Federal Acquisition Regulation: United States-Mexico-Canada Agreement, 73890-73894 [2022-25960]

Download as PDF 73890 Federal Register / Vol. 87, No. 230 / Thursday, December 1, 2022 / Rules and Regulations following these item summaries. FAC 2023–01 amends the FAR as follows: Item I—Update to Title 10 Citations (FAR Case 2022–005) This final rule amends the Federal Acquisition Regulation to update statutory references to Title 10 of the United States Code, which were revised by Title XVIII of the William M. (Mac) Thornberry National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2021 (Pub. L. 116–283), Transfer and Reorganization of Defense Acquisition Statutes, and Title XVII of the NDAA for FY 2022 (Pub. L. 117–81), Technical Amendments Related to the Transfer and Reorganization of Defense Acquisition Statutes. The final rule will not have a significant economic impact on a substantial number of small entities because it simply updates statutory references in existing regulations. Item II—Effective Communication between Government and Industry (FAR Case 2016–005) khammond on DSKJM1Z7X2PROD with RULES3 This final rule implements the United States-Mexico-Canada Agreement Implementation Act (Pub. L. 116–113). The rule makes changes in the FAR to conform to Chapter 13 of the United States-Mexico-Canada Agreement (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, Jkt 259001 Administrative changes are made at FAR 17.701, and 53.300. William F. Clark, Director, Office of Government-Wide Acquisition Policy, Office of Acquisition Policy, Office of Government-Wide Policy. BILLING CODE 6820–EP–P Item III—United States-Mexico-Canada Agreement (FAR Case 2020–014) 17:56 Nov 30, 2022 Item IV—Technical Amendments [FR Doc. 2022–25962 Filed 11–30–22; 8:45 am] This final rule amends the FAR to implement section 887 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2016 (Pub. L. 114–92). This rule clarifies that agency acquisition personnel are permitted and encouraged to engage in responsible and constructive exchanges with industry, so long as those exchanges are consistent with existing laws and regulations, and do not promote an unfair competitive advantage to particular firms. DoD, GSA, and NASA do not expect this final rule to have a significant economic impact on a substantial number of small entities. Any effect to small businesses should be positive. Small businesses will benefit from better communication with the Government. VerDate Sep<11>2014 Canada is no longer a Free Trade Agreement country. Therefore, references to Canada as a Free Trade Agreement country in the FAR are deleted, including the $25,000 threshold. DoD, GSA, and NASA do not expect this rule to have a significant economic impact on a substantial number of small entities. The effect on contracting officers is expected to be minimal as they will continue to apply the rule implementing the USMCA to contracts to which the North American Free Trade Agreement (NAFTA) applied, at the higher threshold for Mexico. DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 48 CFR Parts 4, 13, 18, 22, 25, 27, and 52 [FAC 2023–01; FAR Case 2020–014; Item III; Docket No. FAR–2020–0014; Sequence No. 1] RIN 9000–AO14 GSARegSec@gsa.gov. Please cite FAC 2023–01, FAR Case 2020–014. SUPPLEMENTARY INFORMATION: I. Background DoD, GSA, and NASA published a proposed rule at 86 FR 70808 on December 13, 2021, to implement the United States-Mexico-Canada Agreement Implementation Act (Pub. L. 116–113). On June 12, 2017, the President announced his intention to commence negotiations with Canada and Mexico to modernize the North American Free Trade Agreement (NAFTA). On November 30, 2018, the Governments of the United States, Mexico, and Canada (the Parties) signed the protocol replacing NAFTA with the United States-Mexico-Canada Agreement (USMCA). On December 10, 2019, the Parties signed the protocol of amendment to the USMCA. On January 29, 2020, the President signed into law the United States-Mexico-Canada Agreement Implementation Act, through which Congress approved the USMCA. On July 1, 2020, the USMCA entered into full force. (See U.S. Trade Representative Determination published June 29, 2020, 85 FR 39037.) Although Canada is still a designated country under the World Trade Organization Government Procurement Agreement, Canada is no longer a Free Trade Agreement country, because chapter 13 of the USMCA (government procurement) applies only to the United States and Mexico. Therefore, references to Canada as a Free Trade Agreement country are deleted, including the $25,000 threshold. Mexico thresholds remain unchanged. Federal Acquisition Regulation: United States-Mexico-Canada Agreement There were no comments submitted on the proposed rule. AGENCY: Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Final rule. II. Discussion and Analysis DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to implement the United States-MexicoCanada Agreement Implementation Act. DATES: Effective December 30, 2022. FOR FURTHER INFORMATION CONTACT: Mr. Michael O. Jackson, Procurement Analyst, at 202–208–4949 or by email at michaelo.jackson@gsa.gov, for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division at 202–501–4755 or There were no public comments for the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (the Councils) to review. Therefore, there are no changes in the final rule from the proposed, except for baseline updates. The baseline updates include changes made in FAC 2022–03, FAR case 2022–001, Trade Agreements Thresholds, to incorporate the revised thresholds for application of the World Trade Organization Government Procurement Agreement and the Free Trade Agreements, as determined by the United States Trade Representative, effective on January 1, 2022. The final rule also includes baseline updates published in FAC 2022–05 for FAR case 2021–008, effective on October 25, 2022. SUMMARY: PO 00000 Frm 00004 Fmt 4701 Sfmt 4700 E:\FR\FM\01DER3.SGM 01DER3 Federal Register / Vol. 87, No. 230 / Thursday, December 1, 2022 / Rules and Regulations III. Applicability to Contracts at or Below the Simplified Acquisition Threshold (SAT) and for Commercial Products (Including Commercially Available Off-the-Shelf (COTS) Items) or for Commercial Services This final rule does not create any new provisions or clauses, nor does it change the applicability of any existing provisions or clauses included in solicitations and contracts valued at or below the SAT, or for commercial products (including COTS items) and commercial services. IV. Executive Orders 12866 and 13563 Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is not a significant regulatory action and, therefore, was not subject to review under Section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. V. Congressional Review Act As required by the Congressional Review Act (5 U.S.C. 801–808) before an interim or final rule takes effect, DoD, GSA, and NASA will send the rule and the ‘‘Submission of Federal Rules Under the Congressional Review Act’’ form to each House of the Congress and to the Comptroller General of the United States. A major rule cannot take effect until 60 days after it is published in the Federal Register. The Office of Information and Regulatory Affairs (OIRA) in the Office of Management and Budget has determined that this is not a major rule under 5 U.S.C. 804. khammond on DSKJM1Z7X2PROD with RULES3 VI. Regulatory Flexibility Act DoD, GSA, and NASA have prepared a Final Regulatory Flexibility Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5 U.S.C. 601–612. The FRFA is summarized as follows: The objective of this rule is to implement the USMCA Implementation Act. The rule makes changes in the FAR to conform to Chapter 13 of the USMCA, which sets forth certain obligations between the United States and Mexico with respect to Government procurement of goods and services, as specified in Annex 13–A of the USMCA. Chapter 13 of the USMCA applies only between Mexico and the United States and does not cover Canada. Although Canada is VerDate Sep<11>2014 17:56 Nov 30, 2022 Jkt 259001 still a designated country under the World Trade Organization Government Procurement Agreement, Canada is no longer a Free Trade Agreement country, because chapter 13 of the USMCA (government procurement) applies only to the United States and Mexico. Therefore, references to Canada as a Free Trade Agreement country in the FAR are deleted, including the $25,000 threshold. Canadian end products will still receive nondiscriminatory treatment with respect to the Buy American statute but starting at $183,000, rather than $25,000. Mexico thresholds remain unchanged. The legal basis for these changes is Public Law 116–113. There were no public comments submitted in response to the initial regulatory flexibility analysis. DoD, GSA, and NASA do not expect this rule to have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601–612, because, although the rule removes Canada as a Free Trade Agreement designated country and deletes the associated $25,000 threshold, Canada remains a World Trade Organization Government Procurement Agreement designated country, at $183,000. The Mexico thresholds remain unchanged. Based on fiscal year 2019 data from the Federal Procurement Data System, 129,308 small businesses were awarded Government contracts. Impacts to small businesses are anticipated to be negligible based on the data analysis approved under Office of Management and Budget (OMB) Control Number 9000–0024, Buy American, Trade Agreements, and Duty-Free Entry. Alternate I of the clause, FAR 52.225–3, Buy American—Free Trade Agreements—Israeli Trade Act, and Alternate I of the provision, FAR 52.225–4, Buy American—Free Trade Agreements—Israeli Trade Act Certificate, are deleted. The Trade Agreements clause at FAR 52.225–5, the Buy American— Construction Materials under Trade Agreements clause at FAR 52.225–11, and the FAR 52.225–23 equivalent for the Recovery Act are revised to delete references to Canada as a Free Trade Agreement country. In regard to FAR 52.225–23, additional construction awards are not anticipated using Recovery Act funds. This final rule does not include any new reporting, recordkeeping, or other compliance requirements for small businesses. The rule does not impose additional information collection requirements to the paperwork burden previously approved by OMB under the Paperwork Reduction Act (44 U.S.C. 3501– 3521), Control Number 9000–0024, Buy American, Trade Agreements, and Duty-Free Entry. There are no known significant alternative approaches to the final rule. Interested parties may obtain a copy of the FRFA from the Regulatory Secretariat Division. The Regulatory Secretariat Division has submitted a copy of the FRFA to the Chief Counsel for Advocacy of the Small Business Administration. PO 00000 Frm 00005 Fmt 4701 Sfmt 4700 73891 VII. Paperwork Reduction Act The Paperwork Reduction Act (44 U.S.C. 3501–3521) does apply. However, these changes to the FAR do not impose additional information collection requirements to the paperwork burden previously approved by the Office of Management and Budget Control Number 9000–0024, Buy American, Trade Agreements, and DutyFree Entry. List of Subjects in 48 CFR Parts 4, 13, 18, 22, 25, 27, and 52 Government procurement. William F. Clark, Director, Office of Government-Wide Acquisition Policy, Office of Acquisition Policy, Office of Government-Wide Policy. Therefore, DoD, GSA, and NASA amend 48 CFR parts 4, 13, 18, 22, 25, 27, and 52 as set forth below: 1. The authority citation for 48 CFR parts 4, 13, 18, 22, 25, 27, and 52 continues to read as follows: ■ Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113. PART 4—ADMINISTRATIVE AND INFORMATION MATTERS 4.1202 [Amended] 2. Amend section 4.1202 by removing from paragraph (a)(28) the phrase ‘‘Alternates I, II, and III’’ and adding ‘‘Alternates II and III’’ in its place. ■ PART 13—SIMPLIFIED ACQUISITION PROCEDURES 13.302–5 [Amended] 3. Amend section 13.302–5, in paragraph (d)(3)(i) by removing the word ‘‘FAR’’ twice. ■ PART 18—EMERGENCY ACQUISITIONS 18.120 ■ [Removed and Reserved] 4. Remove and reserve section 18.120. PART 22—APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS 22.1503 [Amended] 5. Amend section 22.1503 by— a. Removing paragraph (b)(1); ■ b. Redesignating paragraphs (b)(2) through (4) as paragraphs (b)(1) through (3); and ■ c. Adding ‘‘Canada,’’ in newly redesignated paragraph (b)(3) between the words ‘‘Bulgaria’’ and ‘‘Croatia’’. ■ ■ E:\FR\FM\01DER3.SGM 01DER3 73892 Federal Register / Vol. 87, No. 230 / Thursday, December 1, 2022 / Rules and Regulations 22.1505 [Amended] 6. Amend section 22.1505 in paragraph (a) by removing ‘‘$25,000’’ and adding ‘‘$50,000’’ in its place. ■ PART 25—FOREIGN ACQUISITION 25.003 [Amended] 7. Amend section 25.003 by removing ‘‘Canada,’’ from paragraph (2) of the definition of ‘‘Designated country’’ and from the definition of ‘‘Free Trade Agreement country’’. ■ 8. Amend section 25.400 by revising paragraph (a)(2)(i) to read as follows: ■ 25.400 Scope of subpart. (a) * * * ....................................... * * * (2) * * * (i) USMCA (United States-MexicoCanada Agreement, as approved by Congress in the United States-MexicoCanada Agreement Implementation Act (Government Procurement Agreement applicable only to the United States and Mexico) (Pub. L. 116–113) (19 U.S.C. chapter 29 (sections 4501–4732)); * * * * * ■ 9. Amend section 25.401 by— ■ a. Removing ‘‘and’’ from the end of paragraph (a)(4); ■ b. Removing ‘‘13.501(a).’’ from paragraph (a)(5) and adding ‘‘13.501(a); and’’ in its place; ■ c. Adding paragraph (a)(6); and .............................................................................. * * * * * * d. In the table of paragraph (b), revising the heading of the third column. The addition and revision read as follows: ■ 25.401 Exceptions. (a) * * * (6) Goods and services specifically excluded under individual trade agreements, such as exceptions negotiated by the U.S. Trade Representative for particular agencies. See the agency supplementary regulations. (b) * * * * * Bahrain FTA, CAFTA– DR, Chile FTA, Columbia FTA, USMCA, Oman FTA, Panama FTA, and Peru FTA. * 10. Amend section 25.402 by revising table 1 to paragraph (b) to read as follows: ■ ....................................... * 25.402 * * General. * * (b) * * * * * TABLE 1 TO PARAGRAPH (b) Supply contract (equal to or exceeding) Trade agreement WTO GPA .................................................................................................................................... FTAs: Australia FTA ........................................................................................................................ Bahrain FTA ......................................................................................................................... CAFTA–DR (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua) ......................................................................................................................... Chile FTA .............................................................................................................................. Colombia FTA ....................................................................................................................... Korea FTA ............................................................................................................................ Morocco FTA ........................................................................................................................ USMCA:. —Mexico ........................................................................................................................ Oman FTA ............................................................................................................................ Panama FTA ........................................................................................................................ Peru FTA .............................................................................................................................. Singapore FTA ..................................................................................................................... Israeli Trade Act ................................................................................................................... * * 25.504–1 * * * [Amended] 11. Amend section 25.504–1 by removing ‘‘$25,000’’ from paragraphs (a)(2) and (c)(2) and adding ‘‘$50,000’’ in its place. khammond on DSKJM1Z7X2PROD with RULES3 ■ 25.1101 [Amended] 12. Amend section 25.1101 by— ■ a. Removing ‘‘$25,000’’ from paragraphs (a)(1) introductory text and ■ VerDate Sep<11>2014 17:56 Nov 30, 2022 Jkt 259001 (b)(1)(i)(A) and adding ‘‘$50,000’’ in its place, wherever it appears; ■ b. Removing paragraph (b)(1)(ii); ■ c. Redesignating paragraphs (b)(1)(iii) through (v) as paragraphs (b)(1)(ii) through (iv); ■ d. Removing from the newly redesignated paragraph (b)(1)(ii) the phrase ‘‘Alternate II’’ and adding the phrase ‘‘Alternate II’’ in its place; ■ e. Removing paragraph (b)(2)(ii); PO 00000 Frm 00006 Fmt 4701 Sfmt 4700 Service contract (equal to or exceeding) Construction contract (equal to or exceeding) $183,000 $183,000 $7,032,000 92,319 183,000 92,319 183,000 7,032,000 12,001,460 92,319 92,319 92,319 100,000 183,000 92,319 92,319 92,319 100,000 183,000 7,032,000 7,032,000 7,032,000 7,032,000 7,032,000 92,319 183,000 183,000 183,000 92,319 50,000 92,319 183,000 183,000 183,000 92,319 ........................ 12,001,460 12,001,460 7,032,000 7,032,000 7,032,000 ........................ f. Redesignating paragraphs (b)(2)(iii) and (iv) as paragraphs (b)(2)(ii) and (iii); and ■ g. Removing from the newly redesignated paragraph (b)(2)(ii) the phrase ‘‘Alternate II’’ and adding the phrase ‘‘Alternate II’’ in its place. ■ PART 27—PATENTS, DATA, AND COPYRIGHTS 13. Revise section 27.204–1 to read as follows: ■ E:\FR\FM\01DER3.SGM 01DER3 Federal Register / Vol. 87, No. 230 / Thursday, December 1, 2022 / Rules and Regulations 27.204–1 Use of patented technology under the United States-Mexico-Canada Agreement. When questions arise with regard to use of patented technology under the United States-Mexico-Canada Agreement, the contracting officer should consult with legal counsel. Note that Article 20.6(a) of the Agreement discusses public health and pharmaceuticals. ■ 14. Amend section 27.204–2 by adding a sentence to the end of the paragraph to read as follows: 27.204–2 Use of patented technology under the General Agreement on Tariffs and Trade (GATT). * * * Article 20.40 of the United States-Mexico-Canada Agreement preserves parties’ rights under Article 31. 15. Amend section 52.204–8 by revising the date of the provision and paragraph (c)(1)(xxi) to read as follows: 52.204–8 Annual Representations and Certifications. * * * Annual Representations and Certifications (DEC 2022) * * * * * (c)(1) * * * (xxi) 52.225–4, Buy American-Free Trade Agreements-Israeli Trade Act Certificate. (Basic, Alternates II and III.) This provision applies to solicitations containing the clause at 52.225–3. (A) If the acquisition value is less than $50,000, the basic provision applies. (B) If the acquisition value is $50,000 or more but is less than $92,319, the provision with its Alternate II applies. (C) If the acquisition value is $92,319 or more but is less than $100,000, the provision with its Alternate III applies. * * * * ■ 16. Amend section 52.212–3 by— ■ a. Revising the date of the provision; ■ b. Removing paragraph (g)(2); ■ c. Redesignating paragraphs (g)(3) through (5) as paragraphs (g)(2) through (4); and ■ d. Revising the newly redesignated paragraph (g)(2). The revisions read as follows: khammond on DSKJM1Z7X2PROD with RULES3 * 52.212–3 Offeror Representations and Certifications—Commercial Products and Commercial Services. * * * * * Offeror Representations and Certifications—Commercial Products and Commercial Services (DEC 2022) * * * VerDate Sep<11>2014 * * 17:56 Nov 30, 2022 Jkt 259001 [List as necessary] * * * * 17. Amend section 52.212–5 by— a. Revising the date of the clause; b. Removing from paragraph (b)(28) the date ‘‘(JAN 2022)’’ and adding ‘‘(DEC 2022)’’ in its place; ■ c. Revising paragraphs (b)(49)(i) and (ii); ■ d. Removing from paragraph (b)(49)(iii) the date ‘‘(JAN 2021)’’ and adding ‘‘(DEC 2022)’’ in its place; and ■ e. Removing from paragraph (b)(50) the date ‘‘(OCT 2019)’’ and adding ‘‘(DEC 2022)’’ in its place. The revisions read as follows: 52.212–5 Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Products and Commercial Services. * * * * * Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Products and Commercial Services (DEC 2022) * * * * * (b) * * * (49)(i) 52.225–3, Buy American—Free Trade Agreements—Israeli Trade Act (DEC 2022) (19 U.S.C. 3301 note, 19 U.S.C. 2112 note, 19 U.S.C. 3805 note, 19 U.S.C. 4001 note, 19 U.S.C. chapter 29 (sections 4501– 4732), Public Law 103–182, 108–77, 108–78, 108–286, 108–302, 109–53, 109–169, 109– 283, 110–138, 112–41, 112–42, and 112–43. (ii) Alternate I [Reserved]. * * * * * 18. Amend section 52.213–4 by— a. Revising the date of the clause; b. In paragraph (b)(1)(ii)— i. Removing the date ‘‘(JAN 2022)’’ and adding ‘‘(DEC 2022)’’ in its place; and ■ ii. Removing the phrase ‘‘FAR’’; ■ c. In paragraph (b)(1)(xvii)(A) introductory text removing the phrase ‘‘FAR’’; and ■ d. Removing ‘‘$25,000’’ from paragraph (b)(1)(xvii)(A)(2) and adding ‘‘$50,000’’ in its place. ■ ■ ■ ■ PO 00000 Frm 00007 The revision reads as follows: 52.213–4 Terms and Conditions— Simplified Acquisitions (Other Than Commercial Products and Commercial Services). * * * * * Terms and Conditions—Simplified Acquisitions (Other Than Commercial Products and Commercial Services) (DEC 2022) * * * * * 19. Amend section 52.222–19 by— a. Revising the date of the clause; b. Removing paragraph (a)(1); c. Redesignating paragraphs (a)(2) through (4) as paragraphs (a)(1) through (3); and ■ d. Adding ‘‘Canada,’’ in newly redesignated paragraph (a)(3) between ‘‘Bulgaria,’’ and ‘‘Croatia’’. The revision reads as follows: ■ ■ ■ ■ ■ ■ ■ ■ * Line Item No. * PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES * (g) * * * (2) Buy American—Free Trade Agreements—Israeli Trade Act Certificate, Alternate II. If Alternate II to the clause at FAR 52.225–3 is included in this solicitation, substitute the following paragraph (g)(1)(ii) for paragraph (g)(1)(ii) of the basic provision: (g)(1)(ii) The offeror certifies that the following supplies are Israeli end products as defined in the clause of this solicitation entitled ‘‘Buy American—Free Trade Agreements—Israeli Trade Act’’: Israeli End Products: 73893 Fmt 4701 Sfmt 4700 52.222–19 Child Labor—Cooperation With Authorities and Remedies. * * * * * Child Labor—Cooperation With Authorities and Remedies (DEC 2022) * * * * * 20. Amend section 52.225–3 by— a. Revising the date of the clause; b. In paragraph (a), in the definition of ‘‘Free Trade Agreement country’’ removing ‘‘Canada,’’; ■ c. Removing and reserving Alternate I; ■ d. Revising Alternate II; ■ e. Removing from the introductory text of Alternate III ‘‘25.1101(b)(1)(iv)’’ and adding ‘‘25.1101(b)(1)(iii)’’ in its place; and ■ f. Removing from the introductory text of Alternate IV ‘‘25.1101(b)(1)(v)’’ and adding ‘‘25.1101(b)(1)(iv)’’ in its place. The revisions read as follows: ■ ■ ■ 52.225–3 Buy American—Free Trade Agreements—Israeli Trade Act. * * * * * Buy American—Free Trade Agreements—Israeli Trade Act (DEC 2022) * * * * * Alternate II (DEC 2022). As prescribed in 25.1101(b)(1)(ii), substitute the following paragraph (c) for paragraph (c) of the basic clause: (c) Delivery of end products. 41 U.S.C. chapter 83 provides a preference for domestic end products for supplies acquired for use in the United States. In accordance with 41 U.S.C. 1907, the domestic content test of the Buy American statute is waived for an end product that is a COTS item (see 12.505(a)(1)), except that for an end product that consists wholly or predominantly of iron or steel or a combination of both, the domestic content test is applied only to the iron and steel content of the end product, E:\FR\FM\01DER3.SGM 01DER3 73894 Federal Register / Vol. 87, No. 230 / Thursday, December 1, 2022 / Rules and Regulations excluding COTS fasteners. In addition, the Contracting Officer has determined that the Israeli Trade Act applies to this acquisition. Unless otherwise specified, this trade agreement applies to all items in the Schedule. The Contractor shall deliver under this contract only domestic end products except to the extent that, in its offer, it specified delivery of foreign end products in the provision entitled ‘‘Buy American—Free Trade Agreements—Israeli Trade Act.’’ If the Contractor specified in its offer that the Contractor would supply an Israeli end product, then the Contractor shall supply an Israeli end product or, at the Contractor’s option, a domestic end product. * * * * * 21. Amend section 52.225–4 by— a. Removing and reserving Alternate I; b. Revising Alternate II; and c. In Alternate III removing from the introductory text ‘‘25.1101(b)(2)(iv)’’ and adding ‘‘25.1101(b)(2)(iii)’’ in its place. The revisions read as follows: ■ ■ ■ ■ 52.225–4 Buy American—Free Trade Agreements—Israeli Trade Act Certificate. * * * * * Alternate II (DEC 2022). As prescribed in 25.1101(b)(2)(ii), substitute the following paragraph (b) for paragraph (b) of the basic provision: (b) The offeror certifies that the following supplies are Israeli end products as defined in the clause of this solicitation entitled ‘‘Buy American— Free Trade Agreements—Israeli Trade Act—Balance of Payments Program’’: Israeli End Products [List as necessary] * * * * * ■ 22. Amend section 52.225–5 by— ■ a. Revising the date of the clause; and ■ b. In paragraph (a), in the definition ‘‘Designated country’’ removing ‘‘Canada,’’ from paragraph (2). The revision reads as follows: * * * * * * * * * 23. Amend section 52.225–11 by— a. Revising the date of the clause; b. In paragraph (a), in the definition of ‘‘Designated country’’, removing ‘‘Canada,’’ from paragraph (2); ■ c. Revising the date of Alternate I; and ■ d. In paragraph (b)(1) of Alternate I: ■ i. Removing the phrase ‘‘FAR’’; and ■ ii. Removing the phrase ‘‘NAFTA’’ and adding ‘‘United States-MexicoCanada Agreement’’ in its place. ■ ■ ■ khammond on DSKJM1Z7X2PROD with RULES3 * * * * Buy American—Construction Materials Under Trade Agreements (DEC 2022) * * * * * Alternate I (DEC 2022). * * * * * * * * 24. Amend section 52.225–23 by— a. Revising the date of the clause; and b. In paragraph (a), in the definitions of ‘‘Designated country’’ and ‘‘Recovery Act designated country’’, removing ‘‘Canada,’’ from paragraphs (2). The revisions read as follows: ■ ■ ■ 52.225–23 Required Use of American Iron, Steel, and Manufactured Goods—Buy American Statute—Construction Materials Under Trade Agreements. * * * * * Required Use of American Iron, Steel, and Manufactured Goods—Buy American Statute—Construction Materials Under Trade Agreements (DEC 2022) * * * * * [FR Doc. 2022–25960 Filed 11–30–22; 8:45 am] BILLING CODE 6820–14–P DEPARTMENT OF DEFENSE GENERAL SERVICES ADMINISTRATION 17:56 Nov 30, 2022 48 CFR Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, and 53 [FAC 2023–01; FAR Case 2022–005; Item I; Docket No. FAR–2022–0005, Sequence No. 1] RIN 9000–AO42 Jkt 259001 Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). ACTION: Final rule. AGENCY: Trade Agreements (DEC 2022) VerDate Sep<11>2014 * Federal Acquisition Regulation: Update to Title 10 Citations Trade Agreements. * 52.225–11 Buy American—Construction Materials Under Trade Agreements. NATIONAL AERONAUTICS AND SPACE ADMINISTRATION Line Item No. 52.225–5 The revisions read as follows: DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to update statutory references to Title 10 of the United States Code. DATES: Effective: December 30, 2022. FOR FURTHER INFORMATION CONTACT: Ms. Carrie Moore, Procurement Analyst, at SUMMARY: PO 00000 Frm 00008 Fmt 4701 Sfmt 4700 571–300–5917 or by email at carrie.moore@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 2023–01, FAR Case 2022–005. SUPPLEMENTARY INFORMATION: I. Background DoD, GSA, and NASA are amending the FAR to update numerous statutory references to Title 10 of the United States Code, which were revised by Title XVIII of the William M. (Mac) Thornberry National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2021 (Pub. L. 116–283), Transfer and Reorganization of Defense Acquisition Statutes, and Title XVII of the NDAA for FY 2022 (Pub. L. 117–81), Technical Amendments Related to the Transfer and Reorganization of Defense Acquisition Statutes. II. Publication of This Final Rule for Public Comment Is Not Required by Statute The statute that applies to the publication of the FAR is 41 U.S.C. 1707. Subsection (a)(1) of 41 U.S.C. 1707 requires that a procurement policy, regulation, procedure, or form (including an amendment or modification thereof) must be published for public comment if it relates to the expenditure of appropriated funds and has either a significant effect beyond the internal operating procedures of the agency issuing the policy, regulation, procedure, or form, or has a significant cost or administrative impact on contractors or offerors. This final rule is not required to be published for public comment, because this rule only updates statutory references in the existing regulations, makes no substantive changes to those regulations, and has no significant cost or administrative impact on contractors or offerors. III. Applicability to Contracts at or Below the Simplified Acquisition Threshold (SAT) and for Commercial Products (Including Commercially Available Off-the-Shelf (COTS) Items) or for Commercial Services This rule does not create any new solicitation provisions or contract clauses. It does not change the applicability of any existing provisions or clauses included in solicitations or contracts valued at or below the simplified acquisition threshold or for commercial items, including commercially available off-the-shelf items. E:\FR\FM\01DER3.SGM 01DER3

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[Federal Register Volume 87, Number 230 (Thursday, December 1, 2022)]
[Rules and Regulations]
[Pages 73890-73894]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-25960]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

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

[FAC 2023-01; FAR Case 2020-014; Item III; Docket No. FAR-2020-0014; 
Sequence No. 1]
RIN 9000-AO14


Federal Acquisition Regulation: United States-Mexico-Canada 
Agreement

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

ACTION: Final rule.

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

SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to implement the United States-
Mexico-Canada Agreement Implementation Act.

DATES: Effective December 30, 2022.

FOR FURTHER INFORMATION CONTACT: Mr. Michael O. Jackson, Procurement 
Analyst, at 202-208-4949 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 2023-01, FAR Case 
2020-014.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD, GSA, and NASA published a proposed rule at 86 FR 70808 on 
December 13, 2021, to implement the United States-Mexico-Canada 
Agreement Implementation Act (Pub. L. 116-113). On June 12, 2017, the 
President announced his intention to commence negotiations with Canada 
and Mexico to modernize the North American Free Trade Agreement 
(NAFTA). On November 30, 2018, the Governments of the United States, 
Mexico, and Canada (the Parties) signed the protocol replacing NAFTA 
with the United States-Mexico-Canada Agreement (USMCA). On December 10, 
2019, the Parties signed the protocol of amendment to the USMCA. On 
January 29, 2020, the President signed into law the United States-
Mexico-Canada Agreement Implementation Act, through which Congress 
approved the USMCA. On July 1, 2020, the USMCA entered into full force. 
(See U.S. Trade Representative Determination published June 29, 2020, 
85 FR 39037.) Although Canada is still a designated country under the 
World Trade Organization Government Procurement Agreement, Canada is no 
longer a Free Trade Agreement country, because chapter 13 of the USMCA 
(government procurement) applies only to the United States and Mexico. 
Therefore, references to Canada as a Free Trade Agreement country are 
deleted, including the $25,000 threshold. Mexico thresholds remain 
unchanged.
    There were no comments submitted on the proposed rule.

II. Discussion and Analysis

    There were no public comments for the Civilian Agency Acquisition 
Council and the Defense Acquisition Regulations Council (the Councils) 
to review. Therefore, there are no changes in the final rule from the 
proposed, except for baseline updates. The baseline updates include 
changes made in FAC 2022-03, FAR case 2022-001, Trade Agreements 
Thresholds, to incorporate the revised thresholds for application of 
the World Trade Organization Government Procurement Agreement and the 
Free Trade Agreements, as determined by the United States Trade 
Representative, effective on January 1, 2022. The final rule also 
includes baseline updates published in FAC 2022-05 for FAR case 2021-
008, effective on October 25, 2022.

[[Page 73891]]

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

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

IV. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993.

V. Congressional Review Act

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

VI. Regulatory Flexibility Act

    DoD, GSA, and NASA have prepared a Final Regulatory Flexibility 
Analysis (FRFA) consistent with the Regulatory Flexibility Act, 5 
U.S.C. 601-612. The FRFA is summarized as follows:

    The objective of this rule is to implement the USMCA 
Implementation Act. The rule makes changes in the FAR to conform to 
Chapter 13 of the USMCA, which sets forth certain obligations 
between the United States and Mexico with respect to Government 
procurement of goods and services, as specified in Annex 13-A of the 
USMCA. Chapter 13 of the USMCA applies only between Mexico and the 
United States and does not cover Canada. Although Canada is still a 
designated country under the World Trade Organization Government 
Procurement Agreement, Canada is no longer a Free Trade Agreement 
country, because chapter 13 of the USMCA (government procurement) 
applies only to the United States and Mexico. Therefore, references 
to Canada as a Free Trade Agreement country in the FAR are deleted, 
including the $25,000 threshold.
    Canadian end products will still receive nondiscriminatory 
treatment with respect to the Buy American statute but starting at 
$183,000, rather than $25,000. Mexico thresholds remain unchanged.
    The legal basis for these changes is Public Law 116-113.
    There were no public comments submitted in response to the 
initial regulatory flexibility analysis.
    DoD, GSA, and NASA do not expect this rule to have a significant 
economic impact on a substantial number of small entities within the 
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601-612, 
because, although the rule removes Canada as a Free Trade Agreement 
designated country and deletes the associated $25,000 threshold, 
Canada remains a World Trade Organization Government Procurement 
Agreement designated country, at $183,000. The Mexico thresholds 
remain unchanged.
    Based on fiscal year 2019 data from the Federal Procurement Data 
System, 129,308 small businesses were awarded Government contracts. 
Impacts to small businesses are anticipated to be negligible based 
on the data analysis approved under Office of Management and Budget 
(OMB) Control Number 9000-0024, Buy American, Trade Agreements, and 
Duty-Free Entry. Alternate I of the clause, FAR 52.225-3, Buy 
American--Free Trade Agreements--Israeli Trade Act, and Alternate I 
of the provision, FAR 52.225-4, Buy American--Free Trade 
Agreements--Israeli Trade Act Certificate, are deleted. The Trade 
Agreements clause at FAR 52.225-5, the Buy American--Construction 
Materials under Trade Agreements clause at FAR 52.225-11, and the 
FAR 52.225-23 equivalent for the Recovery Act are revised to delete 
references to Canada as a Free Trade Agreement country. In regard to 
FAR 52.225-23, additional construction awards are not anticipated 
using Recovery Act funds.
    This final rule does not include any new reporting, 
recordkeeping, or other compliance requirements for small 
businesses. The rule does not impose additional information 
collection requirements to the paperwork burden previously approved 
by OMB under the Paperwork Reduction Act (44 U.S.C. 3501-3521), 
Control Number 9000-0024, Buy American, Trade Agreements, and Duty-
Free Entry.
    There are no known significant alternative approaches to the 
final rule.

    Interested parties may obtain a copy of the FRFA from the 
Regulatory Secretariat Division. The Regulatory Secretariat Division 
has submitted a copy of the FRFA to the Chief Counsel for Advocacy of 
the Small Business Administration.

VII. Paperwork Reduction Act

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

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

    Government procurement.

William F. Clark,
Director, Office of Government-Wide Acquisition Policy, Office of 
Acquisition Policy, Office of Government-Wide Policy.

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

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

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. 
chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 
20113.

PART 4--ADMINISTRATIVE AND INFORMATION MATTERS


4.1202   [Amended]

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

PART 13--SIMPLIFIED ACQUISITION PROCEDURES


13.302-5  [Amended]

0
3. Amend section 13.302-5, in paragraph (d)(3)(i) by removing the word 
``FAR'' twice.

PART 18--EMERGENCY ACQUISITIONS


18.120  [Removed and Reserved]

0
4. Remove and reserve section 18.120.

PART 22--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS


22.1503  [Amended]

0
5. Amend section 22.1503 by--
0
a. Removing paragraph (b)(1);
0
b. Redesignating paragraphs (b)(2) through (4) as paragraphs (b)(1) 
through (3); and
0
c. Adding ``Canada,'' in newly redesignated paragraph (b)(3) between 
the words ``Bulgaria'' and ``Croatia''.

[[Page 73892]]

22.1505  [Amended]

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

PART 25--FOREIGN ACQUISITION


25.003  [Amended]

0
7. Amend section 25.003 by removing ``Canada,'' from paragraph (2) of 
the definition of ``Designated country'' and from the definition of 
``Free Trade Agreement country''.

0
8. Amend section 25.400 by revising paragraph (a)(2)(i) to read as 
follows:


25.400  Scope of subpart.

    (a) * * *
    (2) * * *
    (i) USMCA (United States-Mexico-Canada Agreement, as approved by 
Congress in the United States-Mexico-Canada Agreement Implementation 
Act (Government Procurement Agreement applicable only to the United 
States and Mexico) (Pub. L. 116-113) (19 U.S.C. chapter 29 (sections 
4501-4732));
* * * * *

0
9. Amend section 25.401 by--
0
a. Removing ``and'' from the end of paragraph (a)(4);
0
b. Removing ``13.501(a).'' from paragraph (a)(5) and adding 
``13.501(a); and'' in its place;
0
c. Adding paragraph (a)(6); and
0
d. In the table of paragraph (b), revising the heading of the third 
column.
    The addition and revision read as follows:


25.401  Exceptions.

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

--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                    .....................  ..........................  Bahrain FTA, CAFTA-    ....................  ....................
                                                                                        DR, Chile FTA,
                                                                                        Columbia FTA, USMCA,
                                                                                        Oman FTA, Panama
                                                                                        FTA, and Peru FTA.
 
                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------

* * * * *

0
10. Amend section 25.402 by revising table 1 to paragraph (b) to read 
as follows:


25.402   General.

* * * * *
    (b) * * *

                                            Table 1 to Paragraph (b)
----------------------------------------------------------------------------------------------------------------
                                                                      Supply          Service      Construction
                                                                     contract        contract        contract
                         Trade agreement                           (equal to or    (equal to or    (equal to or
                                                                    exceeding)      exceeding)      exceeding)
----------------------------------------------------------------------------------------------------------------
WTO GPA.........................................................        $183,000        $183,000      $7,032,000
FTAs:
    Australia FTA...............................................          92,319          92,319       7,032,000
    Bahrain FTA.................................................         183,000         183,000      12,001,460
    CAFTA-DR (Costa Rica, Dominican Republic, El Salvador,                92,319          92,319       7,032,000
     Guatemala, Honduras, and Nicaragua)........................
    Chile FTA...................................................          92,319          92,319       7,032,000
    Colombia FTA................................................          92,319          92,319       7,032,000
    Korea FTA...................................................         100,000         100,000       7,032,000
    Morocco FTA.................................................         183,000         183,000       7,032,000
    USMCA:......................................................
        --Mexico................................................          92,319          92,319      12,001,460
    Oman FTA....................................................         183,000         183,000      12,001,460
    Panama FTA..................................................         183,000         183,000       7,032,000
    Peru FTA....................................................         183,000         183,000       7,032,000
    Singapore FTA...............................................          92,319          92,319       7,032,000
    Israeli Trade Act...........................................          50,000  ..............  ..............
----------------------------------------------------------------------------------------------------------------

* * * * *


25.504-1  [Amended]

0
11. Amend section 25.504-1 by removing ``$25,000'' from paragraphs 
(a)(2) and (c)(2) and adding ``$50,000'' in its place.


25.1101  [Amended]

0
12. Amend section 25.1101 by--
0
a. Removing ``$25,000'' from paragraphs (a)(1) introductory text and 
(b)(1)(i)(A) and adding ``$50,000'' in its place, wherever it appears;
0
b. Removing paragraph (b)(1)(ii);
0
c. Redesignating paragraphs (b)(1)(iii) through (v) as paragraphs 
(b)(1)(ii) through (iv);
0
d. Removing from the newly redesignated paragraph (b)(1)(ii) the phrase 
``Alternate II'' and adding the phrase ``Alternate II'' in its place;
0
e. Removing paragraph (b)(2)(ii);
0
f. Redesignating paragraphs (b)(2)(iii) and (iv) as paragraphs 
(b)(2)(ii) and (iii); and
0
g. Removing from the newly redesignated paragraph (b)(2)(ii) the phrase 
``Alternate II'' and adding the phrase ``Alternate II'' in its place.

PART 27--PATENTS, DATA, AND COPYRIGHTS

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

[[Page 73893]]

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

    When questions arise with regard to use of patented technology 
under the United States-Mexico-Canada Agreement, the contracting 
officer should consult with legal counsel. Note that Article 20.6(a) of 
the Agreement discusses public health and pharmaceuticals.

0
14. Amend section 27.204-2 by adding a sentence to the end of the 
paragraph to read as follows:


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

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

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

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


52.204-8   Annual Representations and Certifications.

* * * * *

Annual Representations and Certifications (DEC 2022)

* * * * *
    (c)(1) * * *
    (xxi) 52.225-4, Buy American-Free Trade Agreements-Israeli Trade 
Act Certificate. (Basic, Alternates II and III.) This provision 
applies to solicitations containing the clause at 52.225-3.
    (A) If the acquisition value is less than $50,000, the basic 
provision applies.
    (B) If the acquisition value is $50,000 or more but is less than 
$92,319, the provision with its Alternate II applies.
    (C) If the acquisition value is $92,319 or more but is less than 
$100,000, the provision with its Alternate III applies.
* * * * *

0
16. Amend section 52.212-3 by--
0
a. Revising the date of the provision;
0
b. Removing paragraph (g)(2);
0
c. Redesignating paragraphs (g)(3) through (5) as paragraphs (g)(2) 
through (4); and
0
d. Revising the newly redesignated paragraph (g)(2).
    The revisions read as follows:


52.212-3  Offeror Representations and Certifications--Commercial 
Products and Commercial Services.

* * * * *

Offeror Representations and Certifications--Commercial Products and 
Commercial Services (DEC 2022)

* * * * *
    (g) * * *
    (2) Buy American--Free Trade Agreements--Israeli Trade Act 
Certificate, Alternate II. If Alternate II to the clause at FAR 
52.225-3 is included in this solicitation, substitute the following 
paragraph (g)(1)(ii) for paragraph (g)(1)(ii) of the basic 
provision:
    (g)(1)(ii) The offeror certifies that the following supplies are 
Israeli end products as defined in the clause of this solicitation 
entitled ``Buy American--Free Trade Agreements--Israeli Trade Act'':
    Israeli End Products:

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

[List as necessary]
* * * * *

0
17. Amend section 52.212-5 by--
0
a. Revising the date of the clause;
0
b. Removing from paragraph (b)(28) the date ``(JAN 2022)'' and adding 
``(DEC 2022)'' in its place;
0
c. Revising paragraphs (b)(49)(i) and (ii);
0
d. Removing from paragraph (b)(49)(iii) the date ``(JAN 2021)'' and 
adding ``(DEC 2022)'' in its place; and
0
e. Removing from paragraph (b)(50) the date ``(OCT 2019)'' and adding 
``(DEC 2022)'' in its place.
    The revisions read as follows:


52.212-5  Contract Terms and Conditions Required To Implement Statutes 
or Executive Orders--Commercial Products and Commercial Services.

* * * * *

Contract Terms and Conditions Required To Implement Statutes or 
Executive Orders--Commercial Products and Commercial Services (DEC 
2022)

* * * * *
    (b) * * *
    (49)(i) 52.225-3, Buy American--Free Trade Agreements--Israeli 
Trade Act (DEC 2022) (19 U.S.C. 3301 note, 19 U.S.C. 2112 note, 19 
U.S.C. 3805 note, 19 U.S.C. 4001 note, 19 U.S.C. chapter 29 
(sections 4501-4732), Public Law 103-182, 108-77, 108-78, 108-286, 
108-302, 109-53, 109-169, 109-283, 110-138, 112-41, 112-42, and 112-
43.
    (ii) Alternate I [Reserved].
* * * * *

0
18. Amend section 52.213-4 by--
0
a. Revising the date of the clause;
0
b. In paragraph (b)(1)(ii)--
0
i. Removing the date ``(JAN 2022)'' and adding ``(DEC 2022)'' in its 
place; and
0
ii. Removing the phrase ``FAR'';
0
c. In paragraph (b)(1)(xvii)(A) introductory text removing the phrase 
``FAR''; and
0
d. Removing ``$25,000'' from paragraph (b)(1)(xvii)(A)(2) and adding 
``$50,000'' in its place.
    The revision reads as follows:


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

* * * * *

Terms and Conditions--Simplified Acquisitions (Other Than Commercial 
Products and Commercial Services) (DEC 2022)

* * * * *

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


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

* * * * *

Child Labor--Cooperation With Authorities and Remedies (DEC 2022)

* * * * *

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


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

* * * * *

Buy American--Free Trade Agreements--Israeli Trade Act (DEC 2022)

* * * * *
    Alternate II (DEC 2022). As prescribed in 25.1101(b)(1)(ii), 
substitute the following paragraph (c) for paragraph (c) of the 
basic clause:
    (c) Delivery of end products. 41 U.S.C. chapter 83 provides a 
preference for domestic end products for supplies acquired for use 
in the United States. In accordance with 41 U.S.C. 1907, the 
domestic content test of the Buy American statute is waived for an 
end product that is a COTS item (see 12.505(a)(1)), except that for 
an end product that consists wholly or predominantly of iron or 
steel or a combination of both, the domestic content test is applied 
only to the iron and steel content of the end product,

[[Page 73894]]

excluding COTS fasteners. In addition, the Contracting Officer has 
determined that the Israeli Trade Act applies to this acquisition. 
Unless otherwise specified, this trade agreement applies to all 
items in the Schedule. The Contractor shall deliver under this 
contract only domestic end products except to the extent that, in 
its offer, it specified delivery of foreign end products in the 
provision entitled ``Buy American--Free Trade Agreements--Israeli 
Trade Act.'' If the Contractor specified in its offer that the 
Contractor would supply an Israeli end product, then the Contractor 
shall supply an Israeli end product or, at the Contractor's option, 
a domestic end product.
* * * * *

0
21. Amend section 52.225-4 by--
0
a. Removing and reserving Alternate I;
0
b. Revising Alternate II; and
0
c. In Alternate III removing from the introductory text 
``25.1101(b)(2)(iv)'' and adding ``25.1101(b)(2)(iii)'' in its place.
    The revisions read as follows:


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

* * * * *
    Alternate II (DEC 2022). As prescribed in 25.1101(b)(2)(ii), 
substitute the following paragraph (b) for paragraph (b) of the basic 
provision:
    (b) The offeror certifies that the following supplies are Israeli 
end products as defined in the clause of this solicitation entitled 
``Buy American--Free Trade Agreements--Israeli Trade Act--Balance of 
Payments Program'':
    Israeli End Products

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


[List as necessary]
* * * * *

0
22. Amend section 52.225-5 by--
0
a. Revising the date of the clause; and
0
b. In paragraph (a), in the definition ``Designated country'' removing 
``Canada,'' from paragraph (2).
    The revision reads as follows:


52.225-5  Trade Agreements.

* * * * *

Trade Agreements (DEC 2022)

* * * * *

0
23. Amend section 52.225-11 by--
0
a. Revising the date of the clause;
0
b. In paragraph (a), in the definition of ``Designated country'', 
removing ``Canada,'' from paragraph (2);
0
c. Revising the date of Alternate I; and
0
d. In paragraph (b)(1) of Alternate I:
0
i. Removing the phrase ``FAR''; and
0
ii. Removing the phrase ``NAFTA'' and adding ``United States-Mexico-
Canada Agreement'' in its place.
    The revisions read as follows:


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

* * * * *

Buy American--Construction Materials Under Trade Agreements (DEC 2022)

* * * * *
    Alternate I (DEC 2022). * * *
* * * * *

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


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

* * * * *

Required Use of American Iron, Steel, and Manufactured Goods--Buy 
American Statute--Construction Materials Under Trade Agreements (DEC 
2022)

* * * * *
[FR Doc. 2022-25960 Filed 11-30-22; 8:45 am]
BILLING CODE 6820-14-P


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