed 8–10–09; 8:45 am] 

BILLING CODE 6820–EP–S 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 4, 15, 25, and 52 

[FAC 2005–36; FAR Case 2008–004; Item 

IV; Docket 2008–0001; Sequence 21] 

RIN 9000–AL01 

Federal Acquisition Regulation; FAR 

Case 2008–004, Prohibition on 

Restricted Business Operations in 

Sudan and Imports from Burma 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: The Civilian Agency 

Acquisition Council and the Defense 

Acquisition Regulations Council 

(Councils) have agreed on a final rule 

amending the Federal Acquisition 

Regulation (FAR) to implement Section 

6 of the Sudan Accountability and 

Divestment Act of 2007. Section 6 

requires certification in each contract 

entered into by an Executive Agency 

that the contractor does not conduct 

certain business operations in Sudan. In 

addition, the Councils added Burma to 

the list of countries from which most 

imports are prohibited. This action was 

taken in accordance with Executive 

Order (E.O.) 13310, Blocking Property of 

the Government of Burma and 

Prohibiting Certain Transactions, and 

E.O. 13448, Blocking the Property and 

Prohibiting Certain Transactions Related 

to Burma. 

DATES: Effective Date: August 11, 2009. 

FOR FURTHER INFORMATION CONTACT: For 

clarification of content, contact Ms. 

Meredith Murphy, Procurement 

Analyst, at (202) 208–6925. For 

information pertaining to status or 

publication schedules, contact the 

Regulatory Secretariat at (202) 501– 

4755. Please cite FAC 2005–36, FAR 

case 2008–004. 

SUPPLEMENTARY INFORMATION: 

A. Background 

This final rule amends the Federal 

Acquisition Regulation (FAR) to 

implement Section 6 of the Sudan 

Accountability and Divestment Act of 

2007, which was signed on December 

31, 2007. 

DoD, GSA, and NASA published an 

interim rule in the Federal Register at 

73 FR 33636 on June 12, 2008. The 

public comment period ended August 

11, 2008. 

This rule amends the FAR to 

implement Section 6 of the Sudan 

Accountability and Divestment Act of 

2007 (the Act), which requires 

certification in each contract entered 

into by an executive agency that the 

contractor does not conduct certain 

business operations in Sudan. In 

addition, the Councils added Burma to 

the list of countries from which most 

imports are prohibited. 

B. Discussion and Analysis. 

The FAR Secretariat received five (5) 

responses to the interim rule. These 

responses included a total of 16 

comments on 11 issues. A sixth 

response was simply a copy of the 

statute and was not counted as a 

comment. All of the responses 

concerned the implementation of the 

Act; there were no comments on the 

addition of Burma to the list of 

prohibited countries. Each issue is 

discussed in the following sections. 

No public comments were received 

regarding the portion of the interim rule 

addressing Burma. Therefore, that part 

of the interim rule is unchanged (see the 

Federal Register at 73 FR 33636 dated 

June 12, 2008). 

1. Delete the definition of ‘‘person’’ 

and other issues with definitions. 

Comment: a. Two respondents 

recommended that the final rule delete 

the definition of ‘‘person.’’ The 

respondents point out that Section 2 of 

the Act, which defines the key terms in 

the Act, does not define ‘‘contractor’’ 

but does define ‘‘person.’’ The term 

person, however, is used frequently in 

Section 3 of the Act, which addresses 

divestiture by State and local 

governments (not a subject of the FAR 

coverage), but it is not used at all in 

Section 6 of the Act, which the FAR is 

implementing. The respondents point 

out that, had the Congress intended 

‘‘person’’ and ‘‘contractor’’ to be 

synonymous, it should have defined 

them so, and one respondent points out 

portions of the legislative history that 

reinforce its conclusion that the 

congressional intent was to have a 

different meaning for each term. 

b. In addition, one respondent 

requested that the definition of 

‘‘restricted business operations’’ at FAR 

sections 25.702–1 and 52.225–20 either 

delete the phrase ‘‘as those terms are 

defined in the Sudan Accountability 

and Divestment Act of 2007 (Pub. L. 

110–174)’’ or replace ‘‘defined in’’ with 

the phrase ‘‘described in Section 3(d) 

of’’. 

c. Last, a respondent reminded the 

Councils that in the ‘‘definition of the 


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