Federal Acquisition Regulation; FAR Case 2006-017, Free Trade Agreements-Bahrain and Guatemala, 67776-67778 [06-9306]
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67776
Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Rules and Regulations
FAR do not impose information
collection requirements that require the
approval of the Office of Management
and Budget under 44 U.S.C. 3501, et
seq.
List of Subjects in 48 CFR Parts 25 and
52
Government procurement.
Dated: November 15, 2006.
Ralph De Stefano,
Director, Contract Policy Division.
Interim Rule Adopted as Final Without
Change
Accordingly, the interim rule
amending 48 CFR parts 25 and 52,
which was published at 71 FR 20305,
April 19, 2006, is adopted as a final rule
without change.
I
[FR Doc. 06–9307 Filed 11–21–06; 8:45 am]
BILLING CODE 6820–EP–S
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 25 and 52
[FAC 2005–14; FAR Case 2006–017; Item
III; Docket 2006–0020, Sequence 11]
RIN 9000–AK61
Federal Acquisition Regulation; FAR
Case 2006–017, Free Trade
Agreements—Bahrain and Guatemala
2006–017, by any of the following
methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Search for any
document by first selecting the proper
document types and selecting ‘‘Federal
Acquisition Regulation’’ as the agency
of choice. At the ‘‘Keyword’’ prompt,
type in the FAR case number (for
example, FAR Case 2006–001) and click
on the ‘‘Submit’’ button. You may also
search for any document by clicking on
the ‘‘Advanced search/document
search’’ tab at the top of the screen,
selecting from the agency field ‘‘Federal
Acquisition Regulation’’, and typing the
FAR case number in the keyword field.
Select the ‘‘Submit’’ button.
• Fax: 202–501–4067.
• Mail: General Services
Administration, Regulatory Secretariat
(VIR), 1800 F Street, NW, Room 4035,
ATTN: Laurieann Duarte, Washington,
DC 20405.
Instructions: Please submit comments
only and cite FAC 2005–14, FAR case
2006–017, in all correspondence related
to this case. All comments received will
be posted without change to https://
www.regulations.gov, including any
personal and/or business confidential
information provided.
FOR FURTHER INFORMATION CONTACT: For
clarification of content, contact Ms.
Jeritta Parnell, Procurement Analyst, at
(202) 501–4082. Please cite FAC 2005–
14, FAR case 2006–017. For information
pertaining to status or publication
schedules, contact the FAR Secretariat
at (202) 501–4755.
SUPPLEMENTARY INFORMATION:
AGENCIES:
A. Background
SUMMARY: The Civilian Agency
Acquisition Council and the Defense
Acquisition Regulations Council
(Councils) have agreed on an interim
rule amending the Federal Acquisition
Regulation (FAR) to implement the
Dominican Republic—Central
America—United States Free Trade
Agreement with respect to Guatemala
and the United States—Bahrain Free
Trade Agreement.
DATES: Effective Date: November 22,
2006.
Comment Date: Interested parties
should submit written comments to the
FAR Secretariat on or before January 22,
2007.
ADDRESSES: Submit comments
identified by FAC 2005–14, FAR case
This rule amends FAR Part 25 and the
corresponding clauses in Part 52 to
implement the Dominican Republic—
Central America—United States Free
Trade Agreement (CAFTA-DR) with
respect to Guatemala and the United
States—Bahrain Free Trade Agreement
(FTA). Congress approved these trade
agreements in the Dominican
Republic—Central America—United
States Free Trade Agreement
Implementation Act (Public Law 109–
53) and the United States—Bahrain Free
Trade Agreement Implementation Act
(Pub. L. 109–169), respectively. These
trade agreements waive the applicability
of the Buy American Act for some
foreign supplies and construction
materials from Guatemala and Bahrain
and specify procurement procedures
designed to ensure fairness in the
acquisition of supplies and services.
This interim rule adds Bahrain and
Guatemala to the definition of ‘‘Free
Trade Agreement country.’’ The rule
pwalker on PROD1PC61 with RULES2
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Interim rule with request for
comments.
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also deletes Guatemala from the
definition of ‘‘Caribbean Basin country’’
because, in accordance with Section
201(a)(3) of Pub. L. 109–53, when the
CAFTA-DR agreement enters into force
with respect to a country, that country
is no longer designated as a beneficiary
country for purposes of the Caribbean
Basin Economic Recovery Act.
The excluded services for the Bahrain
FTA are the same as for the CAFTA-DR,
Chile FTA, and NAFTA. Guatemala has
the same thresholds as the other
CAFTA-DR countries. The Bahrain FTA
threshold for supply and service
contracts is $193,000. For construction
contracts, the Bahrain FTA threshold is
$8,422,165.
Like the Morocco FTA, the Bahrain
FTA threshold for supplies and services
is higher than the thresholds for the
other FTAs. Therefore, Bahrainian end
products are not covered by the Buy
American Act—Free Trade
Agreements—Israeli Trade Act
provision and clause (FAR 52.225–3 and
52.225–4). Similarly, like NAFTA, the
Bahrain FTA threshold for construction
is higher than the thresholds of the
other FTAs. Therefore Bahrainian
construction material is excluded from
coverage under the Buy American Act—
Construction Materials under Trade
Agreements provision and clause
(52.225–11 and 52.225–12) for
acquisitions less than $8,422,165
(Alternate I).
This is not a significant regulatory
action and, therefore, was not subject to
review under Section 6(b) of Executive
Order 12866, Regulatory Planning and
Review, dated September 30, 1993. This
rule is not a major rule under 5 U.S.C.
804.
B. Regulatory Flexibility Act
The interim rule is not expected 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 Government
procurement to the goods and services
of Guatemala and Bahrain, the Councils
do not anticipate any significant
economic impact on U.S. small
businesses. The Department of Defense
only applies the trade agreements to the
non-defense items listed at DFARS
225.401–70, and acquisitions that are set
aside for small businesses are exempt.
Therefore, an Initial Regulatory
Flexibility Analysis has not been
performed. The Councils will consider
comments from small entities
concerning the affected FAR Parts 25
and 52 in accordance with 5 U.S.C. 610.
Interested parties must submit such
comments separately and should cite 5
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Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Rules and Regulations
U.S.C. 601, et seq. (FAC 2005–14, FAR
case 2006–017), in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does
apply, because the interim rule affects
the certification and information
collection requirements in the
provisions at FAR 52.212–3, 52.225–4,
52.225–6, and 52.225–11 currently
approved under OMB clearances 9000–
0136, 9000–0130, 9000–0025, and 9000–
0141 respectively. 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
(DoD), the Administrator of General
Services (GSA), and the Administrator
of the National Aeronautics and Space
Administration (NASA) that urgent and
compelling reasons exist to promulgate
this interim rule without prior
opportunity for public comment. This
action is necessary because the CAFTADR took effect with respect to
Guatemala on July 1, 2006, and the
Bahrain FTA took effect on August 1,
2006. However, pursuant to Public Law
98–577 and FAR 1.501, the Councils
will consider public comments received
in response to this interim rule in the
formation of the final rule.
List of Subjects in 48 CFR Parts 25 and
52
Government procurement.
Dated: November 15, 2006.
Ralph De Stefano,
Director, Contract Policy Division.
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 137; and 42 U.S.C. 2473(c).
PART 25—FOREIGN ACQUISITION
[Amended]
2. Amend section 25.003 by—
a. Removing from the definition
‘‘Caribbean Basin country’’,
‘‘Guatemala,’’;
I b. Adding to the definition in
paragraph (2) of ‘‘Designated country’’,
‘‘Bahrain,’’ after ‘‘Australia,’’ and
‘‘Guatemala,’’ after ‘‘El Salvador,’’, and
removing from paragraph (4),
‘‘Guatemala,’’; and
I c. Adding to the definition ‘‘Free
Trade Agreement country’’, ‘‘Bahrain,’’
after ‘‘Australia,’’ and ‘‘Guatemala,’’
after ‘‘El Salvador,’’.
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Scope of subpart.
(a) * * *
(2) * * *
(vii) United States-Bahrain Free Trade
Agreement, as approved by Congress in
the United States-Bahrain Free Trade
Agreement Implementation Act (Pub. L.
109–169);
*
*
*
*
*
I 4. Amend section 25.401(b) by
revising the third column of the table
heading to read as follows:
25.401
*
Exceptions.
*
*
(b) * * *
***
*
***
*
*
25.402
*
*
Bahrain FTA,
CAFTA-DR,
Chile FTA, and
NAFTA
*
***
*
[Amended]
5. Amend section 25.402(b), in the
table, by adding after ‘‘Australia FTA’’
the entry ‘‘Bahrain FTA’’ and in its
corresponding line items ‘‘$193,000’’,
‘‘$193,000’’, and ‘‘$8,422,165’’,
respectively; and adding ‘‘Guatemala,’’
after ‘‘El Salvador,’’.
I
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
[Amended]
6. Amend section 52.212–3 by—
a. Revising the date of the clause to
read ‘‘(NOV 2006)’’;
I b. Adding in the second sentence of
paragraph (g)(1)(i), ‘‘Bahrainian end
product,’’ after ‘‘The terms’’; and
I c. Removing from paragraph (g)(1)(ii),
‘‘(other than Moroccan end products)’’
and adding ‘‘(other than Bahrainian or
Moroccan end products)’’ in its place,
and removing from the table heading
‘‘(Other than Moroccan End Products)’’
and adding ‘‘(Other than Bahrainian or
Moroccan End Products)’’ in its place.
I 7. Amend section 52.212–5 by—
I a. Revising the date of the clause;
I b. Revising paragraph (b)(24)(i); and
I c. Removing from paragraph (b)(25)
‘‘(JUN 2006)’’ and adding ‘‘(NOV 2006)’’
in its place.
The revised text reads as follows:
I
I
Therefore, DoD, GSA, and NASA
amend 48 CFR parts 25 and 52 as set
forth below:
I 1. The authority citation for 48 CFR
parts 25 and 52 continues to read as
follows:
I
I
25.400
52.212–3
I
25.003
3. Amend section 25.400 by removing
from the end of paragraph (a)(2)(v)
‘‘and’’; adding at the end of paragraph
(a)(2)(vi) ‘‘and’’; and adding a new
paragraph (a)(2)(vii) to read as follows:
I
52.212–5 Contract Terms and Conditions
Required to Implement Statutes or
Executive Orders—Commercial Items.
*
*
*
*
*
CONTRACT TERMS AND CONDITIONS
REQUIRED TO IMPLEMENT STATUTES OR
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67777
EXECUTIVE ORDERS—COMMERCIAL
ITEMS (NOV 2006)
*
*
*
*
*
(b) * * *
(24)(i) 52.225–3, Buy American Act—
Free Trade Agreements—Israeli Trade
Act (NOV 2006) (41 U.S.C. 10a–10d, 19
U.S.C. 3301 note, 19 U.S.C. 2112 note,
Pub. L 108–77, 108–78, 108–286, 109–
53 and 109–169).
*
*
*
*
*
I 8. Amend section 52.225–3 by—
I a. Revising the date of the clause;
I b. Adding in paragraph (a), in
alphabetical order, the definition
‘‘Bahrainian end product’’;
I c. Adding in the definition ‘‘Free
Trade Agreement country’’ ‘‘Bahrain,’’
after ‘‘Australia,’’ and ‘‘Guatemala,’’
after ‘‘El Salvador,’’; and
I d. Removing from the first sentence of
paragraph (c) ‘‘(except the Morocco
FTA)’’ and adding ‘‘(except the Bahrain
and Morocco FTA)’’ in its place;
removing from the fourth sentence
‘‘(other than a Moroccan end product)’’
each time it appears (twice); and adding
‘‘(other than a Bahrainian or Moroccan
end product)’’ in its place.
The revised text reads as follows:
52.225–3 Buy American Act—Free Trade
Agreements—Israeli Trade Act.
*
*
*
*
*
BUY AMERICAN ACT—FREE TRADE
AGREEMENTS—ISRAELI TRADE ACT (NOV
2006)
(a) Definitions. * * *
Bahrainian end product means an
article that—
(1) Is wholly the growth, product, or
manufacture of Bahrain; or
(2) In the case of an article that
consists in whole or in part of materials
from another country, has been
substantially transformed in Bahrain
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 the article, provided that
the value of those incidental services
does not exceed that of the article itself.
*
*
*
*
*
52.225–4
[Amended]
9. Amend section 52.225–4 by—
a. Revising the date of the clause to
read ‘‘(NOV 2006)’’;
I b. Adding to the second sentence in
paragraph (a) ‘‘Bahrainian end product,’’
after ‘‘The terms’’; and
I c. Removing from paragraph (b),
‘‘(other than Moroccan end products)’’
I
I
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Federal Register / Vol. 71, No. 225 / Wednesday, November 22, 2006 / Rules and Regulations
and adding ‘‘(other than Bahrainian or
Moroccan end products)’’ in its place,
and removing from the table heading
‘‘(Other than Moroccan End Products)’’
and adding ‘‘(Other than Bahrainian or
Moroccan End Products)’’ in its place.
I 10. Amend section 52.225–5 by—
I a. Revising the date of the clause;
I b. Revising paragraph (2) of the
definition ‘‘Designated country’’; and
I c. Removing from paragraph (4) of the
definition ‘‘Designated country’’,
‘‘Guatemala,’’.
The revised text reads as follows:
52.225–5
*
*
Trade Agreements.
*
*
*
TRADE AGREEMENTS (NOV 2006)
*
*
*
*
*
(a) * * *
Designated country * * *
(2) A Free Trade Agreement country
(Australia, Bahrain, Canada, Chile, El
Salvador, Guatemala, Honduras,
Mexico, Morocco, Nicaragua, or
Singapore);
*
*
*
*
*
I 11. Amend section 52.225–11 by—
I a. Revising the date of the clause;
I b. Revising paragraph (2) of the
definition ‘‘Designated country’’;
I c. Removing ‘‘Guatemala’’ from
paragraph (4) of the definition
‘‘Designated country’’; and
I d. Revising Alternate I.
The revised text reads as follows:
52.225–11 Buy American Act—
Construction Materials under Trade
Agreements.
*
*
*
*
*
BUY AMERICAN ACT—CONSTRUCTION
MATERIALS UNDER TRADE AGREEMENTS
(NOV 2006)
*
*
*
*
*
(a) * * *
Designated country * * *
(2) A Free Trade Agreement country
(Australia, Bahrain, Canada, Chile, El
Salvador, Guatemala, Honduras,
Mexico, Morocco, Nicaragua, or
Singapore);
*
*
*
*
*
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Alternate I (NOV 2006). As prescribed in
25.1102(c)(3), add the following definitions
of ‘‘Bahrainian construction material’’ and
‘‘Mexican construction material’’ to
paragraph (a) of the basic clause, and
substitute the following paragraphs (b)(1) and
(b)(2) for paragraphs (b)(1) and (b)(2) of the
basic clause:
Bahrainian construction material
means a construction material that—
(1) Is wholly the growth, product, or
manufacture of Bahrain; 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
Bahrain into a new and different
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construction material distinct from the
materials from which it was
transformed.
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) Construction materials. (1) This
clause implements the Buy American
Act (41 U.S.C. 10a - 10d) by providing
a preference for domestic construction
material. In addition, the Contracting
Officer has determined that the WTO
GPA and all the Free Trade Agreements
except NAFTA apply to this acquisition.
Therefore, the Buy American Act
restrictions are waived for designated
country construction materials other
than Bahrainian or Mexican
construction materials.
(2) The Contractor shall use only
domestic or designated country
construction material other than
Bahrainian or Mexican construction
material in performing this contract,
except as provided in paragraphs (b)(3)
and (b)(4) of this clause.
I 12. Amend section 52.225–12 in
Alternate II, by revising the date of the
alternate, the introductory text,
paragraph (d)(1), and the first sentence
of the introductory text of paragraph
(d)(3) to read as follows:
52.225–12 Notice of Buy American Act
Requirement—Construction Materials
Under Trade Agreements.
*
*
*
*
*
Alternate II (NOV 2006). As prescribed in
25.1102(d)(3), add the definitions of
‘‘Bahrainian construction material’’ and
‘‘Mexican construction material’’ to
paragraph (a) and substitute the following
paragraph (d) for paragraph (d) of the basic
provision:
(d) Alternate offers. (1) When an offer
includes foreign construction material,
except foreign construction material
from a designated country other than
Bahrain or Mexico, that is not listed by
the Government in this solicitation in
paragraph (b)(3) of FAR clause 52.225–
11, the offeror also may submit an
alternate offer based on use of
equivalent domestic or designated
country construction material other than
Bahrainian or Mexican construction
material.
*
*
*
*
*
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(3) If the Government determines that
a particular exception requested in
accordance with paragraph (c) of FAR
clause 52.225–11 does not apply, the
Government will evaluate only those
offers based on use of the equivalent
domestic or designated country
construction material other than
Bahrainian or Mexican construction
material. * * *
*
*
*
*
*
[FR Doc. 06–9306 Filed 11–21–06; 8:45 am]
BILLING CODE 6820–EP–S
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 25 and 52
[FAC 2005–14; FAR Case 2006–001; Item
IV; Docket 2006–0020, Sequence 18]
RIN 9000–AK45
Federal Acquisition Regulation; FAR
Case 2006–001, Free Trade
Agreements—Morocco
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
AGENCIES:
SUMMARY: The Civilian Agency
Acquisition Council and the Defense
Acquisition Regulations Council
(Councils) agree to adopt as final,
without change, an interim rule that
amended the Federal Acquisition
Regulation (FAR) to implement the new
Free Trade Agreement with Morocco as
approved by Congress (Public Law 108–
302).
DATES: Effective Date: November 22,
2006.
FOR FURTHER INFORMATION CONTACT: For
clarification of content, contact Ms.
Jeritta Parnell, Procurement Analyst, at
(202) 501–4082. Please cite FAC 2005–
14, FAR case 2006–001. For information
pertaining to status or publication
schedules, contact the FAR Secretariat
at (202) 501–4755.
SUPPLEMENTARY INFORMATION:
A. Background
DoD, GSA, and NASA published an
interim rule in the Federal Register at
71 FR 20306 on April 19, 2006, to
implement the new Free Trade
Agreement with Morocco as approved
by Congress (Public Law 108–302). This
Free Trade Agreement waives the
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]]>Agencies
[Federal Register Volume 71, Number 225 (Wednesday, November 22, 2006)]
[Rules and Regulations]
[Pages 67776-67778]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-9306]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 25 and 52
[FAC 2005-14; FAR Case 2006-017; Item III; Docket 2006-0020, Sequence
11]
RIN 9000-AK61
Federal Acquisition Regulation; FAR Case 2006-017, Free Trade
Agreements--Bahrain and Guatemala
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) have agreed on an interim
rule amending the Federal Acquisition Regulation (FAR) to implement the
Dominican Republic--Central America--United States Free Trade Agreement
with respect to Guatemala and the United States--Bahrain Free Trade
Agreement.
DATES: Effective Date: November 22, 2006.
Comment Date: Interested parties should submit written comments to
the FAR Secretariat on or before January 22, 2007.
ADDRESSES: Submit comments identified by FAC 2005-14, FAR case 2006-
017, by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Search for any document by first selecting the proper document types
and selecting ``Federal Acquisition Regulation'' as the agency of
choice. At the ``Keyword'' prompt, type in the FAR case number (for
example, FAR Case 2006-001) and click on the ``Submit'' button. You may
also search for any document by clicking on the ``Advanced search/
document search'' tab at the top of the screen, selecting from the
agency field ``Federal Acquisition Regulation'', and typing the FAR
case number in the keyword field. Select the ``Submit'' button.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (VIR), 1800 F Street, NW, Room 4035, ATTN: Laurieann
Duarte, Washington, DC 20405.
Instructions: Please submit comments only and cite FAC 2005-14, FAR
case 2006-017, in all correspondence related to this case. All comments
received will be posted without change to https://www.regulations.gov,
including any personal and/or business confidential information
provided.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
Ms. Jeritta Parnell, Procurement Analyst, at (202) 501-4082. Please
cite FAC 2005-14, FAR case 2006-017. For information pertaining to
status or publication schedules, contact the FAR Secretariat at (202)
501-4755.
SUPPLEMENTARY INFORMATION:
A. Background
This rule amends FAR Part 25 and the corresponding clauses in Part
52 to implement the Dominican Republic--Central America--United States
Free Trade Agreement (CAFTA-DR) with respect to Guatemala and the
United States--Bahrain Free Trade Agreement (FTA). Congress approved
these trade agreements in the Dominican Republic--Central America--
United States Free Trade Agreement Implementation Act (Public Law 109-
53) and the United States--Bahrain Free Trade Agreement Implementation
Act (Pub. L. 109-169), respectively. These trade agreements waive the
applicability of the Buy American Act for some foreign supplies and
construction materials from Guatemala and Bahrain and specify
procurement procedures designed to ensure fairness in the acquisition
of supplies and services.
This interim rule adds Bahrain and Guatemala to the definition of
``Free Trade Agreement country.'' The rule also deletes Guatemala from
the definition of ``Caribbean Basin country'' because, in accordance
with Section 201(a)(3) of Pub. L. 109-53, when the CAFTA-DR agreement
enters into force with respect to a country, that country is no longer
designated as a beneficiary country for purposes of the Caribbean Basin
Economic Recovery Act.
The excluded services for the Bahrain FTA are the same as for the
CAFTA-DR, Chile FTA, and NAFTA. Guatemala has the same thresholds as
the other CAFTA-DR countries. The Bahrain FTA threshold for supply and
service contracts is $193,000. For construction contracts, the Bahrain
FTA threshold is $8,422,165.
Like the Morocco FTA, the Bahrain FTA threshold for supplies and
services is higher than the thresholds for the other FTAs. Therefore,
Bahrainian end products are not covered by the Buy American Act--Free
Trade Agreements--Israeli Trade Act provision and clause (FAR 52.225-3
and 52.225-4). Similarly, like NAFTA, the Bahrain FTA threshold for
construction is higher than the thresholds of the other FTAs. Therefore
Bahrainian construction material is excluded from coverage under the
Buy American Act--Construction Materials under Trade Agreements
provision and clause (52.225-11 and 52.225-12) for acquisitions less
than $8,422,165 (Alternate I).
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
B. Regulatory Flexibility Act
The interim rule is not expected 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 Government procurement to the goods and services of Guatemala
and Bahrain, the Councils do not anticipate any significant economic
impact on U.S. small businesses. The Department of Defense only applies
the trade agreements to the non-defense items listed at DFARS 225.401-
70, and acquisitions that are set aside for small businesses are
exempt. Therefore, an Initial Regulatory Flexibility Analysis has not
been performed. The Councils will consider comments from small entities
concerning the affected FAR Parts 25 and 52 in accordance with 5 U.S.C.
610. Interested parties must submit such comments separately and should
cite 5
[[Page 67777]]
U.S.C. 601, et seq. (FAC 2005-14, FAR case 2006-017), in
correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does apply, because the interim rule
affects the certification and information collection requirements in
the provisions at FAR 52.212-3, 52.225-4, 52.225-6, and 52.225-11
currently approved under OMB clearances 9000-0136, 9000-0130, 9000-
0025, and 9000-0141 respectively. 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 (DoD), the Administrator of General Services (GSA), and the
Administrator of the National Aeronautics and Space Administration
(NASA) that urgent and compelling reasons exist to promulgate this
interim rule without prior opportunity for public comment. This action
is necessary because the CAFTA-DR took effect with respect to Guatemala
on July 1, 2006, and the Bahrain FTA took effect on August 1, 2006.
However, pursuant to Public Law 98-577 and FAR 1.501, the Councils will
consider public comments received in response to this interim rule in
the formation of the final rule.
List of Subjects in 48 CFR Parts 25 and 52
Government procurement.
Dated: November 15, 2006.
Ralph De Stefano,
Director, Contract Policy Division.
0
Therefore, DoD, GSA, and NASA amend 48 CFR parts 25 and 52 as set forth
below:
0
1. The authority citation for 48 CFR parts 25 and 52 continues to read
as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 25--FOREIGN ACQUISITION
25.003 [Amended]
0
2. Amend section 25.003 by--
0
a. Removing from the definition ``Caribbean Basin country'',
``Guatemala,'';
0
b. Adding to the definition in paragraph (2) of ``Designated country'',
``Bahrain,'' after ``Australia,'' and ``Guatemala,'' after ``El
Salvador,'', and removing from paragraph (4), ``Guatemala,''; and
0
c. Adding to the definition ``Free Trade Agreement country'',
``Bahrain,'' after ``Australia,'' and ``Guatemala,'' after ``El
Salvador,''.
0
3. Amend section 25.400 by removing from the end of paragraph (a)(2)(v)
``and''; adding at the end of paragraph (a)(2)(vi) ``and''; and adding
a new paragraph (a)(2)(vii) to read as follows:
25.400 Scope of subpart.
(a) * * *
(2) * * *
(vii) United States-Bahrain Free Trade Agreement, as approved by
Congress in the United States-Bahrain Free Trade Agreement
Implementation Act (Pub. L. 109-169);
* * * * *
0
4. Amend section 25.401(b) by revising the third column of the table
heading to read as follows:
25.401 Exceptions.
* * * * *
(b) * * *
* * * * * * Bahrain FTA, CAFTA-DR, Chile * * *
FTA, and NAFTA
* * * * *
25.402 [Amended]
0
5. Amend section 25.402(b), in the table, by adding after ``Australia
FTA'' the entry ``Bahrain FTA'' and in its corresponding line items
``$193,000'', ``$193,000'', and ``$8,422,165'', respectively; and
adding ``Guatemala,'' after ``El Salvador,''.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
52.212-3 [Amended]
0
6. Amend section 52.212-3 by--
0
a. Revising the date of the clause to read ``(NOV 2006)'';
0
b. Adding in the second sentence of paragraph (g)(1)(i), ``Bahrainian
end product,'' after ``The terms''; and
0
c. Removing from paragraph (g)(1)(ii), ``(other than Moroccan end
products)'' and adding ``(other than Bahrainian or Moroccan end
products)'' in its place, and removing from the table heading ``(Other
than Moroccan End Products)'' and adding ``(Other than Bahrainian or
Moroccan End Products)'' in its place.
0
7. Amend section 52.212-5 by--
0
a. Revising the date of the clause;
0
b. Revising paragraph (b)(24)(i); and
0
c. Removing from paragraph (b)(25) ``(JUN 2006)'' and adding ``(NOV
2006)'' in its place.
The revised text reads as follows:
52.212-5 Contract Terms and Conditions Required to Implement Statutes
or Executive Orders--Commercial Items.
* * * * *
CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR
EXECUTIVE ORDERS--COMMERCIAL ITEMS (NOV 2006)
* * * * *
(b) * * *
(24)(i) 52.225-3, Buy American Act--Free Trade Agreements--Israeli
Trade Act (NOV 2006) (41 U.S.C. 10a-10d, 19 U.S.C. 3301 note, 19 U.S.C.
2112 note, Pub. L 108-77, 108-78, 108-286, 109-53 and 109-169).
* * * * *
0
8. Amend section 52.225-3 by--
0
a. Revising the date of the clause;
0
b. Adding in paragraph (a), in alphabetical order, the definition
``Bahrainian end product'';
0
c. Adding in the definition ``Free Trade Agreement country''
``Bahrain,'' after ``Australia,'' and ``Guatemala,'' after ``El
Salvador,''; and
0
d. Removing from the first sentence of paragraph (c) ``(except the
Morocco FTA)'' and adding ``(except the Bahrain and Morocco FTA)'' in
its place; removing from the fourth sentence ``(other than a Moroccan
end product)'' each time it appears (twice); and adding ``(other than a
Bahrainian or Moroccan end product)'' in its place.
The revised text reads as follows:
52.225-3 Buy American Act--Free Trade Agreements--Israeli Trade Act.
* * * * *
BUY AMERICAN ACT--FREE TRADE AGREEMENTS--ISRAELI TRADE ACT (NOV
2006)
(a) Definitions. * * *
Bahrainian end product means an article that--
(1) Is wholly the growth, product, or manufacture of Bahrain; or
(2) In the case of an article that consists in whole or in part of
materials from another country, has been substantially transformed in
Bahrain 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 the article, provided that the value of those
incidental services does not exceed that of the article itself.
* * * * *
52.225-4 [Amended]
0
9. Amend section 52.225-4 by--
0
a. Revising the date of the clause to read ``(NOV 2006)'';
0
b. Adding to the second sentence in paragraph (a) ``Bahrainian end
product,'' after ``The terms''; and
0
c. Removing from paragraph (b), ``(other than Moroccan end products)''
[[Page 67778]]
and adding ``(other than Bahrainian or Moroccan end products)'' in its
place, and removing from the table heading ``(Other than Moroccan End
Products)'' and adding ``(Other than Bahrainian or Moroccan End
Products)'' in its place.
0
10. Amend section 52.225-5 by--
0
a. Revising the date of the clause;
0
b. Revising paragraph (2) of the definition ``Designated country''; and
0
c. Removing from paragraph (4) of the definition ``Designated
country'', ``Guatemala,''.
The revised text reads as follows:
52.225-5 Trade Agreements.
* * * * *
TRADE AGREEMENTS (NOV 2006)
* * * * *
(a) * * *
Designated country * * *
(2) A Free Trade Agreement country (Australia, Bahrain, Canada,
Chile, El Salvador, Guatemala, Honduras, Mexico, Morocco, Nicaragua, or
Singapore);
* * * * *
0
11. Amend section 52.225-11 by--
0
a. Revising the date of the clause;
0
b. Revising paragraph (2) of the definition ``Designated country'';
0
c. Removing ``Guatemala'' from paragraph (4) of the definition
``Designated country''; and
0
d. Revising Alternate I.
The revised text reads as follows:
52.225-11 Buy American Act--Construction Materials under Trade
Agreements.
* * * * *
BUY AMERICAN ACT--CONSTRUCTION MATERIALS UNDER TRADE AGREEMENTS
(NOV 2006)
* * * * *
(a) * * *
Designated country * * *
(2) A Free Trade Agreement country (Australia, Bahrain, Canada,
Chile, El Salvador, Guatemala, Honduras, Mexico, Morocco, Nicaragua, or
Singapore);
* * * * *
Alternate I (NOV 2006). As prescribed in 25.1102(c)(3), add the
following definitions of ``Bahrainian construction material'' and
``Mexican construction material'' to paragraph (a) of the basic
clause, and substitute the following paragraphs (b)(1) and (b)(2)
for paragraphs (b)(1) and (b)(2) of the basic clause:
Bahrainian construction material means a construction material
that--
(1) Is wholly the growth, product, or manufacture of Bahrain; 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 Bahrain into a new and different construction material
distinct from the materials from which it was transformed.
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) Construction materials. (1) This clause implements the Buy
American Act (41 U.S.C. 10a - 10d) by providing a preference for
domestic construction material. In addition, the Contracting Officer
has determined that the WTO GPA and all the Free Trade Agreements
except NAFTA apply to this acquisition. Therefore, the Buy American Act
restrictions are waived for designated country construction materials
other than Bahrainian or Mexican construction materials.
(2) The Contractor shall use only domestic or designated country
construction material other than Bahrainian or Mexican construction
material in performing this contract, except as provided in paragraphs
(b)(3) and (b)(4) of this clause.
0
12. Amend section 52.225-12 in Alternate II, by revising the date of
the alternate, the introductory text, paragraph (d)(1), and the first
sentence of the introductory text of paragraph (d)(3) to read as
follows:
52.225-12 Notice of Buy American Act Requirement--Construction
Materials Under Trade Agreements.
* * * * *
Alternate II (NOV 2006). As prescribed in 25.1102(d)(3), add the
definitions of ``Bahrainian construction material'' and ``Mexican
construction material'' to paragraph (a) and substitute the
following paragraph (d) for paragraph (d) of the basic provision:
(d) Alternate offers. (1) When an offer includes foreign
construction material, except foreign construction material from a
designated country other than Bahrain or Mexico, that is not listed by
the Government in this solicitation in paragraph (b)(3) of FAR clause
52.225-11, the offeror also may submit an alternate offer based on use
of equivalent domestic or designated country construction material
other than Bahrainian or Mexican construction material.
* * * * *
(3) If the Government determines that a particular exception
requested in accordance with paragraph (c) of FAR clause 52.225-11 does
not apply, the Government will evaluate only those offers based on use
of the equivalent domestic or designated country construction material
other than Bahrainian or Mexican construction material. * * *
* * * * *
[FR Doc. 06-9306 Filed 11-21-06; 8:45 am]
BILLING CODE 6820-EP-S
