[Federal Register: June 8, 2010 (Volume 75, Number 109)]
[Rules and Regulations]               
[Page 32637-32638]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08jn10-21]                         



[[Page 32637]]


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

DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 225

RIN 0750-AG59

 
Defense Federal Acquisition Regulation Supplement; Trade 
Agreements Thresholds (DFARS Case 2009-D040)

AGENCY: Defense Acquisition Regulations System; Department of Defense 
(DoD).

ACTION: Interim rule with request for comments.

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

SUMMARY: DoD is issuing an interim rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to incorporate increased 
thresholds for application of the World Trade Organization Government 
Procurement Agreement and the Free Trade Agreements, as determined by 
the United States Trade Representative.

DATES: Effective Date: June 8, 2010.
    Comment Date: Comments on the interim rule should be submitted in 
writing to the address shown below on or before August 9, 2010 to be 
considered in the formulation of the final rule.

ADDRESSSES: You may submit comments, identified by DFARS Case 2009-
D040, using any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
    Follow the instructions for submitting comments.
     E-mail: dfars@osd.mil. Include DFARS Case 2009-D040 in the 
subject line of the message.
     Fax: 703-602-0350.
     Mail: Defense Acquisition Regulations System, Attn: Ms. 
Amy Williams, OUSD (AT&L) DPAP (DARS), 3060 Defense Pentagon, Room 
3B855, Washington, DC 20301-3060.
    Comments received generally will be posted without change to http:/
/www.regulations.gov, including any personal information provided.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, 703-602-0328.

SUPPLEMENTARY INFORMATION:

A. Background

    This interim rule amends the clause prescriptions at DFARS 225.1101 
and 225.7503 to reflect increased thresholds for application of the 
trade agreements. Every two years, the trade agreements thresholds are 
escalated according to a pre-determined formula set forth in the 
agreements. The United States Trade Representative has specified the 
following new thresholds (74 FR 68907, December 29, 2009):

------------------------------------------------------------------------
                                              Supply       Construction
                                             contract        contract
             Trade Agreement               (equal to or    (equal to or
                                            exceeding)      exceeding)
------------------------------------------------------------------------
WTO GPA.................................        $203,000      $7,804,000
FTAs:
    Australia FTA.......................          70,079       7,804,000
    Bahrain FTA.........................         203,000       9,110,318
    CAFTA-DR (Costa Rica, Dominican               70,079       7,804,000
     Republic, El Salvador, Guatemala,
     Honduras, and Nicaragua)...........
    Chile FTA...........................          70,079       7,804,000
    Morocco FTA.........................         203,000       7,804,000
    NAFTA:
    --Canada............................          25,000       9,110,318
    --Mexico............................          70,079       9,110,318
    Peru FTA............................         203,000       7,804,000
    Singapore FTA.......................          70,079       7,804,000
------------------------------------------------------------------------

    This rule was subject to Office of Management and Budget review 
under Executive Order 12866, Regulatory Planning and Review, dated 
September 30, 1993.

B. Regulatory Flexibility Act

    DoD does not expect this interim 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., 
because the dollar threshold changes are designed to keep pace with 
inflation and thus maintain the status quo. Therefore, DoD has not 
performed an initial regulatory flexibility analysis. 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 2009-D040) in 
correspondence.

C. Paperwork Reduction Act

    This interim rule affects the certification and information 
collection requirements in the provisions at DFARS 252.225-7020 and 
252.225-7035, currently approved under Office of Management and Budget 
Control Number 0704-0229. However, there is no impact on the estimated 
burden hours. The dollar threshold changes are in line with inflation 
and maintain the status quo.

D. Determination To Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense, that urgent and compelling reasons exist to publish an 
interim rule prior to affording the public an opportunity to comment. 
This interim rule incorporates increased dollar thresholds for 
application of the World Trade Organization Government Procurement 
Agreement and the Free Trade Agreements, as determined by the United 
States Trade Representative. This action is necessary because the 
increased thresholds were effective January 1, 2010. Comments received 
in response to this interim rule will be considered in the formation of 
the final rule.

List of Subjects in 48 CFR Part 225

    Government procurement.

Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.

0
Therefore, 48 CFR part 225 is amended as follows:

PART 225--FOREIGN CONTRACTING

0
1. The authority citation for 48 CFR part 225 continues to read as 
follows:


[[Page 32638]]


    Authority: 41 U.S.C. 421 and 48 CFR chapter 1.


225.1101  [Amended]

0
2. Section 225.1101 is amended in paragraph (11)(i) introductory text 
by removing ``$194,000'' and adding in its place ``$203,000''; and in 
paragraphs (11)(i)(A) and (11)(i)(B) by removing ``$67,826'' and adding 
in its place ``$70,079''.


225.7503  [Amended]

0
3. Section 225.7503 is amended in paragraph (a) by removing 
``$7,443,000'' and adding in its place ``$7,804,000''; and in paragraph 
(b) by removing ``$7,443,000'' and adding in its place ``$7,804,000'', 
and by removing ``$8,817,449'' and adding in its place ``$9,110,318''.

[FR Doc. 2010-13523 Filed 6-7-10; 8:45 am]
BILLING CODE 5001-08-P