[Federal Register Volume 83, Number 21 (Wednesday, January 31, 2018)]
[Rules and Regulations]
[Pages 4447-4449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-01780]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 252

[Docket DARS-2017-0019]
RIN 0750-AJ68


Defense Federal Acquisition Regulation Supplement: State Sponsor 
of Terrorism--North Korea (DFARS Case 2018-D004)

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

[[Page 4448]]

Acquisition Regulation Supplement (DFARS) to implement the designation 
by the Department of State of North Korea as a state sponsor of 
terrorism.

DATES: Effective January 31, 2018.

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

SUPPLEMENTARY INFORMATION: 

I. Background

    This final rule implements the November 20, 2017, designation by 
the Department of State of North Korea as a state sponsor of terrorism, 
in accordance with section 6(j)(1)(A) of the Export Administration Act 
of 1979. A state sponsor of terrorism is a country, the government of 
which has repeatedly provided support for acts of international 
terrorism. The Department of State previously designated North Korea as 
a state sponsor of terrorism in January 1988, but rescinded the 
designation in October 2008. Consistent with the November 20, 2017, 
action, North Korea is added to the list of countries that are state 
sponsors of terrorism in the definition of ``state sponsor of 
terrorism'' in paragraph (a) of the provisions at DFARS 252.225-7049, 
Prohibition on Acquisition of Commercial Satellite Services from 
Certain Foreign Entities--Representation; and DFARS 252.225-7050, 
Disclosure of Ownership or Control by the Government of a Country that 
is a State Sponsor of Terrorism. The provision at DFARS 252.225-7050 
implements 10 U.S.C. 2327, which prohibits DoD from entering into a 
contract with a firm that is owned or controlled by the government of a 
country that is a state sponsor of terrorism. The provision at 252.225-
7049 implements 10 U.S.C. 2279, which restricts acquisitions of 
commercial satellite services from any entity--
     Owned by the government of a covered foreign country 
(China, North Korea, or any state sponsor of terrorism); or
     Planning or expected to provide or use launch or other 
satellite services under the contract from a covered foreign country.

II. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    This rule only updates the list of countries that are state 
sponsors of terrorism in the definition of ``state sponsors of 
terrorism'' in paragraph (a) of the DFARS provisions 252.225-7049, 
Prohibition on Acquisition of Commercial Satellite Services from 
Certain Foreign Entities--Representation; and DFARS 252.225-7050, 
Disclosure of Ownership or Control by the Government of a Country that 
is a State Sponsor of Terrorism. This revision does not impact use of 
clauses, their applicability to contracts or subcontracts valued at or 
below the simplified acquisition threshold, or their applicability to 
contracts or subcontracts for the acquisition of commercial items.

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.) 12866, Regulatory Planning and Review, and 
E.O. 13563, Improving Regulation and Regulatory Review, 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 a significant regulatory action and, therefore, 
was 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. Executive Order 13771

    This rule is not subject to the requirements of E.O. 13771, because 
the rule is issued with respect to a national security function of the 
United States.

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

    The statute that applies to the publication of the Federal 
Acquisition Regulation (FAR) is codified at Title 41 of the United 
States Code (formerly known as the Office of Federal Procurement Policy 
Act). Specifically, 41 U.S.C 1707(a)(1) 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, 
because it only adds North Korea to the list of countries that fall 
within the DFARS definition of ``state sponsors of terrorism,'' 
consistent with the November 20, 2017, designation of the country by 
the Secretary of State. These requirements affect only the internal 
operating procedures of the Government.

VI. Regulatory Flexibility Act

    Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule under 41 
U.S.C. 1707(a)(1) (see section V. of this preamble), the analytical 
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
are not applicable. Accordingly, no regulatory flexibility analysis is 
required and none has been prepared.

VII. Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) does apply. 
However, the changes to these DFARS provisions, do not impose 
additional information collection requirements or change the burden 
under two currently approved collections--OMB Control Number 0704-0525, 
entitled ``Foreign Commercial Satellite Services,'' and OMB Control 
Number 0704-0187, entitled ``Information Collection in Support of the 
DoD Acquisition Process (Various Miscellaneous Requirements).''

List of Subjects in 48 CFR Part 252

    Government procurement.

Jennifer L. Hawes,
Regulatory Control Officer, Defense Acquisition Regulations System.

    Therefore, 48 CFR part 252 is amended as follows:

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
1. The authority citation for 48 CFR part 252 continues to read as 
follows:

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


252.225-7049   [Amended]

0
2. Section 252.225-7049 is amended by--
0
a. In the clause heading, removing the date ``(OCT 2015)'' and adding 
``(JAN 2018)'' in its place; and
0
b. In paragraph (a), the definition of ``State sponsor of terrorism''--
0
i. Removing ``2405(j)(i)(A))'' and adding ``2405(j)(1)(A))'' in its 
place; and
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ii. Adding, after ``Iran,'', the country of ``North Korea''.


252.225-7050   [Amended]

0
3. Section 252.225-7050 is amended by--

[[Page 4449]]

0
a. In the clause heading, removing the date ``(OCT 2015)'' and adding 
``(JAN 2018)'' in its place; and
0
b. In paragraph (a), the definition of ``State sponsor of terrorism'', 
adding after ``Iran,'', the country of ``North Korea''.

[FR Doc. 2018-01780 Filed 1-30-18; 8:45 am]
 BILLING CODE 5001-06-P