[Federal Register Volume 62, Number 213 (Tuesday, November 4, 1997)]
[Proposed Rules]
[Page 59641]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29122]


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DEPARTMENT OF DEFENSE

48 CFR Parts 225 and 252

[DFARS Case 97-D028]


Defense Federal Acquisition Regulation Supplement; Commercial 
Ball or Roller Bearings--Components of Noncommercial Items

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 remove 
domestic source restrictions on commercial ball or roller bearings that 
are components of noncommercial end items.

DATES: Comment date: Comments on the proposed rule should be submitted 
in writing to the address shown below on or before January 5, 1998, 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.
    E-mail comments submitted over the Internet should be addressed to: 
[email protected].
    Please cite DFARS Case 97-D028 in all correspondence related to 
this issue. E-mail comments should cite DFARS Case 97-D028 in the 
subject line.

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

SUPPLEMENTARY INFORMATION:

A. Background

    This rule proposes amendments to DFARS 225.7019-2 and the 
associated clause at 252.225-7016, Restriction on Acquisition of Ball 
and Roller Bearings, to remove domestic source restrictions on 
commercial ball or roller bearings that are components of noncommercial 
end items. This is consistent with the existing language at DFARS 
212.504(a)(xviii), which provides that 10 U.S.C. 2534, Miscellaneous 
Limitations on the Procurement of Goods Other Than United States Goods, 
is not applicable to subcontracts at any tier for the acquisition of 
commercial items or commercial components. The language at 
212.504(a)(xviii) was added to the DFARS as part of the implementation 
of Section 8003 of the Federal Acquisition Streamlining Act of 1994 (41 
U.S.C. 430), which provides that the Federal Acquisition Regulation 
shall include a list of provisions of law that are inapplicable to 
contracts for commercial items.

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. An initial regulatory 
flexibility analysis has been prepared and is summarized as follows: 
The objective of this rule is to be consistent with the existing 
regulations relating to the acquisition of commercial items and 
commercial components. The rule will apply to all offerors and 
contractors offering noncommercial end items that contain commercial 
ball or roller bearings as components, and all suppliers of such 
commercial bearings, but will have no effect if another exception to 10 
U.S.C. 2534 already applies. There is no data available to estimate the 
number of small entities involved, because DD Form 350 data does not 
provide information regarding components. However, the rule will not 
affect acquisitions using simplified acquisition procedures, as an 
exception covering such acquisitions already exists. Furthermore, the 
restriction has already been waived for bearings from qualifying 
countries. The proposed rule will remove the requirement for offerors 
and contractors to track the origin of commercial ball or roller 
bearings used as components in noncommercial end items. The proposed 
rule may increase competition from naufacturers of foreign, 
nonqualifying country commercial ball or roller bearings in affected 
acquisitions.
    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 97-
D028 in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
rule does not impose any 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 Parts 225 and 252

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

    2. Section 225.7019-2 is amended by revising paragraph (a)(2) to 
read as follows:


225.7019-2  Exceptions.

    (a) * * *
    (2) Purchases of commercial items (end items or components) 
incorporating ball or roller bearings or purchases of ball or roller 
bearings that are commercial components of noncommercial items.
* * * * *

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Section 252.225-7016 is amended by revising the clause date and 
paragraphs (c)(1)(i) and (f) to read as follows:


252.225-7016  Restriction on acquisition of ball and roller bearings.

* * * * *

RESTRICTION ON ACQUISITION OF BALL AND ROLLER BEARINGS (XXX 19XX)

* * * * *
    (c)(1) * * *
    (i) The end items or components containing ball or roller 
bearings are commercial items or the bearings are commercial 
components of noncommercial items; or
* * * * *
    (f) The Contractor agrees to insert this clause, including this 
paragraph (f), in every subcontract and purchase order issued in 
performance of this contract, unless items acquired in the 
subcontract or purchase order are--
    (1) Commercial items; or
    (2) Items that do not contain ball or roller bearings.

(End of clause)

[FR Doc. 97-29122 Filed 11-3-97; 8:45 am]
BILLING CODE 5000-04-M