FedGovContracts.com

Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: December 15, 2004

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Chile and Singapore Free Trade Agreements

SOURCE: Federal Register, December 15, 2004, Vol. 69, No. 240, page 74991

AGENCIES: Department of Defense (DOD)

ACTION: Final Rule

SYNOPSIS: DOD is adopting as final, with changes, the interim rule that amended DFARS Part 225, Foreign Acquisitions, and the related clauses in DFARS Part 252 to implement the the United States-Chile Free Trade Agreement Implementation Act (USCFTA) (Public Law 108-77) and United States-Singapore Free Trade Agreement Implementation Act (USSFTA) (Public Law 108-78).

EDITOR'S NOTE: For more on the interim rule, see the January 13, 2004, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Chile and Singapore Free Trade Agreements."

EFFECTIVE DATE: December 15, 2004.

FOR FURTHER INFORMATION CONTACT: Amy Williams, Defense Acquisition Regulations Council, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; 703-602-0328; fax: 703-602-0350.

SUPPLEMENTAL INFORMATION: On January 13, 2004, DOD published an interim rule that amended DFARS Part 225 and the corresponding clauses in DFARS Part 252 to implement the USCFTA and the USSFTA. For the most part, the DFARS interim rule paralleled the interim rule in Federal Acquisition Circular (FAC) 2001-19 that amended Federal Acquisition Regulation (FAR) Part 25 and the corresponding clauses in FAR Part 52 to implement the USCFTA and the USSFTA (see the January 7, 2004, FEDERAL CONTRACTS DISPATCH "Federal Acquisition Circular (FAC) 2001-19, SF 330 Effectivity Delay and Free Trade Acts," Item (2)). For example, the term "North American Free Trade Agreement" (NAFTA) was replaced throughout DFARS Part 225 and DFARS Part 252 by the term "Free Trade Agreements" (FTA), which encompasses NAFTA, USCFTA, USSFTA, and any future free trade agreements into which the United States may enter, just as in FAC 2001-19. Also, the terms "NAFTA country," "NAFTA country end product." and "NAFTA country construction material" were replaced by "Free Trade Agreement country," "Free Trade Agreement country end product" and "Free Trade Agreement country construction material," respectively.

Another parallel with FAC 2001-19 was the addition of the sentence "United States law will apply to resolve any claim of breach of this contract" in DFARS 252.225-7021, Trade Agreements; DFARS 252.225-7036, Buy American Act -- Free Trade Agreements -- Balance of Payments Program; and DFARS 252.225-7045, Balance of Payments Program -- Construction Material Under Trade Agreements. This sentence was added because both the USCFTA and the USSFTA provide that the United States is authorized to resolve any claim against it, and require that contracts specify the law that will apply to resolve any breach of contract claim.

Finally, the interim rule establishes the threshold for applicability of the USCFTA and USSFTA at $58,550 for supplies and services and $6,725,000 for construction, same as FAC 2001-19.

No comments were submitted in response to the interim rule. However, in adopting the interim rule as final, DOD has made the following two changes:

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953.

Copyright 2004 by Panoptic Enterprises. All Rights Reserved.

Return to the Dispatches Library.

Return to the Main Page.