[Federal Register Volume 89, Number 142 (Wednesday, July 24, 2024)]
[Proposed Rules]
[Pages 59877-59881]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15559]


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DEPARTMENT OF HOMELAND SECURITY

48 CFR Parts 3025 and 3052

[Docket No. DHS-2024-0022]
RIN 1601-AB13


Homeland Security Acquisition Regulation, Restrictions on Foreign 
Acquisition Update (HSAR Case 2024-002)

AGENCY: Office of the Chief Procurement Officer, Department of Homeland 
Security (DHS).

ACTION: Proposed rule.

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SUMMARY: DHS is proposing to amend the Homeland Security Acquisition 
Regulation (HSAR) provisions that relate to the Kissell Amendment, a 
section of the American Recovery and Reinvestment Act of 2009 that 
deals with the acquisition of certain clothing, canvas or textile 
products and natural and synthetic fabrics. DHS believes these proposed 
changes would help reduce confusion and provide clarity to the 
requirements under the Kissell Amendment.

DATES: Comments on the proposed rule should be submitted in writing to 
one of the addresses shown below on or before September 23, 2024, to be 
considered in the formation of the final rule.

ADDRESSES: Submit comments identified by HSAR Case 2024-002, 
Restrictions on Foreign Acquisition Update, using any of the following 
methods:
     Regulations.gov: http://www.regulations.gov.
    Submit comments via the Federal eRulemaking portal by entering 
``HSAR Case 2024-002'' under the heading ``Enter Keyword or ID'' and 
select ``Search.'' Select the link ``Submit a Comment'' that 
corresponds with ``HSAR Case 2024-002.'' Follow the instructions 
provided at the ``Submit a Comment'' screen. Please include your name, 
company name (if any), and ``HSAR Case 2024-002'' on your attached 
document.
     Fax: (202) 447-0520.
     Mail: Department of Homeland Security, Office of the Chief 
Procurement Officer, MS 0080, ATTN: Ms. Nancy Harvey, 6595 Springfield 
Center Dr., Springfield, VA 20598-0080.
    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: Nancy Harvey, Department of Homeland 
Security, Office of the Chief Procurement Officer, Acquisition Policy 
and Legislation, at (202) 282-8000 or email at [email protected]. Include 
HSAR Case 2024-002 in the subject line.

SUPPLEMENTARY INFORMATION:

I. Background

    The Buy American Act of 1933, as amended (BAA), addresses 
preferences in Federal procurement.\1\ The BAA provides a preference 
for the purchase of domestic supplies (or domestic end products) and 
domestic construction materials.\2\
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    \1\ See 41 U.S.C. 8301-8305.
    \2\ See e.g., 41 U.S.C. 8302.
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    In 2009, the American Recovery and Reinvestment Act of 2009 
(Recovery Act), was enacted.\3\ Section 604 of the Recovery Act is 
also, known as the Kissell Amendment.\4\ The Kissell Amendment 
requires, with limited exceptions, that funds appropriated or otherwise 
available to DHS may not be used for the procurement of certain 
textiles, clothing and footwear, if that item is directly related to 
the national security interests of the United States, unless the item 
is grown, reprocessed, reused, or produced in the United States.\5\ One 
of the exceptions is a De Minimis Exception, which allows the Secretary 
of Homeland Security to accept delivery of the aforementioned textiles, 
clothing and footwear ``that contain non-compliant fibers if the total 
value of non-compliant fibers contained in the end item does not exceed 
10 percent of the total purchase price of the end item.'' \6\
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    \3\ See Public Law 111-5, 123 Stat. 115, 165-166 (Feb. 17, 
2009).
    \4\ Section 604 of the Recovery Act is codified at 6 U.S.C. 
453b.
    \5\ See 6 U.S.C. 453b(a)-(g).
    \6\ See 6 U.S.C. 453b(d).
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    The Kissel Amendment further requires DHS to apply it in a manner 
consistent with United States obligations under international 
agreements.\7\ As DHS has explained in prior notices, this includes 
free trade agreements and the World Trade Organization Agreement on 
Government Procurement.\8\ These requirements apply with respect to 
contracts entered into by DHS on or after August 16, 2009.\9\
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    \7\ See 6 U.S.C. 453b(k).
    \8\ See, e.g., 75 FR 32676, (June 9, 2010).
    \9\ See 6 U.S.C. 453b(l).
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    The implementing regulations for the BAA are in the Federal 
Acquisition Regulation (FAR).\10\ Chapter 30 of 48 CFR, known as the 
Homeland Security Acquisition Regulation (HSAR), applies specifically 
to DHS.\11\
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    \10\ See Title 48, Chapter 1 of the CFR.
    \11\ See 48 CFR Chapter 30.
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    In 2009, DHS published an interim rule with request for comments 
(``2009 Interim Rule'') amending the HSAR at 48 CFR part 3025, Foreign 
Acquisitions, and part 3052, Solicitation Provisions and Contract 
Clauses, incorporating the Kissell Amendment requirements.\12\ In

[[Page 59878]]

2010, DHS published a final rule (``2010 Final Rule'') adopting the 
2009 Interim Rule as final without change.\13\ The 2009 Interim Rule 
made amendments to the HSAR ``to add solicitation provisions, contract 
clauses and related policy statements implementing these requirements 
and exceptions for certain DHS contracts, option exercises and 
orders.'' \14\ The provisions of 48 CFR 3025.70 were limited to 
``exercising of an option and orders entered into on or after August 
16, 2009 with funds appropriated or otherwise provided on or before 
February 17, 2009.'' \15\
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    \12\ See Revision of Department of Homeland Security Acquisition 
Regulation; Restrictions on Foreign Acquisition (HSAR Case 2009-
004), 74 FR 41346 (Aug. 17, 2009).
    \13\ See Revision of Department of Homeland Security Acquisition 
Regulation; Restrictions on Foreign Acquisition (HSAR Case 2009-
004), 75 FR 32676 (June 9, 2010).
    \14\ See 74 FR 41346 (Aug. 17, 2009).
    \15\ See 48 CFR 3025.7000.
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    The 2009 Interim Rule, among other changes, also created regulatory 
definitions, such as the term ``end product'' which, for purposes of 48 
CFR 3025.70, and under 48 3052.225-70 ``means supplies delivered under 
a line item of a contract.'' \16\ The term `end product' was further 
referenced throughout these parts.\17\
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    \16\ See 48 CFR 3025.7001(c) and 3052.225-70(a)(3).
    \17\ See e.g. 48 CFR 3025.7001(a)-(b), (d), 3025.7002-2(g); see 
also 48 CFR 3052.225-70(a)(1)-(2).
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    The regulations also provide a list of the types of textile items 
included in the restriction (such as certain yarn, wool, and cotton), 
explain the specific application of trade agreements, and require, with 
some exceptions, the use of domestic goods for procurement of Kissell-
covered items.\18\ One such exception is for ``incidental amounts of 
cotton, other natural fibers, or wool incorporated in an end product, 
for which the estimated value of the cotton, other natural fibers, or 
wool is not more than 10 percent of the total price of the end 
product.'' \19\
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    \18\ See, e.g., 48 CFR 3052.225-70.
    \19\ See 48 CFR 3052.225-70(d)(2).
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    DHS notes that the DHS Chief Procurement Officer can issue HSAR 
deviations when necessary to allow components to deviate from the 
HSAR.\20\ On March 5, 2013, DHS issued a deviation regarding the 
applicability of the Kissell Amendment (Deviation 13-01).\21\ As 
discussed above, the provisions of 48 CFR 3025.70 were limited to 
``exercising of an option and orders entered into on or after August 
16, 2009 with funds appropriated or otherwise provided on or before 
February 17, 2009.'' \22\ Under Deviation 13-01, DHS deviates from the 
language of 48 CFR 3025.7000 that restricted application of certain 
Kissell provisions to those actions with funds appropriated or 
otherwise provided on or before February 17, 2009.\23\
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    \20\ See HSAR Deviations, available at: https://www.dhs.gov/publication/current-hsar-deviations (last accessed May 31, 2024).
    \21\ See HSAR class deviation, 13-01, Applicability of the 
``Kissell Amendment'' to Department of Homeland Security 
Acquisitions (Mar. 5, 2013) (``Deviation 13-01'') available at: 
https://www.dhs.gov/sites/default/files/publications/cpo-HSARclassdeviation13-01_0_0_0_0_0.pdf (last accessed May 31, 2024).
    \22\ See 48 CFR 3025.7000.
    \23\ ``Effective immediately, the scope of the subpart 3025.70 
shall apply as follows . . . This subpart contains restrictions on 
the acquisition of certain foreign textile products imposed by the 
American Recovery and Reinvestment Act of 2009 on contracts, 
exercising of an option and orders entered into on or after August 
16, 2009.''
    See Deviation 13-01, available at: https://www.dhs.gov/sites/default/files/publications/cpo-HSARclassdeviation13-01_0_0_0_0_0.pdf 
(last accessed May 31, 2024).
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    In addition, on March 14, 2013, DHS issued an amendment to 
Deviation 13-01 (``Deviation Amendment 1'').\24\ Under Deviation 
Amendment 1, the De Minimis Exception described above was to be read as 
applying to ``incidental amounts of non-compliant fibers if the total 
value of non-compliant fibers contained in the end item does not exceed 
10 percent of the total purchase price of the end item . . .''.\25\ 
Deviation 13-01 and Deviation Amendment 1 were both effective 
immediately at the time of their publication in 2013 and are still in 
effect.\26\
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    \24\ See HSAR class deviation, 13-01, Amendment 1, Homeland 
Security Acquisition Regulation 3052.225-70, Requirement for Use of 
Certain Domestic Commodities, (March 14, 2013) (``Deviation 
Amendment 1''), available at: https://www.dhs.gov/sites/default/files/publications/cpo-HSARclassdeviation13-01%E2%80%93amendment1_0_0_0_0_0_0.pdf (last accessed May 31, 2024).
    \25\ The clause would not apply to ``incidental amounts of 
cotton, other natural fibers, or wool incorporated in an end 
product, for which the estimated value of the cotton, other natural 
fibers, or wool is not more than 10 percent of the total price of 
the end product.''
    \26\ See Deviation 13-01, available at: https://www.dhs.gov/sites/default/files/publications/cpo-HSARclassdeviation13-01_0_0_0_0_0.pdf (last accessed Apr. 23, 2024); see also Deviation 
Amendment available at: https://www.dhs.gov/sites/default/files/publications/cpo-HSARclassdeviation13-01%E2%80%93amendment1_0_0_0_0_0_0.pdf (last accessed May 31, 2024).
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    DHS is proposing amendments to the HSAR at 48 CFR part 3025, 
Foreign Acquisitions, and at 48 CFR part 3052, Solicitation Provisions 
and Contract Clauses, to codify guidance in Deviation 13-01 and 
Deviation Amendment 1, and make additional revisions consistent with 
it.

II. Discussion and Analysis

    DHS is proposing to amend the HSAR to better clarify how DHS 
complies with the Kissell Amendment, including proposing to codify 
certain guidance from Deviation 13-01 and Deviation Amendment 1.
    DHS is also proposing to define the term `end item' to mean 
``supplies delivered under a line item of a contract.'' See proposed 48 
CFR 3025.7001(c). DHS notes the proposed definition of `end item' is 
the current regulatory definition of end product. DHS is further 
proposing to replace the term ``end product'' with ``end item'' 
throughout 48 CFR part 3025 to reduce potential confusion through use 
of terminology consistent with the Kissell Amendment. As ``end item'' 
is the term used in the Kissell Amendment, DHS believes that defining 
and using the statutory term `end item' instead of the term `end 
product' in the HSAR provisions applicable to the Kissell Amendment 
would also provide clarity.
    DHS is further proposing to amend 48 CFR 3025.7000, to explain that 
this provision applies to the Kissell Amendment, the subject of this 
subpart; and it would also amend the description of the type of funds 
to which the Kissell Amendment applies consistent with current practice 
and Deviation 13-01. The Kissell Amendment applies ``with respect to 
contracts entered into by the Department of Homeland Security 180 days 
after February 17, 2009.'' \27\ However, DHS, as part of the 2009 
Interim Final Rule interpreted the restriction as applying to 
contracts, options and orders entered into on or after August 16, 2009, 
with funds appropriated or otherwise provided on or before February 17, 
2009. This meant that DHS applied the restriction to only those awards 
supported by funding appropriated or otherwise made available to DHS on 
or before February 17, 2009, including those funds that were no-year or 
multi-year.\28\ After reevaluating DHS's prior interpretation, DHS 
determined initial assessment of the funds to which the restriction 
applies was too limiting and excluded contracts that could be covered 
by the statute. DHS issued Deviation 13-01 on March 5, 2013, announcing 
DHS would deviate from the current HSAR and that the Kissell Amendment 
would apply to ``contracts, exercising of an option and

[[Page 59879]]

orders entered into on or after August 16, 2009.'' \29\
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    \27\ See 6 U.S.C. 453b(l)
    \28\ No Year Appropriations are appropriations available for 
obligations for an indefinite period of time without fiscal year 
limitation and are available until they are used up. Multi-Year 
Appropriations are appropriations available for obligation for a 
definite period in excess of one fiscal year. See U.S. House of 
Representatives Glossary of Terms, available at https://www.house.gov/the-house-explained/open-government/statement-of-disbursements/glossary-of-terms (last accessed May 30, 2024).
    \29\ See Deviation 13-01, available at: https://www.dhs.gov/sites/default/files/publications/cpo-HSARclassdeviation13-01_0_0_0_0_0.pdf (last accessed May 31, 2024).
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    Therefore, DHS is proposing to amend HSAR section 3025.7000, to 
remove the regulatory text added by the 2009 Interim Rule that 
restricted applicability of the Kissell Amendment to contracts, options 
and orders entered into on or after August 16, 2009 with funds 
appropriated or otherwise provided on or before February 17, 2009. This 
proposed change is consistent with current practice and Deviation 13-
01.
    DHS is also proposing to revise the introductory text of 48 CFR 
3025.7002-1, Restrictions, to codify that the Kissell Amendment applies 
to all contracts, options and orders entered into on or after August 
16, 2009. This proposed change is consistent with current practice and 
Deviation 13-01.
    Similar to the proposed changes discussed above to replace the term 
`end product' with `end item' DHS is proposing to amend 48 CFR 
3025.7002-2, and update the provisions impacting the De Minimis 
Exception. As discussed above, the De Minimis Exception uses the term 
end item.\30\ But the 2009 Interim Rule uses the term `end product' in 
the regulatory provisions that apply to the De Minimis Exception.\31\ 
Since Deviation Amendment 1 was effective, DHS has read the provision 
as using the term `end item'. To reduce confusion, DHS is proposing to 
replace the term `end product' with `end item' and also make additional 
changes consistent with Deviation Amendment 1. See proposed 48 CFR 
3025.7002-2(g) and 3052.225-70(d)(2). Therefore, DHS is proposing these 
to reduce confusion and codify the current practice as directed by 
Deviation Amendment 1.
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    \30\ See 6 U.S.C. 453b(d).
    \31\ See 48 CFR 3025.7002-2 and 3052.225-70; see also 74 FR 
41346 (Aug. 17, 2009).
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    In addition DHS is proposing to make a technical amendment, 
amending 48 CFR 3025.7002-2(h), to fix a typographical error, and 
reference 48 CFR 3025.7003-3 when mentioning the regulatory provision 
for specific application of trade agreements.\32\
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    \32\ See 48 CFR 3025.7002-2(h) (which currently states ``see 
(HSAR) 48 CFR 3025.7003-2 for specific application of trade 
agreements'').
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III. Regulatory Analyses

A. Executive Orders 12866, 13563, and 14094

    Executive Order 12866 (Regulatory Planning and Review), as amended 
by Executive Order 14094 (Modernizing Regulatory Review), and Executive 
Order 13563 (Improving Regulation and Regulatory Review) direct 
agencies to assess the 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). Executive Order 13563 emphasizes the importance of 
quantifying both costs and benefits, of reducing costs, of harmonizing 
rules, and of promoting flexibility.
    The Office of Management and Budget (OMB) has not designated this 
rule a significant regulatory action under section 3(f) of Executive 
Order 12866, as amended by Executive Order 14094. Accordingly, OMB has 
not reviewed this regulatory action.
Need for the Rule
    This proposed rule would codify requirements as set forth in the 
Deviation 13-01 and Deviation Amendment 1. To provide clarity and 
consistency, DHS proposes this HSAR revision to align with existing DHS 
practice. DHS is not newly implementing the Kissell Amendment, but is, 
as described above, amending the existing regulation to clarify the 
type of funds to which the Kissell Amendment, including the De Minimis 
Exception, applies.
Benefits and Costs of the Proposed Rule
    The benefits and costs of a regulation are generally measured 
against a no-action baseline, which is a reasonable forecast of the way 
the world would look absent the regulatory action being assessed.\33\ 
This proposed rule would not result in new costs since DHS has 
implemented the proposed changes through Deviation 13-01 and Deviation 
Amendment 1, both issued in 2013. The proposed changes would promote 
clarity and fuller understanding of the Kissell Amendment regulatory 
requirements by agency contracting officers as well as potential DHS 
vendors. This additional clarity would be a benefit to industry as 
improved contracting officer understanding of the regulatory 
requirements helps ensure that DHS applies standards similarly across 
contracting actions, making it easier for industry to comply with DHS 
requirements. A summary of the costs and benefits of the rule is shown 
below in Exhibit 1.
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    \33\ See OMB Circular A-4, p, 11 (Nov. 9, 2023) (accessible at 
https://www.whitehouse.gov/wp-content/uploads/2023/11/CircularA-4.pdf).

              Exhibit 1--Summary of Proposed Rule Changes and Economic Impacts of the Proposed Rule
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                                          Description of the
       Proposed CFR  provision             proposed change               Costs                   Benefits
----------------------------------------------------------------------------------------------------------------
48 CFR 3025.7000 Scope of Subpart;     Corrects language to     No new costs since DHS   Provides clarification
 and CFR 3025.7002-1 Restrictions.      clarify that Kissell     has already              on applicability and
                                        Amendment applies to     implemented the          ensures consistency
                                        all contracts, options   proposed changes via     between the HSAR and
                                        and orders entered       Deviation 13-01 issued   existing DHS practice.
                                        into on or after         in March 2013.
                                        August 16, 2009, and
                                        removes appropriation
                                        date from the scope
                                        criteria.
48 CFR 3025.7001 Definitions; 48 CFR   Changes terminology      No new costs since DHS   Provides clarity on
 3025.7002-1 Restrictions; 48 CFR       from ``end product''     has already              terminology and
 3025.7002-2 Exceptions; 48 CFR         to ``end item'' to       incorporated the         ensures consistency
 3052.225-70 Requirement for Use of     consistently reflect     proposed ``end item''    between the HSAR and
 Certain Domestic Commodities.          Kissell Amendment        definition through       existing DHS practice.
                                        applicability of 10%     Deviation Amendment 1
                                        De Minimis Exception.    issued in March 2013.
48 CFR 3025.7002-2 Exceptions........  Editorial correction to  No cost................  Provides clarification.
                                        CFR reference relating
                                        to application of
                                        trade agreements.
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[[Page 59880]]

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601-612, as 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996, Public Law 104-121, (Mar. 29, 1996), requires Federal agencies to 
consider the potential impact of regulations on small businesses, small 
governmental jurisdictions, and small organizations during the 
development of their rules. The term ``small entities'' comprises small 
businesses, not-for-profit organizations that are independently owned 
and operated and are not dominant in their fields, or governmental 
jurisdictions with populations of less than 50,000. The proposed rule 
would provide clarity and consistency between the HSAR and existing DHS 
practice as set forth in Deviation 13-01 and Deviation Amendment 1. 
This proposed rule does not directly mandate any actions or 
requirements that would result in burdens for small entities. 
Therefore, DHS certifies this proposed rule would not 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. DHS invites comments from members of the public regarding 
potential direct economic impacts on small entities.

C. 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. 3501-35210).

D. National Environmental Policy Act

    Section 102 of the National Environmental Policy Act of 1969 
(NEPA), Public Law 91-190, 83 Stat. 852 (Jan. 1, 1970) (42 U.S.C. 4321 
et seq.), as amended, requires Federal agencies to evaluate the impacts 
of a proposed major Federal action that may significantly affect the 
human environment, consider alternatives to the proposed action, 
provide public notice and opportunity to comment, and properly document 
its analysis. DHS and its agency components analyze proposed actions to 
determine whether NEPA applies to them and, if so, what level of 
documentation and analysis is required.
    DHS Directive 023-01, Rev. 01 and DHS Instruction Manual 023-01-
001-01, Rev. 01 (Instruction Manual) establish the policies and 
procedures DHS and its component agencies use to comply with NEPA and 
the Council on Environmental Quality regulations for implementing NEPA 
codified in 40 CFR parts 1500-1508. The CEQ regulations allow Federal 
agencies to establish, in their implementing procedures, with CEQ 
review and concurrence, categories of actions (``categorical 
exclusions'') that experience has shown do not, individually or in the 
aggregate, have a significant effect on the human environment and, 
therefore, do not require preparation of an environmental assessment or 
environmental impact statement. 40 CFR 1501.4, 1507.3(e)(2)(ii). 
Appendix A of the Instruction Manual lists the DHS categorical 
exclusions.
    Under DHS NEPA implementing procedures, for an action to be 
categorically excluded, it must satisfy each of the following three 
conditions: (1) the entire action clearly fits within one or more 
categorical exclusions; (2) the action is not a piece of a larger 
action; and (3) no extraordinary circumstances exist that create the 
potential for a significant environmental effect.
    The proposed rule, if finalized, would amend the HSAR to better 
clarify how DHS complies with the Kissell Amendment. This would include 
codifying certain guidance from Deviation 13-01 and Deviation Amendment 
1 that is currently in effect.
    DHS is not aware of any significant impact on the environment, or 
any change in environmental effect that will result from this proposed 
rule. DHS finds promulgation of the rule clearly fits within 
categorical exclusion A3, established in the Department's NEPA 
implementing procedures.
    This proposed rule is a standalone rule and is not part of any 
larger action. This proposed rule would not result in any major Federal 
action that would significantly affect the quality of the human 
environment. Furthermore, DHS has determined that no extraordinary 
circumstances exist that would create the potential for significant 
environmental effects. Therefore, this proposed rule is categorically 
excluded from further NEPA review and documentation.

List of Subjects in 48 CFR Parts 3025 and 3052

    Government procurement.

    Accordingly, for the reasons set forth in the preamble, DHS 
proposes to amend 48 CFR parts 3025 and 3052 as follows:

PART 3025--FOREIGN ACQUISITION

0
1. The authority citation for part 3025 continues to read as follows:

    Authority: 5 U.S.C. 301-302, 41 U.S.C. 1303, 41 U.S.C. 1707, 41 
U.S.C. 1702, and 48 CFR subpart 1.3.

0
2. Revise section 3025.7000 to read as follows:


3025.7000  Scope of subpart.

    This subpart implements section 604 of the American Recovery and 
Reinvestment Act of 2009, Public Law 111-5.
0
3. In section 3025.7001 revise paragraphs (a) through (d) to read as 
follows:


3025.7001  Definitions.

* * * * *
    (a) ``Commercial,'' as applied to an item described in (HSAR) 48 
CFR 3025.7002-1, means an item of supply, whether an end item or 
component, that meets the definition of ``commercial item'' set forth 
in (FAR) 48 CFR 2.101.
    (b) ``Component'' means any item supplied to the Government as part 
of an end item or of another component.
    (c) ``End item'' means supplies delivered under a line item of a 
contract.
    (d) ``Non-commercial,'' as applied to an item described in (HSAR) 
48 CFR 3025.7002-1, means an item of supply, whether an end item or 
component, that does not meet the definition of ``commercial item'' set 
forth in (FAR) 48 CFR 2.101.
* * * * *
0
4. Revise the introductory text to read as follows:


3025.7002-1  Restrictions.

    The following restrictions implement section 604 of the American 
Recovery and Reinvestment Act of 2009, Public Law 111-5, and they apply 
to all contracts, options and orders entered into on or after August 
16, 2009. Except as provided in (HSAR) 48 CFR 3025.7002-2, do not 
acquire, either as end items or components, any item listed in 
paragraphs (a) or (b) of this section, if the item is directly related 
to the national security interests of the United States and the item 
has not been grown, reprocessed, reused, or produced in the United 
States:
* * * * *
0
5. In section 3025.7002-2 revise paragraphs (d), (g), and (h) to read 
as follows:


3025.7002-2  Exceptions.

* * * * *
    (d) Acquisitions of items listed in (FAR) 48 CFR 25.104.
* * * * *
    (g) The acquisition of covered items in 3052.7002-1 (a) and (b) 
containing non-compliant fibers when the total value of

[[Page 59881]]

the non-compliant fibers contained in the end item does not exceed 10 
percent of the total purchase price of the end item.
    (h) Acquisitions of items otherwise covered by (HSAR) 48 CFR 
3025.7002-1(a) and (b) for which restricting a procurement of the items 
to those that have been grown, reprocessed, reused, or produced in the 
United States would be inconsistent with United States obligations 
under international agreements. Acquisitions of products that are 
eligible products per (FAR) 48 CFR subpart 25.4 are not covered by 
these restrictions; see (HSAR) 48 CFR 3025.7002-3 for specific 
application of trade agreements.

PART 3052--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
6. The authority citation for part 3052 continues to read as follows:

    Authority: 5 U.S.C. 301-302, 41 U.S.C. 1707, 41 U.S.C. 1702, 41 
U.S.C. 1303(a)(2), 48 CFR part 1, subpart 1.3, and DHS Delegation 
Number 0702.

0
7. In section 3052.225-70 revise the clause, date, paragraphs (a)(1) 
through (4), (b) introductory text, (c) introductory text, and (d)(2) 
to read as follows:


3052.225-70  Requirement for Use of Certain Domestic Commodities.

* * * * *
Requirement for Use of Certain Domestic Commodities (DATE)
* * * * *
    (a) * * *
    (1) ``Commercial,'' as applied to an item described in paragraph 
(b) of this clause, means an item of supply, whether an end item or 
component, that meets the definition of ``commercial item'' set forth 
in (FAR) 48 CFR 2.101.
    (2) ``Component'' means any item supplied to the Government as part 
of an end item or of another component.
    (3) ``End item'' means supplies delivered under a line item of this 
contract.
    (4) ``Non-commercial,'' as applied to an item described in 
paragraphs (b) or (c) of this clause, means an item of supply, whether 
an end item or component, that does not meet the definition of 
``commercial item'' set forth in (FAR) 48 CFR 2.101.
* * * * *
    (b) The Contractor shall deliver under this contract only such of 
the following commercial or non-commercial items, either as end items 
or components, that have been grown, reprocessed, reused, or produced 
in the United States:
* * * * *
    (c) The Contractor shall deliver under this contract only such of 
the following non-commercial items, either as end items or components, 
that have been grown, reprocessed, reused, or produced in the United 
States:
* * * * *
    (d) * * *
    (2) To the covered items in paragraphs (b) and (c) of this Clause 
containing non-compliant fibers when the total value of the non-
compliant fibers contained in the end item does not exceed 10 percent 
of the total purchase price of the end item; or
* * * * *

Paul Courtney,
Chief Procurement Officer, U.S. Department of Homeland Security.
[FR Doc. 2024-15559 Filed 7-23-24; 8:45 am]
BILLING CODE 9112-FE-P