[Federal Register Volume 61, Number 36 (Thursday, February 22, 1996)]
[Proposed Rules]
[Page 6910]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3916]




[[Page 6909]]

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Part III

Department of Defense

General Services Administration

National Aeronautics and Space Administration

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48 CFR Parts 25 and 52



Restrictions on Certain Foreign Purchases; Proposed Rule

  Federal Register / Vol. 61, No. 36 / Thursday, February 22, 1996 / 
Proposed Rules  
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[[Page 6910]]


DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 25 and 52

[FAR Case 95-303]
RIN 9000-AG82


Federal Acquisition Regulation; Restrictions on Certain Foreign 
Purchases

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule with request for comments.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council are proposing to amend the Federal 
Acquisition Regulation (FAR) to implement E.O. 12959, Prohibiting 
Certain Transactions with Respect to Iran, and to conform the FAR to 
other current restrictions of the Department of the Treasury. This 
regulatory action was not subject to the Office of Management and 
Budget review under E.O. 12866, dated September 30, 1993.

DATES: Comments on the proposed rule should be submitted in writing to 
the FAR Secretariat at the address shown below on or before April 22, 
1996 to be considered in the formulation of a final rule.

ADDRESSES: Interested parties should submit written comments to: 
General Services Administration, FAR Secretariat (MVRS), 18th & F 
Streets, NW, Room 4037, Washington, DC 20405. Please cite FAR case 95-
303 in all correspondence related to this case.

FOR FURTHER INFORMATION CONTACT: Mr. Peter O'Such at (202) 501-1759 in 
reference to this FAR case. For general information, contact the FAR 
Secretariat, Room 4037, GS Building, Washington, DC 20405, (202) 501-
4755. Please cite FAR case 95-303.

SUPPLEMENTARY INFORMATION: 

A. Background

    This proposed rule amends the FAR to implement E.O. 12959, 
Prohibiting Certain Transactions with Respect to Iran, which became 
effective May 6, 1995, and to conform the FAR to current restrictions 
in 31 CFR Chapter V (Office of Foreign Assets Control, Department of 
the Treasury).

B. Regulatory Flexibility Act

    This 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 rule 
does not impose any new requirements on contractors, large or small. 
The proposed rule merely notifies contractors of changes in the 
existing prohibitions against transactions with certain countries. This 
change should have minimal impact on U.S. firms. An Initial Regulatory 
Flexibility Analysis has, therefore, not been performed. Comments from 
small entities concerning the affected FAR subparts will be considered 
in accordance with 5 U.S.C. 610 of the Act. Such comments must be 
submitted separately and should cite 5 U.S.C. 601, et seq. (FAR case 
95-303), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the FAR do not impose recordkeeping or information 
collection requirements, or collections of information from offerors, 
contractors, or members of the public 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 25 and 52

    Government procurement.

    Dated: February 15, 1996.
Ralph J. Destefano,
Acting Director, Office of Federal Acquisition Policy Division.
    Therefore, it is proposed that 48 CFR Parts 25 and 52 be amended as 
set forth below:
    1. The authority citation for 48 CFR Parts 25 and 52 continues to 
read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 25--FOREIGN ACQUISITION

    2. Subpart 25.7 is revised to read as follows:

Subpart 25.7--Restrictions on Certain Foreign Purchases

Sec.
25.701  Restrictions.
25.702  Contract clause.

Subpart 25.7--Restrictions on Certain Foreign Purchases


25.701  Restrictions.

    (a) The Government does not acquire supplies or services from 
foreign governments or their organizations when these supplies or 
services cannot be imported lawfully into the United States. Therefore, 
agencies and their contractors and subcontractors shall not acquire any 
supplies or services originating from sources within, or that were 
located in or transported from or through:
    (1) Cuba (31 CFR part 515);
    (2) Iran (31 CFR part 560);
    (3) Iraq (31 CFR part 575);
    (4) Libya (31 CFR part 550); or
    (5) North Korea (31 CFR part 500).
    (b) Agencies and their contractors and subcontractors shall not 
acquire any supplies or services from entities controlled by the 
Government of Iraq (E.O. 12722 and 12724).
    (c) Questions concerning these restrictions should be referred to 
the Department of the Treasury, Office of Foreign Assets Control, 
Washington, DC 20220, (202) 622-2520.


25.702  Contract clause.

    The contracting officer shall insert the clause at 52.225-11, 
Restrictions on Certain Foreign Purchases, in solicitations and 
contracts.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Section 52.225-11 is revised to read as follows:


52.225-11  Restrictions on Certain Foreign Purchases.

    As prescribed in 25.702, insert the following clause:

Restrictions on Certain Foreign Purchases (XXX 1996)

    (a) Unless advance written approval of the Contracting Officer is 
obtained, the Contractor shall not acquire, for use in the performance 
of this contract, any supplies or services originating from sources 
within, or that were located in or transported from or through 
countries whose products are banned from importation into the United 
States under regulations of the Office of Foreign Assets Control, 
Department of the Treasury. Those countries include Cuba, Iran, Iraq, 
Libya, and North Korea.
    (b) The Contractor shall not acquire for use in the performance of 
this contract any supplies or services from entities controlled by the 
Government of Iraq.
    (c) The Contractor agrees to insert the provisions of this clause, 
including this paragraph (c), in all subcontracts hereunder.
    (End of clause)
[FR Doc. 96-3916 Filed 2-21-96; 8:45 am]
[BILLING CODE 6820-EP-P]