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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: July 30, 2002

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Trade Agreements Act -- Construction

SOURCE: Federal Register, July 30, 2002, Vol. 67, No. 146, page 49256

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is amending DFARS 225.7503, Contract Clauses, to implement the determination of the U.S. Trade Representative (USTR) to revise the dollar thresholds for application of the Trade Agreements Act (TAA) and the North American Free Trade Agreement (NAFTA) to construction contracts.

EDITOR'S NOTE: For more on the USTR determination, see the February 21, 2002, FEDERAL CONTRACTS DISPATCH "Procurement Thresholds for Implementation of Trade Agreements Act."

For more on the application of the TAA and NAFTA to federal acquisitions, see Federal Acquisition Regulation (FAR) Subpart 25.4, Trade Agreements.

For more on other changes being proposed to the TAA regarding the application of the Buy American Act to U.S.-made end products that are substantially transformed in the United States, see today's FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Trade Agreements Act -- Exception for U.S.-Made End Products."

EFFECTIVE DATE: July 30, 2002.

FOR FURTHER INFORMATION CONTACT: Amy Williams, Defense Acquisition Regulations Council, OUSD (AT&L) DP (DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0328; fax: 703-602-0350. Cite DFARS Case 2002-D011 when referring to this final rule.

SUPPLEMENTAL INFORMATION: On February 21, 2002, the USTR published a determination that decreased the threshold for application of the Trade Agreements Act to construction contracts from $6,806,000 to $6,481,000, and increased the threshold for application of NAFTA to construction contracts from $7,068,419 to $7,304,733. This final rule amends the prescriptions in DFARS 225.7503 for use of the clauses at DFARS 252.225-7044, Balance of Payments Program -- Construction Material, and DFARS 252.225-7045, Balance of Payments Program -- Construction Material Under Trade Agreements, to reflect the new dollar thresholds.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2002 by Panoptic Enterprises. All Rights Reserved.

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