[Federal Register Volume 79, Number 182 (Friday, September 19, 2014)]
[Proposed Rules]
[Pages 56333-56334]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22369]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 225

RIN 0750-AI36


Defense Federal Acquisition Regulation Supplement: Domestic 
Source Restrictions on Certain Naval Vessel Components (DFARS Case 
2014-D022)

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

ACTION: Proposed rule.

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SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to implement the statutory domestic 
source restrictions on acquisition of certain naval vessel components.

DATES: Comment date: Comments on the proposed rule should be submitted 
in writing to the address shown below on or before November 18, 2014, 
to be considered in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2014-D022, using 
any of the following methods:
     Regulations.gov: http://www.regulations.gov. Submit 
comments via the Federal eRulemaking portal by entering ``DFARS Case 
2014-D022'' under the heading ``Enter keyword or ID'' and selecting 
``Search.'' Select the link ``Submit a Comment'' that corresponds with 
``DFARS Case 2014-D022.'' Follow the instructions provided at the 
``Submit a Comment'' screen. Please include your name, company name (if 
any), and ``DFARS Case 2014-D022'' on your attached document.
     Email: [email protected]. Include DFARS Case 2014-D022 in 
the subject line of the message.
     Fax: 571-372-6094.
     Mail: Defense Acquisition Regulations System, Attn: Amy G. 
Williams, OUSD(AT&L)DPAP/DARS, Room 3B941, 3060 Defense Pentagon, 
Washington, DC 20301-3060.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To 
confirm receipt of your comment(s), please check www.regulations.gov, 
approximately two to three days after submission to verify posting 
(except allow 30 days for posting of comments submitted by mail).

FOR FURTHER INFORMATION CONTACT: Ms. Amy G. Williams, Defense 
Acquisition Regulations System, OUSD(AT&L)DPAP/DARS, Room 3B941, 3060 
Defense Pentagon, Washington, DC 20301-3060. Telephone 571-372-6106.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD is proposing to revise DFARS 225.7010 to implement the domestic 
source restrictions in 10 U.S.C. 2534 on gyrocompasses, electronic 
navigation chart systems, steering controls, pumps, propulsion and 
machinery control systems, and totally enclosed lifeboats, to the 
extent they are unique to marine applications.
    These restrictions are currently implemented in the acquisition 
regulations of the Defense Logistics Agency and the Department of the 
Navy, the two DoD components that acquire such naval vessel components. 
The restrictions are now being incorporated into the DFARS because they 
impact more than one DoD component.
    10 U.S.C. 2534 prohibits acquisition of these naval vessel 
components, unless they are manufactured in the United States or 
Canada, except for acquisitions that do not exceed the simplified 
acquisition threshold or acquisitions of spare or repair parts needed 
to support components for naval vessels manufactured outside the United 
States.
    The waiver criteria at DFARS 225.7008(a) apply to this restriction. 
The Under Secretary of Defense

[[Page 56334]]

(Acquisition, Technology, and Logistics) has waived this restriction 
for certain defense items manufactured in the United Kingdom, including 
these naval vessel components (see 79 FR 11770, dated March 3, 2014).
    10 U.S.C. 2534(h) prohibits the use of a contract clause or 
certification to implement this restriction.

II. 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 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.

III. Regulatory Flexibility Act

    DoD does not expect this rule to 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 this law has 
been implemented in the Defense Logistics Agency and Department of Navy 
regulations for many years, and moving the regulations to the DFARS 
will have no impact on the public. Therefore, an initial regulatory 
flexibility analysis has not been performed. DoD invites comments from 
small business concerns and other interested parties on the expected 
impact of this rule on small entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C 610 (DFARS Case 2014-D022), in 
correspondence.

IV. Paperwork Reduction Act

    The rule does not contain any information collection requirements 
that require the approval of the Office of Management and Budget under 
the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Part 225

    Government procurement.

Manuel Quinones,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR part 225 is proposed to be amended as follows:

PART 225--FOREIGN ACQUISITION

0
1. The authority citation for 48 CFR part 225 continues to read as 
follows:

    Authority: 41 U.S.C. 1303 and 48 CFR chapter 1.

0
2. Amend section 225.7008 by revising paragraph (b) to read as follows:


225.7008  Waiver of restrictions of 10 U.S.C. 2534.

* * * * *
    (b) In accordance with the provisions of paragraphs (a)(1)(i) 
through (iii) of this section, the USD(AT&L) has waived the 
restrictions of 10 U.S.C. 2534(a) for certain items manufactured in the 
United Kingdom, including air circuit breakers for naval vessels (see 
225.7006) and the naval vessel components listed at 225.7010-1.
0
3. Add section 225.7010 to read as follows:


225.7010  Restriction on certain naval vessel components.

0
4. Add sections 225.7010-1, 225.7010-2, 225.7010-3, and 225.7010-4 to 
read as follows:


225.7010-1  Restriction.

    In accordance with 10 U.S.C. 2534, do not acquire the following 
components of naval vessels, to the extent they are unique to marine 
applications, unless manufactured in the United States or Canada:
    (a) Gyrocompasses.
    (b) Electronic navigation chart systems.
    (c) Steering controls.
    (d) Pumps.
    (e) Propulsion and machinery control systems.
    (f) Totally enclosed lifeboats.


225.7010-2  Exceptions.

    This restriction does not apply to--
    (a) Contracts of subcontracts that do not exceed the simplified 
acquisition threshold; or
    (b) Acquisition of spare or repair parts needed to support 
components for naval vessels manufactured outside the United States. 
Support includes the purchase of spare gyrocompasses, electronic 
navigation chart systems, steering controls, pumps, propulsion and 
machinery control systems, or totally enclosed lifeboats, when those 
from alternate sources are not interchangeable.


225.7010-3   Waiver.

    (a) The waiver criteria at 225.7008(a) apply to this restriction.
    (b) The Under Secretary of Defense (Acquisition, Technology, and 
Logistics) has waived the restriction of 10 U.S.C. 2534 for certain 
items manufactured in the United Kingdom, including the items listed in 
section 225.7010-1. See 225.7008.


225.7010-4   Implementation.

    (a) 10 U.S.C. 2534(h) prohibits the use of contract clauses or 
certifications to implement this restriction.
    (b) Agencies shall accomplish implementation of this restriction 
through use of management and oversight techniques that achieve the 
objectives of this section without imposing a significant management 
burden on the Government or the contractor involved.

[FR Doc. 2014-22369 Filed 9-18-14; 8:45 am]
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