Federal Acquisition Regulation: United States-Mexico-Canada Agreement, 70808-70813 [2021-26094]

Download as PDF 70808 Federal Register / Vol. 86, No. 236 / Monday, December 13, 2021 / Proposed Rules (1) 1.0 Multicast Streams. A Next Gen TV station may license its guest ATSC 1.0 multicast stream(s) aired on one or more ATSC 1.0 hosts pursuant to paragraph (f) of this section. Nonsimulcast streams are not required to comply with paragraph (b) of this section. (2) 3.0 Multicast Streams. A Next Gen TV station may license its guest ATSC 3.0 multicast stream(s) aired on one or more ATSC 3.0 hosts pursuant to paragraph (f) of this section. (3) Next Gen TV stations may rely on a multicast stream they are airing via a host partner to comply with the Commission’s children’s television programming requirement in § 73.671 of this Part. Such a stream must either be carried on the same host as the Next Gen TV station’s primary stream, or on a host that serves at least 95 percent of the predicted population served by the applicant’s pre-transition 1.0 signal. ■ 3. Section 73.6029 is amended by revising paragraph (f)(5) and adding paragraph (i) to read as follows: § 73.6029 Class A television simulcasting during the ATSC 3.0 (Next Gen TV) transition. khammond on DSKJM1Z7X2PROD with PROPOSALS * * * * * (f) * * * (5) Expedited processing. An application filed in accordance with the streamlined process in paragraph (f)(3) of this section will receive expedited processing provided, for stations requesting to air an ATSC 1.0 primary signal on the facilities of a host station, that station will provide ATSC 1.0 service to at least 95 percent of the predicted population within the noise limited service contour of its original ATSC 1.0 facility. * * * * * (i) Multicast Streams. A Next Gen TV station is not required to license, under paragraph (f) of this section, a ‘‘guest’’ multicast stream that it originates and which is aired on a host station. If it chooses to do so, it and each of its licensed guest multicast streams must comply with the requirements of this section (including those otherwise applicable only to primary streams), except for paragraph (f)(5) and as otherwise provided in this paragraph. For purposes of this section, a ‘‘multicast’’ stream refers to a video programming stream other than the primary video programming stream. (1) 1.0 Multicast Streams. A Next Gen TV station may license its guest ATSC 1.0 multicast stream(s) aired on one or more ATSC 1.0 hosts pursuant to paragraph (f) of this section. Nonsimulcast streams are not required to VerDate Sep<11>2014 16:22 Dec 10, 2021 Jkt 256001 comply with paragraph (b) of this section. (2) 3.0 Multicast Streams. A Next Gen TV station may license its guest ATSC 3.0 multicast stream(s) aired on one or more ATSC 3.0 hosts pursuant to paragraph (f) of this section. (3) Next Gen TV stations may rely on a multicast stream they are airing via a host partner to comply with the Commission’s children’s television programming requirement in § 73.671 of this part. Such a stream must either be carried on the same host as the Next Gen TV station’s primary stream, or on a host that serves at least 95 percent of the predicted population served by the applicant’s pre-transition 1.0 signal. PART 74—EXPERIMENTAL RADIO, AUXILIARY, SPECIAL BROADCAST AND OTHER PROGRAM DISTRIBUTIONAL SERVICES one or more ATSC 1.0 hosts pursuant to paragraph (f) of this section. Nonsimulcast streams are not required to comply with paragraph (b) of this section. (2) 3.0 Multicast Streams. A Next Gen TV station may license its guest ATSC 3.0 multicast stream(s) aired on one or more ATSC 3.0 hosts pursuant to paragraph (f) of this section. (3) Next Gen TV stations may rely on a multicast stream they are airing via a host partner to comply with the Commission’s children’s television programming requirement in § 73.671 of this part. Such a stream must either be carried on the same host as the Next Gen TV station’s primary stream, or on a host that serves at least 95 percent of the predicted population served by the applicant’s pre-transition 1.0 signal. [FR Doc. 2021–26375 Filed 12–10–21; 8:45 am] BILLING CODE 6712–01–P 4. The authority citation for part 74 continues to read as follows: ■ Authority: 47 U.S.C. 154, 302a, 303, 307, 309, 310, 336, and 554. 5. Section 74.782 is amended by revising paragraph (g)(5) and adding paragraph (j) to read as follows: ■ § 74.782 Low power television and TV translator simulcasting during the ATSC 3.0 (Next Gen TV) transition. * * * * * (g) * * * (5) Expedited processing. An application filed in accordance with the streamlined process in paragraph (f)(3) of this section will receive expedited processing provided, for stations requesting to air an ATSC 1.0 primary signal on the facilities of a host station, that station will provide ATSC 1.0 service to at least 95 percent of the predicted population within the noise limited service contour of its original ATSC 1.0 facility. * * * * * (j) Multicast Streams. A Next Gen TV station is not required to license, under paragraph (f) of this section, a ‘‘guest’’ multicast stream that it originates and which is aired on a host station. If it chooses to do so, it and each of its licensed guest multicast streams must comply with the requirements of this section (including those otherwise applicable only to primary streams), except for paragraph (f)(5) and as otherwise provided in this paragraph. For purposes of this section, a ‘‘multicast’’ stream refers to a video programming stream other than the primary video programming stream. (1) 1.0 Multicast Streams. A Next Gen TV station may license its guest ATSC 1.0 multicast stream(s) aired on PO 00000 Frm 00054 Fmt 4702 Sfmt 4702 DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 4, 13, 18, 22, 25, 27, and 52 [FAR Case 2020–014, Docket No. FAR– 2020–0014, Sequence No. 1] RIN 9000–AO14 Federal Acquisition Regulation: United States-Mexico-Canada Agreement Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Proposed rule. AGENCY: DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to implement the United States-MexicoCanada Agreement Implementation Act. DATES: Interested parties should submit written comments to the Regulatory Secretariat Division at the address shown below on or before February 11, 2022 to be considered in the formation of the final rule. ADDRESSES: Submit comments in response to FAR Case 2020–014 to the Federal eRulemaking portal at https:// www.regulations.gov by searching for ‘‘FAR Case 2020–014’’. Select the link ‘‘Comment Now’’ that corresponds with FAR Case 2020–014. Follow the instructions provided on the ‘‘Comment Now’’ screen. Please include your name, SUMMARY: E:\FR\FM\13DEP1.SGM 13DEP1 Federal Register / Vol. 86, No. 236 / Monday, December 13, 2021 / Proposed Rules company name (if any), and ‘‘FAR Case 2020–014’’ on your attached document. If your comment cannot be submitted using https://www.regulations.gov, call or email the points of contact in the FOR FURTHER INFORMATION CONTACT section of this document for alternate instructions. Instructions: Please submit comments only and cite ‘‘FAR case 2020–014’’ in all correspondence related to this case. Comments received generally will be posted without change to https:// www.regulations.gov, including any personal and/or business confidential information provided. To confirm receipt of your comment(s), please check https://www.regulations.gov, approximately two to three days after submission to verify posting. FOR FURTHER INFORMATION CONTACT: Mr. Michael O. Jackson, Procurement Analyst, at 202–208–4949 or by email at michaelo.jackson@gsa.gov, for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202–501–4755 or GSARegSec@gsa.gov. Please cite ‘‘FAR Case 2020–014.’’ SUPPLEMENTARY INFORMATION: I. Background DoD, GSA, and NASA are issuing a proposed rule amending the FAR to implement the United States-MexicoCanada Agreement Implementation Act (Pub. L. 116–113). On June 12, 2017, the President announced his intention to commence negotiations with Canada and Mexico to modernize the North American Free Trade Agreement (NAFTA). On November 30, 2018, the Governments of the United States, Mexico, and Canada (the Parties) signed the protocol replacing NAFTA with the United States-Mexico-Canada Agreement (USMCA). On December 10, 2019, the Parties signed the protocol of amendment to the USMCA. On January 29, 2020, the President signed into law the United States-Mexico-Canada Agreement Implementation Act, through which Congress approved the USMCA. On July 1, 2020, the USMCA entered into full force. (See U.S. Trade Representative Determination published June 29, 2020, 85 FR 39037.) khammond on DSKJM1Z7X2PROD with PROPOSALS II. Discussion and Analysis A. Chapter 13 of the USMCA Chapter 13 of the USMCA sets forth certain obligations between the United States and Mexico with respect to Government procurement of goods and services, as specified in Annex 13–A of the USMCA. Chapter 13 of the USMCA applies only between Mexico and the VerDate Sep<11>2014 16:22 Dec 10, 2021 Jkt 256001 United States and does not cover Canada. Section 1–201 of Executive Order 12260 of December 31, 1980, delegates the functions of the President under sections 301 and 302 of the Trade Agreements Act of 1979 (Trade Agreements Act) (19 U.S.C. 2511–2512) to the U.S. Trade Representative. In conformity with sections 301 and 302 of the Trade Agreements Act and Executive Order 12260, and in order to carry out U.S. obligations under Chapter 13 of the USMCA, the U.S. Trade Representative has determined that: 1. Mexico is a country that has become a party to the USMCA and will provide appropriate reciprocal competitive Government procurement opportunities to United States products and suppliers of such products. In accordance with section 301(b)(1) of the Trade Agreements Act, Mexico is so designated for purposes of section 301(a) of the Trade Agreements Act. 2. With respect to eligible products of Mexico (i.e., goods and services covered by the Schedule of the United States in Annex 13–A of the USMCA) and suppliers of such products, the application of any law, regulation, procedure, or practice regarding Government procurement is waived if it would, if applied to such products and suppliers, result in treatment less favorable than accorded to: a. United States products and suppliers of such products; or b. Eligible products of another foreign country or instrumentality which is a party to the Agreement on Government Procurement referred to in section 101(d)(17) of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(17)) and suppliers of such products. With respect to Mexico, this waiver shall be applied by all entities listed in the Schedule of the United States in Annex 13–A of USMCA. 3. The designation in paragraph 1 and the waiver in paragraph 2 are subject to modification or withdrawal by the U.S. Trade Representative. B. Canada’s Status as a Designated Country Although Canada is still a designated country under the World Trade Organization Government Procurement Agreement (WTO GPA), Canada is no longer a Free Trade Agreement country, because chapter 13 of the USMCA (government procurement) applies only to the United States and Mexico. Therefore, references to Canada as a Free Trade Agreement country are deleted, including the $25,000 threshold. Mexico thresholds remain unchanged. PO 00000 Frm 00055 Fmt 4702 Sfmt 4702 70809 C. Changes to the FAR Made by This Case Part 18 • FAR 18.120, Use of patented technology under the North American Free Trade Agreement. This proposed rule would remove and reserve this section in its entirety, as waiver of NAFTA is no longer applicable. Part 22 • FAR 22.1503(b)—FAR section 22.1503 refers to the List of Products Requiring Contractor Certification as to Forced or Indentured Child Labor. Requirements of FAR subpart 22.15 do not apply to certain countries of origin in FAR 22.1503(b). Canada currently appears as such a country in paragraph (b)(1). The language on Canada is removed from FAR 22.1503(b)(1) where the anticipated value of the acquisition is $25,000 or more. Canada is added to the list of countries at FAR 22.1503(b)(3) where the anticipated value of the acquisition is $182,000. The source for the countries in paragraph (b)(3) is the definition of WTO GPA countries at FAR 25.003. • FAR 22.1505(a)—For solicitations estimated to equal or exceed $25,000, the contracting officer currently must exclude from the solicitation’s List of products any end products from countries identified at FAR 22.1503(b). The $25,000 is the free trade agreement threshold for Canada, which is no longer applicable. The proposed rule will change this to $50,000, which is the threshold for Israel. Part 25 • FAR 25.400(a)(2)(i)—The proposed rule would remove all references to the NAFTA, replacing them with the new USMCA language, including statutory references, and explanatory language concerning the USMCA Government Procurement Agreement as now applicable only to the United States and Mexico. • FAR 25.401(a)(6)—The list of exceptions to the trade agreements would include any goods and services specifically excluded under individual trade agreements. An example is given of USTR-negotiated exceptions, which usually would be found at agency regulations supplementing the FAR, as well as being listed in the annexes of each trade agreement. • FAR 25.402(b)—The proposed rule would remove references to ‘‘Canada’’ and the thresholds for Canada in the table and corresponding columns. • FAR 25.1101(b)(1)—The prescription at FAR 25.1101(b)(1)(i)(A) is adjusted for the clause at FAR E:\FR\FM\13DEP1.SGM 13DEP1 70810 Federal Register / Vol. 86, No. 236 / Monday, December 13, 2021 / Proposed Rules 52.225–3, Buy American—Free Trade Agreements—Israeli Trade Act. The $25,000 threshold for Canada is removed and replaced with the $50,000 threshold for Israel, for use when the acquisition is for supplies, or for services involving the furnishing of supplies, for use within the United States, and the acquisition value is now $50,000 or more, but is less than $182,000. The prescription for Alternate I is removed at FAR 25.1101(b)(1)(ii), as the Alternate is no longer necessary. • FAR 25.1101(b)(2)—In the prescription for FAR 52.225–4, Buy American—Free Trade Agreements— Israeli Trade Act Certificate, the Alternate I is deleted as no longer necessary. khammond on DSKJM1Z7X2PROD with PROPOSALS Part 27 • The proposed rule seeks to revise the section heading of FAR 27.204–1, Use of patented technology under the North American Free Trade Agreement, to replace NAFTA with USMCA and remove all the language covered under NAFTA at FAR 27.204–1, instead instructing contracting officers that when questions arise with regard to use of patented technology under the USMCA, the contracting officer should consult with legal counsel. In FAR 27.204–1 and 27.204–2, notes are added about the content of the USMCA. Part 52 • FAR 52.204–8(c)(1)(xxi)(A) and (B)—Annual Representations and Certifications, removes the Canadian Free Trade Act threshold of $25,000, to become the Israeli Trade Act threshold of $50,000 in paragraph (A). Paragraph (B) is being removed as it is the prescription for Alternate I of FAR 52.225–4, Buy American—Free Trade Agreements—Israeli Trade Act Certificate; that Alternate is being removed. • FAR 52.212–3, Offeror Representations and Certifications— Commercial Items (g)—This is the commercial item equivalent of FAR 52.225–4, Buy American—Free Trade Agreements—Israeli Trade Act Certificate, including its Alternate I (see below). • FAR 52.222–19(a)—Removing from the Child Labor clause the $25,000 threshold for Canada from paragraph (a)(1) and in the list of countries in paragraph (a)(3) adding ‘‘Canada’’. • FAR 52.225–3, Buy American— Free Trade Agreements—Israeli Trade Act and FAR 52.225–4, Buy American— Free Trade Agreement—Israeli Trade Act Certificate—the proposed rule would remove Alternate I, which references ‘‘Canadian end product’’ and VerDate Sep<11>2014 16:22 Dec 10, 2021 Jkt 256001 making it reserved; with conforming changes revising Alternates II and III. • FAR 52.225–5, Trade Agreements— in paragraph (2) of the definition of ‘‘Designated country’’, the proposed rule is removing Canada from the list of Free Trade Agreement countries. • FAR 52.225–11(a)(2)—Buy American—Construction Materials Under Trade Agreements, in paragraph (2) of the definition of ‘‘Designated country’’, the proposed rule is removing Canada from the list of Free Trade Agreement countries, and revising Alternate I to remove ‘‘NAFTA’’ and replacing it with ‘‘United States-MexicoCanada Agreement’’. • FAR 52.225–23(a)(2), Required Use of American Iron, Steel, and Manufactured Goods—Buy American Statute—Construction Materials Under Trade Agreements—in paragraph (2) of the definitions of ‘‘Designated country’’ and ‘‘Recovery Act designated country’’, the proposed rule is removing Canada from the list of Free Trade Agreement countries. • Conforming changes. The proposed rule is making conforming changes at FAR 4.20, FAR 13.302–5, and FAR part 25 (changing ‘‘NAFTA’’ to ‘‘USMCA’’), and in the clauses at FAR 52.212–5 and 52.213–4. III. Applicability to Contracts at or Below the Simplified Acquisition Threshold (SAT) and for Commercial Items, Including Commercially Available Off-the-Shelf (COTS) Items This proposed rule does not create any new provisions or clauses, nor does it change the applicability of any existing provisions or clauses included in solicitations and contracts valued at or below the SAT, or for commercial items, including COTS items. IV. 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 not a significant regulatory action and, therefore, was not subject to review under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. PO 00000 Frm 00056 Fmt 4702 Sfmt 4702 V. Congressional Review Act As required by the Congressional Review Act (5 U.S.C. 801–808) before an interim or final rule takes effect, DoD, GSA, and NASA will send the rule and the ‘‘Submission of Federal Rules Under the Congressional Review Act’’ form to each House of the Congress and to the Comptroller General of the United States. A major rule cannot take effect until 60 days after it is published in the Federal Register. This rulemaking is not anticipated to be a major rule under 5 U.S.C. 804. VI. Regulatory Flexibility Act DoD, GSA, and NASA do not expect this propose 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. 601–612, because although the proposed rule removes Canada as a Free Trade Agreement designated country and deletes the associated $25,000 threshold, Canada remains a WTO GPA designated country, at $182,000. The Mexico thresholds remain unchanged. However, an initial regulatory flexibility analysis (IRFA) has been performed and is summarized as follows: The Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA) are proposing to revise the Federal Acquisition Regulation (FAR) to implement the United States-Mexico-Canada Agreement Implementation Act (Pub. L. 116–113). On November 30, 2018, the Governments of the United States, Mexico, and Canada (the Parties) signed the protocol replacing NAFTA with the United States-Mexico-Canada Agreement (USMCA). On December 10, 2019, the Parties signed the protocol of amendment to the USMCA. On January 29, 2020, the President signed into law the United StatesMexico-Canada Agreement Act, through which Congress approved the USMCA. On July 1, 2020, the USMCA entered into full force. The objective of the proposed rule is to implement the USMCA Implementation Act. The proposed rule makes changes in the FAR to conform to Chapter 13 of the USMCA, which sets forth certain obligations between the United States and Mexico with respect to Government procurement of goods and services, as specified in Annex 13–A of the USMCA. Chapter 13 of the USMCA applies only between Mexico and the United States and does not cover Canada. Although Canada is still a designated country under the World Trade Organization Government Procurement Agreement, Canada is no longer a Free Trade Agreement country, because chapter 13 of the USMCA (government procurement) applies only to the United States and Mexico. Therefore, references to Canada as a Free Trade Agreement country in the FAR are deleted, including the $25,000 threshold. E:\FR\FM\13DEP1.SGM 13DEP1 Federal Register / Vol. 86, No. 236 / Monday, December 13, 2021 / Proposed Rules khammond on DSKJM1Z7X2PROD with PROPOSALS Canadian end products will still receive nondiscriminatory treatment with respect to the Buy American statute, but starting at $182,000 rather than $25,000. Mexico thresholds remain unchanged. The legal basis for the rulemaking is the United States-Mexico-Canada Agreement Implementation Act (Pub. L. 116–113). Based on fiscal year 2019 data from the Federal Procurement Data System (FPDS), 129,308 small businesses were awarded Government contracts. Based on the data analysis approved under OMB Control Number 9000–0024, Buy American, Trade Agreements, and Duty-Free Entry; impacts to small businesses are anticipated to be negligible. Alternate I of the provision, FAR 52.225–4, Buy American—Free Trade Agreements—Israeli Trade Act Certificate, which is applicable to Canada, is deleted. The Trade Agreement clause at FAR 52.225– 5, and the standard Buy American construction trade agreements clause at FAR 52.225–11, were revised to delete references to Canada as a Free Trade Agreement Country, as well as the associated $25,000 threshold. Lastly, in regard to the FAR 52.225–23, Recovery Act clause, additional construction awards are not anticipated using Recovery Act funds. This proposed rule does not include any new reporting, recordkeeping, or other compliance requirements for small businesses. The proposed rule does not impose additional information collection requirements to the paperwork burden previously approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act (44 U.S.C. 3501– 3521), Control Number 9000–0024, Buy American, Trade Agreements, and Duty-Free Entry. The proposed rule does not duplicate, overlap, or conflict with any other Federal rules. DoD, GSA, and NASA were unable to identify any alternatives to the rule that would reduce the impact on small entities and still meet the requirements of the USMCA rule. The Regulatory Secretariat Division has submitted a copy of the IRFA to the Chief Counsel for Advocacy of the Small Business Administration. A copy of the IRFA may be obtained from the Regulatory Secretariat Division. 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 this rulemaking consistent with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 610 (FAR Case 2020–014), in correspondence. VII. Paperwork Reduction Act The Paperwork Reduction Act (44 U.S.C. 3501–3521) does apply. VerDate Sep<11>2014 16:22 Dec 10, 2021 Jkt 256001 However, these changes to the FAR do not impose additional information collection requirements to the paperwork burden previously approved by the Office of Management and Budget Control Number 9000–0024, Buy American, Trade Agreements, and DutyFree Entry. List of Subjects in 48 CFR Parts 4, 13, 18, 22, 25, 27, and 52 Government procurement. Janet Fry, Director, Federal Acquisition Policy Division, Office of Governmentwide Acquisition Policy, Office of Acquisition Policy, Office of Governmentwide Policy. Therefore, DoD, GSA, and NASA propose to amend 48 CFR parts 4, 13, 18, 22, 25, 27, and 52 as set forth below: ■ 1. The authority citation for 48 CFR parts 4, 13, 18, 22, 25, 27, and 52 continues to read as follows: Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 U.S.C. 20113. PART 4—ADMINISTRATIVE AND INFORMATION MATTERS 4.1202 [Amended] 2. Amend section 4.1202 by removing from paragraph (a)(28) the phrase ‘‘Alternates I, II, and III’’ and adding ‘‘Alternates II and III’’ in its place. ■ PART 13—SIMPLIFIED ACQUISITION PROCEDURES 13.302–5 [Amended] 3. Amend section 13.302–5 by removing from paragraph (d)(3)(i) the phrase ‘‘Alternate I or’’. ■ PART 18—EMERGENCY ACQUISITIONS 18.120 ■ [Removed and Reserved] 4. Remove and reserve section 18.120. PART 22—APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS 22.1503 [Amended] 5. Amend section 22.1503 by— a. Removing paragraph (b)(1); b. Redesignating paragraphs (b)(2) through (4) as paragraphs (b)(1) through (3); and ■ c. Removing from the newly redesignated paragraph (b)(3) the phrase ‘‘Bulgaria’’ and adding the phrase ‘‘Bulgaria, Canada’’ in its place. ■ ■ ■ 22.1505 [Amended] 6. Amend section 22.1505 by removing from paragraph (a) the phrase ‘‘$25,000’’ and adding the phrase ‘‘$50,000’’ in its place. ■ PO 00000 Frm 00057 Fmt 4702 Sfmt 4702 70811 PART 25—FOREIGN ACQUISITION 25.003 [Amended] 7. Amend section 25.003 by— ■ a. Removing from the definition of ‘‘Designated country’’ in paragraph (2) the phrase ‘‘Canada,’’; and ■ b. Removing from the definition of ‘‘Free Trade Agreement country’’ the phrase ‘‘Canada,’’. ■ 8. Amend section 25.400 by revising paragraph (a)(2)(i) to read as follows: ■ 25.400 Scope of subpart. (a) * * * (2) * * * (i) USMCA (United States-MexicoCanada Agreement, as approved by Congress in the United States-MexicoCanada Agreement Implementation Act (Government Procurement Agreement applicable only to United States and Mexico) (Pub. L. 116–113) (19 U.S.C. chapter 29 (sections 4501–4732)); * * * * * ■ 9. Amend section 25.401 by— ■ a. Removing from the end of paragraph (a)(4) the word ‘‘and’’. ■ b. Removing from paragraph (a)(5) the phrase ‘‘13.501(a).’’ and adding the phrase ‘‘13.501(a); and’’ in its place; ■ c. Adding paragraph (a)(6); ■ d. In the table of paragraph (b), in the fourth column of the first row, removing the word ‘‘NAFTA’’ and adding the word ‘‘USMCA’’ in its place. The addition reads as follows: 25.401 Exceptions. (a) * * * (6) Goods and services specifically excluded under individual trade agreements, such as exceptions negotiated by the U.S. Trade Representative for particular agencies. See the agency supplementary regulations. 25.402 [Amended] 10. Amend section 25.402 in table 1 of paragraph (b) by— ■ a. Removing the word ‘‘NAFTA’’ and adding ‘‘USMCA’’ in its place; ■ b. Removing the entry for ‘‘Canada’’. ■ 25.1101 [Amended] 11. Amend section 25.1101 by— ■ a. Removing from paragraph (b)(1)(i)(A) the phrase ‘‘$25,000’’ and adding ‘‘$50,000’’ in its place; ■ b. Removing paragraph (b)(1)(ii); ■ c. Redesignating paragraphs (b)(1)(iii) and (iv) as paragraphs (b)(1)(ii) and (iii); ■ d. Removing paragraph (b)(2)(ii); and ■ e. Redesignating paragraphs (b)(2)(iii) and (iv) as paragraphs (b)(2)(ii) and (iii). ■ E:\FR\FM\13DEP1.SGM 13DEP1 70812 Federal Register / Vol. 86, No. 236 / Monday, December 13, 2021 / Proposed Rules PART 27—PATENTS, DATA, AND COPYRIGHTS 12. Revise section 27.204–1 to read as follows: ■ 27.204–1 Use of patented technology under the United States-Mexico-Canada Agreement. When questions arise with regard to use of patented technology under the United States-Mexico-Canada Agreement, the contracting officer should consult with legal counsel. Note that Article 20.6(a) of the Agreement discusses public health and pharmaceuticals. ■ 13. Amend section 27.204–2 by adding a sentence to the end of the paragraph to read as follows: 27.204–2 Use of patented technology under the General Agreement on Tariffs and Trade (GATT). Offeror Representations and Certifications—Commercial Items (DATE) * * * * * (g) * * * (2) Buy American—Free Trade Agreements—Israeli Trade Act Certificate, Alternate II. If Alternate II 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 Israeli end products as defined in the clause of this solicitation entitled ‘‘Buy American— Free Trade Agreements—Israeli Trade Act’’: Israeli End Products: Line Item No. * * * Article 20.40 of the United States-Mexico-Canada Agreement preserves parties’ rights under Article 31. PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES 14. Amend section 52.204–8 by revising the date of the provision, and paragraph (c)(1)(xxi) to read as follows: ■ 52.204–8 Annual Representations and Certifications. * * * * * Annual Representations and Certifications (DATE) khammond on DSKJM1Z7X2PROD with PROPOSALS * * * * * (c)(1) * * * (xxi) 52.225–4, Buy American—Free Trade Agreements—Israeli Trade Act Certificate. (Basic, Alternates II and III.) This provision applies to solicitations containing the clause at 52.225–3. (A) If the acquisition value is less than $50,000, the basic provision applies. (B) If the acquisition value is $50,000 or more but is less than $83,099, the provision with its Alternate II applies. (C) If the acquisition value is $83,099 or more but is less than $100,000, the provision with its Alternate III applies. * * * * * ■ 15. Amend section 52.212–3 by— ■ a. Revising the date of the provision; ■ b. Removing paragraph (g)(2); ■ c. Redesignating paragraphs (g)(3) through (5) as paragraphs (g)(2) through (4); and ■ d. Revising the newly redesignated paragraph (g)(2). The revisions read as follows: 52.212–3 Offeror Representations and Certifications—Commercial Items. * * * VerDate Sep<11>2014 * * 16:22 Dec 10, 2021 Jkt 256001 a. Revising the date of the clause; and b. Removing from paragraph (b)(1)(ii) the date ‘‘(JAN 2020)’’ and adding ‘‘(DATE)’’ in its place. The revision reads as follows: ■ ■ 52.213–4 Terms and Conditions— Simplified Acquisitions (Other Than Commercial Items). * * * * * Terms and Conditions—Simplified Acquisitions (Other Than Commercial Items) (DATE) * * * * * 18. Amend section 52.222–19 by— a. Revising the date of the clause; b. Removing paragraph (a)(1); c. Redesignating paragraphs (a)(2) through (4) as paragraphs (a)(1) through (3); and ■ d. Removing from the newly redesignated paragraph (a)(3) the phrase ‘‘Bulgaria’’ and adding the phrase ‘‘Bulgaria, Canada’’ in its place. The revision reads as follows: ■ ■ ■ ■ 52.222–19 Child Labor—Cooperation with Authorities and Remedies. * [List as necessary] * * * * * ■ 16. Amend section 52.212–5 by— ■ a. Revising the date of the clause; ■ b. Removing from paragraph (b)(28) the date ‘‘(JAN 2020)’’ and adding ‘‘(DATE)’’ in its place; ■ c. Revising paragraphs (b)(49)(i) and (ii); ■ d. Removing from paragraph (b)(49)(iii) the date ‘‘(JAN 2021)’’ and adding ‘‘(DATE)’’ in its place; and ■ e. Removing from paragraph (b)(50) the date ‘‘(OCT 2019)’’ and adding ‘‘(DATE)’’ in its place. The revisions read as follows: 52.212–5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Items. * * * * * * * * * * (b) * * * ll(49)(i) 52.225–3, Buy American— Free Trade Agreements—Israeli Trade Act (DATE) (19 U.S.C. 3301 note, 19 U.S.C. 2112 note, 19 U.S.C. 3805 note, 19 U.S.C. 4001 note, 19 U.S.C. chapter 29 (sections 4501–4732), Public Law 103–182, 108–77, 108–78, 108–286, 108–302, 109–53, 109–169, 109–283, 110–138, 112–41, 112–42, and 112–43. ll(ii) Alternate I [RESERVED]. * * * * * ■ 17. Amend section 52.213–4 by— PO 00000 Frm 00058 Fmt 4702 Sfmt 4702 * * * Child Labor—Cooperation With Authorities and Remedies (DATE) * * * * * 19. Amend section 52.225–3 by— a. Revising the date of the clause; b. In paragraph (a), in the definition of ‘‘Free Trade Agreement country’’ removing ‘‘Canada,’’; ■ c. Revising Alternates I and II; and ■ d. In Alternate III: ■ i. Revising the date of the Alternate; and ■ ii Removing from the introductory text ‘‘25.1101(b)(1)(iv)’’ and adding ‘‘25.1101(b)(1)(iii)’’ in its place. The revisions read as follows: ■ ■ ■ 52.225–3 Buy American—Free Trade Agreements—Israeli Trade Act. * Contract Terms and Conditions Required to Implement Statutes or Executive Orders—Commercial Items (DATE) * * * * * Buy American—Free Trade Agreements—Israeli Trade Act (DATE) * * * * * Alternate I [Reserved] Alternate II (DATE). As prescribed in 25.1101(b)(1)(ii), substitute the following paragraph (c) for paragraph (c) of the basic clause: (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 statute is waived for an end product that is a COTS item (See 12.505(a)(1)). In addition, the Contracting Officer has determined that the Israeli Trade Act E:\FR\FM\13DEP1.SGM 13DEP1 Federal Register / Vol. 86, No. 236 / Monday, December 13, 2021 / Proposed Rules applies to this acquisition. Unless otherwise specified, this trade agreement applies 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—Free Trade Agreements— Israeli Trade Act.’’ If the Contractor specified in its offer that the Contractor would supply an Israeli end product, then the Contractor shall supply an Israeli end product or, at the Contractor’s option, a domestic end product. Alternate III (DATE). * * * * * * * * ■ 20. Amend section 52.225–4 by— ■ a. Revising Alternates I and II; and ■ b. In Alternate III: ■ i. Revising the date of the Alternate; and ■ ii Removing from the introductory text ‘‘25.1101(b)(2)(iv)’’ and adding ‘‘25.1101(b)(2)(iii)’’ in its place. The revisions read as follows: 52.225–4 Buy American—Free Trade Agreement—Israeli Trade Act Certificate. * * * * khammond on DSKJM1Z7X2PROD with PROPOSALS 16:22 Dec 10, 2021 Jkt 256001 52.225–11 Buy American—Construction Materials Under Trade Agreements. * * * * Buy American—Construction Materials Under Trade Agreements (DATE) [List as necessary] Alternate III (DATE). * * * * * * * * ■ 21. 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) the phase ‘‘Canada,’’. The revision reads as follows: * * * * * * * * * 22. Amend section 52.225–11 by— a. Revising the date of the clause; b. In paragraph (a), in the definition of ‘‘Designated country’’, removing from paragraph (2) the phrase ‘‘Canada,’’; ■ ■ ■ PO 00000 Frm 00059 Fmt 4702 Sfmt 9990 * * * * Alternate I (DATE). * * * * * * * * ■ 23. Amend section 52.225–23 by— ■ a. Revising the date of the clause; and ■ b. In paragraph (a), in the definitions of ‘‘Designated country’’ and ‘‘Recovery Act designated country’’, removing from paragraph (2) the phrase ‘‘Canada,’’. The revisions read as follows: 52.225–23 Required Use of American Iron, Steel, and Manufactured Goods—Buy American Statute—Construction Materials Under Trade Agreements. * Trade Agreements. Trade Agreements (DATE) * * * * Alternate I [Reserved] Alternate II (DATE). As prescribed in 25.1101(b)(2)(ii), substitute the ■ * * * c. Revising the date of Alternate I; and d. Removing from paragraph (b) the phrase ‘‘NAFTA’’ and adding ‘‘United States-Mexico-Canada Agreement’’ in its place. The revisions read as follows: ■ * Line Item No. 52.225–5 * Buy American—Free Trade Agreements—Israeli Trade Act Certificate (Feb 2021) VerDate Sep<11>2014 following paragraph (b) for paragraph (b) of the basic provision: (b) The offeror certifies that the following supplies are Israeli end products as defined in the clause of this solicitation entitled ‘‘Buy American— Free Trade Agreements—Israeli Trade Act—Balance of Payments Program’’: Israeli End Products: 70813 * * * * Required Use of American Iron, Steel, and Manufactured Goods—Buy American Statute—Construction Materials Under Trade Agreements (DATE) * * * * * [FR Doc. 2021–26094 Filed 12–10–21; 8:45 am] BILLING CODE 6820–EP–P E:\FR\FM\13DEP1.SGM 13DEP1

Agencies

[Federal Register Volume 86, Number 236 (Monday, December 13, 2021)]
[Proposed Rules]
[Pages 70808-70813]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-26094]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 4, 13, 18, 22, 25, 27, and 52

[FAR Case 2020-014, Docket No. FAR-2020-0014, Sequence No. 1]
RIN 9000-AO14


Federal Acquisition Regulation: United States-Mexico-Canada 
Agreement

AGENCY: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: DoD, GSA, and NASA are proposing to amend the Federal 
Acquisition Regulation (FAR) to implement the United States-Mexico-
Canada Agreement Implementation Act.

DATES: Interested parties should submit written comments to the 
Regulatory Secretariat Division at the address shown below on or before 
February 11, 2022 to be considered in the formation of the final rule.

ADDRESSES: Submit comments in response to FAR Case 2020-014 to the 
Federal eRulemaking portal at https://www.regulations.gov by searching 
for ``FAR Case 2020-014''. Select the link ``Comment Now'' that 
corresponds with FAR Case 2020-014. Follow the instructions provided on 
the ``Comment Now'' screen. Please include your name,

[[Page 70809]]

company name (if any), and ``FAR Case 2020-014'' on your attached 
document. If your comment cannot be submitted using https://www.regulations.gov, call or email the points of contact in the FOR 
FURTHER INFORMATION CONTACT section of this document for alternate 
instructions.
    Instructions: Please submit comments only and cite ``FAR case 2020-
014'' in all correspondence related to this case. Comments received 
generally will be posted without change to https://www.regulations.gov, 
including any personal and/or business confidential information 
provided. To confirm receipt of your comment(s), please check https://www.regulations.gov, approximately two to three days after submission 
to verify posting.

FOR FURTHER INFORMATION CONTACT: Mr. Michael O. Jackson, Procurement 
Analyst, at 202-208-4949 or by email at mi[email protected], for 
clarification of content. For information pertaining to status or 
publication schedules, contact the Regulatory Secretariat Division at 
202-501-4755 or [email protected]. Please cite ``FAR Case 2020-014.''

SUPPLEMENTARY INFORMATION:

I. Background

    DoD, GSA, and NASA are issuing a proposed rule amending the FAR to 
implement the United States-Mexico-Canada Agreement Implementation Act 
(Pub. L. 116-113). On June 12, 2017, the President announced his 
intention to commence negotiations with Canada and Mexico to modernize 
the North American Free Trade Agreement (NAFTA). On November 30, 2018, 
the Governments of the United States, Mexico, and Canada (the Parties) 
signed the protocol replacing NAFTA with the United States-Mexico-
Canada Agreement (USMCA). On December 10, 2019, the Parties signed the 
protocol of amendment to the USMCA. On January 29, 2020, the President 
signed into law the United States-Mexico-Canada Agreement 
Implementation Act, through which Congress approved the USMCA. On July 
1, 2020, the USMCA entered into full force. (See U.S. Trade 
Representative Determination published June 29, 2020, 85 FR 39037.)

II. Discussion and Analysis

A. Chapter 13 of the USMCA

    Chapter 13 of the USMCA sets forth certain obligations between the 
United States and Mexico with respect to Government procurement of 
goods and services, as specified in Annex 13-A of the USMCA. Chapter 13 
of the USMCA applies only between Mexico and the United States and does 
not cover Canada.
    Section 1-201 of Executive Order 12260 of December 31, 1980, 
delegates the functions of the President under sections 301 and 302 of 
the Trade Agreements Act of 1979 (Trade Agreements Act) (19 U.S.C. 
2511-2512) to the U.S. Trade Representative.
    In conformity with sections 301 and 302 of the Trade Agreements Act 
and Executive Order 12260, and in order to carry out U.S. obligations 
under Chapter 13 of the USMCA, the U.S. Trade Representative has 
determined that:
    1. Mexico is a country that has become a party to the USMCA and 
will provide appropriate reciprocal competitive Government procurement 
opportunities to United States products and suppliers of such products. 
In accordance with section 301(b)(1) of the Trade Agreements Act, 
Mexico is so designated for purposes of section 301(a) of the Trade 
Agreements Act.
    2. With respect to eligible products of Mexico (i.e., goods and 
services covered by the Schedule of the United States in Annex 13-A of 
the USMCA) and suppliers of such products, the application of any law, 
regulation, procedure, or practice regarding Government procurement is 
waived if it would, if applied to such products and suppliers, result 
in treatment less favorable than accorded to:
    a. United States products and suppliers of such products; or
    b. Eligible products of another foreign country or instrumentality 
which is a party to the Agreement on Government Procurement referred to 
in section 101(d)(17) of the Uruguay Round Agreements Act (19 U.S.C. 
3511(d)(17)) and suppliers of such products.
    With respect to Mexico, this waiver shall be applied by all 
entities listed in the Schedule of the United States in Annex 13-A of 
USMCA.
    3. The designation in paragraph 1 and the waiver in paragraph 2 are 
subject to modification or withdrawal by the U.S. Trade Representative.

B. Canada's Status as a Designated Country

    Although Canada is still a designated country under the World Trade 
Organization Government Procurement Agreement (WTO GPA), Canada is no 
longer a Free Trade Agreement country, because chapter 13 of the USMCA 
(government procurement) applies only to the United States and Mexico. 
Therefore, references to Canada as a Free Trade Agreement country are 
deleted, including the $25,000 threshold. Mexico thresholds remain 
unchanged.

C. Changes to the FAR Made by This Case

Part 18
     FAR 18.120, Use of patented technology under the North 
American Free Trade Agreement. This proposed rule would remove and 
reserve this section in its entirety, as waiver of NAFTA is no longer 
applicable.
Part 22
     FAR 22.1503(b)--FAR section 22.1503 refers to the List of 
Products Requiring Contractor Certification as to Forced or Indentured 
Child Labor. Requirements of FAR subpart 22.15 do not apply to certain 
countries of origin in FAR 22.1503(b). Canada currently appears as such 
a country in paragraph (b)(1). The language on Canada is removed from 
FAR 22.1503(b)(1) where the anticipated value of the acquisition is 
$25,000 or more. Canada is added to the list of countries at FAR 
22.1503(b)(3) where the anticipated value of the acquisition is 
$182,000. The source for the countries in paragraph (b)(3) is the 
definition of WTO GPA countries at FAR 25.003.
     FAR 22.1505(a)--For solicitations estimated to equal or 
exceed $25,000, the contracting officer currently must exclude from the 
solicitation's List of products any end products from countries 
identified at FAR 22.1503(b). The $25,000 is the free trade agreement 
threshold for Canada, which is no longer applicable. The proposed rule 
will change this to $50,000, which is the threshold for Israel.
Part 25
     FAR 25.400(a)(2)(i)--The proposed rule would remove all 
references to the NAFTA, replacing them with the new USMCA language, 
including statutory references, and explanatory language concerning the 
USMCA Government Procurement Agreement as now applicable only to the 
United States and Mexico.
     FAR 25.401(a)(6)--The list of exceptions to the trade 
agreements would include any goods and services specifically excluded 
under individual trade agreements. An example is given of USTR-
negotiated exceptions, which usually would be found at agency 
regulations supplementing the FAR, as well as being listed in the 
annexes of each trade agreement.
     FAR 25.402(b)--The proposed rule would remove references 
to ``Canada'' and the thresholds for Canada in the table and 
corresponding columns.
     FAR 25.1101(b)(1)--The prescription at FAR 
25.1101(b)(1)(i)(A) is adjusted for the clause at FAR

[[Page 70810]]

52.225-3, Buy American--Free Trade Agreements--Israeli Trade Act. The 
$25,000 threshold for Canada is removed and replaced with the $50,000 
threshold for Israel, for use when the acquisition is for supplies, or 
for services involving the furnishing of supplies, for use within the 
United States, and the acquisition value is now $50,000 or more, but is 
less than $182,000. The prescription for Alternate I is removed at FAR 
25.1101(b)(1)(ii), as the Alternate is no longer necessary.
     FAR 25.1101(b)(2)--In the prescription for FAR 52.225-4, 
Buy American--Free Trade Agreements--Israeli Trade Act Certificate, the 
Alternate I is deleted as no longer necessary.
Part 27
     The proposed rule seeks to revise the section heading of 
FAR 27.204-1, Use of patented technology under the North American Free 
Trade Agreement, to replace NAFTA with USMCA and remove all the 
language covered under NAFTA at FAR 27.204-1, instead instructing 
contracting officers that when questions arise with regard to use of 
patented technology under the USMCA, the contracting officer should 
consult with legal counsel. In FAR 27.204-1 and 27.204-2, notes are 
added about the content of the USMCA.
Part 52
     FAR 52.204-8(c)(1)(xxi)(A) and (B)--Annual Representations 
and Certifications, removes the Canadian Free Trade Act threshold of 
$25,000, to become the Israeli Trade Act threshold of $50,000 in 
paragraph (A). Paragraph (B) is being removed as it is the prescription 
for Alternate I of FAR 52.225-4, Buy American--Free Trade Agreements--
Israeli Trade Act Certificate; that Alternate is being removed.
     FAR 52.212-3, Offeror Representations and Certifications--
Commercial Items (g)--This is the commercial item equivalent of FAR 
52.225-4, Buy American--Free Trade Agreements--Israeli Trade Act 
Certificate, including its Alternate I (see below).
     FAR 52.222-19(a)--Removing from the Child Labor clause the 
$25,000 threshold for Canada from paragraph (a)(1) and in the list of 
countries in paragraph (a)(3) adding ``Canada''.
     FAR 52.225-3, Buy American--Free Trade Agreements--Israeli 
Trade Act and FAR 52.225-4, Buy American--Free Trade Agreement--Israeli 
Trade Act Certificate--the proposed rule would remove Alternate I, 
which references ``Canadian end product'' and making it reserved; with 
conforming changes revising Alternates II and III.
     FAR 52.225-5, Trade Agreements--in paragraph (2) of the 
definition of ``Designated country'', the proposed rule is removing 
Canada from the list of Free Trade Agreement countries.
     FAR 52.225-11(a)(2)--Buy American--Construction Materials 
Under Trade Agreements, in paragraph (2) of the definition of 
``Designated country'', the proposed rule is removing Canada from the 
list of Free Trade Agreement countries, and revising Alternate I to 
remove ``NAFTA'' and replacing it with ``United States-Mexico-Canada 
Agreement''.
     FAR 52.225-23(a)(2), Required Use of American Iron, Steel, 
and Manufactured Goods--Buy American Statute--Construction Materials 
Under Trade Agreements--in paragraph (2) of the definitions of 
``Designated country'' and ``Recovery Act designated country'', the 
proposed rule is removing Canada from the list of Free Trade Agreement 
countries.
     Conforming changes. The proposed rule is making conforming 
changes at FAR 4.20, FAR 13.302-5, and FAR part 25 (changing ``NAFTA'' 
to ``USMCA''), and in the clauses at FAR 52.212-5 and 52.213-4.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold (SAT) and for Commercial Items, Including Commercially 
Available Off-the-Shelf (COTS) Items

    This proposed rule does not create any new provisions or clauses, 
nor does it change the applicability of any existing provisions or 
clauses included in solicitations and contracts valued at or below the 
SAT, or for commercial items, including COTS items.

IV. 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 not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993.

V. Congressional Review Act

    As required by the Congressional Review Act (5 U.S.C. 801-808) 
before an interim or final rule takes effect, DoD, GSA, and NASA will 
send the rule and the ``Submission of Federal Rules Under the 
Congressional Review Act'' form to each House of the Congress and to 
the Comptroller General of the United States. A major rule cannot take 
effect until 60 days after it is published in the Federal Register. 
This rulemaking is not anticipated to be a major rule under 5 U.S.C. 
804.

VI. Regulatory Flexibility Act

    DoD, GSA, and NASA do not expect this propose 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. 601-612, 
because although the proposed rule removes Canada as a Free Trade 
Agreement designated country and deletes the associated $25,000 
threshold, Canada remains a WTO GPA designated country, at $182,000. 
The Mexico thresholds remain unchanged. However, an initial regulatory 
flexibility analysis (IRFA) has been performed and is summarized as 
follows:

    The Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA) are 
proposing to revise the Federal Acquisition Regulation (FAR) to 
implement the United States-Mexico-Canada Agreement Implementation 
Act (Pub. L. 116-113). On November 30, 2018, the Governments of the 
United States, Mexico, and Canada (the Parties) signed the protocol 
replacing NAFTA with the United States-Mexico-Canada Agreement 
(USMCA). On December 10, 2019, the Parties signed the protocol of 
amendment to the USMCA. On January 29, 2020, the President signed 
into law the United States-Mexico-Canada Agreement Act, through 
which Congress approved the USMCA. On July 1, 2020, the USMCA 
entered into full force.
    The objective of the proposed rule is to implement the USMCA 
Implementation Act. The proposed rule makes changes in the FAR to 
conform to Chapter 13 of the USMCA, which sets forth certain 
obligations between the United States and Mexico with respect to 
Government procurement of goods and services, as specified in Annex 
13-A of the USMCA. Chapter 13 of the USMCA applies only between 
Mexico and the United States and does not cover Canada. Although 
Canada is still a designated country under the World Trade 
Organization Government Procurement Agreement, Canada is no longer a 
Free Trade Agreement country, because chapter 13 of the USMCA 
(government procurement) applies only to the United States and 
Mexico. Therefore, references to Canada as a Free Trade Agreement 
country in the FAR are deleted, including the $25,000 threshold.

[[Page 70811]]

    Canadian end products will still receive nondiscriminatory 
treatment with respect to the Buy American statute, but starting at 
$182,000 rather than $25,000.
    Mexico thresholds remain unchanged.
    The legal basis for the rulemaking is the United States-Mexico-
Canada Agreement Implementation Act (Pub. L. 116-113).
    Based on fiscal year 2019 data from the Federal Procurement Data 
System (FPDS), 129,308 small businesses were awarded Government 
contracts. Based on the data analysis approved under OMB Control 
Number 9000-0024, Buy American, Trade Agreements, and Duty-Free 
Entry; impacts to small businesses are anticipated to be negligible. 
Alternate I of the provision, FAR 52.225-4, Buy American--Free Trade 
Agreements--Israeli Trade Act Certificate, which is applicable to 
Canada, is deleted. The Trade Agreement clause at FAR 52.225-5, and 
the standard Buy American construction trade agreements clause at 
FAR 52.225-11, were revised to delete references to Canada as a Free 
Trade Agreement Country, as well as the associated $25,000 
threshold. Lastly, in regard to the FAR 52.225-23, Recovery Act 
clause, additional construction awards are not anticipated using 
Recovery Act funds.
    This proposed rule does not include any new reporting, 
recordkeeping, or other compliance requirements for small 
businesses. The proposed rule does not impose additional information 
collection requirements to the paperwork burden previously approved 
by the Office of Management and Budget (OMB) under the Paperwork 
Reduction Act (44 U.S.C. 3501-3521), Control Number 9000-0024, Buy 
American, Trade Agreements, and Duty-Free Entry.
    The proposed rule does not duplicate, overlap, or conflict with 
any other Federal rules.
    DoD, GSA, and NASA were unable to identify any alternatives to 
the rule that would reduce the impact on small entities and still 
meet the requirements of the USMCA rule.

    The Regulatory Secretariat Division has submitted a copy of the 
IRFA to the Chief Counsel for Advocacy of the Small Business 
Administration. A copy of the IRFA may be obtained from the Regulatory 
Secretariat Division. 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 this 
rulemaking consistent with 5 U.S.C. 610. Interested parties must submit 
such comments separately and should cite 5 U.S.C. 610 (FAR Case 2020-
014), in correspondence.

VII. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. 3501-3521) does apply. 
However, these changes to the FAR do not impose additional information 
collection requirements to the paperwork burden previously approved by 
the Office of Management and Budget Control Number 9000-0024, Buy 
American, Trade Agreements, and Duty-Free Entry.

List of Subjects in 48 CFR Parts 4, 13, 18, 22, 25, 27, and 52

    Government procurement.

Janet Fry,
Director, Federal Acquisition Policy Division, Office of Governmentwide 
Acquisition Policy, Office of Acquisition Policy, Office of 
Governmentwide Policy.

    Therefore, DoD, GSA, and NASA propose to amend 48 CFR parts 4, 13, 
18, 22, 25, 27, and 52 as set forth below:

0
1. The authority citation for 48 CFR parts 4, 13, 18, 22, 25, 27, and 
52 continues to read as follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 
U.S.C. 20113.

PART 4--ADMINISTRATIVE AND INFORMATION MATTERS


4.1202   [Amended]

0
2. Amend section 4.1202 by removing from paragraph (a)(28) the phrase 
``Alternates I, II, and III'' and adding ``Alternates II and III'' in 
its place.

PART 13--SIMPLIFIED ACQUISITION PROCEDURES


13.302-5   [Amended]

0
3. Amend section 13.302-5 by removing from paragraph (d)(3)(i) the 
phrase ``Alternate I or''.

PART 18--EMERGENCY ACQUISITIONS


18.120   [Removed and Reserved]

0
4. Remove and reserve section 18.120.

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS


22.1503   [Amended]

0
5. Amend section 22.1503 by--
0
a. Removing paragraph (b)(1);
0
b. Redesignating paragraphs (b)(2) through (4) as paragraphs (b)(1) 
through (3); and
0
c. Removing from the newly redesignated paragraph (b)(3) the phrase 
``Bulgaria'' and adding the phrase ``Bulgaria, Canada'' in its place.


22.1505   [Amended]

0
6. Amend section 22.1505 by removing from paragraph (a) the phrase 
``$25,000'' and adding the phrase ``$50,000'' in its place.

PART 25--FOREIGN ACQUISITION


25.003   [Amended]

0
7. Amend section 25.003 by--
0
a. Removing from the definition of ``Designated country'' in paragraph 
(2) the phrase ``Canada,''; and
0
b. Removing from the definition of ``Free Trade Agreement country'' the 
phrase ``Canada,''.
0
8. Amend section 25.400 by revising paragraph (a)(2)(i) to read as 
follows:


25.400   Scope of subpart.

    (a) * * *
    (2) * * *
    (i) USMCA (United States-Mexico-Canada Agreement, as approved by 
Congress in the United States-Mexico-Canada Agreement Implementation 
Act (Government Procurement Agreement applicable only to United States 
and Mexico) (Pub. L. 116-113) (19 U.S.C. chapter 29 (sections 4501-
4732));
* * * * *
0
9. Amend section 25.401 by--
0
a. Removing from the end of paragraph (a)(4) the word ``and''.
0
b. Removing from paragraph (a)(5) the phrase ``13.501(a).'' and adding 
the phrase ``13.501(a); and'' in its place;
0
c. Adding paragraph (a)(6);
0
d. In the table of paragraph (b), in the fourth column of the first 
row, removing the word ``NAFTA'' and adding the word ``USMCA'' in its 
place.
    The addition reads as follows:


25.401   Exceptions.

    (a) * * *
    (6) Goods and services specifically excluded under individual trade 
agreements, such as exceptions negotiated by the U.S. Trade 
Representative for particular agencies. See the agency supplementary 
regulations.


25.402   [Amended]

0
10. Amend section 25.402 in table 1 of paragraph (b) by--
0
a. Removing the word ``NAFTA'' and adding ``USMCA'' in its place;
0
b. Removing the entry for ``Canada''.


25.1101   [Amended]

0
11. Amend section 25.1101 by--
0
a. Removing from paragraph (b)(1)(i)(A) the phrase ``$25,000'' and 
adding ``$50,000'' in its place;
0
b. Removing paragraph (b)(1)(ii);
0
c. Redesignating paragraphs (b)(1)(iii) and (iv) as paragraphs 
(b)(1)(ii) and (iii);
0
d. Removing paragraph (b)(2)(ii); and
0
e. Redesignating paragraphs (b)(2)(iii) and (iv) as paragraphs 
(b)(2)(ii) and (iii).

[[Page 70812]]

PART 27--PATENTS, DATA, AND COPYRIGHTS

0
12. Revise section 27.204-1 to read as follows:


27.204-1   Use of patented technology under the United States-Mexico-
Canada Agreement.

    When questions arise with regard to use of patented technology 
under the United States-Mexico-Canada Agreement, the contracting 
officer should consult with legal counsel. Note that Article 20.6(a) of 
the Agreement discusses public health and pharmaceuticals.
0
13. Amend section 27.204-2 by adding a sentence to the end of the 
paragraph to read as follows:


27.204-2   Use of patented technology under the General Agreement on 
Tariffs and Trade (GATT).

    * * * Article 20.40 of the United States-Mexico-Canada Agreement 
preserves parties' rights under Article 31.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
14. Amend section 52.204-8 by revising the date of the provision, and 
paragraph (c)(1)(xxi) to read as follows:


52.204-8   Annual Representations and Certifications.

* * * * *

Annual Representations and Certifications (DATE)

* * * * *
    (c)(1) * * *
    (xxi) 52.225-4, Buy American--Free Trade Agreements--Israeli Trade 
Act Certificate. (Basic, Alternates II and III.) This provision applies 
to solicitations containing the clause at 52.225-3.
    (A) If the acquisition value is less than $50,000, the basic 
provision applies.
    (B) If the acquisition value is $50,000 or more but is less than 
$83,099, the provision with its Alternate II applies.
    (C) If the acquisition value is $83,099 or more but is less than 
$100,000, the provision with its Alternate III applies.
* * * * *
0
15. Amend section 52.212-3 by--
0
a. Revising the date of the provision;
0
b. Removing paragraph (g)(2);
0
c. Redesignating paragraphs (g)(3) through (5) as paragraphs (g)(2) 
through (4); and
0
d. Revising the newly redesignated paragraph (g)(2).
    The revisions read as follows:


52.212-3   Offeror Representations and Certifications--Commercial 
Items.

* * * * *

Offeror Representations and Certifications--Commercial Items (DATE)

* * * * *
    (g) * * *
    (2) Buy American--Free Trade Agreements--Israeli Trade Act 
Certificate, Alternate II. If Alternate II 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 
Israeli end products as defined in the clause of this solicitation 
entitled ``Buy American--Free Trade Agreements--Israeli Trade Act'':
    Israeli End Products:

------------------------------------------------------------------------
             Line Item No.
------------------------------------------------------------------------
 
------------------------------------------------------------------------
 
------------------------------------------------------------------------
 
------------------------------------------------------------------------
 
------------------------------------------------------------------------

    [List as necessary]
* * * * *
0
16. Amend section 52.212-5 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (b)(28) the date ``(JAN 2020)'' and adding 
``(DATE)'' in its place;
0
c. Revising paragraphs (b)(49)(i) and (ii);
0
d. Removing from paragraph (b)(49)(iii) the date ``(JAN 2021)'' and 
adding ``(DATE)'' in its place; and
0
e. Removing from paragraph (b)(50) the date ``(OCT 2019)'' and adding 
``(DATE)'' in its place.
    The revisions 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 (DATE)

* * * * *
    (b) * * *
    __(49)(i) 52.225-3, Buy American--Free Trade Agreements--Israeli 
Trade Act (DATE) (19 U.S.C. 3301 note, 19 U.S.C. 2112 note, 19 U.S.C. 
3805 note, 19 U.S.C. 4001 note, 19 U.S.C. chapter 29 (sections 4501-
4732), Public Law 103-182, 108-77, 108-78, 108-286, 108-302, 109-53, 
109-169, 109-283, 110-138, 112-41, 112-42, and 112-43.
    __(ii) Alternate I [RESERVED].
* * * * *
0
17. Amend section 52.213-4 by--
0
a. Revising the date of the clause; and
0
b. Removing from paragraph (b)(1)(ii) the date ``(JAN 2020)'' and 
adding ``(DATE)'' in its place.
    The revision reads as follows:


52.213-4   Terms and Conditions--Simplified Acquisitions (Other Than 
Commercial Items).

* * * * *

Terms and Conditions--Simplified Acquisitions (Other Than Commercial 
Items) (DATE)

* * * * *
0
18. Amend section 52.222-19 by--
0
a. Revising the date of the clause;
0
b. Removing paragraph (a)(1);
0
c. Redesignating paragraphs (a)(2) through (4) as paragraphs (a)(1) 
through (3); and
0
d. Removing from the newly redesignated paragraph (a)(3) the phrase 
``Bulgaria'' and adding the phrase ``Bulgaria, Canada'' in its place.
    The revision reads as follows:


52.222-19   Child Labor--Cooperation with Authorities and Remedies.

* * * * *

Child Labor--Cooperation With Authorities and Remedies (DATE)

* * * * *
0
19. Amend section 52.225-3 by--
0
a. Revising the date of the clause;
0
b. In paragraph (a), in the definition of ``Free Trade Agreement 
country'' removing ``Canada,'';
0
c. Revising Alternates I and II; and
0
d. In Alternate III:
0
i. Revising the date of the Alternate; and
0
ii Removing from the introductory text ``25.1101(b)(1)(iv)'' and adding 
``25.1101(b)(1)(iii)'' in its place.
    The revisions read as follows:


52.225-3   Buy American--Free Trade Agreements--Israeli Trade Act.

* * * * *

Buy American--Free Trade Agreements--Israeli Trade Act (DATE)

* * * * *
    Alternate I [Reserved]
    Alternate II (DATE). As prescribed in 25.1101(b)(1)(ii), substitute 
the following paragraph (c) for paragraph (c) of the basic clause:
    (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 statute is waived for an end product that is a 
COTS item (See 12.505(a)(1)). In addition, the Contracting Officer has 
determined that the Israeli Trade Act

[[Page 70813]]

applies to this acquisition. Unless otherwise specified, this trade 
agreement applies 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--Free Trade 
Agreements--Israeli Trade Act.'' If the Contractor specified in its 
offer that the Contractor would supply an Israeli end product, then the 
Contractor shall supply an Israeli end product or, at the Contractor's 
option, a domestic end product.
    Alternate III (DATE). * * *
* * * * *
0
20. Amend section 52.225-4 by--
0
a. Revising Alternates I and II; and
0
b. In Alternate III:
0
i. Revising the date of the Alternate; and
0
ii Removing from the introductory text ``25.1101(b)(2)(iv)'' and adding 
``25.1101(b)(2)(iii)'' in its place.
    The revisions read as follows:


52.225-4   Buy American--Free Trade Agreement--Israeli Trade Act 
Certificate.

* * * * *

Buy American--Free Trade Agreements--Israeli Trade Act Certificate (Feb 
2021)

* * * * *
    Alternate I [Reserved]
    Alternate II (DATE). As prescribed in 25.1101(b)(2)(ii), substitute 
the following paragraph (b) for paragraph (b) of the basic provision:
    (b) The offeror certifies that the following supplies are Israeli 
end products as defined in the clause of this solicitation entitled 
``Buy American--Free Trade Agreements--Israeli Trade Act--Balance of 
Payments Program'':
    Israeli End Products:

------------------------------------------------------------------------
             Line Item No.
------------------------------------------------------------------------
 
------------------------------------------------------------------------
 
------------------------------------------------------------------------
 
------------------------------------------------------------------------
 
------------------------------------------------------------------------

    [List as necessary]
    Alternate III (DATE). * * *
* * * * *
0
21. 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) the phase ``Canada,''.
    The revision reads as follows:


52.225-5   Trade Agreements.

* * * * *

Trade Agreements (DATE)

* * * * *
0
22. Amend section 52.225-11 by--
0
a. Revising the date of the clause;
0
b. In paragraph (a), in the definition of ``Designated country'', 
removing from paragraph (2) the phrase ``Canada,'';
0
c. Revising the date of Alternate I; and
0
d. Removing from paragraph (b) the phrase ``NAFTA'' and adding ``United 
States-Mexico-Canada Agreement'' in its place.
    The revisions read as follows:


52.225-11   Buy American--Construction Materials Under Trade 
Agreements.

* * * * *

Buy American--Construction Materials Under Trade Agreements (DATE)

* * * * *
    Alternate I (DATE). * * *
* * * * *
0
23. Amend section 52.225-23 by--
0
a. Revising the date of the clause; and
0
b. In paragraph (a), in the definitions of ``Designated country'' and 
``Recovery Act designated country'', removing from paragraph (2) the 
phrase ``Canada,''.
    The revisions read as follows:


52.225-23   Required Use of American Iron, Steel, and Manufactured 
Goods--Buy American Statute--Construction Materials Under Trade 
Agreements.

* * * * *

Required Use of American Iron, Steel, and Manufactured Goods--Buy 
American Statute--Construction Materials Under Trade Agreements (DATE)

* * * * *
[FR Doc. 2021-26094 Filed 12-10-21; 8:45 am]
BILLING CODE 6820-EP-P


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