[Federal Register Volume 64, Number 138 (Tuesday, July 20, 1999)]
[Notices]
[Pages 38896-38897]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18217]
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DEPARTMENT OF DEFENSE
Waiver of 10 U.S.C. 2534 for Certain Defense Items Produced in
the United Kingdom
AGENCY: Department of Defense (DoD).
[[Page 38897]]
ACTION: Notice of waiver of 10 U.S.C. 2534 for certain defense items
produced in the United Kingdom.
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SUMMARY: The Under Secretary of Defense (Acquisition and Technology) is
waiving the limitation of 10 U.S.C. 2534 for certain defense items
produced to the United Kingdom (UK). 10 U.S.C. 2534 limits DoD
procurement of certain items to sources in the national technology and
industrial base. The waiver will permit procurement of items enumerated
from sources in the UK, unless otherwise restricted by statute.
EFFECTIVE DATE: This waiver is effective for one year, beginning August
4, 1999.
FOR FURTHER INFORMATION CONTACT: Mr. Michael Mutty, OUSD (A&T),
Director of Defense Procurement, Foreign Contracting, Room 3C762, 3060
Defense Pentagon, Washington, DC 20301-3060, telephone (703) 697-9353.
SUPPLEMENTARY INFORMATION: Subsection (a) of 10 U.S.C. 2534 provides
that the Secretary of Defense may procure the items listed in that
subsection only if the manufacturer of the item is part of the national
technology and industrial base. Subsection (i) of 10 U.S.C. 2534
authorizes the Secretary of Defense to exercise the waiver authority in
subsection (d), on the basis of the applicability of paragraph (2) or
(3) of that subsection, only if the waiver is made for a particular
item listed in subsection (a) and for a particular foreign country.
Subsection (d) authorizes a waiver if the Secretary determines that
application of the limitation ``would impede the reciprocal procurement
of defense items under a memorandum of understanding providing for
reciprocal procurement of defense items'' and if he determines that
``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.'' The
Secretary of Defense has delegated the waiver authority of 10 U.S.C.
2534(d) to the Under Secretary of Defense (Acquisition and Technology).
DoD has a reciprocal procurement Memorandum of Understanding (MOU)
with the UK that was signed on December 13, 1994.
The Under Secretary of Defense (Acquisition and Technology) finds
that the UK 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 the UK, and also finds that
application of the limitation in 10 U.S.C. 2534 against defense items
produced in the UK would impede the reciprocal procurement of defense
items under the MOU.
Under the authority of 10 U.S.C. 2534, the Under Secretary of
Defense (Acquisition and Technology) has determined that application of
the limitation of 10 U.S.C. 2534(a) to the procurement of any defense
item produced in the UK that is listed below would impede the
reciprocal procurement of defense items under the MOU with the UK.
On the basis of the foregoing, the Under Secretary of Defense
(Acquisition and Technology) is waiving the limitation in 10 U.S.C.
2534(a) for procurements of any defense item listed below that is
produced in the UK. This waiver applies only to the limitations in 10
U.S.C. 2534(a). It does not apply to any other limitation, including
sections 8016 and 8067 of the DoD Appropriations Act for Fiscal Year
1999 (Pub. L. 105-262). This waiver applies to procurements under
solicitations issued during the period from August 4, 1999, to August
3, 2000. A similar waiver was granted for the period from August 4,
1998, to August 3, 1999 (63 FR 38815, July 20, 1998). For contracts
entered into prior to August 4, 1998, this waiver applies to
procurements of the defense items listed below under--
(1) Subcontracts entered into during the period from August 4,
1999, to August 3, 2000, provided the prime contract is modified to
provide the Government adequate consideration such as lower cost or
improved performance; and
(2) Options that are exercised during the period from August 4,
1999, to August 3, 2000, if the option prices are adjusted for any
reason other than the application of the waiver, and if the contract is
modified to provide the Government adequate consideration such as lower
cost or improved performance.
List of Items to Which This Waiver Applies
1. Air circuit breakers
2. Welded shipboard anchor and mooring chain with a diameter of four
inches or less
3. Gyrocompasses
4. Electronic navigation chart systems
5. Steering controls
6. Pumps
7. Propulsion and machinery control systems
8. Totally enclosed lifeboats
9. Ball and roller bearings
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
[FR Doc. 99-18217 Filed 7-19-99; 8:45 am]
BILLING CODE 5000-04-M
