[Federal Register Volume 62, Number 12 (Friday, January 17, 1997)]
[Rules and Regulations]
[Pages 2856-2857]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-1041]
[[Page 2855]]
_______________________________________________________________________
Part IV
Department of Defense
_______________________________________________________________________
48 CFR Parts 225, 236, and 252
Defense Federal Acquisition Regulation Supplement; Preference for U.S.
Firms on MILCON Overseas Construction and Restriction on MILCON
Overseas Architect-Engineer Contracts; Interim Rules
Federal Register / Vol. 62, No. 12 / Friday, January 17, 1997 / Rules
and Regulations
[[Page 2856]]
DEPARTMENT OF DEFENSE
48 CFR Parts 225, 236, and 252
[DFARS Case 96-D328]
Defense Federal Acquisition Regulation Supplement; Preference for
U.S. Firms on MILCON Overseas Construction
AGENCY: Department of Defense (D0D).
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: The Director of Defense Procurement has issued an interim rule
amending the Defense Federal Acquisition Regulation Supplement (DFARS)
to implement Section 112 of the Fiscal Year 1997 Military Construction
Appropriations Act (Public Law 104-196). Section 112 provides a 20
percent preference for United States firms on all contracts estimated
to exceed $1,000,000 for military construction projects in the United
States territories and possessions in the Pacific and on Kwajalein
Atoll, or in countries bordering the Arabian Gulf.
DATES: Effective date: January 17, 1997.
Comment Date: Comments on the interim rule should be submitted in
writing to the address shown below on or before March 18, 1997, to be
considered 9n 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-D328 in
all correspondence related to this issue.
FOR FURTHER INFORMATION CONTACT:
Ms. Amy Williams, (703) 602-0131.
SUPPLEMENTARY INFORMATION:
A. Background
This interim rule amends the DFARS to implement Section 112 of the
Fiscal Year 1997 Military Construction Appropriations Act (Public Law
104-196). The rule contains, at 236.274(a), the statutory restriction
on award of overseas military construction contracts; and adds a
solicitation provision at 252.236-7010, Overseas Military Construction-
Preference for United States Firms.
B. Regulatory Flexibility Act
This interim 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
only applies to contracts estimated to exceed $1,000,000 for military
construction projects in the United States territories and possessions
in the Pacific and on Kwajalein Atoll, or in countries bordering the
Arabian Gulf. It is estimated that only 12 such contracts are awarded
per year. An Initial Regulatory Flexibility Analysis has, therefore,
not been performed. 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 5
U.S.C. 610. Such comments should be submitted separately and should
cite DFARS Case 96-D328 in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act applies. It is estimated that the new
provision at DFARS 252.236-7010 will increase, by 5 hours, the annual
paperwork burden associated with DFARS Part 236 and related provisions/
clauses. The Office of Management and Budget (OMB) has approved this
increase under OMB Control Number 0704-0255.
D. Determination to Issue an Interim Rule
A determination has been made under the authority of the Secretary
of Defense that urgent and compelling reasons exist to publish this
interim rule prior to affording the public an opportunity to comment.
This interim rule implements Section 112 of the Fiscal Year 1997
Military Construction Appropriations Act (Public Law 104-196). Section
112 provides a 20 percent preference for United States firms on all
contracts estimated to exceed $1,000,000 for military construction
projects in the United States territories and possessions in the
Pacific and on Kwajalein Atoll, or in countries bordering the Arabian
Gulf. Immediate publication of an interim rule is necessary to promptly
comply with Section 112. 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, 236, and 252
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, 48 CFR Parts 225, 236, and 252 are amended as follows:
1. The authority citation for 48 CFR Parts 225, 236, and 252
continues to read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 225--FOREIGN ACQUISITION
2. Section 225.7000 is amended by revising paragraph (a) to read as
follows:
225.7000 Scope of subpart.
(a) This subpart contains restrictions on the acquisition of
foreign products and services, imposed by Defense appropriations and
authorization acts and other statutes. Refer to the acts to verify
current applicability of the restrictions.
* * * * *
3. Section 225.7003 is added to read as follows:
225.7003 Restriction on overseas military construction.
For restriction on award of military construction contracts to be
performed in the United States territories and possessions in the
Pacific and on Kwajalein Atoll, or in countries bordering the Arabian
Gulf, see 236.274(a).
PART 236--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS
4. Section 236.274 is amended by redesignating the introductory
text as paragraph (b); by redesignating paragraphs (a) and (b) as
paragraphs (b)(1) and (b)(2), respectively; by redesignating paragraphs
(b)(1) through (b)(8) as paragraphs (b)(2)(i) through (b)(2)(viii); and
by adding a new paragraph (a) to read as follows:
236.274 Construction in foreign countries.
(a) In accordance with Section 112 of Public Law 104-32 and similar
sections in subsequent military construction appropriations acts,
military construction contracts that are estimated to exceed $1,000,000
and are to be performed in the United States territories and
possessions in the Pacific and on Kwajalein Atoll, or in countries
bordering the Arabian Gulf, shall be awarded only to United States
firms, unless the lowest responsive and responsible offer of a United
States firm exceeds the lowest responsive and responsible offer of a
foreign firm by more than 20 percent.
* * * * *
5. Section 236.570 is amended by adding paragraph (c) to read as
follows:
236.570 Additional provisions and clauses.
* * * * *
(c) Use the provision at 252.236-7010, Overseas Military
Construction-Preference for United States Firms, in solicitations for
military construction
[[Page 2857]]
contracts that are estimated to exceed $1,000,000 and are to be
performed in the United States territories and possessions in the
Pacific and on Kwajalein Atoll, or in countries bordering the Arabian
Gulf.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
6. Section 252.236-7010 is added to read as follows:
252.236-7010 Overseas Military Construction--Preference for United
States Firms.
As prescribed in 236.570(c), use the following provision:
Overseas Military Construction--Preference for United States Firms (Jan
1997)
(a) Definition.
``United States firm,'' as used in this provision, means a firm
incorporated in the United States that complies with the following:
(1) The corporate headquarters are in the United States;
(2) The firm has filed corporate and employment tax returns in
the United States for a minimum of 2 years (if required), has filed
State and Federal income tax returns (if required) for 2 years, and
has paid any taxes due as a result of these filings; and
(3) The firm employs United States citizens in key management
positions.
(b) Evaluation. Offers from firms that do not qualify as United
States firms will be evaluated by adding 20 percent to the offer.
(c) Status. The offeror ______ is, ______ is not a United States
firm.
(End of provision)
[FR Doc. 97-1041 Filed 1-16-97; 8:45 am]
BILLING CODE 5000-04-M