[Federal Register Volume 62, Number 33 (Wednesday, February 19, 1997)]
[Proposed Rules]
[Pages 7432-7433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-4042]


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DEPARTMENT OF DEFENSE

48 CFR Part 225

[DFARS Case 97-D300]


Defense Federal Acquisition Regulation Supplement; Ball and 
Roller Bearings; Waiver

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.

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SUMMARY: The Director of Defense Procurement is proposing to amend the 
Defense Federal Acquisition Regulation Supplement (DFARS) to implement 
10 U.S.C. 2534(d)(6), which provides that the Secretary of Defense may 
waive the domestic source restrictions of 10 U.S.C. 2534(a) for a 
procurement that is for an amount less than the simplified acquisition 
threshold, when simplified acquisition procedures are being used.

DATE: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before April 21, 1997, 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 97-
D300 in all correspondence related to this issue.

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

SUPPLEMENTARY INFORMATION:

A. Background

    10 U.S.C. 2534(a) limits the procurement of certain items to 
domestic sources; 10 U.S.C. 2534(g)(1) provides that this limitation 
does not apply to a contract or subcontract for an amount that does not 
exceed the simplified acquisition threshold.
    10 U.S.C. 2534(d)(6) provides that the Secretary of Defense may 
waive the limitation in 10 U.S.C. 2534(a) for a procurement that is for 
an amount less than the simplified acquisition threshold, when 
simplified acquisition procedures are being used.
    This DFARS rule proposes to implement the waiver authority of 10 
U.S.C. 2534(d)(6) with regard to the acquisition of ball and roller 
bearings, because 10 U.S.C. 2534(g)(2), added by Section 806(d) of the 
National Defense Authorization Act for Fiscal Year 1996 (Pub. L. 104-
106), makes the broader exception at 10 U.S.C. 2534(g)(1) inapplicable 
to ball and roller bearings.

B. Regulatory Flexibility Act

    The proposed rule may 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. Therefore, an Initial 
Regulatory Flexibility Analysis has been prepared and is summarized as 
follows:
    The proposed rule is being considered by the agency to implement 10 
U.S.C. 2534(d)(6) with regard to the acquisition of ball and roller 
bearings. 10 U.S.C. 2534(d)(6) provides that the Secretary of Defense 
may waive the domestic source restrictions of 10 U.S.C. 2534(a) for a 
procurement that is for an amount less than the simplified acquisition 
threshold, when simplified acquisition procedures are being used. 
Because of other statutory provisions that pertain to the acquisition 
of ball and roller bearings, the waiver authority in this proposed rule 
may be used only if (1) ball and roller bearings or bearing components 
are the end items being purchased, and (2) the ball and roller bearings 
or bearing components are commercial items, or no fiscal year 1996 or 
1997 funds are being used. It is estimated that 11 small businesses 
could be affected by this rule. The rule imposes no new reporting, 
recordkeeping, or compliance requirements for contractors or offerors; 
and does not duplicate, overlap, or conflict with any other Federal 
rules. There are no practical alternatives that will fully implement 
the provisions of 10 U.S.C. 2534(d)(6).
    A copy of the Initial Regulatory Flexibility Analysis has been 
submitted to the Chief Counsel for Advocacy of the Small Business 
Administration. Interested parties may obtain a copy of the analysis 
from the address specified herein. Comments are invited from small 
businesses and other interested parties. Comments from small entities 
concerning the affected DFARS subpart also will be considered in 
accordance with 5 U.S.C. 610. Such comments should be submitted 
separately and should cite DFARS Case 97-D300 in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
rule contains no information collection requirements that require 
approval of the Office of Management and Budget under 44 U.S.C. 3501, 
et seq.

[[Page 7433]]

List of Subjects in 48 CFR Part 225

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

    Therefore, 48 CFR Part 225 is amended as follows:
    1. The authority citation for 48 CFR Part 225 continues to read as 
follows:

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

PART 225--FOREIGN ACQUISITION

    2. Section 225.7019-3 is amended by redesignating paragraphs (a)(2) 
and (a)(3) as paragraphs (a)(3) and (a)(4), respectively, and by adding 
a new paragraph (a)(2) to read as follows:


225.7019-3  Waiver.

    (a) * * *
    (2) If the acquisition is for an amount less than the simplified 
acquisition threshold and simplified acquisition procedures are being 
used.
* * * * *
[FR Doc. 97-4042 Filed 2-18-97; 8:45 am]
BILLING CODE 5000-04-M