[Federal Register Volume 66, Number 243 (Tuesday, December 18, 2001)]
[Rules and Regulations]
[Pages 65349-65351]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-30538]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 2, 25, and 52

[FAC 2001-02; FAR Case 2000-015;
Item I]
RIN 9000-AJ24


Federal Acquisition Regulation; Definitions of ``Component'' and 
``End Product''

AGENCIES: Department of Defense (DoD), General ServicesAdministration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) have agreed on a final rule 
amending the Federal Acquisition Regulation (FAR) to restore the unique 
(Part 25) definitions of ``component'' and ``end product'' for 
acquisition of supplies. In addition, the Councils have made minor 
revisions to the definitions of ``component'' and ``cost of 
components'' for acquisition of construction.

DATES: Effective Date: February 19, 2002.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS 
Building, Washington, DC, 20405, (202) 501-4755, for information 
pertaining to status or publication schedules. For clarification of 
content, contact Ms. Cecelia L. Davis, Procurement Analyst, at (202) 
219-0202. Please cite FAC 2001-02, FAR case 2000-015.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule restores unique definitions of ``component'' and 
``end

[[Page 65350]]

product'' at FAR 25.003, and amends the definitions at FAR 2.101 and 
associated clauses 52.225-1, Buy American Act--Balance of Payments 
Program--Supplies; 52.225-3, Buy American Act--North American Free 
Trade Agreement--Israeli Trade Act--Balance of Payments Program; and 
52.225-5, Trade Agreements, to comply with these definitions. The final 
rule under FAR case 97-024, Foreign Acquisition (Part 25 Rewrite), 
published in the Federal Register at 64 FR 72416, December 27, 1999, 
removed the unique Part 25 definitions of ``component'' and ``end 
product,'' applying standard definitions in Part 2 to Part 25 and 
associated clauses (other than clauses for construction). The Councils 
did not intend to make any substantive change to the FAR by these 
amendments. Because the Councils received comments addressing potential 
unintended substantive changes to the FAR that might result from these 
amendments, the Councils are reverting to the original definitions, 
with minor editorial corrections.
    In addition, this rule revises the definition of ``components'' in 
FAR clauses 52.225-9, Buy American Act--Balance of Payments Program--
Construction Materials, and 52.225-11, Buy American Act--Balance of 
Payments Program--Construction Materials under Trade Agreements, to a 
definition of the singular term ``component'' and revises the 
definition of ``cost of components'' in these clauses to address 
components of construction material, rather than components of an end 
product (which is not applicable to construction).
    This is not a significant regulatory action, and therefore, was not 
subject to review under section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    The final rule does not constitute a significant FAR revision 
within the meaning of FAR 1.501 and Public Law 98-577, and publication 
for public comments is not required. However, the Councils will 
consider comments from small entities concerning the affected FAR parts 
2, 25, and 52 in accordance with 5 U.S.C. 610. Interested parties must 
submit such comments separately and should cite 5 U.S.C. 601, et seq. 
(FAC 2001-02, FAR case 2000-015), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes to 
the FAR do not impose 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 2, 25, and 52

    Government procurement.

    Dated: December 5, 2001.
Al Matera,
Director, Acquisition Policy Division.

    Therefore, DoD, GSA, and NASA amend 48 CFR parts 2, 25, and 52 as 
set forth below:

    1. The authority citation for 48 CFR parts 2, 25, and 52 continues 
to read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 2--DEFINITIONS OF WORDS AND TERMS

    2. Amend section 2.101 by revising the definitions ``Component'' 
and ``End product'' to read as follows:


2.101  Definitions.

* * * * *
    Component means any item supplied to the Government as part of an 
end item or of another component, except that for use in--
    (1) Part 25, see the definition in 25.003;
    (2) 52.225-1 and 52.225-3, see the definition in 52.225-1(a) and 
52.225-3(a); and
    (3) 52.225-9 and 52.225-11, see the definition in 52.225-9(a) and 
52.225-11(a).
* * * * *
    End product means supplies delivered under a line item of a 
Government contract, except for use in part 25 and the associated 
clauses at 52.225-1, 52.225-3, and 52.225-5, see the definitions in 
25.003, 52.225-1(a), 52.225-3(a), and 52.225-5(a).
* * * * *

PART 25--FOREIGN ACQUISITION

    3. In section 25.003 add, in alphabetical order, the definitions 
``Component'' and ``End product''; and amend paragraph (1) of the 
definition ``Cost of components'' by removing ``product'' and adding 
``product or construction material'' in its place. The added text reads 
as follows:


25.003  Definitions.

* * * * *
    Component means an article, material, or supply incorporated 
directly into an end product or construction material.
* * * * *
    End product means those articles, materials, and supplies to be 
acquired for public use.
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    4. Amend section 52.225-1 by revising the date of the clause and 
the definitions ``Component'' and ``End product'' to read as follows:


52.225-1  Buy American Act--Balance of Payments Program--Supplies.

* * * * *
    Buy American Act--Balance of Payments Program--Supplies (Feb 
2002)

    (a) * * *
    Component means an article, material, or supply incorporated 
directly into an end product.
* * * * *
    End product means those articles, materials, and supplies to be 
acquired under the contract for public use.
* * * * *

    5. Amend section 52.225-3 by revising the date of the clause and 
the definitions ``Component'' and ``End product'' to read as follows:


52.225-3  Buy American Act--North American Free Trade Agreement--
Israeli Trade Act--Balance of Payments Program.

* * * * *

Buy American Act--North American Free Trade Agreement--Israeli Trade 
Act--Balance of Payments Program (Feb 2002)

    (a) * * *
    Component means an article, material, or supply incorporated 
directly into an end product.
* * * * *
    End product means those articles, materials, and supplies to be 
acquired under the contract for public use.
* * * * *

    6. Amend section 52.225-5 by revising the date of the clause and 
the definition ``End product'' to read as follows:


52.225-5  Trade Agreements.

* * * * *

Trade Agreements (Feb 2002)

    (a) * * *
    End product means those articles, materials, and supplies to be 
acquired under the contract for public use.
* * * * *

    7. Amend section 52.225-9 by revising the date of the clause and 
the definition ``Component''; and by

[[Page 65351]]

amending the definition ``Cost of components'' in paragraph (1) by 
removing ``end product'' and adding ``construction material'' in its 
place. The revised text reads as follows:


52.225-9  Buy American Act--Balance of Payments Program--Construction 
Materials.

* * * * *

Buy American Act--Balance of Payments Program--Construction Materials 
(Feb 2002)

    (a) * * *
    Component means an article, material, or supply incorporated 
directly into a construction material.
* * * * *

    8. Amend section 52.225-11 by revising the date of the clause and 
the definition ``Component''; and by amending the definition ``Cost of 
components'' in paragraph (1) by removing ``end product'' and adding 
``construction material'' in its place. The revised text reads as 
follows:


52.225-11  Buy American Act--Balance of Payments Program--Construction 
Materials under Trade Agreements.

* * * * *

Buy American Act--Balance of Payments Program--Construction Materials 
Under Trade Agreements (Feb 2002)

    (a) * * *
    Component means an article, material, or supply incorporated 
directly into a construction material.
* * * * *
[FR Doc. 01-30538 Filed 12-17-01; 8:45 am]
BILLING CODE 6820-EP-P