[Federal Register Volume 61, Number 53 (Monday, March 18, 1996)]
[Rules and Regulations]
[Pages 10899-10901]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6422]



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DEPARTMENT OF DEFENSE

48 CFR Parts 225 and 252


Defense Federal Acquisition Regulation Supplement; Ball and 
Roller Bearings

AGENCY: Department of Defense (DoD).

ACTION: Interim rule with request for comment.

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SUMMARY: The Director of Defense Procurement has issued an interim rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to implement changes to statutory restrictions on the acquisition of 
nondomestic ball and roller bearings.

DATES: Effective date: March 18, 1996.
    Comment date: Comments on the interim rule should be submitted in 
writing to the address shown below on or before May 17, 1996, 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, D.C. 20301-
3062. Telefax number (703) 602-0350. Please cite DFARS Case 95-D308 in 
all correspondence related to this issue.

FOR FURTHER INFORMATION CONTACT:
Ms. Amy Williams, (703) 602-0131.

SUPPLEMENTARY INFORMATION:

A. Background

    This interim DFARS rule implements Section 8099 of the Fiscal Year 
1996 Defense Appropriations Act (Pub. L. 104-61) and Section 806, 
paragraphs (b) and (d), of the Fiscal Year 1996 Defense Authorization 
Act (Pub. L. 104-106), adding a definition of ``bearing components'' at 
DFARS 225.7001, amending the restrictions on acquisition of nondomestic 
ball or roller bearings at 225.7019, and amending the clause at 
252.225-7016, Restriction on Acquisition of Ball and Roller Bearings. 
The term ``ball and roller bearings'' has been substituted for the term 
``antifriction bearings'' in order to be consistent with the statutory 
terminology.

B. Regulatory Flexibility Act

    This interim rule may have a significant positive impact on a 
substantial number of small entities within the meaning of the 
Regulatory Flexibility Act, 5 U.S.C. 601 et seq., because this rule 
extends the current restriction on the acquisition of nondomestic ball 
and roller bearings through the year 2000, with some tightening of the 
regulations relating to exceptions and waiver authority. For 
acquisitions at or below the simplified acquisition threshold which are 
subject only to the restriction of 10 U.S.C. 2534, there is no 
exception to the restriction if ball or roller bearings or bearing 
components are the end item being purchased. If Fiscal Year 1996 funds 
are used, the only exception to the restriction is for the acquisition 
of commercial items incorporating ball or roller bearings. Also, if 
Fiscal Year 1996 funds are used, the restriction may be waived only if 
the Secretary of the department responsible for the acquisition 
certifies to the House and Senate Committees on Appropriations that (1) 
adequate domestic supplies are not available to meet DoD requirements 
on a timely basis, and (2) the acquisition must be made in order to 
acquire capability for national security purposes. An Initial 
Regulatory Flexibility Analysis (IRFA) has been prepared. A copy of the 
IRFA has been submitted to the Chief Counsel for Advocacy of the Small 
Business Administration. A copy of the IRFA may be obtained from the 
address stated herein. 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 cite 
DFARS Case 95-D308 in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act applies. The burden associated with 
paragraph (d) and (e) of the clause at DFARS 252.225-7016 has been 
approved at 301,600 hours under OMB clearance 0704-0229. This interim 
rule does not significantly alter existing requirements or impose any 
new information collection requirements which require the approval of 
OMB 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 compelling reasons exist to publish this interim rule 
prior to affording the public an opportunity to comment. This action is 
necessary to implement Section 8099 of the Fiscal Year 1996 Defense 
Appropriations Act (Pub. L. 104-61) and Section 806, paragraphs (b) and 
(d), of the Fiscal Year 1996 Defense Authorization Act (Pub. L. 104-
106). Sections 8099 and 806 were effective upon enactment (December 1, 
1995, and February 10, 1996, respectively). 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:

PART 225--FOREIGN ACQUISITION

    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.

    2. Section 225.7001 is revised to read as follows:


225.7001  Definitions.

    As used in this subpart--
    (a) Bearing components is defined in the clause at 252.225-7016, 
Restriction on Acquisition of Ball and Roller Bearings.
    (b) Hand or measuring tools means those tools listed in Federal 
supply classifications 51 and 52, respectively.

[[Page 10900]]

    (c) Possessions, as used in the phrase ``United States or its 
possessions,'' includes Puerto Rico.
    (d) Specialty metals is defined in the clause at 252.225-7014, 
Preference for Domestic Specialty Metals.
    3. Sections 225.7019, 225.7019-1, 225.7019-2, 225.7019-3, and 
225.7019-4 are revised to read as follows:


225.7019  Restrictions on ball and roller bearings.


225.7019-1  Restrictions.

    (a) In accordance with 10 U.S.C. 2534, through fiscal year 2000, do 
not acquire ball and roller bearings or bearing components which are 
not manufactured in the United States or Canada.
    (b) In accordance with Section 8099 of Public Law 104-61, do not 
use fiscal year 1996 funds to acquire ball and roller bearings other 
than those produced by a domestic source and of domestic origin, i.e., 
bearings and bearing components manufactured in the United States or 
Canada.


225.7019-2  Exceptions.

    (a) The restriction in 225.7019-1(a) does not apply to--
    (1) Acquisitions at or below the simplified acquisition threshold, 
unless ball or roller bearings or bearing components are the end items 
being purchased;
    (2) Purchases of commercial items incorporating ball or roller 
bearings;
    (3) Miniature and instrument ball bearings restricted under subpart 
225.71;
    (4) Items acquired overseas for use overseas; or
    (5) Ball and roller bearings or bearing components or items 
containing bearings for use in a cooperative or co-production project 
under an international agreement.
    (b) The restrictions in 225.7019-1(b) does not apply to the 
acquisition of commercial items incorporating ball or roller bearings 
(see 212.503(a)(xi) and 212.504(a)(xxvi)).


225.7019-3  Waiver.

    (a) The head of the contracting activity may waive the restriction 
in 225.7019-1(a)--
    (1) Upon execution of a determination and findings that--
    (i) No domestic (U.S. or Canadian) bearing manufacturer meets the 
requirement;
    (ii) It is not in the best interests of the United States to 
qualify a domestic bearing to replace a qualified nondomestic bearing. 
This determination must be based on a finding that the qualification of 
a domestically manufactured bearing would cause unreasonable costs or 
delay. A finding that a cost is unreasonable should take into 
consideration DoD policy to assist the domestic industrial mobilization 
base. Contracts should be awarded to domestic bearing manufacturers to 
increase their capability to reinvest and become more competitive;
    (iii) United States producers of the item would not be jeopardized 
by competition from a foreign country, and 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;
    (iv) Application of the restriction would impede cooperative 
programs entered into between DoD and a foreign country, and 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;
    (v) Application of the restriction would result in the existence of 
only one source for the item in the United States or Canada;
    (vi) Application of the restriction is not in the national security 
interests of the United States; or
    (vii) Application of the restriction would adversely affect a U.S. 
company.
    (2) For multiyear contracts or contracts exceeding 12 months, only 
if--
    (i) The head of the contracting activity execute a determination 
and findings in accordance with paragraph (a) of this subsection;
    (ii) The contractor submits a written plan for transitioning from 
the use of nondomestic to domestically manufactured bearings;
    (iii) The plan--
    (A) States whether a domestically manufactured bearings can be 
qualified, at a reasonable cost, for use during the course of the 
contract period;
    (B) Identifies any bearings that are not domestically manufactured, 
their application, and source of supply; and
    (C) Describes, including cost and timetable, the transition to a 
domestically manufactured bearing. (The timetable for the transition 
should normally take no longer than 24 months from the date the waiver 
is granted); and
    (iv) The contracting officer accepts the plan and incorporates it 
in the contract.
    (b) The Secretary of the department responsible for the acquisition 
may waive the restriction in 225.7019-1(b) on a case-by-case basis, by 
certifying to the House and Senate Committees on Appropriations that--
    (1) Adequate domestic supplies are not available to meet DoD 
requirements on a timely basis; and
    (2) The acquisition must be made in order to acquire capability for 
national security purposes.


225.7019-4  Contract clause.

    Use the clause at 252.225-7016, Restriction on Acquisition of Ball 
and Roller Bearings, in all solicitations and contracts, unless--
    (a) The restrictions in 225.7019-1 do not apply or a waiver has 
been granted; or
    (b) The contracting officer knows that the items being acquired do 
not contain ball or roller bearings.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    4. Section 252.225-7016 is revised to read as follows:


252.225-7016  Restriction on Acquisition of Ball and Roller Bearings.

    As prescribed in 225.7019-4, use the following clause:

Restriction on Acquisition of Ball and Roller Bearings (Mar 1996)

    (a) Definition.
    Bearing components, as used in this clause, means the bearing 
element, retainer, inner race, or outer race.
    (b) The Contractor agrees that all ball and roller bearings and 
ball and roller bearing components delivered under this contract, 
either as end items or components of end items, shall be wholly 
manufactured in the United States or Canada. Unless otherwise 
specified, raw materials, such as preformed bar, tube, or rod stock 
and lubricants, need not be mined or produced in the United States 
or Canada.
    (c) The restriction in paragraph (b) does not apply to the 
extent that the end items or components containing ball or roller 
bearings are commercial items. The commercial item exception does 
not include items designed or developed under a Government contract 
or contracts where the end item is bearings and bearing components.
    (d) The restriction in paragraph (b) may be waived upon request 
from the Contractor in accordance with subsection 225.7019-3 of the 
Defense Federal Acquisition Regulation Supplement.
    (e) The contractor agrees to retain records showing compliance 
with this restriction until three years after final payment and to 
make records available upon request of the Contracting Officer.
    (f) The Contractor agrees to insert this clause, including this 
paragraph (f), in every subcontract and purchase order issued in 
performance of this contract, unless items acquired are--
    (1) Commercial items other than ball or roller bearings; or
    (2) Items that do not contain ball or roller bearings.


[[Page 10901]]

(End of clause)

[FR Doc. 96-6422 Filed 3-15-96; 8:45 am]
BILLING CODE 5000-04-M