[Federal Register Volume 59, Number 44 (Monday, March 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4881]


[[Page Unknown]]

[Federal Register: March 7, 1994]


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DEPARTMENT OF DEFENSE
48 CFR Parts 247 and 252

 

Defense Federal Acquisition Regulation Supplement; Reflagging and 
Repair Work

AGENCY: Department of Defense (DoD).

ACTION: Interim rule with request for public comments.

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SUMMARY: The Director of Defense Procurement is issuing an interim rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to restrict performance of reflagging or repair work on any vessel 
utilized under a time charter contract to performance in the United 
States or its territories.

DATES: Effective Date: February 25; 1994; Comment Date: Comments on the 
interim rule should be submitted to the address shown below on or 
before May 6, 1994 to be considered in formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to The 
Defense Acquisition Regulations Council, ATTN: Mrs. Linda Holcombe, 
OUSD(A&T)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 
20301-3062. Telefax number (703) 697-9845. Please cite DFARS Case 93-
D313 in all correspondence related to this issue.

FOR FURTHER INFORMATION CONTACT:
Mrs. Linda Holcombe, (703) 697-7266.

SUPPLEMENTARY INFORMATION: 

A. Background

    Section 315 of the National Defense Authorization Act for Fiscal 
Year 1994 (Public Law 103-160) places restrictions on reflagging or 
repair work on any vessel utilized under a time charter contract.
    The Director, Defense Procurement, issued Departmental Letter 94-
002, February 25, 1994, to provide that all time charter solicitations 
and contracts for the use of a vessel for the transportation of 
supplies must include a clause which restricts performance of 
reflagging or repair work to performance in the United States, or its 
territories, unless a waiver has been granted by the Secretary of 
Defense.

B. Regulatory Flexibility Act

    The 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 it 
restricts performance of reflagging or repair work to performance 
within the United States or its territories. This restriction is 
limited to all time charter solicitations and contracts for the use of 
a vessel for the transportation of supplies. An initial Regulatory 
Flexibility Analysis has therefore not been performed. The interim rule 
applies to both large and small businesses. Comments are invited from 
small businesses and other interested parties. Comments from small 
entities will be considered in accordance with 5 U.S.C. 610. Such 
comments must be submitted separately and cite DFARS Case 93-D313 in 
all correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the interim rule 
does not impose reporting or recordkeeping requirements which require 
the approval of OMB under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 247 and 252

    Government procurement.
Claudia L. Naugle,
Deputy Director, Defense Acquisition Regulations Council.

    Therefore, 48 CFR parts 247 and 252 are amended as follows:
    1. The authority citation for 48 CFR parts 247 and 252 continues to 
read as follows:

    Authority: 41 U.S.C. 421 and (FAR) 48 CFR part 1, subpart 1.3.

PART 247--TRANSPORTATION

    2. Section 247.571 is amended by redesignating paragraph (c) as 
paragraph (e) and by adding paragraphs (c) and (d) to read as follows:


247.571  Policy.

* * * * *
    (c) Except as provided in paragraphs (d) and (e) of this section, 
any vessel used under a time charter contract for the transportation of 
supplies shall have all reflagging or repair work, as defined in the 
clause at 252.247-7025, performed in the United States or its 
territories.
    (d) The Secretary of Defense may waive the requirement described in 
paragraph (c) if the Secretary determines that such waiver is critical 
to the national security of the United States.
* * * * *
    3. Section 247.573 is amended to add paragraph (d) as follows:


247.573  Solicitation provision and contract clauses.

* * * * *
    (d) Use the clause at 252.247-7025, Reflagging or Repair Work, in 
all time charter solicitations/contracts for the use of a vessel for 
the transportation of supplies, unless a waiver has been granted in 
accordance with 247.571(d).

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    4. Section 252.247-7025 is added to read as follows:


252.247-7025  Reflagging or Repair Work.

    As prescribed in 247.573(d), use the following clause:

Reflagging or Repair Work (Feb 1994)

    Any work performed on a vessel used in the performance of this 
contract that enables the vessel to meet applicable standards to 
become a vessel of the United States or to convert the vessel to a 
more useful military configuration shall be performed in the United 
States or its territories.

(End of clause)

[FR Doc. 94-4881 Filed 3-4-94; 8:45 am]
BILLING CODE 3810-01-M