Defense Federal Acquisition Regulation Supplement: United States-Korea Free Trade Agreement (DFARS Case 2012-D025), 30356-30359 [2012-11558]
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Federal Register / Vol. 77, No. 99 / Tuesday, May 22, 2012 / Rules and Regulations
Regulations System, OUSD (AT&L)
DPAP/DARS, Room 3B855, 3060
Defense Pentagon, Washington, DC
20301–3060. Telephone: 571–372–6106.
SUPPLEMENTARY INFORMATION:
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 225 and 252
RIN 0750–AH69
Defense Federal Acquisition
Regulation Supplement: United StatesKorea Free Trade Agreement (DFARS
Case 2012–D025)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Interim rule.
AGENCY:
DoD is issuing an interim rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to implement the United
States-Korea Free Trade Agreement. The
Republic of Korea is already party to the
World Trade Organization Government
Procurement Agreement.
DATES: Effective date: May 22, 2012.
Comment Date: Comments on the
interim rule should be submitted in
writing to the address shown below on
or before July 23, 2012, to be considered
in the formation of a final rule.
ADDRESSES: Submit comments
identified by DFARS Case 2012–D025,
using any of the following methods:
• Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
entering ‘‘DFARS Case 2012–D025’’
under the heading ‘‘Enter keyword or
ID’’ and selecting ‘‘Search.’’ Select the
link ‘‘Submit a Comment’’ that
corresponds with ‘‘DFARS Case 2012–
D025.’’ Follow the instructions provided
at the ‘‘Submit a Comment’’ screen.
Please include your name, company
name (if any), and ‘‘DFARS Case 2012–
D025’’ on your attached document.
• Email: dfars@osd.mil. Include
DFARS Case 2012–D025 in the subject
line of the message.
• Fax: 571–372–6094.
• Mail: Defense Acquisition
Regulations System, Attn: (Ms. Amy
Williams), OUSD (AT&L) DPAP/DARS,
Room 3B855, 3060 Defense Pentagon,
Washington, DC 20301–3060.
Comments received generally will be
posted without change to https://
www.regulations.gov, including any
personal information provided. To
confirm receipt of your comment(s),
please check www.regulations.gov,
approximately two to three days after
submission to verify posting (except
allow 30 days for posting of comments
submitted by mail).
FOR FURTHER INFORMATION CONTACT: Ms.
Amy Williams, Defense Acquisition
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SUMMARY:
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I. Background
This interim rule amends DFARS part
225 and the corresponding provisions
and clauses in DFARS part 252 to
implement the United States-Korea Free
Trade Agreement (see the United StatesKorea Free Trade Agreement
Implementation 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
(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 DFARS. 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, and
Peru FTA threshold for supplies and
services ($202,000). Therefore, new
alternates are required for the provision
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and clause for acquisition of
photovoltaic devices (DFARS 252.225–
7017 and 252.225–7018) and the Buy
American Act—Free Trade
Agreements—Balance of Payments
Program provision and clause (DFARS
252.225–7035 and 252.225–7036) 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, 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 Balance of
Payments Program—Construction
Material under Trade Agreements clause
(DFARS 252.225–7045).
There are also conforming changes to
the clause prescriptions at DFARS
225.1101, Alternate A, Annual
Representations and Certifications, and
DFARS 252.212–7001, Contract Terms
and Conditions required to Implement
Statutes or Executive Orders Applicable
to Defense Acquisitions of Commercial
Items.
A minor correction was made to
paragraph (c) of DFARS 252.225–7036,
Buy American Act—Free Trade
Agreements—Balance of Payments
Program to add Peruvian end products
to the list of end products not covered
by the clause. The definition of
‘‘Peruvian end products’’ had been
added to paragraph (a), but was not then
added in paragraph (c). This makes
paragraph (c) consistent with the trade
agreement thresholds specified in FAR
25.402(b), as already implemented in
paragraph (c) of Alternate II to DFARS
252.225–7036, as well as in the basic
provision at DFARS 252.225–7035 and
its Alternate II.
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.
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IV. Regulatory Flexibility Act
DoD does not expect this rule to have
a significant economic impact on a
substantial number of small entities
within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq.
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
does not anticipate any significant
economic impact on U.S. small
businesses. The Department of Defense
only applies the trade agreements to the
non-defense items listed at DFARS
225.401–70, and acquisitions that are set
aside or provide other forms of
preference for small businesses are
exempt. FAR 19.502–2 states that
acquisitions that do not exceed
$150,000 (except as described in
paragraph (1) of the definition of
‘‘simplified acquisition threshold’’ at
FAR 2.101) are automatically reserved
exclusively for small business concerns,
unless the contracting officer
determines that there is not a reasonable
expectation of obtaining offers from two
or more responsible small business
concerns.
DoD invites comments from small
business concerns and other interested
parties on the expected impact of this
rule on small entities.
DoD will also consider comments
from small entities concerning the
existing regulations in subparts affected
by 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 (DFARS Case 2012–D025), in
correspondence.
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V. Paperwork Reduction Act
This rule affects the certification and
information collection requirements in
the provisions at DFARS 252.225–7020
and 252.225–7035, currently approved
under OMB Control Number 0704–0229,
titled Defense Federal Acquisition
Regulation Supplement part 225,
Foreign Acquisition, and related
clauses, 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 under which category offered goods
from the Republic of Korea would be
listed. The rule also affects DFARS
252.225–7018, which is a variant of the
Buy American-trade agreements
certifications already approved, which
was issued as an interim rule under
DFARS Case 2011–D046 (76 FR 78858,
December 20, 2011).
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VI. Determination To Issue an Interim
Rule
A determination has been made under
the authority of the Secretary of Defense
that urgent and compelling reasons exist
to promulgate this interim rule without
prior opportunity for public comment.
This action is necessary because the
FTA with the Republic of Korea, for
which the President signed the
implementing legislation into law on
October 21, 2011 (Pub. L. 112–041),
entered into force 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
will consider public comments received
in response to this interim rule in the
formation of the final rule.
List of Subjects in 48 CFR Parts 225 and
252
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR parts 225 and 252
are amended as follows:
■ 1. The authority citation for 48 CFR
parts 225 and 252 continues to read as
follows:
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
PART 225—FOREIGN ACQUISITION
225.1101
[Amended]
2. Section 225.1101 is amended by:
a. Adding paragraphs (10)(v) and (vi);
b. In paragraph (11)(i)(A), removing
‘‘$77,494’’ and adding ‘‘$100,000’’ in its
place; and
■ c. Adding paragraph 11(i)(C).
The additions read as follows:
■
■
■
225.1101
Acquisition of supplies.
*
*
*
*
*
(10) * * *
(v) Use the provision with its
Alternate IV when the clause at
252.225–7036 is used with its Alternate
IV.
(vi) Use the provision with its
Alternate V when the clause at 252.225–
7036 is used with its Alternate V.
(11)(i) * * *
(C) Use the clause with its Alternate
IV when the estimated value equals or
exceeds $77,494 but is less than
$100,000, except if the acquisition is of
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end products in support of operations in
Afghanistan, use with its Alternate V.
*
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PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
3. Section 252.204–7007 is amended
by removing the clause date ‘‘(MAR
2012)’’ and adding ‘‘(MAY 2012)’’ in its
place and revising paragraph (d)(2)(vi)
to read as follows:
■
252.204–7007 Alternate A, Annual
Representations and Certifications.
*
*
*
*
*
(d) * * *
(2) * * *
___ (vi) 252.225–7035, Buy American
Act—Free Trade Agreements—Balance
of Payments Program Certificate.
___ Use with Alternate I.
___ Use with Alternate II.
___ Use with Alternate III.
___ Use with Alternate IV.
___ Use with Alternate V.
*
*
*
*
*
■ 4. Section 252.212–7001 is amended
by removing the clause date ‘‘(APR
2012)’’ and adding ‘‘(MAY 2012)’’ in its
place, revising paragraphs (b)(12) and
(b)(13)(i), and revising paragraph (b)(16)
to read as follows:
252.212–7001 Contract Terms and
Conditions Required to Implement Statutes
or Executive Orders Applicable to Defense
Acquisitions of Commercial Items.
*
*
*
*
*
(b) * * *
(12) ___ 252.225–7017, Photovoltaic
Devices (MAY 2012) (Section 846 of
Pub. L. 111–383).
(13)(i) ___ 252.225–7021, Trade
Agreements (MAY 2012) (19 U.S.C.
2501–2518 and 19 U.S.C. 3301 note).
*
*
*
*
*
(16)(i) ___ 252.225–7036, Buy
American Act—Free Trade
Agreements—Balance of Payments
Program (MAY 2012) (41 U.S.C. chapter
83 and 19 U.S.C. 3301 note).
(ii) ___ Alternate I (OCT 2011) of
252.225–7036.
(iii) ___ Alternate II (OCT 2011) of
252.225–7036.
(iv) ___ Alternate III (OCT 2011) of
252.225–7036.
(v) ___ Alternate IV (MAY 2012) of
252.225–7036.
(vi) ___ Alternate V (MAY 2012) of
252.225–7036.
*
*
*
*
*
■ 5. Section 252.225–7017 is amended
by—
■ a. Removing the clause date ‘‘(MAR
2012)’’ and adding ‘‘(MAY 2012)’’ in its
place;
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b. In paragraph (a), in the definition of
‘‘Designated country’’, revising
paragraph (ii);
■ c. In paragraph (a), revising the
definition of ‘‘Free Trade Agreement
country’’ and adding, in alphabetical
order, the definition of ‘‘Korean
photovoltaic device’’;
■ d. Redesignating paragraphs (c)(3) and
(c)(4) as paragraphs (c)(4) and (c)(5), and
adding newly designated paragraph
(c)(3); and
■ e. In newly designated paragraph
(c)(4), removing ‘‘$77,494’’ and adding
‘‘$100,000’’ in its place.
The additions and revisions read as
follows:
■
252.225–7017
Photovoltaic Devices.
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*
*
*
*
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(a) * * *
(ii) A Free Trade Agreement country
(Australia, Bahrain, Canada, Chile,
Costa Rica, Dominican Republic, El
Salvador, Guatemala, Honduras, Korea
(Republic of), Mexico, Morocco,
Nicaragua, Peru, or Singapore);
*
*
*
*
*
Free Trade Agreement country means
Australia, Bahrain, Canada, Chile, Costa
Rica, Dominican Republic, El Salvador,
Guatemala, Honduras, Korea (Republic
of), Mexico, Morocco, Nicaragua, Peru,
or Singapore.
*
*
*
*
*
Korean photovoltaic device means an
article that—
(i) Is wholly manufactured in Korea;
or
(ii) In the case of an article that
consists in whole or in part of materials
from another country, has been
substantially transformed in Korea
(Republic of) 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.
*
*
*
*
*
(c) * * *
(3) $77,494 or more but less than
$100,000, then the Contractor shall
utilize under this contract only
domestic photovoltaic devices,
qualifying country photovoltaic devices,
or Free Trade Agreement country
photovoltaic devices (other than
Bahrainian, Korean, Moroccan, or
Peruvian photovoltaic devices), unless,
in its offer, it specified utilization of
other foreign photovoltaic devices in
paragraph (c)(4)(ii) of the Photovoltaic
Devices—Certificate provision of the
solicitation. If the Contractor certified in
its offer that it will utilize a qualifying
country photovoltaic device or a Free
Trade Agreement country photovoltaic
device (other than a Bahrainian, Korean,
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Moroccan, or Peruvian photovoltaic
device), the Contractor shall utilize a
qualifying country photovoltaic device;
a Free Trade Agreement country
photovoltaic device (other than a
Bahrainian, Korean, Moroccan, or
Peruvian photovoltaic device), or, at the
Contractor’s option, a domestic
photovoltaic device;
*
*
*
*
*
■ 6. Section 252.225–7018 is amended
by—
■ a. Removing the clause date ‘‘(MAR
2012)’’ and adding ‘‘(MAY 2012)’’ in its
place;
■ b. In paragraph (a), removing ‘‘Free
Trade Agreement photovoltaic device,
least developed country photovoltaic
device,’’ and adding ‘‘Free Trade
Agreement photovoltaic device, Korean
photovoltaic device, least developed
country photovoltaic device’’ in its
place;
■ c. Redesignating paragraphs (c)(4) and
(c)(5) as paragraphs (c)(5) and (c)(6), and
adding newly designated paragraph
(c)(4); and
■ d. In newly designated paragraph
(c)(5), removing ‘‘$77,494’’ and adding
‘‘$100,000’’ in its place.
The additions and revisions read as
follows:
252.225–7018
Certificate.
Photovoltaic Devices—
*
*
*
*
*
(c) * * *
(4) If $77,494 or more but less than
$100,000—
__ (i) The offeror certifies that each
photovoltaic device to be utilized in
performance of the contract is a
domestic photovoltaic device; a
qualifying country (except Australian or
Canadian) photovoltaic device; a Free
Trade Agreement country photovoltaic
device (other than a Bahrainian, Korean,
Moroccan, or Peruvian photovoltaic
device) [Offeror to specify country of
origin ______]; or
__ (ii) The offered foreign
photovoltaic devices (other than those
from countries listed in paragraph
(c)(4)(i) of this provision) are the
product of ______. [Offeror to specify
country of origin, if known, and provide
documentation that the cost of a
domestic photovoltaic device. would be
unreasonable in comparison to the cost
of the proposed foreign photovoltaic
device.]
*
*
*
*
*
252.225–7021
[Amended]
7. Section 252.225–7021 is amended
by—
■ a. Removing the clause date ‘‘(JAN
2012)’’ and adding ‘‘(MAY 2012)’’ in its
place; and
■
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b. In paragraph (a), in the definition of
‘‘Designated country’’, paragraph (ii),
removing ‘‘Guatemala, Honduras,
Mexico’’ and adding ‘‘Guatemala,
Honduras, Korea (Republic of), Mexico’’
in its place.
■ 8. Section 252.225–7035 is amended
by adding Alternates IV and V to read
as follows:
■
252.225–7035 Buy American Act—Free
Trade Agreements—Balance of Payments
Program Certificate.
*
*
*
*
*
ALTERNATE IV (MAY 2012) As
prescribed in 225.1101(10)(v), add a
definition of ‘‘Korean end product’’ in
paragraph (a) of the basic provision;
substitute the phrase ‘‘Free Trade
Agreement country end products other
than Bahrainian end products, Korean
end products, Moroccan end products,
or Peruvian end products’’ for the
phrase ‘‘Free Trade Agreement country
end products other than Bahrainian end
products, Moroccan end products, or
Peruvian end products’’ in paragraphs
(b)(2) and (c)(2)(ii) of the basic
provision.
ALTERNATE V (MAY 2012) As
prescribed in 225.1101(10)(vi),
substitute the following paragraphs (a),
(b)(2), (c)(2)(i), and (c)(2)(ii) for
paragraphs (a), (b)(2), (c)(2)(i), and
(c)(2)(ii) of the basic clause:
(a) Definitions. Bahrainian end
product, commercially available off-theshelf (COTS) item, component, domestic
end product, Free Trade Agreement
country, Free Trade Agreement country
end product, foreign end product,
Korean end product, Moroccan end
product, Peruvian end product,
qualifying country end product, South
Caucasus/Central and South Asian (SC/
CASA) state end product, and United
States, as used in this provision, have
the meanings given in the Buy
American Act—Free Trade
Agreements—Balance of Payments
Program clause of this solicitation.
(b)(2) For line items subject to Free
Trade Agreements, will evaluate offers
of qualifying country end products, SC/
CASA state end products, or Free Trade
Agreement end products other than
Bahrainian end products, Korean end
products, Moroccan end products, or
Peruvian end products without regard to
the restrictions of the Buy American Act
or the Balance of Payments Program.
(c)(2)(i) The offeror certifies that the
following supplies are qualifying
country (except Australian or Canadian)
or SC/CASA state end products:
(Line Item Number)
(Country of Origin)
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(ii) The offeror certifies that the
following supplies are Free Trade
Agreement country end products other
than Bahrainian end products, Korean
end products, Moroccan end products,
or Peruvian end products:
(Line Item Number)
(Country of Origin)
9. Section 252.225–7036 is amended
by—
■ a. Removing the clause date ‘‘(OCT
2011)’’ and adding ‘‘(MAY 2012)’’ in its
place;
■ b. In paragraph (a) in the definition of
‘‘Free Trade Agreement country’’,
removing ‘‘Guatemala, Honduras,
Mexico,’’ and adding ‘‘Guatemala,
Honduras, Korea (Republic of), Mexico’’
in its place;
■ c. Revising paragraph (c); and
■ d. Adding Alternates IV and V.
The additions and revisions read as
follows:
■
252.225–7036 Buy American Act—Free
Trade Agreements—Balance of Payments
Program.
*
*
*
*
(c) The Contractor shall deliver under
this contract only domestic end
products unless, in its offer, it specified
delivery of qualifying country end
products, Free Trade Agreement country
end products other than Bahrainian end
products, Moroccan end products, or
Peruvian end products, or other foreign
end products in the Buy American
Act—Free Trade Agreements—Balance
of Payments Program Certificate
provision of the solicitation. If the
Contractor certified in its offer that it
will deliver a qualifying country end
product or a Free Trade Agreement
country end product other than a
Bahrainian end product, a Moroccan
end product, or a Peruvian end product,
the Contractor shall deliver a qualifying
country end product, a Free Trade
Agreement country end product other
than a Bahrainian end product, a
Moroccan end product, or a Peruvian
end product, or, at the Contractor’s
option, a domestic end product.
*
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ALTERNATE IV (MAY 2012)
As prescribed in 225.1101(11)(i)(C), add
the following definition to paragraph (a) and
substitute the following paragraph (c) for
paragraph (c) of the basic clause:
(a) Korean end product means an article
that—
(i) Is wholly the growth, product, or
manufacture of Korea; or
(ii) In the case of an article that consists in
whole or in part of materials from another
country, has been substantially transformed
in Korea (Republic of) into a new and
different article of commerce with a name,
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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 its
supply, provided that the value of those
incidental services does not exceed the value
of the product itself.
(c) The Contractor shall deliver under this
contract only domestic end products unless,
in its offer, it specified delivery of qualifying
country end products, Free Trade Agreement
country end products other than Bahrainian
end products, Korean end products,
Moroccan end products, or Peruvian end
products, or other foreign end products in the
Buy American Act—Free Trade
Agreements—Balance of Payments Program
Certificate provision of the solicitation. If the
Contractor certified in its offer that it will
deliver a qualifying country end product or
a Free Trade Agreement country end product
other than a Bahrainian end product, a
Korean end product, a Moroccan end
product, or a Peruvian end product, the
Contractor shall deliver a qualifying country
end product, a Free Trade Agreement country
end product other than a Bahrainian end
product, a Korean end product, a Moroccan
end product, or a Peruvian end product, or,
at the Contractor’s option, a domestic end
product.
under a supply contract, but for purposes of
calculating the value of the end product,
includes services (except transportation
services) incidental to its supply, provided
that the value of those incidental services
does not exceed the value of the product
itself.
(c) The Contractor shall deliver under this
contract only domestic end products unless,
in its offer, it specified delivery of qualifying
country end products, SC/CASA state end
products, Free Trade Agreement country end
products other than Bahrainian end products,
Korean end products, Moroccan end
products, or Peruvian end products, or other
foreign end products in the Buy American
Act—Free Trade Agreements—Balance of
Payments Program Certificate provision of
the solicitation. If the Contractor certified in
its offer that it will deliver a qualifying
country end product, SC/CASA state end
products, or a Free Trade Agreement country
end product other than a Bahrainian end
product, a Korean end product, a Moroccan
end product, or a Peruvian end product, the
Contractor shall deliver a qualifying country
end product, an SC/CASA state end product,
a Free Trade Agreement country end product
other than a Bahrainian end product, a
Korean end product, a Moroccan end
product, or a Peruvian end product or, at the
Contractor’s option, a domestic end product.
ALTERNATE V (MAY 2012)
As prescribed in 225.1101(11)(i)(C), add
the following new definitions to paragraph
(a) and substitute the following paragraph (c)
for paragraph (c) of the basic clause:
(a) Korean end product means an article
that—
(i) Is wholly the growth, product, or
manufacture of Korea; or
(ii) In the case of an article that consists in
whole or in part of materials from another
country, has been substantially transformed
in Korea (Republic of) 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 its
supply, provided that the value of those
incidental services does not exceed the value
of the product itself.
South Caucasus/Central and South Asian
(SC/CASA) state means Armenia, Azerbaijan,
Georgia, Kazakhstan, Kyrgyzstan, Pakistan,
Tajikistan, Turkmenistan, or Uzbekistan.
South Caucasus/Central and South Asian
(SC/CASA) state end product means an
article that—
(i) Is wholly the growth, product, or
manufacture of an SC/CASA state; or
(ii) In the case of an article that consists in
whole or in part of materials from another
country, has been substantially transformed
in an SC/CASA state 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
■
PO 00000
Frm 00005
Fmt 4701
Sfmt 4700
252.225–7045
[Amended]
10. Section 252.225–7045 is amended
by—
■ a. Removing the clause date ‘‘(JAN
2012)’’ and adding ‘‘(MAY 2012)’’ in its
place; and
■ b. In paragraph (a) in the definition of
‘‘Designated country’’, amending
paragraph (2) by removing ‘‘Guatemala,
Honduras, Mexico’’ and adding
‘‘Guatemala, Honduras, Korea (Republic
of), Mexico’’ in its place.
[FR Doc. 2012–11558 Filed 5–21–12; 8:45 am]
BILLING CODE 5001–06–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Part 252
RIN 0750–AH72
Defense Federal Acquisition
Regulation Supplement: New Free
Trade Agreement With Colombia
(DFARS Case 2012–D032)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Interim rule.
AGENCY:
DoD is issuing an interim rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to implement the United
States—Colombia Trade Promotion
SUMMARY:
E:\FR\FM\22MYR2.SGM
22MYR2
]]>Agencies
[Federal Register Volume 77, Number 99 (Tuesday, May 22, 2012)]
[Rules and Regulations]
[Pages 30356-30359]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-11558]
[[Page 30355]]
Vol. 77
Tuesday,
No. 99
May 22, 2012
Part II
Department of Defense
-----------------------------------------------------------------------
Defense Acquisition Regulations System
-----------------------------------------------------------------------
48 CFR Parts 204, 212, 225, et al.
Defense Federal Acquisition Regulation Supplements; Final Rules
Federal Register / Vol. 77 , No. 99 / Tuesday, May 22, 2012 / Rules
and Regulations
[[Page 30356]]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 225 and 252
RIN 0750-AH69
Defense Federal Acquisition Regulation Supplement: United States-
Korea Free Trade Agreement (DFARS Case 2012-D025)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Interim rule.
-----------------------------------------------------------------------
SUMMARY: DoD is issuing an interim rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to implement the United
States-Korea Free Trade Agreement. The Republic of Korea is already
party to the World Trade Organization Government Procurement Agreement.
DATES: Effective date: May 22, 2012.
Comment Date: Comments on the interim rule should be submitted in
writing to the address shown below on or before July 23, 2012, to be
considered in the formation of a final rule.
ADDRESSES: Submit comments identified by DFARS Case 2012-D025, using
any of the following methods:
Regulations.gov: https://www.regulations.gov. Submit
comments via the Federal eRulemaking portal by entering ``DFARS Case
2012-D025'' under the heading ``Enter keyword or ID'' and selecting
``Search.'' Select the link ``Submit a Comment'' that corresponds with
``DFARS Case 2012-D025.'' Follow the instructions provided at the
``Submit a Comment'' screen. Please include your name, company name (if
any), and ``DFARS Case 2012-D025'' on your attached document.
Email: dfars@osd.mil. Include DFARS Case 2012-D025 in the
subject line of the message.
Fax: 571-372-6094.
Mail: Defense Acquisition Regulations System, Attn: (Ms.
Amy Williams), OUSD (AT&L) DPAP/DARS, Room 3B855, 3060 Defense
Pentagon, Washington, DC 20301-3060.
Comments received generally will be posted without change to https://www.regulations.gov, including any personal information provided. To
confirm receipt of your comment(s), please check www.regulations.gov,
approximately two to three days after submission to verify posting
(except allow 30 days for posting of comments submitted by mail).
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, Defense Acquisition
Regulations System, OUSD (AT&L) DPAP/DARS, Room 3B855, 3060 Defense
Pentagon, Washington, DC 20301-3060. Telephone: 571-372-6106.
SUPPLEMENTARY INFORMATION:
I. Background
This interim rule amends DFARS part 225 and the corresponding
provisions and clauses in DFARS part 252 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)).
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 DFARS.
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, and Peru FTA
threshold for supplies and services ($202,000). Therefore, new
alternates are required for the provision and clause for acquisition of
photovoltaic devices (DFARS 252.225-7017 and 252.225-7018) and the Buy
American Act--Free Trade Agreements--Balance of Payments Program
provision and clause (DFARS 252.225-7035 and 252.225-7036) 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, 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 Balance of Payments Program--Construction Material under Trade
Agreements clause (DFARS 252.225-7045).
There are also conforming changes to the clause prescriptions at
DFARS 225.1101, Alternate A, Annual Representations and Certifications,
and DFARS 252.212-7001, Contract Terms and Conditions required to
Implement Statutes or Executive Orders Applicable to Defense
Acquisitions of Commercial Items.
A minor correction was made to paragraph (c) of DFARS 252.225-7036,
Buy American Act--Free Trade Agreements--Balance of Payments Program to
add Peruvian end products to the list of end products not covered by
the clause. The definition of ``Peruvian end products'' had been added
to paragraph (a), but was not then added in paragraph (c). This makes
paragraph (c) consistent with the trade agreement thresholds specified
in FAR 25.402(b), as already implemented in paragraph (c) of Alternate
II to DFARS 252.225-7036, as well as in the basic provision at DFARS
252.225-7035 and its Alternate II.
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.
[[Page 30357]]
IV. Regulatory Flexibility Act
DoD does not expect this rule to have a significant economic impact
on a substantial number of small entities within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 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 does not anticipate any significant
economic impact on U.S. small businesses. The Department of Defense
only applies the trade agreements to the non-defense items listed at
DFARS 225.401-70, and acquisitions that are set aside or provide other
forms of preference for small businesses are exempt. FAR 19.502-2
states that acquisitions that do not exceed $150,000 (except as
described in paragraph (1) of the definition of ``simplified
acquisition threshold'' at FAR 2.101) are automatically reserved
exclusively for small business concerns, unless the contracting officer
determines that there is not a reasonable expectation of obtaining
offers from two or more responsible small business concerns.
DoD invites comments from small business concerns and other
interested parties on the expected impact of this rule on small
entities.
DoD will also consider comments from small entities concerning the
existing regulations in subparts affected by 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 (DFARS Case 2012-D025), in
correspondence.
V. Paperwork Reduction Act
This rule affects the certification and information collection
requirements in the provisions at DFARS 252.225-7020 and 252.225-7035,
currently approved under OMB Control Number 0704-0229, titled Defense
Federal Acquisition Regulation Supplement part 225, Foreign
Acquisition, and related clauses, 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 under which category
offered goods from the Republic of Korea would be listed. The rule also
affects DFARS 252.225-7018, which is a variant of the Buy American-
trade agreements certifications already approved, which was issued as
an interim rule under DFARS Case 2011-D046 (76 FR 78858, December 20,
2011).
VI. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense that urgent and compelling reasons exist to promulgate this
interim rule without prior opportunity for public comment. This action
is necessary because the FTA with the Republic of Korea, for which the
President signed the implementing legislation into law on October 21,
2011 (Pub. L. 112-041), entered into force 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 will consider public comments received in response to this interim
rule in the formation of the final rule.
List of Subjects in 48 CFR Parts 225 and 252
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 225 and 252 are amended as follows:
0
1. The authority citation for 48 CFR parts 225 and 252 continues to
read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 225--FOREIGN ACQUISITION
225.1101 [Amended]
0
2. Section 225.1101 is amended by:
0
a. Adding paragraphs (10)(v) and (vi);
0
b. In paragraph (11)(i)(A), removing ``$77,494'' and adding
``$100,000'' in its place; and
0
c. Adding paragraph 11(i)(C).
The additions read as follows:
225.1101 Acquisition of supplies.
* * * * *
(10) * * *
(v) Use the provision with its Alternate IV when the clause at
252.225-7036 is used with its Alternate IV.
(vi) Use the provision with its Alternate V when the clause at
252.225-7036 is used with its Alternate V.
(11)(i) * * *
(C) Use the clause with its Alternate IV when the estimated value
equals or exceeds $77,494 but is less than $100,000, except if the
acquisition is of end products in support of operations in Afghanistan,
use with its Alternate V.
* * * * *
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
3. Section 252.204-7007 is amended by removing the clause date ``(MAR
2012)'' and adding ``(MAY 2012)'' in its place and revising paragraph
(d)(2)(vi) to read as follows:
252.204-7007 Alternate A, Annual Representations and Certifications.
* * * * *
(d) * * *
(2) * * *
------ (vi) 252.225-7035, Buy American Act--Free Trade Agreements--
Balance of Payments Program Certificate.
------ Use with Alternate I.
------ Use with Alternate II.
------ Use with Alternate III.
------ Use with Alternate IV.
------ Use with Alternate V.
* * * * *
0
4. Section 252.212-7001 is amended by removing the clause date ``(APR
2012)'' and adding ``(MAY 2012)'' in its place, revising paragraphs
(b)(12) and (b)(13)(i), and revising paragraph (b)(16) to read as
follows:
252.212-7001 Contract Terms and Conditions Required to Implement
Statutes or Executive Orders Applicable to Defense Acquisitions of
Commercial Items.
* * * * *
(b) * * *
(12) ------ 252.225-7017, Photovoltaic Devices (MAY 2012) (Section
846 of Pub. L. 111-383).
(13)(i) ------ 252.225-7021, Trade Agreements (MAY 2012) (19 U.S.C.
2501-2518 and 19 U.S.C. 3301 note).
* * * * *
(16)(i) ------ 252.225-7036, Buy American Act--Free Trade
Agreements--Balance of Payments Program (MAY 2012) (41 U.S.C. chapter
83 and 19 U.S.C. 3301 note).
(ii) ------ Alternate I (OCT 2011) of 252.225-7036.
(iii) ------ Alternate II (OCT 2011) of 252.225-7036.
(iv) ------ Alternate III (OCT 2011) of 252.225-7036.
(v) ------ Alternate IV (MAY 2012) of 252.225-7036.
(vi) ------ Alternate V (MAY 2012) of 252.225-7036.
* * * * *
0
5. Section 252.225-7017 is amended by--
0
a. Removing the clause date ``(MAR 2012)'' and adding ``(MAY 2012)'' in
its place;
[[Page 30358]]
0
b. In paragraph (a), in the definition of ``Designated country'',
revising paragraph (ii);
0
c. In paragraph (a), revising the definition of ``Free Trade Agreement
country'' and adding, in alphabetical order, the definition of ``Korean
photovoltaic device'';
0
d. Redesignating paragraphs (c)(3) and (c)(4) as paragraphs (c)(4) and
(c)(5), and adding newly designated paragraph (c)(3); and
0
e. In newly designated paragraph (c)(4), removing ``$77,494'' and
adding ``$100,000'' in its place.
The additions and revisions read as follows:
252.225-7017 Photovoltaic Devices.
* * * * *
(a) * * *
(ii) A Free Trade Agreement country (Australia, Bahrain, Canada,
Chile, Costa Rica, Dominican Republic, El Salvador, Guatemala,
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Peru, or
Singapore);
* * * * *
Free Trade Agreement country means Australia, Bahrain, Canada,
Chile, Costa Rica, Dominican Republic, El Salvador, Guatemala,
Honduras, Korea (Republic of), Mexico, Morocco, Nicaragua, Peru, or
Singapore.
* * * * *
Korean photovoltaic device means an article that--
(i) Is wholly manufactured in Korea; or
(ii) In the case of an article that consists in whole or in part of
materials from another country, has been substantially transformed in
Korea (Republic of) 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.
* * * * *
(c) * * *
(3) $77,494 or more but less than $100,000, then the Contractor
shall utilize under this contract only domestic photovoltaic devices,
qualifying country photovoltaic devices, or Free Trade Agreement
country photovoltaic devices (other than Bahrainian, Korean, Moroccan,
or Peruvian photovoltaic devices), unless, in its offer, it specified
utilization of other foreign photovoltaic devices in paragraph
(c)(4)(ii) of the Photovoltaic Devices--Certificate provision of the
solicitation. If the Contractor certified in its offer that it will
utilize a qualifying country photovoltaic device or a Free Trade
Agreement country photovoltaic device (other than a Bahrainian, Korean,
Moroccan, or Peruvian photovoltaic device), the Contractor shall
utilize a qualifying country photovoltaic device; a Free Trade
Agreement country photovoltaic device (other than a Bahrainian, Korean,
Moroccan, or Peruvian photovoltaic device), or, at the Contractor's
option, a domestic photovoltaic device;
* * * * *
0
6. Section 252.225-7018 is amended by--
0
a. Removing the clause date ``(MAR 2012)'' and adding ``(MAY 2012)'' in
its place;
0
b. In paragraph (a), removing ``Free Trade Agreement photovoltaic
device, least developed country photovoltaic device,'' and adding
``Free Trade Agreement photovoltaic device, Korean photovoltaic device,
least developed country photovoltaic device'' in its place;
0
c. Redesignating paragraphs (c)(4) and (c)(5) as paragraphs (c)(5) and
(c)(6), and adding newly designated paragraph (c)(4); and
0
d. In newly designated paragraph (c)(5), removing ``$77,494'' and
adding ``$100,000'' in its place.
The additions and revisions read as follows:
252.225-7018 Photovoltaic Devices--Certificate.
* * * * *
(c) * * *
(4) If $77,494 or more but less than $100,000--
---- (i) The offeror certifies that each photovoltaic device to be
utilized in performance of the contract is a domestic photovoltaic
device; a qualifying country (except Australian or Canadian)
photovoltaic device; a Free Trade Agreement country photovoltaic device
(other than a Bahrainian, Korean, Moroccan, or Peruvian photovoltaic
device) [Offeror to specify country of origin ------------]; or
---- (ii) The offered foreign photovoltaic devices (other than
those from countries listed in paragraph (c)(4)(i) of this provision)
are the product of ------------. [Offeror to specify country of origin,
if known, and provide documentation that the cost of a domestic
photovoltaic device. would be unreasonable in comparison to the cost of
the proposed foreign photovoltaic device.]
* * * * *
252.225-7021 [Amended]
0
7. Section 252.225-7021 is amended by--
0
a. Removing the clause date ``(JAN 2012)'' and adding ``(MAY 2012)'' in
its place; and
0
b. In paragraph (a), in the definition of ``Designated country'',
paragraph (ii), removing ``Guatemala, Honduras, Mexico'' and adding
``Guatemala, Honduras, Korea (Republic of), Mexico'' in its place.
0
8. Section 252.225-7035 is amended by adding Alternates IV and V to
read as follows:
252.225-7035 Buy American Act--Free Trade Agreements--Balance of
Payments Program Certificate.
* * * * *
ALTERNATE IV (MAY 2012) As prescribed in 225.1101(10)(v), add a
definition of ``Korean end product'' in paragraph (a) of the basic
provision; substitute the phrase ``Free Trade Agreement country end
products other than Bahrainian end products, Korean end products,
Moroccan end products, or Peruvian end products'' for the phrase ``Free
Trade Agreement country end products other than Bahrainian end
products, Moroccan end products, or Peruvian end products'' in
paragraphs (b)(2) and (c)(2)(ii) of the basic provision.
ALTERNATE V (MAY 2012) As prescribed in 225.1101(10)(vi),
substitute the following paragraphs (a), (b)(2), (c)(2)(i), and
(c)(2)(ii) for paragraphs (a), (b)(2), (c)(2)(i), and (c)(2)(ii) of the
basic clause:
(a) Definitions. Bahrainian end product, commercially available
off-the-shelf (COTS) item, component, domestic end product, Free Trade
Agreement country, Free Trade Agreement country end product, foreign
end product, Korean end product, Moroccan end product, Peruvian end
product, qualifying country end product, South Caucasus/Central and
South Asian (SC/CASA) state end product, and United States, as used in
this provision, have the meanings given in the Buy American Act--Free
Trade Agreements--Balance of Payments Program clause of this
solicitation.
(b)(2) For line items subject to Free Trade Agreements, will
evaluate offers of qualifying country end products, SC/CASA state end
products, or Free Trade Agreement end products other than Bahrainian
end products, Korean end products, Moroccan end products, or Peruvian
end products without regard to the restrictions of the Buy American Act
or the Balance of Payments Program.
(c)(2)(i) The offeror certifies that the following supplies are
qualifying country (except Australian or Canadian) or SC/CASA state end
products:
(Line Item Number)
(Country of Origin)
[[Page 30359]]
(ii) The offeror certifies that the following supplies are Free
Trade Agreement country end products other than Bahrainian end
products, Korean end products, Moroccan end products, or Peruvian end
products:
(Line Item Number)
(Country of Origin)
0
9. Section 252.225-7036 is amended by--
0
a. Removing the clause date ``(OCT 2011)'' and adding ``(MAY 2012)'' in
its place;
0
b. In paragraph (a) in the definition of ``Free Trade Agreement
country'', removing ``Guatemala, Honduras, Mexico,'' and adding
``Guatemala, Honduras, Korea (Republic of), Mexico'' in its place;
0
c. Revising paragraph (c); and
0
d. Adding Alternates IV and V.
The additions and revisions read as follows:
252.225-7036 Buy American Act--Free Trade Agreements--Balance of
Payments Program.
* * * * *
(c) The Contractor shall deliver under this contract only domestic
end products unless, in its offer, it specified delivery of qualifying
country end products, Free Trade Agreement country end products other
than Bahrainian end products, Moroccan end products, or Peruvian end
products, or other foreign end products in the Buy American Act--Free
Trade Agreements--Balance of Payments Program Certificate provision of
the solicitation. If the Contractor certified in its offer that it will
deliver a qualifying country end product or a Free Trade Agreement
country end product other than a Bahrainian end product, a Moroccan end
product, or a Peruvian end product, the Contractor shall deliver a
qualifying country end product, a Free Trade Agreement country end
product other than a Bahrainian end product, a Moroccan end product, or
a Peruvian end product, or, at the Contractor's option, a domestic end
product.
* * * * *
ALTERNATE IV (MAY 2012)
As prescribed in 225.1101(11)(i)(C), add the following
definition to paragraph (a) and substitute the following paragraph
(c) for paragraph (c) of the basic clause:
(a) Korean end product means an article that--
(i) Is wholly the growth, product, or manufacture of Korea; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Korea (Republic of) 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 its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.
(c) The Contractor shall deliver under this contract only
domestic end products unless, in its offer, it specified delivery of
qualifying country end products, Free Trade Agreement country end
products other than Bahrainian end products, Korean end products,
Moroccan end products, or Peruvian end products, or other foreign
end products in the Buy American Act--Free Trade Agreements--Balance
of Payments Program Certificate provision of the solicitation. If
the Contractor certified in its offer that it will deliver a
qualifying country end product or a Free Trade Agreement country end
product other than a Bahrainian end product, a Korean end product, a
Moroccan end product, or a Peruvian end product, the Contractor
shall deliver a qualifying country end product, a Free Trade
Agreement country end product other than a Bahrainian end product, a
Korean end product, a Moroccan end product, or a Peruvian end
product, or, at the Contractor's option, a domestic end product.
ALTERNATE V (MAY 2012)
As prescribed in 225.1101(11)(i)(C), add the following new
definitions to paragraph (a) and substitute the following paragraph
(c) for paragraph (c) of the basic clause:
(a) Korean end product means an article that--
(i) Is wholly the growth, product, or manufacture of Korea; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in Korea (Republic of) 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 its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.
South Caucasus/Central and South Asian (SC/CASA) state means
Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Pakistan,
Tajikistan, Turkmenistan, or Uzbekistan.
South Caucasus/Central and South Asian (SC/CASA) state end
product means an article that--
(i) Is wholly the growth, product, or manufacture of an SC/CASA
state; or
(ii) In the case of an article that consists in whole or in part
of materials from another country, has been substantially
transformed in an SC/CASA state 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 its supply,
provided that the value of those incidental services does not exceed
the value of the product itself.
(c) The Contractor shall deliver under this contract only
domestic end products unless, in its offer, it specified delivery of
qualifying country end products, SC/CASA state end products, Free
Trade Agreement country end products other than Bahrainian end
products, Korean end products, Moroccan end products, or Peruvian
end products, or other foreign end products in the Buy American
Act--Free Trade Agreements--Balance of Payments Program Certificate
provision of the solicitation. If the Contractor certified in its
offer that it will deliver a qualifying country end product, SC/CASA
state end products, or a Free Trade Agreement country end product
other than a Bahrainian end product, a Korean end product, a
Moroccan end product, or a Peruvian end product, the Contractor
shall deliver a qualifying country end product, an SC/CASA state end
product, a Free Trade Agreement country end product other than a
Bahrainian end product, a Korean end product, a Moroccan end
product, or a Peruvian end product or, at the Contractor's option, a
domestic end product.
252.225-7045 [Amended]
0
10. Section 252.225-7045 is amended by--
0
a. Removing the clause date ``(JAN 2012)'' and adding ``(MAY 2012)'' in
its place; and
0
b. In paragraph (a) in the definition of ``Designated country'',
amending paragraph (2) by removing ``Guatemala, Honduras, Mexico'' and
adding ``Guatemala, Honduras, Korea (Republic of), Mexico'' in its
place.
[FR Doc. 2012-11558 Filed 5-21-12; 8:45 am]
BILLING CODE 5001-06-P
