Defense Federal Acquisition Regulation Supplement: Flowdown of Specialty Metals Restrictions (DFARS Case 2014-D011), 61584-61585 [2014-24402]
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61584
Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Rules and Regulations
5. Section 247.574 is amended by—
a. In paragraph (e), removing the last
two sentences; and
■ b. In paragraph (f), removing the last
sentence.
Metals.’’ In order to prevent
misinterpretation of the current
flowdown requirement to insert the
‘‘substance of the clause’’ in
subcontracts, the flowdown requirement
has been rewritten to specify that the
only modifications allowed when
flowing down the clause are as follows:
• Exclude and reserve paragraph (d)
of the clause.
• Modify paragraph (c)(6) of the
clause only as necessary to facilitate
management of the allowance for up to
2 percent otherwise noncompliant
specialty metal content in the end
product, while recognizing that the
minimal content exception does not
apply to specialty metals contained in
high-performance magnets.
• Not further alter the clause, other
than to identify the appropriate parties.
One respondent submitted public
comments in response to the proposed
rule.
[FR Doc. 2014–24401 Filed 10–10–14; 8:45 am]
II. Discussion and Analysis
BILLING CODE 5001–06–P
DoD reviewed the public comments in
the development of the final rule. No
changes were made to the rule as a
result of those comments.
Comment: The respondent noted that
the proposed clarification may well be
necessary and welcomed DoD’s
willingness to minimize
misinterpretations of laws and
regulations.
Response: Noted.
Comment: The respondent expressed
concern about the number of national
security waivers issued to accept
noncompliant specialty metals from
China and other noncompliant sources.
Response: The granting of national
security waivers is outside the scope of
this case.
from offerors in response to solicitation
provision 252.247–7026, Evaluation
Preference for Use of Domestic
Shipyards—Applicable to Acquisition
of Carriage by Vessel for DoD Cargo in
the Coastwise of Noncontiguous Trade,
are found at PGI 247.573(b)(3).
(4) Procedures are provided at PGI
247.573(b)(4) to accomplish security
background checks pursuant to clause
252.247–7027, Riding Gang Member
Requirements.
247.573–1, 247.573–2 and 247.573–3
[Removed]
4. Remove sections 247.573–1,
247.573–2, and 247.573–3.
■
247.574
[Amended]
■
■
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Part 252
RIN 0750–AI30
Defense Federal Acquisition
Regulation Supplement: Flowdown of
Specialty Metals Restrictions (DFARS
Case 2014–D011)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
DoD is issuing a final rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to clarify the flowdown
requirements for the DFARS clause
entitled ‘‘Restriction on Acquisition of
Certain Articles Containing Specialty
Metals.’’
SUMMARY:
DATES:
Effective October 14, 2014.
Ms.
Amy G. Williams, telephone 571–372–
6106.
FOR FURTHER INFORMATION CONTACT:
mstockstill on DSK4VPTVN1PROD with RULES
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the
Federal Register at 79 FR 35507 on June
23, 2014, to clarify the flowdown
requirements for the DFARS clause
entitled ‘‘Restriction on Acquisition of
Certain Articles Containing Specialty
VerDate Sep<11>2014
16:04 Oct 10, 2014
Jkt 235001
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
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.
PO 00000
Frm 00022
Fmt 4700
Sfmt 4700
IV. Regulatory Flexibility Act
A final regulatory flexibility analysis
has been prepared consistent with the
Regulatory Flexibility Act, 5 U.S.C. 604,
and is summarized as follows:
The reason for issuance of this rule is
to clarify the flowdown requirements for
DFARS clause 252.225–7009,
Restriction on Acquisition of Certain
Articles Containing Specialty Metals.
The objective of the rule is to more fully
implement the requirements of 10
U.S.C. 2533b, which restricts the
acquisition of specialty metals not
melted in the United States, its outlying
areas, or a qualifying country, in order
to strengthen the United States
industrial base.
There were no significant issues
raised by the public comments in
response to the initial regulatory
flexibility analysis.
This rule applies to DoD contractors
and subcontractors that are providing
aircraft, missile or space systems, ships,
tank or automotive items, weapon
systems, ammunition, or components
thereof that contain specialty metals.
Based on Fiscal Year 2013 data in the
Federal Procurement Data System
(FPDS), DoD awarded 1,566 contracts
that exceeded the simplified acquisition
threshold for aircraft, missile or space
systems, ships, tank or automotive
items, weapon systems, ammunition, or
components thereof. Of those awards,
642 were to 533 unique small business
entities (83%). FPDS does not contain
data on subcontracts. If we estimate an
average of 20 subcontracts per contract
for items containing specialty metals,
and that 35 percent of those
subcontracts are awarded to small
businesses, 2 second-tier subcontracts
with small business entities per
subcontract with a small business
entity, then this rule may apply to
approximately 27,828 small business
entities subject to DFARS 52.225–7009.
(1,566 contracts × 2031,320 subcontracts
× .3510,962 1st tier subcontracts with
small entities × 2 = 21,924 second-tier
subcontracts with small entities. Total
small business entities = .83(642 +
10,962 + 21,924) = 27,828)
There are no reporting or
recordkeeping requirements associated
with this rule. With some exceptions,
the rule requires contractors to provide
certain end products containing
specialty metals melted or produced in
the United States, its outlying areas, or
a qualifying country. However, end
items may contain a minimal amount of
otherwise noncompliant specialty
metals, if the total weight of such
noncompliant metals does not exceed 2
percent of the total of all specialty
E:\FR\FM\14OCR1.SGM
14OCR1
Federal Register / Vol. 79, No. 198 / Tuesday, October 14, 2014 / Rules and Regulations
metals in the end item. Therefore, the
contractor has some discretion in
flowing down the requirement to
subcontractors to the extent necessary to
ensure compliance of the end products
the contractor will deliver to the
Government.
This rule does not impose any
significant new burdens on small
entities, because it only clarifies what
was intended by the conventional
statement to insert ‘‘the substance of the
clause’’ in subcontracts for items
containing specialty metals.
V. 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 252
Government procurement.
Manuel Quinones,
Editor, Defense Acquisition Regulations
System.
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.
2. Amend section 252.225–7009 by—
a. Removing the clause date ‘‘(JUN
2013)’’ and adding ‘‘(OCT 2014)’’ in its
place; and
■ b. Revising paragraph (e) to read as
follows:
■
■
252.225–7009 Restriction on Acquisition
of Certain Articles Containing Specialty
Metals.
mstockstill on DSK4VPTVN1PROD with RULES
*
*
*
*
(e) Subcontracts. (1) The Contractor
shall exclude and reserve paragraph (d)
and this paragraph (e)(1) when flowing
down this clause to subcontracts.
(2) The Contractor shall insert
paragraphs (a) through (c) and this
paragraph (e)(2) of this clause in
subcontracts, including subcontracts for
commercial items, that are for items
containing specialty metals to ensure
compliance of the end products that the
Contractor will deliver to the
Government. When inserting this clause
in subcontracts, the Contractor shall—
(i) Modify paragraph (c)(6) of this
clause only as necessary to facilitate
management of the minimal content
Jkt 235001
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 622
[Docket No. 101206604–1758–02]
RIN 0648–X100714b
Fisheries of the Caribbean, Gulf of
Mexico, and South Atlantic; Coastal
Migratory Pelagic Resources of the
Gulf of Mexico and South Atlantic; Trip
Limit Reduction
NMFS reduces the trip limit
for the commercial sector of king
mackerel in the eastern zone of the Gulf
of Mexico (Gulf) in the Florida west
coast northern subzone to 500 lb (227
kg) of king mackerel per day in or from
the exclusive economic zone (EEZ). This
trip limit reduction is necessary to
protect the Gulf king mackerel resource.
DATES: This rule is effective 12:01 a.m.,
local time, October 13, 2014, through
June 30, 2015, unless changed by further
notice in the Federal Register.
FOR FURTHER INFORMATION CONTACT:
Susan Gerhart, telephone: 727–824–
5305, email: susan.gerhart@noaa.gov.
SUPPLEMENTARY INFORMATION: The
fishery for coastal migratory pelagic fish
(king mackerel, Spanish mackerel, and
cobia) is managed under the Fishery
Management Plan for the Coastal
Migratory Pelagic Resources of the Gulf
of Mexico and South Atlantic (FMP).
The FMP was prepared by the Gulf of
Mexico and South Atlantic Fishery
Management Councils (Councils) and is
implemented under the authority of the
Magnuson-Stevens Fishery
Conservation and Management Act
(Magnuson-Stevens Act) by regulations
at 50 CFR part 622.
The Gulf migratory group king
mackerel is divided into western and
eastern zones. On April 27, 2000, NMFS
implemented the final rule (65 FR
SUMMARY:
■
16:04 Oct 10, 2014
BILLING CODE 5001–06–P
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Temporary rule; trip limit
reduction.
PART 252—SOLICITATION
PROVISIONS AND CONTACT
CLAUSES
VerDate Sep<11>2014
[FR Doc. 2014–24402 Filed 10–10–14; 8:45 am]
AGENCY:
Therefore, 48 CFR part 252 is
amended as follows:
*
exception at the prime contract level.
The minimal content exception does not
apply to specialty metals contained in
high-performance magnets; and
(ii) Not further alter the clause other
than to identify the appropriate parties.
PO 00000
Frm 00023
Fmt 4700
Sfmt 4700
61585
16336, March 28, 2000) that further
divided the Gulf eastern zone’s Florida
west coast subzone into northern and
southern subzones, and established
their separate quotas. The December 29,
2011 (76 FR 82058), final rule specified
the quota for the Florida west coast
northern subzone at 178,848 lb (81,124
kg) (50 CFR 622.384(b)(1)(i)(B)(2)).
The regulations at 50 CFR
622.385(a)(2)(ii)(B)(2), provide that
when 75 percent of the Florida west
coast northern subzone’s quota has been
harvested until a closure of the subzone
has been effected or the fishing year
ends, king mackerel in or from the EEZ
may be possessed on board or landed
from a permitted vessel in amounts not
exceeding 500 lb (227 kg) per day.
NMFS has projected that 75 percent of
the quota for Gulf migratory group king
mackerel from the Florida west coast
northern subzone has been reached.
Accordingly, a 500-lb (227-kg) trip limit
applies to vessels with a commercial
permit for king mackerel that possess or
land king mackerel in or from the EEZ
in the Florida west coast northern
subzone effective 12:01 a.m., local time,
October 13, 2014. The 500-lb (227-kg)
trip limit will remain in effect until the
subzone closes or until the end of the
current fishing year (June 30, 2015),
whichever occurs first.
The Florida west coast northern
subzone is that part of the EEZ between
26°19.8’ N. latitude (a line directly west
from the boundary between Lee and
Collier Counties, FL) and 87°31.1’ W.
longitude (a line directly south from the
state boundary of Alabama and Florida).
Classification
The Regional Administrator,
Southeast Region, NMFS, has
determined this temporary rule is
necessary for the conservation and
management of Gulf migratory group
king mackerel and is consistent with the
Magnuson-Stevens Act and other
applicable laws.
This action is taken under 50 CFR
622.385(a)(2)(ii)(B) and is exempt from
review under Executive Order 12866.
These measures are exempt from the
procedures of the Regulatory Flexibility
Act because the temporary rule is issued
without opportunity for prior notice and
comment.
This action responds to the best
scientific information available. The
Assistant Administrator for Fisheries,
NOAA, (AA), finds good cause to waive
the requirements to provide prior notice
and opportunity for public comment
pursuant to the authority set forth at 5
U.S.C. 553(b)(B) as such prior notice
and opportunity for public comment is
unnecessary and contrary to the public
E:\FR\FM\14OCR1.SGM
14OCR1
]]>Agencies
[Federal Register Volume 79, Number 198 (Tuesday, October 14, 2014)]
[Rules and Regulations]
[Pages 61584-61585]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-24402]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 252
RIN 0750-AI30
Defense Federal Acquisition Regulation Supplement: Flowdown of
Specialty Metals Restrictions (DFARS Case 2014-D011)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: DoD is issuing a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to clarify the flowdown
requirements for the DFARS clause entitled ``Restriction on Acquisition
of Certain Articles Containing Specialty Metals.''
DATES: Effective October 14, 2014.
FOR FURTHER INFORMATION CONTACT: Ms. Amy G. Williams, telephone 571-
372-6106.
SUPPLEMENTARY INFORMATION:
I. Background
DoD published a proposed rule in the Federal Register at 79 FR
35507 on June 23, 2014, to clarify the flowdown requirements for the
DFARS clause entitled ``Restriction on Acquisition of Certain Articles
Containing Specialty Metals.'' In order to prevent misinterpretation of
the current flowdown requirement to insert the ``substance of the
clause'' in subcontracts, the flowdown requirement has been rewritten
to specify that the only modifications allowed when flowing down the
clause are as follows:
Exclude and reserve paragraph (d) of the clause.
Modify paragraph (c)(6) of the clause only as necessary to
facilitate management of the allowance for up to 2 percent otherwise
noncompliant specialty metal content in the end product, while
recognizing that the minimal content exception does not apply to
specialty metals contained in high-performance magnets.
Not further alter the clause, other than to identify the
appropriate parties.
One respondent submitted public comments in response to the
proposed rule.
II. Discussion and Analysis
DoD reviewed the public comments in the development of the final
rule. No changes were made to the rule as a result of those comments.
Comment: The respondent noted that the proposed clarification may
well be necessary and welcomed DoD's willingness to minimize
misinterpretations of laws and regulations.
Response: Noted.
Comment: The respondent expressed concern about the number of
national security waivers issued to accept noncompliant specialty
metals from China and other noncompliant sources.
Response: The granting of national security waivers is outside the
scope of this case.
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 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
A final regulatory flexibility analysis has been prepared
consistent with the Regulatory Flexibility Act, 5 U.S.C. 604, and is
summarized as follows:
The reason for issuance of this rule is to clarify the flowdown
requirements for DFARS clause 252.225-7009, Restriction on Acquisition
of Certain Articles Containing Specialty Metals. The objective of the
rule is to more fully implement the requirements of 10 U.S.C. 2533b,
which restricts the acquisition of specialty metals not melted in the
United States, its outlying areas, or a qualifying country, in order to
strengthen the United States industrial base.
There were no significant issues raised by the public comments in
response to the initial regulatory flexibility analysis.
This rule applies to DoD contractors and subcontractors that are
providing aircraft, missile or space systems, ships, tank or automotive
items, weapon systems, ammunition, or components thereof that contain
specialty metals.
Based on Fiscal Year 2013 data in the Federal Procurement Data
System (FPDS), DoD awarded 1,566 contracts that exceeded the simplified
acquisition threshold for aircraft, missile or space systems, ships,
tank or automotive items, weapon systems, ammunition, or components
thereof. Of those awards, 642 were to 533 unique small business
entities (83%). FPDS does not contain data on subcontracts. If we
estimate an average of 20 subcontracts per contract for items
containing specialty metals, and that 35 percent of those subcontracts
are awarded to small businesses, 2 second-tier subcontracts with small
business entities per subcontract with a small business entity, then
this rule may apply to approximately 27,828 small business entities
subject to DFARS 52.225-7009.
(1,566 contracts x 2031,320 subcontracts x .3510,962 1st tier
subcontracts with small entities x 2 = 21,924 second-tier subcontracts
with small entities. Total small business entities = .83(642 + 10,962 +
21,924) = 27,828)
There are no reporting or recordkeeping requirements associated
with this rule. With some exceptions, the rule requires contractors to
provide certain end products containing specialty metals melted or
produced in the United States, its outlying areas, or a qualifying
country. However, end items may contain a minimal amount of otherwise
noncompliant specialty metals, if the total weight of such noncompliant
metals does not exceed 2 percent of the total of all specialty
[[Page 61585]]
metals in the end item. Therefore, the contractor has some discretion
in flowing down the requirement to subcontractors to the extent
necessary to ensure compliance of the end products the contractor will
deliver to the Government.
This rule does not impose any significant new burdens on small
entities, because it only clarifies what was intended by the
conventional statement to insert ``the substance of the clause'' in
subcontracts for items containing specialty metals.
V. 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 252
Government procurement.
Manuel Quinones,
Editor, Defense Acquisition Regulations System.
Therefore, 48 CFR part 252 is amended as follows:
PART 252--SOLICITATION PROVISIONS AND CONTACT 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.
0
2. Amend section 252.225-7009 by--
0
a. Removing the clause date ``(JUN 2013)'' and adding ``(OCT 2014)'' in
its place; and
0
b. Revising paragraph (e) to read as follows:
252.225-7009 Restriction on Acquisition of Certain Articles Containing
Specialty Metals.
* * * * *
(e) Subcontracts. (1) The Contractor shall exclude and reserve
paragraph (d) and this paragraph (e)(1) when flowing down this clause
to subcontracts.
(2) The Contractor shall insert paragraphs (a) through (c) and this
paragraph (e)(2) of this clause in subcontracts, including subcontracts
for commercial items, that are for items containing specialty metals to
ensure compliance of the end products that the Contractor will deliver
to the Government. When inserting this clause in subcontracts, the
Contractor shall--
(i) Modify paragraph (c)(6) of this clause only as necessary to
facilitate management of the minimal content exception at the prime
contract level. The minimal content exception does not apply to
specialty metals contained in high-performance magnets; and
(ii) Not further alter the clause other than to identify the
appropriate parties.
[FR Doc. 2014-24402 Filed 10-10-14; 8:45 am]
BILLING CODE 5001-06-P
