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

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 252 

[Docket No. DARS–2011–0082–0002] 

RIN 0750–AH48 

Defense Federal Acquisition 

Regulation Supplement: New 

Designated Country—Armenia (DFARS 

Case 2011–D057) 

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 Armenia as a World 

Trade Organization Government 

Procurement Agreement (WTO GPA) 

country and a designated country, due 

to the accession of Armenia to 

membership in the World Trade 

Organization Government Procurement 

Agreement. 

DATES: Effective Date: January 30, 2012. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Amy G. Williams, Defense Acquisition 

Regulations System, OUSD (AT&L) 

DPAP/DARS, Room 3B855, 3060 

Defense Pentagon, Washington, DC 

20301–3060. Telephone (703) 602–0328; 

facsimile (703) 602–0350. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On September 15, 2011, Armenia 

became a party to the World Trade 

Organization Government Procurement 

Agreement (WTO GPA). The Trade 

Agreements Act (19 U.S.C. 2501 et seq.) 

provides the authority for the President 

to waive the Buy American Act and 

other discriminatory provisions for 

eligible products from countries that 

have signed an international trade 

agreement with the United States (such 

as the WTO GPA). The President has 

delegated this waiver authority to the 

U.S. Trade Representative (see FAR 

25.402). 

On September 22, 2011, because 

Armenia became a party to the WTO 

GPA and because the U.S. Trade 

Representative has determined that 

Armenia will provide appropriate 

reciprocal competitive Government 

procurement opportunities to United 

States products and services and 

suppliers of such products and services, 

the U.S. Trade Representative published 

a notice in the Federal Register (76 FR 

58856) waiving the Buy American Act 

and other discriminatory provisions for 

eligible products from Armenia. 

II. Discussion and Analysis 

FAR 25.003 defines WTO GPA 

countries by listing the parties to the 

WTO GPA, and defines ‘‘designated 

country’’ as a WTO GPA country, a Free 

Trade Agreement country, a least 

designated country, or a Caribbean 

Basin country. 

Because Armenia is now a WTO GPA 

country and therefore also a designated 

country, as determined by the U.S. 

Trade Representative, this final rule 

adds Armenia to the lists of WTO GPA 

countries within the definition of 

‘‘designated country’’ at DFARS 

252.225–7021, Trade Agreements, and 

252.225–7045, Balance of Payments 

Program—Construction Material Under 

Trade Agreements. Conforming changes 

were also made to the clause date at 

252.225–7001(b)(12)(i). 

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 a significant 

regulatory action and, therefore, was 

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 an initial 

regulatory flexibility analysis is only 

required for proposed or interim rules 

that require publication for public 

comment (5 U.S.C. 603) and a final 

regulatory flexibility analysis is only 

required for final rules that were 

previously published for public 

comment, and for which an initial 

regulatory flexibility analysis was 

prepared (5 U.S.C. 604). 

Publication of this final rule for 

public comment is not required by 

statute (41 U.S.C. 1707) because it 

recognizes actions taken by the United 

States Trade Representative that do not 

have a significant effect on contractors 

or offerors or a significant effect beyond 

the internal operating procedures of the 

Government. Therefore, publication for 

public comment under 41 U.S.C. 1707 is 

not required. 

V. Paperwork Reduction Act 

The Paperwork Reduction Act does 

apply because the final rule affects the 

certification and information collection 

requirement in the provisions at DFARS 

252.225–7020, Trade Agreements 

Certificate, currently approved under 

OMB clearance 0704–0229, DFARS Part 

225, Foreign Acquisition, and associated 

clauses. DFARS provision 252.225–7020 

relies on the definition of ‘‘designated 

country’’ in DFARS 252.225–7021, 

which now includes Armenia. The 

impact, however, is negligible. 

Comments regarding the burden 

estimates or any other aspect of this 

collection of information, including 

suggestions for reducing the burden, in 

response to approved OMB clearance 

0704–0229, should be sent, not later 

than March 30, 2012 to Ms. Jasmeet 

Seehra at the Office of Management and 

Budget, Desk Officer for DoD, Room 

10236, New Executive Office Building, 

Washington, DC 20503, with a copy to 

the Defense Acquisition Regulations 

System, Attn: Ms. Amy Williams, OUSD 

(AT&L) DPAP (DARS), Room 3B855, 

3060 Defense Pentagon, Washington, DC 

20301–3060. 

Requesters may obtain a copy of the 

supporting statement for the burden 


emcdonald on DSK29S0YB1PROD with RULES2
4632 Federal Register / Vol. 77, No. 19 / Monday, January 30, 2012 / Rules and Regulations 

approved under OMB clearance 0704– 

0229 from the point of contact identified 

in this notice. Please cite OMB Control 

Number 0704–0229, in all 

correspondence. 

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 

■ 1. The authority citation for 48 CFR 

part 252 is revised to read as follows: 

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

chapter 1. 

252.212–7001 [Amended]. 

■ 2. In section 252.212–7001, remove 

the clause date ‘‘(DEC 2011)’’ and add 

‘‘(JANUARY 2012)’’ in its place and in 

paragraph (b)(13)(i) remove the clause 

date ‘‘(OCT 2011)’’ and add ‘‘(JANUARY 

2012)’’ in its place. 

■ 3. In section 252.225–7021, remove 

the clause date ‘‘(OCT 2011)’’ and add 

‘‘(JAN 2012)’’ in its place and in 

paragraph (a), in the definition for 

‘‘Designated country’’, revise paragraph 

(i) to read as follows: 

252.225–7021 Trade agreements. 

* * * * * 

(a) * * * 

Designated country * * * 

(i) A World Trade Organization 

Government Procurement Agreement 

(WTO GPA) country (Armenia, 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 the 

United Kingdom); 

* * * * * 

■ 4. In section 252.225–7045, remove 

the clause date ‘‘(JUN 2011)’’ and add 

‘‘(JAN 2012)’’ in its place and in 

paragraph (a), in the definition for 

‘‘Designated country’’, revise paragraph 

(1) to read as follows: 

252.225–7045 Balance of Payments 

Program—Construction Material Under 

Trade Agreements. 

* * * * * 

(a) * * * 

Designated country * * * 

(1) A World Trade Organization 

Government Procurement Agreement 

(WTO GPA) country (Armenia, 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 the 

United Kingdom); 

* * * * * 

[FR Doc. 2012–1488 Filed 1–27–12; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 231 

RIN 0750–AG96 

Defense Federal Acquisition 

Regulation Supplement; Independent 

Research and Development Technical 

Descriptions (DFARS Case 2010–D011) 

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 require major contractors to 

report independent research and 

development (IR&D) projects. 

DATES: Effective date: January 30, 2012. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Mark Gomersall, (703) 602–0302. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published a proposed rule at 76 

FR 11414 on March 2, 2011, to revise 

requirements for reporting IR&D projects 

to the Defense Technical Information 

Center (DTIC). Beginning in the 1990s, 

DoD reduced its technical exchanges 

with industry, in part to ensure 

independence of IR&D. The result has 

been a loss of linkage between funding 

and technological purpose. The 

reporting requirements of this rule, 

issued in accordance with 10 U.S.C. 

2372, will provide in-process 

information from IR&D projects, for 

which reimbursement, as an allowable 

indirect cost, is sought from DoD, to 

increase effectiveness by providing 

visibility into the technical content of 

industry IR&D activities to meet DoD 

needs and promote the technical 

prowess of our industry. Without the 

collection of this information, DoD will 

be unable to maximize the value of the 

IR&D funds it disburses without 

infringing on the independence of 

contractors to choose which 

technologies to pursue in IR&D 

programs. The public comment period 

closed May 2, 2011. Four respondents 

submitted comments on the proposed 

rule. A discussion of the comments is 

provided in Section II. 

II. Discussion and Analysis 

DoD reviewed the public comments in 

the development of the final rule. A 

discussion of the comments and the 

changes made to the rule as a result of 

those comments are provided as 

follows: 

A. Threshold 

Comment: The proposed rule should 

clarify whether the reporting 

requirement is triggered by a major 

contractor’s aggregate IR&D costs or the 

costs of an individual IR&D project. The 

threshold for triggering the reporting 

requirement is low and should be 

increased. The low threshold of $50,000 

magnifies the burden to contractors, 

ACOs, and DCAA auditors, as this 

threshold would require the reporting of 

almost any IR&D project. Respondents 

recommended a number of alternative 

thresholds. 

Response: The $50,000 contractor 

annual IR&D threshold has been 

removed from the final rule. DFARS 

231.205–18(c)(iii) applies only to major 

contractors, which are defined as those 

contractors whose covered segments 

allocated a total of more than 

$11,000,000 in IR&D/Bid and Proposal 

(B&P) costs to covered contracts during 

the preceding fiscal year. However, 

contractors who do not meet the 

threshold as a major contractor are 

encouraged to use the DTIC on-line 

input form to report IR&D projects to 

provide DoD with visibility into the 

technical content of the contractors’ 

IR&D activities. 

B. Proprietary Information 

Comment: The proposed rule should 

ensure that contractor trade secret and 

proprietary information is protected. It 

is apparent that DoD is seeking to 


emcdonald on DSK29S0YB1PROD with RULES2