96-29331. Defense Federal Acquisition Regulation Supplement; Foreign Machine Tools and Powered and Non-Powered Valves  

  • [Federal Register Volume 61, Number 222 (Friday, November 15, 1996)]
    [Rules and Regulations]
    [Pages 58488-58489]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-29331]
    
    
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    DEPARTMENT OF DEFENSE
    
    48 CFR Parts 212, 225, and 252
    
    [DFARS Case 96-D023]
    
    
    Defense Federal Acquisition Regulation Supplement; Foreign 
    Machine Tools and Powered and Non-Powered Valves
    
    AGENCY: Department of Defense (DoD).
    
    ACTION: Final rule.
    
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    SUMMARY: The Director of Defense Procurement has issued a final rule 
    amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
    to reflect the expiration of certain statutory restrictions on the 
    acquisition of machine tools and powered and non-powered valves.
    
    EFFECTIVE DATE: November 15, 1996.
    
    FOR FURTHER INFORMATION CONTACT: Defense Acquisition Regulations 
    Council, Attn: Ms. Amy Williams, PDUSD (A&T) DP (DAR), IMD 3D139, 3062 
    Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0131; 
    telefax (703) 602-0350. Please cite DFARS Case 96-D023 in all 
    correspondence related to this issue.
    
    SUPPLEMENTARY INFORMATION:
    
    A. Background
    
        10 U.S.C. 2534(a)(4) restricts the acquisition of non-domestic (1) 
    powered and non-powered valves in Federal Supply Classes 4810 and 4820 
    used in piping for naval surface ships and submarines, and (2) machine 
    tools in certain Federal Supply Classes for metal-working machinery. 
    This restriction ceased to be effective on October 1, 1996. Therefore, 
    the implementing DFARS guidance at 225.7004 and the related clauses at 
    252.225-7017 and 252.225-7040 have been removed. In addition, the 
    following associated conforming and editorial changes have been made:
         Obsolete statutory references at 212.504(a) (xix) through 
    (xxi) have been removed.
         A new section has been established at 225.7005 to specify 
    the waiver criteria (previously included in 225.7004-4) for items still 
    restricted under 10 U.S.C. 2534.
         A reference to the clause at 252.225-7017 has been removed 
    from the clause at 252.212-7001.
    
    B. Regulatory Flexibility Act
    
        This final rule does not constitute a significant revision within 
    the meaning of FAR 1.501 and Public Law 98-577 and publication for 
    public comment is not required. However, comments from small entities 
    concerning the affected DFARS subparts will be considered in accordance 
    with 5 U.S.C. 610. Such comments should cite DFARS Case 96-D023 in 
    correspondence.
    
    C. Paperwork Reduction Act
    
        This final rule eliminates the information collection requirements 
    at 252.225-7040, which previously were approved by the Office of 
    Management and Budget (OMB) under 44 U.S.C. 3501, et seq. (OMB 
    Clearance Number 0704-0229).
    
    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
    
    
    212.504  [Amended]
    
        2. Section 212.504 is amended by removing and reserving paragraphs 
    (a)(xix) through (xxi).
    
    [[Page 58489]]
    
    PART 225--FOREIGN ACQUISITION
    
    
    225.7004  [Removed and Reserved]
    
        3. Section 225.7004 is removed and reserved.
    
    
    225.7004-1 through 225.7004-6  [Removed]
    
        4. Sections 225.7004-1 through 225.7004-6 are removed.
        5. Section 225.7005 is revised to read as follows:
    
    
    225.7005  Waiver of certain restrictions.
    
        Where provided for elsewhere in this subpart, the restrictions on 
    certain foreign purchases under 10 U.S.C. 2534 may be waived as 
    follows:
        (a) The head of the contracting activity may waive the restriction 
    on a case-by-case basis upon execution of a determination and findings 
    that any of the following applies:
        (1) The restriction would cause unreasonable delays.
        (2) 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.
        (3) 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.
        (4) Satisfactory quality items manufactured in the United States or 
    Canada are not available.
        (5) Application of the restriction would result in the existence of 
    only one source for the item in the United States or Canada.
        (6) Application of the restriction is not in the national security 
    interests of the United States.
        (7) Application of the restriction would adversely affect a U.S. 
    company.
        (b) The restriction is waived when it would cause unreasonable 
    costs. The cost of the item of U.S. or Canadian origin is unreasonable 
    if it exceeds 150 percent of the offered price, inclusive of duty, of 
    items which are not of U.S. or Canadian origin.
        6. Section 225.7007-4 is revised to read as follows:
    
    
    225.7007-4  Waiver.
    
        The waiver criteria at 225.7005 apply to this restriction.
        7. Section 225.7010-3 is revised to read as follows:
    
    
    225.7010-3  Waiver.
    
        The waiver criteria at 225.7005 apply to this restriction.
        8. Section 225.7016-3 is revised to read as follows:
    
    
    225.7016-3  Waiver.
    
        The waiver criteria at 225.7005 apply to this restriction.
        9. Section 225.7022-3 is revised to read as follows:
    
    
    225.7022-3  Waiver.
    
        The waiver criteria at 225.7005 apply only to the restriction of 
    225.7022-1(b).
    
    PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
    
    
    252.212-7001  [Amended]
    
        10. Section 252.212-7001 is amended by revising the clause date to 
    read ``(NOV 1996)'' and by removing the entry ``________ 252.225-7017 
    Preference for United States and Canadian Valves and Machine Tools (10 
    U.S.C. 2534(c)(2)).''.
    
    
    252.225-7017  [Removed and Reserved]
    
        11. Section 252.225-7017 is removed and reserved.
    
    
    252.225-7040  [Removed]
    
        12. Section 252.225-7040 is removed.
    
    [FR Doc. 96-29331 Filed 11-14-96; 8:45 am]
    BILLING CODE 5000-04-M
    
    
    

Document Information

Effective Date:
11/15/1996
Published:
11/15/1996
Department:
Defense Department
Entry Type:
Rule
Action:
Final rule.
Document Number:
96-29331
Dates:
November 15, 1996.
Pages:
58488-58489 (2 pages)
Docket Numbers:
DFARS Case 96-D023
PDF File:
96-29331.pdf
CFR: (3)
48 CFR 212
48 CFR 225
48 CFR 252