[Federal Register Volume 64, Number 35 (Tuesday, February 23, 1999)]
[Rules and Regulations]
[Pages 8727-8729]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-4341]


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DEPARTMENT OF DEFENSE

48 CFR Parts 212, 225, and 252

[DFARS Case 98-D305]


Defense Federal Acquisition Regulation Supplement; People's 
Republic of China

AGENCY: Department of Defense (DoD).

ACTION: Interim rule.

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SUMMARY: The Director of Defense Procurement has issued an interim rule

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amending the Defense Federal Acquisition Regulation Supplement (DFARS) 
to implement Section 8120 of the DoD Appropriations Act for fiscal year 
1999. Section 8120 places restrictions on the award of contracts to 
companies owned or partially owned by the People's Republic of China or 
the People's Liberation Army of the People's Republic of China.

DATES: Effective date: February 23, 1999.
    Comment date: Comments on the interim rule should be submitted in 
writing to the address shown below on or before April 26, 1999, 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 (703) 602-0350.
    E-mail comments submitted over the Internet should be addressed to: 
[email protected]
    Please cite DFARS Case 98-D305 in all correspondence related to 
this issue. E-mail comments should cite DFARS Case 98-D305 in the 
subject line.

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

SUPPLEMENTARY INFORMATION: 

A. Background

    This interim rule amends DFARS 212.301, adds a new section at 
225.771, and adds a new solicitation provision at 252.225-7017. The 
rule implements Section 8120 of the DoD Appropriations Act for fiscal 
year 1999 (Pub. L. 105-262). Section 8120 provides that no funds 
appropriated under Title III (Procurement) or Title IV (Research, 
Development, Test and Evaluation) of the Act may be used to enter into 
or renew a contract with any company owned or partially owned by the 
People's Republic of China or the People's Liberation Army of the 
People's Republic of China.

B. Regulatory Flexibility Act

    The 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 
pertains only to companies owned or partially owned by the People's 
Republic of China or the People's Liberation Army of the People's 
Republic of China. Therefore, an initial regulatory flexibility 
analysis has 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 98-D305 in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the interim 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.

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 rule implements Section 8120 of the DoD Appropriations Act for 
fiscal year 1999 (Pub. L. 105-262). Section 8120 provides that no funds 
appropriated under titles III and IV of the Act may be used to enter 
into or renew a contract with any company owned or partially owned by 
the People's Republic of China or the People's Liberation Army of the 
People's Republic of China. Section 8120 became effective on October 
17, 1998. 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 212, 225, and 252

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

    Therefore, 48 CFR Parts 212, 225, and 252 are amended as follows:
    1. The authority citation for 48 CFR Parts 212, 225, and 252 
continues to read as follows:

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

PART 212--ACQUISITION OF COMMERCIAL ITEMS

    2. Section 212.301 is amended in paragraph (f)(ii) in the second 
sentence by revising the reference ``252.225-7000'' to read ``252.212-
7000'', and by adding a new paragraph (f)(v) to read as follows:


212.301  Solicitation provisions and contract clauses for the 
acquisition of commercial items.

    (f) * * *
    (v) Use the provision at 252.225-7017, Prohibition on Award to 
Companies Owned by the People's Republic of China, as prescribed in 
225.771.

PART 225--FOREIGN ACQUISITION

    3. Sections 225.771, 225.771-1, 225.771-2, 225.771-3, and 225.771-4 
are added to read as follows:


225.771  Prohibition on acquisition from the People's Republic of 
China.


225.771-1  Definition.

    ``People's Republic of China'' is defined in the provision at 
252.225-7017, Prohibition on Award to Companies Owned by the People's 
Republic of China.


225.771-2  Legal authority.

    This section implements Section 8120 of the DoD Appropriations Act 
for fiscal year 1999 (Pub. L. 105-262).


225.771-3  Prohibition on contract award.

    Do not award or renew a contract with any company owned or 
partially owned by the People's Republic of China or the People's 
Liberation Army of the People's Republic of China, if using funds made 
available by Title III (Procurement) or Title IV (Research, 
Development, Test and Evaluation) of Pub. L. 105-262.


225.771-4  Solicitation provision.

    Use the provision at 252.225-7017, Prohibition on Award to 
Companies Owned by the People's Republic of China, in solicitations for 
contracts that will use funds made available by Title III or IV of Pub. 
L. 105-262.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    4. Section 252.225-7017 is added to read as follows:


252.225-7017  Prohibition on Award to Companies Owned by the People's 
Republic of China.

    As prescribed in 225.771-4, use the following provision:

Prohibition on Award To Companies Owned by the People's Republic of 
China (Feb. 1999)

    (a) Definition. ``People's Republic of China,'' as used in this 
provision, means the government of the People's Republic of China, 
including its political subdivisions, agencies, and 
instrumentalities.
    (b) Prohibition on award. Section 8120 of the Department of 
Defense Appropriations Act for fiscal year 1999 (Pub. L. 105-262) 
prohibits the award of a contract under this solicitation to any 
company owned, or partially owned, by the People's Republic of China 
or the People's Liberation Army of the People's Republic of China.
    (c) Representation. By submission of an offer, the offeror 
represents that it is not

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owned, or partially owned, by the People's Republic of China or the 
People's Liberation Army of the People's Republic of China.

(End of provision)

[FR Doc. 99-4341 Filed 2-22-99; 8:45 am]
BILLING CODE 5000-04-M