[Federal Register Volume 69, Number 122 (Friday, June 25, 2004)]
[Proposed Rules]
[Pages 35567-35568]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-14339]


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DEPARTMENT OF DEFENSE

48 CFR Part 225

[DFARS Case 2004-D002]


Defense Federal Acquisition Regulation Supplement; 
Polyacrylonitrile Carbon Fiber--Restriction to Domestic Sources

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to extend the ending date for phasing out 
domestic source restrictions on the acquisition of polyacrylonitrile 
(PAN) carbon fiber. The ending date will be extended from May 31, 2005, 
to May 31, 2006.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before August 24, 2004, to be considered 
in the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2004-D002, 
using any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Defense Acquisition Regulations Web site: http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm pubcomm. Follow the 
instructions for submitting comments.
     E-mail: [email protected]. Include DFARS Case 2004-D002 in the 
subject line of the message.
     Fax: (703) 602-0350.
     Mail: Defense Acquisition Regulations Council, Attn: Ms. 
Amy Williams, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense Pentagon, 
Washington, DC 20301-3062.
     Hand Delivery/Courier: Defense Acquisition Regulations 
Council, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 
22202-3402.
    All comments received will be posted to http://emissary.acq.osd.mil/dar/dfars.nsf nsf.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, (703) 602-0328.

SUPPLEMENTARY INFORMATION:

A. Background

    This rule proposes amendments to DFARS Subpart 225.71 to extend the 
ending date for phasing out domestic source restrictions on the 
acquisition of PAN carbon fiber from May 31, 2005, to May 31, 2006. The 
clause at DFARS 252.225-7022, Restriction on Acquisition of 
Polyacrylonitrile (PAN) Carbon Fiber, will be required in solicitations 
and contracts for major systems issued on or before May 31, 2006, if 
the system is not yet in development and demonstration.
    The current phase-out schedule was added to the DFARS on December 
13, 2000 (65 FR 77832). The aerospace industry has requested an 
extension of the phase-out in order to provide U.S. companies 
sufficient time to maintain the industrial and technological capability 
to support a critical material used in advanced aerospace weapons 
programs. DoD considers a one-year extension to be appropriate at this 
time.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

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 there 
are no known domestic small business manufacturers of PAN carbon fiber. 
Therefore, DoD has not performed an initial regulatory flexibility 
analysis. DoD invites comments from small businesses and other 
interested parties. DoD also will consider comments from small entities 
concerning the affected DFARS subpart in accordance with 5 U.S.C. 610. 
Such

[[Page 35568]]

comments should be submitted separately and should cite DFARS Case 
2004-D002.

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 Part 225

    Government procurement.

Michele P. Peterson,
 Executive Editor, Defense Acquisition Regulations Council.
    Therefore, DoD proposes to amend 48 CFR part 225 as follows:
    1. The authority citation for 48 CFR part 225 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 225--FOREIGN ACQUISITION

    2. Section 225.7103-1 is amended by revising the second sentence to 
read as follows:


225.7103-1  Policy.

    * * * DoD is phasing out the restrictions over the period ending 
May 31, 2006. * * *
    3. Section 225.7103-3 is revised to read as follows:


225.7103-3  Contract clause.

    Use the clause at 252.225-7022, Restriction on Acquisition of 
Polyacrylonitrile (PAN) Carbon Fiber, in solicitations and contracts 
for major systems issued on or before May 31, 2006, if the system is 
not yet in engineering and manufacturing development (milestone B as 
defined in DoDI 5000.2).

[FR Doc. 04-14339 Filed 6-24-04; 8:45 am]
BILLING CODE 5001-08-P