Trade Agreements Thresholds (DFARS Case 2012-D005)

Summary:

DCN 20120130 includes a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to require major contractors to report independent research and development (IR&D) projects.

Supplementary Information:

I.  Background

Every two years, the trade agreements thresholds are adjusted according to a pre-determined formula set forth in the agreements. The United States Trade Representative has specified the following new thresholds in the Federal Register (76 FR 76808 December 8, 2011):

Trade Agreement

Supply contract

(equal or exceeding)

Construction contract

(equal or exceeding)

WTO GPA

$202,000

$7,777,000

FTAs:

 

 

Australia FTA

77,494       

7,777,000

Bahrain FTA

202,000      

10,074,262

CAFTA-DDR (Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua)

77,494       

7,777,000

Chile FTA

77,494       

7,777,000

Morocco FTA

202,000

7,777,000

NAFTA:

 

 

--Canada

25,000

10,074,262

--Mexico

77,494

10,074,262

Peru FTA

202,000

7,777,000

Singapore FTA

77,494       

7,777,000

II. Discussion and Analysis

This final rule implements the new thresholds in the clause prescriptions at DFARS 225.1101 and 225.7503.

Dates:

The Effective Date for this final rule is 30 January 2012.

Click here to read the entire Federal Register notice for this rule.