[Federal Register Volume 77, Number 126 (Friday, June 29, 2012)]
[Rules and Regulations]
[Pages 38736-38738]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-15564]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 225 and 252

RIN 0750-AH75


Defense Federal Acquisition Regulation Supplement: New Qualifying 
Country--Czech Republic (DFARS Case 2012-D043)

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

ACTION: Final rule.

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SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to add the Czech Republic as 
a qualifying country.

DATES: Effective date: June 29, 2012.

FOR FURTHER INFORMATION CONTACT: Ms. Amy G. Williams, telephone 571-
372-6106.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD is amending the DFARS to add the Czech Republic as a qualifying 
country. On April 18, 2012, the Secretary of Defense signed a new 
reciprocal defense procurement agreement with the Czech Minister of 
Defense. The agreement removes discriminatory barriers to procurements 
of supplies and services produced by industrial enterprises of the 
other country to the extent mutually beneficial and consistent with 
national laws, regulations, policies, and international obligations. 
The agreement does not cover construction or construction material.

II. Publication of This Final Rule for Public Comment Is Not Required 
by Statute

    ``Publication of proposed regulations'', 41 U.S.C. 1707, is the 
statute which applies to the publication of the Federal Acquisition 
Regulation. Paragraph (a)(1) of the statute requires that a procurement 
policy, regulation, procedure, or form (including an amendment or 
modification thereof) must be published for public comment if it 
relates to the expenditure of appropriated funds, and has either a 
significant effect beyond the internal operating procedures of the 
agency issuing the policy, regulation, procedure, or form, or has a 
significant cost or administrative impact on contractors or offerors. 
This final rule is not required to be published for public comment. 
Adding the Czech Republic to the list of 21 other countries that have 
similar reciprocal defense procurement agreements with DoD does not 
alter the substantive meaning of the basic DoD policy on contracting 
with qualifying country sources. Accordingly, the change does not 
constitute a significant DFARS revision within the meaning of FAR 
1.501-1, does not have a significant effect beyond the internal 
operating procedures of DoD, and will not have a significant cost or 
administrative impact on contractors or offerors.

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs

[[Page 38737]]

and benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This is not a significant regulatory action and, 
therefore, was not subject to review under section 6(b) of E.O. 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

IV. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule because 
this final rule does not constitute a significant DFARS revision within 
the meaning of FAR 1.501-1, and 41 U.S.C. 1707 does not require 
publication for public comment.

V. Paperwork Reduction Act

    This rule affects the certification and information collection 
requirements in the provisions at DFARS 252.225-7000, 252.225-7020, 
currently approved under OMB Control Number 0704-0229, titled DFARS 
Part 225, Foreign Acquisition, and Associated Clauses, in the amount of 
57,235 hours, in accordance with the Paperwork Reduction Act (44 U.S.C. 
chapter 35). The impact, however, is negligible, because it merely 
shifts the category under which items from the Czech Republic must be 
listed.

List of Subjects in 48 CFR Parts 225 and 252

    Government procurement.

Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.

    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. 1303 and 48 CFR chapter 1.

PART 225--FOREIGN ACQUISITION


225.003  [Amended]

0
2. Amend section 225.003 in the definition ``Qualifying country'', 
paragraph (10), by adding ``Czech Republic'' in alphabetical order.


225.872-1  [Amended]

0
3. Amend section 225.872-1, paragraph (a), by adding ``Czech Republic'' 
in alphabetical order.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.212-7001  [Amended]

0
4. Amend section 252.212-7001 in paragraph (b)(12) by removing ``(MAY 
2012)'' and adding ``(JUN 2012)'' in its place.


252.225-7001  [Amended]

0
5. Amend section 252.225-7001, paragraph (a), definition of 
``Qualifying country,'' by adding ``Czech Republic'' in alphabetical 
order.

0
6. Amend section 252.225-7002 by removing the clause date ``(APR 
2003)'' and adding ``(JUN 2012)'' in its place and revising paragraph 
(a) to read as follows:


252.225-7002  Qualifying Country Sources as Subcontractors.

* * * * *
    (a) Definition. Qualifying country, as used in this clause, means a 
country with a reciprocal defense procurement memorandum of 
understanding or international agreement with the United States in 
which both countries agree to remove barriers to purchases of supplies 
produced in the other country or services performed by sources of the 
other country, and the memorandum or agreement complies, where 
applicable, with the requirements of section 36 of the Arms Export 
Control Act (22 U.S.C. 2776) and with 10 U.S.C. 2457. Accordingly, the 
following are qualifying countries:

Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Finland
France
Germany
Greece
Israel
Italy
Luxembourg
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland
* * * * *


252.225-7012  [Amended]

0
7. Amend section 252.225-7012 in paragraph (a)(3) by adding ``Czech 
Republic'' in alphabetical order.

0
8. Amend section 252.225-7017 by removing the clause date ``(MAY 
2012)'' and adding ``(JUN 2012)'' in its place and by revising the 
definition of ``Qualifying country,'' in paragraph (a) to read as 
follows:


252.225-7017  Photovoltaic Devices.

* * * * *
    (a) * * *
    Qualifying country means a country with a reciprocal defense 
procurement memorandum of understanding or international agreement with 
the United States in which both countries agree to remove barriers to 
purchases of supplies produced in the other country or services 
performed by sources of the other country, and the memorandum or 
agreement complies, where applicable, with the requirements of section 
36 of the Arms Export Control Act (22 U.S.C. 2776) and with 10 U.S.C. 
2457. Accordingly, the following are qualifying countries:

Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Finland
France
Germany
Greece
Israel
Italy
Luxembourg
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland
* * * * *


252.225-7021  [Amended]

0
9. Amend section 252.225-7021, paragraph (a), definition of 
``Qualifying country,'' by adding ``Czech Republic'' in alphabetical 
order.

0
10. Amend section 252.225-7036 by revising the definition of 
``Qualifying country,'' in paragraph (a) to read as follows:


252.225-7036  Buy American--Free Trade Agreements--Balance of Payments 
Program.

* * * * *
    (a) * * *
    ``Qualifying country'' means a country with a reciprocal defense 
procurement memorandum of understanding or international agreement with 
the United

[[Page 38738]]

States in which both countries agree to remove barriers to purchases of 
supplies produced in the other country or services performed by sources 
of the other country, and the memorandum or agreement complies, where 
applicable, with the requirements of section 36 of the Arms Export 
Control Act (22 U.S.C. 2776) and with 10 U.S.C. 2457. Accordingly, the 
following are qualifying countries:

Australia
Austria
Belgium
Canada
Czech Republic
Denmark
Egypt
Finland
France
Germany
Greece
Israel
Italy
Luxembourg
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland
* * * * *

[FR Doc. 2012-15564 Filed 6-28-12; 8:45 am]
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