[Federal Register Volume 62, Number 84 (Thursday, May 1, 1997)]
[Proposed Rules]
[Pages 23741-23742]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-11297]
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DEPARTMENT OF DEFENSE
48 CFR Part 252
[DFARS Case 97-D007]
Specialty Metals; Agreements with Qualifying Countries
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 revise the
Preference for Domestic Speciality Metals clause for consistency with
the provisions of the Berry Amendment.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before June 30, 1997.
ADDRESSES: Interested parties should submit written comments to:
Defense Acquisition Regulations Council, ATTN: Ms. Amy Williams,
PDUSD(A&T)DP(DAR), 3062 Defense Pentagon, Washington, DC 20301-3062.
Telefax number (703) 602-0305. Please cite DFARS Case 97-D007 in all
correspondence related to this issue.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, (703) 602-0131.
SUPPLEMENTARY INFORMATION:
A. Background
This proposed rule amends the contract clause at DFARS 252.225-
7014, Preference for Domestic Specialty Metals. The clause requires
that, with certain exceptions, any specialty metals incorporated in
articles delivered under the contract will be melted in the United
States, its possessions, or Puerto Rico. Paragraph(c)(2) of the clause
presently provides for an exception to this requirement when the
acquisition is for an end product of a qualifying country listed in
DFARS 225.872-1. This proposed rule revises paragraph (c)(2) of the
clause to provide an exception for speciality metals melted in a
qualifying country or incorporated in an article manufactured in a
qualifying country, rather than only providing an exception for the
acquisition of end products of a qualifying country. This proposed
revision is consistent with the Berry Amendment (10 U.S.C. 2241 note)
(as implemented at DFARS 225.7002-2(i)), which provides an exception
from domestic source restrictions for the procurement of specialty
metals where such procurement is necessary in furtherance of agreements
with foreign governments in which both governments agree to remove
barriers to purchase of supplies produced in the other country.
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., because the rule
increases the opportunity for foreign competition by firms providing
speciality metals melted in qualifying countries or qualifying country
components containing specialty metals. An Initial Regulatory
Flexibility Analysis (IRFA) has, therefore, been performed, and is
summarized as follows: This proposed rule amends the clause at DFARS
252.225-7014 to make the exception in the clause consistent with the
Berry Amendment (10 U.S.C. 2241 note) and with the existing DFARS text
at 225.7002-2(i). The clause at DFARS 252.225-7014 is prescribed for
use in all solicitations and contracts over the simplified acquisition
threshold that require delivery of an article containing specialty
metals. The clause is prescribed for use with its Alternate I if the
article containing specialty metals is for one of certain major
programs. The basic clause only restricts the direct acquisition of
specialty metals by the prime contractor, whereas Alternate I flows
down the restriction to subcontractors at any tier. The proposed rule
does not affect the already unrestricted sources of speciality metals
when acquiring qualifying country end products or when acquiring
components including speciality metals for use in an end product for
other than a major program. The proposed rule does loosen the
restriction on domestic specialty metals for prime contractors
providing domestic nonqualifying country end products, permitting them
to incorporate speciality metals melted in a qualifying country (for
both major and non-major programs), or qualifying country components
containing specialty metals of unrestricted source for use in end
products for major programs. Because the components subject to
increased foreign competition are at a subcontract level, it is not
possible to more specifically identify the items or whether they are
produced by small business firms. The proposed rule does not require
any new reporting or recordkeeping, and does not duplicate, overlap, or
conflict with other relevant Federal rules. An alternative approach
would be to require that the specialty metals incorporated in articles
manufactured in a qualifying country also be melted in a qualifying
country.
[[Page 23742]]
This approach could slightly reduce the extent of foreign competition
facing domestic entities. However, this approach appeared to go beyond
the requirements of the statute being implemented.
A copy of the IRFA has been submitted to the Chief Counsel for
Advocacy of the Small Business Administration. Interested parties may
obtain a copy of the IRFA from the address specified herein. Comments
are invited. 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-
D007 in correspondence.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the proposed
rule contains no information collection requirements that require the
approval of the Office of Management and Budget under 44 U.S.C. 3501,
et seq.
List of Subjects in 48 CFR Part 252
Government procurement.
Michele P. Peterson
Executive Editor, Defense Acquisition Regulations Council.
Therefore, 48 CFR Part 252 is proposed to be amended as follows:
1. The authority citation for 48 CFR part 252 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
2. Section 252.225-7014 is amended by revising the date of the
clause, paragraph (c)(2) of Alternate I to read as follows:
252.225-7014 Preference for domestic specialty metals.
* * * * *
Preference for Domestic Specialty Metals (Date)
* * * * *
(c) * * *
(2) The specialty metal is melted in a qualifying country, or is
incorporated in an article manufactured in a qualifying country.
(Qualifying countries are those countries listed in subsection 225-872-
1 of the Defense Federal Acquisition Regulation Supplement);
* * * * *
Alternate I (Date)
* * * * *
(c) * * *
(2) The specialty metal is melted in a qualifying country, or is
incorporated in an article manufactured in a qualifying country.
(Qualifying countries are those countries listed in subsection 225.872-
1 of the Defense Federal Acquisition Regulation Supplement); or
* * * * *
[FR Doc. 97-11297 Filed 4-30-97; 8:45 am]
BILLING CODE 5000-04-M