Federal Acquisition Regulation; Federal Acquisition Circular 2022-05; Small Entity Compliance Guide, 12798-12799 [2022-04174]
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12798
Federal Register / Vol. 87, No. 44 / Monday, March 7, 2022 / Rules and Regulations
revising the first sentence of paragraph
(1)(ii)(A);
■ d. Revising paragraph (b)(4)(i); and
■ e. Adding Alternate II.
The revisions and additions read as
follows:
52.225–11 Buy American—Construction
Materials Under Trade Agreements.
*
*
*
*
*
Buy American—Construction Materials
Under Trade Agreements (OCT 2022)
(a) * * *
Critical component means a component
that is mined, produced, or manufactured in
the United States and deemed critical to the
U.S. supply chain. The list of critical
components is at FAR 25.105.
Critical item means a domestic
construction material or domestic end
product that is deemed critical to U.S. supply
chain resiliency. The list of critical items is
at FAR 25.105.
*
*
*
*
*
Domestic construction material * * *
(1) * * *
(ii) * * *
(A) The cost of its components mined,
produced, or manufactured in the United
States exceeds 60 percent of the cost of all
its components, except that the percentage
will be 65 percent for items delivered in
calendar years 2024 through 2028 and 75
percent for items delivered starting in
calendar year 2029. * * *
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*
*
*
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Alternate II (OCT 2022). As prescribed
in 25.1102(c)(4) substitute the following
sentence for the first sentence of
paragraph (1)(ii)(A) of the definition of
domestic construction material in
paragraph (a):
*
(b) * * *
(4) * * *
(i) The cost of domestic construction
material would be unreasonable.
(A) For domestic construction material that
is not a critical item or does not contain
critical components. (1) The cost of a
particular domestic construction material
subject to the restrictions of the Buy
American statute is unreasonable when the
cost of such material exceeds the cost of
foreign material by more than 20 percent;
(2) For construction material that is not a
COTS item and does not consist wholly or
predominantly of iron or steel or a
combination of both, if the cost of a
particular domestic construction material is
determined to be unreasonable or there is no
domestic offer received, and the low offer is
for foreign construction material that does
not exceed 55 percent domestic content, the
Contracting Officer will treat the lowest offer
of foreign construction material that is
manufactured in the United States and
exceeds 55 percent domestic content as a
domestic offer and determine whether the
cost of that offer is unreasonable by applying
the evaluation factor listed in paragraph
(b)(4)(i)(A)(1) of this clause.
(3) The procedures in paragraph
(b)(4)(i)(A)(2) of this clause will no longer
apply as of January 1, 2030.
(B) For domestic construction material that
is a critical item or contains critical
components. (1) The cost of a particular
domestic construction material that is a
critical item or contains critical components,
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18:01 Mar 04, 2022
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subject to the requirements of the Buy
American statute, is unreasonable when the
cost of such material exceeds the cost of
foreign material by more than 20 percent plus
the additional preference factor identified for
the critical item or construction material
containing critical components listed at FAR
25.105.
(2) For construction material that does not
consist wholly or predominantly of iron or
steel or a combination of both, if the cost of
a particular domestic construction material is
determined to be unreasonable or there is no
domestic offer received, and the low offer is
for foreign construction material that does
not exceed 55 percent domestic content, the
Contracting Officer will treat the lowest offer
of foreign construction material that is
manufactured in the United States and
exceeds 55 percent domestic content as a
domestic offer, and determine whether the
cost of that offer is unreasonable by applying
the evaluation factor listed in paragraph
(b)(4)(i)(B)(1) of this clause.
(3) The procedures in paragraph
(b)(4)(i)(B)(2) of this clause will no longer
apply as of January 1, 2030.
Fairness Act of 1996. It consists of a
summary of the rule appearing in
Federal Acquisition Circular (FAC)
2022–05, which amends the Federal
Acquisition Regulation (FAR).
Interested parties may obtain further
information regarding this rule by
referring to FAC 2022–05, which
precedes this document.
DATES: March 7, 2022.
ADDRESSES: The FAC, including the
SECG, is available at https://
www.regulations.gov.
Ms.
Mahruba Uddowla, Procurement
Analyst, at 703–605–2868 or by email at
mahruba.uddowla@gsa.gov, for
clarification of content. For information
pertaining to status or publication
schedules, contact the Regulatory
Secretariat Division at 202–501–4755 or
GSARegSec@gsa.gov. Please cite FAC
2022–05, FAR Case 2021–008.
FOR FURTHER INFORMATION CONTACT:
RULE LISTED IN FAC 2022–05
Subject
Amendments to the FAR Buy
American Act—Requirements
FAR case
2021–008
BILLING CODE 6820–EP–P
A
summary for the FAR rule follows. For
the actual revisions and/or amendments
made by this FAR rule, refer to the
specific subject set forth in the
document following this summary. FAC
2022–05 amends the FAR as follows:
DEPARTMENT OF DEFENSE
Amendments to the FAR Buy American
Act Requirements (FAR Case 2021–008)
(A) The cost of its components mined,
produced, or manufactured in the United
States exceeds ll percent of the cost of all
its components. [Contracting officer to insert
the percentage.]
[FR Doc. 2022–04173 Filed 3–4–22; 8:45 am]
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Chapter 1
[Docket No. FAR–2022–0051, Sequence No.
2]
Federal Acquisition Regulation;
Federal Acquisition Circular 2022–05;
Small Entity Compliance Guide
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Small Entity Compliance Guide
(SECG).
AGENCY:
This document is issued
under the joint authority of DoD, GSA,
and NASA. This Small Entity
Compliance Guide has been prepared in
accordance with section 212 of the
Small Business Regulatory Enforcement
SUMMARY:
PO 00000
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SUPPLEMENTARY INFORMATION:
This final rule amends the Federal
Acquisition Regulation (FAR) to
implement section 8 of E.O. 14005,
Ensuring the Future Is Made in All of
America by All of America’s Workers.
Upon the October 25, 2022, effective
date, this final FAR rule changes the
domestic content threshold to 60
percent immediately, then to 65 percent
for items delivered starting in calendar
year 2024, and then to 75 percent for
items delivered starting in calendar year
2029. While a supplier that is awarded
a contract with a period of performance
that spans this schedule of domestic
content threshold increases will be
required to comply with each increased
threshold for the items in the year of
delivery, this rule allows for the agency
senior procurement executive to apply
an alternate domestic content test under
which the contractor would be required
to comply with the domestic content
threshold in place at time of award for
the entire life of the contract.
This final rule also creates a fallback
threshold that would allow for products
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Federal Register / Vol. 87, No. 44 / Monday, March 7, 2022 / Rules and Regulations
and construction material meeting a 55
percent domestic content threshold to
qualify as ‘‘domestic’’ under certain
circumstances.
In addition, the final rule creates a
framework for application of an
enhanced price preference for a
domestic product/domestic construction
material that is considered a critical
item or made up of critical components.
The list of critical items and critical
components, along with the associated
enhanced price preference, will be
incorporated in the FAR through
separate rulemaking.
William F. Clark,
Director, Office of Government-wide
Acquisition Policy, Office of Acquisition
Policy, Office of Government-wide Policy.
[FR Doc. 2022–04174 Filed 3–4–22; 8:45 am]
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]]>Agencies
[Federal Register Volume 87, Number 44 (Monday, March 7, 2022)]
[Rules and Regulations]
[Pages 12798-12799]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-04174]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Chapter 1
[Docket No. FAR-2022-0051, Sequence No. 2]
Federal Acquisition Regulation; Federal Acquisition Circular
2022-05; Small Entity Compliance Guide
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Small Entity Compliance Guide (SECG).
-----------------------------------------------------------------------
SUMMARY: This document is issued under the joint authority of DoD, GSA,
and NASA. This Small Entity Compliance Guide has been prepared in
accordance with section 212 of the Small Business Regulatory
Enforcement Fairness Act of 1996. It consists of a summary of the rule
appearing in Federal Acquisition Circular (FAC) 2022-05, which amends
the Federal Acquisition Regulation (FAR). Interested parties may obtain
further information regarding this rule by referring to FAC 2022-05,
which precedes this document.
DATES: March 7, 2022.
ADDRESSES: The FAC, including the SECG, is available at https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Ms. Mahruba Uddowla, Procurement
Analyst, at 703-605-2868 or by email at [email protected], for
clarification of content. For information pertaining to status or
publication schedules, contact the Regulatory Secretariat Division at
202-501-4755 or [email protected]. Please cite FAC 2022-05, FAR Case
2021-008.
Rule Listed in FAC 2022-05
------------------------------------------------------------------------
Subject FAR case
------------------------------------------------------------------------
Amendments to the FAR Buy American Act--Requirements........ 2021-008
------------------------------------------------------------------------
SUPPLEMENTARY INFORMATION: A summary for the FAR rule follows. For the
actual revisions and/or amendments made by this FAR rule, refer to the
specific subject set forth in the document following this summary. FAC
2022-05 amends the FAR as follows:
Amendments to the FAR Buy American Act Requirements (FAR Case 2021-008)
This final rule amends the Federal Acquisition Regulation (FAR) to
implement section 8 of E.O. 14005, Ensuring the Future Is Made in All
of America by All of America's Workers. Upon the October 25, 2022,
effective date, this final FAR rule changes the domestic content
threshold to 60 percent immediately, then to 65 percent for items
delivered starting in calendar year 2024, and then to 75 percent for
items delivered starting in calendar year 2029. While a supplier that
is awarded a contract with a period of performance that spans this
schedule of domestic content threshold increases will be required to
comply with each increased threshold for the items in the year of
delivery, this rule allows for the agency senior procurement executive
to apply an alternate domestic content test under which the contractor
would be required to comply with the domestic content threshold in
place at time of award for the entire life of the contract.
This final rule also creates a fallback threshold that would allow
for products
[[Page 12799]]
and construction material meeting a 55 percent domestic content
threshold to qualify as ``domestic'' under certain circumstances.
In addition, the final rule creates a framework for application of
an enhanced price preference for a domestic product/domestic
construction material that is considered a critical item or made up of
critical components. The list of critical items and critical
components, along with the associated enhanced price preference, will
be incorporated in the FAR through separate rulemaking.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
[FR Doc. 2022-04174 Filed 3-4-22; 8:45 am]
BILLING CODE 6820-EP-P
