[Federal Register Volume 70, Number 24 (Monday, February 7, 2005)]
[Rules and Regulations]
[Pages 6374-6375]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-2171]


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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: Final rule.

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SUMMARY: DoD has issued a final rule amending 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 is extended from 
May 31, 2005, to May 31, 2006.

EFFECTIVE DATE: February 7, 2005.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, Defense Acquisition 
Regulations Council, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0328; 
facsimile (703) 602-0350. Please cite DFARS Case 2004-D002.

SUPPLEMENTARY INFORMATION:

A. Background

    This final rule extends 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 prescription for use of the clause at DFARS 
252.225-7022, Restriction on Acquisition of Polyacrylonitrile (PAN) 
Carbon Fiber, is amended to require inclusion of the clause 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 aerospace industry requested the extension 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. In addition, the extension is consistent with Section 
832 of the National Defense Authorization Act for Fiscal Year 2005 
(Pub. L. 108-375), which requires a delay in phase-out of the 
restriction until DoD performs an assessment of the PAN carbon fiber 
industry and submits the resulting report to Congress.
    DoD published a proposed rule at 69 FR 35567 on June 25, 2004. DoD 
received no comments on the proposed rule. Therefore, DoD has adopted 
the proposed rule as a final rule without change.
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    DoD certifies that this final rule will not 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.

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,
Editor, Defense Acquisition Regulations System.

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Therefore, 48 CFR Part 225 is amended as follows:
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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

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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. * * *

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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

[[Page 6375]]

development (milestone B as defined in DoDI 5000.2).

[FR Doc. 05-2171 Filed 2-4-05; 8:45 am]
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