[Federal Register Volume 61, Number 163 (Wednesday, August 21, 1996)]
[Proposed Rules]
[Pages 43214-43215]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21341]


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DEPARTMENT OF DEFENSE

48 CFR Parts 225 and 252

[DFARS Case 96-D010]


Defense Federal Acquisition Regulation Supplement; Carbon Fiber

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comment.

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SUMMARY: The Director of Defense Procurement is proposing to amend the 
Defense Federal Acquisition Regulation Supplement (DFARS) to rescind 
the restriction on coal and petroleum pitch carbon fiber and move 
coverage of the restriction on polyacrylonitrile (PAN) carbon fiber to 
DFARS Subpart 225.71, since the restrictions are no longer statutory.

DATES: Comment date: Comments on the proposed rule should be submitted 
in writing to the address shown below on or before October 21, 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, DC 
20301-3062. Telefax number (703) 602-0350. Please cite DFARS Case 96-
D010 in all correspondence related to this issue.

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

SUPPLEMENTARY INFORMATION:

A. Background

    Section 8048 of the Fiscal Year 1991 Defense Appropriations Act 
(Pub. L. 101-511) required DoD to acquire at least 50 percent of the 
DoD annual requirements for PAN carbon fiber from domestic sources by 
fiscal year 1992. Section 9040A of the Fiscal Year 1993 Defense 
Appropriations Act (Pub. L. 102-396) required DoD to acquire 75% of the 
DoD annual requirements for coal and petroleum pitch carbon fiber from 
domestic sources by fiscal year 1994. As a result of these statutory 
provisions, DFARS currently requires use of domestic coal and petroleum 
pitch carbon fiber and PAN carbon fiber in all acquisitions for major 
systems that are not yet in production. DoD has decided that the 
restriction on coal and petroleum pitch carbon fiber is no longer 
needed. However, as a matter of policy, DoD has decided to retain the 
restriction on PAN carbon fiber for at least several more years, in 
order to sustain the domestic suppliers and ensure that DoD will have 
continued access to the industrial and technological capabilities 
needed to meet its PAN carbon fiber requirements.

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. Although this 
rule will open up to potential foreign competition the requirements for 
coal and petroleum pitch carbon fiber on major systems not yet in 
production, the only known domestic manufacturer of coal and petroleum 
pitch carbon fiber is a large business. Comments are invited from small 
businesses and other interested parties. Comments from small entities 
concerning the affected DFARS subparts also will be considered in 
accordance with Section 610 of the Act. Such comments must be submitted 
separately and cite DFARS Case 96-D010 in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply. This interim rule does 
not impose any new information collection requirements which require 
the approval of OMB under 44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 225 and 252

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulation Council.

    Therefore, 48 CFR Parts 225 and 252 are proposed to be amended as 
follows:
    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.

PART 225--FOREIGN ACQUISITION


225.7013   [Removed and reserved]

    2. Section 225.7013 is removed and reserved.


225.7013-1 and 225.7013-2  [Removed]

    3. Sections 225.7013-1 and 225.7013-2 are removed.


225.7020  [Removed and reserved]

    4. Section 225.7020 is removed and reserved.


225.7020-1 and 225.7020-2  [Removed]

    5. Sections 225.7020-1 and 225.7020-2 are removed.
    6. Sections 225.7106 through 225.7106-3 are added to read as 
follows:


225.7106  Polyacrylonitrile (PAN) carbon fiber.


225.7106-1  Policy.

    All new major systems must use U.S. or Canadian manufacturers or 
producers for all PAN carbon fiber requirements.


225.7106-2  Waivers.

    Contracting officers may, with the approval of the head of the 
contracting activity, waive, in whole or in part, the requirement of 
the clause at 252.225-7022. For example, a waiver is justified if a 
qualified U.S. or Canadian source cannot meet scheduling requirements.


225.7106-3  Contract clause.

    Use the clause at 252.225-7022, Restriction on Acquisition of 
Polyacrylonitrile (PAN) Carbon Fiber, in all acquisitions for major 
systems (as

[[Page 43215]]

defined in FAR part 34) that are not yet in production (milestone III 
as defined in DoDI 5000.2-R, Mandatory Procedures for Major Defense 
Acquisition Programs (MDAPS) and Major Automated Information System 
(MAIS) Acquisition Programs).

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    7. Section 252.225-7022 is amended by revising the section title, 
introductory text, clause title and date, and paragraphs (a) and (c) to 
read as follows:


252.225-7022  Restriction on acquisition of polyacrylonitrile (PAN) 
carbon fiber.

    As prescribed in 225.7106-3, use the following clause:

Restriction on Acquisition of Polyacrylonitrile (PAN) Carbon Fiber 
(Date)

    (a) This clause applies only if the end product furnished under 
this contract contains polyacrylonitrile carbon fibers 
(alternatively referred to as PAN-based carbon fibers or PAN-based 
graphite fibers).
* * * * *
    (c) The Contracting Officer may waive the requirement in 
paragraph (b) in whole or in part. The Contractor may request a 
waiver from the Contracting Officer by identifying the circumstances 
and including a plan to qualify U.S. or Canadian sources 
expeditiously.

(End of clause)


252.225-7034  [Removed and Reserved]

    6. Section 252.225-7034 is removed and reserved.

[FR Doc. 96-21341 Filed 8-20-96; 8:45 am]
BILLING CODE 5000-04-M