4630 Federal Register / Vol. 77, No. 19 / Monday, January 30, 2012 / Rules and Regulations 

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. 

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): 

Trade agreement 

Supply contract (equal to 

or exceeding) 

Construction 

contract (equal 

to or 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 Republic, El Salvador, Guatemala, Honduras, and Nicaragua) ........... 77,494 7,777,000 

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 

■ 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. 

■ 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. 

* * * * * 

■ 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 


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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 


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