Defense Federal Acquisition Regulation Supplement: Trade Agreements Thresholds (DFARS Case 2018-D001)

Federal Register, Volume 82 Issue 248 (Thursday, December 28, 2017)

Federal Register Volume 82, Number 248 (Thursday, December 28, 2017)

Rules and Regulations

Pages 61481-61483

From the Federal Register Online via the Government Publishing Office www.gpo.gov

FR Doc No: 2017-27781

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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 225 and 252

Docket DARS-2017-0017

RIN 0750-AJ65

Defense Federal Acquisition Regulation Supplement: Trade Agreements Thresholds (DFARS Case 2018-D001)

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

ACTION: Final rule.

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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, 2018.

FOR FURTHER INFORMATION CONTACT: Ms. Amy G. Williams, 571-372-6106.

SUPPLEMENTARY INFORMATION:

1. 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 in the Federal Register (82 FR 58248, December 11, 2017):

   Page 61482

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   Supply Construction

   Contract Contract

   Trade Agreement (equal to or (equal to or

   exceeding) exceeding)

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   WTO GPA................................. $180,000 $6,932,000

   FTAs:

   Australia FTA....................... 80,317 6,932,000

   Bahrain FTA......................... 180,000 10,441,216

   CAFTA-DR (Costa Rica, Dominican 80,317 6,932,000

   Republic, El Salvador, Guatemala,

   Honduras, and Nicaragua)...........

   Chile FTA........................... 80,317 6,932,000

   Columbia............................ 80,317 6,932,000

   Korea............................... 100,000 6,932,000

   Morocco FTA......................... 180,000 6,932,000

   NAFTA:

   --Canada............................ 25,000 10,441,216

   --Mexico............................ 80,317 10,441,216

   Panama FTA.......................... 180,000 6,932,000

   Peru FTA............................ 180,000 6,932,000

   Singapore FTA....................... 80,317 6,932,000

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2. 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 is not required to be published for public comment, because it only adjusts the 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.

3. 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.

4. 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, Office of Information and Regulatory Affairs (OIRA), 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).

5. Executive Order 13771

   This rule is not subject to E.O. 13771, Reducing Regulation and Controlling Regulatory Costs, because this rule is not a significant regulatory action under E.O. 12866.

6. 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.

7. 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.

   List of Subjects in 48 CFR Parts 225 and 252

   Government procurement.

   Jennifer L. Hawes,

   Regulatory Control Officer, Defense Acquisition Regulations System.

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

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

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

      PART 225--FOREIGN ACQUISITION

      225.1101 Amended

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   2. Amend section 225.1101 by--

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      1. In paragraph (6) introductory text, removing ``$191,000'' and adding ``$180,000'' in its place;

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      2. In paragraph (10)(i) introductory text, removing ``$191,000'' and adding ``$180,000'' in its place;

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      3. In paragraph (10)(i)(A), removing ``$191,000'' and adding ``$180,000'' in its place;

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      4. In paragraph (10)(i)(B), removing ``$77,533'' and adding ``$80,317'' in its place;

         Page 61483

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      5. In paragraph (10)(i)(C), removing ``$191,000'' and adding ``$180,000'' in its place; and

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      6. In paragraphs (10)(i)(D) through (F), removing ``$77,533'' wherever it appears and adding ``$80,317'' in its place.

         225.7017-3 Amended

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   3. Amend section 225.7017-3, in paragraph (b), by removing ``$191,000'' and adding ``$180,000'' in its place.

      225.7017-4 Amended

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   4. Amend section 225.7017-4, in paragraphs (a)(1) and (b)(1), by removing ``$191,000'' and adding ``$180,000'' in both places.

      225.7503 Amended

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   5. Amend section 225.7503 by--

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      1. In paragraphs (a) and (b) introductory text, removing ``$7,358,000'' and adding ``$6,932,000'' in both places;

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      2. In paragraph (b)(1), removing ``$10,079,365'' and adding ``$10,441,216'' in its place;

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      3. In paragraph (b)(2), removing ``$7,358,000'' and adding ``$6,932,000'' in its place, and removing ``$10,079,365'' and adding ``$10,441,216'' in its place;

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      4. In paragraph (b)(3), removing ``$10,079,365'' and adding ``$10,441,216'' in its place; and

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      5. In paragraph (b)(4), removing ``$7,358,000'' and adding ``$6,932,000'' in its place, and removing ``$10,079,365'' and adding ``$10,441,216'' in its place.

         PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

         252.225-7017 Amended

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   6. Amend section 252.225-7017 by--

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      1. Removing clause date ``(DEC 2016)'' and adding ``(JAN 2018)'' in its place;

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      2. In paragraphs (c)(2) and (3), removing ``$77,533'' and adding ``$80,317'' in its place; and

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      3. In paragraphs (c)(4) and (5), removing ``$191,000'' and adding ``$180,000'' in its place.

         252.225-7018 Amended

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   7. Amend section 252.225-7018 by--

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      1. Removing clause date ``(JAN 2016)'' and adding ``(JAN 2018)'' in its place;

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      2. In paragraph (b)(1) introductory text, removing ``$191,000'' and adding ``$180,000'' in its place;

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      3. In paragraph (b)(2), removing ``$191,000'' and adding ``$180,000'' in its place;

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      4. In paragraphs (d)(3) and (4) introductory text, removing ``$77,533'' and adding ``$80,317'' in both places; and

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      5. In paragraphs (d)(5) and (6) introductory text, removing ``$191,000'' and adding ``$180,000'' in its place.

         FR Doc. 2017-27781 Filed 12-27-17; 8:45 am

         BILLING CODE 5001-06-P