Federal Acquisition Regulation; United States-Korea Free Trade Agreement, 13952-13956 [2012-5528]

Download as PDF 13952 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 http:// 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: tkelley on DSK3SPTVN1PROD with RULES3 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 19:48 Mar 06, 2012 Jkt 226001 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: PO 00000 Frm 00002 Fmt 4701 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: http:// 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 http:// 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: Sfmt 4700 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)). E:\FR\FM\07MRR3.SGM 07MRR3 Federal Register / Vol. 77, No. 45 / Wednesday, March 7, 2012 / Rules and Regulations tkelley on DSK3SPTVN1PROD with RULES3 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) VerDate Mar<15>2010 19:48 Mar 06, 2012 Jkt 226001 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 PO 00000 Frm 00003 Fmt 4701 Sfmt 4700 13953 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 E:\FR\FM\07MRR3.SGM 07MRR3 13954 Federal Register / Vol. 77, No. 45 / Wednesday, March 7, 2012 / Rules and Regulations 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: ■ tkelley on DSK3SPTVN1PROD with RULES3 VerDate Mar<15>2010 19:48 Mar 06, 2012 Jkt 226001 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 * PO 00000 * Frm 00004 * Fmt 4701 * Sfmt 4700 * 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— E:\FR\FM\07MRR3.SGM 07MRR3 Federal Register / Vol. 77, No. 45 / Wednesday, March 7, 2012 / Rules and Regulations 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. tkelley on DSK3SPTVN1PROD with RULES3 * * * * * 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 VerDate Mar<15>2010 19:48 Mar 06, 2012 Jkt 226001 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. * PO 00000 * * Frm 00005 * Fmt 4701 * Sfmt 4700 13955 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 http://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

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[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]


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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.

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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: http://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 http://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