[Federal Register Volume 66, Number 150 (Friday, August 3, 2001)]
[Notices]
[Pages 40680-40681]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19485]


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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, Technology, and 
Logistics) is waving 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, unless otherwise restricted by 
statute.

EFFECTIVE DATE: This waiver is effective for one year, beginning August 
19, 2001.

FOR FURTHER INFORMATION CONTACT: Mr. Michael Mutty, OUSD (AT&L), 
Director of Defense Procurement, Foreign Contracting, Room 3C762, 3060 
Defense

[[Page 40681]]

Pentagon, Washington, DC 20301-3060, telephone (703) 697-9553.

SUPPLEMENTARY INFORMATION: Subsection (a) of 10 U.S.C. 2534 provides 
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 a 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, Technology, and 
Logistics).
    DoD has a reciprocal procurement Memorandum of Understanding (MOU) 
with the UK that was signed on December 13, 1994.
    The Under Secretary of Defense (Acquisition, Technology, and 
Logistics) finds that the UK does not discriminate against defense 
items produced in hte United States to a greater degree than 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, Technology, and Logistics) 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, Technology, and Logistics) 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 section 8016 and 8064 of the DoD Appropriations Act for 
Fiscal Year 2001 (Public Law 106-259). This waiver applies to 
procurements under solicitations issued during the period from August 
19, 2001, to August 18, 2002. Similar waivers were granted for the 
period from August 4, 1998, to August 18, 2001 (63 FR 38815, July 20, 
1998, 64 FR 38896, July 20, 1999, and 65 FR 47968, August 4, 2000). For 
contracts resulting from solicitations issued prior to August 4, 1998, 
this waiver applies to procurements of the defense items listed below 
under--
    (1) Subcontracts entered into during the period from August 19, 
2001, to August 18, 2002, provided the prime contract is modified to 
provide the Government adequate consideration such as lower cost or 
improved performance; and
    (2) Options that are exercised during the period from August 19, 
2001, to August 18, 2002, 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.

Michelle P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
[FR Doc. 01-19485 Filed 8-2-01; 8:45 am]
BILLING CODE 5000-04-M