[Federal Register Volume 64, Number 35 (Tuesday, February 23, 1999)]
[Rules and Regulations]
[Pages 8727-8729]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-4341]
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DEPARTMENT OF DEFENSE
48 CFR Parts 212, 225, and 252
[DFARS Case 98-D305]
Defense Federal Acquisition Regulation Supplement; People's
Republic of China
AGENCY: Department of Defense (DoD).
ACTION: Interim rule.
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SUMMARY: The Director of Defense Procurement has issued an interim rule
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amending the Defense Federal Acquisition Regulation Supplement (DFARS)
to implement Section 8120 of the DoD Appropriations Act for fiscal year
1999. Section 8120 places restrictions on the award of contracts to
companies owned or partially owned by the People's Republic of China or
the People's Liberation Army of the People's Republic of China.
DATES: Effective date: February 23, 1999.
Comment date: Comments on the interim rule should be submitted in
writing to the address shown below on or before April 26, 1999, 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, DC 20301-
3062. Telefax (703) 602-0350.
E-mail comments submitted over the Internet should be addressed to:
dfars@acq.osd.mil
Please cite DFARS Case 98-D305 in all correspondence related to
this issue. E-mail comments should cite DFARS Case 98-D305 in the
subject line.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, (703) 602-0131.
SUPPLEMENTARY INFORMATION:
A. Background
This interim rule amends DFARS 212.301, adds a new section at
225.771, and adds a new solicitation provision at 252.225-7017. The
rule implements Section 8120 of the DoD Appropriations Act for fiscal
year 1999 (Pub. L. 105-262). Section 8120 provides that no funds
appropriated under Title III (Procurement) or Title IV (Research,
Development, Test and Evaluation) of the Act may be used to enter into
or renew a contract with any company owned or partially owned by the
People's Republic of China or the People's Liberation Army of the
People's Republic of China.
B. Regulatory Flexibility Act
The interim 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 rule
pertains only to companies owned or partially owned by the People's
Republic of China or the People's Liberation Army of the People's
Republic of China. 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 98-D305 in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the interim 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.
D. Determination To Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense that urgent and compelling reasons exist to publish this
interim rule prior to affording the public an opportunity to comment.
This rule implements Section 8120 of the DoD Appropriations Act for
fiscal year 1999 (Pub. L. 105-262). Section 8120 provides that no funds
appropriated under titles III and IV of the Act may be used to enter
into or renew a contract with any company owned or partially owned by
the People's Republic of China or the People's Liberation Army of the
People's Republic of China. Section 8120 became effective on October
17, 1998. 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 212, 225, and 252
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, 48 CFR Parts 212, 225, and 252 are 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 212.301 is amended in paragraph (f)(ii) in the second
sentence by revising the reference ``252.225-7000'' to read ``252.212-
7000'', and by adding a new paragraph (f)(v) to read as follows:
212.301 Solicitation provisions and contract clauses for the
acquisition of commercial items.
(f) * * *
(v) Use the provision at 252.225-7017, Prohibition on Award to
Companies Owned by the People's Republic of China, as prescribed in
225.771.
PART 225--FOREIGN ACQUISITION
3. Sections 225.771, 225.771-1, 225.771-2, 225.771-3, and 225.771-4
are added to read as follows:
225.771 Prohibition on acquisition from the People's Republic of
China.
225.771-1 Definition.
``People's Republic of China'' is defined in the provision at
252.225-7017, Prohibition on Award to Companies Owned by the People's
Republic of China.
225.771-2 Legal authority.
This section implements Section 8120 of the DoD Appropriations Act
for fiscal year 1999 (Pub. L. 105-262).
225.771-3 Prohibition on contract award.
Do not award or renew a contract with any company owned or
partially owned by the People's Republic of China or the People's
Liberation Army of the People's Republic of China, if using funds made
available by Title III (Procurement) or Title IV (Research,
Development, Test and Evaluation) of Pub. L. 105-262.
225.771-4 Solicitation provision.
Use the provision at 252.225-7017, Prohibition on Award to
Companies Owned by the People's Republic of China, in solicitations for
contracts that will use funds made available by Title III or IV of Pub.
L. 105-262.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
4. Section 252.225-7017 is added to read as follows:
252.225-7017 Prohibition on Award to Companies Owned by the People's
Republic of China.
As prescribed in 225.771-4, use the following provision:
Prohibition on Award To Companies Owned by the People's Republic of
China (Feb. 1999)
(a) Definition. ``People's Republic of China,'' as used in this
provision, means the government of the People's Republic of China,
including its political subdivisions, agencies, and
instrumentalities.
(b) Prohibition on award. Section 8120 of the Department of
Defense Appropriations Act for fiscal year 1999 (Pub. L. 105-262)
prohibits the award of a contract under this solicitation to any
company owned, or partially owned, by the People's Republic of China
or the People's Liberation Army of the People's Republic of China.
(c) Representation. By submission of an offer, the offeror
represents that it is not
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owned, or partially owned, by the People's Republic of China or the
People's Liberation Army of the People's Republic of China.
(End of provision)
[FR Doc. 99-4341 Filed 2-22-99; 8:45 am]
BILLING CODE 5000-04-M
