[Federal Register Volume 63, Number 158 (Monday, August 17, 1998)]
[Rules and Regulations]
[Pages 43887-43889]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21906]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
48 CFR Parts 225 and 252
[DFARS Case 98-D016]
Defense Federal Acquisition Regulation Supplement; Waiver of 10
U.S.C. 2534--United Kingdom
AGENCY: Department of Defense (DoD).
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The Director of Defense Procurement has issued an interim rule
amending the Defense Federal Acquisition Regulation Supplement (DFARS)
to implement a waiver of domestic source restrictions for certain
defense items produced in the United Kingdom. The waiver was executed
by the Under Secretary of Defense (Acquisition and Technology) and
became effective on August 4, 1998.
DATES: Effective date: August 17, 1998.
Comment date: Comments on the interim rule should be submitted in
writing to the address shown below on or before October 16, 1998, 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-D016 in all correspondence related to
this issue. E-mail comments should cite DFARS Case 98-D016 in the
subject line.
FOR FURTHER INFORMATION CONTACT:
Ms. Amy Williams, (703) 602-0131.
SUPPLEMENTARY INFORMATION:
A. Background
This interim rule amends DFARS Subpart 225.70 and the clauses at
DFARS 252.225-7016 and 252.225-7029 to implement a waiver of the
domestic source restrictions of 10 U.S.C. 2534(a) for certain defense
items produced in the United Kingdom. A notice of the waiver was
published in the Federal Register on July 20, 1998 (63 FR 38815). This
rule amends DFARS guidance pertaining to the acquisition of air circuit
breakers for naval vessels, ball and roller bearings, and totally
enclosed lifeboats. Anchor and mooring chain, which is covered by the
waiver, is not addressed in this rule, as the more stringent defense
appropriations act restrictions on the acquisition of anchor and
mooring chain presently take precedence over the restrictions of 10
U.S.C. 2534. The other items listed in the July 20, 1998, notice of
waiver are not covered in the DFARS and, therefore, are not addressed
in this rule.
B. Regulatory Flexibility Act
This 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 there
are no known small business manufacturers of the restricted air circuit
breakers; defense appropriations acts presently impose domestic source
restrictions on the acquisition of totally enclosed lifeboats
[[Page 43888]]
and noncommercial ball and roller bearings; and the restrictions of 10
U.S.C. 2534(a) do not apply to acquisitions of commercial items
incorporating ball or roller bearings. An initial regulatory
flexibility analysis has, therefore, not been performed. Comments are
invited from small businesses and other interested parties. Comments
from small entities concerning the affected DFARS subpart also will be
considered in accordance with 5 U.S.C. 610. Such comments should be
submitted separately and should cite DFARS Case 98-D016 in
correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the 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 interim rule implements a waiver of the domestic source
restrictions of 10 U.S.C. 2534(a) for certain items manufactured in the
United Kingdom. The Under Secretary of Defense (Acquisition and
Technology) has determined that application of the limitation at 10
U.S.C. 2534(a) impedes the reciprocal procurement of defense items
under DoD's memorandum of understanding with the United Kingdom. The
waiver became effective on August 4, 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 225 and 252
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, 48 CFR Parts 225 and 252 are amended as follows:
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.
PART 225--FOREIGN ACQUISITION
2. Section 225.7005 is amended by redesignating the paragraphs as
follows:
------------------------------------------------------------------------
Paragraph Redesignated as
------------------------------------------------------------------------
Introductory text......................... (a) introductory text.
(a)(1) Introductory text.................. (a)(1)(i) introductory text.
(a)(1)(i)................................. (a)(1)(i)(A).
(a)(1)(ii)................................ (a)(1)(i)(B).
(a)(2).................................... (a)(1)(ii).
(a)(3).................................... (a)(1)(iii).
(a)(4) introductory text.................. (a)(1)(iv) introductory
text.
(a)(4)(i)................................. (a)(1)(iv)(A).
(a)(4)(ii)................................ (a)(1)(iv)(B).
(b) introductory text..................... (a)(2) introductory text.
(b)(1).................................... (a)(2)(i).
(b)(2).................................... (a)(2)(ii).
(b)(3).................................... (a)(2)(iii).
(b)(4).................................... (a)(2)(iv).
(b)(5).................................... (a)(2)(v).
(c)....................................... (a)(3).
------------------------------------------------------------------------
In addition, section 225.7005 is amended by adding a new paragraph
(b) to read as follows:
225.7005 Waiver of certain restrictions.
* * * * *
(b) In accordance with the provisions of paragraphs (a)(1)(i)
through (a)(1)(iii) of this section, the Under Secretary of Defense
(Acquisition and Technology) has waived the restrictions of 10 U.S.C.
2534(a) for certain items manufactured in the United Kingdom, including
air circuit breakers for naval vessels and totally enclosed lifeboats
(see 225.7016 and 225.7022). This waiver applies to--
(1) Procurements under solicitations issued on or after August 4,
1998; and
(2) Subcontracts and options under contracts entered into prior to
August 4, 1998, under the conditions described in paragraphs (a)(1)(iv)
of this section.
3. Section 225.7007-4 is revised to read as follows:
225.7007-4 Waiver.
The waiver criteria at 225.7005(a) apply to this restriction.
4. Section 225.7010-3 is revised to read as follows:
225.7010-3 Waiver.
The waiver criteria at 225.7005(a) apply to this restriction.
5. Section 225.7016-1 is revised to read as follows:
225.7016-1 Restriction.
In accordance with 10 U.S.C. 2534 and 225.7005(b), do not acquire
air circuit breakers for naval vessels unless they are manufactured in
the United States, Canada, or the United Kingdom.
225.7016-2 [Amended]
6. Section 225.7016-2 is amended in paragraph (b) in the first
sentence by removing at the end ``and Canada''.
7. Section 225.7016-3 is revised to read as follows:
225.7016-3 Waiver.
The waiver criteria at 225.7005(a) apply to this restriction.
8. Section 225.7019-1 is amended by revising paragraph (a) to read
as follows:
225.7019-1 Restrictions.
(a) In accordance with 10 U.S.C. 2534 and 225.7019-3(b)(5), through
fiscal year 2000, do not acquire ball and roller bearings or bearing
components that are not manufactured in the United States, Canada, or
the United Kingdom.
* * * * *
9. Section 225.7019-3 is amended by paragraph (b)(5) to read as
follows:
225.7019-3 Waiver.
* * * * *
(b) * * *
(5) In accordance with the provisions of paragraphs (b)(1) through
(b)(3) of this subsection, the Under Secretary of Defense (Acquisition
and Technology) has waived the restrictions of 10 U.S.C. 2534(a)(5) for
ball and roller bearings manufactured in the United Kingdom. This
waiver applies to--
(i) Procurements under solicitations issued on or after August 4,
1998; and
(ii) Subcontracts and options under contracts entered into prior to
August 4, 1998, under the conditions described in paragraph (b)(4) of
this subsection.
* * * * *
10. Section 225.7022-1 is amended in paragraph (b) by revising the
first sentence to read as follows:
225.7022-1 Restrictions.
* * * * *
(b) In accordance with 10 U.S.C. 2534(a)(3)(B) and 225.7005(b), do
not purchase a totally enclosed lifeboat that is a component of a naval
vessel, unless it is manufactured in the United States, Canada, or the
United Kingdom. * * *
225.7022-2 [Amended]
11. Section 225.7022-2 is amended in paragraph (b) by removing at
the end ``and Canada''.
12. Section 225.7022-3 is revised to read as follows:
225.7022-3 Waiver.
The waiver criteria at 225.7005(a) apply only to the restriction of
225.7022-1(b).
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
13. Section 252.225-7016 is amended by revising the clause date and
paragraph (c)(1) to read as follows:
252.225-7016 Restriction of Acquisition of Ball and Roller Bearings.
* * * * *
[[Page 43889]]
RESTRICTION ON ACQUISITION OF BALL AND ROLLER BEARINGS (AUG 1998)
* * * * *
(c)(1) The restriction in paragraph (b) of this clause does not
apply to the extent that--
(i) The end items or components containing ball or roller
bearings are commercial items; or
(ii) The ball or roller bearings are commercial items
manufactured in the United Kingdom.
* * * * *
14. Section 252.225-7029 is revised to read as follows:
252.225-7029 Preference for United States or Canadian Air Circuit
Breakers.
As prescribed in 225.7016-4, use the following clause:
PREFERENCE FOR UNITED STATES OR CANADIAN AIR CIRCUIT BREAKERS (AUG
1998)
(a) Unless otherwise specified in its offer, the Contractor
agrees that air circuit breakers for naval vessels provided under
this contract shall be manufactured in the United States, Canada, or
the United Kingdom.
(b) Unless an exception applies under Defense Federal
Acquisition Regulation Supplement (DFARS) 225.7016-2 or a waiver is
granted under DFARS 225.7005(a) (1) or (2), preference will be given
to air circuit breakers manufactured in the United States or Canada
by adding 50 percent for evaluation purposes to the offered price of
all other air circuit breakers, except those manufactured in the
United Kingdom.
(End of clause)
[FR Doc. 98-21906 Filed 8-14-98; 8:45 am]
BILLING CODE 5000-04-M
