Defense Federal Acquisition Regulation Supplement; Free Trade Agreement-El Salvador, Honduras, and Nicaragua (DFARS Case 2006-D019), 34834-34836 [E6-9500]
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34834
Federal Register / Vol. 71, No. 116 / Friday, June 16, 2006 / Rules and Regulations
2. Section 237.102–70 is amended by
revising paragraph (d)(3) to read as
follows:
I
237.102–70 Prohibition on contracting for
firefighting or security-guard functions.
*
*
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*
(d) * * *
(3) Contract performance will not
extend beyond September 30, 2007.
[FR Doc. E6–9486 Filed 6–15–06; 8:45 am]
BILLING CODE 5001–08–P
A. Background
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Part 252
RIN 0750–AF43
Defense Federal Acquisition
Regulation Supplement; Free Trade
Agreement—El Salvador, Honduras,
and Nicaragua (DFARS Case 2006–
D019)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Interim rule with request for
comments.
jlentini on PROD1PC65 with RULES
AGENCY:
SUMMARY: DoD has issued an interim
rule amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to implement the Dominican
Republic-Central America-United States
Free Trade Agreement with respect to El
Salvador, Honduras, and Nicaragua. The
Free Trade Agreement waives the
applicability of the Buy American Act
for some foreign supplies and
construction materials and specifies
procurement procedures designed to
ensure fairness.
DATES: Effective date: June 16, 2006.
Comment date: Comments on the
interim rule should be submitted in
writing to the address shown below on
or before August 15, 2006, to be
considered in the formation of the final
rule.
ADDRESSES: You may submit comments,
identified by DFARS Case 2006–D019,
using any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail: dfars@osd.mil. Include
DFARS Case 2006–D019 in the subject
line of the message.
• Fax: (703) 602–0350.
• Mail: Defense Acquisition
Regulations System, Attn: Ms. Amy
Williams, OUSD(AT&L)DPAP(DARS),
IMD 3C132, 3062 Defense Pentagon,
Washington, DC 20301–3062.
VerDate Aug<31>2005
16:11 Jun 15, 2006
• Hand Delivery/Courier: Defense
Acquisition Regulations System, Crystal
Square 4, Suite 200A, 241 18th Street,
Arlington, VA 22202–3402.
Comments received generally will be
posted without change to https://
www.regulations.gov, including any
personal information provided.
FOR FURTHER INFORMATION CONTACT: Ms.
Amy Williams, (703) 602–0328.
SUPPLEMENTARY INFORMATION:
Jkt 208001
This interim rule amends DFARS
provisions and clauses to implement the
Dominican Republic-Central AmericaUnited States Free Trade Agreement
(CAFTA–DR) with respect to El
Salvador, Honduras, and Nicaragua.
Congress approved the CAFTA–DR in
the Dominican Republic-Central
America-United States Free Trade
Agreement Implementation Act (Pub. L.
109–53). Other signatory countries to
the CAFTA–DR are Costa Rica, the
Dominican Republic, and Guatemala.
The DFARS will be further amended
when the CAFTA–DR takes effect for
these countries. The CAFTA–DR waives
the applicability of the Buy American
Act for some foreign supplies and
construction materials and specifies
procurement procedures designed to
ensure fairness.
For supply and service contracts, the
CAFTA–DR has the same dollar
threshold as the other Free Trade
Agreements ($64,786), except that the
Morocco Free Trade Agreement has a
higher threshold that is equal to the
threshold for the World Trade
Organization Government Procurement
Agreement ($193,000); and the North
American Free Trade Agreement
(NAFTA) has a lower threshold with
respect to supply contracts involving
Canada ($25,000). For construction
contracts, the CAFTA–DR and the
Morocco Free Trade Agreement have the
same threshold as the Australia Free
Trade Agreement, the Chile Free Trade
Agreement, the Singapore Free Trade
Agreement, and the World Trade
Organization Government Procurement
Agreement ($7,407,000), which is lower
than the NAFTA threshold of
$8,422,165 for construction contracts.
Therefore, the DFARS provision and
clause that implement the Free Trade
Agreements below the World Trade
Organization Government Procurement
Agreement threshold (DFARS 252.225–
7035 and 252.225–7036) apply to end
products from all Free Trade Agreement
countries except Morocco. The
construction contract clause that
implements trade agreements (DFARS
252.225–7045) applies to all designated
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country construction material except
Mexican construction material, because
Canada, the other NAFTA country, is a
member of the World Trade
Organization Government Procurement
Agreement.
This rule was not subject to Office of
Management and Budget review under
Executive Order 12866, dated
September 30, 1993.
B. Regulatory Flexibility Act
DoD does not expect this rule to have
a significant economic impact on a
substantial number of small entities
within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq.
Although the rule opens up DoD
procurement to the products of El
Salvador, Honduras, and Nicaragua,
DoD does not believe there will be a
significant economic impact on U.S.
small businesses. DoD applies the trade
agreements to only those non-defense
items listed at DFARS 225.401–70, and
procurements that are set aside for small
businesses are exempt from application
of the trade agreements. Therefore, DoD
has not performed an initial regulatory
flexibility analysis. DoD invites
comments from small businesses and
other interested parties. DoD also will
consider comments from small entities
concerning the affected DFARS subparts
in accordance with 5 U.S.C. 610. Such
comments should be submitted
separately and should cite DFARS Case
2006–D019.
C. Paperwork Reduction Act
This interim rule affects the
certification and information collection
requirements in the provisions at
DFARS 252.225–7020 and 252.225–
7035, currently approved under Office
of Management and Budget Control
Number 0704–0229. The impact,
however, is negligible.
D. Determination To Issue an Interim
Rule
A determination has been made under
the authority of the Secretary of Defense
that urgent and compelling reasons exist
to publish an interim rule prior to
affording the public an opportunity to
comment. This interim rule implements
the Dominican Republic-Central
America-United States Free Trade
Agreement with respect to El Salvador,
Honduras, and Nicaragua, as approved
by Congress in Public Law 109–53. The
Free Trade Agreement waives the
applicability of the Buy American Act
for some foreign supplies and
construction materials from El Salvador,
Honduras, and Nicaragua, and specifies
procurement procedures designed to
ensure fairness. The Free Trade
E:\FR\FM\16JNR1.SGM
16JNR1
Federal Register / Vol. 71, No. 116 / Friday, June 16, 2006 / Rules and Regulations
Agreement became effective for El
Salvador on March 1, 2006, and for
Honduras and Nicaragua on April 1,
2006. Comments received in response to
this interim rule will be considered in
the formation of the final rule.
List of Subjects in 48 CFR Part 252
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR part 252 is
amended as follows:
I
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
1. The authority citation for 48 CFR
part 252 continues to read as follows:
I
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
252.212–7001
[Amended]
2. Section 252.212–7001 is amended
as follows:
I a. By revising the clause date to read
‘‘(JUN 2006)’’;
I b. In paragraph (b), in entry ‘‘252.225–
7021’’, by removing ‘‘(FEB 2006)’’ and
adding in its place ‘‘(JUN 2006)’’; and
I c. In paragraph (b), in entry ‘‘252.225–
7036’’, by removing ‘‘(JUN 2005)’’ and
adding in its place ‘‘(JUN 2006)’’.
I 3. Section 252.225–7013 is amended
by revising the clause date and
paragraph (a)(2) to read as follows:
I
252.225–7013
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Duty-Free Entry.
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jlentini on PROD1PC65 with RULES
Duty-Free Entry (JUN 2006)
(a) * * *
(2) Eligible product means—
(i) Designated country end product as
defined in the Trade Agreements clause
of this contract;
(ii) Free Trade Agreement country end
product, other than a Moroccan end
product, as defined in the Buy
American Act-Free Trade AgreementsBalance of Payments Program clause of
this contract; or
(iii) Canadian end product as defined
in Alternate I of the Buy American ActFree Trade Agreements-Balance of
Payments Program clause of this
contract.
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I 4. Section 252.225–7021 is amended
by revising the clause date and
paragraphs (a)(3)(ii) and (iv) to read as
follows:
252.225–7021
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VerDate Aug<31>2005
Trade agreements.
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16:11 Jun 15, 2006
Jkt 208001
Trade Agreements (JUN 2006)
(a) * * *
(3) * * *
(ii) A Free Trade Agreement country
(Australia, Canada, Chile, El Salvador,
Honduras, Mexico, Morocco, Nicaragua,
or Singapore);
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(iv) A Caribbean Basin country
(Antigua and Barbuda, Aruba, Bahamas,
Barbados, Belize, British Virgin Islands,
Costa Rica, Dominica, Dominican
Republic, Grenada, Guatemala, Guyana,
Haiti, Jamaica, Montserrat, Netherlands
Antilles, St. Kitts and Nevis, St. Lucia,
St. Vincent and the Grenadines, or
Trinidad and Tobago).
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I 5. Section 252.225–7035 is amended
by revising the clause date and
paragraphs (a), (b)(2), (c)(2)(ii), and
Alternate I to read as follows:
252.225–7035 Buy American Act-Free
Trade Agreements-Balance of Payments
Program Certificate.
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*
*
*
Buy American Act-Free Trade
Agreements-Balance of Payments
Program Certificate (JUN 2006)
(a) Definitions. Domestic end product,
Free Trade Agreement country, Free
Trade Agreement country end product,
foreign end product, Moroccan end
product, qualifying country end
product, and United States have the
meanings given in the Buy American
Act-Free Trade Agreements-Balance of
Payments Program clause of this
solicitation.
(b) * * *
(2) For line items subject to Free
Trade Agreements, will evaluate offers
of qualifying country end products or
Free Trade Agreement country end
products other than Moroccan end
products without regard to the
restrictions of the Buy American Act or
the Balance of Payments Program.
(c) * * *
(2) * * *
(ii) The offeror certifies that the
following supplies are Free Trade
Agreement country end products other
than Moroccan end products:
(Line Item Number)
Origin)
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*
(Country of
*
Alternate I (JUN 2006)
As prescribed in 225.1101(9),
substitute the phrase ‘‘Canadian end
product’’ for the phrases ‘‘Free Trade
Agreement country’’, ‘‘Free Trade
Agreement country end product’’, and
‘‘Moroccan end product’’ in paragraph
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34835
(a) of the basic provision; and substitute
the phrase ‘‘Canadian end products’’ for
the phrase ‘‘Free Trade Agreement
country end products other than
Moroccan end products’’ in paragraphs
(b)(2) and (c)(2)(ii) of the basic
provision.
I 6. Section 252.225–7036 is amended
as follows:
I a. By revising the clause date;
I b. By removing paragraph (a)(4);
I c. By redesignating paragraph (a)(5) as
paragraph (a)(4), and paragraphs (a)(6)
through (9) as paragraphs (a)(8) through
(11) respectively;
I d. By adding new paragraphs (a)(5)
through (7); and
I e. By revising paragraph (c) to read as
follows:
252.225–7036 Buy American Act-Free
Trade Agreements-Balance of Payments
Program.
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*
Buy American Act-Free Trade
Agreements-Balance of Payments
Program (JUN 2006)
(a) * * *
(5) Free Trade Agreement country
means Australia, Canada, Chile, El
Salvador, Honduras, Mexico, Morocco,
Nicaragua, or Singapore;
(6) Free Trade Agreement country end
product means an article that—
(i) Is wholly the growth, product, or
manufacture of a Free Trade Agreement
country; or
(ii) In the case of an article that
consists in whole or in part of materials
from another country or instrumentality,
has been substantially transformed in a
Free Trade Agreement country into a
new and different article of commerce
with a name, character, or use distinct
from that of the article or articles from
which it was transformed. The term
refers to a product offered for purchase
under a supply contract, but for
purposes of calculating the value of the
end product includes services (except
transportation services) incidental to its
supply, provided that the value of those
incidental services does not exceed the
value of the product itself.
(7) Moroccan end product means an
article that—
(i) Is wholly the growth, product, or
manufacture of Morocco; or
(ii) In the case of an article that
consists in whole or in part of materials
from another country or instrumentality,
has been substantially transformed in
Morocco into a new and different article
of commerce with a name, character, or
use distinct from that of the article or
articles from which it was transformed.
The term refers to a product offered for
purchase under a supply contract, but
E:\FR\FM\16JNR1.SGM
16JNR1
34836
Federal Register / Vol. 71, No. 116 / Friday, June 16, 2006 / Rules and Regulations
for purposes of calculating the value of
the end product includes services
(except transportation services)
incidental to its supply, provided that
the value of those incidental services
does not exceed the value of the product
itself.
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(c) The Contractor shall deliver under
this contract only domestic end
products unless, in its offer, it specified
delivery of qualifying country end
products, Free Trade Agreement country
end products other than Moroccan end
products, or other foreign end products
in the Buy American Act-Free Trade
Agreements-Balance of Payments
Program Certificate provision of the
solicitation. If the Contractor certified in
its offer that it will deliver a qualifying
country end product or a Free Trade
Agreement country end product other
than a Moroccan end product, the
Contractor shall deliver a qualifying
country end product, a Free Trade
Agreement country end product other
than a Moroccan end product, or, at the
Contractor’s option, a domestic end
product.
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7. Section 252.225–7045 is amended
by revising the clause date, the
definition of ‘‘Designated country’’ in
paragraph (a), and Alternate I to read as
follows:
252.225–7045 Balance of Payments
Program—Construction Material Under
Trade Agreements.
jlentini on PROD1PC65 with RULES
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Balance of Payments Program—
Construction Material Under Trade
Agreements (JUN 2006)
(a) * * *
Designated country means—
(1) A World Trade Organization
Government Procurement Agreement
(WTO GPA) country (Aruba, Austria,
Belgium, Canada, Cyprus, Czech
Republic, Denmark, Estonia, Finland,
France, Germany, Greece, Hong Kong,
Hungary, Iceland, Ireland, Israel, Italy,
Japan, Korea (Republic of), Latvia,
Liechtenstein, Lithuania, Luxembourg,
Malta, Netherlands, Norway, Poland,
Portugal, Singapore, Slovak Republic,
Slovenia, Spain, Sweden, Switzerland,
or the United Kingdom);
(2) A Free Trade Agreement country
(Australia, Canada, Chile, El Salvador,
Honduras, Mexico, Morocco, Nicaragua,
or Singapore);
(3) A least developed country
(Afghanistan, Angola, Bangladesh,
Benin, Bhutan, Burkina Faso, Burundi,
Cambodia, Cape Verde, Central African
Republic, Chad, Comoros, Democratic
Republic of Congo, Djibouti, East Timor,
Equatorial Guinea, Eritrea, Ethiopia,
VerDate Aug<31>2005
16:11 Jun 15, 2006
Jkt 208001
Gambia, Guinea, Guinea-Bissau, Haiti,
Kiribati, Laos, Lesotho, Madagascar,
Malawi, Maldives, Mali, Mauritania,
Mozambique, Nepal, Niger, Rwanda,
Samoa, Sao Tome and Principe,
Senegal, Sierra Leone, Solomon Islands,
Somalia, Tanzania, Togo, Tuvalu,
Uganda, Vanuatu, Yemen, or Zambia);
or
(4) A Caribbean Basin country
(Antigua and Barbuda, Aruba, Bahamas,
Barbados, Belize, British Virgin Islands,
Costa Rica, Dominica, Dominican
Republic, Grenada, Guatemala, Guyana,
Haiti, Jamaica, Montserrat, Netherlands
Antilles, St. Kitts and Nevis, St. Lucia,
St. Vincent and the Grenadines, or
Trinidad and Tobago).
*
*
*
*
*
Alternate I (JUN 2006). As prescribed
in 225.7503(b), add the following
definition of ‘‘Mexican construction
material’’ to paragraph (a) of the basic
clause, and substitute the following
paragraphs (b) and (c) for paragraphs (b)
and (c) of the basic clause:
Mexican construction material means
a construction material that—
(1) Is wholly the growth, product, or
manufacture of Mexico; or
(2) In the case of a construction
material that consists in whole or in part
of materials from another country, has
been substantially transformed in
Mexico into a new and different
construction material distinct from the
materials from which it was
transformed.
(b) This clause implements the
Balance of Payments Program by
providing a preference for domestic
construction material. In addition, the
Contracting Officer has determined that
the WTO GPA and all Free Trade
Agreements except NAFTA apply to this
acquisition. Therefore, the Balance of
Payments Program restrictions are
waived for designated country
construction material other than
Mexican construction material.
(c) The Contractor shall use only
domestic or designated country
construction material other than
Mexican construction material in
performing this contract, except for—(1)
Construction material valued at or
below the simplified acquisition
threshold in Part 2 of the Federal
Acquisition Regulation; or
(2) The construction material or
components listed by the Government
as follows:
[Contracting Officer to list applicable
excepted materials or indicate ‘‘none’’].
[FR Doc. E6–9500 Filed 6–15–06; 8:45 am]
BILLING CODE 5001–08–P
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DEPARTMENT OF STATE
48 CFR Parts 601, 611, 619, 622, 628,
and 652
[Public Notice 5444]
RIN 1400–AB90
Rule Title: Department of State
Acquisition Regulation
Department of State.
Final rule.
AGENCY:
ACTION:
SUMMARY: This rule makes final a
proposed rule issued on December 22,
2004, with several revisions. It revises
the DOSAR to formalize Department
policy regarding the application of the
Small Business Act to contracts
awarded by domestic contracting
activities where contract performance
takes place overseas; and, revises the
coverage regarding Defense Base Act
insurance. The final rule also contains
several miscellaneous amendments and
corrections not published on December
22, 2004, as outlined below. The
Department received public comments
from three sources on the proposed rule,
which are discussed below.
DATES: Effective Date: This rule is
effective June 16, 2006.
FOR FURTHER INFORMATION CONTACT:
Gladys Gines, Procurement Analyst,
Department of State, Office of the
Procurement Executive, 2201 C Street,
NW., Suite 603, State Annex Number 6,
Washington, DC 20522–0602; e-mail
address: ginesgg@state.gov.
SUPPLEMENTARY INFORMATION: The
Department published a proposed rule,
Public Notice 4938 at 69 FR 76660,
December 22, 2004, with a request for
comments, amending Parts 619, 625,
628, and 652 of Title 48 of the Code of
Federal Regulations. The rule made
three changes to the DOSAR: (1)
Formalized policy regarding the
application of the Small Business Act to
contracts awarded by domestic
contracting activities where contract
performance takes place overseas; (2)
added language to deal with U.S.
Government support to contractors
performing overseas; and (3) revised the
coverage regarding Defense Base Act
insurance. The proposed rule was
discussed in detail in Public Notice
4938. The Department is now
promulgating a final rule with changes
from the proposed rule.
In particular, the Department is not
finalizing that part of the proposed rule
dealing with U.S. Government support
to contractors performing overseas. The
Department of Defense published a final
rule on May 5, 2005 (70 FR 23790). That
final rule contained a clause for use in
E:\FR\FM\16JNR1.SGM
16JNR1
]]>Agencies
[Federal Register Volume 71, Number 116 (Friday, June 16, 2006)]
[Rules and Regulations]
[Pages 34834-34836]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-9500]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 252
RIN 0750-AF43
Defense Federal Acquisition Regulation Supplement; Free Trade
Agreement--El Salvador, Honduras, and Nicaragua (DFARS Case 2006-D019)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: DoD has issued an interim rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to implement the Dominican
Republic-Central America-United States Free Trade Agreement with
respect to El Salvador, Honduras, and Nicaragua. The Free Trade
Agreement waives the applicability of the Buy American Act for some
foreign supplies and construction materials and specifies procurement
procedures designed to ensure fairness.
DATES: Effective date: June 16, 2006.
Comment date: Comments on the interim rule should be submitted in
writing to the address shown below on or before August 15, 2006, to be
considered in the formation of the final rule.
ADDRESSES: You may submit comments, identified by DFARS Case 2006-D019,
using any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
E-mail: dfars@osd.mil. Include DFARS Case 2006-D019 in the
subject line of the message.
Fax: (703) 602-0350.
Mail: Defense Acquisition Regulations System, Attn: Ms.
Amy Williams, OUSD(AT&L)DPAP(DARS), IMD 3C132, 3062 Defense Pentagon,
Washington, DC 20301-3062.
Hand Delivery/Courier: Defense Acquisition Regulations
System, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA
22202-3402.
Comments received generally will be posted without change to http:/
/www.regulations.gov, including any personal information provided.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, (703) 602-0328.
SUPPLEMENTARY INFORMATION:
A. Background
This interim rule amends DFARS provisions and clauses to implement
the Dominican Republic-Central America-United States Free Trade
Agreement (CAFTA-DR) with respect to El Salvador, Honduras, and
Nicaragua. Congress approved the CAFTA-DR in the Dominican Republic-
Central America-United States Free Trade Agreement Implementation Act
(Pub. L. 109-53). Other signatory countries to the CAFTA-DR are Costa
Rica, the Dominican Republic, and Guatemala. The DFARS will be further
amended when the CAFTA-DR takes effect for these countries. The CAFTA-
DR waives the applicability of the Buy American Act for some foreign
supplies and construction materials and specifies procurement
procedures designed to ensure fairness.
For supply and service contracts, the CAFTA-DR has the same dollar
threshold as the other Free Trade Agreements ($64,786), except that the
Morocco Free Trade Agreement has a higher threshold that is equal to
the threshold for the World Trade Organization Government Procurement
Agreement ($193,000); and the North American Free Trade Agreement
(NAFTA) has a lower threshold with respect to supply contracts
involving Canada ($25,000). For construction contracts, the CAFTA-DR
and the Morocco Free Trade Agreement have the same threshold as the
Australia Free Trade Agreement, the Chile Free Trade Agreement, the
Singapore Free Trade Agreement, and the World Trade Organization
Government Procurement Agreement ($7,407,000), which is lower than the
NAFTA threshold of $8,422,165 for construction contracts. Therefore,
the DFARS provision and clause that implement the Free Trade Agreements
below the World Trade Organization Government Procurement Agreement
threshold (DFARS 252.225-7035 and 252.225-7036) apply to end products
from all Free Trade Agreement countries except Morocco. The
construction contract clause that implements trade agreements (DFARS
252.225-7045) applies to all designated country construction material
except Mexican construction material, because Canada, the other NAFTA
country, is a member of the World Trade Organization Government
Procurement Agreement.
This rule was not subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993.
B. Regulatory Flexibility Act
DoD does not expect this rule to have a significant economic impact
on a substantial number of small entities within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601, et seq. Although the rule
opens up DoD procurement to the products of El Salvador, Honduras, and
Nicaragua, DoD does not believe there will be a significant economic
impact on U.S. small businesses. DoD applies the trade agreements to
only those non-defense items listed at DFARS 225.401-70, and
procurements that are set aside for small businesses are exempt from
application of the trade agreements. Therefore, DoD has not performed
an initial regulatory flexibility analysis. DoD invites comments from
small businesses and other interested parties. DoD also will consider
comments from small entities concerning the affected DFARS subparts in
accordance with 5 U.S.C. 610. Such comments should be submitted
separately and should cite DFARS Case 2006-D019.
C. Paperwork Reduction Act
This interim rule affects the certification and information
collection requirements in the provisions at DFARS 252.225-7020 and
252.225-7035, currently approved under Office of Management and Budget
Control Number 0704-0229. The impact, however, is negligible.
D. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense that urgent and compelling reasons exist to publish an
interim rule prior to affording the public an opportunity to comment.
This interim rule implements the Dominican Republic-Central America-
United States Free Trade Agreement with respect to El Salvador,
Honduras, and Nicaragua, as approved by Congress in Public Law 109-53.
The Free Trade Agreement waives the applicability of the Buy American
Act for some foreign supplies and construction materials from El
Salvador, Honduras, and Nicaragua, and specifies procurement procedures
designed to ensure fairness. The Free Trade
[[Page 34835]]
Agreement became effective for El Salvador on March 1, 2006, and for
Honduras and Nicaragua on April 1, 2006. Comments received in response
to this interim rule will be considered in the formation of the final
rule.
List of Subjects in 48 CFR Part 252
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
0
Therefore, 48 CFR part 252 is amended as follows:
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
1. The authority citation for 48 CFR part 252 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
252.212-7001 [Amended]
0
2. Section 252.212-7001 is amended as follows:
0
a. By revising the clause date to read ``(JUN 2006)'';
0
b. In paragraph (b), in entry ``252.225-7021'', by removing ``(FEB
2006)'' and adding in its place ``(JUN 2006)''; and
0
c. In paragraph (b), in entry ``252.225-7036'', by removing ``(JUN
2005)'' and adding in its place ``(JUN 2006)''.
0
3. Section 252.225-7013 is amended by revising the clause date and
paragraph (a)(2) to read as follows:
252.225-7013 Duty-Free Entry.
* * * * *
Duty-Free Entry (JUN 2006)
(a) * * *
(2) Eligible product means--
(i) Designated country end product as defined in the Trade
Agreements clause of this contract;
(ii) Free Trade Agreement country end product, other than a
Moroccan end product, as defined in the Buy American Act-Free Trade
Agreements-Balance of Payments Program clause of this contract; or
(iii) Canadian end product as defined in Alternate I of the Buy
American Act-Free Trade Agreements-Balance of Payments Program clause
of this contract.
* * * * *
0
4. Section 252.225-7021 is amended by revising the clause date and
paragraphs (a)(3)(ii) and (iv) to read as follows:
252.225-7021 Trade agreements.
* * * * *
Trade Agreements (JUN 2006)
(a) * * *
(3) * * *
(ii) A Free Trade Agreement country (Australia, Canada, Chile, El
Salvador, Honduras, Mexico, Morocco, Nicaragua, or Singapore);
* * * * *
(iv) A Caribbean Basin country (Antigua and Barbuda, Aruba,
Bahamas, Barbados, Belize, British Virgin Islands, Costa Rica,
Dominica, Dominican Republic, Grenada, Guatemala, Guyana, Haiti,
Jamaica, Montserrat, Netherlands Antilles, St. Kitts and Nevis, St.
Lucia, St. Vincent and the Grenadines, or Trinidad and Tobago).
* * * * *
0
5. Section 252.225-7035 is amended by revising the clause date and
paragraphs (a), (b)(2), (c)(2)(ii), and Alternate I to read as follows:
252.225-7035 Buy American Act-Free Trade Agreements-Balance of
Payments Program Certificate.
* * * * *
Buy American Act-Free Trade Agreements-Balance of Payments Program
Certificate (JUN 2006)
(a) Definitions. Domestic end product, Free Trade Agreement
country, Free Trade Agreement country end product, foreign end product,
Moroccan end product, qualifying country end product, and United States
have the meanings given in the Buy American Act-Free Trade Agreements-
Balance of Payments Program clause of this solicitation.
(b) * * *
(2) For line items subject to Free Trade Agreements, will evaluate
offers of qualifying country end products or Free Trade Agreement
country end products other than Moroccan end products without regard to
the restrictions of the Buy American Act or the Balance of Payments
Program.
(c) * * *
(2) * * *
(ii) The offeror certifies that the following supplies are Free
Trade Agreement country end products other than Moroccan end products:
(Line Item Number) (Country of Origin)
* * * * *
Alternate I (JUN 2006)
As prescribed in 225.1101(9), substitute the phrase ``Canadian end
product'' for the phrases ``Free Trade Agreement country'', ``Free
Trade Agreement country end product'', and ``Moroccan end product'' in
paragraph (a) of the basic provision; and substitute the phrase
``Canadian end products'' for the phrase ``Free Trade Agreement country
end products other than Moroccan end products'' in paragraphs (b)(2)
and (c)(2)(ii) of the basic provision.
0
6. Section 252.225-7036 is amended as follows:
0
a. By revising the clause date;
0
b. By removing paragraph (a)(4);
0
c. By redesignating paragraph (a)(5) as paragraph (a)(4), and
paragraphs (a)(6) through (9) as paragraphs (a)(8) through (11)
respectively;
0
d. By adding new paragraphs (a)(5) through (7); and
0
e. By revising paragraph (c) to read as follows:
252.225-7036 Buy American Act-Free Trade Agreements-Balance of
Payments Program.
* * * * *
Buy American Act-Free Trade Agreements-Balance of Payments Program (JUN
2006)
(a) * * *
(5) Free Trade Agreement country means Australia, Canada, Chile, El
Salvador, Honduras, Mexico, Morocco, Nicaragua, or Singapore;
(6) Free Trade Agreement country end product means an article
that--
(i) Is wholly the growth, product, or manufacture of a Free Trade
Agreement country; or
(ii) In the case of an article that consists in whole or in part of
materials from another country or instrumentality, has been
substantially transformed in a Free Trade Agreement country into a new
and different article of commerce with a name, character, or use
distinct from that of the article or articles from which it was
transformed. The term refers to a product offered for purchase under a
supply contract, but for purposes of calculating the value of the end
product includes services (except transportation services) incidental
to its supply, provided that the value of those incidental services
does not exceed the value of the product itself.
(7) Moroccan end product means an article that--
(i) Is wholly the growth, product, or manufacture of Morocco; or
(ii) In the case of an article that consists in whole or in part of
materials from another country or instrumentality, has been
substantially transformed in Morocco into a new and different article
of commerce with a name, character, or use distinct from that of the
article or articles from which it was transformed. The term refers to a
product offered for purchase under a supply contract, but
[[Page 34836]]
for purposes of calculating the value of the end product includes
services (except transportation services) incidental to its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.
* * * * *
(c) The Contractor shall deliver under this contract only domestic
end products unless, in its offer, it specified delivery of qualifying
country end products, Free Trade Agreement country end products other
than Moroccan end products, or other foreign end products in the Buy
American Act-Free Trade Agreements-Balance of Payments Program
Certificate provision of the solicitation. If the Contractor certified
in its offer that it will deliver a qualifying country end product or a
Free Trade Agreement country end product other than a Moroccan end
product, the Contractor shall deliver a qualifying country end product,
a Free Trade Agreement country end product other than a Moroccan end
product, or, at the Contractor's option, a domestic end product.
* * * * *
7. Section 252.225-7045 is amended by revising the clause date, the
definition of ``Designated country'' in paragraph (a), and Alternate I
to read as follows:
252.225-7045 Balance of Payments Program--Construction Material Under
Trade Agreements.
* * * * *
Balance of Payments Program--Construction Material Under Trade
Agreements (JUN 2006)
(a) * * *
Designated country means--
(1) A World Trade Organization Government Procurement Agreement
(WTO GPA) country (Aruba, Austria, Belgium, Canada, Cyprus, Czech
Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong
Kong, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea (Republic
of), Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands,
Norway, Poland, Portugal, Singapore, Slovak Republic, Slovenia, Spain,
Sweden, Switzerland, or the United Kingdom);
(2) A Free Trade Agreement country (Australia, Canada, Chile, El
Salvador, Honduras, Mexico, Morocco, Nicaragua, or Singapore);
(3) A least developed country (Afghanistan, Angola, Bangladesh,
Benin, Bhutan, Burkina Faso, Burundi, Cambodia, Cape Verde, Central
African Republic, Chad, Comoros, Democratic Republic of Congo,
Djibouti, East Timor, Equatorial Guinea, Eritrea, Ethiopia, Gambia,
Guinea, Guinea-Bissau, Haiti, Kiribati, Laos, Lesotho, Madagascar,
Malawi, Maldives, Mali, Mauritania, Mozambique, Nepal, Niger, Rwanda,
Samoa, Sao Tome and Principe, Senegal, Sierra Leone, Solomon Islands,
Somalia, Tanzania, Togo, Tuvalu, Uganda, Vanuatu, Yemen, or Zambia); or
(4) A Caribbean Basin country (Antigua and Barbuda, Aruba, Bahamas,
Barbados, Belize, British Virgin Islands, Costa Rica, Dominica,
Dominican Republic, Grenada, Guatemala, Guyana, Haiti, Jamaica,
Montserrat, Netherlands Antilles, St. Kitts and Nevis, St. Lucia, St.
Vincent and the Grenadines, or Trinidad and Tobago).
* * * * *
Alternate I (JUN 2006). As prescribed in 225.7503(b), add the
following definition of ``Mexican construction material'' to paragraph
(a) of the basic clause, and substitute the following paragraphs (b)
and (c) for paragraphs (b) and (c) of the basic clause:
Mexican construction material means a construction material that--
(1) Is wholly the growth, product, or manufacture of Mexico; or
(2) In the case of a construction material that consists in whole
or in part of materials from another country, has been substantially
transformed in Mexico into a new and different construction material
distinct from the materials from which it was transformed.
(b) This clause implements the Balance of Payments Program by
providing a preference for domestic construction material. In addition,
the Contracting Officer has determined that the WTO GPA and all Free
Trade Agreements except NAFTA apply to this acquisition. Therefore, the
Balance of Payments Program restrictions are waived for designated
country construction material other than Mexican construction material.
(c) The Contractor shall use only domestic or designated country
construction material other than Mexican construction material in
performing this contract, except for--(1) Construction material valued
at or below the simplified acquisition threshold in Part 2 of the
Federal Acquisition Regulation; or
(2) The construction material or components listed by the
Government as follows:
[Contracting Officer to list applicable excepted materials or indicate
``none''].
[FR Doc. E6-9500 Filed 6-15-06; 8:45 am]
BILLING CODE 5001-08-P
