[Federal Register Volume 64, Number 177 (Tuesday, September 14, 1999)]
[Proposed Rules]
[Pages 49757-49758]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-23729]
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DEPARTMENT OF DEFENSE
48 CFR Parts 212, 225, and 252
[DFARS Case 99-D301]
Defense Federal Acquisition Regulation Supplement; Domestic
Source Restrictions--Commercial Items
AGENCY: Department of Defense (DoD).
ACTION: Proposed rule with request for comments.
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SUMMARY: The Director of Defense Procurement is proposing to amend the
Defense Federal Acquisition Regulation Supplement (DFARS) to address
requirements pertaining to the applicability of domestic source
restrictions to contracts and subcontracts for the acquisition of
commercial items and commercial components.
DATES: Comments on the proposed rule should be submitted in writing to
the address specified below on or before November 15, 1999, to be
considered in the formation of the final rule.
ADDRESSES: Interested parties should submit written comments on the
proposed rule to: Defense Acquisition Regulations Council, Attn: Ms.
Amy Williams, PDUSD(A&T)DP(DAR), IMD 3D139, 3062 Defense Pentagon,
Washington, DC 20301-3062. Telefax (703) 602-3050. Please cite DFARS
Case 99-D301.
E-mail comments submitted over the Internet should be addressed to:
[email protected].
Please cite DFARS Case 99-D301 in all correspondence related to
this issue. E-mail correspondence should cite DFARS Case 99--D301 in
the subject line.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, (703) 602-0288.
Please cite DFARS Case 99-D301.
SUPPLEMENTARY INFORMATION:
A. Background
This rule proposes amendments to DFARS 212.503, 212.504, 225.7019-
2, and 252.225-7016 to address the applicability of domestic source
restrictions to contracts and subcontracts for the acquisition of
commercial items and commercial components. The rule specifies that the
domestic source restrictions in 10 U.S.C. 2534 and annual defense
appropriations acts are inapplicable if the restricted foreign goods
are components of commercial items or commercial components being
acquired. The rule also removes the Trade Agreements Act (19 U.S.C.
2512) and the Buy American Act (41 U.S.C. 10) from the list of laws
that are inapplicable to subcontracts for the acquisition of commercial
items, since the Trade Agreements Act and the Buy American Act apply to
end items only.
This proposed rule supersedes the proposed rule published at 62 FR
59641 on November 4, 1997 (DFARS Case 97-D028), pertaining to
commercial ball or roller bearings that are components of
[[Page 49758]]
noncommercial items. No public comments were received on that proposed
rule, which is hereby withdrawn.
B. Regulatory Flexibility Act
The proposed rule is not expected to have a significant economic
impact on a substantial number of small entities within the meaning of
the Regulatory flexibility Act, 5 U.S.C. 601, et seq., because the
primary effect of the rule is a restriction on the acquisition of ball
and roller bearings manufactured in the United Kingdom. The clause at
DFARS 252.225-7016 presently permits the acquisition of commercial ball
and roller bearings manufactured in the United Kingdom, regardless of
whether the bearings are acquired as end items or components. The
proposed rule would no longer permit the acquisition of commercial ball
and roller bearings from the United Kingdom if the bearings are
acquired as end items. This change is not expected to have a
significant impact on U.S. firms. Therefore, an initial regulatory
flexibility analysis has not been performed. Comments are invited from
small businesses and other interested parties. Comments from small
entities concerning the affected DFARS subparts also will be considered
in accordance with 5 U.S.C. 610. Such comments should be submitted
separately and should cite DFARS Case 99-D301 in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the rule does
not impose any information collection requirements that require the
approval of the Office of Management and Budget under 44 U.S.C. 3501,
et seq.
List of Subjects in 48 CFR Parts 212, 225, and 252
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, 48 CFR Part 212, 225, and 252 are proposed to be amended
as follows:
1. The authority citation for 48 CFR Parts 212, 225, and 252
continues to read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 212--ACQUISITION OF COMMERCIAL ITEMS
2. Section 212.503 is amended by revising paragraph (a)(xi) to read
as follows:
212.503 Applicability of certain laws to Executive Agency contracts
for the acquisition of commercial items.
(a) * * *
(xi) Section 8099, Public Law 104-61, Restriction on Acquisition of
Ball and Roller Bearings, and similar sections in subsequent defense
appropriations acts, if ball or roller bearings are components of the
commercial items being acquired.
* * * * *
3. Section 212.504 is amended by revising paragraphs (a) (xviii)
and (xxvi) and removing and reserving paragraphs (a) (xxiii) and (xxiv)
to read as follows:
212.504 Applicability of certain laws to subcontracts for the
acquisition of commercial items.
(a) * * *
(xviii) 10 U.S.C. 2534, Miscellaneous Limitations on the
Procurement of Goods Other Than United States Goods, if the restricted
foreign goods are components of--
(A) The commercial items being acquired; or
(B) The commercial components being acquired.
* * * * *
(xxiii) [Reserved.]
(xxiv) [Reserved.]
* * * * *
(xxvi) Section 8099, Public Law 104-61, Restriction on Acquisition
of Ball and Roller Bearings, and similar sections in subsequent defense
appropriations acts, if ball or roller bearings are components of--
(A) The commercial items being acquired; or
(B) The commercial components being acquired.
* * * * *
PART 225--FOREIGN ACQUISITION
4. Section 225.7019-2 is amended by revising paragraph (b) to read
as follows:
225.7019-2 Exceptions.
* * * * *
(b) The restriction in 225.7019-1(b) does not apply to--
(1) Contracts for the acquisition of commercial items incorporating
ball or roller bearings (see 212.503(a)(xi); or
(2) Subcontracts for the acquisition of--
(i) Commercial items incorporating ball or roller bearings; or
(ii) Commercial components incorporating ball or roller bearings
(see 212.504(a)(xxvi)).
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
5. Section 252.225-7016 is amended by revising the clause date and
paragraphs (c)(1) and (d) to read as follows:
252.225-7016 Restriction on acquisition of ball and roller bearings.
* * * * *
Restriction on Acquisition of Ball and Roller Bearings (XXX 1999)
* * * * *
(c)(1) The restriction in paragraph (b) of this clause does not
apply to the extent that the end items containing ball or roller
bearings or components containing ball or roller bearings are
commercial items.
* * * * *
(d) The restriction in paragraph (b) of this clause may be
waived upon request from the Contractor in accordance with
subsection 225.7019-3 of the Defense Federal Acquisition Regulation
Supplement (DFARS). If the restriction is waived for miniature and
instrument ball bearings, the Contractor agrees to acquire a like
quantity and type of domestic manufacture for nongovernmental use,
unless the miniature and instrument ball bearings being acquired are
manufactured in the United Kingdom or an exception applies in
accordance with DFARS 225.7019-2(a).
* * * * *
[FR Doc. 99-23729 Filed 9-13-99; 8:45 am]
BILLING CODE 5000-04-M