[Federal Register Volume 65, Number 109 (Tuesday, June 6, 2000)]
[Rules and Regulations]
[Pages 36025-36027]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-13822]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 25 and 52

[FAC 97-18; FAR Case 2000-004; Item VI]
RIN 9000-AI78


Federal Acquisition Regulation; Trade Agreements Thresholds

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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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 new 
dollar thresholds for application of the Trade Agreements Act (TAA) and 
North American Free Trade Agreement

[[Page 36026]]

(NAFTA), as published by the U.S. Trade Representative in the Federal 
Register at 65 FR 17332, March 31, 2000.

DATES: Effective Date: June 6, 2000.
    Applicability Date: The FAR, as amended by this rule, is applicable 
to solicitations issued on or after June 6, 2000.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
Building, Washington, DC, 20405, (202) 501-4755, for information 
pertaining to status or publication schedules. For clarification of 
content, contact Mr. Paul Linfield, Procurement Analyst, at (202) 501-
1757. Please cite FAC 97-18, FAR case 2000-004.

SUPPLEMENTARY INFORMATION:   

A. Background

    This final rule amends FAR Subparts 25.2, 25.4, 25.6, and 25.11 to 
implement new dollar thresholds for application of the Trade Agreements 
Act (TAA) and North American Free Trade Agreement (NAFTA), as published 
by the U.S. Trade Representative in the Federal Register at 65 FR 
17332, March 31, 2000.
    The rule also amends the clauses at FAR 52.225-11, Buy American 
Act--Balance of Payments Program--Construction Materials under Trade 
Agreements, and 52.225-12, Notice of Buy American Act--Balance of 
Payments Program Requirements-- Construction Materials under Trade 
Agreements. This rule revises Alternate I to FAR 52.225-11, because the 
threshold for NAFTA construction is now higher than the threshold for 
TAA construction, and adds the corresponding alternate to 52.225-12.
    This rule was not subject to Office of Management and Budget 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 final rule does not constitute a significant FAR revision 
within the meaning of FAR 1.501 and Public Law 98-577, and publication 
for public comments is not required. However, the Councils will 
consider comments from small entities concerning the affected FAR 
subparts 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 97-18, FAR case 2000-004), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act applies. However, the Councils' 
amendments to the FAR do not change information collection requirements 
previously approved by the Office of Management and Budget under 44 
U.S.C. 3501, et seq. The approved OMB clearances for the affected 
clauses are 9000-0022, 9000-0023, 9000-0024, 9000-0025, 9000-0130, and 
9000-0141.

List of Subjects in 48 CFR Parts 25 and 52

    Government procurement.

    Dated: May 26, 2000.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
    Therefore, DoD, GSA, and NASA amend 48 CFR parts 25 and 52 as set 
forth below:
    1. The authority citation for 48 CFR parts 25 and 52 continues to 
read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 25--FOREIGN ACQUISITION

    2. In section 25.202, revise paragraph (c) to read as follows:


25.202  Exceptions.

* * * * *
    (c) Acquisitions under trade agreements. For construction contracts 
with an estimated acquisition value of $6,806,000 or more, see 25.403. 
If the acquisition value is $7,068,419 or more, also see 25.405.

    3. In section 25.403, revise paragraph (b)(1) to read as follows:


25.403  Trade Agreements Act.

* * * * *
    (b) Thresholds. (1) Except as provided in 25.401, the Trade 
Agreements Act applies to an acquisition for supplies or services if 
the estimated value of the acquisition is $177,000 or more; the Trade 
Agreements Act applies to an acquisition for construction if the 
estimated value of the acquisition is $6,806,000 or more. These dollar 
thresholds are subject to revision by the U.S. Trade Representative 
approximately every 2 years (see Executive Order 12260).
* * * * *


25.405  [Amended]

    4. Amend section 25.405 as follows:
    a. In paragraph (a) remove ``$53,150'' and add ``$54,372'' in its 
place;
    b. In paragraph (b) remove ``$6,909,500'' and add ``$7,068,419'' in 
its place; and
    c. In paragraph (c) remove ``$53,150'' and ``$6,909,500'' and add 
in their places ``$54,372'' and ``$7,068,419'', respectively.


25.601  [Amended]

    5. Amend paragraph (a) of section 25.601 as follows:
    a. In paragraph (a)(1) remove ``$186,000'' and add ``$177,000'' in 
its place;
    b. In paragraph (a)(2) remove ``$7,143,000'' and add ``$6,806,000'' 
in its place; and
     c. In paragraph (a)(3)(ii) remove ``$186,000'' and add 
``$177,000'' in its place.


25.1101  [Amended]

    6. Amend section 25.1101 as follows:
    a. In paragraph (b)(1)(i) remove ``$186,000'' and add ``$177,000'' 
in its place;
    b. In paragraphs (b)(1)(iii) and (b)(2)(iii) remove ``$53,150'' and 
add in their places ``$54,372''; and
    c. In paragraphs (c)(1) and (d) remove ``$186,000'' and add in 
their places ``$177,000''.

    7. Amend section 25.1102 as follows:
    a. In paragraphs (a) and (c) remove ``$6,909,500'' and add in their 
places ``$6,806,000'';
    b. Revise paragraph (c)(3); and
    c. Add paragraph (d)(3) to read as follows:


25.1102  Acquisition of construction.

* * * * *
    (c) * * *
    (3) For acquisitions valued at $6,806,000 or more, but less than 
$7,068,419, use the clause with its Alternate I.
* * * * *
    (d) * * *
    (3) For acquisitions valued at $6,806,000 or more, but less than 
$7,068,419, use the clause with its Alternate II.


25.1103  [Amended]

    8. Amend section 25.1103 in paragraphs (c)(1)(i) and (c)(1)(ii)(B) 
by removing ``$186,000'' and adding ``$177,000'' in their places.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    9. In section 52.225-11, in the introductory paragraph remove 
``25.1102(c)(1)'' and add ``25.1102(c)'' in its place; and revise 
Alternate I to read as follows:


52.225-11  Buy American Act--Balance of Payments Program--Construction 
Materials under Trade Agreements.

* * * * *
    Alternate I (June 2000). As prescribed in 25.1102(c)(3), delete 
the definitions of ``North

[[Page 36027]]

American Free Trade Agreement country'' and ``North American Free 
Trade Agreement country construction material'' from the definitions 
in paragraph (a) of the basic clause and substitute the following 
paragraphs (b)(1) and (b)(2) for paragraphs (b)(1) and (b)(2) of the 
basic clause:
    (b) Construction materials. (1) This clause implements the Buy 
American Act (41 U.S.C. 10a-10d) and the Balance of Payments Program 
by providing a preference for domestic construction material. In 
addition, the Contracting Officer has determined that the Trade 
Agreements Act applies to this acquisition. Therefore, the Buy 
American Act and Balance of Payments Program restrictions are waived 
for designated country construction materials.
    (2) The Contractor shall use only domestic or designated country 
construction material in performing this contract, except as 
provided in paragraphs (b)(3) and (b)(4) of this clause.


    10. In section 52.225-12, add Alternate II to read as follows:


52.225-12   Notice of Buy American Act/Balance of Payments Program 
Requirement--Construction Materials under Trade Agreements.

* * * * *
    Alternate II (June 2000). As prescribed in 25.1102(d)(3), 
substitute the following paragraphs (a) and (d) for paragraphs (a) 
and (d) of the basic provision:
    (a) Definitions. ``Construction material,'' ``designated country 
construction material,'' ``domestic construction material,'' and 
``foreign construction material,'' as used in this provision, are 
defined in the clause of this solicitation entitled ``Buy American 
Act--Balance of Payments Program--Construction Materials under Trade 
Agreements'' (Federal Acquisition Regulation (FAR) clause 52.225-
11).
    (d) Alternate offers. (1) When an offer includes foreign 
construction material, other than designated country construction 
material, that is not listed by the Government in this solicitation 
in paragraph (b)(3) of FAR clause 52.225-11, the offeror also may 
submit an alternate offer based on use of equivalent domestic or 
designated country construction material.
    (2) If an alternate offer is submitted, the offeror shall submit 
a separate Standard Form 1442 for the alternate offer, and a 
separate price comparison table prepared in accordance with 
paragraphs (c) and (d) of FAR clause 52.225-11 for the offer that is 
based on the use of any foreign construction material for which the 
Government has not yet determined an exception applies.
    (3) If the Government determines that a particular exception 
requested in accordance with paragraph (c) of FAR clause 52.225-11 
does not apply, the Government will evaluate only those offers based 
on use of the equivalent domestic or designated country construction 
material, and the offeror shall be required to furnish such domestic 
or designated country construction material. An offer based on use 
of the foreign construction material for which an exception was 
requested--
    (i) Will be rejected as nonresponsive if this acquisition is 
conducted by sealed bidding; or
    (ii) May be accepted if revised during negotiations.

[FR Doc. 00-13822 Filed 6-1-00; 4:01 pm]
BILLING CODE 6820-EP-P