Federal Register / Vol. 87, No. 102 / Thursday, May 26, 2022 / Rules and Regulations 31957 

Subpart II—North Carolina 

§ 52.1770 [Amended] 

■ 2. In § 52.1770(c), amend Table (1) 

‘‘EPA Approved North Carolina 

Regulations’’ by removing the entry for 

‘‘Section .0615.’’ 

[FR Doc. 2022–11290 Filed 5–25–22; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 212, 225, and 252 

[Docket DARS–2020–0031] 

RIN 0750–AK97 

Defense Federal Acquisition 

Regulation Supplement: Prohibition on 

Contracting With Persons That Have 

Business Operations With the Maduro 

Regime (DFARS Case 2020–D010) 

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 implement a statute that 

prohibits DoD from entering into 

contracts for the procurement of goods 

and services with any person that has 

business operations with an authority of 

the government of Venezuela that is not 

recognized as the legitimate government 

of Venezuela by the United States 

Government. 

DATES: Effective May 26, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Kimberly Bass, telephone 571–372– 

6174. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD published a proposed rule in the 

Federal Register at 85 FR 53751 on 

August 31, 2020, to implement section 

890 of the National Defense 

Authorization Act (NDAA) for Fiscal 

Year (FY) 2020 (Pub. L. 116–92). Section 

890 prohibits contracts for the 

procurement of goods and services with 

any person that has business operations 

with an authority of the government of 

Venezuela, subject to exceptions. Six 

respondents submitted public 

comments in response to the proposed 

rule. 

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 is provided, as follows: 

A. Summary of Significant Changes 

From the Proposed Rule 

To further clarify and to eliminate any 

ambiguity, the solicitation provision 

252.225–7055, Representation 

Regarding Business Operations with the 

Maduro Regime, was revised to clarify 

that ‘‘. . . by submission of its offer, the 

Offeror represents that the Offeror is a 

person that—(1) Does not have any 

business operations with an authority of 

the Maduro regime or the government of 

Venezuela that is not recognized as the 

legitimate government of Venezuela by 

the U.S. Government; or . . .’’. The 

contract clause 252.225–7056, 

Prohibition Regarding Business 

Operations with the Maduro Regime, 

applies to the entity that was awarded 

the contract. Therefore, no change was 

made to the clause. 

Additional revisions were made to the 

text and clause number designations to 

accommodate updated numerical 

designations required in the final rule. 

In addition, a revision was made to 

225.7020–4, Joint Determination, to 

explicitly state that delegation authority 

is to remain at the level of Secretary of 

Defense and Secretary of State without 

power of redelegation. 

B. Analysis of Public Comments 

1. Support for the Rule 

Comment: Several respondents 

provided overall support of the rule. A 

respondent expressed support for the 

rule because it is an effectual way to 

limit the Maduro regime’s access to 

American made or American preferred 

military technology. The respondent 

also expressed support for the 

exceptions for humanitarian aid. 

Another respondent supported the rule 

overall because limiting contracts is a 

push in opposition of the Maduro 

regime. A respondent commended the 

rule and hopes this is not a final step 

in solving unrest in Venezuela. 

Response: DoD acknowledges the 

respondents’ support for the rule. 

2. Joint Determination 

Comment: A respondent expressed 

concern that requiring a joint 

determination of both the Secretary of 

Defense and the Secretary of State that 

the restriction does not apply to certain 

acquisitions may limit the relief that can 

be provided to the people of Venezuela. 

Another respondent expressed similar 

concern with the high level of approval 

necessary for the joint determination 

and also expressed concern with the 

process for making the joint 

determination. A respondent included a 

list of proposed factors to consider in 

whether to seek a joint determination. A 

respondent further stated that there 

were no procedures or guidance on the 

Government determination process. 

Response: The proposed rule 

implements section 890 of the NDAA 

for FY 2020. Section 890 prohibits DoD 

from entering into a contract for the 

procurement of goods or services with 

any person that has business operations 

with an authority of the government of 

Venezuela that is not recognized as the 

legitimate government of Venezuela by 

the United States Government. Section 

890 does not apply the prohibition to 

acquisitions where the Secretary of 

Defense and Secretary of State have 

jointly determined that the acquisition 

is necessary for providing humanitarian 

assistance, disaster relief, or urgent 

lifesaving measures to the people of 

Venezuela; carrying out noncombatant 

evacuations; or is otherwise vital to U.S. 

national security interests. The process 

of the joint determination is in 

accordance with internal Government 

operating procedures. The rule’s 

implementation is consistent with the 

statutory requirements of section 890 

and does not allow for further 

delegation of the authority for the joint 

determination. Thus, the final rule 

implements the authority for the joint 

determination at the level of the 

Secretary of Defense and Secretary of 

State. 

3. National Security Waiver 

Comment: A couple of respondents 

provided questions relating to the lack 

of guidelines for securing a national 

security interest exception in the 

proposed rule. 

Response: The final rule is directly 

aligned with the statutory language and 

implements section 890 of the NDAA 

for FY 2020. The reference to national 

security interests appears in section 

890(b)(1)(A) and was implemented 

accordingly in DFARS 225.7020–4(a)(2) 

of the final rule. 

4. Definitions 

Comment: A respondent stated that 

the definition of ‘‘person’’ is overly 

broad and could adversely affect 

contracts held by businesses that have 

no operations in, or connections with, 

Venezuela. Another respondent further 

stated that in light of the broad 

definition of ‘‘person’’ and ‘‘business 

operations’’ in the rule, there is a lack 

of clarity in the solicitation provision 

252.225–7055 as to whether an ‘‘offeror’’ 

who certifies that it does not have any 

business operations with an authority of 


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31958 Federal Register / Vol. 87, No. 102 / Thursday, May 26, 2022 / Rules and Regulations 

the Maduro regime is submitting such 

statement on behalf of the offeror with 

a discrete unique identifier number or 

Commercial and Government Entity 

(CAGE) code or as ‘‘person’’ is defined 

under the proposed rule. The 

respondent also stated that the clause 

252.225–7056 is not clear on whether 

the clause requires the contractor, 

specifically the legal entity that was 

awarded the contract, to refrain from 

engaging in business with the Maduro 

regime or whether the obligation 

extends to the contractor’s ties within 

the definition of ‘‘person’’. 

Response: DoD acknowledges the 

respondent’s comment. The final rule 

implements and is aligned with the 

statutory language as provided in 

section 890 of the NDAA for FY 2020. 

There is no certification requirement per 

41 U.S.C. 1304; rather there is a 

representation requirement, which is 

less burdensome than a certification. To 

further explain and eliminate any 

ambiguity, the provision at DFARS 

252.225–7055 was revised to clarify that 

‘‘. . . by submission of its offer, the 

Offeror represents that the Offeror is a 

person that—(1) Does not have any 

business operations with an authority of 

the Maduro regime or the government of 

Venezuela that is not recognized as the 

legitimate government of Venezuela by 

the U.S. Government; or . . .’’. The 

clause at DFARS 252.225–7056 applies 

to the entity that was awarded the 

contract. Accordingly, no change was 

made to the clause. In addition, the 

definitions, defined in the provision in 

the proposed rule, are listed and a crossreference added to point to those terms 

being defined in the clause. 

5. Adverse Impacts 

Comment: A respondent commented 

that the proposed rule would have 

adverse effects on U.S. defense 

programs, force readiness, the defense 

industrial base, and American workers. 

The respondent further requested that 

DoD conduct a review of the law’s 

impact on the defense industrial base, 

military readiness, DoD acquisition 

programs as well as the economy and 

employment. Another respondent stated 

that implementing the rule without 

clear guidelines would have impacts to 

defense contractors. 

Response: The proposed rule 

implements section 890 of the NDAA 

for FY 2020 that prohibits contracts for 

the procurement of goods and services 

with any person that has business 

operations with an authority of the 

government of Venezuela, subject to the 

listed exceptions. Section 890 does not 

require a review of the defense 

industrial base, military readiness, DoD 

acquisition programs, the economy, or 

employment. Consequently, the rule 

implements the prohibition in 

accordance with section 890 of the 

NDAA for FY 2020 and unless certain 

exceptions apply requires contracting 

officers to include the provision and the 

clause in solicitations and contracts, 

including those for the acquisition of 

commercial items, and prohibits the 

award of a contract to a prohibited 

entity in accordance with the associated 

policy guidance. 

6. Extension Request 

Comment: A couple of respondents 

requested an extension to the comment 

period for additional time to provide 

comments. 

Response: DoD acknowledges the 

extension request. The public comment 

period was not extended. 

7. Out of Scope 

a. Mitigation Measures 

Comment: A respondent stated the 

proposed rule does not contain any 

mitigation measures that would enable 

an American subsidiary that is 

ultimately foreign-owned to provide 

goods and services to DoD irrespective 

of how tangentially related another 

entity, that has business operations with 

the Maduro regime, may be to the U.S. 

company. The respondent further stated 

the rule poses a real impediment to the 

DoD’s ability to contract with 

companies that offer mission-critical, 

lifesaving products and services to 

service members. 

Response: The comment is outside the 

scope of the rule. The final rule 

implements section 890 of the NDAA 

for FY 2020 and prohibits contracts for 

the procurement of goods and services 

with any person that has business 

operations with an authority of the 

government of Venezuela, subject to 

listed statutory exceptions. The 

statutory prohibition in section 890 does 

not allow for mitigation measures. 

b. Additional Policy 

Comment: A respondent 

recommended the U.S. Government go 

further than this rule and adopt the 

recommendations outlined in the 

Atlantic Council’s article titled ‘‘The 

Maduro Regime’s Illicit Activities: A 

Threat to Democracy in Venezuela and 

Security in Latin America’’. The article 

calls for a task force comprised of 

various U.S. Government agencies that 

would focus on the alleged criminal 

enterprises around the Maduro regime. 

Response: The comment is outside the 

scope of the rule. The prohibition in 

section 890 of the NDAA for FY 2020 

does not include requirements for a task 

force or the recommended additional 

policy measures. The final rule 

implements the statutory requirements 

in section 890, subject to the listed 

statutory exceptions and prohibits 

contracts for the procurement of goods 

and services with any person that has 

business operations with an authority of 

the government of Venezuela. 

C. Other Changes 

The following changes have been 

made throughout the final rule: 

—The reference to ‘‘section 28 U.S.C. 

1603(b)’’ was changed to ‘‘28 U.S.C. 

1603(b)’’ in the definition of ‘‘agency 

or instrumentality of the government 

of Venezuela.’’ 

—‘‘United States Government’’ was 

changed to ‘‘U.S. Government’’ to 

comply with DFARS drafting 

conventions. 

III. Applicability to Contracts at or 

Below the Simplified Acquisition 

Threshold (SAT) and for Commercial 

Services and Commercial Products, 

Including Commercially Available Offthe-Shelf (COTS) Items 

This rule creates a new provision and 

a new clause: (1) DFARS 252.225–7055, 

Representation Regarding Business 

Operations with the Maduro Regime; 

and (2) DFARS 252.225–7056, 

Prohibition Regarding Business 

Operations with the Maduro Regime. 

DoD applies the provision and the 

clause to solicitations, contracts, or 

subcontracts at or below the simplified 

acquisition threshold (SAT) and to the 

acquisition of commercial services and 

commercial products, including 

commercially available off-the-shelf 

(COTS) items, as defined at Federal 

Acquisition Regulation (FAR) 2.101. 

This DFARS rule implements section 

890 of the NDAA for FY 2020. Section 

890 prohibits contracts for the 

procurement of goods and services with 

any person that has business operations 

with an authority of the government of 

Venezuela, subject to exceptions. 

A. Applicability to Contracts at or Below 

the Simplified Acquisition Threshold 

41 U.S.C. 1905 governs the 

applicability of laws to contracts or 

subcontracts in amounts not greater 

than the SAT. It is intended to limit the 

applicability of laws to such contracts or 

subcontracts. 41 U.S.C. 1905 provides 

that if a provision of law contains 

criminal or civil penalties, or if the 

Federal Acquisition Regulatory Council 

makes a written determination that it is 

not in the best interest of the Federal 

Government to exempt contracts or 

subcontracts at or below the SAT, the 

law will apply to them. The Principal 


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Federal Register / Vol. 87, No. 102 / Thursday, May 26, 2022 / Rules and Regulations 31959 

Director, Defense Pricing and 

Contracting (DPC), is the appropriate 

authority to make comparable 

determinations for regulations to be 

published in the DFARS, which is part 

of the FAR system of regulations. 

B. Applicability to Contracts for the 

Acquisition of Commercial Services and 

Commercial Products, Including COTS 

Items 

10 U.S.C. 2375 exempts contracts and 

subcontracts for the acquisition of 

commercial items (including COTS 

items) from provisions of law enacted 

after October 13, 1994, that, as 

determined by the Under Secretary of 

Defense for Acquisition and 

Sustainment (USD(A&S)), set forth 

policies, procedures, requirements, or 

restrictions for the acquisition of 

property or services unless— 

The provision of law— 

—Provides for criminal or civil 

penalties; 

—Requires that certain articles be 

bought from American sources 

pursuant to 10 U.S.C. 2533a or that 

strategic materials critical to national 

security be bought from American 

sources pursuant to 10 U.S.C. 2533b; 

or 

—Specifically refers to 10 U.S.C. 2375 

and states that it shall apply to 

contracts and subcontracts for the 

acquisition of commercial services 

and commercial products (including 

COTS items); or USD (A&S) 

determines in writing that it would 

not be in the best interest of the 

Government to exempt contracts or 

subcontracts for the acquisition of 

commercial products and services 

from the applicability of the 

provision. 

This authority has been delegated to 

the Principal Director, Defense Pricing 

and Contracting. 

C. Applicability 

Section 890 of the NDAA for FY 2020 

is silent on applicability to contracts 

and subcontracts in amounts no greater 

than the SAT or for the acquisition of 

commercial services and commercial 

products including COTS items. Also, 

the statute does not provide for civil or 

criminal penalties. Therefore, it does 

not apply to contracts or subcontracts in 

amounts not greater than the SAT or to 

the acquisition of commercial products 

and commercial services unless the 

Principal Director, Defense Pricing and 

Contracting, makes a written 

determination as provided in 41 U.S.C. 

1905 and 10 U.S.C. 2375. 

Not applying this rule to contracts 

and subcontracts at or below the SAT 

and for the acquisition of commercial 

services and commercial products, 

including COTS items, would exclude 

contracts intended to be covered by this 

rule and undermine the overarching 

purpose of the rule, which is to prohibit 

contracts for the procurement of goods 

and services with any person that has 

business operations with an authority of 

the government of Venezuela, subject to 

the listed exceptions. This is 

particularly true with regard to the 

acquisition of fuel and petroleum, 

procurements which are usually 

commercial products and commercial 

services. To not include the acquisition 

of fuel and petroleum within this 

prohibition or to not apply the 

prohibition at or below the SAT will 

unacceptably diminish the impact of 

these sanctions on the Maduro regime, 

the government of Venezuela that is not 

recognized by the United States 

Government as the legitimate 

government of Venezuela. 

Subsequently, DoD has applied the rule 

to contracts and subcontracts at or 

below the SAT and for the acquisition 

of commercial services and commercial 

products, including COTS items. 

IV. Expected Impact of the Rule 

This rule creates new DFARS 

provision 252.225–7055, Representation 

Regarding Business Operations with the 

Maduro Regime, and new clause 

252.225–7056, Prohibition Regarding 

Business Operations with the Maduro 

Regime. The new provision and clause 

are prescribed at 225.7020–5(a) and (b). 

DoD has applied the requirements of 

section 890 of the NDAA for FY 2020 to 

contracts at or below the SAT. Section 

890 prohibits DoD from entering into a 

contract for the procurement of products 

or services with any person that has 

business operations with an authority of 

the government of Venezuela that is not 

recognized as the legitimate government 

of Venezuela by the United States 

Government subject to the listed 

exceptions. 

The rule does not add any new 

burden. Contracting officers will 

include the provision and the clause in 

solicitations and contracts, including 

solicitations and contracts using FAR 

part 12 procedures for the acquisition of 

commercial services and commercial 

products including COTS items, unless 

an exception at 225.7020–3(b) applies or 

a joint determination has been made in 

accordance with 225.7020–4. 

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 U.S. 

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. The Office of 

Information and Regulatory Affairs has 

determined that this rule is not a major 

rule as defined by 5 U.S.C. 804. 

VII. Regulatory Flexibility Act 

A final regulatory flexibility analysis 

(FRFA) has been prepared consistent 

with the Regulatory Flexibility Act, 5 

U.S.C. 601, et seq. The FRFA is 

summarized as follows: 

The final rule is necessary to revise 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

implement section 890 of the National 

Defense Authorization Act (NDAA) for 

Fiscal Year (FY) 2020 that prohibits 

contracts for the procurement of goods 

and services with any person that has 

business operations with an authority of 

the government of Venezuela, subject to 

exceptions for contracts that are— 

• Jointly determined by the Secretary 

of Defense and the Secretary of State to 

be necessary for certain humanitarian or 

disaster relief purposes or vital to the 

national security interests of the United 

States; 

• Related to the operation and 

maintenance of the United States 

Government’s consular offices and 

diplomatic posts in Venezuela; or 

• Awarded to a person that has a 

valid license to operate in Venezuela 

issued by the Office of Foreign Assets 

Control of the Department of the 

Treasury. 

The objective of the rule is to 

implement section 890 of the NDAA for 

FY 2020. 


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31960 Federal Register / Vol. 87, No. 102 / Thursday, May 26, 2022 / Rules and Regulations 

No public comments were received in 

response to the initial regulatory 

flexibility analysis. 

DoD reviewed data obtained from the 

Federal Procurement Data System 

(FPDS) for FY 2017, FY 2018, and FY 

2019 (including contracts that do not 

exceed the simplified acquisition 

threshold) to determine the estimated 

impact of the rule on U.S. small 

businesses. There were no DoD actions 

reported to FPDS in FY 2017 through 

FY 2019 for which the contractor is 

located in Venezuela or the place of 

performance is Venezuela. 

This rule does not include any new 

reporting, recordkeeping, or other 

compliance requirements for small 

entities. 

DoD has not identified any alternative 

approaches to the rule that would meet 

the requirements of the statute. 

VIII. Paperwork Reduction Act 

This 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 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 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 

■ 2. Amend section 212.301 by adding 

paragraphs (f)(x)(II) and (JJ) to read as 

follows: 

212.301 Solicitation provisions and 

contract clauses for the acquisition of 

commercial items. 

* * * * * 

(f) * * * 

(x) * * * 

(II) Use the provision at 252.225– 

7055, Representation Regarding 

Business Operations with the Maduro 

Regime, as prescribed in 225.7020–5(a), 

to comply with section 890 of the 

National Defense Authorization Act for 

Fiscal Year 2020 (Pub. L. 116–92). 

(JJ) Use the clause at 252.225–7056, 

Prohibition Regarding Business 

Operations with the Maduro Regime, as 

prescribed in 225.7020–5(b), to comply 

with section 890 of the National Defense 

Authorization Act for Fiscal Year 2020 

(Pub. L. 116–92). 

* * * * * 

PART 225—FOREIGN ACQUISITION 

■ 3. Add sections 225.7020, 225.7020–1, 

225.7020–2, 225.7020–3, 225.7020–4, 

and 225.7020–5 to subpart 225.70 to 

read as follows: 

* * * * * 

Sec. 

225.7020 Prohibition on contracting with 

the Maduro regime. 

225.7020–1 Definitions. 

225.7020–2 Prohibition. 

225.7020–3 Exceptions. 

225.7020–4 Joint determination. 

225.7020–5 Solicitation provision and 

contract clause. 

* * * * * 

225.7020 Prohibition on contracting with 

the Maduro regime. 

225.7020–1 Definitions. 

As used in this section— 

Agency or instrumentality of the 

government of Venezuela means an 

agency or instrumentality of a foreign 

state as defined in 28 U.S.C. 1603(b), 

with each reference in section 1603(b) to 

a foreign state deemed to be a reference 

to Venezuela. 

Business operations means engaging 

in commerce in any form, including 

acquiring, developing, maintaining, 

owning, selling, possessing, leasing, or 

operating equipment, facilities, 

personnel, products, services, personal 

property, real property, or any other 

apparatus of business or commerce. 

Government of Venezuela means the 

government of any political subdivision 

of Venezuela, and any agency or 

instrumentality of the government of 

Venezuela. 

Person means— 

(1) A natural person, corporation, 

company, business association, 

partnership, society, trust, or any other 

nongovernmental entity, organization, 

or group; 

(2) Any governmental entity or 

instrumentality of a government, 

including a multilateral development 

institution (as defined in section 

1701(c)(3) of the International Financial 

Institutions Act (22 U.S.C. 262r(c)(3)); 

and 

(3) Any successor, subunit, parent 

entity, or subsidiary of, or any entity 

under common ownership or control 

with, any entity described in paragraph 

(1) or (2) of this definition. 

225.7020–2 Prohibition. 

In accordance with section 890 of the 

National Defense Authorization Act for 

Fiscal Year 2020 (Pub. L. 116–92), DoD 

is prohibited from entering into a 

contract for the procurement of products 

or services with any person that has 

business operations with an authority of 

the government of Venezuela that is not 

recognized as the legitimate government 

of Venezuela by the U.S. Government, 

except as provided in 225.7020–3 or 

225.7020–4. 

225.7020–3 Exceptions. 

The prohibition in 225.7020–2 does 

not apply if— 

(a) The person has a valid license to 

operate in Venezuela issued by the 

Office of Foreign Assets Control of the 

Department of the Treasury; or 

(b) The acquisition is related to the 

operation and maintenance of the U.S. 

Government’s consular office and 

diplomatic posts in Venezuela. 

225.7020–4 Joint determination. 

(a) The prohibition in section 

225.7020–2 does not apply to an 

acquisition jointly determined by the 

Secretary of Defense and Secretary of 

State, without power of redelegation, to 

be— 

(1) Necessary for purposes of— 

(i) Providing humanitarian assistance 

to the people of Venezuela; 

(ii) Disaster relief and other urgent 

lifesaving measures; or 

(iii) Carrying out noncombatant 

evacuations; or 

(2) Vital to the national security 

interests of the United States. 

(b) Follow the procedures at PGI 

225.7020–4(b) when entering into a 

contract on the basis of a joint 

determination. 

225.7020–5 Solicitation provision and 

contract clause. 

(a) Use the provision at 252.225–7055, 

Representation Regarding Business 

Operations with the Maduro Regime, in 

solicitations, including solicitations 

using FAR part 12 procedures for the 

acquisition of commercial items, that 

include the clause at 252.225–7056, 

Prohibition Regarding Business 

Operations with the Maduro Regime. 

(b) Unless the exception at 225.7020– 

3(b) applies or a joint determination has 

been made in accordance with 

225.7020–4, use the clause at 252.225– 

7056, Prohibition Regarding Business 

Operations with the Maduro Regime, in 

solicitations and contracts, including 

solicitations and contracts using FAR 

part 12 procedures for the acquisition of 

commercial items. 


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Federal Register / Vol. 87, No. 102 / Thursday, May 26, 2022 / Rules and Regulations 31961 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 4. Add section 252.225–7055 to read 

as follows: 

252.225–7055 Representation Regarding 

Business Operations with the Maduro 

Regime. 

As prescribed in 225.7020–5(a), use 

the following provision: 

Representation Regarding Business 

Operations With the Maduro Regime 

(May 2022) 

(a) Definitions. As used in this provision— 

Agency or instrumentality of the 

government of Venezuela, business 

operations, government of Venezuela, and 

person have the meaning given in the clause 

252.225–7056, Prohibition Regarding 

Business Operations with the Maduro 

Regime, of this solicitation. 

(b) Prohibition. In accordance with section 

890 of the National Defense Authorization 

Act for Fiscal Year 2020 (Pub. L. 116–92), 

DoD is prohibited from entering into a 

contract for the procurement of products or 

services with any person that has business 

operations with an authority of the 

government of Venezuela that is not 

recognized as the legitimate government of 

Venezuela by the U.S. Government, unless 

the person has a valid license to operate in 

Venezuela issued by the Office of Foreign 

Assets Control of the Department of the 

Treasury. 

(c) Representation. By submission of its 

offer, the Offeror represents that the Offeror 

is a person that— 

(1) Does not have any business operations 

with an authority of the Maduro regime or 

the government of Venezuela that is not 

recognized as the legitimate government of 

Venezuela by the U.S. Government; or 

(2) Has a valid license to operate in 

Venezuela issued by the Office of Foreign 

Assets Control of the Department of the 

Treasury. 

(End of provision) 

■ 5. Add section 252.225–7056 to read 

as follows: 

252.225–7056 Prohibition Regarding 

Business Operations with the Maduro 

Regime. 

As prescribed in 225.7020–5(b), use 

the following clause: 

Prohibition Regarding Business 

Operations With the Maduro Regime 

(May 2022) 

(a) Definitions. As used in this clause— 

Agency or instrumentality of the 

government of Venezuela means an agency or 

instrumentality of a foreign state as defined 

in 28 U.S.C. 1603(b), with each reference in 

section 1603(b) to a foreign state deemed to 

be a reference to Venezuela. 

Business operations means engaging in 

commerce in any form, including acquiring, 

developing, maintaining, owning, selling, 

possessing, leasing, or operating equipment, 

facilities, personnel, products, services, 

personal property, real property, or any other 

apparatus of business or commerce. 

Government of Venezuela means the 

government of any political subdivision of 

Venezuela, and any agency or 

instrumentality of the government of 

Venezuela. 

Person means— 

(1) A natural person, corporation, 

company, business association, partnership, 

society, trust, or any other nongovernmental 

entity, organization, or group; 

(2) Any governmental entity or 

instrumentality of a government, including a 

multilateral development institution (as 

defined in section 1701(c)(3) of the 

International Financial Institutions Act (22 

U.S.C. 262r(c)(3)); and 

(3) Any successor, subunit, parent entity, 

or subsidiary of, or any entity under common 

ownership or control with, any entity 

described in paragraph (1) or (2) of this 

definition. 

(b) Prohibition. In accordance with section 

890 of the National Defense Authorization 

Act for Fiscal Year 2020 (Pub. L. 116–92), 

DoD is prohibited from entering into a 

contract for the procurement of products or 

services with any person that has business 

operations with an authority of the 

government of Venezuela that is not 

recognized as the legitimate government of 

Venezuela by the U.S. Government, unless 

the person has a valid license to operate in 

Venezuela issued by the Office of Foreign 

Assets Control of the Department of the 

Treasury. 

(c) The Contractor shall— 

(1) Not have any business operations with 

an authority of the Maduro regime or the 

government of Venezuela that is not 

recognized as the legitimate government of 

Venezuela by the U.S. Government; or 

(2) Have a valid license to operate in 

Venezuela issued by the Office of Foreign 

Assets Control of the Department of the 

Treasury. 

(d) Subcontracts. The Contractor shall 

insert the substance of this clause, including 

this paragraph (d), in all subcontracts, 

including subcontracts for the acquisition of 

commercial items. 

(End of clause) 

[FR Doc. 2022–11207 Filed 5–25–22; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 219 

[Docket DARS–2022–0011] 

RIN 0750–AL54 

Defense Federal Acquisition 

Regulation Supplement: Small 

Business Specialist Review Threshold 

Update (DFARS Case 2022–D002) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is issuing a final rule to 

amend the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

modify the nomenclature used for the 

threshold for the small business 

specialist review of acquisitions to align 

it with the threshold for small business 

set-asides at Federal Acquisition 

Regulation (FAR) 19.502–2(a). 

DATES: Effective May 26, 2022. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Jeanette Snyder, 571–372–6106. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD is issuing a final rule to amend 

the DFARS to revise the nomenclature 

used to identify the threshold for the 

small business specialist review of 

acquisitions at DFARS 219.201(c)(10)(A) 

to use the term ‘‘micro-purchase 

threshold’’ in lieu of the dollar amount 

‘‘$10,000’’ to align it with FAR 19.502– 

2(a). The dollar threshold at FAR 

19.502–2(a) was modified to reflect the 

‘‘micro-purchase threshold’’ on August 

31, 2020, via FAR case 2018–004 (85 FR 

40064, July 2, 2020); however, the 

threshold at DFARS 219.201(c)(10)(A) 

was not similarly adjusted. This final 

rule makes that conforming adjustment. 

DFARS 219.201(c)(10)(A) requires 

small business specialists to review and 

make recommendations for all 

acquisitions over $10,000 except for 

those under the simplified acquisition 

threshold that are totally set aside for 

small business concerns. Since the 

threshold at FAR 19.502–2(a) for total 

small business set-asides is ‘‘the micropurchase threshold’’, the threshold at 

DFARS 219.201(c)(10)(A) is being 

changed for consistency. This final rule 

does not modify the dollar value of the 

threshold since the micro-purchase 

threshold and the small business 

specialist review threshold are both 

$10,000 unless an exception applies in 


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