Defense Federal Acquisition Regulation Supplement; Trade Agreements Thresholds (DFARS Case 2009-D040), 32637-32638 [2010-13523]
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32637
Federal Register / Vol. 75, No. 109 / Tuesday, June 8, 2010 / Rules and Regulations
Procurement Agreement and the Free
Trade Agreements, as determined by the
United States Trade Representative.
DATES: Effective Date: June 8, 2010.
Comment Date: Comments on the
interim rule should be submitted in
writing to the address shown below on
or before August 9, 2010 to be
considered in the formulation of the
final rule.
ADDRESSSES: You may submit
comments, identified by DFARS Case
2009–D040, 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 2009–D040 in the subject
line of the message.
• Fax: 703–602–0350.
• Mail: Defense Acquisition
Regulations System, Attn: Ms. Amy
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Part 225
RIN 0750–AG59
Defense Federal Acquisition
Regulation Supplement; Trade
Agreements Thresholds (DFARS Case
2009–D040)
Defense Acquisition
Regulations System; Department of
Defense (DoD).
ACTION: Interim rule with request for
comments.
AGENCY:
SUMMARY: DoD is issuing an interim rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to incorporate increased
thresholds for application of the World
Trade Organization Government
Williams, OUSD (AT&L) DPAP (DARS),
3060 Defense Pentagon, Room 3B855,
Washington, DC 20301–3060.
Comments received generally will be
posted without change to https://
www.regulations.gov, including any
personal information provided.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
A. Background
This interim rule amends the clause
prescriptions at DFARS 225.1101 and
225.7503 to reflect increased 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 (74 FR 68907,
December 29, 2009):
Supply
contract
(equal to or
exceeding)
Trade Agreement
WTO GPA ................................................................................................................................................................
FTAs:
Australia FTA ....................................................................................................................................................
Bahrain FTA .....................................................................................................................................................
CAFTA–DR (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua) ...........
Chile FTA ..........................................................................................................................................................
Morocco FTA ....................................................................................................................................................
NAFTA:
—Canada ..........................................................................................................................................................
—Mexico ...........................................................................................................................................................
Peru FTA ..........................................................................................................................................................
Singapore FTA .................................................................................................................................................
emcdonald on DSK2BSOYB1PROD with RULES2
This rule was subject to Office of
Management and Budget review under
Executive Order 12866, Regulatory
Planning and Review, dated September
30, 1993.
B. Regulatory Flexibility Act
DoD does not expect this interim 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 dollar 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
business concerns and other interested
parties on the expected impact of this
rule on small entities.
DoD will also consider comments
from small entities concerning the
existing regulations in subparts affected
by this rule in accordance with 5 U.S.C.
610. Interested parties must submit such
VerDate Mar<15>2010
17:31 Jun 07, 2010
Jkt 220001
comments separately and should cite 5
U.S.C. 610 (DFARS Case 2009–D040) in
correspondence.
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. However, there is
no impact on the estimated burden
hours. 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
PO 00000
Frm 00001
Fmt 4701
Sfmt 4700
Ms.
Amy Williams, 703–602–0328.
Construction
contract
(equal to or
exceeding)
$203,000
$7,804,000
70,079
203,000
70,079
70,079
203,000
7,804,000
9,110,318
7,804,000
7,804,000
7,804,000
25,000
70,079
203,000
70,079
9,110,318
9,110,318
7,804,000
7,804,000
thresholds for application of the World
Trade Organization Government
Procurement Agreement and the Free
Trade Agreements, as determined by the
United States Trade Representative.
This action is necessary because the
increased thresholds were effective
January 1, 2010. 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.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR part 225 is
amended as follows:
■
PART 225—FOREIGN CONTRACTING
1. The authority citation for 48 CFR
part 225 continues to read as follows:
■
E:\FR\FM\08JNR2.SGM
08JNR2
32638
Federal Register / Vol. 75, No. 109 / Tuesday, June 8, 2010 / Rules and Regulations
Authority: 41 U.S.C. 421 and 48 CFR
chapter 1.
225.1101
[Amended]
2. Section 225.1101 is amended in
paragraph (11)(i) introductory text by
removing ‘‘$194,000’’ and adding in its
place ‘‘$203,000’’; and in paragraphs
(11)(i)(A) and (11)(i)(B) by removing
‘‘$67,826’’ and adding in its place
‘‘$70,079’’.
■
225.7503
[Amended]
3. Section 225.7503 is amended in
paragraph (a) by removing ‘‘$7,443,000’’
and adding in its place ‘‘$7,804,000’’;
and in paragraph (b) by removing
‘‘$7,443,000’’ and adding in its place
‘‘$7,804,000’’, and by removing
‘‘$8,817,449’’ and adding in its place
‘‘$9,110,318’’.
■
[FR Doc. 2010–13523 Filed 6–7–10; 8:45 am]
BILLING CODE 5001–08–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 217 and 234
Defense Federal Acquisition
Regulation Supplement; Contract
Authority for Advanced Component
Development or Prototype Units
(DFARS Case 2009–D034)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Interim rule with request for
comments.
emcdonald on DSK2BSOYB1PROD with RULES2
AGENCY:
SUMMARY: DoD is issuing an interim rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to implement section 819 of
the National Defense Authorization Act
for Fiscal Year 2010. Section 819 places
limitations on certain types of line items
and contract options that may be
included in contracts initially awarded
pursuant to competitive solicitations.
When the prohibition applies, it limits
the dollar value, period of performance,
and time for exercise of such contract
line items or contract options.
DATES: Effective Date: June 8, 2010.
Comment Date: Comments on the
interim rule should be submitted in
writing to the address shown below on
or before August 9, 2010, to be
considered in the formation of the final
rule.
ADDRESSES: Submit comments
identified by DFARS Case 2009–D034,
using any of the following methods:
VerDate Mar<15>2010
17:31 Jun 07, 2010
Jkt 220001
Æ Federal eRulemaking Portal: http:
//www.regulations.gov. Follow the
instructions for submitting comments.
Æ E-mail: dfars@osd.mil. Include
DFARS Case 2009–D034 in the subject
line of the message.
Æ Fax: 703–602–0350.
Æ Mail: Defense Acquisition
Regulations System, Attn: Ms. Meredith
Murphy, OUSD(AT&L)DPAP(DARS),
Room 3B855, 3060 Defense Pentagon,
Washington, DC 20301–3060.
Comments received generally will be
posted without change to https://
www.regulations.gov, including any
personal information provided.
FOR FURTHER INFORMATION CONTACT: Ms.
Meredith Murphy, 703–602–1302.
SUPPLEMENTARY INFORMATION:
A. Background
This DFARS case implements section
819 of the National Defense
Authorization Act for Fiscal Year 2010
(Pub. L. 111–84, enacted October 28,
2009). Section 819 is entitled ‘‘Contract
Authority for Advanced Component
Development or Prototype Units.’’
Section 819 is intended to prevent a
contract for new technology that is
initially awarded as a result of
competition from becoming a
noncompetitive effort for the
development of advanced components
or the procurement of prototype units.
To do so, section 819 places limitations
on the (a) Dollar value, (b) period of
performance, and (c) time for exercise of
contract line items or contract options
for advanced component development
or procurement of prototype items.
Specifically, the contract line item or
contract option must be limited to the
minimal amount of initial or additional
prototype items that will allow for
timely competitive solicitation and
award of a follow-on development or
production contract for those items. The
term of the contract line item or contract
option cannot be for a period longer
than 12 months, and the dollar value of
the work to be performed pursuant to
the contract line item or contract option
may not exceed the lesser of the amount
that is three times the dollar value of the
work previously performed under the
contract or $20 million.
Because the coverage is most likely to
apply to major systems acquisitions, it
has been added as a new DFARS
subsection 234.005–1, entitled
‘‘Competition.’’ However, because the
language applies to the exercise and
content of certain contract options, a
reference to 234.005–1 has been added
to DFARS 217.202, entitled ‘‘Use of
Options.’’
This is not a significant regulatory
action and, therefore, is not subject to
PO 00000
Frm 00002
Fmt 4701
Sfmt 4700
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
DoD does not expect that this interim
rule will 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 rule does not impose
any additional requirements on small
businesses. Therefore, an Initial
Regulatory Flexibility Analysis has not
been performed. DoD invites comments
from small business concerns and other
interested parties on the expected
impact of this rule on small entities.
DoD will also consider comments
from small entities concerning the
existing regulations in subparts affected
by this rule in accordance with 5 U.S.C.
610. Interested parties must submit such
comments separately and should cite 5
U.S.C. 610 (DFARS Case 2009–D034) in
correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does
not apply because the interim rule does
not contain any information collection
requirements that require the approval
of the Office of Management and Budget
under 44 U.S.C., et seq.
D. Determination To Issue an Interim
Rule
A determination has been made under
the authority of the Secretary of Defense
(DoD) that urgent and compelling
circumstances exist to promulgate this
interim rule without prior opportunity
for public comments. This action is
necessary because section 819 of the
National Defense Authorization Act for
Fiscal Year 2010 became effective upon
enactment on October 28, 2009. Section
819 places limitations on certain types
of line items and contract options that
may be included in contracts initially
awarded pursuant to competitive
solicitations. In order to prevent a
contract for new technology that is
initially awarded as a result of
competition from becoming a
noncompetitive effort for the
development of advanced components
or procurement of prototype units, it is
necessary to publish this rule as an
interim rule prior to affording the public
an opportunity to comment. However,
pursuant to 41 U.S.C. 418b and FAR
1.501–3, DoD will consider public
comments received in response to this
interim rule in the formation of the final
rule.
E:\FR\FM\08JNR2.SGM
08JNR2
]]>Agencies
[Federal Register Volume 75, Number 109 (Tuesday, June 8, 2010)]
[Rules and Regulations]
[Pages 32637-32638]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-13523]
Federal Register / Vol. 75, No. 109 / Tuesday, June 8, 2010 / Rules
and Regulations
[[Page 32637]]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 225
RIN 0750-AG59
Defense Federal Acquisition Regulation Supplement; Trade
Agreements Thresholds (DFARS Case 2009-D040)
AGENCY: Defense Acquisition Regulations System; Department of Defense
(DoD).
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: DoD is issuing an interim rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to incorporate increased
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: June 8, 2010.
Comment Date: Comments on the interim rule should be submitted in
writing to the address shown below on or before August 9, 2010 to be
considered in the formulation of the final rule.
ADDRESSSES: You may submit comments, identified by DFARS Case 2009-
D040, 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 2009-D040 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), 3060 Defense Pentagon, Room
3B855, Washington, DC 20301-3060.
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:
A. Background
This interim rule amends the clause prescriptions at DFARS 225.1101
and 225.7503 to reflect increased 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 (74 FR 68907, December 29, 2009):
------------------------------------------------------------------------
Supply Construction
contract contract
Trade Agreement (equal to or (equal to or
exceeding) exceeding)
------------------------------------------------------------------------
WTO GPA................................. $203,000 $7,804,000
FTAs:
Australia FTA....................... 70,079 7,804,000
Bahrain FTA......................... 203,000 9,110,318
CAFTA-DR (Costa Rica, Dominican 70,079 7,804,000
Republic, El Salvador, Guatemala,
Honduras, and Nicaragua)...........
Chile FTA........................... 70,079 7,804,000
Morocco FTA......................... 203,000 7,804,000
NAFTA:
--Canada............................ 25,000 9,110,318
--Mexico............................ 70,079 9,110,318
Peru FTA............................ 203,000 7,804,000
Singapore FTA....................... 70,079 7,804,000
------------------------------------------------------------------------
This rule was subject to Office of Management and Budget review
under Executive Order 12866, Regulatory Planning and Review, dated
September 30, 1993.
B. Regulatory Flexibility Act
DoD does not expect this interim 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 dollar 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 business concerns and other interested parties on
the expected impact of this rule on small entities.
DoD will also consider comments from small entities concerning the
existing regulations in subparts affected by this rule in accordance
with 5 U.S.C. 610. Interested parties must submit such comments
separately and should cite 5 U.S.C. 610 (DFARS Case 2009-D040) in
correspondence.
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. However, there is no impact on the estimated
burden hours. 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. This action is necessary because the
increased thresholds were effective January 1, 2010. 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.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.
0
Therefore, 48 CFR part 225 is amended as follows:
PART 225--FOREIGN CONTRACTING
0
1. The authority citation for 48 CFR part 225 continues to read as
follows:
[[Page 32638]]
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
225.1101 [Amended]
0
2. Section 225.1101 is amended in paragraph (11)(i) introductory text
by removing ``$194,000'' and adding in its place ``$203,000''; and in
paragraphs (11)(i)(A) and (11)(i)(B) by removing ``$67,826'' and adding
in its place ``$70,079''.
225.7503 [Amended]
0
3. Section 225.7503 is amended in paragraph (a) by removing
``$7,443,000'' and adding in its place ``$7,804,000''; and in paragraph
(b) by removing ``$7,443,000'' and adding in its place ``$7,804,000'',
and by removing ``$8,817,449'' and adding in its place ``$9,110,318''.
[FR Doc. 2010-13523 Filed 6-7-10; 8:45 am]
BILLING CODE 5001-08-P
