Defense Federal Acquisition Regulation Supplement; Acquisition of Ball and Roller Bearings, 8560-8562 [05-3201]
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8560
Federal Register / Vol. 70, No. 34 / Tuesday, February 22, 2005 / Proposed Rules
in the Commission’s Reference Center
445 Twelfth Street, SW., Washington,
DC 20554. The complete text of this
decision may also be purchased from
the Commission’s duplicating
contractor, Best Copy and Printing, Inc.,
445 12th Street, SW., Room CY–B402,
Washington, DC 20054, telephone 1–
800–378–3160 or https://
www.BCPIWEB.com.
Provisions of the Regulatory
Flexibility Act of l980 do not apply to
this proceeding. This document does
not contain proposed information
collection requirements subject to the
Paperwork Reduction Act of 1995,
Public Law 104–13. In addition,
therefore, it does not contain any
proposed information collection burden
‘‘for small business concerns with fewer
than 25 employees,’’ pursuant to the
Small Business Paperwork Relief Act of
2002, Public Law 107–198, see 44 U.S.C.
3506(c)(4).
Members of the public should note
that from the time a Notice of Proposed
Rule Making is issued until the matter
is no longer subject to Commission
consideration or court review, all ex
parte contacts are prohibited in
Commission proceedings, such as this
one, which involve channel allotments.
See 47 CFR 1.1204(b) for rules
governing permissible ex parte contact.
For information regarding proper
filing procedures for comments, see 47
CFR 1.415 and 1.420.
List of Subjects in 47 CFR Part 73
Radio, Radio broadcasting.
For the reasons discussed in the
preamble, the Federal Communications
Commission proposes to amend 47 CFR
part 73 as follows:
PART 73—RADIO BROADCAST
SERVICES
1. The authority citation for part 73
continues to read as follows:
Authority: 47 U.S.C. 154, 303, 334 and 336.
§ 73.202
[Amended]
2. Section 73.202(b), the Table of FM
Allotments under Texas, is amended by
adding Paint Rock, Channel 296C3.
Federal Communications Commission.
John A. Karousos,
Assistant Chief, Audio Division, Media
Bureau.
[FR Doc. 05–3312 Filed 2–18–05; 8:45 am]
BILLING CODE 6712–01–P
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DEPARTMENT OF DEFENSE
48 CFR Parts 225 and 252
[DFARS Case 2003–D021]
Defense Federal Acquisition
Regulation Supplement; Acquisition of
Ball and Roller Bearings
Department of Defense (DoD).
Proposed rule with request for
comments.
AGENCY:
ACTION:
SUMMARY: DoD is proposing to amend
the Defense Federal Acquisition
Regulation Supplement (DFARS) to
update text pertaining to restrictions on
the acquisition of foreign ball and roller
bearings. This proposed rule is a result
of a transformation initiative undertaken
by DoD to dramatically change the
purpose and content of the DFARS.
DATES: Comments on the proposed rule
should be submitted in writing to the
address shown below on or before April
25, 2005, to be considered in the
formation of the final rule.
ADDRESSES: You may submit comments,
identified by DFARS Case 2003–D021,
using any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Defense Acquisition Regulations
Web Site: https://emissary.acq.osd.mil/
dar/dfars.nsf/pubcomm. Follow the
instructions for submitting comments.
• E-mail: dfars@osd.mil. Include
DFARS Case 2003–D021 in the subject
line of the message.
• Fax: (703) 602–0350.
• Mail: Defense Acquisition
Regulations Council, Attn: Ms. Amy
Williams, OUSD(AT&L)DPAP(DAR),
IMD 3C132, 3062 Defense Pentagon,
Washington, DC 20301–3062.
• Hand Delivery/Courier: Defense
Acquisition Regulations Council,
Crystal Square 4, Suite 200A, 241 18th
Street, Arlington, VA 22202–3402.
All comments received will be posted
to https://emissary.acq.osd.mil/dar/
dfars.nsf.
FOR FURTHER INFORMATION CONTACT:
Ms.
Amy Williams, (703) 602–0328.
SUPPLEMENTARY INFORMATION:
A. Background
This proposed rule is a result of
DFARS Transformation, which is a
major DoD initiative to dramatically
change the purpose and content of the
DFARS. The objective is to improve the
efficiency and effectiveness of the
acquisition process, while allowing
acquisition workforce the flexibility to
innovate. The transformed DFARS will
contain only requirements of law, DoD-
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Fmt 4702
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wide policies, delegations of FAR
authorities, deviations from FAR
requirements, and policies/procedures
that have a significant effect beyond the
internal operating procedures of DoD or
a significant cost or administrative
impact on contractors or offerors.
Additional information on the DFARS
Transformation initiative is available at
https://www.acq.osd.mil/dpap/dfars/
transf.htm.
10 U.S.C. 2534 and annual Defense
appropriations acts contain restrictions
on the acquisition of foreign ball and
roller bearings. These restrictions are
implemented in DFARS 225.7009 and in
the clause at DFARS 252.225–7016,
Restriction on Acquisition of Ball and
Roller Bearings. This rule proposes to
clarify DFARS 225.7009 and 252.225–
7016 by (1) only addressing the
exceptions, waivers, and waiver
authority available to the contracting
officer under current law; and (2)
applying the exception to 10 U.S.C.
2534, authorized by Section 8003 of the
Federal Acquisition Streamlining Act of
1994 (Public Law 103–355; 41 U.S.C.
430), as implemented at DFARS
212.504(a)(xviii), to bearings that are
commercial components of noncommercial end items or components.
The only exception to the annual
Defense appropriations act restrictions
on the acquisition of foreign bearings is
the exception for contracts or
subcontracts for the acquisition of
commercial items, except for
commercial ball and roller bearings
acquired as end items. 10 U.S.C. 2534,
as currently implemented at DFARS
225.7009–2(a)(2), provides an exception
for commercial items incorporating ball
or roller bearings. This exception does
not apply to bearings that are
commercial components of a noncommercial item. However, as a result
of Section 8003 of the Federal
Acquisition Streamlining Act of 1994,
DFARS 212.504(a)(xviii) lists 10 U.S.C.
2534 as a law that is not applicable to
subcontracts at any tier for the
acquisition of commercial items.
Applying this ‘‘any tier’’ interpretation
to bearings would be consistent with the
annual Defense appropriations acts’
commercial item exception, and would
provide a single consistent exception to
the statutory restrictions on the
acquisition of foreign bearings.
The annual Defense appropriations
acts allow the Secretary of a military
department to waive bearing domestic
source restrictions on a case-by-case
basis. The justification for the waiver
must establish that (1) adequate
domestic supplies are not available to
meet DoD requirements on a timely
basis; and (2) such an acquisition must
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Federal Register / Vol. 70, No. 34 / Tuesday, February 22, 2005 / Proposed Rules
be made in order to acquire capability
for national security purposes. The
waiver authorities of 10 U.S.C. 2354 are
unusable, except to the extent that they
can also meet the waiver requirements
of the annual Defense appropriations
acts. Therefore, this proposed rule
eliminates from the DFARS the
exceptions and waivers authorized by
10 U.S.C. 2534, that are rendered
ineffective by the overriding restrictions
of the annual Defense appropriations
acts.
The current DFARS also includes
several more restrictive waiver
requirements that derive from the 1992
DFARS. These waiver requirements
relate to multiyear acquisitions and
miniature and instrument ball bearings.
Although 10 U.S.C. 2534(a) imposes the
restrictions of the 1992 DFARS, 10
U.S.C. 2534(d) provides new waiver
authority that supersedes the prior more
restrictive waiver authority of the 1992
DFARS. This rule proposes to remove
the 1992 waiver restrictions from the
DFARS, which would substantially
reduce paperwork burden for
contractors.
This rule was not subject to Office of
Management and Budget review under
Executive Order 12866, dated
September 30, 1993.
B. Regulatory Flexibility Act
The proposed rule may 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 it permits the acquisition of
foreign commercial bearings that are
components of noncommercial items.
Although existing language at DFARS
212.504(a)(xviii) provides that 10 U.S.C.
2534 is not applicable to subcontracts at
any tier for the acquisition of
commercial items, DoD is not certain to
what extent this authority has been
implemented due to the inconsistent
requirements in DFARS Part 225. This
proposed rule resolves that
inconsistency. An initial regulatory
flexibility analysis has been prepared
and is summarized as follows:
This proposed rule establishes a
consistent exception to restrictions on
the acquisition of foreign ball and roller
bearings, to apply to the acquisition of
commercial bearings. The objective of
the proposed rule is to increase clarity
of the regulations and reduce
administrative burden for DoD
contractors. The legal basis for the
proposed rule is 10 U.S.C. 2534; Section
8059 of the Defense Appropriations Act
for Fiscal Year 2005 (Pub. L. 108–287);
and Section 8003 of the Federal
Acquisition Streamlining Act of 1994
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12:40 Feb 18, 2005
Jkt 205001
(Pub. L. 103–355; 41 U.S.C. 430). The
proposed rule will apply to
manufacturers of commercial bearings,
and manufacturers of noncommercial
products that incorporate commercial
bearings. Manufacturers of domestic
commercial bearings may face increased
competition from foreign commercial
bearing manufacturers, but
manufacturers of noncommercial
products incorporating bearings will be
relieved of extensive administrative
burdens in tracking the source of
commercial bearings and requesting
waivers from domestic source
requirements. All entities will benefit
from the increased simplicity and
clarity of the regulations.
A copy of the analysis may be
obtained from the point of contact
specified herein. DoD invites comments
from small businesses and other
interested parties. DoD also will
consider comments from small entities
concerning the affected DFARS subparts
in accordance with 5 U.S.C. 610. Such
comments should be submitted
separately and should cite DFARS Case
2003–D021.
225.7009–2
C. Paperwork Reduction Act
The information collection and
recordkeeping requirements of the
clause at 252.225–7016, Restriction on
Acquisition of Ball and Roller Bearings,
are approved through March 31, 2007,
under Office of Management and Budget
Clearance 0704–0229. The proposed
changes will reduce the estimated
annual burden on contractors by
301,600 hours.
225.7009–5
List of Subjects in 48 CFR Parts 225 and
252
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
Therefore, DoD proposes to amend 48
CFR Parts 225 and 252 as follows:
PART 225—FOREIGN ACQUISITION
1. The authority citation for 48 CFR
Parts 225 and 252 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
2. Sections 225.7009–1 through
225.7009–4 are revised to read as
follows:
225.7009–1
Scope.
This section implements—
(a) 10 U.S.C. 2534; and
(b) Section 8064 of the Fiscal Year
2001 DoD Appropriations Act (Public
Law 106–259) and similar sections in
subsequent DoD appropriations acts.
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Restriction.
Do not acquire ball and roller bearings
or bearing components unless the
bearings and bearing components are
manufactured in the United States or
Canada.
225.7009–3
Exception.
The restriction in 225.7009–2 does
not apply to contracts or subcontracts
for the acquisition of commercial items,
except for commercial ball and roller
bearings acquired as end items.
225.7009–4
Waiver.
The Secretary of the department
responsible for acquisition may waive
the restriction in 225.7009–2, on a caseby-case basis, by certifying to the House
and Senate Committees on
Appropriations that—
(a) Adequate domestic supplies are
not available to meet DoD requirements
on a timely basis; and
(b) The acquisition must be made in
order to acquire capability for national
security purposes.
3. Section 225.7009–5 is added to
read as follows:
Contract clause.
Use the clause at 252.225–7016,
Restriction on Acquisition of Ball and
Roller Bearings, in solicitations and
contracts, unless—
(a) The items being acquired are
commercial items other than ball or
roller bearings acquired as end items;
(b) The items being acquired do not
contain ball and roller bearings; or
(c) A waiver has been granted in
accordance with 225.7009–4.
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
252.212–7001
[Amended]
4. Section 252.212–7001 is amended
as follows:
a. By revising the clause date to read
‘‘(XXX 2005)’’;
b. In paragraph (b), in entry ‘‘252.225–
7016’’, by removing ‘‘(MAY 2004)’’ and
adding in its place ‘‘(XXX 2005)’’; and
c. In paragraph (b), in entry ‘‘252.225–
7016’’, by removing ‘‘(APR 2003)’’ and
adding in its place ‘‘(XXX 2005)’’.
5. Section 252.225–7016 is revised to
read as follows:
252.225–7016 Restriction on Acquisition
of Ball and Roller Bearings.
As prescribed in 225.7009–5, use the
following clause:
Restriction on Acquisition of Ball and Roller
Bearings (XXX 2005)
(a) Definition. Bearing components, as used
in this clause, means the bearing element,
retainer, inner race, or outer race.
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Federal Register / Vol. 70, No. 34 / Tuesday, February 22, 2005 / Proposed Rules
(b) Except as provided in paragraph (c) of
this clause, all ball and roller bearings and
ball and roller bearing components delivered
under this contract, either as end items or
components of end items, shall be wholly
manufactured in the United States or Canada.
Unless otherwise specified, raw materials,
such as preformed bar, tube, or rod stock and
lubricants, need not be mined or produced in
the United States or Canada.
(c) The restriction in paragraph (b) of this
clause does not apply to ball or roller
bearings that are acquired as components if—
(1) The end items or components
containing ball or roller bearings are
commercial items; or
(2) The ball or roller bearings are
commercial components.
(d) The restriction in paragraph (b) of this
clause may be waived upon request from the
Contractor in accordance with subsection
225.7009–4 of the Defense Federal
Acquisition Regulation Supplement.
(e) The Contractor shall insert the
substance of this clause, including this
paragraph (e), in all subcontracts, except
those for—
(1) Commercial items; or
(2) Items that do not contain ball or roller
bearings.
(End of clause)
[FR Doc. 05–3201 Filed 2–18–05; 8:45 am]
BILLING CODE 5001–08–P
DEPARTMENT OF DEFENSE
48 CFR Part 237
[DFARS Case 2003–D042]
Defense Federal Acquisition
Regulation Supplement; Advisory and
Assistance Services
Department of Defense (DoD).
ACTION: Proposed rule with request for
comments.
AGENCY:
SUMMARY: DoD is proposing to amend
the Defense Federal Acquisition
Regulation Supplement (DFARS) to
update text pertaining to the acquisition
of advisory and assistance services. This
proposed rule is a result of a
transformation initiative undertaken by
DoD to dramatically change the purpose
and content of the DFARS.
DATES: Comments on the proposed rule
should be submitted in writing to the
address shown below on or before April
25, 2005, to be considered in the
formation of the final rule.
ADDRESSES: You may submit comments,
identified by DFARS Case 2003–D042,
using any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Defense Acquisition Regulations
Web Site: https://emissary.acq.osd.mil/
dar/dfars.nsf/pubcomm. Follow the
instructions for submitting comments.
VerDate jul<14>2003
12:40 Feb 18, 2005
Jkt 205001
• E-mail: dfars@osd.mil. Include
DFARS Case 2003–D042 in the subject
line of the message.
• Fax: (703) 602–0350.
• Mail: Defense Acquisition
Regulations Council, Attn: Ms. Robin
Schulze, OUSD(AT&L)DPAP(DAR), IMD
3C132, 3062 Defense Pentagon,
Washington, DC 20301–3062.
• Hand Delivery/Courier: Defense
Acquisition Regulations Council,
Crystal Square 4, Suite 200A, 241 18th
Street, Arlington, VA 22202–3402.
All comments received will be posted
to https://emissary.acq.osd.mil/dar/
dfars.nsf.
FOR FURTHER INFORMATION CONTACT:
Ms.
Robin Schulze, (703) 602–0326.
SUPPLEMENTARY INFORMATION:
A. Background
DFARS Transformation is a major
DoD initiative to dramatically change
the purpose and content of the DFARS.
The objective is to improve the
efficiency and effectiveness of the
acquisition process, while allowing the
acquisition workforce the flexibility to
innovate. The transformed DFARS will
contain only requirements of law, DoDwide policies, delegations of FAR
authorities, deviations from FAR
requirements, and policies/procedures
that have a significant effect beyond the
internal operating procedures of DoD or
a significant cost or administrative
impact on contractors or offerors.
Additional information on the DFARS
Transformation initiative is available at
https://www.acq.osd.mil/dpap/dfars/
transf.htm.
This proposed rule is a result of the
DFARS Transformation initiative. The
proposed changes—
• Delete the definition of ‘‘advisory
and assistance services’’ at DFARS
237.201. The definition is used
primarily for budget reporting under 10
U.S.C. 2212, and is adequately
addressed in financial management
regulations.
• Delete obsolete text on contracting
for engineering and technical services at
DFARS 237.203. This text was based on
DoD Directive 1130.2, Engineering and
Technical Sevices—Management
Control, which was cancelled in 1990.
• Delete a reference listing of DoD
publications that govern the conduct of
audits at DFARS 237.270. This list will
be relocated to the new DFARS
companion resource, Procedures,
Guidance, and Information, available at
https://www.acq.osd.mil/dpap/dars/pgi.
• Delete obsolete text on management
controls and requesting activity
responsibilities at DFARS 237.271 and
237.272. This text was based on OMB
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Circular A–120, Guidelines for the Use
of Advisory and Assistance Services,
which was rescinded in 1993. OMB
Circular A–120 was replaced by OFPP
Policy Letter 93–1, Management
Oversight of Service Contracting, which
is implemented in FAR Subpart 37.5.
This rule was not subject to Office of
Management and Budget review under
Executive Order 12866, dated
September 30, 1993.
B. 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 the rule makes no significant
change to contracting policy. Therefore,
DoD has not performed an initial
regulatory flexibility analysis. DoD
invites comments from small businesses
and other interested parties. DoD also
will consider comments from small
entities concerning the affected DFARS
subpart in accordance with 5 U.S.C.
610. Such comments should be
submitted separately and should cite
DFARS Case 2003–D042.
C. Paperwork Reduction Act
The Paperwork Reduction Act does
not apply because the rule does not
impose any information collection
requirements that require the approval
of the Office of Management and Budget
under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Part 237
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
Therefore, DoD proposes to amend 48
CFR part 237 as follows:
PART 237—SERVICE CONTRACTING
1. The authority citation for 48 CFR
part 237 continues to read as follows:
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
237.201 and 237.203
[Removed]
2. Sections 237.201 and 237.203 are
removed.
3. Section 237.270 is revised to read
as follows:
237.270
Acquisition of audit services.
(a) General policy.
(1) Do not contract for audit services
unless—
(i) The cognizant DoD audit
organization determines that expertise
required to perform the audit is not
available within the DoD audit
organization; or
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]]>Agencies
[Federal Register Volume 70, Number 34 (Tuesday, February 22, 2005)]
[Proposed Rules]
[Pages 8560-8562]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-3201]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
48 CFR Parts 225 and 252
[DFARS Case 2003-D021]
Defense Federal Acquisition Regulation Supplement; Acquisition of
Ball and Roller Bearings
AGENCY: Department of Defense (DoD).
ACTION: Proposed rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: DoD is proposing to amend the Defense Federal Acquisition
Regulation Supplement (DFARS) to update text pertaining to restrictions
on the acquisition of foreign ball and roller bearings. This proposed
rule is a result of a transformation initiative undertaken by DoD to
dramatically change the purpose and content of the DFARS.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before April 25, 2005, to be considered
in the formation of the final rule.
ADDRESSES: You may submit comments, identified by DFARS Case 2003-D021,
using any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Defense Acquisition Regulations Web Site: https://
emissary.acq.osd.mil/dar/dfars.nsf/pubcomm. Follow the instructions for
submitting comments.
E-mail: dfars@osd.mil. Include DFARS Case 2003-D021 in the
subject line of the message.
Fax: (703) 602-0350.
Mail: Defense Acquisition Regulations Council, Attn: Ms.
Amy Williams, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense Pentagon,
Washington, DC 20301-3062.
Hand Delivery/Courier: Defense Acquisition Regulations
Council, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA
22202-3402.
All comments received will be posted to https://
emissary.acq.osd.mil/dar/dfars.nsf.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, (703) 602-0328.
SUPPLEMENTARY INFORMATION:
A. Background
This proposed rule is a result of DFARS Transformation, which is a
major DoD initiative to dramatically change the purpose and content of
the DFARS. The objective is to improve the efficiency and effectiveness
of the acquisition process, while allowing acquisition workforce the
flexibility to innovate. The transformed DFARS will contain only
requirements of law, DoD-wide policies, delegations of FAR authorities,
deviations from FAR requirements, and policies/procedures that have a
significant effect beyond the internal operating procedures of DoD or a
significant cost or administrative impact on contractors or offerors.
Additional information on the DFARS Transformation initiative is
available at https://www.acq.osd.mil/dpap/dfars/transf.htm.
10 U.S.C. 2534 and annual Defense appropriations acts contain
restrictions on the acquisition of foreign ball and roller bearings.
These restrictions are implemented in DFARS 225.7009 and in the clause
at DFARS 252.225-7016, Restriction on Acquisition of Ball and Roller
Bearings. This rule proposes to clarify DFARS 225.7009 and 252.225-7016
by (1) only addressing the exceptions, waivers, and waiver authority
available to the contracting officer under current law; and (2)
applying the exception to 10 U.S.C. 2534, authorized by Section 8003 of
the Federal Acquisition Streamlining Act of 1994 (Public Law 103-355;
41 U.S.C. 430), as implemented at DFARS 212.504(a)(xviii), to bearings
that are commercial components of non-commercial end items or
components.
The only exception to the annual Defense appropriations act
restrictions on the acquisition of foreign bearings is the exception
for contracts or subcontracts for the acquisition of commercial items,
except for commercial ball and roller bearings acquired as end items.
10 U.S.C. 2534, as currently implemented at DFARS 225.7009-2(a)(2),
provides an exception for commercial items incorporating ball or roller
bearings. This exception does not apply to bearings that are commercial
components of a non-commercial item. However, as a result of Section
8003 of the Federal Acquisition Streamlining Act of 1994, DFARS
212.504(a)(xviii) lists 10 U.S.C. 2534 as a law that is not applicable
to subcontracts at any tier for the acquisition of commercial items.
Applying this ``any tier'' interpretation to bearings would be
consistent with the annual Defense appropriations acts' commercial item
exception, and would provide a single consistent exception to the
statutory restrictions on the acquisition of foreign bearings.
The annual Defense appropriations acts allow the Secretary of a
military department to waive bearing domestic source restrictions on a
case-by-case basis. The justification for the waiver must establish
that (1) adequate domestic supplies are not available to meet DoD
requirements on a timely basis; and (2) such an acquisition must
[[Page 8561]]
be made in order to acquire capability for national security purposes.
The waiver authorities of 10 U.S.C. 2354 are unusable, except to the
extent that they can also meet the waiver requirements of the annual
Defense appropriations acts. Therefore, this proposed rule eliminates
from the DFARS the exceptions and waivers authorized by 10 U.S.C. 2534,
that are rendered ineffective by the overriding restrictions of the
annual Defense appropriations acts.
The current DFARS also includes several more restrictive waiver
requirements that derive from the 1992 DFARS. These waiver requirements
relate to multiyear acquisitions and miniature and instrument ball
bearings. Although 10 U.S.C. 2534(a) imposes the restrictions of the
1992 DFARS, 10 U.S.C. 2534(d) provides new waiver authority that
supersedes the prior more restrictive waiver authority of the 1992
DFARS. This rule proposes to remove the 1992 waiver restrictions from
the DFARS, which would substantially reduce paperwork burden for
contractors.
This rule was not subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993.
B. Regulatory Flexibility Act
The proposed rule may 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 it permits
the acquisition of foreign commercial bearings that are components of
noncommercial items. Although existing language at DFARS
212.504(a)(xviii) provides that 10 U.S.C. 2534 is not applicable to
subcontracts at any tier for the acquisition of commercial items, DoD
is not certain to what extent this authority has been implemented due
to the inconsistent requirements in DFARS Part 225. This proposed rule
resolves that inconsistency. An initial regulatory flexibility analysis
has been prepared and is summarized as follows:
This proposed rule establishes a consistent exception to
restrictions on the acquisition of foreign ball and roller bearings, to
apply to the acquisition of commercial bearings. The objective of the
proposed rule is to increase clarity of the regulations and reduce
administrative burden for DoD contractors. The legal basis for the
proposed rule is 10 U.S.C. 2534; Section 8059 of the Defense
Appropriations Act for Fiscal Year 2005 (Pub. L. 108-287); and Section
8003 of the Federal Acquisition Streamlining Act of 1994 (Pub. L. 103-
355; 41 U.S.C. 430). The proposed rule will apply to manufacturers of
commercial bearings, and manufacturers of noncommercial products that
incorporate commercial bearings. Manufacturers of domestic commercial
bearings may face increased competition from foreign commercial bearing
manufacturers, but manufacturers of noncommercial products
incorporating bearings will be relieved of extensive administrative
burdens in tracking the source of commercial bearings and requesting
waivers from domestic source requirements. All entities will benefit
from the increased simplicity and clarity of the regulations.
A copy of the analysis may be obtained from the point of contact
specified herein. DoD invites comments from small businesses and other
interested parties. DoD also will consider comments from small entities
concerning the affected DFARS subparts in accordance with 5 U.S.C. 610.
Such comments should be submitted separately and should cite DFARS Case
2003-D021.
C. Paperwork Reduction Act
The information collection and recordkeeping requirements of the
clause at 252.225-7016, Restriction on Acquisition of Ball and Roller
Bearings, are approved through March 31, 2007, under Office of
Management and Budget Clearance 0704-0229. The proposed changes will
reduce the estimated annual burden on contractors by 301,600 hours.
List of Subjects in 48 CFR Parts 225 and 252
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
Therefore, DoD proposes to amend 48 CFR Parts 225 and 252 as
follows:
PART 225--FOREIGN ACQUISITION
1. The authority citation for 48 CFR Parts 225 and 252 continues to
read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
2. Sections 225.7009-1 through 225.7009-4 are revised to read as
follows:
225.7009-1 Scope.
This section implements--
(a) 10 U.S.C. 2534; and
(b) Section 8064 of the Fiscal Year 2001 DoD Appropriations Act
(Public Law 106-259) and similar sections in subsequent DoD
appropriations acts.
225.7009-2 Restriction.
Do not acquire ball and roller bearings or bearing components
unless the bearings and bearing components are manufactured in the
United States or Canada.
225.7009-3 Exception.
The restriction in 225.7009-2 does not apply to contracts or
subcontracts for the acquisition of commercial items, except for
commercial ball and roller bearings acquired as end items.
225.7009-4 Waiver.
The Secretary of the department responsible for acquisition may
waive the restriction in 225.7009-2, on a case-by-case basis, by
certifying to the House and Senate Committees on Appropriations that--
(a) Adequate domestic supplies are not available to meet DoD
requirements on a timely basis; and
(b) The acquisition must be made in order to acquire capability for
national security purposes.
3. Section 225.7009-5 is added to read as follows:
225.7009-5 Contract clause.
Use the clause at 252.225-7016, Restriction on Acquisition of Ball
and Roller Bearings, in solicitations and contracts, unless--
(a) The items being acquired are commercial items other than ball
or roller bearings acquired as end items;
(b) The items being acquired do not contain ball and roller
bearings; or
(c) A waiver has been granted in accordance with 225.7009-4.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
252.212-7001 [Amended]
4. Section 252.212-7001 is amended as follows:
a. By revising the clause date to read ``(XXX 2005)'';
b. In paragraph (b), in entry ``252.225-7016'', by removing ``(MAY
2004)'' and adding in its place ``(XXX 2005)''; and
c. In paragraph (b), in entry ``252.225-7016'', by removing ``(APR
2003)'' and adding in its place ``(XXX 2005)''.
5. Section 252.225-7016 is revised to read as follows:
252.225-7016 Restriction on Acquisition of Ball and Roller Bearings.
As prescribed in 225.7009-5, use the following clause:
Restriction on Acquisition of Ball and Roller Bearings (XXX 2005)
(a) Definition. Bearing components, as used in this clause,
means the bearing element, retainer, inner race, or outer race.
[[Page 8562]]
(b) Except as provided in paragraph (c) of this clause, all ball
and roller bearings and ball and roller bearing components delivered
under this contract, either as end items or components of end items,
shall be wholly manufactured in the United States or Canada. Unless
otherwise specified, raw materials, such as preformed bar, tube, or
rod stock and lubricants, need not be mined or produced in the
United States or Canada.
(c) The restriction in paragraph (b) of this clause does not
apply to ball or roller bearings that are acquired as components
if--
(1) The end items or components containing ball or roller
bearings are commercial items; or
(2) The ball or roller bearings are commercial components.
(d) The restriction in paragraph (b) of this clause may be
waived upon request from the Contractor in accordance with
subsection 225.7009-4 of the Defense Federal Acquisition Regulation
Supplement.
(e) The Contractor shall insert the substance of this clause,
including this paragraph (e), in all subcontracts, except those
for--
(1) Commercial items; or
(2) Items that do not contain ball or roller bearings.
(End of clause)
[FR Doc. 05-3201 Filed 2-18-05; 8:45 am]
BILLING CODE 5001-08-P
