[Federal Register Volume 60, Number 56 (Thursday, March 23, 1995)]
[Proposed Rules]
[Pages 15276-15277]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7014]
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DEPARTMENT OF DEFENSE
48 CFR Parts 245 and 252
Defense Federal Acquisition Regulation Supplement;
Demilitarization
AGENCY: Department of Defense (DoD).
ACTION: Supplementary notice of proposed rulemaking with request for
public comments.
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SUMMARY: The Defense Acquisition Regulations Council is proposing
changes to the Defense FAR Supplement (DFARS) to cover control of
Munitions List items (MLI) and Strategic List items (SLI) and
demilitarization of excess property.
DATES: Comments on the proposed rule should be submitted to the address
shown below on or before May 22, 1995 to be considered in the
formulation of a final rule.
ADDRESSES: Interested parties should submit written comments to:
Defense Acquisition Regulations Directorate, ATTN: IMD 3D139, PDUSD
(A&T), 3062 Defense Pentagon, Washington, D.C. 20301-3062. FAX (703)
602-0350. Please cite DFARS Case 92-D024 in all correspondence related
to this case.
FOR FURTHER INFORMATION CONTACT: LTC Ed King; (703) 602-0131.
SUPPLEMENTARY INFORMATION:
A. Background
A proposed rule was published in the Federal Register on March 16,
1994 (59 FR 12223). The rule proposed amendments to the DFARS by adding
a subsection at 245.604-70 and a clause at 252.245-7XXX, and by
revising 245.601, 245.604, 245,610-4, and 245.7310-1 to improve control
of Munitions List items (MLI) and Strategic List items (SLI) and
demilitarization of excess contractor inventory. Twenty comments from
four respondents were received during the public comment period. After
evaluating the public comments, the DAR Council agreed to publish
another proposed rule incorporating the following changes:
--The term ``Security Trade Controls'' is changed to read ``Trade
Security Controls.''
--DFARS 245.604-70(a) and 252.245-7XXX(b) are rewritten for clarity.
--Subparagraph (b)(4) to DFARS 252.245-7XXX is added to cover those
situations where contractor acquired property is transferred to another
Government contract and is treated as Government-Furnished Property.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act applies, but the proposed 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 the vast majority of
property to be demilitarized, including MLI and SLI, is in the custody
of large contractors. An initial Regulatory Flexibility Analysis (IRFA)
has therefore not been performed. 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 should cite DAR Case 92-D024 in all correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act applies because the proposed rule
imposes additional reporting requirements which require the approval of
OMB under 44 U.S.C. 3501, et seq. On May 10, 1994, OMB approved OMB
Clearance 0704-0363 for 17,500 hours. That clearance covered the
reporting requirements associated with the proposed rule published on
March 16, 1994 (59 FR 12223). This supplemental proposed rule imposes
an additional reporting requirement at 252.245-7XXX(b)(4). As a result,
a request for revision to the previously approved clearance has been
submitted to OMB reflecting an increase of 2500 hours.
List of Subjects in 48 CFR Parts 245 and 252
Government procurement.
Claudia L. Naugle,
Executive Editor, Defense Acquisition Regulations Directorate.
Therefore it is proposed that 48 CFR Parts 245 and 252 be amended
as follows:
1. The authority citation for 48 CFR Parts 245 and 252 continues to
read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
2. Section 245.601 is amended by revising paragraph (2) to read as
follows:
Sec. 245.601 Definitions
* * * * *
(2) Demilitarization is defined in the clause at 252.245-7XXX,
Demilitarization and Trade Security Controls.
* * * * *
Sec. 245.604 [Amended]
3. Section 245.604 is amended by removing paragraph (3) and
redesignating paragraphs (4) and (5) as paragraphs (3) and (4).
4. Section 245.604-70 is added to read as follows:
Sec. 245.604-70 Demilitarization and security trade controls.
(a) Contracting officers shall ensure that solicitations and
contracts include a demilitarization code for each item of Government-
furnished property in accordance with DoD 4160.21-M-1, Defense
Demilitarization Manual.
(b) Contract clause.
Use the clause at 252.245-7XXX, Demilitarization and Trade Security
Controls, in solicitations and contracts whenever Government property
is either furnished to contractors, or whenever the contractor is
authorized to acquire/manufacture items for the Government's
[[Page 15277]] account for use in performance of the contract.
5. Section 245.7310-1 is amended by revising paragraph (a) to read
as follows:
Sec. 245.7310-1 Demilitarization.
* * * * *
(a) Demilitarization.
Item(s) ________ require demilitarization by the Purchaser in
the manner and to the degree set forth in the Defense
Demilitarization Manual, DoD 4160.21-M-1.
* * * * *
6. Section 252.245-7XXX is added to read as follows:
Sec. 252.245-7XXX Demilitarization and Trade Security Controls.
As prescribed in 245.604-70(b), use the following clause:
Demilitarization and Trade Security Controls (XXX 1995)
(a) Definitions.
Demilitarization means the act of destroying the military
offensive or defensive advantage inherent in certain types of
equipment or material. The term includes mutilation, dumping at sea,
cutting, crushing, scrapping, melting, burning or alteration
designed to prevent the further use of this equipment and material
for its originally intended military or lethal purpose and applies
equally to material in unserviceable or serviceable condition, that
has been screened through the Inventory Control Point (ICP) and
declared surplus or foreign excess.
Munititions List item means any item contained in the U.S.
Munitions list (22 CFR Part 121).
Trade Security Controls means control procedures designed to
preclude the sale or shipment of Munitions List of Strategic List
property to any entity whose interests are inimical to those of the
United States. These controls are also applicable to such other
selected property as may be designated by the Deputy Under Secretary
of Defense (Trade Security Policy).
Strategic List item means an item assigned a code letter ``A''
or ``B'' following the export control classification number (ECCN)
on the Commerce Control List, Supplement No. 1 to Section 799.1 of
the Export Administration Regulations Department of Commerce.
(b) When Government property becomes excess to the needs of the
Contractor in performing this contract, the Contractor shall--
(1) Ensure the appropriate demilitarization code is included in
the item description on inventory schedules generated to report the
excess Government property, utilizing the guidelines provided in the
Defense Demilitarization Manual, DoD 4160.21-M-1;
(2) Ensure demilitarization of the items, if required; and
(3) Apply trade security controls as required by the Arms Export
Control Act and 22 CFR Parts 120-130, the International Traffic in
Arms Regulations; the Export Administration Act of 1979 and 15 CFR
parts 700-799, the Export Administration Regulations; and DoD
4160.21-M-1, Defense Demilitarization Manual.
(4) Ensure a demilitarization code is included in the item
description on all transfer documents when Contractor-acquired
property is transferred to a follow on contract, utilizing the
guidelines provided in the Defense Demilitarization Manual, DoD
4160.21-M-1.
(c) The Contractor also shall include this clause, including
this paragraph (c) in any subcontract issued under this contract.
(End of clause)
[FR Doc. 95-7014 Filed 3-22-95; 8:45 am]
BILLING CODE 3810-01-M