[Federal Register Volume 88, Number 138 (Thursday, July 20, 2023)]
[Rules and Regulations]
[Pages 46906-46907]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-15155]



[[Page 46906]]

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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Parts 225 and 252

[Docket DARS-2023-0026]
RIN 0750-AL78


Defense Federal Acquisition Regulation Supplement: Modification 
to the National Technology and Industrial Base (DFARS Case 2023-D005)

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 implement a section of the 
National Defense Authorization Act for Fiscal Year 2023 that adds New 
Zealand to the definition of the national technology and industrial 
base.

DATES: Effective July 20, 2023.

FOR FURTHER INFORMATION CONTACT: Kimberly Bass, telephone 703-717-3446.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD is amending the DFARS to implement section 851 of the National 
Defense Authorization Act (NDAA) for Fiscal Year (FY) 2023 (Pub. L. 
117-263), which adds New Zealand to the definition of the national 
technology and industrial base at 10 U.S.C. 4801. The definition 
already includes the United States, the United Kingdom of Great Britain 
and Northern Ireland, Australia, and Canada as the countries within 
which the activities of the national technology and industrial base are 
conducted. 10 U.S.C. 4864, Miscellaneous Limitations on the Procurement 
of Goods Other Than United States Goods, requires that DoD only procure 
certain items if the manufacturer of the items is part of the national 
technology and industrial base.
    This final rule modifies several sections in DFARS subpart 225.70, 
which implement the restrictions of 10 U.S.C. 4864, to add New Zealand 
to the list of countries from which certain items may be purchased. The 
rule also adds New Zealand to the countries listed in the solicitation 
provision at DFARS 252.225-7037, Evaluation of Offers for Air Circuit 
Breakers, and the contract clause at DFARS 252.225-7038, Restriction on 
Acquisition of Air Circuit Breakers.

II. 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 41 U.S.C. 1707, Publication of Proposed 
Regulations. Subsection (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, 
because this rule implements the section 851 changes to 10 U.S.C. 
4801(1) by merely adding New Zealand to the list of countries that 
includes the United States, the United Kingdom of Great Britain and 
Northern Ireland, Australia, and Canada as the countries within which 
the activities of the national technology and industrial base are 
conducted. This change does not have a significant effect beyond the 
internal operating procedures of the Government and does not have a 
significant cost or administrative impact on contractors or offerors.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold (SAT), for Commercial Products, Including Commercially 
Available Off-the-Shelf (COTS) Items, and for Commercial Services

    This final rule modifies one existing solicitation provision (DFARS 
252.225-7037) and one existing contract clause (DFARS 252.225-7038), 
which relate to implementation of the limitations of 10 U.S.C. 4864 
with regard to acquisition of air circuit breakers. This rule does not 
implement any new requirements, but adds New Zealand as a country from 
which items restricted by 10 U.S.C. 4864 may be purchased. It does not 
modify the applicability of the provision and clause to the acquisition 
of commercial services, and commercial products, including COTS items.

IV. 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.

V. Congressional Review Act

    As required by the Congressional Review Act (5 U.S.C. 801-808) 
before an interim or final rule takes effect, DoD will submit a copy of 
the interim or final rule with the form, Submission of Federal Rules 
under the Congressional Review Act, to the U.S. Senate, the U.S. House 
of Representatives, and the Comptroller General of the United States. A 
major rule under the Congressional Review Act cannot take effect until 
60 days after it is published in the Federal Register. The Office of 
Information and Regulatory Affairs has determined that this rule is not 
a major rule as defined by 5 U.S.C. 804.

VI. 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.

VII. 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 Parts 225 and 252

    Government procurement.

Jennifer D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.

    Therefore, 48 CFR parts 225 and 252 are amended as follows:

0
1. The authority citation for parts 225 and 252 continues to read as 
follows:

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

PART 225--FOREIGN ACQUISITION

0
 2. Revise section 225.7004-1 to read as follows:


225.7004-1  Restriction.

    In accordance with 10 U.S.C. 4864, do not acquire a multipassenger 
motor vehicle (bus) unless it is manufactured

[[Page 46907]]

in the United States, Australia, Canada, New Zealand, or the United 
Kingdom of Great Britain and Northern Ireland (United Kingdom).

0
3. Amend section 225.7004-3--
0
a. By revising paragraph (a);
0
b. In paragraph (b) by removing ``Canada,'' and ``Kingdommay'' and 
adding ``Canada, New Zealand,'' and ``Kingdom may'' in their places, 
respectively; and
0
c. In paragraph (c) by removing ``Canada,'' and adding ``Canada, New 
Zealand,'' in its place.
    The revision reads as follows:


225.7004-3  Exceptions.

* * * * *
    (a) Buses manufactured outside the United States, Australia, 
Canada, New Zealand, or the United Kingdom are needed for temporary use 
because buses manufactured in the United States, Australia, Canada, New 
Zealand, or the United Kingdom are not available to satisfy 
requirements that cannot be postponed. Such use may not, however, 
exceed the lead time required for acquisition and delivery of buses 
manufactured in the United States, Australia, Canada, New Zealand, or 
the United Kingdom.
* * * * *


225.7006-1  [Amended]

0
4. Amend section 225.7006-1 by removing ``Canada'' and adding ``Canada, 
New Zealand,'' in its place.


225.7008  [Amended]

0
5. Amend section 225.7008--
0
a. In paragraphs (b)(2) and (3) by removing ``or Canada,'' and adding 
``Canada, New Zealand,'' in its place; and
0
b. In paragraph (c) by removing ``Canadian,'' wherever it appears and 
adding ``Canadian, New Zealand,'' in its place.


225.7010-1  [Amended]

0
6. Amend section 225.7010-1 introductory text by removing ``Canada,'' 
and adding ``Canada, New Zealand,'' in its place.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES


252.225-7037  [Amended]

0
7. Amend section 252.225-7037--
0
a. By removing the clause date of ``(DEC 2018)'' and adding ``(JUL 
2023)'' in its place;
0
b. In paragraph (a) by removing ``Canada, or the United Kingdom'' and 
adding ``Canada, New Zealand, or the United Kingdom of Great Britain 
and Northern Ireland (United Kingdom)'' in its place; and
0
c. In paragraph (b) by removing ``itsoutlying areas, Australia, 
Canada,'' and adding ``its outlying areas, Australia, Canada, New 
Zealand,'' in its place.


252.225-7038  [Amended]

0
8. Amend section 252.225-7038--
0
a. By removing the clause date of ``(DEC 2018)'' and adding ``(JUL 
2023)'' in its place; and
0
b. In the clause text by removing ``Canada, or the United Kingdom'' and 
adding ``Canada, New Zealand, or the United Kingdom of Great Britain 
and Northern Ireland'' in its place.

[FR Doc. 2023-15155 Filed 7-19-23; 8:45 am]
 BILLING CODE 5001-06-P