2019-27828. Defense Federal Acquisition Regulation Supplement: Trade Agreements Thresholds (DFARS Case 2019-D035)  

  • Start Preamble

    AGENCY:

    Defense Acquisition Regulations System, Department of Defense (DoD).

    ACTION:

    Final rule.

    SUMMARY:

    DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to incorporate revised thresholds for application of the World Trade Organization Government Procurement Agreement and the Free Trade Agreements, as determined by the United States Trade Representative.

    DATES:

    Effective January 1, 2020.

    Start Further Info

    FOR FURTHER INFORMATION CONTACT:

    Ms. Kimberly Bass, 571-372-6174.

    End Further Info End Preamble Start Supplemental Information

    SUPPLEMENTARY INFORMATION:

    I. Background

    This rule adjusts thresholds for application of the World Trade Organization (WTO) Government Procurement Agreement (GPA) and Free Trade Agreements (FTA) as determined by the United States Trade Representative (USTR). The trade agreements thresholds are adjusted every two years according to predetermined formulae set forth in the agreements. The USTR has specified the following new thresholds (84 FR 70615, December 23, 2019):Start Printed Page 72246

    Trade agreementSupply contract (equal to or exceeding)Construction contract (equal to or exceeding)
    WTO GPA$182,000$7,008,000
    FTAs:
    Australia FTA83,0997,008,000
    Bahrain FTA182,00010,802,884
    CAFTA-DR (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua)83,0997,088,000
    Chile FTA83,0997,088,000
    Columbia83,0997,088,000
    Korea100,0007,008,000
    Morocco FTA182,0007,008,000
    NAFTA:
    —Canada83,09910,802,884
    —Mexico83,09910,802,884
    Panama FTA182,0007,008,000
    Peru FTA182,0007,008,000
    Singapore FTA83,0997,008,000

    II. Publication of This Final Rule for Public Comment Is Not Required by Statute

    The statute that applies to the publication of the Federal Acquisition Regulation (FAR) is 41 U.S.C. 1707 entitled “Publication of Proposed Regulations.” 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 does not constitute a significant DFARS revision within the meaning of FAR 1.501-1 and does not have a significant cost or administrative impact on contractors or offerors. This final rule only adjusts the trade agreements thresholds according to predetermined formulae to adjust for changes in economic conditions, thus maintaining the status quo, without significant effect beyond the internal operating procedures of the Government.

    III. Applicability to Contracts at or Below the Simplified Acquisition Threshold and for Commercial Items, Including Commercially Available Off-the-Shelf Items

    This rule amends the DFARS to revise thresholds for application of the WTO GPA and the FTA. The revisions do not add any new burdens or impact applicability of clauses and provisions at or below the simplified acquisition threshold, or to commercial items.

    IV. Executive Orders 12866 and 13563

    Executive Order (E.O.) 12866, Regulatory Planning and Review, and E.O. 13563, Improving Regulation and Regulatory Review, 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. The Office of Management and Budget (OMB), Office of Information and Regulatory Affairs, has determined that this is not a significant regulatory action as defined under section 3(f) of E.O. 12866 and, therefore, was not subject to review under section 6(b). This rule is not a major rule as defined at 5 U.S.C. 804(2).

    V. Executive Order 13771

    This rule is not subject to E.O. 13771, because this rule is not a significant regulatory action under E.O. 12866.

    VI. 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.

    VII. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C chapter 35) does apply, because the final rule affects the prescriptions for use of the certification and information collection requirements in the provision at DFARS 252.225-7035, Buy American—Free Trade Agreements-Balance of Payments Program Certificate, and the certification and information collection requirements in the provision at DFARS 252.225-7018, Photovoltaic Devices—Certificate. The changes to these DFARS clauses do not impose additional information collection requirements to the paperwork burden previously approved under OMB Control Number 0704-0229, entitled “DFARS Part 225, Foreign Acquisition and related clauses,” because the threshold changes are in line with inflation and maintain the status quo.

    Start List of Subjects

    List of Subjects in 48 CFR Parts 225 and 252

    • Government procurement
    End List of Subjects Start Signature

    Jennifer Lee Hawes,

    Regulatory Control Officer, Defense Acquisition Regulations System.

    End Signature

    Therefore, 48 CFR parts 225 and 252 are amended as follows:

    Start Amendment Part

    1. The authority citation for 48 CFR parts 225 and 252 continues to read as follows:

    End Amendment Part Start Authority

    Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

    End Authority Start Part

    PART 225—FOREIGN ACQUISITION

    [Amended]
    End Part Start Amendment Part

    2. Amend section 225.1101 by—

    End Amendment Part Start Amendment Part

    a. In paragraph (6) introductory text, removing “$180,000” and adding “$182,000” in its place;

    End Amendment Part Start Amendment Part

    b. In paragraph (10)(i) introductory text, removing “$180,000” and adding “$182,000” in its place;

    End Amendment Part Start Amendment Part

    c. In paragraph (10)(i)(A), removing “$180,000” and adding “$182,000” in its place;

    End Amendment Part Start Amendment Part

    d. In paragraph (10)(i)(B), removing “$80,317” and adding “$83,099” in its place; Start Printed Page 72247

    End Amendment Part Start Amendment Part

    e. In paragraph (10)(i)(C), removing “$180,000” and adding “$182,000” in its place; and

    End Amendment Part Start Amendment Part

    f. In paragraphs (10)(i)(D) through (F), removing “$80,317” wherever it appears and adding “$83,099” in its place.

    End Amendment Part
    [Amended]
    Start Amendment Part

    3. Amend section 225.7017-3, in paragraph (b), by removing “$180,000” and adding “$182,000” in its place.

    End Amendment Part
    [Amended]
    Start Amendment Part

    4. Amend section 225.7503 by—

    End Amendment Part Start Amendment Part

    a. In paragraphs (a) and (b) introductory text, removing “$6,932,000” and adding “$7,008,000” in both places;

    End Amendment Part Start Amendment Part

    b. In paragraph (b)(1), removing “$10,441,216” and adding “$10,802,884” in its place;

    End Amendment Part Start Amendment Part

    c. In paragraph (b)(2), removing “$6,932,000” and adding “$7,008,000” in its place, and removing “$10,441,216” and adding “$10,802,884” in its place;

    End Amendment Part Start Amendment Part

    d. In paragraph (b)(3), removing “$10,441,216” and adding “$10,802,884” in its place; and

    End Amendment Part Start Amendment Part

    e. In paragraph (b)(4), removing “$6,932,000” and adding “$7,008,000” in its place, and removing “$10,441,216” and adding “$10,802,884” in its place.

    End Amendment Part Start Part

    PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    [Amended]
    End Part Start Amendment Part

    5. Amend section 252.225-7017 by—

    End Amendment Part Start Amendment Part

    a. Removing clause date “(AUG 2019)” and adding “(JAN 2020)” in its place;

    End Amendment Part Start Amendment Part

    b. In paragraphs (c)(2) and (3), removing “$80,317” and adding “$83,099” in its place; and

    End Amendment Part Start Amendment Part

    c. In paragraphs (c)(4) and (5), removing “$180,000” and adding “$182,000” in its place.

    End Amendment Part
    [Amended]
    Start Amendment Part

    6. Amend section 252.225-7018 by—

    End Amendment Part Start Amendment Part

    a. Removing clause date “(DEC 2018)” and adding “(JAN 2020)” in its place;

    End Amendment Part Start Amendment Part

    b. In paragraph (b)(1) introductory text, removing “$180,000” and adding “$182,000” in its place;

    End Amendment Part Start Amendment Part

    c. In paragraph (b)(2), removing “$180,000” and adding “$182,000” in its place;

    End Amendment Part Start Amendment Part

    d. In paragraphs (d)(3) and (4) introductory text, removing “$80,317” and adding “$83,099” in both places; and

    End Amendment Part Start Amendment Part

    e. In paragraphs (d)(5) and (6) introductory text, removing “$180,000” and adding “$182,000” in both places.

    End Amendment Part End Supplemental Information

    [FR Doc. 2019-27828 Filed 12-30-19; 8:45 am]

    BILLING CODE P

Document Information

Effective Date:
1/1/2020
Published:
12/31/2019
Department:
Defense Acquisition Regulations System
Entry Type:
Rule
Action:
Final rule.
Document Number:
2019-27828
Dates:
Effective January 1, 2020.
Pages:
72245-72247 (3 pages)
Docket Numbers:
Docket DARS-2019-0069
RINs:
0750-AK75: Trade Agreement Thresholds (DFARS Case 2019-D035)
RIN Links:
https://www.federalregister.gov/regulations/0750-AK75/trade-agreement-thresholds-dfars-case-2019-d035-
Topics:
Government procurement
PDF File:
2019-27828.pdf
CFR: (5)
48 CFR 225.1101
48 CFR 225.7503
48 CFR 225.7017-3
48 CFR 252.225-7017
48 CFR 252.225-7018