Defense Federal Acquisition Regulation Supplement; Trade Agreements-New Thresholds (DFARS Case 2007-D023), 4115-4116 [E8-1103]

Agencies

• Defense Acquisition Regulations System
• DEPARTMENT OF DEFENSE

[Federal Register Volume 73, Number 16 (Thursday, January 24, 2008)]
[Rules and Regulations]
[Pages 4115-4116]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-1103]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 225

RIN 0750-AF89


Defense Federal Acquisition Regulation Supplement; Trade 
Agreements--New Thresholds (DFARS Case 2007-D023)

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

ACTION: Interim rule with request for comments.

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SUMMARY: DoD has issued an interim rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to incorporate increased 
dollar 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 date: January 24, 2008.
    Comment date: Comments on the interim rule should be submitted in 
writing to the address shown below on or before March 24, 2008, to be 
considered in the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2007-D023, 
using any of the following methods:
    [cir] Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
    [cir] E-mail: dfars@osd.mil. Include DFARS Case 2007-D023 in the 
subject line of the message.
    [cir] Fax: 703-602-7887.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. Amy 
Williams, OUSD(AT&L)DPAP(DARS), IMD 3D139, 3062 Defense Pentagon, 
Washington, DC 20301-3062.
    [cir] 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.

[[Page 4116]]


FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, 703-602-0328.

SUPPLEMENTARY INFORMATION: 

A. Background

    This interim rule amends the clause prescriptions at DFARS 225.1101 
and 225.7503 to reflect increased dollar thresholds for application of 
the trade agreements. Every two years, the trade agreements thresholds 
are escalated according to a pre-determined formula set forth in the 
agreements. The United States Trade Representative has specified the 
following new thresholds, as published at 72 FR 71166 on December 14, 
2007, and corrected at 72 FR 73904 on December 28, 2007:

------------------------------------------------------------------------
                                              Supply       Construction
                                             contract        contract
             Trade agreement               (equal to or    (equal to or
                                            exceeding)      exceeding)
------------------------------------------------------------------------
World Trade Organization Government             $194,000      $7,443,000
 Procurement Agreement..................
Free Trade Agreements:
    Australia Free Trade Agreement......          67,826       7,443,000
    Bahrain Free Trade Agreement........         194,000       8,817,449
    Dominican Republic-Central America-           67,826       7,443,000
     United States Free Trade Agreement
     (El Salvador, Dominican Republic,
     Guatemala, Honduras, and Nicaragua)
    Chile Free Trade Agreement..........          67,826       7,443,000
    Morocco Free Trade Agreement........         194,000       7,443,000
    North American Free Trade Agreement:
        Canada..........................         $25,000       8,817,449
        Mexico..........................          67,826       8,817,449
    Singapore Free Trade Agreement......          67,826       7,443,000
------------------------------------------------------------------------

    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., because the trade 
agreement threshold changes are designed to keep pace with inflation 
and thus maintain the status quo. 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 2007-D023.

C. Paperwork Reduction Act

    This 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. The dollar threshold 
changes are in line with inflation and maintain the status quo.

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 incorporates increased dollar thresholds for 
application of the World Trade Organization Government Procurement 
Agreement and the Free Trade Agreements, as determined by the United 
States Trade Representative. The increased thresholds became effective 
on January 1, 2008. 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 225

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.


0
Therefore, 48 CFR part 225 is amended as follows:

PART 225--FOREIGN ACQUISITION

0
1. The authority citation for 48 CFR part 225 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.


225.1101  [Amended]

0
2. Section 225.1101 is amended as follows:
0
a. In paragraph (10)(i) introductory text by removing ``$193,000'' and 
adding in its place ``$194,000''; and
0
b. In paragraphs (10)(i)(A) and (B) by removing ``$64,786'' and adding 
in its place ``$67,826''.

0
3. Section 225.7503 is amended as follows:
0
a. In paragraph (a) by removing ``$7,407,000'' and adding in its place 
``$7,443,000''; and
0
b. By revising paragraph (b) to read as follows:


225.7503  Contract clauses.

* * * * *
    (b) Use the clause at 252.225-7045, Balance of Payments Program--
Construction Material Under Trade Agreements, in solicitations and 
contracts for construction to be performed outside the United States 
with a value of $7,443,000 or more. For acquisitions with a value of 
$7,443,000 or more, but less than $8,817,449, use the clause with its 
Alternate I.
 [FR Doc. E8-1103 Filed 1-23-08; 8:45 am]
BILLING CODE 5001-08-P