Skip to Content

Rule

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

Document Details

Information about this document as published in the Federal Register.

Document Statistics
Document page views are updated periodically throughout the day and are cumulative counts for this document including its time on Public Inspection. Counts are subject to sampling, reprocessing and revision (up or down) throughout the day.
Enhanced Content

Relevant information about this document from Regulations.gov provides additional context. This information is not part of the official Federal Register document.

Published Document

This document has been published in the Federal Register. Use the PDF linked in the document sidebar for the official electronic format.

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, 2018.

Start Further Info

FOR FURTHER INFORMATION CONTACT:

Ms. Amy G. Williams, 571-372-6106.

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 in the Federal Register (82 FR 58248, December 11, 2017):Start Printed Page 61482

Trade AgreementSupply Contract (equal to or exceeding)Construction Contract (equal to or exceeding)
WTO GPA$180,000$6,932,000
FTAs:
Australia FTA80,3176,932,000
Bahrain FTA180,00010,441,216
CAFTA-DR (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua)80,3176,932,000
Chile FTA80,3176,932,000
Columbia80,3176,932,000
Korea100,0006,932,000
Morocco FTA180,0006,932,000
NAFTA:
—Canada25,00010,441,216
—Mexico80,31710,441,216
Panama FTA180,0006,932,000
Peru FTA180,0006,932,000
Singapore FTA80,3176,932,000

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 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.

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, 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).

V. 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.

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 L. 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 “$191,000” and adding “$180,000” in its place;

End Amendment Part Start Amendment Part

b. In paragraph (10)(i) introductory text, removing “$191,000” and adding “$180,000” in its place;

End Amendment Part Start Amendment Part

c. In paragraph (10)(i)(A), removing “$191,000” and adding “$180,000” in its place;

End Amendment Part Start Amendment Part

d. In paragraph (10)(i)(B), removing “$77,533” and adding “$80,317” in its place; Start Printed Page 61483

End Amendment Part Start Amendment Part

e. In paragraph (10)(i)(C), removing “$191,000” and adding “$180,000” in its place; and

End Amendment Part Start Amendment Part

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

End Amendment Part
[Amended]
Start Amendment Part

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

End Amendment Part
[Amended]
Start Amendment Part

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

End Amendment Part
[Amended]
Start Amendment Part

5. Amend section 225.7503 by—

End Amendment Part Start Amendment Part

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

End Amendment Part Start Amendment Part

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

End Amendment Part Start Amendment Part

c. 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;

End Amendment Part Start Amendment Part

d. In paragraph (b)(3), removing “$10,079,365” and adding “$10,441,216” in its place; and

End Amendment Part Start Amendment Part

e. 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.

End Amendment Part Start Part

PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES

[Amended]
End Part Start Amendment Part

6. Amend section 252.225-7017 by—

End Amendment Part Start Amendment Part

a. Removing clause date “(DEC 2016)” and adding “(JAN 2018)” in its place;

End Amendment Part Start Amendment Part

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

End Amendment Part Start Amendment Part

c. In paragraphs (c)(4) and (5), removing “$191,000” and adding “$180,000” in its place.

End Amendment Part
[Amended]
Start Amendment Part

7. Amend section 252.225-7018 by—

End Amendment Part Start Amendment Part

a. Removing clause date “(JAN 2016)” and adding “(JAN 2018)” in its place;

End Amendment Part Start Amendment Part

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

End Amendment Part Start Amendment Part

c. In paragraph (b)(2), removing “$191,000” and adding “$180,000” in its place;

End Amendment Part Start Amendment Part

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

End Amendment Part Start Amendment Part

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

End Amendment Part End Supplemental Information

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

BILLING CODE 5001-06-P