On December 30, 2015, the Defense Acquisition Regulations System, Department of Defense (DoD) published in the Federal Registerfinal rule [Docket DARS–2015–0066] amending the Defense Federal Acquisition Regulation Supplement (DFARS) to incorporate increased thresholds for application of the WTO Government Procurement Agreement and the Free Trade Agreements, as determined by the United States Trade Representative (USTR).  Every two years, the trade agreements thresholds are escalated according to a predetermined formula set forth in the agreements. USTR has specified the following new thresholds in the Federal Register (80 Fed. Reg. 77694, December 15, 2015).

This final rule implements the new thresholds in DFARS part 225, Foreign Contracting, for sections that include trade agreements thresholds (i.e., 225.1101, 225.7017–3, 225.7017–4, and 225.7503). Additionally, the rule updates clauses 252.225–7017, Photovoltaic Devices, and 252.225– 7018, Photovoltaic Devices—Certificate, with conforming changes. A minor technical amendment corrects cross references at 225.1101(10)(i) and paragraphs (b)(1)(i) and (ii) of the clause at 252.225–7018.

The final rule is effective January 1, 2016.
 

Trade Agreement

Supply

Contract

(equal to or

exceeding)

Construction

Contract

(equal to or

exceeding)

WTO GPA

$     191,000

$   7,358,000

FTAs:

 

 

Australia FTA

77,533

7,358,000

Bahrain FTA

191,000

10,079,365

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

77,533

7,358,000

Chile FTA

77,533

7,358,000

Colombia FTA

77,533

7,358,000

Korea FTA

100,000

7,358,000

Morocco FTA

191,000

7,358,000

NAFTA

 

 

– Canada

25,000

10,079,365

– Mexico

77,533

10,079,365

Panama FTA

191,000

7,358,000

Peru FTA

191,000

7,358,000

Singapore FTA

77,533

7,358,000