Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 12935 

its place. The revised text reads as 

follows: 

52.222–19 Child Labor—Cooperation with 

Authorities and Remedies. 

* * * * * 

CHILD LABOR—COOPERATION WITH 

AUTHORITIES AND REMEDIES (MAR 

2012) 

* * * * * 

[FR Doc. 2012–4492 Filed 3–1–12; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 22, 25, and 52 

[FAC 2005–56; FAR Case 2011–030; Item 

VI; Docket 2011–0030, Sequence 1] 

RIN 9000–AM16 

Federal Acquisition Regulation; New 

Designated Country (Armenia) and 

Other Trade Agreements Updates 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: DoD, GSA, and NASA are 

issuing a final rule amending the 

Federal Acquisition Regulation (FAR) to 

add Armenia as a designated country, 

due to the accession of Armenia to 

membership in the World Trade 

Organization Government Procurement 

Agreement. The rule also updates the 

FAR lists of countries that are party to 

the Agreement on Trade in Civil 

Aircraft. 

DATES: Effective Date: March 2, 2012. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Cecelia L. Davis, Procurement Analyst, 

at 202–219–0202 for clarification of 

content. For information pertaining to 

status or publication schedules, contact 

the Regulatory Secretariat at 202–501– 

4755. Please cite FAC 2005–56, FAR 

Case 2011–030. 

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. 

In addition, the Office of the U.S. 

Trade Representative has provided an 

updated list of countries that are party 

to the Agreement on Trade in Civil 

Aircraft. The U.S. Trade Representative 

has waived the Buy American Act for 

civil aircraft and related articles from 

countries that are parties to the 

Agreement on Trade on Civil Aircraft. 

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 (including the lists of 

countries in each category). 

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 and designated countries at 

FAR 22.1503, 25.003, 52.222–19, 

52.225–5, 52.225–11, and 52.225–23. 

This final rule also updates the FAR 

lists of countries that are party to the 

Agreement on Trade in Civil Aircraft at 

FAR 25.407 and 52.225–7, Waiver of 

Buy American Act for Civil Aircraft and 

Related Articles. 

Conforming changes have also been 

made to the associated clause dates for 

the revised clauses in the lists at FAR 

52.212–5, Contract Terms and 

Conditions Required to Implement 

Statutes or Executive Orders— 

Commercial Items, and FAR 52.213–4, 

Terms and Conditions—Simplified 

Acquisitions (Other Than Commercial 

Items). 

III. Publication of This Final Rule for 

Public Comment Is Not Required by 

Statute 

‘‘Publication of proposed 

regulations’’, 41 U.S.C. 1707, is the 

statute which applies to the publication 

of the Federal Acquisition Regulation. 

Paragraph (a)(1) of the statute requires 

that a procurement policy, regulation, 

procedure or form (including an 

amendment or modification thereof) 

must be published for public comment 

if it relates to the expenditure of 

appropriated funds, and has either a 

significant effect beyond the internal 

operating procedures of the agency 

issuing the policy, regulation, procedure 

or form, or has a significant cost or 

administrative impact on contractors or 

offerors. This final rule is not required 

to be published for public comment, 

because it recognizes actions taken by 

the United States Trade Representative 

that do not have a significant effect on 

contractors or offerors. 

IV. 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. 

V. Regulatory Flexibility Act 

The Regulatory Flexibility Act does 

not apply to this rule because this final 

rule does not constitute a significant 

FAR revision within the meaning of 

FAR 1.501–1 and 41 U.S.C. 1707 and 

does not require publication for public 

comment. 

VI. Paperwork Reduction Act 

Notwithstanding any other provision 

of law, no person is required to respond 

to, nor shall any person be subject to a 

penalty for failure to comply with a 

collection of information subject to the 

requirements of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.) unless the collection of 

information displays a currently valid 

Office of Management and Budget 

(OMB) Control Number. The Paperwork 

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12936 Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 

Reduction Act does apply, because the 

final rule affects the certification and 

information collection requirement in 

the provision at FAR 52.225–11, Buy 

American Act—Construction Materials 

Under Trade Agreements, currently 

approved under OMB clearance 9000– 

0141, Buy American Act—Construction. 

The FAR Council has determined that 

the impact on the approved paperwork 

burden 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 9000–0141, 

should be sent, not later than May 1, 

2012 to: FAR Desk Officer, OMB, Room 

10102, NEOB, Washington, DC 20503, 

and a copy to the General Services 

Administration, Regulatory Secretariat 

Division (MVCB), Attn: Hada Flowers, 

1275 First Street, NE., 7th Floor, 

Washington, DC 20417. 

Requesters may obtain a copy of the 

supporting statement for the burden 

approved under OMB clearance 9000– 

0141 from the General Services 

Administration, Regulatory Secretariat 

(MVCB), Attn: Hada Flowers, 1275 First 

Street, NE., 7th Floor, Washington, DC 

20417. Please cite OMB Control Number 

9000–0141, Buy American Act— 

Construction, in all correspondence. 

List of Subjects in 48 CFR Parts 22, 25, 

and 52 

Government procurement. 

Dated: February 21, 2012. 

Laura Auletta, 

Director, Office of Governmentwide 

Acquisition Policy, Office of Acquisition 

Policy, Office of Governmentwide 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 by 

removing from paragraph (b)(4) the 

word ‘‘Aruba,’’ and adding the words 

‘‘Armenia, Aruba,’’ in its place. 

PART 25—FOREIGN ACQUISITION 

25.003 [Amended] 

■ 3. Amend section 25.003 by removing 

from paragraph (1) of the definition 

‘‘Designated country’’, and the 

definition ‘‘World Trade Organization 

Government Procurement Agreement 

(WTO GPA) country’’ the word 

‘‘Aruba,’’ and adding the words 

‘‘Armenia, Aruba,’’ in their place. 

■ 4. Revise section 25.407 to read as 

follows: 

25.407 Agreement on Trade in Civil 

Aircraft. 

Under the authority of Section 303 of 

the Trade Agreements Act, the U.S. 

Trade Representative has waived the 

Buy American Act for civil aircraft and 

related articles that meet the substantial 

transformation test of the Trade 

Agreements Act, from countries that are 

parties to the Agreement on Trade in 

Civil Aircraft. Those countries are 

Albania, Austria, Belgium, Bulgaria, 

Canada, Cyprus, Czech Republic, 

Denmark, Egypt, Estonia, Finland, 

France, Georgia, Germany, Greece, 

Hungary, Ireland, Italy, Japan, Latvia, 

Lithuania, Luxembourg, Macao China, 

Malta, the Netherlands, Norway, 

Poland, Portugal, Romania, Slovakia, 

Slovenia, Spain, Sweden, Switzerland, 

Taiwan (Chinese Taipei), and the 

United Kingdom. 

PART 52—SOLICITATION PROVISIONS 

AND CONTRACT CLAUSES 

■ 5. Amend section 52.212–5 by 

revising the date of the clause, and 

paragraphs (b)(27) and (b)(41) 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 APR 2012 

* * * * * 

(b) * * * 

l (27) 52.222–19, Child Labor— 

Cooperation with Authorities and Remedies 

APR 2012 (E.O. 13126). 

* * * * * 

l (41) 52.225–5, Trade Agreements APR 

2012 (19 U.S.C. 2501, et seq., 19 U.S.C. 3301 

note). 

* * * * * 

■ 6. 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) APR 

2012 

* * * * * 

(b) * * * 

(1) * * * 

(i) 52.222–19, Child Labor—Cooperation 

with Authorities and Remedies APR 2012 

(E.O. 13126). (Applies to contracts for 

supplies exceeding the micro-purchase 

threshold.) 

* * * * * 

■ 7. Amend section 52.222–19 by 

revising the date of the clause to read as 

set forth below; and removing from 

paragraph (a)(4) the word ‘‘Aruba,’’ and 

adding the words ‘‘Armenia, Aruba,’’ in 

its place. 

52.222–19 Child Labor—Cooperation With 

Authorities and Remedies. 

* * * * * 

CHILD LABOR—COOPERATION WITH 

AUTHORITIES AND REMEDIES APR 

2012 

* * * * * 

■ 8. Amend section 52.225–5 by 

revising the date of the clause to read as 

set forth below; and in paragraph (a) 

removing from paragraph (1) of the 

definition ‘‘Designated country’’ the 

word ‘‘Aruba,’’ and adding the words 

‘‘Armenia, Aruba,’’ in its place. 

52.225–5 Trade Agreements. 

* * * * * 

TRADE AGREEMENTS APR 2012 

* * * * * 

■ 9. Amend section 52.225–7 by 

revising the date of the provision, and 

the second sentence of paragraph (b) to 

read as follows: 

52.225–7 Waiver of Buy American Act for 

Civil Aircraft and Related Articles. 

* * * * * 

WAIVER OF BUY AMERICAN ACT 

FOR CIVIL AIRCRAFT AND RELATED 

ARTICLES APR 2012 

* * * * * 

(b) * * * Those countries are Albania, 

Austria, Belgium, Bulgaria, Canada, Cyprus, 

Czech Republic, Denmark, Egypt, Estonia, 

Finland, France, Georgia, Germany, Greece, 

Hungary, Ireland, Italy, Japan, Latvia, 

Lithuania, Luxembourg, Macao China, Malta, 

the Netherlands, Norway, Poland, Portugal, 

Romania, Slovakia, Slovenia, Spain, Sweden, 

Switzerland, Taiwan (Chinese Taipei), and 

the United Kingdom. 

* * * * * 

■ 10. Amend section 52.225–11 by 

revising the date of the clause to read as 

set forth below; and in paragraph (a) 

removing from paragraph (1) of the 

definition ‘‘Designated country’’ the 

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Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Rules and Regulations 12937 

word ‘‘Aruba,’’ and adding the words 

‘‘Armenia, Aruba,’’ in its place. 

52.225–11 Buy American Act— 

Construction Materials Under Trade 

Agreements. 

* * * * * 

BUY AMERICAN ACT— 

CONSTRUCTION MATERIALS UNDER 

TRADE AGREEMENTS APR 2012 

* * * * * 

■ 11. Amend section 52.225–23 by 

revising the date of the clause to read as 

set forth below; and in paragraph (a) 

removing from paragraph (1) of the 

definition ‘‘Designated country’’ and 

paragraph (1) of the definition 

‘‘Recovery Act designated country’’ the 

word ‘‘(Aruba,’’ and adding the words 

‘‘(Armenia, Aruba,’’ in its place. 

52.225–23 Required Use of American Iron, 

Steel, and Manufactured Goods—Buy 

American Act—Construction Materials 

Under Trade Agreements. 

* * * * * 

REQUIRED USE OF AMERICAN IRON, 

STEEL, AND MANUFACTURED 

GOODS—BUY AMERICAN ACT— 

CONSTRUCTION MATERIALS UNDER 

TRADE AGREEMENTS APR 2012 

* * * * * 

[FR Doc. 2012–4495 Filed 3–1–12; 8:45 am] 

BILLING CODE 6820–EP–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

48 CFR Parts 2, 31, 32, 45, 49, 51, 52, 

and 53 

[FAC 2005–56; FAR Case 2010–009; Item 

VII; Docket 2010–0009, Sequence 1] 

RIN 9000–AL95 

Federal Acquisition Regulation; 

Government Property 

AGENCIES: Department of Defense (DoD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Final rule. 

SUMMARY: DoD, GSA, and NASA are 

issuing a final rule amending the 

Federal Acquisition Regulation (FAR) to 

clarify reporting, reutilization, and 

disposal of Government property. 

DATES: Effective Date: April 2, 2012. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Curtis E. Glover, Sr., Procurement 

Analyst, at 202–501–1448 for 

clarification of content. For information 

pertaining to status or publication 

schedules, contact the Regulatory 

Secretariat at 202–501–4755. Please cite 

FAC 2005–56, FAR Case 2010–009. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD, GSA, and NASA published a 

proposed rule in the Federal Register at 

76 FR 18497 on April 4, 2011. Eight 

respondents submitted comments on the 

proposed rule. The comments received 

were grouped by topic area. 

II. Discussion and Analysis 

The Civilian Agency Acquisition 

Council and the Defense Acquisition 

Regulations Council (the Councils) 

reviewed the 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. Summary of Significant Changes 

1. A definition of ‘‘surplus property’’ 

is added at FAR 2.101 to apply 

throughout the FAR. 

2. Terminology used is updated and 

used consistently throughout the FAR, 

e.g., ‘‘loss of Government property’’ is 

defined at FAR 45.101, and ‘‘loss’’ is 

used consistently in lieu of ‘‘loss, 

damage, destruction, or theft.’’ 

3. Clarified, and distinguished among, 

the responsibilities and authorities of 

the contracting officer, property 

administrator, plant clearance officer, 

and contractor. 

4. Reorganized and clarified 

procedures and responsibilities for 

Government property disposal (see FAR 

subpart 45.6). 

5. Reorganized, clarified, and updated 

the Government property clause at FAR 

52.245–1 to conform with revisions to 

FAR part 45. 

B. Government Responsibilities 

Comments: A respondent 

recommended a number of revisions to 

the Government responsibilities, 

primarily those in FAR subpart 45.6, 

Reporting, Reutilization, and Disposal. 

The respondent recommended revising 

FAR 45.606–1(a) to require that the 

property administrator work in 

coordination with the plant clearance 

officer to ensure that contractor scrap 

disposal processes are effective and 

properly documented. Another 

recommendation was to revert to the 

current regulation’s use of ‘‘should’’ in 

lieu of ‘‘may’’ at FAR 45.602–1(c)(1) in 

order to ensure the Government’s 

agreement before Government property 

is removed from a contractor’s inventory 

schedule. The respondent 

recommended modifying FAR 45.606– 

1(b) to require that any deviation from 

the contractor’s standard property plan 

and processes be identified as early as 

possible in the procurement process. 

Response: The first two 

recommendations are adopted in this 

final rule. The final recommendation is 

not adopted because the Property 

Administrator can make that 

determination at any time. 

Comments: The same respondent 

recommended a number of other 

revisions to the Government 

responsibilities, also primarily in FAR 

subpart 45.6, Reporting, Reutilization, 

and Disposal. The respondent proposed 

to revise FAR 45.600, Scope of subpart 

(which was not included in the 

proposed rule) to allow for either the 

contracting officer or the plant clearance 

officer to perform plant clearance officer 

duties. The respondent recommended 

removing the proposed rule’s 

requirement, at FAR 45.603(b), for the 

plant clearance officer to obtain 

approval at one level higher than the 

contracting officer before allowing the 

abandonment of sensitive property that 

does not require demilitarization. The 

respondent requested the addition of 

more examples of items considered to 

be incidental to the place of 

performance (see FAR 45.000). 

Response: The above 

recommendations are not incorporated 

into the final rule because (1) 

contracting officers generally rely on the 

Government property expertise of plant 

clearance officers, (2) additional review 

and approval requirements can provide 

a broader perspective, and (3) too often, 

lists of examples are treated 

inappropriately as exhaustive lists. 

C. Contractor Property Management 

Systems 

Comments: Two respondents 

recommended revisions to FAR subpart 

45.1, General. One recommendation was 

to revise FAR 45.105(b) to prevent the 

Government from notifying a contractor 

of deficiencies in its property 

management system unless the 

deficiencies were ‘‘material.’’ The other 

recommendation was to modify FAR 

45.104(b) to add the following: ‘‘When 

determining noncompliance, FAR part 1 

concepts apply, e.g., risk management, 

materiality, best value, and benefits of 

changes must justify their cost’’. 

Response: FAR part 1 is always 

applicable to all parts of the FAR. There 

is no need to repeat the statement in 

FAR part 45. ‘‘Materiality’’ is not 

defined in FAR part 2. If the 

Government determines that 

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