[Federal Register Volume 71, Number 132 (Tuesday, July 11, 2006)]
[Notices]
[Pages 39076-39077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-10848]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System


Waiver of 10 U.S.C. 2534 for Certain Defense Items Produced in 
the United Kingdom

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Notice of waiver of 10 U.S.C. 2534 for certain defense items 
produced in the United Kingdom.

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SUMMARY: The Under Secretary of Defense (Acquisition, Technology, and 
Logistics) is waiving the limitation of 10 U.S.C. 2534 for certain 
defense items produced in the United Kingdom (UK). 10 U.S.C. 2534 
limits DoD procurement of certain items to sources in the national 
technology and industrial base. The waiver will permit procurement of 
items enumerated from sources in the UK, unless otherwise restricted by 
statute.

DATES: Effective Date: This waiver is effective for one year, beginning 
July 26, 2006.

FOR FURTHER INFORMATION CONTACT: Ms. Nancy Dowling, OUSD(AT&L), 
Director of Defense Procurement and Acquisition Policy, Program 
Acquisition and International Contracting, Room 5E581, 3060 Defense 
Pentagon, Washington, DC 20301-3060, telephone (703) 697-9352.

SUPPLEMENTARY INFORMATION: Subsection (a) of 10 U.S.C. 2534 provides 
that the Secretary of Defense may procure the items listed in that 
subsection only if the manufacturer of the item is part of the national 
technology and industrial base. Subsection (i) of 10 U.S.C. 2534 
authorizes the Secretary of Defense to exercise the waiver authority in 
subsection (d), on the basis of the applicability of paragraph (2) or 
(3) of that subsection, only if the waiver is made for a particular 
item listed in subsection (a) and for a particular foreign country. 
Subsection (d) authorizes a waiver if the Secretary determines that 
application of the limitation ``would impede the reciprocal procurement 
of defense items under a memorandum of understanding providing for 
reciprocal procurement of defense items'' and if he determines that 
``that country does not discriminate against defense items produced in 
the United States to a greater degree than the United States 
discriminates against defense items produced in that country.'' The 
Secretary of Defense has delegated the waiver authority of 10 U.S.C. 
2534(d) to the Under Secretary of Defense (Acquisition, Technology, and 
Logistics).
    DoD has had a Reciprocal Defense Procurement Memorandum of 
Understanding (MOU) with the UK since 1975, most recently renewed on 
December 16, 2004.
    The Under Secretary of Defense (Acquisition, Technology, and 
Logistics) finds that the UK does not discriminate against defense 
items produced in the United States to a greater degree than the United 
States discriminates against defense items produced in the UK, and

[[Page 39077]]

also finds that application of the limitation in 10 U.S.C. 2534 against 
defense items produced in the UK would impede the reciprocal 
procurement of defense items under the MOU.
    Under the authority of 10 U.S.C. 2534, the Under Secretary of 
Defense (Acquisition, Technology, and Logistics) has determined that 
application of the limitation of 10 U.S.C. 2534(a) to the procurement 
of any defense item produced in the UK that is listed below would 
impede the reciprocal procurement of defense items under the MOU with 
the UK.
    On the basis of the foregoing, the Under Secretary of Defense 
(Acquisition, Technology, and Logistics) is waiving the limitation in 
10 U.S.C. 2534(a) for procurements of any defense item listed below 
that is produced in the UK. This waiver applies only to the limitations 
in 10 U.S.C. 2534(a). It does not apply to any other limitation, 
including section 8016 of the DoD Appropriations Act for Fiscal Year 
2006 (Pub. L. 109-148). This waiver applies to procurements under 
solicitations issued during the period from July 26, 2006, to July 25, 
2007. Similar waivers have been granted since 1998, most recently in 
2005 (70 FR 37333, June 29, 2005). For contracts resulting from 
solicitations issued prior to August 4, 1998, this waiver applies to 
procurements of the defense items listed below under--
    (1) Subcontracts entered into during the period from July 26, 2006, 
to July 25, 2007, provided the prime contract is modified to provide 
the Government adequate consideration such as lower cost or improved 
performance; and
    (2) Options that are exercised during the period from July 26, 
2006, to July 25, 2007, if the option prices are adjusted for any 
reason other than the application of the waiver, and if the contract is 
modified to provide the Government adequate consideration such as lower 
cost or improved performance.

List of Items to Which This Waiver Applies

    1. Air circuit breakers.
    2. Welded shipboard anchor and mooring chain with a diameter of 
four inches or less.
    3. Gyrocompasses.
    4. Electronic navigation chart systems.
    5. Steering controls.
    6. Pumps.
    7. Propulsion and machinery control systems.
    8. Totally enclosed lifeboats.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.1
 [FR Doc. E6-10848 Filed 7-10-06; 8:45 am]
BILLING CODE 5001-08-P