Federal Acquisition Regulation: United States-Mexico-Canada Agreement, 70808-70813 [2021-26094]
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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.
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*
*
*
*
*
(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
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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
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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:
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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.)
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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
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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.
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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
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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.
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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
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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.
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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.
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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.
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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.
■
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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).
■
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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
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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
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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