Federal Acquisition Regulation; United States-Korea Free Trade Agreement, 13952-13956 [2012-5528]
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Federal Register / Vol. 77, No. 45 / Wednesday, March 7, 2012 / Rules and Regulations
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Chapter 1
[Docket FAR 2012–0080, Sequence 2]
Federal Acquisition Regulation;
Federal Acquisition Circular 2005–57;
Introduction
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Summary presentation of an
interim rule.
AGENCIES:
This document summarizes
the Federal Acquisition Regulation
(FAR) rule agreed to by the Civilian
Agency Acquisition Council and the
Defense Acquisition Regulations
Council (Councils) in this Federal
Acquisition Circular (FAC) 2005–57. A
companion document, the Small Entity
Compliance Guide (SECG), follows this
FAC. The FAC, including the SECG, is
available via the Internet at https://
www.regulations.gov.
DATES: For effective date and comment
date see separate document, which
follows.
FOR FURTHER INFORMATION CONTACT: The
analyst whose name appears in the table
below in relation to the FAR case.
Please cite FAC 2005–57 and the
specific FAR case number. For
information pertaining to status or
publication schedule, contact the
Regulatory Secretariat at 202–501–4755.
SUMMARY:
LIST OF RULE IN FAC 2005–57
Subject
FAR case
United States-Korea
Free Trade Agreement (Interim) ........
2012–004
Analyst
Erwin
A
Summary for the FAR rule follows. For
the actual revisions and/or amendments
made by this FAR case, refer to FAR
Case 2012–004.
FAC 2005–57 amends the FAR as
specified below:
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United States-Korea Free Trade
Agreement (FAR Case 2012–004)
(Interim)
This interim rule implements the
United States-Korea Free Trade
Agreement (see the United States-Korea
Free Trade Agreement Implementation
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Dated: March 1, 2012.
Laura Auletta,
Director, Office of Governmentwide
Acquisition Policy, Office of Acquisition
Policy, Office of Governmentwide Policy.
Federal Acquisition Circular (FAC) 2005–
57 is issued under the authority of the
Secretary of Defense, the Administrator of
General Services, and the Administrator for
the National Aeronautics and Space
Administration.
Unless otherwise specified, all Federal
Acquisition Regulation (FAR) and other
directive material contained in FAC 2005–57
is effective March 15, 2012.
Dated: March 1, 2012.
Richard Ginman,
Director, Defense Procurement and
Acquisition Policy.
Dated: March 1, 2012.
Mindy S. Connolly,
Chief Acquisition Officer, U.S. General
Services Administration.
Dated: March 1, 2012.
William P. McNally,
Assistant Administrator for Procurement,
National Aeronautics and Space
Administration.
[FR Doc. 2012–5525 Filed 3–6–12; 8:45 am]
BILLING CODE 6820–EP–P
DEPARTMENT OF DEFENSE
SUPPLEMENTARY INFORMATION:
VerDate Mar<15>2010
Act (Pub. L. 112–41) (19 U.S.C. 3805
note)).
The Republic of Korea is already party
to the World Trade Organization
Government Procurement Agreement
(WTO GPA). This Free Trade Agreement
now covers acquisition of supplies and
services between $100,000 and the
current WTO GPA threshold of
$202,000. This interim rule is not
expected to have a significant economic
impact on a substantial number of small
entities.
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 4, 25, and 52
[FAC 2005–57; FAR Case 2012–004; Docket
2012–0004, Sequence 1]
RIN 9000–AM18
I. Background
Federal Acquisition Regulation; United
States-Korea Free Trade Agreement
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Interim rule.
AGENCY:
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DoD, GSA, and NASA are
issuing an interim rule amending the
Federal Acquisition Regulation (FAR) to
implement the United States-Korea Free
Trade Agreement. The Republic of
Korea is already party to the World
Trade Organization Government
Procurement Agreement, but this trade
agreement implements a lower
procurement threshold.
DATES: Effective Date: March 15, 2012.
Comment Date: Interested parties
should submit written comments to the
Regulatory Secretariat on or before May
7, 2012 to be considered in the
formulation of a final rule.
ADDRESSES: Submit comments
identified by FAC 2005–57, FAR Case
2012–004, by any of the following
methods:
• Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
inputting ‘‘FAR Case 2012–004’’ under
the heading ‘‘Enter Keyword or ID’’ and
selecting ‘‘Search.’’ Select the link
‘‘Submit a Comment’’ that corresponds
with ‘‘FAR Case 2012–004.’’ Follow the
instructions provided at the ‘‘Submit a
Comment’’ screen. Please include your
name, company name (if any), and
‘‘FAR Case 2012–004’’ on your attached
document.
• Fax: 202–501–4067.
• Mail: General Services
Administration, Regulatory Secretariat
(MVCB), ATTN: Hada Flowers, 1275
First Street NE., 7th Floor, Washington,
DC 20417.
Instructions: Please submit comments
only and cite FAC 2005–57, FAR Case
2012–004, 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: Ms.
Deborah Erwin, Attorney-Advisor in the
Office of Governmentwide Policy, at
202–501–2164 for clarification of
content. For information pertaining to
status or publication schedules, contact
the Regulatory Secretariat at 202–501–
4755. Please cite FAC 2005–57, FAR
Case 2012–004.
SUPPLEMENTARY INFORMATION:
SUMMARY:
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This interim rule amends FAR part 25
and the corresponding provisions and
clauses in part 52 to implement the
United States-Korea Free Trade
Agreement (see the United States-Korea
Free Trade Agreement Implementation
Act (Pub. L. 112–41) (19 U.S.C. 3805
note)).
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The Republic of Korea is already party
to the World Trade Organization
Government Procurement Agreement
(WTO GPA). This Free Trade Agreement
(FTA) now covers acquisition of
supplies and services between $100,000
and the current WTO GPA threshold of
$202,000, lowering the threshold for—
• Waiver of the applicability of the
Buy American statute (41 U.S.C. chapter
83) for some foreign supplies and
construction materials from the
Republic of Korea; and
• Applicability of specified
procurement procedures designed to
ensure fairness in the acquisition of
supplies and services (see FAR 25.408).
These obligations include, among
others, that an agency shall not impose
the condition that, in order for an
offeror to be allowed to submit an offer
or be awarded a contract, the offeror has
been previously awarded one or more
contracts by an agency of the United
States Government or that the offeror
has prior work experience in the United
States (see FAR 15.305(a)(2)(iv)).
II. Discussion and Analysis
This interim rule adds the Republic of
Korea to the definition of ‘‘Free Trade
Agreement country’’ in multiple
locations in the FAR. The Republic of
Korea was already listed as a designated
country because it is party to the WTO
GPA. The excluded services for Korea
FTA are the same as for the WTO GPA.
By implementation of this Korea FTA,
eligible goods and services from Korea
are now covered when valued at or
above $100,000, rather than at or above
the WTO GPA threshold of $202,000.
The threshold for the Korea FTA for
construction is the same as the
threshold for the WTO GPA for
construction.
The Korea FTA $100,000 threshold
for supplies and services is higher than
the threshold for supplies and services
for most of the FTAs ($77,494), but not
as high as the Bahrain, Morocco, Oman,
and Peru FTA threshold for supplies
and services ($202,000). Therefore, new
alternates are required for the Buy
American Act—Free Trade
Agreements—Israeli Trade Act
provision and clause (FAR 52.225–3 and
52.225–4) to cover acquisitions that are
valued at $77,494 or more but less than
$100,000. In that dollar range, all FTAs
are applicable except for the Bahrain,
Korea, Morocco, Oman, and Peru FTAs.
Because the Korea FTA construction
threshold of $7,777,000 is the same as
the WTO GPA threshold, no new clause
alternates are required for the Buy
American Act—Construction Materials
under Trade Agreements provision and
clause (FAR 52.225–11 and 52.225–12)
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or the Recovery Act clauses at FAR
52.225–23 and 52.225–24.
Some minor editorial type corrections
are also included in this rule to—
• Include the public law number and
19 U.S.C. reference for all Free Trade
Agreements;
• Correct references to 41 U.S.C.
chapter 83 and 41 U.S.C. 1907 (based on
the recent positive law codification of
title 41);
• Delete an unnecessary definition of
‘‘Canadian end product’’ in FAR 25.003
(term is only used in the provisions and
clauses, and is defined at FAR 52.225–
3 Buy American Act—Free Trade
Agreements—Israeli Trade Act); and
• Provide consistency in paragraph
(c) of FAR 52.225–3 between basic
clause and alternates, except to the
extent that a change is required due to
the applicability of trade agreements.
This consists of adding to Alternates I
and II the statement that the Buy
American Act provides a preference for
domestic goods, and that the component
test of the Buy American Act has been
waived for end products that are
commercially available off-the-shelf
items, in accordance with 41 U.S.C.
1907.
III. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and
13563 direct agencies to assess all costs
and benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). E.O. 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This is a significant
regulatory action and, therefore, was
subject to review under section 6(b) of
E.O. 12866, Regulatory Planning and
Review, dated September 30, 1993. This
rule is not a major rule under 5 U.S.C.
804.
IV. Regulatory Flexibility Act
DoD, GSA, and NASA do 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. Korea is already a designated
country under the WTO GPA. Although
the rule now opens up Government
procurement to the goods and services
of Korea at or above the threshold of
$100,000, DoD, GSA, and NASA do not
anticipate any significant economic
impact on U.S. small businesses. The
Department of Defense only applies the
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trade agreements to the non-defense
items listed at Defense Federal
Acquisition Regulation Supplement
225.401–70, and acquisitions that are set
aside or provide other form of
preference for small businesses are
exempt. FAR 19.502–2 states that
acquisitions of supplies or services with
an anticipated dollar value between
$3,000 and $150,000 (with some
exceptions) are automatically reserved
for small business concerns. Therefore,
DoD, GSA, and NASA have not
performed an Initial Regulatory
Flexibility Analysis.
DoD, GSA, and NASA invite
comments from small business concerns
and other interested parties on the
expected impact of this rule on small
entities.
DoD, GSA, and NASA will also
consider comments from small entities
concerning the existing regulations in
subparts affected by the rule in
accordance with 5 U.S.C. 610. Interested
parties must submit such comments
separately and should cite 5 U.S.C 610
(FAR Case 2012–004), in
correspondence.
V. Paperwork Reduction Act
This 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, in accordance with
the Paperwork Reduction Act (44 U.S.C.
chapter 35). The impact, however, is
negligible, because it is just a question
of which category offered goods from
the Republic of Korea would be listed
under.
VI. 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 Free
Trade Agreement with the Republic of
Korea takes effect on March 15, 2012.
This is a reciprocal agreement, approved
by Congress and the President of the
United States. It is important for the
United States Government to honor its
new trade obligations to the Republic of
Korea, as the Republic of Korea in turn
honors its new trade obligations to the
United States. However, pursuant to 41
U.S.C. 1707 and FAR 1.501–3(b), DoD,
GSA, and NASA will consider public
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comments received in response to this
interim rule in the formation of the final
rule.
List of Subjects in 48 CFR Parts 4, 25,
and 52
Dated: March 1, 2012.
Laura Auletta,
Director, Office of Governmentwide
Acquisition Policy, Office of Acquisition
Policy, Office of Governmentwide Policy.
25.003
1. The authority citation for 48 CFR
parts 4, 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 4—ADMINISTRATIVE MATTERS
2. Amend section 4.1202 by revising
paragraph (v) to read as follows:
■
4.1202 Solicitation provision and contract
clause.
*
*
*
7. Amend section 25.1101 by adding
paragraphs (b)(1)(iv) and (b)(2)(iv) to
read as follows:
■
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5. Amend section 25.401 in the table
that follows paragraph (b) by removing
from the table heading ‘‘WTO GPA’’ and
adding ‘‘WTO GPA AND KOREA FTA’’
in its place; and by removing from
paragraph (6) ‘‘–V503’’.
6. Amend section 25.402 by revising
the table that follows paragraph (b) to
read as follows:
■
25.402
*
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*
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*
Service contract
(equal to or
exceeding)
Construction
contract (equal to
or exceeding)
$7,777,000
77,494
202,000
77,494
202,000
7,777,000
10,074,262
77,494
77,494
100,000
202,000
..............................
25,000
77,494
202,000
202,000
77,494
50,000
77,494
77,494
100,000
202,000
..............................
77,494
77,494
202,000
202,000
77,494
..............................
7,777,000
7,777,000
7,777,000
7,777,000
..............................
10,074,262
10,074,262
10,074,262
7,777,000
7,777,000
..............................
52.204–8 Annual Representations and
Certifications.
*
*
$202,000
8. Amend section 52.204–8 by
revising the date of the provision and
the introductory text of paragraph
(c)(1)(xvii); and adding paragraph
(c)(1)(xvii)(D).
The revised and added text reads as
follows:
*
General.
*
*
(b) * * *
$202,000
■
*
*
*
*
(b)(1) * * *
(iv) If the acquisition value is $77,494
or more but is less than $100,000, use
the clause with its Alternate III.
(2) * * *
(iv) If the acquisition value is $77,494
or more, but is less than $100,000, use
the provision with its Alternate III.
*
*
*
*
*
[Amended]
■
PART 52—SOLICITATION PROVISIONS
AND CONTRACT CLAUSES
Acquisition of supplies.
*
25.401
Supply contract
(equal to or
exceeding)
WTO GPA ..................................................................................................................
FTAs:
Australia FTA ......................................................................................................
Bahrain FTA .......................................................................................................
CAFTA–DR (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua) ....................................................................................
Chile FTA ............................................................................................................
Korea FTA ..........................................................................................................
Morocco FTA ......................................................................................................
NAFTA:
—Canada ....................................................................................................
—Mexico ......................................................................................................
Oman FTA ..........................................................................................................
Peru FTA ............................................................................................................
Singapore FTA ...................................................................................................
Israeli Trade Act .................................................................................................
Scope of subpart.
(a) * * *
(2) * * *
(x) Korea FTA (the United StatesKorea Free Trade Agreement
Implementation Act (Pub. L. 112–41)
(19 U.S.C. 3805 note));
*
*
*
*
*
3. Amend section 25.003 by—
a. Removing the definition ‘‘Canadian
end product’’;
■ b. In paragraph (2) of the definition
‘‘Designated country’’ removing
‘‘Honduras, Mexico’’ and adding
‘‘Honduras, Korea (Republic of),
Mexico’’ in its place; and
■ c. In the definition ‘‘Free Trade
Agreement country’’ removing
‘‘Honduras, Mexico’’ and adding
‘‘Honduras, Korea (Republic of),
Mexico’’ in its place.
■ 4. Amend section 25.400 by—
■ a. Removing from paragraph (a)(2)(i)
‘‘Act of 1993’’ and adding ‘‘Act of 1993
(Pub. L. 103–182)’’ in its place;
■ b. Removing from paragraph (a)(2)(ii)
‘‘Act (Pub. L. 108–77’’ and adding ‘‘Act
(Pub. L. 108–77) (19 U.S.C. 3805 note)’’
in its place;
Trade agreement
25.1101
25.400
[Amended]
■
■
Therefore, DoD, GSA, and NASA
amend 48 CFR parts 4, 25, and 52 as set
forth below:
*
c. Removing from paragraph
(a)(2)(viii) ‘‘and’’;
■ d. Removing from paragraph (a)(2)(ix)
‘‘;’’ and adding ‘‘; and’’ in its place; and
■ e. Adding paragraph (a)(2)(x).
The added text reads as follows:
■
PART 25—FOREIGN ACQUISITION
Government procurement.
*
(v) 52.225–4, Buy American Act—
Free Trade Agreements—Israeli Trade
Act Certificate (Basic, Alternates I, II,
and III).
*
*
*
*
*
ANNUAL REPRESENTATIONS AND
CERTIFICATIONS (MAR 2012)
*
*
*
*
*
(c)(1) * * *
(xvii) 52.225–4, Buy American Act—
Free Trade Agreements—Israeli Trade
Act Certificate. (Basic, Alternates I, II,
and III.) This provision applies to
solicitations containing the clause at
52.225–3.
*
*
*
*
*
(D) If the acquisition value is $77,494
or more but is less than $100,000, the
provision with its Alternate III applies.
*
*
*
*
*
■ 9. Amend section 52.212–3 by—
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a. Revising the date of the provision;
b. Redesignating paragraph (g)(4) as
paragraph (g)(5);
■ c. Adding a new paragraph (g)(4); and
■ d. Removing from the newly
redesignated paragraph (g)(5)(i)
‘‘paragraph (g)(4)(ii)’’ and adding
‘‘paragraph (g)(5)(ii)’’ in its place.
The revised and added text reads as
follows:
■
■
52.212–3 Offeror Representations and
Certifications—Commercial Items.
*
*
*
*
*
OFFEROR REPRESENTATIONS AND
CERTIFICATIONS—COMMERCIAL
ITEMS (MAR 2012)
*
*
*
*
*
(g) * * *
(4) Buy American Act—Free Trade
Agreements—Israeli Trade Act
Certificate, Alternate III. If Alternate III
to the clause at 52.225–3 is included in
this solicitation, substitute the following
paragraph (g)(1)(ii) for paragraph
(g)(1)(ii) of the basic provision:
(g)(1)(ii) The offeror certifies that the
following supplies are Free Trade
Agreement country end products (other
than Bahrainian, Korean, Moroccan,
Omani, or Peruvian end products) or
Israeli end products as defined in the
clause of this solicitation entitled ‘‘Buy
American Act—Free Trade
Agreements—Israeli Trade Act’’:
Free Trade Agreement Country End
Products (Other than Bahrainian,
Korean, Moroccan, Omani, or Peruvian
End Products) or Israeli End Products:
COUNTRY OF
ORIGIN
LINE ITEM NO.
[List as necessary]
*
*
*
*
*
■ 10. Amend section 52.212–5 by
revising the date of the clause, and
paragraphs (b)(40) and (b)(41) to read as
follows:
52.212–5 Contract Terms and Conditions
Required to Implement Statutes or
Executive Orders—Commercial Items.
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*
*
*
*
*
CONTRACT TERMS AND
CONDITIONS REQUIRED TO
IMPLEMENT STATUTES OR
EXECUTIVE ORDERS—COMMERCIAL
ITEMS (MAR 2012)
*
*
*
*
*
(b) * * *
__(40)(i) 52.225–3, Buy American
Act—Free Trade Agreements—Israeli
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Trade Act (Mar 2012) (41 U.S.C. chapter
83, 19 U.S.C. 3301 note, 19 U.S.C. 2112
note, 19 U.S.C. 3805 note, 19 U.S.C.
4001 note, Pub. L. 103–182, Pub. L.
108–77, 108–78, 108–286, 108–302,
109–53, 109–169, 109–283, 110–138,
and Pub. L. 112–41).
__(ii) Alternate I (Mar 2012) of
52.225–3.
__(iii) Alternate II (Mar 2012) of
52.225–3.
__(iv) Alternate III (Mar 2012) of
52.225–3.
__(41) 52.225–5, Trade Agreements
(Mar 2012) (19 U.S.C. 2501, et seq., 19
U.S.C. 3301 note).
*
*
*
*
*
■ 11. Amend section 52.225–3 by—
■ a. Revising the date of the provision;
■ b. In paragraph (a) in the definition
‘‘Free Trade Agreement country’’
removing ‘‘Honduras, Mexico’’ and
adding ‘‘Honduras, Korea (Republic of),
Mexico’’ in its place;
■ c. Removing from the first sentence of
paragraph (c) ‘‘(41 U.S.C. 10a–10d)’’ and
adding ‘‘(41 U.S.C. chapter 83)’’ in its
place;
■ d. Removing from the second sentence
of paragraph (c) ‘‘41 U.S.C. 431’’ and
adding ‘‘41 U.S.C. 1907’’ in its place;
■ e. Removing from the introductory
text of Alternate I ‘‘(JAN 2004)’’ and
adding ‘‘(MAR 2012)’’ in its place;
■ f. Removing from the first sentence in
paragraph (c) of Alternate I ‘‘The
Contracting Officer’’ and adding ‘‘41
U.S.C. chapter 83 provides a preference
for domestic end products for supplies
acquired for use in the United States. In
accordance with 41 U.S.C. 1907, the
component test of the Buy American
Act is waived for an end product that is
a COTS item (See 12.505(a)(1)). In
addition, the Contracting Officer’’ in its
place;
■ g. Removing from the introductory
text of Alternate II ‘‘(JAN 2004)’’ and
adding ‘‘(MAR 2012)’’ in its place;
■ h. Removing from the first sentence in
paragraph (c) of Alternate II ‘‘The
Contracting Officer’’ and adding ‘‘41
U.S.C. chapter 83 provides a preference
for domestic end products for supplies
acquired for use in the United States. In
accordance with 41 U.S.C. 1907, the
component test of the Buy American
Act is waived for an end product that is
a COTS item (See 12.505(a)(1)). In
addition, the Contracting Officer’’ in its
place; and
■ i. Adding Alternate III.
The revised and added text reads as
follows:
52.225–3 Buy American Act—Free Trade
Agreements—Israeli Trade Act.
*
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BUY AMERICAN ACT—FREE TRADE
AGREEMENTS—ISRAELI TRADE ACT
(MAR 2012)
*
*
*
*
*
Alternate III (MAR 2012). As
prescribed in 25.1101(b)(1)(iv), delete
the definition of ‘‘Bahrainian,
Moroccan, Omani, or Peruvian end
product’’ and add in its place the
following definition of ‘‘Bahrainian,
Korean, Moroccan, Omani, or Peruvian
end product’’ in paragraph (a) of the
basic clause; and substitute the
following paragraph (c) for paragraph (c)
of the basic clause:
Bahrainian, Korean, Moroccan,
Omani, or Peruvian end product means
an article that—
(1) Is wholly the growth, product, or
manufacture of Bahrain, Korea
(Republic of), Morocco, Oman, or Peru;
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,
Korea (Republic of), Morocco, Oman, or
Peru 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.
(c) Delivery of end products. 41 U.S.C.
chapter 83 provides a preference for
domestic end products for supplies
acquired for use in the United States. In
accordance with 41 U.S.C. 1907, the
component test of the Buy American
Act is waived for an end product that is
a COTS item (See 12.505(a)(1)). In
addition, the Contracting Officer has
determined that FTAs (except the
Bahrain, Korea (Republic of), Morocco,
Oman, and Peru FTAs) and the Israeli
Trade Act apply to this acquisition.
Unless otherwise specified, these trade
agreements apply to all items in the
Schedule. The Contractor shall deliver
under this contract only domestic end
products except to the extent that, in its
offer, it specified delivery of foreign end
products in the provision entitled ‘‘Buy
American Act—Free Trade
Agreements—Israeli Trade Act
Certificate.’’ If the Contractor specified
in its offer that the Contractor would
supply a Free Trade Agreement country
end product (other than a Bahrainian,
Korean, Moroccan, Omani, or Peruvian
end product) or an Israeli end product,
then the Contractor shall supply a Free
E:\FR\FM\07MRR3.SGM
07MRR3
13956
Federal Register / Vol. 77, No. 45 / Wednesday, March 7, 2012 / Rules and Regulations
Trade Agreement country end product
(other than a Bahrainian, Korean,
Moroccan, Omani, or Peruvian end
product), an Israeli end product or, at
the Contractor’s option, a domestic end
product.
12. Amend section 52.225–4 by
adding Alternate III to read as follows:
■
52.225–4 Buy American Act—Free Trade
Agreements—Israeli Trade Act Certificate.
*
*
*
*
*
Alternate III (MAR 2012). As
prescribed in 25.1101(b)(2)(iv),
substitute the following paragraph (b)
for paragraph (b) of the basic provision:
(b) The offeror certifies that the
following supplies are Free Trade
Agreement country end products (other
than Bahrainian, Korean, Moroccan,
Omani, or Peruvian end products) or
Israeli end products as defined in the
clause of this solicitation entitled ‘‘Buy
American Act—Free Trade
Agreements—Israeli Trade Act’’:
Free Trade Agreement Country End
Products (Other than Bahrainian,
Korean, Moroccan, Omani, or Peruvian
End Products) or Israeli End Products:
COUNTRY OF
ORIGIN
LINE ITEM NO.
paragraph (2) ‘‘Honduras, Mexico’’ and
adding ‘‘Honduras, Korea (Republic of),
Mexico’’ in its place;
■ c. Removing from the first sentence of
paragraph (b)(1) ‘‘(41 U.S.C. 10a–10d)’’
and adding ‘‘(41 U.S.C. chapter 83)’’ in
its place;
■ d. Removing from the second sentence
of paragraph (b)(1) ‘‘41 U.S.C. 431’’ and
adding ‘‘41 U.S.C. 1907’’ in its place;
■ e. Removing from the introductory
text of Alternate I ‘‘(JUN 2009)’’ and
adding ‘‘(MAR 2012)’’ in its place;
■ f. Removing from the first sentence in
paragraph (b)(1) of Alternate I ‘‘(41
U.S.C. 10a–10d)’’ and adding ‘‘(41
U.S.C. chapter 83)’’ in its place; and
■ g. Removing from the second sentence
in paragraph (b)(1) of Alternate I ‘‘41
U.S.C. 431’’ and adding ‘‘41 U.S.C.
1907’’ in its place.
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 (MAR 2012)
*
*
*
*
*
15. Amend section 52.225–23 by—
a. Revising the date of the clause;
■ b. In paragraph (a) in the definition
‘‘Designated country’’ removing from
paragraph (2) ‘‘Honduras, Mexico’’ and
adding ‘‘Honduras, Korea (Republic of),
Mexico’’ in its place; and
■ c. In paragraph (a) in the definition
‘‘Recovery Act designated country’’
removing from paragraph (2)
‘‘Honduras, Mexico’’ and adding
‘‘Honduras, Korea (Republic of),
Mexico’’ in its place.
The revised text reads as follows:
■
■
[List as necessary]
13. Amend section 52.225–5 by—
a. Revising the date of the clause; and
b. In paragraph (a) in the definition
‘‘Designated country’’ removing from
paragraph (2) ‘‘Honduras, Mexico’’ and
adding ‘‘Honduras, Korea (Republic of),
Mexico’’ in its place.
The revised text reads as follows:
■
■
■
52.225–5
*
*
Trade Agreements.
*
*
*
TRADE AGREEMENTS (MAR 2012)
52.225–23 Required Use of American Iron,
Steel, and Manufactured Goods—Buy
American Act—Construction Materials
under Trade Agreements.
*
*
*
*
*
■ 14. Amend section 52.225–11 by—
■ a. Revising the date of the clause;
■ b. In paragraph (a) in the definition
‘‘Designated country’’ removing from
*
*
*
*
*
REQUIRED USE OF AMERICAN IRON,
STEEL, AND MANUFACTURED
GOODS—BUY AMERICAN ACT—
CONSTRUCTION MATERIALS UNDER
TRADE AGREEMENTS (MAR 2012)
*
*
*
*
*
[FR Doc. 2012–5528 Filed 3–6–12; 8:45 am]
BILLING CODE 6820–14–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Chapter 1
[Docket FAR 2012–0081, Sequence 2]
Federal Acquisition Regulation;
Federal Acquisition Circular 2005–57;
Small Entity Compliance Guide
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Small Entity Compliance Guide.
AGENCY:
This document is issued
under the joint authority of DOD, GSA,
and NASA. This Small Entity
Compliance Guide has been prepared in
accordance with section 212 of the
Small Business Regulatory Enforcement
Fairness Act of 1996. It consists of a
summary of the rule appearing in
Federal Acquisition Circular (FAC)
2005–57, which amends the Federal
Acquisition Regulation (FAR).
Interested parties may obtain further
information regarding this rule by
referring to FAC 2005–57, which
precedes this document. These
documents are also available via the
Internet at https://www.regulations.gov.
DATES: March 7, 2012.
FOR FURTHER INFORMATION CONTACT: For
clarification of content, contact the
analyst whose name appears in the table
below. Please cite FAC 2005–57 and the
FAR case number. For information
pertaining to status or publication
schedule, contact the Regulatory
Secretariat at 202–501–4755.
SUMMARY:
LIST OF RULE IN FAC 2005–57
tkelley on DSK3SPTVN1PROD with RULES3
Subject
FAR case
United States-Korea Free Trade Agreement (Interim) ............................................................................................
A
Summary for the FAR rule follows. For
the actual revisions and/or amendments
SUPPLEMENTARY INFORMATION:
VerDate Mar<15>2010
19:48 Mar 06, 2012
Jkt 226001
made by this FAR case, refer to FAR
Case 2012–004.
PO 00000
Frm 00006
Fmt 4701
Sfmt 4700
Analyst
2012–004
FAC 2005–57 amends the FAR as
specified below:
E:\FR\FM\07MRR3.SGM
07MRR3
Erwin
]]>Agencies
[Federal Register Volume 77, Number 45 (Wednesday, March 7, 2012)]
[Rules and Regulations]
[Pages 13952-13956]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-5528]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 4, 25, and 52
[FAC 2005-57; FAR Case 2012-004; Docket 2012-0004, Sequence 1]
RIN 9000-AM18
Federal Acquisition Regulation; United States-Korea Free Trade
Agreement
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule.
-----------------------------------------------------------------------
SUMMARY: DoD, GSA, and NASA are issuing an interim rule amending the
Federal Acquisition Regulation (FAR) to implement the United States-
Korea Free Trade Agreement. The Republic of Korea is already party to
the World Trade Organization Government Procurement Agreement, but this
trade agreement implements a lower procurement threshold.
DATES: Effective Date: March 15, 2012.
Comment Date: Interested parties should submit written comments to
the Regulatory Secretariat on or before May 7, 2012 to be considered in
the formulation of a final rule.
ADDRESSES: Submit comments identified by FAC 2005-57, FAR Case 2012-
004, by any of the following methods:
Regulations.gov: https://www.regulations.gov. Submit
comments via the Federal eRulemaking portal by inputting ``FAR Case
2012-004'' under the heading ``Enter Keyword or ID'' and selecting
``Search.'' Select the link ``Submit a Comment'' that corresponds with
``FAR Case 2012-004.'' Follow the instructions provided at the ``Submit
a Comment'' screen. Please include your name, company name (if any),
and ``FAR Case 2012-004'' on your attached document.
Fax: 202-501-4067.
Mail: General Services Administration, Regulatory
Secretariat (MVCB), ATTN: Hada Flowers, 1275 First Street NE., 7th
Floor, Washington, DC 20417.
Instructions: Please submit comments only and cite FAC 2005-57, FAR
Case 2012-004, 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: Ms. Deborah Erwin, Attorney-Advisor in
the Office of Governmentwide Policy, at 202-501-2164 for clarification
of content. For information pertaining to status or publication
schedules, contact the Regulatory Secretariat at 202-501-4755. Please
cite FAC 2005-57, FAR Case 2012-004.
SUPPLEMENTARY INFORMATION:
I. Background
This interim rule amends FAR part 25 and the corresponding
provisions and clauses in part 52 to implement the United States-Korea
Free Trade Agreement (see the United States-Korea Free Trade Agreement
Implementation Act (Pub. L. 112-41) (19 U.S.C. 3805 note)).
[[Page 13953]]
The Republic of Korea is already party to the World Trade
Organization Government Procurement Agreement (WTO GPA). This Free
Trade Agreement (FTA) now covers acquisition of supplies and services
between $100,000 and the current WTO GPA threshold of $202,000,
lowering the threshold for--
Waiver of the applicability of the Buy American statute
(41 U.S.C. chapter 83) for some foreign supplies and construction
materials from the Republic of Korea; and
Applicability of specified procurement procedures designed
to ensure fairness in the acquisition of supplies and services (see FAR
25.408). These obligations include, among others, that an agency shall
not impose the condition that, in order for an offeror to be allowed to
submit an offer or be awarded a contract, the offeror has been
previously awarded one or more contracts by an agency of the United
States Government or that the offeror has prior work experience in the
United States (see FAR 15.305(a)(2)(iv)).
II. Discussion and Analysis
This interim rule adds the Republic of Korea to the definition of
``Free Trade Agreement country'' in multiple locations in the FAR. The
Republic of Korea was already listed as a designated country because it
is party to the WTO GPA. The excluded services for Korea FTA are the
same as for the WTO GPA.
By implementation of this Korea FTA, eligible goods and services
from Korea are now covered when valued at or above $100,000, rather
than at or above the WTO GPA threshold of $202,000. The threshold for
the Korea FTA for construction is the same as the threshold for the WTO
GPA for construction.
The Korea FTA $100,000 threshold for supplies and services is
higher than the threshold for supplies and services for most of the
FTAs ($77,494), but not as high as the Bahrain, Morocco, Oman, and Peru
FTA threshold for supplies and services ($202,000). Therefore, new
alternates are required for the Buy American Act--Free Trade
Agreements--Israeli Trade Act provision and clause (FAR 52.225-3 and
52.225-4) to cover acquisitions that are valued at $77,494 or more but
less than $100,000. In that dollar range, all FTAs are applicable
except for the Bahrain, Korea, Morocco, Oman, and Peru FTAs.
Because the Korea FTA construction threshold of $7,777,000 is the
same as the WTO GPA threshold, no new clause alternates are required
for the Buy American Act--Construction Materials under Trade Agreements
provision and clause (FAR 52.225-11 and 52.225-12) or the Recovery Act
clauses at FAR 52.225-23 and 52.225-24.
Some minor editorial type corrections are also included in this
rule to--
Include the public law number and 19 U.S.C. reference for
all Free Trade Agreements;
Correct references to 41 U.S.C. chapter 83 and 41 U.S.C.
1907 (based on the recent positive law codification of title 41);
Delete an unnecessary definition of ``Canadian end
product'' in FAR 25.003 (term is only used in the provisions and
clauses, and is defined at FAR 52.225-3 Buy American Act--Free Trade
Agreements--Israeli Trade Act); and
Provide consistency in paragraph (c) of FAR 52.225-3
between basic clause and alternates, except to the extent that a change
is required due to the applicability of trade agreements. This consists
of adding to Alternates I and II the statement that the Buy American
Act provides a preference for domestic goods, and that the component
test of the Buy American Act has been waived for end products that are
commercially available off-the-shelf items, in accordance with 41
U.S.C. 1907.
III. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is a significant regulatory action and, therefore, was subject to
review under section 6(b) of E.O. 12866, Regulatory Planning and
Review, dated September 30, 1993. This rule is not a major rule under 5
U.S.C. 804.
IV. Regulatory Flexibility Act
DoD, GSA, and NASA do 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. Korea
is already a designated country under the WTO GPA. Although the rule
now opens up Government procurement to the goods and services of Korea
at or above the threshold of $100,000, DoD, GSA, and NASA 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 Defense Federal Acquisition Regulation
Supplement 225.401-70, and acquisitions that are set aside or provide
other form of preference for small businesses are exempt. FAR 19.502-2
states that acquisitions of supplies or services with an anticipated
dollar value between $3,000 and $150,000 (with some exceptions) are
automatically reserved for small business concerns. Therefore, DoD,
GSA, and NASA have not performed an Initial Regulatory Flexibility
Analysis.
DoD, GSA, and NASA invite comments from small business concerns and
other interested parties on the expected impact of this rule on small
entities.
DoD, GSA, and NASA will also consider comments from small entities
concerning the existing regulations in subparts affected by the rule in
accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C 610 (FAR Case 2012-004), in
correspondence.
V. Paperwork Reduction Act
This 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, in accordance with the Paperwork
Reduction Act (44 U.S.C. chapter 35). The impact, however, is
negligible, because it is just a question of which category offered
goods from the Republic of Korea would be listed under.
VI. 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 Free Trade Agreement with the Republic of
Korea takes effect on March 15, 2012. This is a reciprocal agreement,
approved by Congress and the President of the United States. It is
important for the United States Government to honor its new trade
obligations to the Republic of Korea, as the Republic of Korea in turn
honors its new trade obligations to the United States. However,
pursuant to 41 U.S.C. 1707 and FAR 1.501-3(b), DoD, GSA, and NASA will
consider public
[[Page 13954]]
comments received in response to this interim rule in the formation of
the final rule.
List of Subjects in 48 CFR Parts 4, 25, and 52
Government procurement.
Dated: March 1, 2012.
Laura Auletta,
Director, Office of Governmentwide Acquisition Policy, Office of
Acquisition Policy, Office of Governmentwide Policy.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 4, 25, and 52 as
set forth below:
0
1. The authority citation for 48 CFR parts 4, 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 4--ADMINISTRATIVE MATTERS
0
2. Amend section 4.1202 by revising paragraph (v) to read as follows:
4.1202 Solicitation provision and contract clause.
* * * * *
(v) 52.225-4, Buy American Act--Free Trade Agreements--Israeli
Trade Act Certificate (Basic, Alternates I, II, and III).
* * * * *
PART 25--FOREIGN ACQUISITION
25.003 [Amended]
0
3. Amend section 25.003 by--
0
a. Removing the definition ``Canadian end product'';
0
b. In paragraph (2) of the definition ``Designated country'' removing
``Honduras, Mexico'' and adding ``Honduras, Korea (Republic of),
Mexico'' in its place; and
0
c. In the definition ``Free Trade Agreement country'' removing
``Honduras, Mexico'' and adding ``Honduras, Korea (Republic of),
Mexico'' in its place.
0
4. Amend section 25.400 by--
0
a. Removing from paragraph (a)(2)(i) ``Act of 1993'' and adding ``Act
of 1993 (Pub. L. 103-182)'' in its place;
0
b. Removing from paragraph (a)(2)(ii) ``Act (Pub. L. 108-77'' and
adding ``Act (Pub. L. 108-77) (19 U.S.C. 3805 note)'' in its place;
0
c. Removing from paragraph (a)(2)(viii) ``and'';
0
d. Removing from paragraph (a)(2)(ix) ``;'' and adding ``; and'' in its
place; and
0
e. Adding paragraph (a)(2)(x).
The added text reads as follows:
25.400 Scope of subpart.
(a) * * *
(2) * * *
(x) Korea FTA (the United States-Korea Free Trade Agreement
Implementation Act (Pub. L. 112-41) (19 U.S.C. 3805 note));
* * * * *
25.401 [Amended]
0
5. Amend section 25.401 in the table that follows paragraph (b) by
removing from the table heading ``WTO GPA'' and adding ``WTO GPA AND
KOREA FTA'' in its place; and by removing from paragraph (6) ``-V503''.
0
6. Amend section 25.402 by revising the table that follows paragraph
(b) to read as follows:
25.402 General.
* * * * *
(b) * * *
----------------------------------------------------------------------------------------------------------------
Supply contract Service contract Construction
Trade agreement (equal to or (equal to or contract (equal
exceeding) exceeding) to or exceeding)
----------------------------------------------------------------------------------------------------------------
WTO GPA................................................ $202,000 $202,000 $7,777,000
FTAs:
Australia FTA...................................... 77,494 77,494 7,777,000
Bahrain FTA........................................ 202,000 202,000 10,074,262
CAFTA-DR (Costa Rica, Dominican Republic, El 77,494 77,494 7,777,000
Salvador, Guatemala, Honduras, and Nicaragua).....
Chile FTA.......................................... 77,494 77,494 7,777,000
Korea FTA.......................................... 100,000 100,000 7,777,000
Morocco FTA........................................ 202,000 202,000 7,777,000
NAFTA: ................. ................. .................
--Canada....................................... 25,000 77,494 10,074,262
--Mexico....................................... 77,494 77,494 10,074,262
Oman FTA........................................... 202,000 202,000 10,074,262
Peru FTA........................................... 202,000 202,000 7,777,000
Singapore FTA...................................... 77,494 77,494 7,777,000
Israeli Trade Act.................................. 50,000 ................. .................
----------------------------------------------------------------------------------------------------------------
0
7. Amend section 25.1101 by adding paragraphs (b)(1)(iv) and (b)(2)(iv)
to read as follows:
25.1101 Acquisition of supplies.
* * * * *
(b)(1) * * *
(iv) If the acquisition value is $77,494 or more but is less than
$100,000, use the clause with its Alternate III.
(2) * * *
(iv) If the acquisition value is $77,494 or more, but is less than
$100,000, use the provision with its Alternate III.
* * * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
8. Amend section 52.204-8 by revising the date of the provision and the
introductory text of paragraph (c)(1)(xvii); and adding paragraph
(c)(1)(xvii)(D).
The revised and added text reads as follows:
52.204-8 Annual Representations and Certifications.
* * * * *
ANNUAL REPRESENTATIONS AND CERTIFICATIONS (MAR 2012)
* * * * *
(c)(1) * * *
(xvii) 52.225-4, Buy American Act--Free Trade Agreements--Israeli
Trade Act Certificate. (Basic, Alternates I, II, and III.) This
provision applies to solicitations containing the clause at 52.225-3.
* * * * *
(D) If the acquisition value is $77,494 or more but is less than
$100,000, the provision with its Alternate III applies.
* * * * *
0
9. Amend section 52.212-3 by--
[[Page 13955]]
0
a. Revising the date of the provision;
0
b. Redesignating paragraph (g)(4) as paragraph (g)(5);
0
c. Adding a new paragraph (g)(4); and
0
d. Removing from the newly redesignated paragraph (g)(5)(i) ``paragraph
(g)(4)(ii)'' and adding ``paragraph (g)(5)(ii)'' in its place.
The revised and added text reads as follows:
52.212-3 Offeror Representations and Certifications--Commercial Items.
* * * * *
OFFEROR REPRESENTATIONS AND CERTIFICATIONS--COMMERCIAL ITEMS (MAR 2012)
* * * * *
(g) * * *
(4) Buy American Act--Free Trade Agreements--Israeli Trade Act
Certificate, Alternate III. If Alternate III to the clause at 52.225-3
is included in this solicitation, substitute the following paragraph
(g)(1)(ii) for paragraph (g)(1)(ii) of the basic provision:
(g)(1)(ii) The offeror certifies that the following supplies are
Free Trade Agreement country end products (other than Bahrainian,
Korean, Moroccan, Omani, or Peruvian end products) or Israeli end
products as defined in the clause of this solicitation entitled ``Buy
American Act--Free Trade Agreements--Israeli Trade Act'':
Free Trade Agreement Country End Products (Other than Bahrainian,
Korean, Moroccan, Omani, or Peruvian End Products) or Israeli End
Products:
LINE ITEM NO. COUNTRY OF ORIGIN
----------------------------------------- ---------------------------
----------------------------------------- ---------------------------
----------------------------------------- ---------------------------
[List as necessary]
* * * * *
0
10. Amend section 52.212-5 by revising the date of the clause, and
paragraphs (b)(40) and (b)(41) to read 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 (MAR 2012)
* * * * *
(b) * * *
----(40)(i) 52.225-3, Buy American Act--Free Trade Agreements--
Israeli Trade Act (Mar 2012) (41 U.S.C. chapter 83, 19 U.S.C. 3301
note, 19 U.S.C. 2112 note, 19 U.S.C. 3805 note, 19 U.S.C. 4001 note,
Pub. L. 103-182, Pub. L. 108-77, 108-78, 108-286, 108-302, 109-53, 109-
169, 109-283, 110-138, and Pub. L. 112-41).
----(ii) Alternate I (Mar 2012) of 52.225-3.
----(iii) Alternate II (Mar 2012) of 52.225-3.
----(iv) Alternate III (Mar 2012) of 52.225-3.
----(41) 52.225-5, Trade Agreements (Mar 2012) (19 U.S.C. 2501, et
seq., 19 U.S.C. 3301 note).
* * * * *
0
11. Amend section 52.225-3 by--
0
a. Revising the date of the provision;
0
b. In paragraph (a) in the definition ``Free Trade Agreement country''
removing ``Honduras, Mexico'' and adding ``Honduras, Korea (Republic
of), Mexico'' in its place;
0
c. Removing from the first sentence of paragraph (c) ``(41 U.S.C. 10a-
10d)'' and adding ``(41 U.S.C. chapter 83)'' in its place;
0
d. Removing from the second sentence of paragraph (c) ``41 U.S.C. 431''
and adding ``41 U.S.C. 1907'' in its place;
0
e. Removing from the introductory text of Alternate I ``(JAN 2004)''
and adding ``(MAR 2012)'' in its place;
0
f. Removing from the first sentence in paragraph (c) of Alternate I
``The Contracting Officer'' and adding ``41 U.S.C. chapter 83 provides
a preference for domestic end products for supplies acquired for use in
the United States. In accordance with 41 U.S.C. 1907, the component
test of the Buy American Act is waived for an end product that is a
COTS item (See 12.505(a)(1)). In addition, the Contracting Officer'' in
its place;
0
g. Removing from the introductory text of Alternate II ``(JAN 2004)''
and adding ``(MAR 2012)'' in its place;
0
h. Removing from the first sentence in paragraph (c) of Alternate II
``The Contracting Officer'' and adding ``41 U.S.C. chapter 83 provides
a preference for domestic end products for supplies acquired for use in
the United States. In accordance with 41 U.S.C. 1907, the component
test of the Buy American Act is waived for an end product that is a
COTS item (See 12.505(a)(1)). In addition, the Contracting Officer'' in
its place; and
0
i. Adding Alternate III.
The revised and added 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 (MAR 2012)
* * * * *
Alternate III (MAR 2012). As prescribed in 25.1101(b)(1)(iv),
delete the definition of ``Bahrainian, Moroccan, Omani, or Peruvian end
product'' and add in its place the following definition of
``Bahrainian, Korean, Moroccan, Omani, or Peruvian end product'' in
paragraph (a) of the basic clause; and substitute the following
paragraph (c) for paragraph (c) of the basic clause:
Bahrainian, Korean, Moroccan, Omani, or Peruvian end product means
an article that--
(1) Is wholly the growth, product, or manufacture of Bahrain, Korea
(Republic of), Morocco, Oman, or Peru; 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, Korea (Republic of), Morocco, Oman, or Peru 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.
(c) Delivery of end products. 41 U.S.C. chapter 83 provides a
preference for domestic end products for supplies acquired for use in
the United States. In accordance with 41 U.S.C. 1907, the component
test of the Buy American Act is waived for an end product that is a
COTS item (See 12.505(a)(1)). In addition, the Contracting Officer has
determined that FTAs (except the Bahrain, Korea (Republic of), Morocco,
Oman, and Peru FTAs) and the Israeli Trade Act apply to this
acquisition. Unless otherwise specified, these trade agreements apply
to all items in the Schedule. The Contractor shall deliver under this
contract only domestic end products except to the extent that, in its
offer, it specified delivery of foreign end products in the provision
entitled ``Buy American Act--Free Trade Agreements--Israeli Trade Act
Certificate.'' If the Contractor specified in its offer that the
Contractor would supply a Free Trade Agreement country end product
(other than a Bahrainian, Korean, Moroccan, Omani, or Peruvian end
product) or an Israeli end product, then the Contractor shall supply a
Free
[[Page 13956]]
Trade Agreement country end product (other than a Bahrainian, Korean,
Moroccan, Omani, or Peruvian end product), an Israeli end product or,
at the Contractor's option, a domestic end product.
0
12. Amend section 52.225-4 by adding Alternate III to read as follows:
52.225-4 Buy American Act--Free Trade Agreements--Israeli Trade Act
Certificate.
* * * * *
Alternate III (MAR 2012). As prescribed in 25.1101(b)(2)(iv),
substitute the following paragraph (b) for paragraph (b) of the basic
provision:
(b) The offeror certifies that the following supplies are Free
Trade Agreement country end products (other than Bahrainian, Korean,
Moroccan, Omani, or Peruvian end products) or Israeli end products as
defined in the clause of this solicitation entitled ``Buy American
Act--Free Trade Agreements--Israeli Trade Act'':
Free Trade Agreement Country End Products (Other than Bahrainian,
Korean, Moroccan, Omani, or Peruvian End Products) or Israeli End
Products:
LINE ITEM NO. COUNTRY OF ORIGIN
----------------------------------------- ---------------------------
----------------------------------------- ---------------------------
----------------------------------------- ---------------------------
[List as necessary]
0
13. Amend section 52.225-5 by--
0
a. Revising the date of the clause; and
0
b. In paragraph (a) in the definition ``Designated country'' removing
from paragraph (2) ``Honduras, Mexico'' and adding ``Honduras, Korea
(Republic of), Mexico'' in its place.
The revised text reads as follows:
52.225-5 Trade Agreements.
* * * * *
TRADE AGREEMENTS (MAR 2012)
* * * * *
0
14. Amend section 52.225-11 by--
0
a. Revising the date of the clause;
0
b. In paragraph (a) in the definition ``Designated country'' removing
from paragraph (2) ``Honduras, Mexico'' and adding ``Honduras, Korea
(Republic of), Mexico'' in its place;
0
c. Removing from the first sentence of paragraph (b)(1) ``(41 U.S.C.
10a-10d)'' and adding ``(41 U.S.C. chapter 83)'' in its place;
0
d. Removing from the second sentence of paragraph (b)(1) ``41 U.S.C.
431'' and adding ``41 U.S.C. 1907'' in its place;
0
e. Removing from the introductory text of Alternate I ``(JUN 2009)''
and adding ``(MAR 2012)'' in its place;
0
f. Removing from the first sentence in paragraph (b)(1) of Alternate I
``(41 U.S.C. 10a-10d)'' and adding ``(41 U.S.C. chapter 83)'' in its
place; and
0
g. Removing from the second sentence in paragraph (b)(1) of Alternate I
``41 U.S.C. 431'' and adding ``41 U.S.C. 1907'' in its place.
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 (MAR
2012)
* * * * *
0
15. Amend section 52.225-23 by--
0
a. Revising the date of the clause;
0
b. In paragraph (a) in the definition ``Designated country'' removing
from paragraph (2) ``Honduras, Mexico'' and adding ``Honduras, Korea
(Republic of), Mexico'' in its place; and
0
c. In paragraph (a) in the definition ``Recovery Act designated
country'' removing from paragraph (2) ``Honduras, Mexico'' and adding
``Honduras, Korea (Republic of), Mexico'' in its place.
The revised text reads as follows:
52.225-23 Required Use of American Iron, Steel, and Manufactured
Goods--Buy American Act--Construction Materials under Trade Agreements.
* * * * *
REQUIRED USE OF AMERICAN IRON, STEEL, AND MANUFACTURED GOODS--BUY
AMERICAN ACT--CONSTRUCTION MATERIALS UNDER TRADE AGREEMENTS (MAR 2012)
* * * * *
[FR Doc. 2012-5528 Filed 3-6-12; 8:45 am]
BILLING CODE 6820-14-P
