[Federal Register Volume 64, Number 177 (Tuesday, September 14, 1999)]
[Proposed Rules]
[Pages 49757-49758]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-23729]


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DEPARTMENT OF DEFENSE

48 CFR Parts 212, 225, and 252

[DFARS Case 99-D301]


Defense Federal Acquisition Regulation Supplement; Domestic 
Source Restrictions--Commercial 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 address 
requirements pertaining to the applicability of domestic source 
restrictions to contracts and subcontracts for the acquisition of 
commercial items and commercial components.

DATES: Comments on the proposed rule should be submitted in writing to 
the address specified below on or before November 15, 1999, to be 
considered in the formation of the final rule.

ADDRESSES: Interested parties should submit written comments on the 
proposed rule 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) 602-3050. Please cite DFARS 
Case 99-D301.
    E-mail comments submitted over the Internet should be addressed to: 
[email protected].
    Please cite DFARS Case 99-D301 in all correspondence related to 
this issue. E-mail correspondence should cite DFARS Case 99--D301 in 
the subject line.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, (703) 602-0288. 
Please cite DFARS Case 99-D301.

SUPPLEMENTARY INFORMATION:

A. Background

    This rule proposes amendments to DFARS 212.503, 212.504, 225.7019-
2, and 252.225-7016 to address the applicability of domestic source 
restrictions to contracts and subcontracts for the acquisition of 
commercial items and commercial components. The rule specifies that the 
domestic source restrictions in 10 U.S.C. 2534 and annual defense 
appropriations acts are inapplicable if the restricted foreign goods 
are components of commercial items or commercial components being 
acquired. The rule also removes the Trade Agreements Act (19 U.S.C. 
2512) and the Buy American Act (41 U.S.C. 10) from the list of laws 
that are inapplicable to subcontracts for the acquisition of commercial 
items, since the Trade Agreements Act and the Buy American Act apply to 
end items only.
    This proposed rule supersedes the proposed rule published at 62 FR 
59641 on November 4, 1997 (DFARS Case 97-D028), pertaining to 
commercial ball or roller bearings that are components of

[[Page 49758]]

noncommercial items. No public comments were received on that proposed 
rule, which is hereby withdrawn.

B. Regulatory Flexibility Act

    The proposed 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 
primary effect of the rule is a restriction on the acquisition of ball 
and roller bearings manufactured in the United Kingdom. The clause at 
DFARS 252.225-7016 presently permits the acquisition of commercial ball 
and roller bearings manufactured in the United Kingdom, regardless of 
whether the bearings are acquired as end items or components. The 
proposed rule would no longer permit the acquisition of commercial ball 
and roller bearings from the United Kingdom if the bearings are 
acquired as end items. This change is not expected to have a 
significant impact on U.S. firms. 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 99-D301 in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the 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 212, 225, and 252

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

    Therefore, 48 CFR Part 212, 225, and 252 are proposed to be 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 212.503 is amended by revising paragraph (a)(xi) to read 
as follows:


212.503   Applicability of certain laws to Executive Agency contracts 
for the acquisition of commercial items.

    (a) * * *
    (xi) Section 8099, Public Law 104-61, Restriction on Acquisition of 
Ball and Roller Bearings, and similar sections in subsequent defense 
appropriations acts, if ball or roller bearings are components of the 
commercial items being acquired.
* * * * *
    3. Section 212.504 is amended by revising paragraphs (a) (xviii) 
and (xxvi) and removing and reserving paragraphs (a) (xxiii) and (xxiv) 
to read as follows:


212.504   Applicability of certain laws to subcontracts for the 
acquisition of commercial items.

    (a) * * *
    (xviii) 10 U.S.C. 2534, Miscellaneous Limitations on the 
Procurement of Goods Other Than United States Goods, if the restricted 
foreign goods are components of--
    (A) The commercial items being acquired; or
    (B) The commercial components being acquired.
* * * * *
    (xxiii) [Reserved.]
    (xxiv) [Reserved.]
* * * * *
    (xxvi) Section 8099, Public Law 104-61, Restriction on Acquisition 
of Ball and Roller Bearings, and similar sections in subsequent defense 
appropriations acts, if ball or roller bearings are components of--
    (A) The commercial items being acquired; or
    (B) The commercial components being acquired.
* * * * *

PART 225--FOREIGN ACQUISITION

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


225.7019-2   Exceptions.

* * * * *
    (b) The restriction in 225.7019-1(b) does not apply to--
    (1) Contracts for the acquisition of commercial items incorporating 
ball or roller bearings (see 212.503(a)(xi); or
    (2) Subcontracts for the acquisition of--
    (i) Commercial items incorporating ball or roller bearings; or
    (ii) Commercial components incorporating ball or roller bearings 
(see 212.504(a)(xxvi)).

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

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


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

* * * * *

Restriction on Acquisition of Ball and Roller Bearings (XXX 1999)

* * * * *
    (c)(1) The restriction in paragraph (b) of this clause does not 
apply to the extent that the end items containing ball or roller 
bearings or components containing ball or roller bearings are 
commercial items.
* * * * *
    (d) The restriction in paragraph (b) of this clause may be 
waived upon request from the Contractor in accordance with 
subsection 225.7019-3 of the Defense Federal Acquisition Regulation 
Supplement (DFARS). If the restriction is waived for miniature and 
instrument ball bearings, the Contractor agrees to acquire a like 
quantity and type of domestic manufacture for nongovernmental use, 
unless the miniature and instrument ball bearings being acquired are 
manufactured in the United Kingdom or an exception applies in 
accordance with DFARS 225.7019-2(a).
* * * * *
[FR Doc. 99-23729 Filed 9-13-99; 8:45 am]
BILLING CODE 5000-04-M