[Federal Register Volume 70, Number 168 (Wednesday, August 31, 2005)]
[Pages 51757-51758]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-17348]



Negotiation of a Reciprocal Defense Procurement Memorandum of 
Understanding With Argentina

AGENCY: Department of Defense (DoD).

ACTION: Request for industry feedback regarding experience in public 
(defense) procurements conducted by Argentina.


SUMMARY: DoD is commencing negotiation of a Reciprocal Defense 
Procurement Memorandum of Understanding (MOU) with Argentina. DoD is 
soliciting input from U.S. industry that has had experience

[[Page 51758]]

participating in public defense procurements conducted by or on behalf 
of the Argentine Ministry of Defense or Armed Forces. The contemplated 
MOU would involve reciprocal waivers of buy-national laws by each 
country. This would mean that Argentina would be added to the list of 
``qualifying countries'' in the Defense Federal Acquisition Regulation 
Supplement (DFARS) and that U.S. products and services would be exempt 
from ``Buy Argentine'' laws applicable to procurements by the Argentine 
Ministry of Defense and Armed Forces.

DATES: Comments must be received by September 30, 2005.

ADDRESSES: You may submit comments to Director, Defense Procurement and 
Acquisition Policy, 3060 Defense Pentagon, Attn: Mr. Daniel C. Nielsen, 
Washington, DC 20301-3060; or by e-mail to [email protected].

Director of Defense Procurement and Acquisition Policy, Program 
Acquisition and International Contracting, Room 5E581, 3060 Defense 
Pentagon, Washington, DC 20301-3060; telephone (703) 697-9351.

SUPPLEMENTARY INFORMATION: The Reciprocal Defense Procurement MOUs DoD 
has with 21 countries are signed at the level of the Secretary of 
Defense and his counterpart. The purpose of these MOUs is to promote 
rationalization, standardization, and interoperability of defense 
equipment with allies and friendly governments. It provides a framework 
for ongoing communication regarding market access and procurement 
matters that affect effective defense cooperation. Based on the MOU, 
each country affords the other certain benefits on a reciprocal basis, 
consistent with national laws and regulations. For 19 of the 21 MOU 
countries, these include evaluation of offers without applying price 
differentials under ``Buy National'' laws (e.g., the Buy American Act), 
and making provision for duty-free certificates.
    Argentina was designated a Major Non-NATO Ally by the United States 
in January 1998, in recognition of its contributions to international 
security and peacekeeping.
    The countries with which DoD has Reciprocal Defense Procurement 
MOUs are identified in DFARS 225.872-1. Should an MOU be concluded with 
Argentina, Argentina would be added to the list of qualifying 
countries. If, based on and in conjunction with the MOU, DoD determines 
that it would be inconsistent with the public interest to apply the 
restrictions of the Buy American Act to the acquisition of Argentine 
defense equipment and supplies, Argentina would be listed in DFARS 
225.872-1(a). If a determination will be made on a purchase-by-purchase 
basis, Argentina would be listed in DFARS 225.872-1(b).
    MOUs generally include language by which the parties agree that 
their procurements will be conducted in accordance with certain 
implementing procedures. These procedures include publication of 
notices of proposed purchases; the content and availability of 
solicitations for proposed purchases; notification to each unsuccessful 
offeror; feedback, upon request, to unsuccessful offerors concerning 
the reasons they were not allowed to participate in a procurement or 
were not awarded a contract; and providing for the hearing and review 
of complaints arising in connection with any phase of the procurement 
process to ensure that, to the extent possible, complaints are 
equitably and expeditiously resolved between an offeror and the 
procuring activity.
    While DoD has evaluated Argentine laws and regulations regarding 
public procurements, DoD would benefit from knowledge of U.S. industry 
experience in participating in Argentine public defense procurements. 
We are, therefore, asking U.S. firms that have participated or 
attempted to participate in procurements by or on behalf of Argentina's 
Ministry of Defense or Armed Forces to let us know if the procurements 
were conducted in accordance with published procedures with fairness 
and due process, and if not, the nature of the problems encountered.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
[FR Doc. 05-17348 Filed 8-30-05; 8:45 am]