[Federal Register Volume 72, Number 13 (Monday, January 22, 2007)]
[Rules and Regulations]
[Pages 2637-2638]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-731]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 225 and 252

RIN 0750-AF54


Defense Federal Acquisition Regulation Supplement; Berry 
Amendment Restrictions--Clothing Materials and Components Covered 
(DFARS Case 2006-D031)

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

ACTION: Interim rule with request for comments.

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SUMMARY: DoD has issued an interim rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to implement Section 833(b) 
of the National Defense Authorization Act for Fiscal Year 2006. Section 
833(b) expands the foreign source restrictions applicable to the 
acquisition of clothing to also include clothing materials and 
components, other than sensors, electronics, or other items added to, 
and not normally associated with, clothing and the materials and 
components thereof.

DATES: Effective date: January 22, 2007.
    Comment date: Comments on the interim rule should be submitted in 
writing to the address shown below on or before March 23, 2007, to be 
considered in the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2006-D031, 
using any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     E-mail: [email protected]. Include DFARS Case 2006-D031 in the 
subject line of the message.
     Fax: (703) 602-0350.
     Mail: Defense Acquisition Regulations System, Attn: Ms. 
Amy Williams, OUSD (AT&L) DPAP (DARS), IMD 3C132, 3062 Defense 
Pentagon, Washington, DC 20301-3062.
     Hand Delivery/Courier: Defense Acquisition Regulations 
System, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 
22202-3402.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided.

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

SUPPLEMENTARY INFORMATION: 

A. Background

    This interim rule amends DFARS 225.7002-1 and the corresponding 
contract clause at 252.225-7012 to implement Section 833(b) of the 
National Defense Authorization Act for Fiscal Year 2006 (Pub. L. 109-
163). Section 833(b) amended 10 U.S.C. 2533a (the Berry Amendment) to 
expand the foreign source restrictions applicable to the acquisition of 
clothing to also include clothing materials and components, other than 
sensors, electronics, or other items added to, and not normally 
associated with, clothing and the materials and components thereof. The 
rule also includes examples of items subject to the restrictions.
    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 has prepared an initial regulatory flexibility analysis 
consistent with 5 U.S.C. 603. A copy of the analysis may be obtained 
from the point of contact specified herein. The analysis is summarized 
as follows:
    The objective of the rule is to provide for the acquisition of 
clothing, and clothing materials and components, from domestic sources 
in accordance with statutory requirements. The legal basis for the rule 
is 10 U.S.C. 2533a (the Berry Amendment), as amended by Section 833(b) 
of the National Defense Authorization Act for Fiscal Year 2006 (Pub. L. 
109-163). The rule will apply to entities interested in receiving DoD 
contracts or subcontracts for the acquisition of clothing. Based on 
data generated from the DD Form 350, Individual Contracting Action 
Report, DoD awarded 6,072 contract actions relating to the acquisition 
of clothing items during fiscal year 2005. These actions had a total 
dollar value of $1.868 billion and involved 1,110 contractors. Of these 
actions, 4,087 totaling $.81 billion involved 906 contractors that were 
small business concerns. This rule may have a positive impact on small 
businesses that manufacture clothing materials and components, by 
reducing foreign competition. However, the rule could have a negative 
impact on small businesses that have been using foreign components in 
the manufacture of clothing products.
    DoD invites comments from small businesses and other interested 
parties. DoD also will consider comments from small entities concerning 
the affected DFARS subparts in accordance with 5 U.S.C. 610. Such 
comments should be submitted separately and should cite DFARS Case 
2006-D031.

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.

D. Determination To Issue an Interim Rule

    A determination has been made under the authority of the Secretary 
of Defense that urgent and compelling reasons exist to publish an 
interim rule prior to affording the public an opportunity to comment. 
This interim rule implements Section 833(b) of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163). Section 
833(b) expands the foreign source restrictions applicable to the 
acquisition of clothing, to also include clothing materials and 
components, other than sensors, electronics, or other items added to, 
and not normally associated with, clothing and the materials and 
components thereof. Section 833(b) became effective upon enactment on 
January 6, 2006. Comments received in response to this interim rule 
will be considered in the formation of the final rule.

[[Page 2638]]

List of Subjects in 48 CFR Parts 225 and 252

    Government procurement.

Michele P. Peterson,
Editor, Defense Acquisition Regulations System.

0
Therefore, 48 CFR parts 225 and 252 are amended as follows:
0
1. The authority citation for 48 CFR parts 225 and 252 continues to 
read as follows:

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

PART 225--FOREIGN ACQUISITION

0
2. Section 225.7002-1 is amended by revising paragraph (a)(2) to read 
as follows:


225.7002-1  Restrictions.

* * * * *
    (a) * * *
    (2) Clothing and the materials and components thereof, other than 
sensors, electronics, or other items added to, and not normally 
associated with, clothing and the materials and components thereof. 
Clothing includes items such as outerwear, headwear, underwear, 
nightwear, footwear, hosiery, handwear, belts, badges, and insignia. 
For additional guidance and examples, see PGI 225.7002-1(a)(2).
* * * * *

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.212-7001  [Amended]

0
3. Section 252.212-7001 is amended as follows:
0
a. By revising the clause date to read ``(JAN 2007)''; and
0
b. In paragraph (b)(5) by removing ``JUN 2004'' and adding in its place 
``JAN 2007''.

0
4. Section 252.225-7012 is amended by revising the clause date and 
paragraph (b)(2) to read as follows:


252.225-7012  Preference for Certain Domestic Commodities.

* * * * *

Preference for Certain Domestic Commodities (JAN 2007)

* * * * *
    (b) * * *
    (2) Clothing and the materials and components thereof, other than 
sensors, electronics, or other items added to, and not normally 
associated with, clothing and the materials and components thereof. 
Clothing includes items such as outerwear, headwear, underwear, 
nightwear, footwear, hosiery, handwear, belts, badges, and insignia.
* * * * *
[FR Doc. E7-731 Filed 1-19-07; 8:45 am]
BILLING CODE 5001-08-P