[Federal Register Volume 61, Number 154 (Thursday, August 8, 1996)]
[Rules and Regulations]
[Pages 41475-41476]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20188]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 25 and 52

[FAC 90-41; FAR Case 95-303; Item IV]
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: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council have agreed on a final rule to amend 
the Federal Acquisition Regulation (FAR) Parts 25 and 52 to implement 
Executive Order 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 
Office of Management and Budget review under Executive Order 12866, 
dated September 30, 1993, and is not a major rule under 5 U.S.C. 804.

EFFECTIVE DATE: October 7, 1996.

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 FAC 90-41, FAR case 95-303.

SUPPLEMENTARY INFORMATION:

A. Background-

    This final rule amends FAR Parts 25 and 52 to implement Executive 
Order

[[Page 41476]]

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). Subpart 25.7 and the clause at 52.225-11 
are revised to add Iran and Libya to the list of prohibited sources, 
and to delete restrictions on procurement from Vietnam, Cambodia, and 
South Africa. A proposed rule was published in the Federal Register on 
February 22, 1996, at 61 FR 6910. No public comments were received. No 
changes were made to the proposed rule.

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not 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 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. There were no public comments in response 
to the Regulatory Flexibility Act Statement published with the proposed 
rule.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the 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: August 2, 1996.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.

    Therefore, 48 CFR Parts 25 and 52 are 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.


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 (Executive Orders 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 over $2,500.

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

October 7, 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. 96-20188 Filed 8-7-96; 8:45 am]
BILLING CODE 6820-EP-P