[Federal Register Volume 67, Number 54 (Wednesday, March 20, 2002)]
[Proposed Rules]
[Pages 13080-13081]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-6515]



[[Page 13079]]

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Part V





Department of Defense

General Services Administration

National Aeronautics and Space Administration





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48 CFR Parts 25 and 52



Federal Acquisition Regulation; Prohibited Sources; Proposed Rule

  Federal Register / Vol. 67, No. 54 / Wednesday, March 20, 2002 / 
Proposed Rules  

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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 25 and 52

[FAR Case 2001-015]
RIN: 9000-AJ35


Federal Acquisition Regulation; Prohibited Sources

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

ACTION: Proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) are proposing to amend the 
Federal Acquisition Regulation (FAR) to implement Executive Order 
13192, Lifting and Modifying Measures With Respect to the Federal 
Republic of Yugoslavia (Serbia and Montenegro), and other regulations 
of the Department of the Treasury that enforce economic sanctions 
imposed by the President.

DATES: Interested parties should submit comments in writing on or 
before May 20, 2002 to be considered in the formulation of a final 
rule.

ADDRESSES: Submit written comments to: General Services Administration, 
FAR Secretariat (MVP), 1800 F Street, NW., Room 4035, ATTN: Laurie 
Duarte, Washington, DC 20405.
    Submit electronic comments via the Internet to: [email protected]. Please submit comments only and cite FAR case 2001-015 in 
all correspondence related to this case.

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

SUPPLEMENTARY INFORMATION:

A. Background

    This rule amends FAR Subpart 25.7 and the clause at 52.225-13, 
Restrictions on Certain Foreign Purchases, to implement Executive Order 
13192, Lifting and Modifying Measures With Respect to the Federal 
Republic of Yugoslavia (Serbia and Montenegro), and other regulations 
of the Department of the Treasury that enforce economic sanctions 
imposed by the President.
    This proposed rule removes Serbia from the list of prohibited 
sources at FAR 25.701; slightly modifies the restrictions relating to 
acquisition of supplies or services from Cuba, Iran, Iraq, Libya, North 
Korea, Sudan, and the territory of Afghanistan controlled by the 
Taliban; and requires authorization by the Department of the Treasury 
for any exceptions to these prohibitions, even when purchased overseas 
for use overseas. In addition, the rule expands the prohibition against 
acquisition from entities controlled by the Government of Iraq or other 
specially designated nationals to include all blocked persons, and 
provides the Department of Treasury website for access to the list of 
Specially Designated Nationals and Blocked Persons.
    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 Councils do not expect this proposed rule 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 proposed amendments will only affect acquisitions from 
prohibited sources. An Initial Regulatory Flexibility Analysis has, 
therefore, not been performed. We invite comments from small businesses 
and other interested parties. The Councils will consider comments from 
small entities concerning the affected FAR Parts 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. (FAR case 
2001-015), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
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 25 and 52

    Government procurement.

    Dated: March 13, 2002.
Al Matera,
Director, Acquisition Policy Division.
    Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 25 and 
52 as set forth below:
    1. The authority citation for 48 CFR parts 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 25--FOREIGN ACQUISITION

    2. Revise section 25.701 to read as follows:


25.701  Restrictions.

    (a) Except as authorized by the Office of Foreign Assets Control 
(OFAC) in the Department of the Treasury, agencies and their 
contractors and subcontractors must not acquire any supplies or 
services, if any Executive order administered by OFAC, or the Foreign 
Assets Control regulations set forth at 31 CFR chapter V would prohibit 
such a transaction by a person subject to the jurisdiction of the 
United States.
    (b) Most transactions involving Cuba, Iran, Iraq, Libya, Sudan and 
the Taliban-controlled regions of Afghanistan are prohibited, as are 
most imports into the United States from North Korea. In addition, 
lists of proscribed entities and individuals are included in OFAC's 
list of Specially Designated Nationals and Blocked Persons. More 
information about these restrictions is available in the Foreign Assets 
Control regulations at 31 CFR chapter V and on OFAC's website at http://www.treas.gov/ofac.


25.702  [Amended]

    3. Amend section 25.702 by removing ``622-2520'' and adding ``622-
2490'' in its place.


25.1103  [Amended]

    4. Amend section 25.1103 in paragraph (a) by removing ``with a 
value exceeding $2,500''.

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


52.212-5  [Amended]

    5. Amend section 52.212-5 by redesignating paragraph (b)(20) as 
(b)(21) and redesignating paragraph (b)(21) as (b)(20), and in newly 
designated paragraph (b)(21) by removing ``13121,''.


52.213-4  [Amended]

    6. Amend section 52.213-4 in paragraph (a)(1)(ii) by removing 
``13121,''.
    7. Amend section 52.225-13 by revising the date of the clause and 
paragraphs (a) and (b) to read as follows:

[[Page 13081]]

52.225-13  Restrictions on Certain Foreign Purchases.

* * * * *

Restrictions on Certain Foreign Purchases (Date)

    (a) Except as authorized by the Office of Foreign Assets Control 
in the Department of the Treasury, the Contractor shall not acquire, 
for use in the performance of this contract, any supplies or 
services, if any Executive order administered by the Office of 
Foreign Assets Control, or the Foreign Assets Control regulations 
set forth at 31 CFR chapter V would prohibit such a transaction by a 
person subject to the jurisdiction of the United States.
    (b) Most transactions involving Cuba, Iran, Iraq, Libya, Sudan 
and the Taliban-controlled regions of Afghanistan are prohibited, as 
are most imports into the United States from North Korea. Lists of 
proscribed entities and individuals are included in OFAC's list of 
Specially Designated Nationals and Blocked Persons. More information 
about these restrictions is available in the Foreign Assets Control 
regulations at 31 CFR chapter V and on OFAC's website at http://www.treas.gov/ofac.
* * * * *
[FR Doc. 02-6515 Filed 3-19-02; 8:45 am]
BILLING CODE 6820-EP-P