Federal Acquisition Regulation; Free Trade Agreement (FTA)-Panama, 37695-37696 [2013-14618]
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Federal Register / Vol. 78, No. 120 / Friday, June 21, 2013 / Rules and Regulations
25.004
■
[Removed]
for supplies and services for most of the
FTAs ($77,494), and equals the Bahrain,
Morocco, Oman, and Peru FTA
thresholds for supplies and services
($202,000). The excluded services for
the Panama FTA are the same as for the
Bahrain FTA, Dominican Republic—
Central American FTA, Chile FTA,
Colombia FTA, NAFTA, Oman FTA,
and Peru FTA.
3. Remove section 25.004.
[FR Doc. 2013–14617 Filed 6–20–13; 8:45 am]
BILLING CODE 6820–EP–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
II. Discussion and Analysis
The Civilian Agency Acquisition
Council and the Defense Acquisition
Regulations Council (the Councils)
reviewed the comments in the
development of the final rule. A
discussion of the comments is provided
as follows:
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 25 and 52
[FAC 2005–67; FAR Case 2012–027; Item
IX; Docket 2012–0027, Sequence 1]
RIN 9000–AM43
Federal Acquisition Regulation; Free
Trade Agreement (FTA)-Panama
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
AGENCY:
DoD, GSA, and NASA have
adopted as final, without change, an
interim rule amending the Federal
Acquisition Regulation (FAR) to
implement the United States-Panama
Trade Promotion Agreement. This Trade
Promotion Agreement is a free trade
agreement that provides for mutually
non-discriminatory treatment of eligible
products and services from Panama.
DATES: Effective Date: June 21, 2013.
FOR FURTHER INFORMATION CONTACT: Ms.
Cecelia L. Davis, Procurement Analyst,
at 202–219–0202, for clarification of
content. For information pertaining to
status or publication schedules, contact
the Regulatory Secretariat at 202–501–
4755. Please cite FAC 2005–67, FAR
Case 2012–027.
SUPPLEMENTARY INFORMATION:
TKELLEY on DSK3SPTVN1PROD with RULES2
SUMMARY:
I. Background
DoD, GSA, and NASA published an
interim rule in the Federal Register at
77 FR 69723, on November 20, 2012, to
implement the United States-Panama
Trade Promotion Agreement. The
comment period closed on January 22,
2013. Two respondents submitted
comments on the interim rule.
The interim rule added Panama to the
definition of ‘‘Free Trade Agreement
country’’ in multiple locations in the
FAR. The Panama FTA covers
acquisitions of supplies and services
equal to or exceeding $202,000. The
threshold for the Panama FTA is
$7,777,000 for construction contracts.
The Panama FTA threshold for supplies
and services is higher than the threshold
VerDate Mar<15>2010
18:42 Jun 20, 2013
Jkt 229001
A. Summary of Significant Changes
The Councils have adopted the
interim rule as final without change.
B. Analysis of Public Comments
1. Need for Separate Defense Federal
Acquisition Regulation Supplement
(DFARS) Rule
Comment: One respondent
commented that they were concerned
about the necessity of the interim rule,
under Executive Orders 12866 and
13563, for a separate, redundant DFARS
rule for the Free Trade Agreement.
Response: Implementation of trade
agreements in the FAR is necessary for
broad government-wide application of
the trade agreements. DoD needs its
unique provisions and clauses to cover
Buy American and trade agreements
because of unique requirements. One of
the most significant reasons is the need
to address the products of qualifying
countries (those countries with which
DoD has a Reciprocal Defense
Procurement Memorandum of
Understanding or other International
Agreement). In addition, the Oman FTA
and the Israeli Trade Agreement do not
apply to DoD acquisitions. There are
also statutory and policy determinations
that impact DoD acquisitions of the
products of Iraq and Afghanistan and
other countries in the region (South
Caucasus and Central and South Asia).
DoD also continues to implement the
Balance of Payments Program, applying
the principles of the Buy American
statute to acquisitions of goods for use
outside the United States. Therefore,
DoD has never been able to rely on
promulgation of Free Trade Agreements
solely within the FAR.
2. Information Collection Requirement
Comment: One respondent was
further concerned that the information
collection requirement is not negligible
as characterized by the DFARS interim
PO 00000
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Fmt 4701
Sfmt 4700
37695
rule. According to the respondent, the
DFARS requirement will require costly
duplicate reporting in order to maintain
compliance and is therefore not
negligible.
Response: The Federal Register
preamble for the FAR and DFARS rules
did not state that the information
collection requirement relating to Free
Trade Agreements was negligible. The
statement was that the change caused by
adding Panama as a Free Trade
Agreement country is negligible. There
are approved burdens for the FAR Buy
American and trade provisions under
OMB clearance numbers 9000–0025,
9000–0130, 9000–0136, and 9000–0141.
There are also burden hours approved
for DoD acquisitions subject to Buy
American or trade agreements under
OMB clearance number 0704–0229. The
DFARS requirement does not cause
duplicate reporting, because no
solicitation should include both the
FAR and the DFARS Buy American
and/or trade agreements provision. The
DFARS provisions are used in lieu of
the FAR provisions.
3. Access Through Canal and Security
for Cargo
Comment: One respondent
commented that we should work with
other companies for joint economic
development projects and, as to
Panama, make certain that the
agreements provide that we will have
continued access through the canal and
the necessary security for our cargo.
Response: The Council takes no
position on this comment because it is
outside the scope of this case, which
was limited to implementing the United
States-Panama Trade Promotion
Agreement. The Office of the United
States Trade Representative negotiates
the treaties, which are then
implemented in law by Congress.
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
E:\FR\FM\21JNR2.SGM
21JNR2
37696
Federal Register / Vol. 78, No. 120 / Friday, June 21, 2013 / Rules and Regulations
rule is not a major rule under 5 U.S.C.
804.
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 137; and 51 U.S.C. 20113.
IV. Regulatory Flexibility Act
[FR Doc. 2013–14618 Filed 6–20–13; 8:45 am]
BILLING CODE 6820–EP–P
The Department of Defense, the
General Services Administration, and
the National Aeronautics and Space
Administration certify that this final
rule will not have a significant
economic impact on a substantial
number of small entities within the
meaning of the Regulatory Flexibility
Act, 5 U.S.C. 601, et seq., because
although the rule now opens up
Government procurement to the goods
and services of Panama, 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 DFARS
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.
V. Paperwork Reduction Act
The 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 the OMB Control
Numbers 9000–0136, titled: Commercial
Item Acquisition; 9000–0130, titled: Buy
American Act-Free Trade Agreements–
Israeli Trade Act Certificate; 9000–0025,
titled: Trade Agreements Certificate; and
9000–0141, titled: Buy AmericanConstruction, 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 Panama
would be listed under.
List of Subjects in 48 CFR Parts 25 and
52
Government procurement.
TKELLEY on DSK3SPTVN1PROD with RULES2
Dated: June 13, 2013.
William Clark,
Acting Director, Office of Governmentwide
Acquisition Policy, Office of Acquisition
Policy, Office of Governmentwide Policy.
Accordingly, the interim rule
amending 48 CFR parts 25 and 52,
which was published in the Federal
Register at 77 FR 69723, on November
20, 2012, is adopted as a final rule
without change.
VerDate Mar<15>2010
18:42 Jun 20, 2013
Jkt 229001
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Part 31
[FAC 2005–67; FAR Case 2011–019; Item
X; Docket 2011–0019, Sequence 1]
RIN 9000–AM23
Federal Acquisition Regulation;
Updated Postretirement Benefit (PRB)
References
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Final rule.
AGENCY:
DoD, GSA and NASA are
issuing a final rule amending the
Federal Acquisition Regulation (FAR) to
remove references to specific paragraphs
of an accounting standard that were
deleted in the Financial Accounting
Standards Board’s (FASB’s) Accounting
Standards Codification (ASC) of
Generally Accepted Accounting
Principles (GAAP). The references no
longer exist in the authoritative GAAP
(the ASC). This final rule replaces the
current GAAP references in the FAR
with explicit criteria that generally
replicate the substance of the formerly
referenced GAAP methodology so that
the substance of the FAR does not
change as a result of this final rule.
DATES: Effective Date: July 22, 2013.
FOR FURTHER INFORMATION CONTACT: Mr.
Edward N. Chambers, Procurement
Analyst, at 202–501–3221 for
clarification of content. For information
pertaining to status or publication
schedules, contact the Regulatory
Secretariat at 202–501–4755. Please cite
FAC 2005–67, FAR Case 2011–019.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
Interim Rule Adopted as Final Without
Change
■
DEPARTMENT OF DEFENSE
DoD, GSA, and NASA published a
proposed rule in the Federal Register at
77 FR 29305 on May 17, 2012, to replace
the obsolete references to paragraphs
110, 112, and 113 of Financial
Accounting Standard (FAS) 106
(provisions of GAAP that no longer
exist) in FAR 31.205–6(o)(2)(iii)(A)(1)
with explicit criteria that generally
PO 00000
Frm 00030
Fmt 4701
Sfmt 4700
replicate the GAAP methodology
detailed in the deleted paragraphs. This
revision is intended to allow a general
continuation for FAR purposes (for PRB
costs for Government contract cost
accounting) of the now-obsolete GAAP
delayed recognition method for
contractors that move from a pay-asyou-go method of accounting to an
accrual basis of accounting.
In June of 2009, the FASB announced,
in its Statement Number 168, that
effective for financial statements issued
for interim and annual periods ending
after September 15, 2009, the ASC
would become the source of
authoritative U.S. GAAP recognized by
the FASB to be applied by
nongovernmental entities. The FASB
stated that this codification supersedes
existing references in U.S. GAAP.
The now-superseded GAAP
provisions in FAR 31.205–
6(o)(2)(iii)(A)(1) referenced the
description of ‘‘transition obligation’’ in
paragraph 110 of FAS 106 and the
‘‘delayed recognition methodology’’ in
paragraphs 112 and 113, also of FAS
106.
These references to FAS 106 in the
cost principle were added in FAR Case
91–42, published in the Federal
Register at 56 FR 41738 on August 22,
1991. At the time, the Civilian Agency
Acquisition Council and the Defense
Acquisition Regulations Council
(Councils) decided not to allow
contractors to claim the entire
‘‘transition obligation’’ associated with
their initial application of FAS 106 as
an allowable cost in accordance with
the ‘‘immediate recognition’’ procedure
in (the now-superseded) paragraph 111
of FAS 106. (The transition obligation
associated with initial application of
FAS 106 is referred to hereafter as the
‘‘initial application transition
obligation.’’) Therefore, the Councils
disallowed costs for the amortization of
the initial application transition
obligation in excess of the amount
amortized using the delayed recognition
method procedure in (the nowsuperseded) paragraphs 112 and 113 of
FAS 106.
As a result of the FASB
announcement that the ASC is now the
source of the authoritative U.S. GAAP,
the Councils note that the references to
paragraphs 111, 112, and 113,
respectively, of FAS 106 (for the
immediate and delayed recognition
procedures for the initial application
transition obligation), are no longer
valid because FAS 106 no longer exists
in the authoritative GAAP (the ASC).
When the FASB recodified FAS 106 into
the ASC, paragraphs 111 through 114
were not included because public
E:\FR\FM\21JNR2.SGM
21JNR2
]]>Agencies
[Federal Register Volume 78, Number 120 (Friday, June 21, 2013)]
[Rules and Regulations]
[Pages 37695-37696]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-14618]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 25 and 52
[FAC 2005-67; FAR Case 2012-027; Item IX; Docket 2012-0027, Sequence 1]
RIN 9000-AM43
Federal Acquisition Regulation; Free Trade Agreement (FTA)-Panama
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: DoD, GSA, and NASA have adopted as final, without change, an
interim rule amending the Federal Acquisition Regulation (FAR) to
implement the United States-Panama Trade Promotion Agreement. This
Trade Promotion Agreement is a free trade agreement that provides for
mutually non-discriminatory treatment of eligible products and services
from Panama.
DATES: Effective Date: June 21, 2013.
FOR FURTHER INFORMATION CONTACT: Ms. Cecelia L. Davis, Procurement
Analyst, at 202-219-0202, for clarification of content. For information
pertaining to status or publication schedules, contact the Regulatory
Secretariat at 202-501-4755. Please cite FAC 2005-67, FAR Case 2012-
027.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA published an interim rule in the Federal
Register at 77 FR 69723, on November 20, 2012, to implement the United
States-Panama Trade Promotion Agreement. The comment period closed on
January 22, 2013. Two respondents submitted comments on the interim
rule.
The interim rule added Panama to the definition of ``Free Trade
Agreement country'' in multiple locations in the FAR. The Panama FTA
covers acquisitions of supplies and services equal to or exceeding
$202,000. The threshold for the Panama FTA is $7,777,000 for
construction contracts. The Panama FTA threshold for supplies and
services is higher than the threshold for supplies and services for
most of the FTAs ($77,494), and equals the Bahrain, Morocco, Oman, and
Peru FTA thresholds for supplies and services ($202,000). The excluded
services for the Panama FTA are the same as for the Bahrain FTA,
Dominican Republic--Central American FTA, Chile FTA, Colombia FTA,
NAFTA, Oman FTA, and Peru FTA.
II. Discussion and Analysis
The Civilian Agency Acquisition Council and the Defense Acquisition
Regulations Council (the Councils) reviewed the comments in the
development of the final rule. A discussion of the comments is provided
as follows:
A. Summary of Significant Changes
The Councils have adopted the interim rule as final without change.
B. Analysis of Public Comments
1. Need for Separate Defense Federal Acquisition Regulation Supplement
(DFARS) Rule
Comment: One respondent commented that they were concerned about
the necessity of the interim rule, under Executive Orders 12866 and
13563, for a separate, redundant DFARS rule for the Free Trade
Agreement.
Response: Implementation of trade agreements in the FAR is
necessary for broad government-wide application of the trade
agreements. DoD needs its unique provisions and clauses to cover Buy
American and trade agreements because of unique requirements. One of
the most significant reasons is the need to address the products of
qualifying countries (those countries with which DoD has a Reciprocal
Defense Procurement Memorandum of Understanding or other International
Agreement). In addition, the Oman FTA and the Israeli Trade Agreement
do not apply to DoD acquisitions. There are also statutory and policy
determinations that impact DoD acquisitions of the products of Iraq and
Afghanistan and other countries in the region (South Caucasus and
Central and South Asia). DoD also continues to implement the Balance of
Payments Program, applying the principles of the Buy American statute
to acquisitions of goods for use outside the United States. Therefore,
DoD has never been able to rely on promulgation of Free Trade
Agreements solely within the FAR.
2. Information Collection Requirement
Comment: One respondent was further concerned that the information
collection requirement is not negligible as characterized by the DFARS
interim rule. According to the respondent, the DFARS requirement will
require costly duplicate reporting in order to maintain compliance and
is therefore not negligible.
Response: The Federal Register preamble for the FAR and DFARS rules
did not state that the information collection requirement relating to
Free Trade Agreements was negligible. The statement was that the change
caused by adding Panama as a Free Trade Agreement country is
negligible. There are approved burdens for the FAR Buy American and
trade provisions under OMB clearance numbers 9000-0025, 9000-0130,
9000-0136, and 9000-0141. There are also burden hours approved for DoD
acquisitions subject to Buy American or trade agreements under OMB
clearance number 0704-0229. The DFARS requirement does not cause
duplicate reporting, because no solicitation should include both the
FAR and the DFARS Buy American and/or trade agreements provision. The
DFARS provisions are used in lieu of the FAR provisions.
3. Access Through Canal and Security for Cargo
Comment: One respondent commented that we should work with other
companies for joint economic development projects and, as to Panama,
make certain that the agreements provide that we will have continued
access through the canal and the necessary security for our cargo.
Response: The Council takes no position on this comment because it
is outside the scope of this case, which was limited to implementing
the United States-Panama Trade Promotion Agreement. The Office of the
United States Trade Representative negotiates the treaties, which are
then implemented in law by Congress.
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
[[Page 37696]]
rule is not a major rule under 5 U.S.C. 804.
IV. Regulatory Flexibility Act
The Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration certify that this
final rule will not have a significant economic impact on a substantial
number of small entities within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., because although the rule now
opens up Government procurement to the goods and services of Panama,
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 DFARS 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.
V. Paperwork Reduction Act
The 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 the OMB Control Numbers 9000-0136,
titled: Commercial Item Acquisition; 9000-0130, titled: Buy American
Act-Free Trade Agreements-Israeli Trade Act Certificate; 9000-0025,
titled: Trade Agreements Certificate; and 9000-0141, titled: Buy
American-Construction, 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 Panama would be listed under.
List of Subjects in 48 CFR Parts 25 and 52
Government procurement.
Dated: June 13, 2013.
William Clark,
Acting Director, Office of Governmentwide Acquisition Policy, Office of
Acquisition Policy, Office of Governmentwide Policy.
Interim Rule Adopted as Final Without Change
0
Accordingly, the interim rule amending 48 CFR parts 25 and 52, which
was published in the Federal Register at 77 FR 69723, on November 20,
2012, is adopted as a final rule without change.
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51
U.S.C. 20113.
[FR Doc. 2013-14618 Filed 6-20-13; 8:45 am]
BILLING CODE 6820-EP-P
