[Federal Register Volume 61, Number 222 (Friday, November 15, 1996)]
[Rules and Regulations]
[Pages 58488-58489]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-29331]


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DEPARTMENT OF DEFENSE

48 CFR Parts 212, 225, and 252

[DFARS Case 96-D023]


Defense Federal Acquisition Regulation Supplement; Foreign 
Machine Tools and Powered and Non-Powered Valves

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: The Director of Defense Procurement has issued a final rule 
amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to reflect the expiration of certain statutory restrictions on the 
acquisition of machine tools and powered and non-powered valves.

EFFECTIVE DATE: November 15, 1996.

FOR FURTHER INFORMATION CONTACT: Defense Acquisition Regulations 
Council, Attn: Ms. Amy Williams, PDUSD (A&T) DP (DAR), IMD 3D139, 3062 
Defense Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0131; 
telefax (703) 602-0350. Please cite DFARS Case 96-D023 in all 
correspondence related to this issue.

SUPPLEMENTARY INFORMATION:

A. Background

    10 U.S.C. 2534(a)(4) restricts the acquisition of non-domestic (1) 
powered and non-powered valves in Federal Supply Classes 4810 and 4820 
used in piping for naval surface ships and submarines, and (2) machine 
tools in certain Federal Supply Classes for metal-working machinery. 
This restriction ceased to be effective on October 1, 1996. Therefore, 
the implementing DFARS guidance at 225.7004 and the related clauses at 
252.225-7017 and 252.225-7040 have been removed. In addition, the 
following associated conforming and editorial changes have been made:
     Obsolete statutory references at 212.504(a) (xix) through 
(xxi) have been removed.
     A new section has been established at 225.7005 to specify 
the waiver criteria (previously included in 225.7004-4) for items still 
restricted under 10 U.S.C. 2534.
     A reference to the clause at 252.225-7017 has been removed 
from the clause at 252.212-7001.

B. Regulatory Flexibility Act

    This final rule does not constitute a significant revision within 
the meaning of FAR 1.501 and Public Law 98-577 and publication for 
public comment is not required. However, comments from small entities 
concerning the affected DFARS subparts will be considered in accordance 
with 5 U.S.C. 610. Such comments should cite DFARS Case 96-D023 in 
correspondence.

C. Paperwork Reduction Act

    This final rule eliminates the information collection requirements 
at 252.225-7040, which previously were approved by the Office of 
Management and Budget (OMB) under 44 U.S.C. 3501, et seq. (OMB 
Clearance Number 0704-0229).

List of Subjects in 48 CFR Parts 212, 225, and 252

    Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
    Therefore, 48 CFR Parts 212, 225, and 252 are amended as follows:
    1. The authority citation for 48 CFR Parts 212, 225, and 252 
continues to read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 212--ACQUISITION OF COMMERCIAL ITEMS


212.504  [Amended]

    2. Section 212.504 is amended by removing and reserving paragraphs 
(a)(xix) through (xxi).

[[Page 58489]]

PART 225--FOREIGN ACQUISITION


225.7004  [Removed and Reserved]

    3. Section 225.7004 is removed and reserved.


225.7004-1 through 225.7004-6  [Removed]

    4. Sections 225.7004-1 through 225.7004-6 are removed.
    5. Section 225.7005 is revised to read as follows:


225.7005  Waiver of certain restrictions.

    Where provided for elsewhere in this subpart, the restrictions on 
certain foreign purchases under 10 U.S.C. 2534 may be waived as 
follows:
    (a) The head of the contracting activity may waive the restriction 
on a case-by-case basis upon execution of a determination and findings 
that any of the following applies:
    (1) The restriction would cause unreasonable delays.
    (2) 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.
    (3) 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.
    (4) Satisfactory quality items manufactured in the United States or 
Canada are not available.
    (5) Application of the restriction would result in the existence of 
only one source for the item in the United States or Canada.
    (6) Application of the restriction is not in the national security 
interests of the United States.
    (7) Application of the restriction would adversely affect a U.S. 
company.
    (b) The restriction is waived when it would cause unreasonable 
costs. The cost of the item of U.S. or Canadian origin is unreasonable 
if it exceeds 150 percent of the offered price, inclusive of duty, of 
items which are not of U.S. or Canadian origin.
    6. Section 225.7007-4 is revised to read as follows:


225.7007-4  Waiver.

    The waiver criteria at 225.7005 apply to this restriction.
    7. Section 225.7010-3 is revised to read as follows:


225.7010-3  Waiver.

    The waiver criteria at 225.7005 apply to this restriction.
    8. Section 225.7016-3 is revised to read as follows:


225.7016-3  Waiver.

    The waiver criteria at 225.7005 apply to this restriction.
    9. Section 225.7022-3 is revised to read as follows:


225.7022-3  Waiver.

    The waiver criteria at 225.7005 apply only to the restriction of 
225.7022-1(b).

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.212-7001  [Amended]

    10. Section 252.212-7001 is amended by revising the clause date to 
read ``(NOV 1996)'' and by removing the entry ``________ 252.225-7017 
Preference for United States and Canadian Valves and Machine Tools (10 
U.S.C. 2534(c)(2)).''.


252.225-7017  [Removed and Reserved]

    11. Section 252.225-7017 is removed and reserved.


252.225-7040  [Removed]

    12. Section 252.225-7040 is removed.

[FR Doc. 96-29331 Filed 11-14-96; 8:45 am]
BILLING CODE 5000-04-M