[Federal Register Volume 60, Number 249 (Thursday, December 28, 1995)]
[Proposed Rules]
[Pages 67115-67116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31336]
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DEPARTMENT OF DEFENSE
48 CFR Parts 225 and 252
Defense Federal Acquisition Regulation Supplement; Foreign
Product Restrictions
AGENCY: Department of Defense (DoD).
ACTION: Proposed rule with request for comment.
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SUMMARY: The Director of Defense Procurement is proposing to amend the
Defense Federal Acquisition Regulation Supplement (DFARS) to rescind
most of the non-statutory foreign product restrictions in subpart
225.71.
DATES: Comment Date: Comments on the proposed rule should be submitted
in writing to the address below on or before February 26, 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-
D033 in all correspondence related to this issue.
FOR FURTHER INFORMATION CONTACT:
Ms. Amy Williams, (703) 602-0131.
SUPPLEMENTARY INFORMATION:
A. Background
This proposed rule amends language in the Defense Federal
Acquisition Regulation Supplement (DFARS) to rescind most of the non-
statutory foreign product restrictions in Subpart 225.71, except for
the restrictions on several forging items, which are still under
review.
B. Regulatory Flexibility Act
The proposed rule may 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 proposed
rule will affect the preference for domestic manufacturers of miniature
and instrument ball bearings, precision components for certain
mechanical time devices, high purity silicon, high carbon ferrochrome,
and certain foreign items. It is estimated that approximately 135
contractors, some of which are small businesses, will now be subject to
foreign competition. An Initial Regulatory Flexibility Analysis has
been prepared and 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-D033
in correspondence.
C. Paperwork Reduction Act
Because many items are no longer restricted, the proposed rule will
result in a reduction of the paperwork burden associated with DFARS
clause 252.225-7025, Foreign Source Restrictions (OMB Control No. 0704-
0229), which requires that contractors maintain records showing
compliance with the restrictions until three years after final payment
and make records available upon request of the Contracting Officer. The
rule does not impose any additional information collection requirements
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 Parts 225 and 252
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, 48 CFR Parts 225 and 252 are proposed to be 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 225.7102 is revised to read as follows:
225.7102 Forgings policy.
DoD requirements for the following forging items, whether as end
items or components, shall be acquired from U.S. or Canadian sources to
the maximum extent practicable--
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Items Categories
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Ship propulsion shafts.................... Excludes service and landing
craft shafts.
Periscope tubes........................... All.
Ring forgings for bull gears.............. All greater than 120 inches
in diameter.
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3. Section 225.7103 is revised to read as follows:
225.7103 Forgings exceptions.
The policy in 225.7102 does not apply to acquisitions--
(a) When using simplified acquisition procedures, unless the
restricted item is the end item being purchased:
(b) Overseas for overseas use; or
(c) When the quantity acquired exceeds the amount needed to
maintain the U.S. defense mobilization base (provided such quantity is
an economical purchase quantity). The restriction to domestic sources
does not apply to the quantity above that required to maintain the
base, in which case, qualifying country sources may compete.
4. Section 225.7104 is revised to read as follows:
225.7104 Forgings waivers.
Upon request from a prime contractor, the contracting officer may
waive the requirement for domestic manufacture of the items covered by
the policy in 225.7102.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
5. Section 252.225-7105, is revised to read as follows:
252.225-7025 Foreign Source Restrictions.
As prescribed in 225.7105, use the following clause:
Foreign Source Restrictions (XXX XXXX)
(a) Definitions. As used in this clause--
(1) ``Domestic manufacture'' means manufactured in the United
States or Canada if the Canadian firm--
(i) Normally produces similar items or is currently producing
the item in support of DoD contracts (as prime or subcontractor);
and
(ii) Agrees to become (upon receiving a contract/order) a
planned producer under
[[Page 67116]]
DoD's Industrial Preparedness Program, if it is not already a planned
producer for the item.
(2) ``Forging items'' means--
------------------------------------------------------------------------
Items Categories
------------------------------------------------------------------------
Ship propulsion shafts.................... Excludes service and landing
craft shafts.
Periscope tubes........................... All.
Ring forgings for bull gears.............. All greater than 120 inches
in diameter.
------------------------------------------------------------------------
(b) The Contractor agrees that end items and their components
delivered under this contract shall contain forging items that are
of domestic manufacture only.
(c) The restrictions in paragraph (b) of this clause may be
waived upon request from the Contractor in accordance with section
225.7104 of the Defense FAR Supplement.
(d) 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.
(e) The Contractor agrees to insert this clause, including this
paragraph (e), in subcontracts and purchase orders issued in
performance of this contract, when products purchased contain
restricted forging items.
(End of clause)
[FR Doc. 95-31336 Filed 12-27-95; 8:45 am]
BILLING CODE 5000-04-M
