Rule2021-28083
Federal Acquisition Regulation: Trade Agreements Thresholds
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 30, 2021
Effective
January 1, 2022
Issuing agencies
Defense DepartmentGeneral Services AdministrationNational Aeronautics and Space Administration
Abstract
DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) 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.
Full Text
<html>
<head>
<title>Federal Register, Volume 86 Issue 248 (Thursday, December 30, 2021)</title>
</head>
<body><pre>
[Federal Register Volume 86, Number 248 (Thursday, December 30, 2021)]
[Rules and Regulations]
[Pages 74528-74531]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-28083]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 22, 25, and 52
[FAC 2022-03; FAR Case 2022-001; Docket No. FAR-2021-0054; Sequence No.
1]
RIN 9000-AO38
Federal Acquisition Regulation: Trade Agreements Thresholds
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the
Federal Acquisition Regulation (FAR) 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, 2022.
FOR FURTHER INFORMATION CONTACT: Mr. Curtis E. Glover, Sr., Procurement
Analyst, at 202-501-1448 or by email at <a href="/cdn-cgi/l/email-protection#c5a6b0b7b1acb6eba2a9aab3a0b785a2b6a4eba2aab3"><span class="__cf_email__" data-cfemail="07647275736e7429606b687162754760746629606871">[email protected]</span></a> for
clarification of content. For information pertaining to status or
publication schedules, contact the Regulatory Secretariat Division at
202-501-4755 or <a href="/cdn-cgi/l/email-protection#c780948695a2a094a2a487a0b4a6e9a0a8b1"><span class="__cf_email__" data-cfemail="a3e4f0e2f1c6c4f0c6c0e3c4d0c28dc4ccd5">[email protected]</span></a>. Please cite FAC 2022-03, FAR Case
2022-001.
SUPPLEMENTARY INFORMATION:
I. Background
Approximately every two years, the trade agreements thresholds for
the World Trade Organization Government Procurement Agreement (WTO GPA)
and the free trade agreements (FTAs) are adjusted according to
predetermined formulae under the agreements. These thresholds become
effective on January 1, 2022. On November 26, 2021 (86 FR 67579), the
United States Trade Representative (USTR) published new procurement
thresholds. DoD, GSA, and NASA are not changing the Canada thresholds
because of the United States-Mexico-Canada Agreement Implementation
Act, which is being implemented in FAR Case 2020-014, United States-
Mexico-Canada Agreement. FAR Case 2020-014 was published as a proposed
rule on December 13, 2021.
The United States Trade Representative has specified the following
new thresholds:
----------------------------------------------------------------------------------------------------------------
Supply Service Construction
contract contract contract
Trade agreement (equal to or (equal to or (equal to or
exceeding) exceeding) exceeding)
----------------------------------------------------------------------------------------------------------------
WTO GPA..................................................... $183,000 $183,000 $7,032,000
FTAs:
[[Page 74529]]
Australia FTA............................................... 2,319 92,319 7,032,000
Bahrain FTA................................................. 183,000 183,000 12,001,460
CAFTA-DR (Costa Rica, Dominican Republic, El Salvador, 92,319 92,319 7,032,000
Guatemala, Honduras, and Nicaragua)........................
Chile FTA................................................... 92,319 92,319 7,032,000
Colombia FTA................................................ 92,319 92,319 7,032,000
Korea FTA................................................... 100,000 100,000 7,032,000
Morocco FTA................................................. 183,000 183,000 7,032,000
NAFTA:
Canada...................................................... 25,000 83,099 10,802,884
Mexico...................................................... 92,319 92,319 12,001,460
Oman FTA.................................................... 183,000 183,000 12,001,460
Panama FTA.................................................. 183,000 183,000 7,032,000
Peru FTA.................................................... 183,000 183,000 7,032,000
Singapore FTA............................................... 92,319 92,319 7,032,000
Israeli Trade Act........................................... 50,000 .............. ..............
----------------------------------------------------------------------------------------------------------------
II. Discussion and Analysis
This final rule implements the new thresholds in FAR subpart 25.4,
Trade Agreements, and other sections in the FAR that include trade
agreements thresholds (i.e., 22.1503, 25.202, 25.603, 25.1101, and
25.1102).
In addition, changes are required to the provision at 52.204-8,
Annual Representations and Certifications, and the clause at 52.222-19,
Child Labor-Cooperation with Authorities and Remedies, with conforming
changes to the clause dates in 52.212-5, Contract Terms and Conditions
Required to Implement Statutes or Executive Orders-Commercial Products
and Commercial Services, and 52.213-4, Terms and Conditions-Simplified
Acquisitions (Other Than Commercial Products and Commercial Services).
III. Publication of This Final Rule for Public Comment Is Not Required
by Statute
The statute that applies to the publication of the FAR is 41 U.S.C.
1707. Subsection (a)(1) of 41 U.S.C. 1707 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 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.
IV. Expected Impact of the Rule
This final rule will adjust the thresholds for application of the
WTO GPA and FTAs, as determined by the USTR. For acquisitions covered
by the WTO GPA or FTAs, the USTR has waived the Buy American statute
and other discriminatory provisions for eligible products. As a result,
eligible products and services will receive equal consideration with
domestic offers if the estimated value of the contract meets or exceeds
the new thresholds set by the USTR. This rule is not expected to
significantly impact domestic offerors or offerors covered by the WTO
GPA or a FTA, because the threshold adjustments made under this rule
simply accommodate changes in economic conditions while maintaining the
status quo.
V. Applicability to Contracts at or Below the Simplified Acquisition
Threshold and for Commercial Products, Including Commercially Available
Off-the-Shelf Items, or for Commercial Services
This rule amends the FAR to make minor revisions in the thresholds
for application of the WTO GPA and the FTAs. The revisions do not add
any new burdens or, except for the thresholds changes themselves,
impact applicability of clauses and provisions at or below the
simplified acquisition threshold, to acquisitions of commercial
products (including commercially available off-the-shelf items), or to
acquisition of commercial services.
VI. 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.
VII. 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, GSA, and NASA will
send the rule and the ``Submission of Federal Rules Under the
Congressional Review Act'' form to each House of the Congress and to
the Comptroller General of the United States. A major rule cannot take
effect until 60 days after it is published in the Federal Register. The
Office of Information and Regulatory Affairs (OIRA) in the Office of
Management and Budget has determined that this is not a major rule
under 5 U.S.C. 804.
VIII. Regulatory Flexibility Act
Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule under 41
U.S.C. 1707(a)(1) (see section III of this preamble), the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601-612) are
not applicable. Accordingly, no regulatory flexibility analysis is
required, and none has been prepared.
[[Page 74530]]
IX. Paperwork Reduction Act
This rule affects the information collection requirements in the
provisions at 52.225-2, 52.225-4, 52.225-6 and 52.225-10, and the
clauses at FAR 52.225-9, 52.225-11, 52.225-21, and 52.225-23, currently
approved under OMB Control Number 9000-0024, entitled ``Buy American
Act, Trade Agreements, and Duty-Free Entry, in accordance with the
Paperwork Reduction Act (44 U.S.C. 3501-3521).The impact, however, is
negligible, because the threshold changes are in line with inflation
and maintain the status quo. As a result, there is no change to the
estimated burden.
List of Subjects in 48 CFR Parts 22, 25, and 52
Government procurement.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 22, 25, and 52 as
set forth below:
0
1. The authority citation for 48 CFR parts 22, 25, and 52 continues to
read as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51
U.S.C. 20113.
PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS
22.1503 [Amended]
0
2. Amend section 22.1503 by--
0
a. Removing from paragraph (b)(3) ``$83,099'' and adding ``$92,319'' in
its place; and
0
b. Removing from paragraph (b)(4) ``$182,000'' and adding ``$183,000''
in its place.
PART 25--FOREIGN ACQUISITION
25.202 [Amended]
0
3. Amend section 25.202 by removing from paragraph (c) ``$7,008,000''
and adding ``$7,032,000'' in its place.
0
4. Amend section 25.402 by revising table 1 to paragraph (b) to read as
follows:
25.402 General.
* * * * *
(b) * * *
Table 1 to Paragraph (b)
----------------------------------------------------------------------------------------------------------------
Supply Service Construction
contract contract contract
Trade agreement (equal to or (equal to or (equal to or
exceeding) exceeding) exceeding)
----------------------------------------------------------------------------------------------------------------
WTO GPA..................................................... $183,000 $183,000 $7,032,000
FTAs:
Australia FTA............................................... 92,319 92,319 7,032,000
Bahrain FTA................................................. 183,000 183,000 12,001,460
CAFTA-DR (Costa Rica, Dominican Republic, El-Salvador, 92,319 92,319 7,032,000
Guatemala, Honduras, and Nicaragua)........................
Chile FTA................................................... 92,319 92,319 7,032,000
Colombia FTA................................................ 92,319 92,319 7,032,000
Korea FTA................................................... 100,000 100,000 7,032,000
Morocco FTA................................................. 183,000 183,000 7,032,000
NAFTA:
--Canada.................................................... 25,000 83,099 10,802,884
--Mexico.................................................... 92,319 92,319 12,001,460
Oman FTA.................................................... 183,000 183,000 12,001,460
Panama FTA.................................................. 183,000 183,000 7,032,000
Peru FTA.................................................... 183,000 183,000 7,032,000
Singapore FTA............................................... 92,319 92,319 7,032,000
Israeli Trade Act........................................... 50,000 .............. ..............
----------------------------------------------------------------------------------------------------------------
25.603 [Amended]
0
5. Amend section 25.603 by removing from paragraph (c)(1)
``$7,008,000'' and adding ``$7,032,000'' in its place.
25.1101 [Amended]
0
6. Amend section 25.1101 by--
0
a. Removing from paragraph (b)(1)(i)(A) ``$182,000'' and adding
``$183,000'' in its place;
0
b. Removing from paragraphs (b)(1)(iii) and (iv) ``$83,099'' and adding
``$92,319'' in its place;
0
c. Removing from paragraphs (b)(2)(iii) and (iv) ``$83,099'' and adding
``$92,319'' in its place;
0
d. Removing from paragraph (c)(1) ``$182,000'' and ``WTO GPA applies''
and adding ``$183,000'' and ``WTO GPA'' in their places, respectively;
and
0
e. Removing from paragraph (d) ``$182,000'' and adding ``$183,000'' in
its place.
25.1102 [Amended]
0
7. Amend section 25.1102 by--
0
a. Removing from the paragraph (a) introductory text paragraph (c)
introductory text ``$7,008,000'' and adding ``$7,032,000'' in its
place; and
0
b. Removing from paragraphs (c)(3) and (d)(3) ``$7,008,000'' and
``$10,802,884'' adding ``$7,032,000'' and ``$12,001,460'' in their
places, respectively.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
8. Amend section 52.204-8 by--
0
a. Revising the date of the provision; and
0
b. Removing from paragraphs (c)(1)(xxi)(C) and (D) ``$83,099'' and
adding ``$92,319'' in its place.
The revision reads as follows:
52.204-8 Annual Representations and Certifications.
* * * * *
Annual Representations and Certifications (Jan 2022)
* * * * *
0
9. Amend section 52.212-5 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (b)(28) ``(JAN 2020)'' and adding ``(JAN
2022)'' in its place.
The revisions read as follows:
[[Page 74531]]
52.212-5 Contract Terms and Conditions Required to Implement Statutes
or Executive Orders--Commercial Products and Commercial Services.
* * * * *
Contract Terms and Conditions Required To Implement Statutes or
Executive Orders--Commercial Products and Commercial Services (Jan
2022)
* * * * *
0
10. Amend section 52.213-4 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (b)(1)(ii) ``(JAN 2020)'' and adding ``(JAN
2022)'' in its place.
The revision reads as follows:
52.213-4 Terms and Conditions--Simplified Acquisitions (Other Than
Commercial Products and Commercial Services).
* * * * *
Terms and Conditions--Simplified Acquisitions (Other Than Commercial
Products and Commercial Services) (Jan 2022)
* * * * *
0
11. Amend section 52.222-19 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (a)(3) ``$83,099'' and adding ``$92,319'' in
its place; and
0
c. Removing from paragraph (a)(4) ``$182,000'' and adding ``$183,000''
in its place.
The revision reads as follows:
52.222-19 Child Labor--Cooperation with Authorities and Remedies.
* * * * *
Child Labor--Cooperation With Authorities and Remedies (Jan 2022)
* * * * *
[FR Doc. 2021-28083 Filed 12-29-21; 8:45 am]
BILLING CODE 6820-EP-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on December 30, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.