Defense Federal Acquisition Regulation Supplement: United States-Mexico-Canada Agreement (DFARS Case 2020-D032), 11002-11009 [2022-04009]
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11002
Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Proposed Rules
Executive Orders 12866 and 13563
E.O. 12866, Regulatory Planning and
Review, and E.O. 13563, Improving
Regulation and Regulatory Review,
direct Federal 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)
for all significant regulatory actions. A
regulatory impact analysis (RIA) must
be prepared for major rules with
economically significant effects ($100
million or more in any one year). Based
on our analysis, we believe the
proposed rulemaking does not
constitute a significant or economically
significant regulatory action.
Federal mandate that may result in the
expenditure by State, local, and tribal
organizations, in the aggregate, or by the
private sector, of $100,000,000 or more
(adjusted annually for inflation with
base year of 1995) in any one year.’’ The
current inflation-adjusted statutory
threshold is approximately $156 million
based on the Bureau of Labor Statistics
inflation calculator. This rule will not
result in a one-year expenditure that
would meet or exceed that amount.
Executive Order 13132
Executive Order 13132, Federalism,
requires Federal agencies to consult
with State and local government
officials in the development of
regulatory policies and with federalism
implications. We have reviewed the
proposed rule as required under the
Order and have determined that it will
not have a significant potential negative
impact on States, in the relationship
between the national government and
the States, or on the distribution of
power and responsibilities among the
various levels of government does not
have any federalism implications. The
Secretary asserts that this proposed rule
will not have effect on the States or on
the distribution of power and
responsibilities among the various
levels of government.
List of Subjects in 45 CFR Part 3
Regulatory Flexibility Act
The Regulatory Flexibility Act (5
U.S.C. 601–612) requires Federal
agencies to analyze regulatory options
that would minimize any significant
impact of the rule on small entities. For
the purpose of this analysis, small
entities include small business concerns
as defined by the Small Business
Administration (SBA), usually
businesses with fewer than 500
employees. The Secretary asserts that
the proposed rule will not create a
significant economic impact on a
substantial number of small entities,
and therefore a regulatory flexibility
analysis, is not required.
Unfunded Mandates Act of 1995
Section 202(a) of the Unfunded
Mandates Reform Act of 1995 requires
Federal agencies to prepare a written
statement which includes an assessment
of anticipated costs and benefits before
proposing ‘‘any rule that includes any
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Paperwork Reduction Act
This proposed rule does not contain
any information collection requirements
which are subject to Office of
Management and Budget (OMB)
approval under the Paperwork
Reduction Act of 1995 (44 U.S.C.
chapter 35).
Conduct, Federal buildings and
facilities, Government property, Traffic
regulations, Firearms.
For reasons presented in the
preamble, it is proposed to amend title
45 of the Code of Federal Regulations by
revising Part 3, as set forth below.
PART 3—CONDUCT OF PERSONS
AND TRAFFIC ON THE NATIONAL
INSITUTES OF HEALTH FEDERAL
ENCLAVE
1. The authority citation for part 3
continues to read as follows:
■
Authority: 40 U.S.C. 318–318d. 486;
Delegation of Authority, 33 FR 604.
§ 3.4
[Amended]
2. Amend § 3.4 by removing the last
sentence of the paragraph.
■ 3. Amend § 3.42 by revising the last
sentence in paragraph (b) and paragraph
(f) to read as follows:
■
§ 3.42
Restricted activities.
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(b) * * * The use of a service animal
by a person with a disability to assist
that person is authorized.
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(f) Smoking. Except as part of an
approved medical research protocol, a
person may not smoke on the enclave.
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■ 4. Amend § 3.61 by revising paragraph
(a) to read as follows:
§ 3.61
Penalties.
(a) A person found guilty of violating
any provision of the regulations in this
part is subject to a fine or imprisonment
of not more than thirty days or both, for
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each violation (U.S. Pub. L. 107–296,
Homeland Security Act of 2002).
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Xavier Becerra,
Secretary, Department of Health and Human
Services.
[FR Doc. 2022–02859 Filed 2–25–22; 8:45 am]
BILLING CODE 4140–01–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 212, 225, and 252
[Docket DARS–2022–0003]
RIN 0750–AL18
Defense Federal Acquisition
Regulation Supplement: United StatesMexico-Canada Agreement (DFARS
Case 2020–D032)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Proposed rule.
AGENCY:
DoD is proposing to amend
the Defense Federal Acquisition
Regulation Supplement (DFARS) to
implement the United States-MexicoCanada Agreement Implementation Act.
DATES: Comments on the proposed rule
should be submitted in writing to the
address shown below on or before May
27, 2022, to be considered in the
formation of a final rule.
ADDRESSES: Submit comments
identified by DFARS Case 2020–D032,
using any of the following methods:
Æ Federal eRulemaking Portal:
https://www.regulations.gov. Search for
‘‘DFARS Case 2020–D032.’’ Select
‘‘Comment’’ and follow the instructions
to submit a comment. Please include
‘‘DFARS Case 2020–D032’’ on any
attached documents.
Æ Email: osd.dfars@mail.mil. Include
DFARS Case 2020–D032 in the subject
line of the message.
Comments received generally will be
posted without change to https://
www.regulations.gov, including any
personal information provided. To
confirm receipt of your comment(s),
please check https://
www.regulations.gov, approximately
two to three days after submission to
verify posting.
FOR FURTHER INFORMATION CONTACT: Ms.
Kimberly Bass, telephone 571–372–
6174.
SUMMARY:
SUPPLEMENTARY INFORMATION:
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Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Proposed Rules
I. Background
DoD is issuing a proposed rule to
amend the DFARS 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 the North
American Free Trade Agreement
(NAFTA) with the United StatesMexico-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 effect.
II. Discussion and Analysis
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A. Chapter 13 of the USMCA
The USMCA supersedes the NAFTA.
Chapter 13 (Government Procurement)
of the USMCA applies only to the
United States and Mexico. Therefore,
Canada is no longer a Free Trade
Agreement country, although Canada is
still a designated country under the
World Trade Organization Government
Procurement Agreement (WTO GPA).
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.
This proposed rule is required to meet
the United States trade obligations to
Mexico and remove any trade benefits
that no longer should accrue to Canada.
Therefore, all references in the DFARS
to Canada as a Free Trade Agreement
country are revised to delete Canada
and its associated Free Trade Agreement
threshold of $25,000. The new
minimum Free Trade Agreement
threshold is now $92,319. Mexico
thresholds remain unchanged.
B. Chapter 20 of the USMCA
Chapter 20 of the USMCA addresses
intellectual property rights. The
requirements of Federal Acquisition
Regulation (FAR) 27.204–1, Patented
technology under the NAFTA, and the
associated emergency acquisition
flexibility at FAR 18.120 are no longer
applicable or authorized. FAR case
2020–014, United States-Mexico-Canada
Agreement, is currently in process to
address required changes to the FAR to
implement the USMCA. DoD
contracting officers should consult with
legal counsel concerning questions that
may arise with regard to the use of
patented technology under the USMCA.
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Any potential impacts with regard to the
USMCA to DFARS part 218, Emergency
Acquisitions, and DFARS part 227,
Patents, Data, and Copyrights, will be
addressed with further rulemaking.
C. Implementation of the USMCA in the
DFARS
Part 212
The proposed rule deletes all
references to 19 U.S.C. 3301 note
associated with the implementation of
NAFTA in DFARS 212.301.
Part 225
The $25,000 Free Trade Agreement
threshold for Canada is no longer
applicable. The proposed rule deletes
all references to the $25,000 threshold
in its entirety in the clause prescriptions
at DFARS 225.1101, Acquisition of
supplies.
Part 252
All references to Free Trade
Agreement countries are revised to
delete Canada and remove the $25,000
threshold, replacing it with the Free
Trade Agreement minimum threshold of
$92,319. Contracting officers will be
required to use the revised provisions
and clauses as prescribed that reflect the
USMCA requirements. Proposed
revisions are as follows:
DFARS 252.225–7013, Duty-Free
Entry. Revises the definition of ‘‘eligible
product’’ to delete the reference to
Canadian end products or devices.
DFARS 252.225–7017, Photovoltaic
Devices, and DFARS 252.225–7018,
Photovoltaic Devices—Certificate.
Removes the definition of ‘‘Canadian
photovoltaic device’’ as it no longer
applies in both the clause and
provision. Deletes Canada as a Free
Trade Agreement country from the
definition of ‘‘designated country’’ and
from the definition of ‘‘Free Trade
Agreement country’’ in DFARS
252.225–7017. Conforming changes
made to remove the associated $25,000
threshold for Canada, replacing it with
the Free Trade Agreement minimum
threshold of $92,319 in both the clause
and provision.
DFARS 252.225–7021, Trade
Agreements. In the basic clause and in
alternate II, removes Canada as a Free
Trade Agreement country from the
definition of ‘‘designated country’’.
Editorial change made to redesignate
paragraph numbers in paragraph (a)
definitions to conform to current
drafting conventions.
DFARS 252.225–7035, Buy
American—Free Trade Agreements—
Balance of Payments Program
Certificate. In the basic provision and
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alternates I, II, III, IV, and V, removes all
references to Canadian end products
and the ‘‘Canadian end product’’
definition in alternates I and III with
conforming changes.
DFARS 252.225–7036, Buy
American—Free Trade Agreements—
Balance of Payments Program. In the
basic clause and alternates I, II, III, IV,
and V, removes Canada from the
definition of ‘‘Free Trade Agreement
country’’ and removes the definition for
‘‘Canadian end product’’ from alternates
I and II, with conforming changes.
Editorial changes made to redesignate
paragraph numbers in paragraph (a)
definitions to conform to current
drafting conventions.
DFARS 252.225–7045, Balance of
Payments Program—Construction
Material Under Trade Agreements. In
the basic clause and alternates I, II, and
III, removes references to Canada in the
‘‘designated country’’ definition as a
‘‘Free Trade Agreement country’’;
removes ‘‘NAFTA’’ and replaces it with
references to ‘‘USMCA’’ in alternates I
and III in accordance with the
implementation of the Balance of
Payments Program. Editorial changes
made to redesignate paragraph numbers
in paragraph (a) definitions to conform
to current drafting conventions.
III. Applicability to Contracts at or
Below the Simplified Acquisition
Threshold (SAT), for Commercial
Products Including Commercially
Available Off-the-Shelf (COTS) Items,
and for Commercial Services
This rule amends the clauses at
DFARS 252.225–7013, Duty-Free Entry;
DFARS 252.225–7017, Photovoltaic
Devices; DFARS 252.225–7021, Trade
Agreements (Basic and Alternate II);
DFARS 252.225–7036, Buy American—
Free Trade Agreements—Balance of
Payments Program (Basic and Alternates
I (with the prescription), II, III (with the
prescription), IV, V); 252.225–7045,
Balance of Payments Program—
Construction Material Under Trade
Agreements (Basic and Alternates I, II,
and III); and provisions at DFARS
252.225–7018 Photovoltaic Devices—
Certificate; 252.225–7035 Buy
American—Free Trade Agreements—
Balance of Payments Program Certificate
(Basic and Alternate I, II, III (with the
prescription). This rule does not impose
any new requirements on contracts at or
below the simplified acquisition
threshold, for commercial products
including commercially available offthe-shelf items, or for commercial
services.
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Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Proposed Rules
IV. Expected Impact of the Rule
The rule implements the United
States-Mexico-Canada Agreement
Implementation Act. The USMCA
supersedes the NAFTA. Canada is still
a designated country under the World
Trade Organization Government
Procurement Agreement; however,
Canada is no longer a Free Trade
Agreement country, because chapter 13
(Government Procurement) of the
USMCA applies only to the United
States and Mexico. References to
Canada as a Free Trade Agreement
country in the DFARS are deleted,
including the $25,000 threshold.
Canadian end products will still receive
nondiscriminatory treatment with
respect to the Buy American statute but
starting at $183,000 rather than $25,000.
Impacts are anticipated to be negligible,
since Canada remains a WTO GPA
designated country, and a qualifying
country, with a threshold of $183,000.
The Mexico thresholds remain
unchanged.
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V. 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.
VI. 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
will submit a copy of the interim or
final rule with the form, Submission of
Federal Rules Under the Congressional
Review Act, to the U.S. Senate, the
House of Representatives, and the
Comptroller General of the United
States. A major rule under the
Congressional Review Act cannot take
effect until 60 days after it is published
in the Federal Register. This rule is not
anticipated to be a major rule under 5
U.S.C. 804.
VII. Regulatory Flexibility Act
DoD does not expect this proposed
rule to have a significant economic
impact on a substantial number of small
entities within the meaning of the
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Regulatory Flexibility Act, 5 U.S.C. 601,
et seq. Nevertheless, an initial
regulatory flexibility analysis has been
performed consistent with 5 U.S.C. 603
and summarized as follows:
The proposed rule implements 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 Implementation Act, through
which Congress approved the USMCA.
On July 1, 2020, the USMCA entered
into effect.
The objective of this rule is to
implement the USMCA Implementation
Act. The proposed rule includes
changes in the Defense Federal
Acquisition Regulation Supplement
(DFARS) 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 (WTO GPA), Canada is no
longer a Free Trade Agreement country,
because chapter 13 of the USMCA
applies only to the United States and
Mexico. Therefore, references to Canada
as a Free Trade Agreement country in
the DFARS are deleted, including the
$25,000 threshold. Canadian end
products will still receive
nondiscriminatory treatment with
respect to the Buy American statute but
starting at $183,000 rather than the
threshold of $25,000. Mexico thresholds
remain unchanged.
The proposed rule removes all
references to the NAFTA, replacing
them with the new USMCA language,
including statutory references. All
references to Canadian end products or
Canadian photovoltaic devices also are
removed.
The legal basis for the rule is Public
Law 116–113.
This rule is not expected to have a
significant economic impact on small
entities. Although the rule removes
Canada as a Free Trade Agreement
designated country and deletes the
associated $25,000 threshold, replacing
it with the free trade agreement
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minimum threshold of $92,319, Canada
remains a WTO GPA designated
country, and a qualifying country, with
a threshold of $183,000. The Mexico
thresholds remain unchanged.
Contracting officers will be required to
use the revised provisions and clauses
as prescribed that reflect the USMCA
requirements.
Based on fiscal year 2019 data from
the Federal Procurement Data System,
22,050 unique small entities were
awarded DoD contracts. Impacts to
small businesses are anticipated to be
negligible, since Canada remains a WTO
GPA designated country, and a
qualifying country, with a threshold of
$183,000, and the Mexico thresholds
remain unchanged.
This proposed rule does not include
any new reporting, recordkeeping, or
other compliance requirements for small
entities. The 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.
chapter 35), Control Number 0704–
0229, DFARS part 225, Foreign
Acquisition, and Related Clauses at
252.225; DD Form 2139.
The rule does not duplicate, overlap,
or conflict with any other Federal rules.
There are no known significant
alternative approaches to the rule that
would meet the requirements of the
USMCA Implementation Act.
DoD invites comments from small
business concerns and other interested
parties on the expected impact of this
rule on small entities.
DoD will also consider comments
from small entities concerning the
existing regulations in subparts affected
by this rule in accordance with 5 U.S.C.
610. Interested parties must submit such
comments separately and should cite 5
U.S.C. 610 (DFARS Case 2020–D032), in
correspondence.
VIII. Paperwork Reduction Act
The rule affects information collection
requirements in the provisions at
252.225–7018, Photovoltaic Devices—
Certificate, and 252.225–7035, Buy
American—Free Trade Agreements—
Balance of Payments Program
Certificate; and the clauses at 252.225–
7013, Duty-Free Entry, and 252.225–
7021, Alternate II, Trade Agreements,
currently approved under OMB Control
Number 0704–0229 in accordance with
the Paperwork Reduction Act (44 U.S.C.
chapter 35). The impact, however, is
negligible because the rule merely
removes Canada as a Free Trade
Agreement country.
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Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Proposed Rules
List of Subjects in 48 CFR Parts 212,
225, and 252
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition
Regulations System.
Therefore, 48 CFR parts 212, 225, and
252 are proposed to be amended as
follows:
■ 1. The authority citation for 48 CFR
parts 212, 225, and 252 continues to
read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.
PART 212—ACQUISITION OF
COMMERCIAL ITEMS
212.301
[Amended]
2. Amend section 212.301 in
paragraphs (f)(ix)(M) introductory text,
(f)(ix)(N) introductory text, (f)(ix)(V)
introductory text, and (f)(ix)(W)
introductory text by removing ‘‘3301
note’’ and adding ‘‘4501–4732’’
wherever it appears.
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PART 225—FOREIGN ACQUISITION
225.1101
3. Amend section 225.1101 in
paragraphs (10)(i) introductory text and
(10)(i)(B) and (D) by removing the term
‘‘equals or exceeds $25,000, but’’.
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PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
4. Amend section 252.225–7013 by—
a. Revising the section heading and
date of the clause; and
■ b. In paragraph (a), revising the
definition of ‘‘Eligible product’’.
The revisions read as follows:
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Duty-Free Entry.
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Photovoltaic Devices.
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Photovoltaic Devices (Date)
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[Amended]
6. Amend section 252.225–7018 by—
a. Revising the date of the provision;
b. In paragraph (a), removing
‘‘Canadian photovoltaic device,’’;
■ c. In paragraph (c), removing
‘‘$25,000’’ and adding ‘‘$92,319’’ in its
place;
■ d. In paragraph (d)(2) introductory
text, removing ‘‘$25,000’’ and adding
‘‘$92,319’’ in its place; and
■ e. Revising paragraph (d)(3).
The revisions read as follows:
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252.225–7018
Certificate.
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Photovoltaic Devices—
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Photovoltaic Devices—Certificate (Date)
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Duty-Free Entry (Date)
(a) * * *
Eligible product means—
(1) Designated country end product,
as defined in the Trade Agreements
(either basic or alternate) clause of this
contract;
(2) Free Trade Agreement country end
product, other than a Bahrainian end
product, a Moroccan end product, a
Panamanian end product, or a Peruvian
end product, as defined in the Buy
American—Free Trade Agreements—
Balance of Payments Program (either
basic or alternate II) clause of this
contract; or
(3) Free Trade Agreement country end
product other than a Bahrainian end
product, Korean end product, Moroccan
end product, Panamanian end product,
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252.225–7017
252.225–7018
[AMENDED]
252.225–7013
or Peruvian end product, as defined in
the Buy American—Free Trade
Agreements—Balance of Payments
Program (either alternate IV or alternate
V) clause of this contract.
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■ 5. Amend section 252.225–7017 by—
■ a. Revising the date of the clause;
■ b. In paragraph (a)—
■ i. Removing the definition of
‘‘Canadian photovoltaic device’’; and
■ ii. In the definitions of ‘‘Designated
country’’, paragraph (2), and ‘‘Free
Trade Agreement country’’ removing
‘‘Canada,’’;
■ c. In paragraph (c)(1), removing
‘‘$25,000’’ and adding ‘‘$92,319’’ in its
place;
■ d. Removing paragraph (c)(2); and
■ e. Redesignating paragraphs (c)(3), (4),
and (5) as paragraphs (c)(2), (3), and (4).
The revision reads as follows:
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(d) * * *
(3) If less than $92,319—
ll(i) The offeror certifies that each
photovoltaic device to be utilized in
performance of the contract is a
domestic photovoltaic device;
ll(ii) The offeror certifies that each
photovoltaic device to be utilized in
performance of the contract is a
qualifying country photovoltaic device
[Offeror to specify country of origin
ll]; or
ll(iii) The foreign photovoltaic
devices to be utilized in performance of
the contract are the product of ll.
[Offeror to specify country of origin, if
known, and provide documentation that
the cost of a domestic photovoltaic
device would be unreasonable in
comparison to the cost of the proposed
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foreign photovoltaic device, i.e. that the
price of the foreign photovoltaic device
plus 50 percent is less than the price of
a comparable domestic photovoltaic
device.]
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■ 7. Amend section 252.225–7021 by—
■ a. Revising the section heading and
date of the clause;
■ b. In paragraph (a)—
■ i. In the definition of ‘‘Caribbean
Basin Country end product’’,
redesignating paragraphs (i)
introductory text, (i)(A) and (B), (ii)
introductory text, and (ii)(A), (B), and
(C) as paragraphs (1) introductory text,
(1)(i) and (ii), (2) introductory text, and
(2)(i), (ii), and (iii), respectively;
■ ii. In the definition of ‘‘Commercially
available off-the-shelf (COTS) item’’,
redesignating paragraphs (i)
introductory text, (i)(A), (B), and (C),
and (ii) as paragraphs (1) introductory
text, (1)(i), (ii), and (iii), and (2),
respectively;
■ iii. In the definition of ‘‘Designated
country’’, redesignating paragraphs (i)
through (iv) as paragraphs (1) through
(4), respectively; and in the newly
redesignated paragraph (2), removing
‘‘Canada,’’;
■ iv. In the definitions of ‘‘Free Trade
Agreement country end product’’ and
‘‘Least developed country end product’’,
redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively;
■ v. In the definition of ‘‘Qualifying
country end product’’, redesignating
paragraphs (i), (ii) introductory text,
(ii)(A) introductory text, (ii)(A)(1), (2),
and (3), and (ii)(B) as paragraphs (1), (2)
introductory text, (2)(i) introductory
text, (2)(i)(A), (B), and (C), and (2)(ii),
respectively; and
■ vi. In the definitions of ‘‘U.S.-made
end product’’ and ‘‘WTO GPA country
end product’’, redesignating paragraphs
(i) and (ii) as paragraphs (1) and (2),
respectively;
■ c. In paragraph (e) introductory text,
removing ‘‘on the Internet’’; and
■ d. In Alternate II—
■ i. Revising the date of the clause;
■ ii. In paragraph (a)—
■ A. In the definition of ‘‘Caribbean
Basin Country end product’’,
redesignating paragraphs (i)
introductory text, (i)(A) and (B), (ii)
introductory text, and (ii)(A), (B), and
(C) as paragraphs (1) introductory text,
(1)(i) and (ii), (2) introductory text, and
(2)(i), (ii), and (iii), respectively;
■ B. In the definition of ‘‘Commercially
available off-the-shelf (COTS) item’’,
redesignating paragraphs (i)
introductory text, (i)(A), (B), and (C),
and (ii) as paragraphs (1) introductory
text, (1)(i), (ii), and (iii), and (2),
respectively;
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C. In the definition of ‘‘Designated
country’’, redesignating paragraphs (i)
through (iv) as paragraphs (1) through
(4), respectively; and in the newly
redesignated paragraph (2), removing
‘‘Canada,’’;
■ D. In the definitions of ‘‘Free Trade
Agreement country end product’’ and
‘‘Least developed country end product’’,
redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively;
■ E. In the definition of ‘‘Qualifying
country end product’’, redesignating
paragraphs (i), (ii) introductory text,
(ii)(A) introductory text, (ii)(A)(1), (2),
and (3), and (ii)(B) as paragraphs (1), (2)
introductory text, (2)(i) introductory
text, (2)(i)(A), (B), and (C), and (2)(ii),
respectively; and
■ F. In the definitions of ‘‘South
Caucasus/Central and South Asian (SC/
CASA) state end product’’, ‘‘U.S.-made
end product’’, and ‘‘WTO GPA country
end product’’, redesignating paragraphs
(i) and (ii) as paragraphs (1) and (2),
respectively; and
■ iii. In paragraph (f) introductory text,
removing ‘‘on the Internet’’.
The revisions read as follows:
■
252.225–7021
*
*
*
Trade Agreements.
*
*
Trade Agreements—Basic (Date)
*
*
*
*
*
Trade Agreements–Alternate II (Date)
*
*
*
*
*
8. Amend section 252.225–7035 by—
a. Revising the provision date;
b. In paragraph (b)(1), removing
‘‘Part’’ and adding ‘‘part’’ in its place;
■ c. In paragraph (c)(2)(i), removing ‘‘or
Canadian’’;
■ d. In Alternate I—
■ i. Revising the introductory text and
the provision date;
■ ii. In paragraph (a)—
■ A. Removing ‘‘Canadian end
product,’’;
■ B. Removing ‘‘commercially available
off-the-shelf (COTS) item’’ and adding
‘‘Commercially available off-the-shelf
(COTS) item’’ in its place;
■ iii. In paragraph (b)(2), removing ‘‘or
Canadian end products’’; and
■ iv. Revising paragraph (c)(2);
■ e. In Alternate II—
■ i. Revising the provision date; and
■ ii. In paragraph (c)(2)(i), removing ‘‘or
Canadian’’;
■ f. In Alternate III—
■ i. Revising the provision date;
■ ii. In paragraph (a)—
■ A. Removing ‘‘Canadian end
product,’’;
■ B. Removing ‘‘commercially available
off-the-shelf (COTS) item’’ and adding
‘‘Commercially available off-the-shelf
(COTS) item’’ in its place;
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iii. In paragraph (b)(2), removing ‘‘or
Canadian end products’’; and
■ iv. In paragraph (c)(2)(i), removing
‘‘(except Canadian)’’;
■ g. In Alternate IV—
■ i. Revising the provision date; and
■ ii. In paragraph (c)(2)(i), removing ‘‘or
Canadian’’; and
■ h. In Alternate V—
■ i. Revising the provision date; and
■ ii. In paragraph (c)(2)(i), removing ‘‘or
Canadian’’.
The revisions read as follows:
Buy American—Free Trade
Agreements—Balance of Payments
Program Certificate—Alternate II (Date)
252.225–7035 Buy American—Free Trade
Agreements—Balance of Payments
Program Certificate.
*
■
*
*
*
*
*
Buy American—Free Trade
Agreements—Balance of Payments
Program Certificate—Basic (Date)
*
*
*
*
*
Buy American—Free Trade
Agreements—Balance of Payments
Program Certificate—Alternate III
(Date)
*
*
*
*
*
Buy American—Free Trade
Agreements—Balance of Payments
Program Certificate—Alternate IV
(Date)
*
*
*
*
Buy American—Free Trade
Agreements—Balance of Payments
Program Certificate—Alternate V (Date)
*
*
*
*
9. Amend section 252.225–7036 by—
a. Revising the clause date;
*
*
*
*
*
b. In paragraph (a)—
i. In the definition of ‘‘Bahrainian end
Alternate I. As prescribed in
product’’, redesignating paragraphs (i)
225.1101(9) and (9)(ii), use the
following provision, which does not use and (ii) as paragraphs (1) and (2),
respectively;
the phrases Bahrainian end product,
■ ii. In the definition of ‘‘Commercially
Free Trade Agreement country, Free
available off-the-shelf (COTS) item’’,
Trade Agreement country end product,
redesignating paragraphs (i)
Moroccan end product, Panamanian
end product, and Peruvian end products introductory text, (i)(A), (B), and (C),
and (ii) as paragraphs (1) introductory
in paragraph (a) of the basic provision;
text, (1)(i), (ii), and (iii), and (2),
does not use ‘‘Free Trade Agreement
respectively;
country end products other than
Bahrainian end products, Moroccan end ■ iii. In the definition of ‘‘Domestic end
product’’, redesignating paragraphs (i),
products, Panamanian end products, or
(ii) introductory text, (ii)(A)
Peruvian end products’’ in paragraphs
introductory text, (ii)(A)(1) and (2),
(b)(2) and (c)(2)(ii) of the basic
provision; and does not use ‘‘Australian (ii)(B) as paragraphs (1), (2) introductory
text, (2)(i) introductory text, (2)(i)(A)
or’’ in paragraph (c)(2)(i):
and (B), and (2)(ii);
Buy American—Free Trade
■ iv. In the definition of ‘‘Free Trade
Agreements—Balance of Payments
Agreement country’’, removing
Program Certificate—Alternate I (Date) ‘‘Canada,’’;
■ v. In the definitions of ‘‘Free Trade
*
*
*
*
*
Agreement country end product’’,
(c) * * *
‘‘Moroccan end product’’, ‘‘Panamanian
(2) The offeror shall identify all end
end product’’, and ‘‘Peruvian end
products that are not domestic end
product’’, redesignating paragraphs (i)
products.
and (ii) as paragraphs (1) and (2),
(i) The offeror certifies that the
respectively; and
following supplies are qualifying
■ vi. In the definition of ‘‘Qualifying
country end products:
country end product’’, redesignating
(Line Item Number) (Country of Origin) paragraphs (i), (ii) introductory text,
(ii)(A) introductory text, (ii)(A)(1), (2),
(ii) The following supplies are other
and (3), and (ii)(B) as paragraphs (1), (2)
foreign end products, including end
introductory text, (2)(i) introductory
products manufactured in the United
text, (2)(i)(A), (B), and (C), and (2)(ii),
States that do not qualify as domestic
respectively;
end products, i.e., an end product that
■ c. In Alternate I—
is not a COTS item and does not meet
■ i. Revising the introductory text and
the component test in paragraph (ii) of
the clause date;
the definition of ‘‘domestic end
■ ii. In paragraph (a)—
product’’:
■ A. In the definition of ‘‘Bahrainian
(Line Item Number) (Country of Origin end product’’, redesignating paragraphs
(If known))
(i) and (ii) as paragraphs (1) and (2),
*
*
*
*
*
respectively;
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■
■
■
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B. Removing the definition of
‘‘Canadian end product’’;
■ C. In the definition of ‘‘Commercially
available off-the-shelf (COTS) item’’,
redesignating paragraphs (i)
introductory text, (i)(A), (B), and (C),
and (ii) as paragraphs (1) introductory
text, (1)(i), (ii), and (iii), and (2),
respectively;
■ D. In the definition of ‘‘Domestic end
product’’, redesignating paragraphs (i),
(ii) introductory text, (ii)(A)
introductory text, (ii)(A)(1) and (2),
(ii)(B) as paragraphs (1), (2) introductory
text, (2)(i) introductory text, (2)(i)(A)
and (B), and (2)(ii);
■ E. In the definition of ‘‘Free Trade
Agreement country’’, removing
‘‘Canada,’’;
■ F. In the definitions of ‘‘Free Trade
Agreement country end product’’,
‘‘Moroccan end product’’, ‘‘Panamanian
end product’’, and ‘‘Peruvian end
product’’, redesignating paragraphs (i)
and (ii) as paragraphs (1) and (2),
respectively; and
■ G. In the definition of ‘‘Qualifying
country end product’’, redesignating
paragraphs (i), (ii) introductory text,
(ii)(A) introductory text, (ii)(A)(1), (2),
and (3), and (ii)(B) as paragraphs (1), (2)
introductory text, (2)(i) introductory
text, (2)(i)(A), (B), and (C), and (2)(ii),
respectively; and iii. In paragraph (c),
removing ‘‘, Canadian’’, ‘‘or a Canadian
end product’’, and ‘‘, a Canadian end
product,’’;
■ d. In Alternate II—
■ i. Revising the clause date; and
■ ii. In paragraph (a)—
■ A. In the definition of ‘‘Bahrainian
end product’’, redesignating paragraphs
(i) and (ii) as paragraphs (1) and (2),
respectively;
■ B. In the definition of ‘‘Commercially
available off-the-shelf (COTS) item’’,
redesignating paragraphs (i)
introductory text, (i)(A), (B), and (C),
and (ii) as paragraphs (1) introductory
text, (1)(i), (ii), and (iii), and (2),
respectively;
■ C. In the definition of ‘‘Domestic end
product’’, redesignating paragraphs (i),
(ii) introductory text, (ii)(A)
introductory text, (ii)(A)(1) and (2),
(ii)(B) as paragraphs (1), (2) introductory
text, (2)(i) introductory text, (2)(i)(A)
and (B), and (2)(ii);
■ D. In the definition of ‘‘Free Trade
Agreement country’’, removing
‘‘Canada,’’;
■ E. In the definitions of ‘‘Free Trade
Agreement country end product’’,
‘‘Moroccan end product’’, ‘‘Panamanian
end product’’, and ‘‘Peruvian end
product’’ redesignating paragraphs (i)
and (ii) as paragraphs (1) and (2),
respectively;
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■
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F. In the definition of ‘‘Qualifying
country end product’’, redesignating
paragraphs (i), (ii) introductory text,
(ii)(A) introductory text, (ii)(A)(1), (2),
and (3), and (ii)(B) as paragraphs (1), (2)
introductory text, (2)(i) introductory
text, (2)(i)(A), (B), and (C), and (2)(ii),
respectively; and
■ G. In the definition of ‘‘South
Caucasus/Central and South Asian (SC/
CASA) state end product’’,
redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively;
■ e. In Alternate III—
■ i. Revising the introductory text and
the clause date;
■ ii. In paragraph (a)—
■ A. In the definition of ‘‘Bahrainian
end product’’, redesignating paragraphs
(i) and (ii) as paragraphs (1) and (2),
respectively;
■ B. Removing the definition of
‘‘Canadian end product’’;
■ C. In the definition of ‘‘Commercially
available off-the-shelf (COTS) item’’,
redesignating paragraphs (i)
introductory text, (i)(A), (B), and (C),
and (ii) as paragraphs (1) introductory
text, (1)(i), (ii), and (iii), and (2),
respectively;
■ D. In the definition of ‘‘Domestic end
product’’, redesignating paragraphs (i),
(ii) introductory text, (ii)(A)
introductory text, (ii)(A)(1) and (2),
(ii)(B) as paragraphs (1), (2) introductory
text, (2)(i) introductory text, (2)(i)(A)
and (B), and (2)(ii);
■ E. In the definition of ‘‘Free Trade
Agreement country’’, removing
‘‘Canada,’’;
■ F. In the definitions of ‘‘Free Trade
Agreement country end product’’,
‘‘Moroccan end product’’, ‘‘Panamanian
end product’’, and ‘‘Peruvian end
product’’, redesignating paragraphs (i)
and (ii) as paragraphs (1) and (2),
respectively;
■ G. In the definition of ‘‘Qualifying
country end product’’, redesignating
paragraphs (i), (ii) introductory text,
(ii)(A) introductory text, (ii)(A)(1), (2),
and (3), and (ii)(B) as paragraphs (1), (2)
introductory text, (2)(i) introductory
text, (2)(i)(A), (B), and (C), and (2)(ii),
respectively; and
■ H. In the definition of ‘‘South
Caucasus/Central and South Asian (SC/
CASA) state end product’’,
redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively; and
■ iii. Revising paragraph (c);
■ f. In Alternate IV—
■ i. Revising the clause date; and
■ ii. In paragraph (a)—
■ A. In the definition of ‘‘Bahrainian
end product’’, redesignating paragraphs
(i) and (ii) as paragraphs (1) and (2),
respectively;
■ B. In the definition of ‘‘Commercially
available off-the-shelf (COTS) item’’,
■
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11007
redesignating paragraphs (i)
introductory text, (i)(A), (B), and (C),
and (ii) as paragraphs (1) introductory
text, (1)(i), (ii), and (iii), and (2),
respectively;
■ C. In the definition of ‘‘Domestic end
product’’, redesignating paragraphs (i),
(ii) introductory text, (ii)(A)
introductory text, (ii)(A)(1) and (2),
(ii)(B) as paragraphs (1), (2) introductory
text, (2)(i) introductory text, (2)(i)(A)
and (B), and (2)(ii);
■ D. In the definition of ‘‘Free Trade
Agreement country’’, removing
‘‘Canada,’’;
■ E. In the definitions of ‘‘Free Trade
Agreement country end product’’,
‘‘Korean end product’’, ‘‘Moroccan end
product’’, ‘‘Panamanian end product’’,
and ‘‘Peruvian end product’’,
redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively; and
■ F. In the definition of ‘‘Qualifying
country end product’’, redesignating
paragraphs (i), (ii) introductory text,
(ii)(A) introductory text, (ii)(A)(1), (2),
and (3), and (ii)(B) as paragraphs (1), (2)
introductory text, (2)(i) introductory
text, (2)(i)(A), (B), and (C), and (2)(ii),
respectively; and
■ g. In Alternate V—
■ i. Revising the clause date; and
■ ii. In paragraph (a)—
■ A. In the definition of ‘‘Bahrainian
end product’’, redesignating paragraphs
(i) and (ii) as paragraphs (1) and (2),
respectively;
■ B. In the definition of ‘‘Commercially
available off-the-shelf (COTS) item’’,
redesignating paragraphs (i)
introductory text, (i)(A), (B), and (C),
and (ii) as paragraphs (1) introductory
text, (1)(i), (ii), and (iii), and (2),
respectively;
■ C. In the definition of ‘‘Domestic end
product’’, redesignating paragraphs (i),
(ii) introductory text, (ii)(A)
introductory text, (ii)(A)(1) and (2), and
(ii)(B) as paragraphs (1), (2) introductory
text, (2)(i) introductory text, (2)(i)(A)
and (B), and (2)(ii), respectively;
■ D. In the definition of ‘‘Free Trade
Agreement country’’, removing
‘‘Canada,’’;
■ E. In the definitions of ‘‘Free Trade
Agreement country end product’’,
‘‘Korean end product’’, ‘‘Moroccan end
product’’, ‘‘Panamanian end product’’,
and ‘‘Peruvian end product’’,
redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively;
■ F. In the definition of ‘‘Qualifying
country end product’’, redesignating
paragraphs (i), (ii) introductory text,
(ii)(A) introductory text, (ii)(A)(1), (2),
and (3), and (ii)(B) as paragraphs (1), (2)
introductory text, (2)(i) introductory
text, (2)(i)(A), (B), and (C), and (2)(ii),
respectively; and
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G. In the definition of ‘‘South
Caucasus/Central and South Asian (SC/
CASA) state end product’’,
redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively.
The revisions read as follows:
■
252.225–7036 Buy American—Free Trade
Agreements—Balance of Payments
Program.
*
*
*
*
*
Buy American—Free Trade
Agreements—Balance of Payments
Program—Basic (Date)
*
*
*
*
*
Alternate I. As prescribed in
225.1101(10)(i) and (10)(i)(B), use the
following clause, which uses a different
paragraph (c) than the basic clause:
Buy American—Free Trade
Agreements—Balance of Payments
Program—Alternate I (Date)
*
*
*
*
*
Buy American—Free Trade
Agreements—Balance of Payments
Program—Alternate II (Date)
*
*
*
*
*
Alternate III. As prescribed in
225.1101(10)(i) and (10)(i)(D), use the
following clause, which adds South
Caucasus/Central and South Asian (SC/
CASA) state and South Caucasus/
Central and South Asian (SC/CASA)
state end product to paragraph (a) and
uses a different paragraph (c) than the
basic clause:
Buy American—Free Trade
Agreements—Balance of Payments
Program—Alternate III (Date)
khammond on DSKJM1Z7X2PROD with PROPOSALS
*
*
*
*
*
(c) The Contractor shall deliver under
this contract only domestic end
products unless, in its offer, it specified
delivery of qualifying country end
products, SC/CASA state end products,
or other foreign end products in the Buy
American—Free Trade Agreements—
Balance of Payments Program
Certificate—Alternate III provision of
the solicitation. If the Contractor
certified in its offer that it will deliver
a qualifying country end product or SC/
CASA state end products, the Contractor
shall deliver a qualifying country end
product, an SC/CASA state end product,
or, at the Contractor’s option, a domestic
end product.
*
*
*
*
*
Buy American—Free Trade
Agreements—Balance of Payments
Program—Alternate IV (Date)
*
*
*
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*
*
16:29 Feb 25, 2022
Jkt 256001
Buy American—Free Trade
Agreements—Balance of Payments
Program—Alternate V (Date)
*
*
*
*
*
10. Amend section 252.225–7045 by—
a. Revising the clause date;
b. In paragraph (a)—
i. In the definition of ‘‘Caribbean
Basin country construction material’’,
redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively;
■ ii. In the definition of ‘‘Commercially
available off-the-shelf (COTS) item’’,
redesignating paragraphs (i)
introductory text, (i)(A), (B), and (C),
and (ii) as paragraphs (1) introductory
text, (1)(i), (ii), and (iii), and (2),
respectively;
■ iii. In the definition of ‘‘Cost of
components’’, redesignating paragraphs
(i) and (ii) as paragraphs (1) and (2),
respectively;
■ iv. In the definition of ‘‘Designated
country’’, redesignating paragraphs (i),
(ii), (iii), and (iv) as paragraphs (1), (2),
(3), and (4), respectively; and in the
newly redesignated paragraph (2),
removing ‘‘Canada,’’;
■ iv. In the definition of ‘‘Domestic
construction material’’, redesignating
paragraphs (i), (ii) introductory text, and
(ii)(A) and (B) as paragraphs (1), (2)
introductory text, and (2)(i) and (ii),
respectively; and
■ v. In the definitions of ‘‘Free Trade
Agreement country construction
material’’, ‘‘Least developed country
construction material’’, and ‘‘WTO GPA
country construction material’’,
redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively;
■ c. In Alternate I—
■ i. Revising the clause date;
■ ii. In paragraph (a)—
■ A. In the definitions of ‘‘Bahrainian or
Mexican construction material’’ and
‘‘Caribbean Basin country construction
material’’, redesignating paragraphs (i)
and (ii) as paragraphs (1) and (2),
respectively;
■ B. In the definition of ‘‘Commercially
available off-the-shelf (COTS) item’’,
redesignating paragraphs (i)
introductory text, (i)(A), (B), and (C),
and (ii) as paragraphs (1) introductory
text, (1)(i), (ii), and (iii), and (2),
respectively;
■ C. In the definition of ‘‘Cost of
components’’, redesignating paragraphs
(i) and (ii) as paragraphs (1) and (2),
respectively;
■ D. In the definition of ‘‘Designated
country’’, redesignating paragraphs (i),
(ii), (iii), and (iv) as paragraphs (1), (2),
(3), and (4), respectively; and in the
newly redesignated paragraph (2),
removing ‘‘Canada,’’;
■ E. In the definition of ‘‘Domestic
construction material’’, redesignating
■
■
■
■
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paragraphs (i), (ii) introductory text, and
(ii)(A) and (B) as paragraphs (1), (2)
introductory text, and (2)(i) and (ii),
respectively; and
■ F. In the definitions of ‘‘Free Trade
Agreement country construction
material’’, ‘‘Least developed country
construction material’’, and ‘‘WTO GPA
country construction material’’,
redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively; and
■ iii. In paragraph (b), removing
‘‘NAFTA’’ and adding ‘‘United StatesMexico-Canada Agreement’’ in its place;
■ d. In Alternate II—
■ i. Revising the clause date; and
■ ii. In paragraph (a)—
■ A. In the definition of ‘‘Caribbean
Basin country construction material’’,
redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively;
■ B. In the definition of ‘‘Commercially
available off-the-shelf (COTS) item’’,
redesignating paragraphs (i)
introductory text, (i)(A), (B), and (C),
and (ii) as paragraphs (1) introductory
text, (1)(i), (ii), and (iii), and (2),
respectively;
■ C. In the definition of ‘‘Cost of
components’’, redesignating paragraphs
(i) and (ii) as paragraphs (1) and (2),
respectively;
■ D. In the definition of ‘‘Designated
country’’, redesignating paragraphs (i),
(ii), (iii), and (iv) as paragraphs (1), (2),
(3), and (4), respectively; and in the
newly redesignated paragraph (2),
removing ‘‘Canada,’’;
■ E. In the definition of ‘‘Domestic
construction material’’, redesignating
paragraphs (i), (ii) introductory text, and
(ii)(A) and (B) as paragraphs (1), (2)
introductory text, and (2)(i) and (ii),
respectively; and
■ F. In the definitions of ‘‘Free Trade
Agreement country construction
material’’, ‘‘Least developed country
construction material’’, ‘‘SC/CASA state
construction material’’, and ‘‘WTO GPA
country construction material’’,
redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively; and
■ e. In Alternate III—
■ i. Revising the clause date;
■ ii. In paragraph (a)—
■ A. In the definition of ‘‘Caribbean
Basin country construction material’’,
redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively;
■ B. In the definition of ‘‘Commercially
available off-the-shelf (COTS) item’’,
redesignating paragraphs (i)
introductory text, (i)(A), (B), and (c), and
(ii) as paragraphs (1) introductory text,
(1)(i), (ii), and (iii), and (2), respectively;
■ C. In the definition of ‘‘Cost of
components’’, redesignating paragraphs
(i) and (ii) as paragraphs (1) and (2),
respectively;
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Federal Register / Vol. 87, No. 39 / Monday, February 28, 2022 / Proposed Rules
D. In the definition of ‘‘Designated
country’’, redesignating paragraphs (i),
(ii), (iii), and (iv) as paragraphs (1), (2),
(3), and (4), respectively; and in the
newly redesignated paragraph (2),
removing ‘‘Canada,’’;
DEPARTMENT OF DEFENSE
E. In the definition of ‘‘Domestic
construction material’’, redesignating
paragraphs (i), (ii) introductory text,
(ii)(A) and (B) as paragraphs (1), (2)
introductory text, and (2)(i) and (ii),
respectively; and
[Docket DARS–2022–0002]
■
■
F. In the definitions of ‘‘Free Trade
Agreement country construction
material’’, ‘‘Least developed country
construction material’’, ‘‘SC/CASA state
construction material’’, and ‘‘WTO GPA
country construction material’’,
redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively; and
iii. In paragraph (b) removing
‘‘NAFTA’’ and adding ‘‘United StatesMexico-Canada Agreement’’ in its place.
The revisions read as follows:
252.225–7045 Balance of Payments
Program—Construction Material Under
Trade Agreements.
*
*
*
*
*
Balance of Payments Program—
Construction Material Under Trade
Agreements—Basic (Date)
*
*
*
*
*
Balance of Payments Program—
Construction Material Under Trade
Agreements—Alternate I (Date)
*
*
*
*
*
Balance of Payments Program—
Construction Material Under Trade
Agreements—Alternate II (Date)
*
*
*
*
*
Balance of Payments Program—
Construction Material Under Trade
Agreements—Alternate III (Date)
*
*
*
*
*
[FR Doc. 2022–04009 Filed 2–25–22; 8:45 am]
khammond on DSKJM1Z7X2PROD with PROPOSALS
BILLING CODE 5001–06–P
48 CFR Chapter 2
RIN 0750–AK96
■
■
Defense Acquisition Regulations
System
Defense Federal Acquisition
Regulation Supplement:
Reauthorization and Improvement of
Mentor-Prote´ge´ Program (DFARS Case
2020–D009)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Proposed rule.
AGENCY:
DoD is proposing to amend
the Defense Federal Acquisition
Regulation Supplement (DFARS) to
implement a section of the National
Defense Authorization Act for Fiscal
Year 2020 that reauthorizes and
modifies the DoD Mentor-Prote´ge´
Program.
SUMMARY:
Comments on the proposed rule
should be submitted in writing to the
address shown below on or before April
29, 2022 to be considered in the
formation of a final rule.
ADDRESSES: Submit comments
identified by DFARS 2020–D009, using
any of the following methods:
Æ Federal eRulemaking Portal:
https://www.regulations.gov. Search for
‘‘DFARS Case 2020–D009’’ in the search
box and select ‘‘Search.’’ Select
‘‘Comment’’ and follow the instructions
to submit a comment. Please include
your name, company name (if any), and
‘‘DFARS Case 2020–D009’’ on any
attached document.
Æ Email: osd.dfars@mail.mil. Include
DFARS Case 2020–D009 in the subject
line of the message.
Comments received generally will be
posted without change to https://
www.regulations.gov, including any
personal information provided. To
confirm receipt of your comment(s),
please check https://
www.regulations.gov, approximately
two to three days after submission to
verify posting.
FOR FURTHER INFORMATION CONTACT: Ms.
Jeanette Snyder, 571–372–6106.
SUPPLEMENTARY INFORMATION:
DATES:
I. Background
DoD is proposing to revise the DFARS
to implement section 872 of the
National Defense Authorization Act
(NDAA) for Fiscal Year (FY) 2020 (Pub.
VerDate Sep<11>2014
16:29 Feb 25, 2022
Jkt 256001
PO 00000
Frm 00019
Fmt 4702
Sfmt 4702
11009
L. 116–92). Section 872 modifies
subsection (j) of section 831 of the
NDAA for FY 1991 (Pub. L. 101–510; 10
U.S.C. 2302 note) to reauthorize and
improve the DoD Mentor-Prote´ge´
Program. Section 872 extends the date
for entering into a mentor-prote´ge´
agreement, extends the date for
reimbursement of mentors, limits the
term for program participation, extends
the date for a mentor to receive credit
toward the attainment of small business
subcontracting goals, and expands
eligibility for prote´ge´ firms.
II. Discussion and Analysis
This proposed rule includes changes
to DFARS subpart 219.71 and DFARS
appendix I to implement section 872 of
the NDAA for FY 2020 to reauthorize
and improve the DoD Mentor-Prote´ge´
Program (the Program). This proposed
rule—
—Reauthorizes the Program by
extending the date for entering into a
mentor-prote´ge´ agreement from
September 30, 2018, to September 30,
2024;
—Extends the date for mentor
reimbursements to be paid for
developmental assistance costs
incurred under the Program from
September 30, 2021, to September 30,
2026;
—Extends the date for a mentor to
receive, for developmental assistance
costs incurred under the Program,
credit toward attainment of the
subcontracting goals in its small
business subcontracting plan from
September 30, 2021, to September 30,
2026;
—Limits the program participation term
to two years, unless approval is
otherwise obtained for an additional
period not to exceed three years;
—Expands the eligibility of a prote´ge´ by
aligning its size with the size standard
of its primary North American
Industry Classification System
(NAICS) code; and
—Adds a DoD Office of Small Business
Programs cybersecurity readiness
assessment that will be provided to
prote´ge´s.
In addition, proposed amendments to
appendix I include—
—Updated definitions to align with the
statute;
—Addition of DoD’s right to terminate
agreements for convenience; and
—Other administrative and conforming
changes.
E:\FR\FM\28FEP1.SGM
28FEP1
]]>Agencies
[Federal Register Volume 87, Number 39 (Monday, February 28, 2022)]
[Proposed Rules]
[Pages 11002-11009]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-04009]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 212, 225, and 252
[Docket DARS-2022-0003]
RIN 0750-AL18
Defense Federal Acquisition Regulation Supplement: United States-
Mexico-Canada Agreement (DFARS Case 2020-D032)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to implement the United States-Mexico-
Canada Agreement Implementation Act.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before May 27, 2022, to be considered in
the formation of a final rule.
ADDRESSES: Submit comments identified by DFARS Case 2020-D032, using
any of the following methods:
[cir] Federal eRulemaking Portal: https://www.regulations.gov.
Search for ``DFARS Case 2020-D032.'' Select ``Comment'' and follow the
instructions to submit a comment. Please include ``DFARS Case 2020-
D032'' on any attached documents.
[cir] Email: [email protected]. Include DFARS Case 2020-D032 in
the subject line of the message.
Comments received generally will be posted without change to
https://www.regulations.gov, including any personal information
provided. To confirm receipt of your comment(s), please check https://www.regulations.gov, approximately two to three days after submission
to verify posting.
FOR FURTHER INFORMATION CONTACT: Ms. Kimberly Bass, telephone 571-372-
6174.
SUPPLEMENTARY INFORMATION:
[[Page 11003]]
I. Background
DoD is issuing a proposed rule to amend the DFARS 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 the
North American Free Trade Agreement (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 effect.
II. Discussion and Analysis
A. Chapter 13 of the USMCA
The USMCA supersedes the NAFTA. Chapter 13 (Government Procurement)
of the USMCA applies only to the United States and Mexico. Therefore,
Canada is no longer a Free Trade Agreement country, although Canada is
still a designated country under the World Trade Organization
Government Procurement Agreement (WTO GPA). 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.
This proposed rule is required to meet the United States trade
obligations to Mexico and remove any trade benefits that no longer
should accrue to Canada. Therefore, all references in the DFARS to
Canada as a Free Trade Agreement country are revised to delete Canada
and its associated Free Trade Agreement threshold of $25,000. The new
minimum Free Trade Agreement threshold is now $92,319. Mexico
thresholds remain unchanged.
B. Chapter 20 of the USMCA
Chapter 20 of the USMCA addresses intellectual property rights. The
requirements of Federal Acquisition Regulation (FAR) 27.204-1, Patented
technology under the NAFTA, and the associated emergency acquisition
flexibility at FAR 18.120 are no longer applicable or authorized. FAR
case 2020-014, United States-Mexico-Canada Agreement, is currently in
process to address required changes to the FAR to implement the USMCA.
DoD contracting officers should consult with legal counsel concerning
questions that may arise with regard to the use of patented technology
under the USMCA. Any potential impacts with regard to the USMCA to
DFARS part 218, Emergency Acquisitions, and DFARS part 227, Patents,
Data, and Copyrights, will be addressed with further rulemaking.
C. Implementation of the USMCA in the DFARS
Part 212
The proposed rule deletes all references to 19 U.S.C. 3301 note
associated with the implementation of NAFTA in DFARS 212.301.
Part 225
The $25,000 Free Trade Agreement threshold for Canada is no longer
applicable. The proposed rule deletes all references to the $25,000
threshold in its entirety in the clause prescriptions at DFARS
225.1101, Acquisition of supplies.
Part 252
All references to Free Trade Agreement countries are revised to
delete Canada and remove the $25,000 threshold, replacing it with the
Free Trade Agreement minimum threshold of $92,319. Contracting officers
will be required to use the revised provisions and clauses as
prescribed that reflect the USMCA requirements. Proposed revisions are
as follows:
DFARS 252.225-7013, Duty-Free Entry. Revises the definition of
``eligible product'' to delete the reference to Canadian end products
or devices.
DFARS 252.225-7017, Photovoltaic Devices, and DFARS 252.225-7018,
Photovoltaic Devices--Certificate. Removes the definition of ``Canadian
photovoltaic device'' as it no longer applies in both the clause and
provision. Deletes Canada as a Free Trade Agreement country from the
definition of ``designated country'' and from the definition of ``Free
Trade Agreement country'' in DFARS 252.225-7017. Conforming changes
made to remove the associated $25,000 threshold for Canada, replacing
it with the Free Trade Agreement minimum threshold of $92,319 in both
the clause and provision.
DFARS 252.225-7021, Trade Agreements. In the basic clause and in
alternate II, removes Canada as a Free Trade Agreement country from the
definition of ``designated country''. Editorial change made to
redesignate paragraph numbers in paragraph (a) definitions to conform
to current drafting conventions.
DFARS 252.225-7035, Buy American--Free Trade Agreements--Balance of
Payments Program Certificate. In the basic provision and alternates I,
II, III, IV, and V, removes all references to Canadian end products and
the ``Canadian end product'' definition in alternates I and III with
conforming changes.
DFARS 252.225-7036, Buy American--Free Trade Agreements--Balance of
Payments Program. In the basic clause and alternates I, II, III, IV,
and V, removes Canada from the definition of ``Free Trade Agreement
country'' and removes the definition for ``Canadian end product'' from
alternates I and II, with conforming changes. Editorial changes made to
redesignate paragraph numbers in paragraph (a) definitions to conform
to current drafting conventions.
DFARS 252.225-7045, Balance of Payments Program--Construction
Material Under Trade Agreements. In the basic clause and alternates I,
II, and III, removes references to Canada in the ``designated country''
definition as a ``Free Trade Agreement country''; removes ``NAFTA'' and
replaces it with references to ``USMCA'' in alternates I and III in
accordance with the implementation of the Balance of Payments Program.
Editorial changes made to redesignate paragraph numbers in paragraph
(a) definitions to conform to current drafting conventions.
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold (SAT), for Commercial Products Including Commercially
Available Off-the-Shelf (COTS) Items, and for Commercial Services
This rule amends the clauses at DFARS 252.225-7013, Duty-Free
Entry; DFARS 252.225-7017, Photovoltaic Devices; DFARS 252.225-7021,
Trade Agreements (Basic and Alternate II); DFARS 252.225-7036, Buy
American--Free Trade Agreements--Balance of Payments Program (Basic and
Alternates I (with the prescription), II, III (with the prescription),
IV, V); 252.225-7045, Balance of Payments Program--Construction
Material Under Trade Agreements (Basic and Alternates I, II, and III);
and provisions at DFARS 252.225-7018 Photovoltaic Devices--Certificate;
252.225-7035 Buy American--Free Trade Agreements--Balance of Payments
Program Certificate (Basic and Alternate I, II, III (with the
prescription). This rule does not impose any new requirements on
contracts at or below the simplified acquisition threshold, for
commercial products including commercially available off-the-shelf
items, or for commercial services.
[[Page 11004]]
IV. Expected Impact of the Rule
The rule implements the United States-Mexico-Canada Agreement
Implementation Act. The USMCA supersedes the NAFTA. Canada is still a
designated country under the World Trade Organization Government
Procurement Agreement; however, Canada is no longer a Free Trade
Agreement country, because chapter 13 (Government Procurement) of the
USMCA applies only to the United States and Mexico. References to
Canada as a Free Trade Agreement country in the DFARS are deleted,
including the $25,000 threshold. Canadian end products will still
receive nondiscriminatory treatment with respect to the Buy American
statute but starting at $183,000 rather than $25,000. Impacts are
anticipated to be negligible, since Canada remains a WTO GPA designated
country, and a qualifying country, with a threshold of $183,000. The
Mexico thresholds remain unchanged.
V. 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.
VI. 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 will submit a copy of
the interim or final rule with the form, Submission of Federal Rules
Under the Congressional Review Act, to the U.S. Senate, the House of
Representatives, and the Comptroller General of the United States. A
major rule under the Congressional Review Act cannot take effect until
60 days after it is published in the Federal Register. This rule is not
anticipated to be a major rule under 5 U.S.C. 804.
VII. Regulatory Flexibility Act
DoD does not expect this proposed rule to have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.
Nevertheless, an initial regulatory flexibility analysis has been
performed consistent with 5 U.S.C. 603 and summarized as follows:
The proposed rule implements 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
Implementation Act, through which Congress approved the USMCA. On July
1, 2020, the USMCA entered into effect.
The objective of this rule is to implement the USMCA Implementation
Act. The proposed rule includes changes in the Defense Federal
Acquisition Regulation Supplement (DFARS) 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 (WTO GPA), Canada is no
longer a Free Trade Agreement country, because chapter 13 of the USMCA
applies only to the United States and Mexico. Therefore, references to
Canada as a Free Trade Agreement country in the DFARS are deleted,
including the $25,000 threshold. Canadian end products will still
receive nondiscriminatory treatment with respect to the Buy American
statute but starting at $183,000 rather than the threshold of $25,000.
Mexico thresholds remain unchanged.
The proposed rule removes all references to the NAFTA, replacing
them with the new USMCA language, including statutory references. All
references to Canadian end products or Canadian photovoltaic devices
also are removed.
The legal basis for the rule is Public Law 116-113.
This rule is not expected to have a significant economic impact on
small entities. Although the rule removes Canada as a Free Trade
Agreement designated country and deletes the associated $25,000
threshold, replacing it with the free trade agreement minimum threshold
of $92,319, Canada remains a WTO GPA designated country, and a
qualifying country, with a threshold of $183,000. The Mexico thresholds
remain unchanged. Contracting officers will be required to use the
revised provisions and clauses as prescribed that reflect the USMCA
requirements.
Based on fiscal year 2019 data from the Federal Procurement Data
System, 22,050 unique small entities were awarded DoD contracts.
Impacts to small businesses are anticipated to be negligible, since
Canada remains a WTO GPA designated country, and a qualifying country,
with a threshold of $183,000, and the Mexico thresholds remain
unchanged.
This proposed rule does not include any new reporting,
recordkeeping, or other compliance requirements for small entities. The
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. chapter
35), Control Number 0704-0229, DFARS part 225, Foreign Acquisition, and
Related Clauses at 252.225; DD Form 2139.
The rule does not duplicate, overlap, or conflict with any other
Federal rules.
There are no known significant alternative approaches to the rule
that would meet the requirements of the USMCA Implementation Act.
DoD invites comments from small business concerns and other
interested parties on the expected impact of this rule on small
entities.
DoD will also consider comments from small entities concerning the
existing regulations in subparts affected by this rule in accordance
with 5 U.S.C. 610. Interested parties must submit such comments
separately and should cite 5 U.S.C. 610 (DFARS Case 2020-D032), in
correspondence.
VIII. Paperwork Reduction Act
The rule affects information collection requirements in the
provisions at 252.225-7018, Photovoltaic Devices--Certificate, and
252.225-7035, Buy American--Free Trade Agreements--Balance of Payments
Program Certificate; and the clauses at 252.225-7013, Duty-Free Entry,
and 252.225-7021, Alternate II, Trade Agreements, currently approved
under OMB Control Number 0704-0229 in accordance with the Paperwork
Reduction Act (44 U.S.C. chapter 35). The impact, however, is
negligible because the rule merely removes Canada as a Free Trade
Agreement country.
[[Page 11005]]
List of Subjects in 48 CFR Parts 212, 225, and 252
Government procurement.
Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.
Therefore, 48 CFR parts 212, 225, and 252 are proposed to be
amended as follows:
0
1. The authority citation for 48 CFR parts 212, 225, and 252 continues
to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.
PART 212--ACQUISITION OF COMMERCIAL ITEMS
212.301 [Amended]
0
2. Amend section 212.301 in paragraphs (f)(ix)(M) introductory text,
(f)(ix)(N) introductory text, (f)(ix)(V) introductory text, and
(f)(ix)(W) introductory text by removing ``3301 note'' and adding
``4501-4732'' wherever it appears.
PART 225--FOREIGN ACQUISITION
225.1101 [AMENDED]
0
3. Amend section 225.1101 in paragraphs (10)(i) introductory text and
(10)(i)(B) and (D) by removing the term ``equals or exceeds $25,000,
but''.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
4. Amend section 252.225-7013 by--
0
a. Revising the section heading and date of the clause; and
0
b. In paragraph (a), revising the definition of ``Eligible product''.
The revisions read as follows:
252.225-7013 Duty-Free Entry.
* * * * *
Duty-Free Entry (Date)
(a) * * *
Eligible product means--
(1) Designated country end product, as defined in the Trade
Agreements (either basic or alternate) clause of this contract;
(2) Free Trade Agreement country end product, other than a
Bahrainian end product, a Moroccan end product, a Panamanian end
product, or a Peruvian end product, as defined in the Buy American--
Free Trade Agreements--Balance of Payments Program (either basic or
alternate II) clause of this contract; or
(3) Free Trade Agreement country end product other than a
Bahrainian end product, Korean end product, Moroccan end product,
Panamanian end product, or Peruvian end product, as defined in the Buy
American--Free Trade Agreements--Balance of Payments Program (either
alternate IV or alternate V) clause of this contract.
* * * * *
0
5. Amend section 252.225-7017 by--
0
a. Revising the date of the clause;
0
b. In paragraph (a)--
0
i. Removing the definition of ``Canadian photovoltaic device''; and
0
ii. In the definitions of ``Designated country'', paragraph (2), and
``Free Trade Agreement country'' removing ``Canada,'';
0
c. In paragraph (c)(1), removing ``$25,000'' and adding ``$92,319'' in
its place;
0
d. Removing paragraph (c)(2); and
0
e. Redesignating paragraphs (c)(3), (4), and (5) as paragraphs (c)(2),
(3), and (4).
The revision reads as follows:
252.225-7017 Photovoltaic Devices.
* * * * *
Photovoltaic Devices (Date)
* * * * *
252.225-7018 [Amended]
0
6. Amend section 252.225-7018 by--
0
a. Revising the date of the provision;
0
b. In paragraph (a), removing ``Canadian photovoltaic device,'';
0
c. In paragraph (c), removing ``$25,000'' and adding ``$92,319'' in its
place;
0
d. In paragraph (d)(2) introductory text, removing ``$25,000'' and
adding ``$92,319'' in its place; and
0
e. Revising paragraph (d)(3).
The revisions read as follows:
252.225-7018 Photovoltaic Devices--Certificate.
* * * * *
Photovoltaic Devices--Certificate (Date)
* * * * *
(d) * * *
(3) If less than $92,319--
__(i) The offeror certifies that each photovoltaic device to be
utilized in performance of the contract is a domestic photovoltaic
device;
__(ii) The offeror certifies that each photovoltaic device to be
utilized in performance of the contract is a qualifying country
photovoltaic device [Offeror to specify country of origin __]; or
__(iii) The foreign photovoltaic devices to be utilized in
performance of the contract are the product of __. [Offeror to specify
country of origin, if known, and provide documentation that the cost of
a domestic photovoltaic device would be unreasonable in comparison to
the cost of the proposed foreign photovoltaic device, i.e. that the
price of the foreign photovoltaic device plus 50 percent is less than
the price of a comparable domestic photovoltaic device.]
* * * * *
0
7. Amend section 252.225-7021 by--
0
a. Revising the section heading and date of the clause;
0
b. In paragraph (a)--
0
i. In the definition of ``Caribbean Basin Country end product'',
redesignating paragraphs (i) introductory text, (i)(A) and (B), (ii)
introductory text, and (ii)(A), (B), and (C) as paragraphs (1)
introductory text, (1)(i) and (ii), (2) introductory text, and (2)(i),
(ii), and (iii), respectively;
0
ii. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
iii. In the definition of ``Designated country'', redesignating
paragraphs (i) through (iv) as paragraphs (1) through (4),
respectively; and in the newly redesignated paragraph (2), removing
``Canada,'';
0
iv. In the definitions of ``Free Trade Agreement country end product''
and ``Least developed country end product'', redesignating paragraphs
(i) and (ii) as paragraphs (1) and (2), respectively;
0
v. In the definition of ``Qualifying country end product'',
redesignating paragraphs (i), (ii) introductory text, (ii)(A)
introductory text, (ii)(A)(1), (2), and (3), and (ii)(B) as paragraphs
(1), (2) introductory text, (2)(i) introductory text, (2)(i)(A), (B),
and (C), and (2)(ii), respectively; and
0
vi. In the definitions of ``U.S.-made end product'' and ``WTO GPA
country end product'', redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively;
0
c. In paragraph (e) introductory text, removing ``on the Internet'';
and
0
d. In Alternate II--
0
i. Revising the date of the clause;
0
ii. In paragraph (a)--
0
A. In the definition of ``Caribbean Basin Country end product'',
redesignating paragraphs (i) introductory text, (i)(A) and (B), (ii)
introductory text, and (ii)(A), (B), and (C) as paragraphs (1)
introductory text, (1)(i) and (ii), (2) introductory text, and (2)(i),
(ii), and (iii), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
[[Page 11006]]
0
C. In the definition of ``Designated country'', redesignating
paragraphs (i) through (iv) as paragraphs (1) through (4),
respectively; and in the newly redesignated paragraph (2), removing
``Canada,'';
0
D. In the definitions of ``Free Trade Agreement country end product''
and ``Least developed country end product'', redesignating paragraphs
(i) and (ii) as paragraphs (1) and (2), respectively;
0
E. In the definition of ``Qualifying country end product'',
redesignating paragraphs (i), (ii) introductory text, (ii)(A)
introductory text, (ii)(A)(1), (2), and (3), and (ii)(B) as paragraphs
(1), (2) introductory text, (2)(i) introductory text, (2)(i)(A), (B),
and (C), and (2)(ii), respectively; and
0
F. In the definitions of ``South Caucasus/Central and South Asian (SC/
CASA) state end product'', ``U.S.-made end product'', and ``WTO GPA
country end product'', redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively; and
0
iii. In paragraph (f) introductory text, removing ``on the Internet''.
The revisions read as follows:
252.225-7021 Trade Agreements.
* * * * *
Trade Agreements--Basic (Date)
* * * * *
Trade Agreements-Alternate II (Date)
* * * * *
0
8. Amend section 252.225-7035 by--
0
a. Revising the provision date;
0
b. In paragraph (b)(1), removing ``Part'' and adding ``part'' in its
place;
0
c. In paragraph (c)(2)(i), removing ``or Canadian'';
0
d. In Alternate I--
0
i. Revising the introductory text and the provision date;
0
ii. In paragraph (a)--
0
A. Removing ``Canadian end product,'';
0
B. Removing ``commercially available off-the-shelf (COTS) item'' and
adding ``Commercially available off-the-shelf (COTS) item'' in its
place;
0
iii. In paragraph (b)(2), removing ``or Canadian end products''; and
0
iv. Revising paragraph (c)(2);
0
e. In Alternate II--
0
i. Revising the provision date; and
0
ii. In paragraph (c)(2)(i), removing ``or Canadian'';
0
f. In Alternate III--
0
i. Revising the provision date;
0
ii. In paragraph (a)--
0
A. Removing ``Canadian end product,'';
0
B. Removing ``commercially available off-the-shelf (COTS) item'' and
adding ``Commercially available off-the-shelf (COTS) item'' in its
place;
0
iii. In paragraph (b)(2), removing ``or Canadian end products''; and
0
iv. In paragraph (c)(2)(i), removing ``(except Canadian)'';
0
g. In Alternate IV--
0
i. Revising the provision date; and
0
ii. In paragraph (c)(2)(i), removing ``or Canadian''; and
0
h. In Alternate V--
0
i. Revising the provision date; and
0
ii. In paragraph (c)(2)(i), removing ``or Canadian''.
The revisions read as follows:
252.225-7035 Buy American--Free Trade Agreements--Balance of Payments
Program Certificate.
* * * * *
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Basic (Date)
* * * * *
Alternate I. As prescribed in 225.1101(9) and (9)(ii), use the
following provision, which does not use the phrases Bahrainian end
product, Free Trade Agreement country, Free Trade Agreement country end
product, Moroccan end product, Panamanian end product, and Peruvian end
products in paragraph (a) of the basic provision; does not use ``Free
Trade Agreement country end products other than Bahrainian end
products, Moroccan end products, Panamanian end products, or Peruvian
end products'' in paragraphs (b)(2) and (c)(2)(ii) of the basic
provision; and does not use ``Australian or'' in paragraph (c)(2)(i):
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate I (Date)
* * * * *
(c) * * *
(2) The offeror shall identify all end products that are not
domestic end products.
(i) The offeror certifies that the following supplies are
qualifying country end products:
(Line Item Number) (Country of Origin)
(ii) The following supplies are other foreign end products,
including end products manufactured in the United States that do not
qualify as domestic end products, i.e., an end product that is not a
COTS item and does not meet the component test in paragraph (ii) of the
definition of ``domestic end product'':
(Line Item Number) (Country of Origin (If known))
* * * * *
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate II (Date)
* * * * *
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate III (Date)
* * * * *
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate IV (Date)
* * * * *
Buy American--Free Trade Agreements--Balance of Payments Program
Certificate--Alternate V (Date)
* * * * *
0
9. Amend section 252.225-7036 by--
0
a. Revising the clause date;
0
b. In paragraph (a)--
0
i. In the definition of ``Bahrainian end product'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
ii. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
iii. In the definition of ``Domestic end product'', redesignating
paragraphs (i), (ii) introductory text, (ii)(A) introductory text,
(ii)(A)(1) and (2), (ii)(B) as paragraphs (1), (2) introductory text,
(2)(i) introductory text, (2)(i)(A) and (B), and (2)(ii);
0
iv. In the definition of ``Free Trade Agreement country'', removing
``Canada,'';
0
v. In the definitions of ``Free Trade Agreement country end product'',
``Moroccan end product'', ``Panamanian end product'', and ``Peruvian
end product'', redesignating paragraphs (i) and (ii) as paragraphs (1)
and (2), respectively; and
0
vi. In the definition of ``Qualifying country end product'',
redesignating paragraphs (i), (ii) introductory text, (ii)(A)
introductory text, (ii)(A)(1), (2), and (3), and (ii)(B) as paragraphs
(1), (2) introductory text, (2)(i) introductory text, (2)(i)(A), (B),
and (C), and (2)(ii), respectively;
0
c. In Alternate I--
0
i. Revising the introductory text and the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Bahrainian end product'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
[[Page 11007]]
0
B. Removing the definition of ``Canadian end product'';
0
C. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
D. In the definition of ``Domestic end product'', redesignating
paragraphs (i), (ii) introductory text, (ii)(A) introductory text,
(ii)(A)(1) and (2), (ii)(B) as paragraphs (1), (2) introductory text,
(2)(i) introductory text, (2)(i)(A) and (B), and (2)(ii);
0
E. In the definition of ``Free Trade Agreement country'', removing
``Canada,'';
0
F. In the definitions of ``Free Trade Agreement country end product'',
``Moroccan end product'', ``Panamanian end product'', and ``Peruvian
end product'', redesignating paragraphs (i) and (ii) as paragraphs (1)
and (2), respectively; and
0
G. In the definition of ``Qualifying country end product'',
redesignating paragraphs (i), (ii) introductory text, (ii)(A)
introductory text, (ii)(A)(1), (2), and (3), and (ii)(B) as paragraphs
(1), (2) introductory text, (2)(i) introductory text, (2)(i)(A), (B),
and (C), and (2)(ii), respectively; and iii. In paragraph (c), removing
``, Canadian'', ``or a Canadian end product'', and ``, a Canadian end
product,'';
0
d. In Alternate II--
0
i. Revising the clause date; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Bahrainian end product'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
C. In the definition of ``Domestic end product'', redesignating
paragraphs (i), (ii) introductory text, (ii)(A) introductory text,
(ii)(A)(1) and (2), (ii)(B) as paragraphs (1), (2) introductory text,
(2)(i) introductory text, (2)(i)(A) and (B), and (2)(ii);
0
D. In the definition of ``Free Trade Agreement country'', removing
``Canada,'';
0
E. In the definitions of ``Free Trade Agreement country end product'',
``Moroccan end product'', ``Panamanian end product'', and ``Peruvian
end product'' redesignating paragraphs (i) and (ii) as paragraphs (1)
and (2), respectively;
0
F. In the definition of ``Qualifying country end product'',
redesignating paragraphs (i), (ii) introductory text, (ii)(A)
introductory text, (ii)(A)(1), (2), and (3), and (ii)(B) as paragraphs
(1), (2) introductory text, (2)(i) introductory text, (2)(i)(A), (B),
and (C), and (2)(ii), respectively; and
0
G. In the definition of ``South Caucasus/Central and South Asian (SC/
CASA) state end product'', redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively;
0
e. In Alternate III--
0
i. Revising the introductory text and the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Bahrainian end product'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
B. Removing the definition of ``Canadian end product'';
0
C. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
D. In the definition of ``Domestic end product'', redesignating
paragraphs (i), (ii) introductory text, (ii)(A) introductory text,
(ii)(A)(1) and (2), (ii)(B) as paragraphs (1), (2) introductory text,
(2)(i) introductory text, (2)(i)(A) and (B), and (2)(ii);
0
E. In the definition of ``Free Trade Agreement country'', removing
``Canada,'';
0
F. In the definitions of ``Free Trade Agreement country end product'',
``Moroccan end product'', ``Panamanian end product'', and ``Peruvian
end product'', redesignating paragraphs (i) and (ii) as paragraphs (1)
and (2), respectively;
0
G. In the definition of ``Qualifying country end product'',
redesignating paragraphs (i), (ii) introductory text, (ii)(A)
introductory text, (ii)(A)(1), (2), and (3), and (ii)(B) as paragraphs
(1), (2) introductory text, (2)(i) introductory text, (2)(i)(A), (B),
and (C), and (2)(ii), respectively; and
0
H. In the definition of ``South Caucasus/Central and South Asian (SC/
CASA) state end product'', redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively; and
0
iii. Revising paragraph (c);
0
f. In Alternate IV--
0
i. Revising the clause date; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Bahrainian end product'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
C. In the definition of ``Domestic end product'', redesignating
paragraphs (i), (ii) introductory text, (ii)(A) introductory text,
(ii)(A)(1) and (2), (ii)(B) as paragraphs (1), (2) introductory text,
(2)(i) introductory text, (2)(i)(A) and (B), and (2)(ii);
0
D. In the definition of ``Free Trade Agreement country'', removing
``Canada,'';
0
E. In the definitions of ``Free Trade Agreement country end product'',
``Korean end product'', ``Moroccan end product'', ``Panamanian end
product'', and ``Peruvian end product'', redesignating paragraphs (i)
and (ii) as paragraphs (1) and (2), respectively; and
0
F. In the definition of ``Qualifying country end product'',
redesignating paragraphs (i), (ii) introductory text, (ii)(A)
introductory text, (ii)(A)(1), (2), and (3), and (ii)(B) as paragraphs
(1), (2) introductory text, (2)(i) introductory text, (2)(i)(A), (B),
and (C), and (2)(ii), respectively; and
0
g. In Alternate V--
0
i. Revising the clause date; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Bahrainian end product'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
C. In the definition of ``Domestic end product'', redesignating
paragraphs (i), (ii) introductory text, (ii)(A) introductory text,
(ii)(A)(1) and (2), and (ii)(B) as paragraphs (1), (2) introductory
text, (2)(i) introductory text, (2)(i)(A) and (B), and (2)(ii),
respectively;
0
D. In the definition of ``Free Trade Agreement country'', removing
``Canada,'';
0
E. In the definitions of ``Free Trade Agreement country end product'',
``Korean end product'', ``Moroccan end product'', ``Panamanian end
product'', and ``Peruvian end product'', redesignating paragraphs (i)
and (ii) as paragraphs (1) and (2), respectively;
0
F. In the definition of ``Qualifying country end product'',
redesignating paragraphs (i), (ii) introductory text, (ii)(A)
introductory text, (ii)(A)(1), (2), and (3), and (ii)(B) as paragraphs
(1), (2) introductory text, (2)(i) introductory text, (2)(i)(A), (B),
and (C), and (2)(ii), respectively; and
[[Page 11008]]
0
G. In the definition of ``South Caucasus/Central and South Asian (SC/
CASA) state end product'', redesignating paragraphs (i) and (ii) as
paragraphs (1) and (2), respectively.
The revisions read as follows:
252.225-7036 Buy American--Free Trade Agreements--Balance of Payments
Program.
* * * * *
Buy American--Free Trade Agreements--Balance of Payments Program--Basic
(Date)
* * * * *
Alternate I. As prescribed in 225.1101(10)(i) and (10)(i)(B), use
the following clause, which uses a different paragraph (c) than the
basic clause:
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate I (Date)
* * * * *
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate II (Date)
* * * * *
Alternate III. As prescribed in 225.1101(10)(i) and (10)(i)(D), use
the following clause, which adds South Caucasus/Central and South Asian
(SC/CASA) state and South Caucasus/Central and South Asian (SC/CASA)
state end product to paragraph (a) and uses a different paragraph (c)
than the basic clause:
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate III (Date)
* * * * *
(c) The Contractor shall deliver under this contract only domestic
end products unless, in its offer, it specified delivery of qualifying
country end products, SC/CASA state end products, or other foreign end
products in the Buy American--Free Trade Agreements--Balance of
Payments Program Certificate--Alternate III provision of the
solicitation. If the Contractor certified in its offer that it will
deliver a qualifying country end product or SC/CASA state end products,
the Contractor shall deliver a qualifying country end product, an SC/
CASA state end product, or, at the Contractor's option, a domestic end
product.
* * * * *
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate IV (Date)
* * * * *
Buy American--Free Trade Agreements--Balance of Payments Program--
Alternate V (Date)
* * * * *
0
10. Amend section 252.225-7045 by--
0
a. Revising the clause date;
0
b. In paragraph (a)--
0
i. In the definition of ``Caribbean Basin country construction
material'', redesignating paragraphs (i) and (ii) as paragraphs (1) and
(2), respectively;
0
ii. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
iii. In the definition of ``Cost of components'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
iv. In the definition of ``Designated country'', redesignating
paragraphs (i), (ii), (iii), and (iv) as paragraphs (1), (2), (3), and
(4), respectively; and in the newly redesignated paragraph (2),
removing ``Canada,'';
0
iv. In the definition of ``Domestic construction material'',
redesignating paragraphs (i), (ii) introductory text, and (ii)(A) and
(B) as paragraphs (1), (2) introductory text, and (2)(i) and (ii),
respectively; and
0
v. In the definitions of ``Free Trade Agreement country construction
material'', ``Least developed country construction material'', and
``WTO GPA country construction material'', redesignating paragraphs (i)
and (ii) as paragraphs (1) and (2), respectively;
0
c. In Alternate I--
0
i. Revising the clause date;
0
ii. In paragraph (a)--
0
A. In the definitions of ``Bahrainian or Mexican construction
material'' and ``Caribbean Basin country construction material'',
redesignating paragraphs (i) and (ii) as paragraphs (1) and (2),
respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
C. In the definition of ``Cost of components'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
D. In the definition of ``Designated country'', redesignating
paragraphs (i), (ii), (iii), and (iv) as paragraphs (1), (2), (3), and
(4), respectively; and in the newly redesignated paragraph (2),
removing ``Canada,'';
0
E. In the definition of ``Domestic construction material'',
redesignating paragraphs (i), (ii) introductory text, and (ii)(A) and
(B) as paragraphs (1), (2) introductory text, and (2)(i) and (ii),
respectively; and
0
F. In the definitions of ``Free Trade Agreement country construction
material'', ``Least developed country construction material'', and
``WTO GPA country construction material'', redesignating paragraphs (i)
and (ii) as paragraphs (1) and (2), respectively; and
0
iii. In paragraph (b), removing ``NAFTA'' and adding ``United States-
Mexico-Canada Agreement'' in its place;
0
d. In Alternate II--
0
i. Revising the clause date; and
0
ii. In paragraph (a)--
0
A. In the definition of ``Caribbean Basin country construction
material'', redesignating paragraphs (i) and (ii) as paragraphs (1) and
(2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (C), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
C. In the definition of ``Cost of components'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
0
D. In the definition of ``Designated country'', redesignating
paragraphs (i), (ii), (iii), and (iv) as paragraphs (1), (2), (3), and
(4), respectively; and in the newly redesignated paragraph (2),
removing ``Canada,'';
0
E. In the definition of ``Domestic construction material'',
redesignating paragraphs (i), (ii) introductory text, and (ii)(A) and
(B) as paragraphs (1), (2) introductory text, and (2)(i) and (ii),
respectively; and
0
F. In the definitions of ``Free Trade Agreement country construction
material'', ``Least developed country construction material'', ``SC/
CASA state construction material'', and ``WTO GPA country construction
material'', redesignating paragraphs (i) and (ii) as paragraphs (1) and
(2), respectively; and
0
e. In Alternate III--
0
i. Revising the clause date;
0
ii. In paragraph (a)--
0
A. In the definition of ``Caribbean Basin country construction
material'', redesignating paragraphs (i) and (ii) as paragraphs (1) and
(2), respectively;
0
B. In the definition of ``Commercially available off-the-shelf (COTS)
item'', redesignating paragraphs (i) introductory text, (i)(A), (B),
and (c), and (ii) as paragraphs (1) introductory text, (1)(i), (ii),
and (iii), and (2), respectively;
0
C. In the definition of ``Cost of components'', redesignating
paragraphs (i) and (ii) as paragraphs (1) and (2), respectively;
[[Page 11009]]
0
D. In the definition of ``Designated country'', redesignating
paragraphs (i), (ii), (iii), and (iv) as paragraphs (1), (2), (3), and
(4), respectively; and in the newly redesignated paragraph (2),
removing ``Canada,'';
0
E. In the definition of ``Domestic construction material'',
redesignating paragraphs (i), (ii) introductory text, (ii)(A) and (B)
as paragraphs (1), (2) introductory text, and (2)(i) and (ii),
respectively; and
0
F. In the definitions of ``Free Trade Agreement country construction
material'', ``Least developed country construction material'', ``SC/
CASA state construction material'', and ``WTO GPA country construction
material'', redesignating paragraphs (i) and (ii) as paragraphs (1) and
(2), respectively; and
0
iii. In paragraph (b) removing ``NAFTA'' and adding ``United States-
Mexico-Canada Agreement'' in its place.
The revisions read as follows:
252.225-7045 Balance of Payments Program--Construction Material Under
Trade Agreements.
* * * * *
Balance of Payments Program--Construction Material Under Trade
Agreements--Basic (Date)
* * * * *
Balance of Payments Program--Construction Material Under Trade
Agreements--Alternate I (Date)
* * * * *
Balance of Payments Program--Construction Material Under Trade
Agreements--Alternate II (Date)
* * * * *
Balance of Payments Program--Construction Material Under Trade
Agreements--Alternate III (Date)
* * * * *
[FR Doc. 2022-04009 Filed 2-25-22; 8:45 am]
BILLING CODE 5001-06-P
