[Federal Register Volume 67, Number 218 (Tuesday, November 12, 2002)]
[Proposed Rules]
[Page 68551]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-28542]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 1825

RIN 2700-AC33


Trade Agreements Act--Exception for U.S.-Made End Products

AGENCY: National Aeronautics and Space Administration.

ACTION: Proposed rule.

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SUMMARY: NASA is proposing to amend the NASA FAR Supplement (NFS) to 
implement the determination of the Assistant Administrator for 
Procurement that, for procurements subject to the Trade Agreements Act, 
it would be inconsistent with the public interest to apply the Buy 
American Act for U.S.-made end products that are substantially 
transformed in the United States.

DATES: Comments should be submitted on or before January 13, 2003.

ADDRESSES: Interested parties should submit written comments to Patrick 
Flynn, NASA Headquarters, Office of Procurement, Contract Management 
Division (Code HK), Washington, DC 20546. Comments may also be 
submitted by e-mail to [email protected].

FOR FURTHER INFORMATION CONTACT: Patrick Flynn, (202) 358-0460; e-mail: 
[email protected].

SUPPLEMENTARY INFORMATION:

A. Background

    On September 13, 2002, the Assistant Administrator for Procurement 
determined that, for procurements subject to the Trade Agreements Act, 
it would be inconsistent with the public interest to apply the Buy 
American Act to U.S.-made end products that are substantially 
transformed in the United Sates. The September 13, 2002, determination 
is consistent with Federal Acquisition Regulation policy and the 
Department of Defense policy with regard to the treatment of U.S.-made 
end products.
    This proposed rule implements the September 13, 2002, 
determination. This proposed rule will simplify evaluation of offers in 
acquisitions subject to the Trade Agreements Act, because it will no 
longer be necessary to determine if a U.S.-made end product is also a 
domestic end product, i.e., the cost of domestic components exceeds the 
cost of all components by more than 50 percent.
    This proposed rule is not subject to Office of Management and 
Budget review under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    This proposed rule is not expected to have a significant economic 
impact on a substantial number of small entities with the meaning of 
the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because NASA has 
few acquisitions subject to the Trade Agreements Act in which small 
businesses proposing domestic end products have received a percent 
price evaluation preference over offers of U.S.-made end products for 
which the cost of foreign components exceeds the cost of domestic 
components by 50 percent or more.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes do 
not impose any new recordkeeping or information collection requirements 
which require the approval of the Office of Management and Budget under 
44 U.S.C. 3501, et seq. This proposed rule would eliminate the 
requirement for offerors to track and document the origin of components 
of U.S.-made end products in acquisitions subject to the Trade 
Agreements Act in order to comply with the FAR.

List of Subjects in 48 CFR Part 1825

    Government procurement.

Tom Luedtke,
Assistant Administrator for Procurement.

    Accordingly, 48 CFR part 1825 is amended as follows:

    1. The authority citation for 48 CFR Part 1825 continues to read as 
follows:

    Authority: 42 U.S.C. 2473(c)(1)

PART 1825--FOREIGN ACQUISITION


1825.103  [Amended]

    2. Amend section 1825.103 by adding paragraph (a)(iii) to read as 
follows:


1825.103  Exceptions.

    (a) * * *
    (iii) The Assistant Administrator for Procurement has determined 
that for procurements subject to the Trade Agreements Act, it would be 
inconsistent with the public interest to apply the Buy American Act to 
U.S.-made end products that are substantially transformed in the United 
States.


1825.1101  [Amended] (NASA supplements paragraph (c)(1))

    3. Amend section 1825.1101 by adding paragraph (c)(1) to read as 
follows:


1825.1101  Acquisition of supplies.

    (c)(1) NASA has determined that the restrictions of the Buy 
American Act are not applicable to U.S.-made end products.
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[FR Doc. 02-28542 Filed 11-8-02; 8:45 am]
BILLING CODE 7510-01-P