[Federal Register Volume 61, Number 53 (Monday, March 18, 1996)]
[Rules and Regulations]
[Pages 10899-10901]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6422]
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DEPARTMENT OF DEFENSE
48 CFR Parts 225 and 252
Defense Federal Acquisition Regulation Supplement; Ball and
Roller Bearings
AGENCY: Department of Defense (DoD).
ACTION: Interim rule with request for comment.
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SUMMARY: The Director of Defense Procurement has issued an interim rule
amending the Defense Federal Acquisition Regulation Supplement (DFARS)
to implement changes to statutory restrictions on the acquisition of
nondomestic ball and roller bearings.
DATES: Effective date: March 18, 1996.
Comment date: Comments on the interim rule should be submitted in
writing to the address shown below on or before May 17, 1996, to be
considered in the formulation of the final rule.
ADDRESSES: Interested parties should submit written comments to:
Defense Acquisition Regulations Council, Attn: Ms. Amy Williams, PDUSD
(A&T)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, D.C. 20301-
3062. Telefax number (703) 602-0350. Please cite DFARS Case 95-D308 in
all correspondence related to this issue.
FOR FURTHER INFORMATION CONTACT:
Ms. Amy Williams, (703) 602-0131.
SUPPLEMENTARY INFORMATION:
A. Background
This interim DFARS rule implements Section 8099 of the Fiscal Year
1996 Defense Appropriations Act (Pub. L. 104-61) and Section 806,
paragraphs (b) and (d), of the Fiscal Year 1996 Defense Authorization
Act (Pub. L. 104-106), adding a definition of ``bearing components'' at
DFARS 225.7001, amending the restrictions on acquisition of nondomestic
ball or roller bearings at 225.7019, and amending the clause at
252.225-7016, Restriction on Acquisition of Ball and Roller Bearings.
The term ``ball and roller bearings'' has been substituted for the term
``antifriction bearings'' in order to be consistent with the statutory
terminology.
B. Regulatory Flexibility Act
This interim rule may have a significant positive impact on a
substantial number of small entities within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601 et seq., because this rule
extends the current restriction on the acquisition of nondomestic ball
and roller bearings through the year 2000, with some tightening of the
regulations relating to exceptions and waiver authority. For
acquisitions at or below the simplified acquisition threshold which are
subject only to the restriction of 10 U.S.C. 2534, there is no
exception to the restriction if ball or roller bearings or bearing
components are the end item being purchased. If Fiscal Year 1996 funds
are used, the only exception to the restriction is for the acquisition
of commercial items incorporating ball or roller bearings. Also, if
Fiscal Year 1996 funds are used, the restriction may be waived only if
the Secretary of the department responsible for the acquisition
certifies to the House and Senate Committees on Appropriations that (1)
adequate domestic supplies are not available to meet DoD requirements
on a timely basis, and (2) the acquisition must be made in order to
acquire capability for national security purposes. An Initial
Regulatory Flexibility Analysis (IRFA) has been prepared. A copy of the
IRFA has been submitted to the Chief Counsel for Advocacy of the Small
Business Administration. A copy of the IRFA may be obtained from the
address stated herein. Comments are invited from small businesses and
other interested parties. Comments from small entities concerning the
affected DFARS subparts will be considered in accordance with Section
610 of the Act. Such comments must be submitted separately and cite
DFARS Case 95-D308 in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act applies. The burden associated with
paragraph (d) and (e) of the clause at DFARS 252.225-7016 has been
approved at 301,600 hours under OMB clearance 0704-0229. This interim
rule does not significantly alter existing requirements or impose any
new information collection requirements which require the approval of
OMB under 44 U.S.C. 3501 et seq.
D. Determination to Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense that compelling reasons exist to publish this interim rule
prior to affording the public an opportunity to comment. This action is
necessary to implement Section 8099 of the Fiscal Year 1996 Defense
Appropriations Act (Pub. L. 104-61) and Section 806, paragraphs (b) and
(d), of the Fiscal Year 1996 Defense Authorization Act (Pub. L. 104-
106). Sections 8099 and 806 were effective upon enactment (December 1,
1995, and February 10, 1996, respectively). Comments received in
response to the publication of this interim rule will be considered in
formulating the final rule.
List of Subjects in 48 CFR Parts 225 and 252
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, 48 CFR Parts 225 and 252 are amended as follows:
PART 225--FOREIGN ACQUISITION
1. The authority citation for 48 CFR Parts 225 and 252 continues to
read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
2. Section 225.7001 is revised to read as follows:
225.7001 Definitions.
As used in this subpart--
(a) Bearing components is defined in the clause at 252.225-7016,
Restriction on Acquisition of Ball and Roller Bearings.
(b) Hand or measuring tools means those tools listed in Federal
supply classifications 51 and 52, respectively.
[[Page 10900]]
(c) Possessions, as used in the phrase ``United States or its
possessions,'' includes Puerto Rico.
(d) Specialty metals is defined in the clause at 252.225-7014,
Preference for Domestic Specialty Metals.
3. Sections 225.7019, 225.7019-1, 225.7019-2, 225.7019-3, and
225.7019-4 are revised to read as follows:
225.7019 Restrictions on ball and roller bearings.
225.7019-1 Restrictions.
(a) In accordance with 10 U.S.C. 2534, through fiscal year 2000, do
not acquire ball and roller bearings or bearing components which are
not manufactured in the United States or Canada.
(b) In accordance with Section 8099 of Public Law 104-61, do not
use fiscal year 1996 funds to acquire ball and roller bearings other
than those produced by a domestic source and of domestic origin, i.e.,
bearings and bearing components manufactured in the United States or
Canada.
225.7019-2 Exceptions.
(a) The restriction in 225.7019-1(a) does not apply to--
(1) Acquisitions at or below the simplified acquisition threshold,
unless ball or roller bearings or bearing components are the end items
being purchased;
(2) Purchases of commercial items incorporating ball or roller
bearings;
(3) Miniature and instrument ball bearings restricted under subpart
225.71;
(4) Items acquired overseas for use overseas; or
(5) Ball and roller bearings or bearing components or items
containing bearings for use in a cooperative or co-production project
under an international agreement.
(b) The restrictions in 225.7019-1(b) does not apply to the
acquisition of commercial items incorporating ball or roller bearings
(see 212.503(a)(xi) and 212.504(a)(xxvi)).
225.7019-3 Waiver.
(a) The head of the contracting activity may waive the restriction
in 225.7019-1(a)--
(1) Upon execution of a determination and findings that--
(i) No domestic (U.S. or Canadian) bearing manufacturer meets the
requirement;
(ii) It is not in the best interests of the United States to
qualify a domestic bearing to replace a qualified nondomestic bearing.
This determination must be based on a finding that the qualification of
a domestically manufactured bearing would cause unreasonable costs or
delay. A finding that a cost is unreasonable should take into
consideration DoD policy to assist the domestic industrial mobilization
base. Contracts should be awarded to domestic bearing manufacturers to
increase their capability to reinvest and become more competitive;
(iii) United States producers of the item would not be jeopardized
by competition from a foreign country, and that country does not
discriminate against defense items produced in the United States to a
greater degree than the United States discriminates against defense
items produced in that country;
(iv) Application of the restriction would impede cooperative
programs entered into between DoD and a foreign country, and that
country does not discriminate against defense items produced in the
United States to a greater degree than the United States discriminates
against defense items produced in that country;
(v) Application of the restriction would result in the existence of
only one source for the item in the United States or Canada;
(vi) Application of the restriction is not in the national security
interests of the United States; or
(vii) Application of the restriction would adversely affect a U.S.
company.
(2) For multiyear contracts or contracts exceeding 12 months, only
if--
(i) The head of the contracting activity execute a determination
and findings in accordance with paragraph (a) of this subsection;
(ii) The contractor submits a written plan for transitioning from
the use of nondomestic to domestically manufactured bearings;
(iii) The plan--
(A) States whether a domestically manufactured bearings can be
qualified, at a reasonable cost, for use during the course of the
contract period;
(B) Identifies any bearings that are not domestically manufactured,
their application, and source of supply; and
(C) Describes, including cost and timetable, the transition to a
domestically manufactured bearing. (The timetable for the transition
should normally take no longer than 24 months from the date the waiver
is granted); and
(iv) The contracting officer accepts the plan and incorporates it
in the contract.
(b) The Secretary of the department responsible for the acquisition
may waive the restriction in 225.7019-1(b) on a case-by-case basis, by
certifying to the House and Senate Committees on Appropriations that--
(1) Adequate domestic supplies are not available to meet DoD
requirements on a timely basis; and
(2) The acquisition must be made in order to acquire capability for
national security purposes.
225.7019-4 Contract clause.
Use the clause at 252.225-7016, Restriction on Acquisition of Ball
and Roller Bearings, in all solicitations and contracts, unless--
(a) The restrictions in 225.7019-1 do not apply or a waiver has
been granted; or
(b) The contracting officer knows that the items being acquired do
not contain ball or roller bearings.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
4. Section 252.225-7016 is revised to read as follows:
252.225-7016 Restriction on Acquisition of Ball and Roller Bearings.
As prescribed in 225.7019-4, use the following clause:
Restriction on Acquisition of Ball and Roller Bearings (Mar 1996)
(a) Definition.
Bearing components, as used in this clause, means the bearing
element, retainer, inner race, or outer race.
(b) The Contractor agrees that all ball and roller bearings and
ball and roller bearing components delivered under this contract,
either as end items or components of end items, shall be wholly
manufactured in the United States or Canada. Unless otherwise
specified, raw materials, such as preformed bar, tube, or rod stock
and lubricants, need not be mined or produced in the United States
or Canada.
(c) The restriction in paragraph (b) does not apply to the
extent that the end items or components containing ball or roller
bearings are commercial items. The commercial item exception does
not include items designed or developed under a Government contract
or contracts where the end item is bearings and bearing components.
(d) The restriction in paragraph (b) may be waived upon request
from the Contractor in accordance with subsection 225.7019-3 of the
Defense Federal Acquisition Regulation Supplement.
(e) The contractor agrees to retain records showing compliance
with this restriction until three years after final payment and to
make records available upon request of the Contracting Officer.
(f) The Contractor agrees to insert this clause, including this
paragraph (f), in every subcontract and purchase order issued in
performance of this contract, unless items acquired are--
(1) Commercial items other than ball or roller bearings; or
(2) Items that do not contain ball or roller bearings.
[[Page 10901]]
(End of clause)
[FR Doc. 96-6422 Filed 3-15-96; 8:45 am]
BILLING CODE 5000-04-M