[Federal Register Volume 61, Number 18 (Friday, January 26, 1996)]
[Rules and Regulations]
[Pages 2631-2632]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-1017]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 9
[FAC 90-37; FAR Cases 93-301 and 93-306; Item III]
RIN 9000-AF40
Federal Acquisition Regulation; Made in America Labels/Unfair
Trade Practices
AGENCY: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule adopted as final.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council have agreed on a final rule to amend
the Federal Acquisition Regulation (FAR) to implement sections 201 and
202 of the Defense Production Act. Section 201 directs that the FAR be
amended to address the responsibility of contractors who engage in
unfair trade practices as defined in section 201. Section 202 directs
that the FAR be amended to address the responsibility of persons that
intentionally affix a label bearing a fraudulent ``Made in America''
inscription to a product sold in or shipped to the United States. This
regulatory action was not subject to Office of Management and Budget
review under Executive Order 12866, dated September 30, 1993.
EFFECTIVE DATE: January 26, 1996.
FOR FURTHER INFORMATION CONTACT: Mr. Ralph De Stefano (202) 501-1758 in
reference to these combined FAR cases. For general information, contact
the FAR Secretariat, Room 4037, GS Building, Washington, DC 20405 (202)
501-4755. Please cite FAC 90-37, FAR cases 93-301 and 93-306.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule implements the requirements of sections 201 and 202
of the Defense Production Act. Section 201 of the Defense Production
Act (Public Law 102-558) provides that any contractor who has engaged
in unfair trade practices may be found to lack such business integrity
to affect the contractor's responsibility to perform a Government
contract or subcontract. Section 201 defines ``unfair trade
[[Page 2632]]
practices'' as the commission by a contractor of any of the following
acts: (1) A violation of Section 337 of the Tariff Act of 1930 (19
U.S.C. 1337), as determined by the International Trade Commission (2) A
violation, as determined by the Secretary of Commerce, of any agreement
of the group known as the ``Coordination Committee'' for purposes of
the Export Administration Act of 1979 (50 U.S.C. App. 2401, et seq.) or
any similar bilateral or multilateral export control agreement, or (3)
A knowingly false statement regarding a material element of a
certification concerning the foreign content of an item of supply, as
determined by the Secretary of the Department or the head of the agency
to which such certificate was furnished. Section 201 mandates that this
statement of public contract law policy be implemented by amending FAR
subpart 9.4, not later than 270 days after the date of enactment of the
Defense Production Act (October 28, 1992).
Section 202 of the Defense Production Act (Public Law 102-558)
provides that any person determined to have intentionally affixed a
label bearing a ``Made in America'' inscription (or any inscription
having the same meaning) to a product sold in or shipped to the United
States, when such product was not made in the United States, may be
found to lack business integrity or business honesty to such a degree
as to affect their responsibility to perform a Federal contract or
subcontract. Section 202 mandates that this statement of policy be
implemented by amending FAR Subpart 9.4 (Debarment, Suspension, and
Ineligibility) not later than 270 days (July 28, 1993) after the date
of enactment of the Defense Production Act (October 28, 1992).
A combined interim rule was published in the Federal Register at 59
FR 11368 on March 10, 1994. Two sources submitted public comments. No
changes were made as a result of those comments.
B. Regulatory Flexibility Act
The Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration certify that this
final rule will not have a significant economic impact on a substantial
number of small entities under the Regulatory Flexibility Act, 5 U.S.C.
601, et seq., because the rule only applies to entities who engage in
unfair trade practices or who intentionally affix fraudulent ``Made in
America'' labels to products sold in or shipped to the United States.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose recordkeeping or information collection
requirements, or collections of information from offerors, contractors,
or members of the public which require the approval of the Office of
Management and Budget under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Part 9
Government procurement.
Dated: January 11, 1996.
Edward C. Loeb,
Acting Director, Office of Federal Acquisition Policy.
Interim Rule Adopted as Final Without Change
Accordingly, the interim rule amending 48 CFR part 9, which was
published at 59 FR 11371, March 10, 1994, (FAC 90-20, Item II) is
adopted as a final rule without change.
The authority citation for 48 CFR part 9 continues to read as
follows:
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
[FR Doc. 96-1017 Filed 1-25-96; 8:45 am]
BILLING CODE 6820-EP-M
