11002 Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Proposed Rules 

Executive Orders 12866 and 13563 

E.O. 12866, Regulatory Planning and 

Review, and E.O. 13563, Improving 

Regulation and Regulatory Review, 

direct Federal 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) 

for all significant regulatory actions. A 

regulatory impact analysis (RIA) must 

be prepared for major rules with 

economically significant effects ($100 

million or more in any one year). Based 

on our analysis, we believe the 

proposed rulemaking does not 

constitute a significant or economically 

significant regulatory action. 

Executive Order 13132 

Executive Order 13132, Federalism, 

requires Federal agencies to consult 

with State and local government 

officials in the development of 

regulatory policies and with federalism 

implications. We have reviewed the 

proposed rule as required under the 

Order and have determined that it will 

not have a significant potential negative 

impact on States, in the relationship 

between the national government and 

the States, or on the distribution of 

power and responsibilities among the 

various levels of government does not 

have any federalism implications. The 

Secretary asserts that this proposed rule 

will not have effect on the States or on 

the distribution of power and 

responsibilities among the various 

levels of government. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (5 

U.S.C. 601–612) requires Federal 

agencies to analyze regulatory options 

that would minimize any significant 

impact of the rule on small entities. For 

the purpose of this analysis, small 

entities include small business concerns 

as defined by the Small Business 

Administration (SBA), usually 

businesses with fewer than 500 

employees. The Secretary asserts that 

the proposed rule will not create a 

significant economic impact on a 

substantial number of small entities, 

and therefore a regulatory flexibility 

analysis, is not required. 

Unfunded Mandates Act of 1995 

Section 202(a) of the Unfunded 

Mandates Reform Act of 1995 requires 

Federal agencies to prepare a written 

statement which includes an assessment 

of anticipated costs and benefits before 

proposing ‘‘any rule that includes any 

Federal mandate that may result in the 

expenditure by State, local, and tribal 

organizations, in the aggregate, or by the 

private sector, of $100,000,000 or more 

(adjusted annually for inflation with 

base year of 1995) in any one year.’’ The 

current inflation-adjusted statutory 

threshold is approximately $156 million 

based on the Bureau of Labor Statistics 

inflation calculator. This rule will not 

result in a one-year expenditure that 

would meet or exceed that amount. 

Paperwork Reduction Act 

This proposed rule does not contain 

any information collection requirements 

which are subject to Office of 

Management and Budget (OMB) 

approval under the Paperwork 

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

chapter 35). 

List of Subjects in 45 CFR Part 3 

Conduct, Federal buildings and 

facilities, Government property, Traffic 

regulations, Firearms. 

For reasons presented in the 

preamble, it is proposed to amend title 

45 of the Code of Federal Regulations by 

revising Part 3, as set forth below. 

PART 3—CONDUCT OF PERSONS 

AND TRAFFIC ON THE NATIONAL 

INSITUTES OF HEALTH FEDERAL 

ENCLAVE 

■ 1. The authority citation for part 3 

continues to read as follows: 

Authority: 40 U.S.C. 318–318d. 486; 

Delegation of Authority, 33 FR 604. 

§ 3.4 [Amended] 

■ 2. Amend § 3.4 by removing the last 

sentence of the paragraph. 

■ 3. Amend § 3.42 by revising the last 

sentence in paragraph (b) and paragraph 

(f) to read as follows: 

§ 3.42 Restricted activities. 

* * * * * 

(b) * * * The use of a service animal 

by a person with a disability to assist 

that person is authorized. 

* * * * * 

(f) Smoking. Except as part of an 

approved medical research protocol, a 

person may not smoke on the enclave. 

* * * * * 

■ 4. Amend § 3.61 by revising paragraph 

(a) to read as follows: 

§ 3.61 Penalties. 

(a) A person found guilty of violating 

any provision of the regulations in this 

part is subject to a fine or imprisonment 

of not more than thirty days or both, for 

each violation (U.S. Pub. L. 107–296, 

Homeland Security Act of 2002). 

* * * * * 

Xavier Becerra, 

Secretary, Department of Health and Human 

Services. 

[FR Doc. 2022–02859 Filed 2–25–22; 8:45 am] 

BILLING CODE 4140–01–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 212, 225, and 252 

[Docket DARS–2022–0003] 

RIN 0750–AL18 

Defense Federal Acquisition 

Regulation Supplement: United StatesMexico-Canada Agreement (DFARS 

Case 2020–D032) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Proposed rule. 

SUMMARY: DoD is proposing to amend 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

implement the United States-MexicoCanada Agreement Implementation Act. 

DATES: Comments on the proposed rule 

should be submitted in writing to the 

address shown below on or before May 

27, 2022, to be considered in the 

formation of a final rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2020–D032, 

using any of the following methods: 

Æ Federal eRulemaking Portal: 

https://www.regulations.gov. Search for 

‘‘DFARS Case 2020–D032.’’ Select 

‘‘Comment’’ and follow the instructions 

to submit a comment. Please include 

‘‘DFARS Case 2020–D032’’ on any 

attached documents. 

Æ Email: osd.dfars@mail.mil. Include 

DFARS Case 2020–D032 in the subject 

line of the message. 

Comments received generally will be 

posted without change to https://

www.regulations.gov, including any 

personal information provided. To 

confirm receipt of your comment(s), 

please check https://

www.regulations.gov, approximately 

two to three days after submission to 

verify posting. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Kimberly Bass, telephone 571–372– 

6174. 

SUPPLEMENTARY INFORMATION: 


khammond on DSKJM1Z7X2PROD with PROPOSALS
Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Proposed Rules 11003 

I. Background 

DoD is issuing a proposed rule to 

amend the DFARS to implement the 

United States-Mexico-Canada 

Agreement Implementation Act (Pub. L. 

116–113). On November 30, 2018, the 

Governments of the United States, 

Mexico, and Canada (the parties) signed 

the protocol replacing the North 

American Free Trade Agreement 

(NAFTA) with the United StatesMexico-Canada Agreement (USMCA). 

On December 10, 2019, the parties 

signed the protocol of amendment to the 

USMCA. On January 29, 2020, the 

President signed into law the United 

States-Mexico-Canada Agreement 

Implementation Act, through which 

Congress approved the USMCA. On July 

1, 2020, the USMCA entered into effect. 

II. Discussion and Analysis 

A. Chapter 13 of the USMCA 

The USMCA supersedes the NAFTA. 

Chapter 13 (Government Procurement) 

of the USMCA applies only to the 

United States and Mexico. Therefore, 

Canada is no longer a Free Trade 

Agreement country, although Canada is 

still a designated country under the 

World Trade Organization Government 

Procurement Agreement (WTO GPA). 

Chapter 13 of the USMCA sets forth 

certain obligations between the United 

States and Mexico with respect to 

government procurement of goods and 

services, as specified in Annex 13–A of 

the USMCA. 

This proposed rule is required to meet 

the United States trade obligations to 

Mexico and remove any trade benefits 

that no longer should accrue to Canada. 

Therefore, all references in the DFARS 

to Canada as a Free Trade Agreement 

country are revised to delete Canada 

and its associated Free Trade Agreement 

threshold of $25,000. The new 

minimum Free Trade Agreement 

threshold is now $92,319. Mexico 

thresholds remain unchanged. 

B. Chapter 20 of the USMCA 

Chapter 20 of the USMCA addresses 

intellectual property rights. The 

requirements of Federal Acquisition 

Regulation (FAR) 27.204–1, Patented 

technology under the NAFTA, and the 

associated emergency acquisition 

flexibility at FAR 18.120 are no longer 

applicable or authorized. FAR case 

2020–014, United States-Mexico-Canada 

Agreement, is currently in process to 

address required changes to the FAR to 

implement the USMCA. DoD 

contracting officers should consult with 

legal counsel concerning questions that 

may arise with regard to the use of 

patented technology under the USMCA. 

Any potential impacts with regard to the 

USMCA to DFARS part 218, Emergency 

Acquisitions, and DFARS part 227, 

Patents, Data, and Copyrights, will be 

addressed with further rulemaking. 

C. Implementation of the USMCA in the 

DFARS 

Part 212 

The proposed rule deletes all 

references to 19 U.S.C. 3301 note 

associated with the implementation of 

NAFTA in DFARS 212.301. 

Part 225 

The $25,000 Free Trade Agreement 

threshold for Canada is no longer 

applicable. The proposed rule deletes 

all references to the $25,000 threshold 

in its entirety in the clause prescriptions 

at DFARS 225.1101, Acquisition of 

supplies. 

Part 252 

All references to Free Trade 

Agreement countries are revised to 

delete Canada and remove the $25,000 

threshold, replacing it with the Free 

Trade Agreement minimum threshold of 

$92,319. Contracting officers will be 

required to use the revised provisions 

and clauses as prescribed that reflect the 

USMCA requirements. Proposed 

revisions are as follows: 

DFARS 252.225–7013, Duty-Free 

Entry. Revises the definition of ‘‘eligible 

product’’ to delete the reference to 

Canadian end products or devices. 

DFARS 252.225–7017, Photovoltaic 

Devices, and DFARS 252.225–7018, 

Photovoltaic Devices—Certificate. 

Removes the definition of ‘‘Canadian 

photovoltaic device’’ as it no longer 

applies in both the clause and 

provision. Deletes Canada as a Free 

Trade Agreement country from the 

definition of ‘‘designated country’’ and 

from the definition of ‘‘Free Trade 

Agreement country’’ in DFARS 

252.225–7017. Conforming changes 

made to remove the associated $25,000 

threshold for Canada, replacing it with 

the Free Trade Agreement minimum 

threshold of $92,319 in both the clause 

and provision. 

DFARS 252.225–7021, Trade 

Agreements. In the basic clause and in 

alternate II, removes Canada as a Free 

Trade Agreement country from the 

definition of ‘‘designated country’’. 

Editorial change made to redesignate 

paragraph numbers in paragraph (a) 

definitions to conform to current 

drafting conventions. 

DFARS 252.225–7035, Buy 

American—Free Trade Agreements— 

Balance of Payments Program 

Certificate. In the basic provision and 

alternates I, II, III, IV, and V, removes all 

references to Canadian end products 

and the ‘‘Canadian end product’’ 

definition in alternates I and III with 

conforming changes. 

DFARS 252.225–7036, Buy 

American—Free Trade Agreements— 

Balance of Payments Program. In the 

basic clause and alternates I, II, III, IV, 

and V, removes Canada from the 

definition of ‘‘Free Trade Agreement 

country’’ and removes the definition for 

‘‘Canadian end product’’ from alternates 

I and II, with conforming changes. 

Editorial changes made to redesignate 

paragraph numbers in paragraph (a) 

definitions to conform to current 

drafting conventions. 

DFARS 252.225–7045, Balance of 

Payments Program—Construction 

Material Under Trade Agreements. In 

the basic clause and alternates I, II, and 

III, removes references to Canada in the 

‘‘designated country’’ definition as a 

‘‘Free Trade Agreement country’’; 

removes ‘‘NAFTA’’ and replaces it with 

references to ‘‘USMCA’’ in alternates I 

and III in accordance with the 

implementation of the Balance of 

Payments Program. Editorial changes 

made to redesignate paragraph numbers 

in paragraph (a) definitions to conform 

to current drafting conventions. 

III. Applicability to Contracts at or 

Below the Simplified Acquisition 

Threshold (SAT), for Commercial 

Products Including Commercially 

Available Off-the-Shelf (COTS) Items, 

and for Commercial Services 

This rule amends the clauses at 

DFARS 252.225–7013, Duty-Free Entry; 

DFARS 252.225–7017, Photovoltaic 

Devices; DFARS 252.225–7021, Trade 

Agreements (Basic and Alternate II); 

DFARS 252.225–7036, Buy American— 

Free Trade Agreements—Balance of 

Payments Program (Basic and Alternates 

I (with the prescription), II, III (with the 

prescription), IV, V); 252.225–7045, 

Balance of Payments Program— 

Construction Material Under Trade 

Agreements (Basic and Alternates I, II, 

and III); and provisions at DFARS 

252.225–7018 Photovoltaic Devices— 

Certificate; 252.225–7035 Buy 

American—Free Trade Agreements— 

Balance of Payments Program Certificate 

(Basic and Alternate I, II, III (with the 

prescription). This rule does not impose 

any new requirements on contracts at or 

below the simplified acquisition 

threshold, for commercial products 

including commercially available offthe-shelf items, or for commercial 

services. 


khammond on DSKJM1Z7X2PROD with PROPOSALS
11004 Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Proposed Rules 

IV. Expected Impact of the Rule 

The rule implements the United 

States-Mexico-Canada Agreement 

Implementation Act. The USMCA 

supersedes the NAFTA. Canada is still 

a designated country under the World 

Trade Organization Government 

Procurement Agreement; however, 

Canada is no longer a Free Trade 

Agreement country, because chapter 13 

(Government Procurement) of the 

USMCA applies only to the United 

States and Mexico. References to 

Canada as a Free Trade Agreement 

country in the DFARS are deleted, 

including the $25,000 threshold. 

Canadian end products will still receive 

nondiscriminatory treatment with 

respect to the Buy American statute but 

starting at $183,000 rather than $25,000. 

Impacts are anticipated to be negligible, 

since Canada remains a WTO GPA 

designated country, and a qualifying 

country, with a threshold of $183,000. 

The Mexico thresholds remain 

unchanged. 

V. 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. 

VI. Congressional Review Act 

As required by the Congressional 

Review Act (5 U.S.C. 801–808) before an 

interim or final rule takes effect, DoD 

will submit a copy of the interim or 

final rule with the form, Submission of 

Federal Rules Under the Congressional 

Review Act, to the U.S. Senate, the 

House of Representatives, and the 

Comptroller General of the United 

States. A major rule under the 

Congressional Review Act cannot take 

effect until 60 days after it is published 

in the Federal Register. This rule is not 

anticipated to be a major rule under 5 

U.S.C. 804. 

VII. Regulatory Flexibility Act 

DoD does not expect this proposed 

rule 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. Nevertheless, an initial 

regulatory flexibility analysis has been 

performed consistent with 5 U.S.C. 603 

and summarized as follows: 

The proposed rule implements the 

United States-Mexico-Canada 

Agreement Implementation Act (Pub. L. 

116–113). On November 30, 2018, the 

Governments of the United States, 

Mexico, and Canada (the parties) signed 

the protocol replacing NAFTA with the 

United States-Mexico-Canada 

Agreement (USMCA). On December 10, 

2019, the parties signed the protocol of 

amendment to the USMCA. On January 

29, 2020, the President signed into law 

the United States-Mexico-Canada 

Agreement Implementation Act, through 

which Congress approved the USMCA. 

On July 1, 2020, the USMCA entered 

into effect. 

The objective of this rule is to 

implement the USMCA Implementation 

Act. The proposed rule includes 

changes in the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to conform to chapter 13 of the 

USMCA, which sets forth certain 

obligations between the United States 

and Mexico with respect to government 

procurement of goods and services, as 

specified in Annex 13–A of the USMCA. 

Chapter 13 of the USMCA applies only 

between Mexico and the United States 

and does not cover Canada. 

Although Canada is still a designated 

country under the World Trade 

Organization Government Procurement 

Agreement (WTO GPA), Canada is no 

longer a Free Trade Agreement country, 

because chapter 13 of the USMCA 

applies only to the United States and 

Mexico. Therefore, references to Canada 

as a Free Trade Agreement country in 

the DFARS are deleted, including the 

$25,000 threshold. Canadian end 

products will still receive 

nondiscriminatory treatment with 

respect to the Buy American statute but 

starting at $183,000 rather than the 

threshold of $25,000. Mexico thresholds 

remain unchanged. 

The proposed rule removes all 

references to the NAFTA, replacing 

them with the new USMCA language, 

including statutory references. All 

references to Canadian end products or 

Canadian photovoltaic devices also are 

removed. 

The legal basis for the rule is Public 

Law 116–113. 

This rule is not expected to have a 

significant economic impact on small 

entities. Although the rule removes 

Canada as a Free Trade Agreement 

designated country and deletes the 

associated $25,000 threshold, replacing 

it with the free trade agreement 

minimum threshold of $92,319, Canada 

remains a WTO GPA designated 

country, and a qualifying country, with 

a threshold of $183,000. The Mexico 

thresholds remain unchanged. 

Contracting officers will be required to 

use the revised provisions and clauses 

as prescribed that reflect the USMCA 

requirements. 

Based on fiscal year 2019 data from 

the Federal Procurement Data System, 

22,050 unique small entities were 

awarded DoD contracts. Impacts to 

small businesses are anticipated to be 

negligible, since Canada remains a WTO 

GPA designated country, and a 

qualifying country, with a threshold of 

$183,000, and the Mexico thresholds 

remain unchanged. 

This proposed rule does not include 

any new reporting, recordkeeping, or 

other compliance requirements for small 

entities. The rule does not impose 

additional information collection 

requirements to the paperwork burden 

previously approved by the Office of 

Management and Budget (OMB) under 

the Paperwork Reduction Act (44 U.S.C. 

chapter 35), Control Number 0704– 

0229, DFARS part 225, Foreign 

Acquisition, and Related Clauses at 

252.225; DD Form 2139. 

The rule does not duplicate, overlap, 

or conflict with any other Federal rules. 

There are no known significant 

alternative approaches to the rule that 

would meet the requirements of the 

USMCA Implementation Act. 

DoD invites comments from small 

business concerns and other interested 

parties on the expected impact of this 

rule on small entities. 

DoD will also consider comments 

from small entities concerning the 

existing regulations in subparts affected 

by this rule in accordance with 5 U.S.C. 

610. Interested parties must submit such 

comments separately and should cite 5 

U.S.C. 610 (DFARS Case 2020–D032), in 

correspondence. 

VIII. Paperwork Reduction Act 

The rule affects information collection 

requirements in the provisions at 

252.225–7018, Photovoltaic Devices— 

Certificate, and 252.225–7035, Buy 

American—Free Trade Agreements— 

Balance of Payments Program 

Certificate; and the clauses at 252.225– 

7013, Duty-Free Entry, and 252.225– 

7021, Alternate II, Trade Agreements, 

currently approved under OMB Control 

Number 0704–0229 in accordance with 

the Paperwork Reduction Act (44 U.S.C. 

chapter 35). The impact, however, is 

negligible because the rule merely 

removes Canada as a Free Trade 

Agreement country. 


khammond on DSKJM1Z7X2PROD with PROPOSALS
Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Proposed Rules 11005 

List of Subjects in 48 CFR Parts 212, 

225, and 252 

Government procurement. 

Jennifer D. Johnson, 

Editor/Publisher, Defense Acquisition 

Regulations System. 

Therefore, 48 CFR parts 212, 225, and 

252 are proposed to be amended as 

follows: 

■ 1. The authority citation for 48 CFR 

parts 212, 225, and 252 continues to 

read as follows: 

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

chapter 1. 

PART 212—ACQUISITION OF 

COMMERCIAL ITEMS 

212.301 [Amended] 

■ 2. Amend section 212.301 in 

paragraphs (f)(ix)(M) introductory text, 

(f)(ix)(N) introductory text, (f)(ix)(V) 

introductory text, and (f)(ix)(W) 

introductory text by removing ‘‘3301 

note’’ and adding ‘‘4501–4732’’ 

wherever it appears. 

PART 225—FOREIGN ACQUISITION 

225.1101 [AMENDED] 

■ 3. Amend section 225.1101 in 

paragraphs (10)(i) introductory text and 

(10)(i)(B) and (D) by removing the term 

‘‘equals or exceeds $25,000, but’’. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 4. Amend section 252.225–7013 by— 

■ a. Revising the section heading and 

date of the clause; and 

■ b. In paragraph (a), revising the 

definition of ‘‘Eligible product’’. 

The revisions read as follows: 

252.225–7013 Duty-Free Entry. 

* * * * * 

Duty-Free Entry (Date) 

(a) * * * 

Eligible product means— 

(1) Designated country end product, 

as defined in the Trade Agreements 

(either basic or alternate) clause of this 

contract; 

(2) Free Trade Agreement country end 

product, other than a Bahrainian end 

product, a Moroccan end product, a 

Panamanian end product, or a Peruvian 

end product, as defined in the Buy 

American—Free Trade Agreements— 

Balance of Payments Program (either 

basic or alternate II) clause of this 

contract; or 

(3) Free Trade Agreement country end 

product other than a Bahrainian end 

product, Korean end product, Moroccan 

end product, Panamanian end product, 

or Peruvian end product, as defined in 

the Buy American—Free Trade 

Agreements—Balance of Payments 

Program (either alternate IV or alternate 

V) clause of this contract. 

* * * * * 

■ 5. Amend section 252.225–7017 by— 

■ a. Revising the date of the clause; 

■ b. In paragraph (a)— 

■ i. Removing the definition of 

‘‘Canadian photovoltaic device’’; and 

■ ii. In the definitions of ‘‘Designated 

country’’, paragraph (2), and ‘‘Free 

Trade Agreement country’’ removing 

‘‘Canada,’’; 

■ c. In paragraph (c)(1), removing 

‘‘$25,000’’ and adding ‘‘$92,319’’ in its 

place; 

■ d. Removing paragraph (c)(2); and 

■ e. Redesignating paragraphs (c)(3), (4), 

and (5) as paragraphs (c)(2), (3), and (4). 

The revision reads as follows: 

252.225–7017 Photovoltaic Devices. 

* * * * * 

Photovoltaic Devices (Date) 

* * * * * 

252.225–7018 [Amended] 

■ 6. Amend section 252.225–7018 by— 

■ a. Revising the date of the provision; 

■ b. In paragraph (a), removing 

‘‘Canadian photovoltaic device,’’; 

■ c. In paragraph (c), removing 

‘‘$25,000’’ and adding ‘‘$92,319’’ in its 

place; 

■ d. In paragraph (d)(2) introductory 

text, removing ‘‘$25,000’’ and adding 

‘‘$92,319’’ in its place; and 

■ e. Revising paragraph (d)(3). 

The revisions read as follows: 

252.225–7018 Photovoltaic Devices— 

Certificate. 

* * * * * 

Photovoltaic Devices—Certificate (Date) 

* * * * * 

(d) * * * 

(3) If less than $92,319— 

ll(i) The offeror certifies that each 

photovoltaic device to be utilized in 

performance of the contract is a 

domestic photovoltaic device; 

ll(ii) The offeror certifies that each 

photovoltaic device to be utilized in 

performance of the contract is a 

qualifying country photovoltaic device 

[Offeror to specify country of origin 

ll]; or 

ll(iii) The foreign photovoltaic 

devices to be utilized in performance of 

the contract are the product of ll. 

[Offeror to specify country of origin, if 

known, and provide documentation that 

the cost of a domestic photovoltaic 

device would be unreasonable in 

comparison to the cost of the proposed 

foreign photovoltaic device, i.e. that the 

price of the foreign photovoltaic device 

plus 50 percent is less than the price of 

a comparable domestic photovoltaic 

device.] 

* * * * * 

■ 7. Amend section 252.225–7021 by— 

■ a. Revising the section heading and 

date of the clause; 

■ b. In paragraph (a)— 

■ i. In the definition of ‘‘Caribbean 

Basin Country end product’’, 

redesignating paragraphs (i) 

introductory text, (i)(A) and (B), (ii) 

introductory text, and (ii)(A), (B), and 

(C) as paragraphs (1) introductory text, 

(1)(i) and (ii), (2) introductory text, and 

(2)(i), (ii), and (iii), respectively; 

■ ii. In the definition of ‘‘Commercially 

available off-the-shelf (COTS) item’’, 

redesignating paragraphs (i) 

introductory text, (i)(A), (B), and (C), 

and (ii) as paragraphs (1) introductory 

text, (1)(i), (ii), and (iii), and (2), 

respectively; 

■ iii. In the definition of ‘‘Designated 

country’’, redesignating paragraphs (i) 

through (iv) as paragraphs (1) through 

(4), respectively; and in the newly 

redesignated paragraph (2), removing 

‘‘Canada,’’; 

■ iv. In the definitions of ‘‘Free Trade 

Agreement country end product’’ and 

‘‘Least developed country end product’’, 

redesignating paragraphs (i) and (ii) as 

paragraphs (1) and (2), respectively; 

■ v. In the definition of ‘‘Qualifying 

country end product’’, redesignating 

paragraphs (i), (ii) introductory text, 

(ii)(A) introductory text, (ii)(A)(1), (2), 

and (3), and (ii)(B) as paragraphs (1), (2) 

introductory text, (2)(i) introductory 

text, (2)(i)(A), (B), and (C), and (2)(ii), 

respectively; and 

■ vi. In the definitions of ‘‘U.S.-made 

end product’’ and ‘‘WTO GPA country 

end product’’, redesignating paragraphs 

(i) and (ii) as paragraphs (1) and (2), 

respectively; 

■ c. In paragraph (e) introductory text, 

removing ‘‘on the Internet’’; and 

■ d. In Alternate II— 

■ i. Revising the date of the clause; 

■ ii. In paragraph (a)— 

■ A. In the definition of ‘‘Caribbean 

Basin Country end product’’, 

redesignating paragraphs (i) 

introductory text, (i)(A) and (B), (ii) 

introductory text, and (ii)(A), (B), and 

(C) as paragraphs (1) introductory text, 

(1)(i) and (ii), (2) introductory text, and 

(2)(i), (ii), and (iii), respectively; 

■ B. In the definition of ‘‘Commercially 

available off-the-shelf (COTS) item’’, 

redesignating paragraphs (i) 

introductory text, (i)(A), (B), and (C), 

and (ii) as paragraphs (1) introductory 

text, (1)(i), (ii), and (iii), and (2), 

respectively; 


khammond on DSKJM1Z7X2PROD with PROPOSALS
11006 Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Proposed Rules 

■ C. In the definition of ‘‘Designated 

country’’, redesignating paragraphs (i) 

through (iv) as paragraphs (1) through 

(4), respectively; and in the newly 

redesignated paragraph (2), removing 

‘‘Canada,’’; 

■ D. In the definitions of ‘‘Free Trade 

Agreement country end product’’ and 

‘‘Least developed country end product’’, 

redesignating paragraphs (i) and (ii) as 

paragraphs (1) and (2), respectively; 

■ E. In the definition of ‘‘Qualifying 

country end product’’, redesignating 

paragraphs (i), (ii) introductory text, 

(ii)(A) introductory text, (ii)(A)(1), (2), 

and (3), and (ii)(B) as paragraphs (1), (2) 

introductory text, (2)(i) introductory 

text, (2)(i)(A), (B), and (C), and (2)(ii), 

respectively; and 

■ F. In the definitions of ‘‘South 

Caucasus/Central and South Asian (SC/ 

CASA) state end product’’, ‘‘U.S.-made 

end product’’, and ‘‘WTO GPA country 

end product’’, redesignating paragraphs 

(i) and (ii) as paragraphs (1) and (2), 

respectively; and 

■ iii. In paragraph (f) introductory text, 

removing ‘‘on the Internet’’. 

The revisions read as follows: 

252.225–7021 Trade Agreements. 

* * * * * 

Trade Agreements—Basic (Date) 

* * * * * 

Trade Agreements–Alternate II (Date) 

* * * * * 

■ 8. Amend section 252.225–7035 by— 

■ a. Revising the provision date; 

■ b. In paragraph (b)(1), removing 

‘‘Part’’ and adding ‘‘part’’ in its place; 

■ c. In paragraph (c)(2)(i), removing ‘‘or 

Canadian’’; 

■ d. In Alternate I— 

■ i. Revising the introductory text and 

the provision date; 

■ ii. In paragraph (a)— 

■ A. Removing ‘‘Canadian end 

product,’’; 

■ B. Removing ‘‘commercially available 

off-the-shelf (COTS) item’’ and adding 

‘‘Commercially available off-the-shelf 

(COTS) item’’ in its place; 

■ iii. In paragraph (b)(2), removing ‘‘or 

Canadian end products’’; and 

■ iv. Revising paragraph (c)(2); 

■ e. In Alternate II— 

■ i. Revising the provision date; and 

■ ii. In paragraph (c)(2)(i), removing ‘‘or 

Canadian’’; 

■ f. In Alternate III— 

■ i. Revising the provision date; 

■ ii. In paragraph (a)— 

■ A. Removing ‘‘Canadian end 

product,’’; 

■ B. Removing ‘‘commercially available 

off-the-shelf (COTS) item’’ and adding 

‘‘Commercially available off-the-shelf 

(COTS) item’’ in its place; 

■ iii. In paragraph (b)(2), removing ‘‘or 

Canadian end products’’; and 

■ iv. In paragraph (c)(2)(i), removing 

‘‘(except Canadian)’’; 

■ g. In Alternate IV— 

■ i. Revising the provision date; and 

■ ii. In paragraph (c)(2)(i), removing ‘‘or 

Canadian’’; and 

■ h. In Alternate V— 

■ i. Revising the provision date; and 

■ ii. In paragraph (c)(2)(i), removing ‘‘or 

Canadian’’. 

The revisions read as follows: 

252.225–7035 Buy American—Free Trade 

Agreements—Balance of Payments 

Program Certificate. 

* * * * * 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program Certificate—Basic (Date) 

* * * * * 

Alternate I. As prescribed in 

225.1101(9) and (9)(ii), use the 

following provision, which does not use 

the phrases Bahrainian end product, 

Free Trade Agreement country, Free 

Trade Agreement country end product, 

Moroccan end product, Panamanian 

end product, and Peruvian end products 

in paragraph (a) of the basic provision; 

does not use ‘‘Free Trade Agreement 

country end products other than 

Bahrainian end products, Moroccan end 

products, Panamanian end products, or 

Peruvian end products’’ in paragraphs 

(b)(2) and (c)(2)(ii) of the basic 

provision; and does not use ‘‘Australian 

or’’ in paragraph (c)(2)(i): 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program Certificate—Alternate I (Date) 

* * * * * 

(c) * * * 

(2) The offeror shall identify all end 

products that are not domestic end 

products. 

(i) The offeror certifies that the 

following supplies are qualifying 

country end products: 

(Line Item Number) (Country of Origin) 

(ii) The following supplies are other 

foreign end products, including end 

products manufactured in the United 

States that do not qualify as domestic 

end products, i.e., an end product that 

is not a COTS item and does not meet 

the component test in paragraph (ii) of 

the definition of ‘‘domestic end 

product’’: 

(Line Item Number) (Country of Origin 

(If known)) 

* * * * * 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program Certificate—Alternate II (Date) 

* * * * * 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program Certificate—Alternate III 

(Date) 

* * * * * 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program Certificate—Alternate IV 

(Date) 

* * * * * 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program Certificate—Alternate V (Date) 

* * * * * 

■ 9. Amend section 252.225–7036 by— 

■ a. Revising the clause date; 

■ b. In paragraph (a)— 

■ i. In the definition of ‘‘Bahrainian end 

product’’, redesignating paragraphs (i) 

and (ii) as paragraphs (1) and (2), 

respectively; 

■ ii. In the definition of ‘‘Commercially 

available off-the-shelf (COTS) item’’, 

redesignating paragraphs (i) 

introductory text, (i)(A), (B), and (C), 

and (ii) as paragraphs (1) introductory 

text, (1)(i), (ii), and (iii), and (2), 

respectively; 

■ iii. In the definition of ‘‘Domestic end 

product’’, redesignating paragraphs (i), 

(ii) introductory text, (ii)(A) 

introductory text, (ii)(A)(1) and (2), 

(ii)(B) as paragraphs (1), (2) introductory 

text, (2)(i) introductory text, (2)(i)(A) 

and (B), and (2)(ii); 

■ iv. In the definition of ‘‘Free Trade 

Agreement country’’, removing 

‘‘Canada,’’; 

■ v. In the definitions of ‘‘Free Trade 

Agreement country end product’’, 

‘‘Moroccan end product’’, ‘‘Panamanian 

end product’’, and ‘‘Peruvian end 

product’’, redesignating paragraphs (i) 

and (ii) as paragraphs (1) and (2), 

respectively; and 

■ vi. In the definition of ‘‘Qualifying 

country end product’’, redesignating 

paragraphs (i), (ii) introductory text, 

(ii)(A) introductory text, (ii)(A)(1), (2), 

and (3), and (ii)(B) as paragraphs (1), (2) 

introductory text, (2)(i) introductory 

text, (2)(i)(A), (B), and (C), and (2)(ii), 

respectively; 

■ c. In Alternate I— 

■ i. Revising the introductory text and 

the clause date; 

■ ii. In paragraph (a)— 

■ A. In the definition of ‘‘Bahrainian 

end product’’, redesignating paragraphs 

(i) and (ii) as paragraphs (1) and (2), 

respectively; 


khammond on DSKJM1Z7X2PROD with PROPOSALS
Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Proposed Rules 11007 

■ B. Removing the definition of 

‘‘Canadian end product’’; 

■ C. In the definition of ‘‘Commercially 

available off-the-shelf (COTS) item’’, 

redesignating paragraphs (i) 

introductory text, (i)(A), (B), and (C), 

and (ii) as paragraphs (1) introductory 

text, (1)(i), (ii), and (iii), and (2), 

respectively; 

■ D. In the definition of ‘‘Domestic end 

product’’, redesignating paragraphs (i), 

(ii) introductory text, (ii)(A) 

introductory text, (ii)(A)(1) and (2), 

(ii)(B) as paragraphs (1), (2) introductory 

text, (2)(i) introductory text, (2)(i)(A) 

and (B), and (2)(ii); 

■ E. In the definition of ‘‘Free Trade 

Agreement country’’, removing 

‘‘Canada,’’; 

■ F. In the definitions of ‘‘Free Trade 

Agreement country end product’’, 

‘‘Moroccan end product’’, ‘‘Panamanian 

end product’’, and ‘‘Peruvian end 

product’’, redesignating paragraphs (i) 

and (ii) as paragraphs (1) and (2), 

respectively; and 

■ G. In the definition of ‘‘Qualifying 

country end product’’, redesignating 

paragraphs (i), (ii) introductory text, 

(ii)(A) introductory text, (ii)(A)(1), (2), 

and (3), and (ii)(B) as paragraphs (1), (2) 

introductory text, (2)(i) introductory 

text, (2)(i)(A), (B), and (C), and (2)(ii), 

respectively; and iii. In paragraph (c), 

removing ‘‘, Canadian’’, ‘‘or a Canadian 

end product’’, and ‘‘, a Canadian end 

product,’’; 

■ d. In Alternate II— 

■ i. Revising the clause date; and 

■ ii. In paragraph (a)— 

■ A. In the definition of ‘‘Bahrainian 

end product’’, redesignating paragraphs 

(i) and (ii) as paragraphs (1) and (2), 

respectively; 

■ B. In the definition of ‘‘Commercially 

available off-the-shelf (COTS) item’’, 

redesignating paragraphs (i) 

introductory text, (i)(A), (B), and (C), 

and (ii) as paragraphs (1) introductory 

text, (1)(i), (ii), and (iii), and (2), 

respectively; 

■ C. In the definition of ‘‘Domestic end 

product’’, redesignating paragraphs (i), 

(ii) introductory text, (ii)(A) 

introductory text, (ii)(A)(1) and (2), 

(ii)(B) as paragraphs (1), (2) introductory 

text, (2)(i) introductory text, (2)(i)(A) 

and (B), and (2)(ii); 

■ D. In the definition of ‘‘Free Trade 

Agreement country’’, removing 

‘‘Canada,’’; 

■ E. In the definitions of ‘‘Free Trade 

Agreement country end product’’, 

‘‘Moroccan end product’’, ‘‘Panamanian 

end product’’, and ‘‘Peruvian end 

product’’ redesignating paragraphs (i) 

and (ii) as paragraphs (1) and (2), 

respectively; 

■ F. In the definition of ‘‘Qualifying 

country end product’’, redesignating 

paragraphs (i), (ii) introductory text, 

(ii)(A) introductory text, (ii)(A)(1), (2), 

and (3), and (ii)(B) as paragraphs (1), (2) 

introductory text, (2)(i) introductory 

text, (2)(i)(A), (B), and (C), and (2)(ii), 

respectively; and 

■ G. In the definition of ‘‘South 

Caucasus/Central and South Asian (SC/ 

CASA) state end product’’, 

redesignating paragraphs (i) and (ii) as 

paragraphs (1) and (2), respectively; 

■ e. In Alternate III— 

■ i. Revising the introductory text and 

the clause date; 

■ ii. In paragraph (a)— 

■ A. In the definition of ‘‘Bahrainian 

end product’’, redesignating paragraphs 

(i) and (ii) as paragraphs (1) and (2), 

respectively; 

■ B. Removing the definition of 

‘‘Canadian end product’’; 

■ C. In the definition of ‘‘Commercially 

available off-the-shelf (COTS) item’’, 

redesignating paragraphs (i) 

introductory text, (i)(A), (B), and (C), 

and (ii) as paragraphs (1) introductory 

text, (1)(i), (ii), and (iii), and (2), 

respectively; 

■ D. In the definition of ‘‘Domestic end 

product’’, redesignating paragraphs (i), 

(ii) introductory text, (ii)(A) 

introductory text, (ii)(A)(1) and (2), 

(ii)(B) as paragraphs (1), (2) introductory 

text, (2)(i) introductory text, (2)(i)(A) 

and (B), and (2)(ii); 

■ E. In the definition of ‘‘Free Trade 

Agreement country’’, removing 

‘‘Canada,’’; 

■ F. In the definitions of ‘‘Free Trade 

Agreement country end product’’, 

‘‘Moroccan end product’’, ‘‘Panamanian 

end product’’, and ‘‘Peruvian end 

product’’, redesignating paragraphs (i) 

and (ii) as paragraphs (1) and (2), 

respectively; 

■ G. In the definition of ‘‘Qualifying 

country end product’’, redesignating 

paragraphs (i), (ii) introductory text, 

(ii)(A) introductory text, (ii)(A)(1), (2), 

and (3), and (ii)(B) as paragraphs (1), (2) 

introductory text, (2)(i) introductory 

text, (2)(i)(A), (B), and (C), and (2)(ii), 

respectively; and 

■ H. In the definition of ‘‘South 

Caucasus/Central and South Asian (SC/ 

CASA) state end product’’, 

redesignating paragraphs (i) and (ii) as 

paragraphs (1) and (2), respectively; and 

■ iii. Revising paragraph (c); 

■ f. In Alternate IV— 

■ i. Revising the clause date; and 

■ ii. In paragraph (a)— 

■ A. In the definition of ‘‘Bahrainian 

end product’’, redesignating paragraphs 

(i) and (ii) as paragraphs (1) and (2), 

respectively; 

■ B. In the definition of ‘‘Commercially 

available off-the-shelf (COTS) item’’, 

redesignating paragraphs (i) 

introductory text, (i)(A), (B), and (C), 

and (ii) as paragraphs (1) introductory 

text, (1)(i), (ii), and (iii), and (2), 

respectively; 

■ C. In the definition of ‘‘Domestic end 

product’’, redesignating paragraphs (i), 

(ii) introductory text, (ii)(A) 

introductory text, (ii)(A)(1) and (2), 

(ii)(B) as paragraphs (1), (2) introductory 

text, (2)(i) introductory text, (2)(i)(A) 

and (B), and (2)(ii); 

■ D. In the definition of ‘‘Free Trade 

Agreement country’’, removing 

‘‘Canada,’’; 

■ E. In the definitions of ‘‘Free Trade 

Agreement country end product’’, 

‘‘Korean end product’’, ‘‘Moroccan end 

product’’, ‘‘Panamanian end product’’, 

and ‘‘Peruvian end product’’, 

redesignating paragraphs (i) and (ii) as 

paragraphs (1) and (2), respectively; and 

■ F. In the definition of ‘‘Qualifying 

country end product’’, redesignating 

paragraphs (i), (ii) introductory text, 

(ii)(A) introductory text, (ii)(A)(1), (2), 

and (3), and (ii)(B) as paragraphs (1), (2) 

introductory text, (2)(i) introductory 

text, (2)(i)(A), (B), and (C), and (2)(ii), 

respectively; and 

■ g. In Alternate V— 

■ i. Revising the clause date; and 

■ ii. In paragraph (a)— 

■ A. In the definition of ‘‘Bahrainian 

end product’’, redesignating paragraphs 

(i) and (ii) as paragraphs (1) and (2), 

respectively; 

■ B. In the definition of ‘‘Commercially 

available off-the-shelf (COTS) item’’, 

redesignating paragraphs (i) 

introductory text, (i)(A), (B), and (C), 

and (ii) as paragraphs (1) introductory 

text, (1)(i), (ii), and (iii), and (2), 

respectively; 

■ C. In the definition of ‘‘Domestic end 

product’’, redesignating paragraphs (i), 

(ii) introductory text, (ii)(A) 

introductory text, (ii)(A)(1) and (2), and 

(ii)(B) as paragraphs (1), (2) introductory 

text, (2)(i) introductory text, (2)(i)(A) 

and (B), and (2)(ii), respectively; 

■ D. In the definition of ‘‘Free Trade 

Agreement country’’, removing 

‘‘Canada,’’; 

■ E. In the definitions of ‘‘Free Trade 

Agreement country end product’’, 

‘‘Korean end product’’, ‘‘Moroccan end 

product’’, ‘‘Panamanian end product’’, 

and ‘‘Peruvian end product’’, 

redesignating paragraphs (i) and (ii) as 

paragraphs (1) and (2), respectively; 

■ F. In the definition of ‘‘Qualifying 

country end product’’, redesignating 

paragraphs (i), (ii) introductory text, 

(ii)(A) introductory text, (ii)(A)(1), (2), 

and (3), and (ii)(B) as paragraphs (1), (2) 

introductory text, (2)(i) introductory 

text, (2)(i)(A), (B), and (C), and (2)(ii), 

respectively; and 


khammond on DSKJM1Z7X2PROD with PROPOSALS
11008 Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Proposed Rules 

■ G. In the definition of ‘‘South 

Caucasus/Central and South Asian (SC/ 

CASA) state end product’’, 

redesignating paragraphs (i) and (ii) as 

paragraphs (1) and (2), respectively. 

The revisions read as follows: 

252.225–7036 Buy American—Free Trade 

Agreements—Balance of Payments 

Program. 

* * * * * 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program—Basic (Date) 

* * * * * 

Alternate I. As prescribed in 

225.1101(10)(i) and (10)(i)(B), use the 

following clause, which uses a different 

paragraph (c) than the basic clause: 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program—Alternate I (Date) 

* * * * * 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program—Alternate II (Date) 

* * * * * 

Alternate III. As prescribed in 

225.1101(10)(i) and (10)(i)(D), use the 

following clause, which adds South 

Caucasus/Central and South Asian (SC/ 

CASA) state and South Caucasus/ 

Central and South Asian (SC/CASA) 

state end product to paragraph (a) and 

uses a different paragraph (c) than the 

basic clause: 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program—Alternate III (Date) 

* * * * * 

(c) The Contractor shall deliver under 

this contract only domestic end 

products unless, in its offer, it specified 

delivery of qualifying country end 

products, SC/CASA state end products, 

or other foreign end products in the Buy 

American—Free Trade Agreements— 

Balance of Payments Program 

Certificate—Alternate III provision of 

the solicitation. If the Contractor 

certified in its offer that it will deliver 

a qualifying country end product or SC/ 

CASA state end products, the Contractor 

shall deliver a qualifying country end 

product, an SC/CASA state end product, 

or, at the Contractor’s option, a domestic 

end product. 

* * * * * 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program—Alternate IV (Date) 

* * * * * 

Buy American—Free Trade 

Agreements—Balance of Payments 

Program—Alternate V (Date) 

* * * * * 

■ 10. Amend section 252.225–7045 by— 

■ a. Revising the clause date; 

■ b. In paragraph (a)— 

■ i. In the definition of ‘‘Caribbean 

Basin country construction material’’, 

redesignating paragraphs (i) and (ii) as 

paragraphs (1) and (2), respectively; 

■ ii. In the definition of ‘‘Commercially 

available off-the-shelf (COTS) item’’, 

redesignating paragraphs (i) 

introductory text, (i)(A), (B), and (C), 

and (ii) as paragraphs (1) introductory 

text, (1)(i), (ii), and (iii), and (2), 

respectively; 

■ iii. In the definition of ‘‘Cost of 

components’’, redesignating paragraphs 

(i) and (ii) as paragraphs (1) and (2), 

respectively; 

■ iv. In the definition of ‘‘Designated 

country’’, redesignating paragraphs (i), 

(ii), (iii), and (iv) as paragraphs (1), (2), 

(3), and (4), respectively; and in the 

newly redesignated paragraph (2), 

removing ‘‘Canada,’’; 

■ iv. In the definition of ‘‘Domestic 

construction material’’, redesignating 

paragraphs (i), (ii) introductory text, and 

(ii)(A) and (B) as paragraphs (1), (2) 

introductory text, and (2)(i) and (ii), 

respectively; and 

■ v. In the definitions of ‘‘Free Trade 

Agreement country construction 

material’’, ‘‘Least developed country 

construction material’’, and ‘‘WTO GPA 

country construction material’’, 

redesignating paragraphs (i) and (ii) as 

paragraphs (1) and (2), respectively; 

■ c. In Alternate I— 

■ i. Revising the clause date; 

■ ii. In paragraph (a)— 

■ A. In the definitions of ‘‘Bahrainian or 

Mexican construction material’’ and 

‘‘Caribbean Basin country construction 

material’’, redesignating paragraphs (i) 

and (ii) as paragraphs (1) and (2), 

respectively; 

■ B. In the definition of ‘‘Commercially 

available off-the-shelf (COTS) item’’, 

redesignating paragraphs (i) 

introductory text, (i)(A), (B), and (C), 

and (ii) as paragraphs (1) introductory 

text, (1)(i), (ii), and (iii), and (2), 

respectively; 

■ C. In the definition of ‘‘Cost of 

components’’, redesignating paragraphs 

(i) and (ii) as paragraphs (1) and (2), 

respectively; 

■ D. In the definition of ‘‘Designated 

country’’, redesignating paragraphs (i), 

(ii), (iii), and (iv) as paragraphs (1), (2), 

(3), and (4), respectively; and in the 

newly redesignated paragraph (2), 

removing ‘‘Canada,’’; 

■ E. In the definition of ‘‘Domestic 

construction material’’, redesignating 

paragraphs (i), (ii) introductory text, and 

(ii)(A) and (B) as paragraphs (1), (2) 

introductory text, and (2)(i) and (ii), 

respectively; and 

■ F. In the definitions of ‘‘Free Trade 

Agreement country construction 

material’’, ‘‘Least developed country 

construction material’’, and ‘‘WTO GPA 

country construction material’’, 

redesignating paragraphs (i) and (ii) as 

paragraphs (1) and (2), respectively; and 

■ iii. In paragraph (b), removing 

‘‘NAFTA’’ and adding ‘‘United StatesMexico-Canada Agreement’’ in its place; 

■ d. In Alternate II— 

■ i. Revising the clause date; and 

■ ii. In paragraph (a)— 

■ A. In the definition of ‘‘Caribbean 

Basin country construction material’’, 

redesignating paragraphs (i) and (ii) as 

paragraphs (1) and (2), respectively; 

■ B. In the definition of ‘‘Commercially 

available off-the-shelf (COTS) item’’, 

redesignating paragraphs (i) 

introductory text, (i)(A), (B), and (C), 

and (ii) as paragraphs (1) introductory 

text, (1)(i), (ii), and (iii), and (2), 

respectively; 

■ C. In the definition of ‘‘Cost of 

components’’, redesignating paragraphs 

(i) and (ii) as paragraphs (1) and (2), 

respectively; 

■ D. In the definition of ‘‘Designated 

country’’, redesignating paragraphs (i), 

(ii), (iii), and (iv) as paragraphs (1), (2), 

(3), and (4), respectively; and in the 

newly redesignated paragraph (2), 

removing ‘‘Canada,’’; 

■ E. In the definition of ‘‘Domestic 

construction material’’, redesignating 

paragraphs (i), (ii) introductory text, and 

(ii)(A) and (B) as paragraphs (1), (2) 

introductory text, and (2)(i) and (ii), 

respectively; and 

■ F. In the definitions of ‘‘Free Trade 

Agreement country construction 

material’’, ‘‘Least developed country 

construction material’’, ‘‘SC/CASA state 

construction material’’, and ‘‘WTO GPA 

country construction material’’, 

redesignating paragraphs (i) and (ii) as 

paragraphs (1) and (2), respectively; and 

■ e. In Alternate III— 

■ i. Revising the clause date; 

■ ii. In paragraph (a)— 

■ A. In the definition of ‘‘Caribbean 

Basin country construction material’’, 

redesignating paragraphs (i) and (ii) as 

paragraphs (1) and (2), respectively; 

■ B. In the definition of ‘‘Commercially 

available off-the-shelf (COTS) item’’, 

redesignating paragraphs (i) 

introductory text, (i)(A), (B), and (c), and 

(ii) as paragraphs (1) introductory text, 

(1)(i), (ii), and (iii), and (2), respectively; 

■ C. In the definition of ‘‘Cost of 

components’’, redesignating paragraphs 

(i) and (ii) as paragraphs (1) and (2), 

respectively; 


khammond on DSKJM1Z7X2PROD with PROPOSALS
Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Proposed Rules 11009 

■ D. In the definition of ‘‘Designated 

country’’, redesignating paragraphs (i), 

(ii), (iii), and (iv) as paragraphs (1), (2), 

(3), and (4), respectively; and in the 

newly redesignated paragraph (2), 

removing ‘‘Canada,’’; 

■ E. In the definition of ‘‘Domestic 

construction material’’, redesignating 

paragraphs (i), (ii) introductory text, 

(ii)(A) and (B) as paragraphs (1), (2) 

introductory text, and (2)(i) and (ii), 

respectively; and 

■ F. In the definitions of ‘‘Free Trade 

Agreement country construction 

material’’, ‘‘Least developed country 

construction material’’, ‘‘SC/CASA state 

construction material’’, and ‘‘WTO GPA 

country construction material’’, 

redesignating paragraphs (i) and (ii) as 

paragraphs (1) and (2), respectively; and 

■ iii. In paragraph (b) removing 

‘‘NAFTA’’ and adding ‘‘United StatesMexico-Canada Agreement’’ in its place. 

The revisions read as follows: 

252.225–7045 Balance of Payments 

Program—Construction Material Under 

Trade Agreements. 

* * * * * 

Balance of Payments Program— 

Construction Material Under Trade 

Agreements—Basic (Date) 

* * * * * 

Balance of Payments Program— 

Construction Material Under Trade 

Agreements—Alternate I (Date) 

* * * * * 

Balance of Payments Program— 

Construction Material Under Trade 

Agreements—Alternate II (Date) 

* * * * * 

Balance of Payments Program— 

Construction Material Under Trade 

Agreements—Alternate III (Date) 

* * * * * 

[FR Doc. 2022–04009 Filed 2–25–22; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Chapter 2 

[Docket DARS–2022–0002] 

RIN 0750–AK96 

Defense Federal Acquisition 

Regulation Supplement: 

Reauthorization and Improvement of 

Mentor-Prote ́ge ́ Program (DFARS Case 

2020–D009) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Proposed rule. 

SUMMARY: DoD is proposing to amend 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

implement a section of the National 

Defense Authorization Act for Fiscal 

Year 2020 that reauthorizes and 

modifies the DoD Mentor-Prote ́ge ́

Program. 

DATES: Comments on the proposed rule 

should be submitted in writing to the 

address shown below on or before April 

29, 2022 to be considered in the 

formation of a final rule. 

ADDRESSES: Submit comments 

identified by DFARS 2020–D009, using 

any of the following methods: 

Æ Federal eRulemaking Portal: 

https://www.regulations.gov. Search for 

‘‘DFARS Case 2020–D009’’ in the search 

box and select ‘‘Search.’’ Select 

‘‘Comment’’ and follow the instructions 

to submit a comment. Please include 

your name, company name (if any), and 

‘‘DFARS Case 2020–D009’’ on any 

attached document. 

Æ Email: osd.dfars@mail.mil. Include 

DFARS Case 2020–D009 in the subject 

line of the message. 

Comments received generally will be 

posted without change to https://

www.regulations.gov, including any 

personal information provided. To 

confirm receipt of your comment(s), 

please check https://

www.regulations.gov, approximately 

two to three days after submission to 

verify posting. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Jeanette Snyder, 571–372–6106. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD is proposing to revise the DFARS 

to implement section 872 of the 

National Defense Authorization Act 

(NDAA) for Fiscal Year (FY) 2020 (Pub. 

L. 116–92). Section 872 modifies 

subsection (j) of section 831 of the 

NDAA for FY 1991 (Pub. L. 101–510; 10 

U.S.C. 2302 note) to reauthorize and 

improve the DoD Mentor-Prote ́ge ́

Program. Section 872 extends the date 

for entering into a mentor-prote ́ge ́

agreement, extends the date for 

reimbursement of mentors, limits the 

term for program participation, extends 

the date for a mentor to receive credit 

toward the attainment of small business 

subcontracting goals, and expands 

eligibility for prote ́ge ́ firms. 

II. Discussion and Analysis 

This proposed rule includes changes 

to DFARS subpart 219.71 and DFARS 

appendix I to implement section 872 of 

the NDAA for FY 2020 to reauthorize 

and improve the DoD Mentor-Prote ́ge ́

Program (the Program). This proposed 

rule— 

—Reauthorizes the Program by 

extending the date for entering into a 

mentor-prote ́ge ́ agreement from 

September 30, 2018, to September 30, 

2024; 

—Extends the date for mentor 

reimbursements to be paid for 

developmental assistance costs 

incurred under the Program from 

September 30, 2021, to September 30, 

2026; 

—Extends the date for a mentor to 

receive, for developmental assistance 

costs incurred under the Program, 

credit toward attainment of the 

subcontracting goals in its small 

business subcontracting plan from 

September 30, 2021, to September 30, 

2026; 

—Limits the program participation term 

to two years, unless approval is 

otherwise obtained for an additional 

period not to exceed three years; 

—Expands the eligibility of a prote ́ge ́ by 

aligning its size with the size standard 

of its primary North American 

Industry Classification System 

(NAICS) code; and 

—Adds a DoD Office of Small Business 

Programs cybersecurity readiness 

assessment that will be provided to 

prote ́ge ́s. 

In addition, proposed amendments to 

appendix I include— 

—Updated definitions to align with the 

statute; 

—Addition of DoD’s right to terminate 

agreements for convenience; and 

—Other administrative and conforming 

changes. 


khammond on DSKJM1Z7X2PROD with PROPOSALS