[Federal Register Volume 63, Number 138 (Monday, July 20, 1998)]
[Notices]
[Pages 38815-38816]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-19157]


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DEPARTMENT OF DEFENSE


Waiver of 10 U.S.C. 2534 for Certain Defense Items Produced in 
the United Kingdom

AGENCY: Department of Defense, (DoD).

ACTION: Notice of waiver of 10 U.S.C. 2534 for certain defense items 
produced in the United Kingdom.

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SUMMARY: The Under Secretary of Defense (Acquisition and Technology) is 
waiving the limitation of 10 U.S.C. 2534 for certain defense items 
produced in the United Kingdom (UK). 10 U.S.C. 2534 limits DoD 
procurement of certain items to sources in the national technology and 
industrial base. The waiver will permit procurement of items enumerated 
from sources in the UK.

EFFECTIVE DATE: This waiver is effective for one year, beginning August 
4, 1998.

FOR FURTHER INFORMATION CONTACT:
Mr. Walter Henderson, OUSD (A&T), Director of Defense Procurement, 
Foreign Contracting, Room 3C762, 3060

[[Page 38816]]

Defense Pentagon, Washington, DC 20301-3060, telephone (703) 697-9351.

SUPPLEMENTARY INFORMATION: Subsection (a) of 10 U.S.C. 2534 provided 
that the Secretary of Defense may procure the items listed in that 
subsection only if the manufacturer of the item is part of the national 
technology and industrial base. Subsection (i) of 10 U.S.C. 2534 
authorizes the Secretary of Defense to exercise the waiver authority in 
subsection (d), on the basis of the applicability of paragraph (2) or 
(3) of that subsection, only if the waiver is made for a particular 
item listed in subsection (a) and for particular foreign country. 
Subsection (d) authorizes a waiver if the Secretary determines that 
application of the limitation ``would impede the reciprocal procurement 
of defense items under a memorandum of understanding providing for 
reciprocal procurement of defense items'' and if he determines that 
``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.'' The 
Secretary of Defense has delegated the waiver authority of 10 U.S.C. 
2534(d) to the Under Secretary of Defense (Acquisition and Technology).
    DoD has a reciprocal procurement Memorandum of Understanding (MOU) 
with the UK that was signed on December 4, 1994.
    The Under Secretary of Defense (Acquisition and Technology) finds 
that UK does not discriminate against defense items produced in the 
United States to a greater degree that the United States discriminates 
against defense items produced in the UK, and also finds that 
application of the limitation in 10 U.S.C. 2534 against defense items 
produced in the UK would impede the reciprocal procurement of defense 
items under the MOU.
    Under the authority of 10 U.S.C. 2534, the Under Secretary of 
Defense (Acquisition and Technology) has determined that application of 
the limitation of 10 U.S.C. 2534(a) to the procurement of any defense 
item produced in the UK that is listed below would impede the 
reciprocal procurement of defense items under the MOU with the UK.
    On the basis of the foregoing, the Under Secretary of Defense 
(Acquisition and Technology) is waiving the limitation in 10 U.S.C. 
2534(a) for procurements of any defense item listed below that is 
produced in the UK. This waiver applies only to the limitations in 10 
U.S.C. 2534(a). It does not apply to any other limitation, including 
sections 8016 and 8073 of the National Defense Appropriations Act for 
Fiscal Year 1998 (Pub. L. 105-56). This waiver applies to procurements 
under solicitations issued on or after the effective date of this 
waiver. For contracts entered into prior to the effective date of this 
waiver, this waiver applies to procurements of the defense items listed 
below under--
    (1) Subcontracts entered into on or after such effective date, 
provided the prime contract is modified to provide the Government 
adequate consideration such as lower cost or improve performance; and
    (2) Options that are exercised after such effective date if the 
option prices are adjusted for any reason other than the application of 
the waiver, and if the contract is modified to provide the Government 
adequate consideration such as lower cost or improved performance.

List of Items to Which This Waiver Applies

1. Air circuit breakers.
2. Welded shipboard anchor and mooring chain with a diameter of four 
inches or less.
3. Gyrocompasses.
4. Electronic navigation chart systems.
5. Steering controls.
6. Pumps.
7. Propulsion and machinery control systems.
8. Totally enclosed lifeboats.
9. Ball and roller bearings.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
[FR Doc. 98-19157 Filed 7-17-98; 8:45 am]
BILLING CODE 5000-04-M