Defense Federal Acquisition Regulation Supplement; Restriction on Carbon, Alloy, and Armor Steel Plate (DFARS Case 2005-D002), 75893-75894 [E6-21511]
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Federal Register / Vol. 71, No. 243 / Tuesday, December 19, 2006 / Rules and Regulations
232.502–1
[Amended]
b. In paragraph (f)(1) by removing
‘‘$500,000’’ and adding in its place
‘‘$550,000’’.
I
13. Section 232.502–1 is amended in
paragraph (b)(1) by removing ‘‘$50,000’’
and adding in its place ‘‘$55,000’’.
I
252.232–7009
[Amended]
I
19. Section 252.232–7009 is amended
as follows:
I a. By revising the clause date to read
‘‘(DEC 2006)’’; and
I b. By removing ‘‘$2,500’’ and adding
in its place ‘‘the micro-purchase
threshold in Part 2 of the Federal
Acquisition Regulation,’’.
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
252.249–7002
PART 237—SERVICE CONTRACTING
237.170–2
[Amended]
14. Section 237.170–2 is amended in
paragraphs (a)(1) and (2) by removing
‘‘$50,000,000’’ and adding in its place
‘‘$78.5 million’’.
15. Section 252.209–7004 is amended
by revising the clause date and
paragraph (a) to read as follows:
252.209–7004 Subcontracting with Firms
That are Owned or Controlled by the
Government of a Terrorist Country.
*
*
*
*
[FR Doc. E6–21513 Filed 12–18–06; 8:45 am]
BILLING CODE 5001–08–P
Subcontracting With Firms That are
Owned or Controlled by the
Government of a Terrorist Country (Dec
2006)
(a) Unless the Government determines
that there is a compelling reason to do
so, the Contractor shall not enter into
any subcontract in excess of $30,000
with a firm, or a subsidiary of a firm,
that is identified in the Excluded Parties
List System as being ineligible for the
award of Defense contracts or
subcontracts because it is owned or
controlled by the government of a
terrorist country.
*
*
*
*
*
252.225–7003
[Amended]
20. Section 252.249–7002 is amended
as follows:
I a. By revising the clause date to read
‘‘(DEC 2006)’’; and
I b. In paragraph (d)(1) by removing
‘‘$500,000’’ and adding in its place
‘‘$550,000’’.
I
I
*
I
[Amended]
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 225 and 252
RIN 0750–AF17
Defense Federal Acquisition
Regulation Supplement; Restriction on
Carbon, Alloy, and Armor Steel Plate
(DFARS Case 2005–D002)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
ACTION: Final rule.
AGENCY:
16. Section 252.225–7003 is amended
as follows:
I a. By revising the clause date to read
‘‘(DEC 2006)’’;
I b. In paragraph (b)(1) by removing
‘‘$10 million’’ and adding in its place
‘‘$11.5 million’’; and
I c. In paragraph (b)(2)(i) by removing
‘‘$500,000’’ and adding in its place
‘‘$550,000’’.
SUMMARY: DoD has issued a final rule
amending the Defense Federal
Acquisition Regulation Supplement
(DFARS) to clarify the restriction on the
acquisition of foreign carbon, alloy, or
armor steel plate. The restriction
implements provisions of annual DoD
appropriations acts.
DATES: Effective Date: December 19,
2006.
252.225–7004
FOR FURTHER INFORMATION CONTACT:
I
[Amended]
17. Section 252.225–7004 is amended
as follows:
I a. By revising the clause date to read
‘‘(DEC 2006)’’; and
I b. In paragraph (b)(1) by removing
‘‘$500,000’’ and adding in its place
‘‘$550,000’’.
cprice-sewell on PROD1PC66 with RULES
I
252.225–7006
[Amended]
18. Section 252.225–7006 is amended
as follows:
I a. By revising the clause date to read
‘‘(DEC 2006)’’; and
I
VerDate Aug<31>2005
14:56 Dec 18, 2006
Jkt 211001
Ms.
Amy Williams, Defense Acquisition
Regulations System, OUSD (AT&L)
DPAP (DARS), IMD 3C132, 3062
Defense Pentagon, Washington, DC
20301–3062. Telephone (703) 602–0328;
facsimile (703) 602–0350. Please cite
DFARS Case 2005–D002.
SUPPLEMENTARY INFORMATION:
A. Background
Section 8111 of the Fiscal Year 1992
DoD Appropriations Act (Pub. L. 102–
172) and similar sections in subsequent
PO 00000
Frm 00043
Fmt 4700
Sfmt 4700
75893
DoD Appropriations Acts (the most
recent being Section 8024 of Pub. L.
109–289) contain a restriction on the
acquisition of carbon, alloy, or armor
steel plate, that is not melted and rolled
in the United States or Canada, for use
in any Government-owned facility or
property under the control of the
Department of Defense. This restriction
is implemented in the DFARS at
225.7011–1 through 225.7011–3 and in
the corresponding contract clause at
252.225–7030.
DoD published a proposed rule at 70
FR 73189 on December 9, 2005, to
clarify the applicability of the
restriction. Two respondents provided
comments on the proposed rule. One of
the respondents applauded DoD’s
initiative to clarify the restriction and
recommended adoption of the rule as
proposed. The other respondent raised
two issues regarding the proposed rule.
A discussion of these issues is provided
below.
1. Property under the control of DoD.
The respondent interpreted the statutory
phrase ‘‘property under the control of
the Department of Defense’’ to mean
personal property as well as real
property, and recommended
amendment of the rule to reflect this
interpretation.
DoD has not adopted this
recommendation, as DoD believes that
limitation of the restriction to real
property is consistent with the statutory
provisions; and that, if the statutory
phrase ‘‘for use in any * * * property
under the control of the Department of
Defense’’ were intended to include all
personal property controlled by DoD,
the words of the statute ‘‘for use in any
Government-owned facility’’ would be
without added meaning. The current
interpretation of the statute has been in
use since 1992 without objection.
2. Use as a raw material. The
respondent stated that the rule’s
limitation of the restriction to plate used
as a ‘‘raw material’’ sets a limitation that
does not appear in the statute. In
addition, the respondent stated that
carbon, alloy, and armor steel plate is
not a ‘‘raw material’’; it is a finished
steel mill product that can be used ‘‘as
is’’ in certain applications or as an
intermediate material for the fabrication
of other products. Therefore, the
respondent recommended that the
phrase ‘‘as a raw material’’ be removed
from the rule.
DoD notes that the phrase ‘‘as a raw
material’’ has been in the clause at
252.225–7030 since 1992 without
objection. The phrase was added to the
clause as a result of a public comment
submitted by an industry association in
response to the interim rule published
E:\FR\FM\19DER1.SGM
19DER1
75894
Federal Register / Vol. 71, No. 243 / Tuesday, December 19, 2006 / Rules and Regulations
at 57 FR 14988 on April 23, 1992
(Defense Acquisition Circular 91–2,
Item XI). The industry association did
not believe that the statute was intended
to apply to end items (hardware)
delivered to the Government and used
in Government facilities. The
association recommended revision of
the prescriptive language to require
application of the clause to only those
contracts for the direct acquisition of
carbon, alloy, or armor steel plate. As a
result, the final rule published at 57 FR
53596 on November 12, 1992 (Defense
Acquisition Circular 91–4, Item XI),
required application of the clause to
carbon, alloy, and armor steel plate
furnished as a deliverable under the
contract or purchased by the contractor
as a raw material. The statutory
language addressing use of the plate in
a Government-owned facility or
property under the control of DoD
expresses an intent not to apply the
restriction to the manufacture of items
in the plants of commercial contractors.
For example, the restriction should not
apply if a contractor acquires a machine
tool for use in a Government-owned
facility, if the machine tool is
manufactured by another contractor in a
facility that is not Government-owned.
DoD has amended the rule to make this
concept clearer, without use of the term
‘‘raw material’’.
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 certifies that this final rule will
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.,
because the rule clarifies existing policy
regarding the statutory restriction on the
acquisition of foreign carbon, alloy, or
armor steel plate.
C. Paperwork Reduction Act
1. The authority citation for 48 CFR
parts 225 and 252 continues to read as
follows:
I
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
PART 225—FOREIGN ACQUISITION
2. Section 225.7011–1 is revised to
read as follows:
I
225.7011–1
Restriction.
(a) In accordance with Section 8111 of
the Fiscal Year 1992 DoD
Appropriations Act (Pub. L. 102–172)
and similar sections in subsequent DoD
appropriations acts, do not acquire any
of the following types of carbon, alloy,
or armor steel plate for use in a
Government-owned facility or a facility
under the control of (e.g., leased by)
DoD, unless it is melted and rolled in
the United States or Canada:
(1) Carbon, alloy, or armor steel plate
in Federal Supply Class 9515.
(2) Carbon, alloy, or armor steel plate
described by specifications of the
American Society for Testing Materials
or the American Iron and Steel Institute.
(b) This restriction—
(1) Applies to the acquisition of
carbon, alloy, or armor steel plate as a
finished steel mill product that may be
used ‘‘as is’’ or may be used as an
intermediate material for the fabrication
of an end product; and
(2) Does not apply to the acquisition
of an end product (e.g., a machine tool),
to be used in the facility, that contains
carbon, alloy, or armor steel plate as a
component.
I 3. Section 225.7011–3 is amended by
revising paragraph (a) to read as follows:
225.7011–3
Contract clause.
*
*
*
*
*
(a) Require the delivery to the
Government of carbon, alloy, or armor
steel plate that will be used in a
Government-owned facility or a facility
under the control of DoD; or
*
*
*
*
*
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
List of Subjects in 48 CFR Parts 225 and
252
cprice-sewell on PROD1PC66 with RULES
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.
252.225–7030 Restriction on Acquisition
of Carbon, Alloy, and Armor Steel Plate.
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR parts 225 and 252
are amended as follows:
I
VerDate Aug<31>2005
14:56 Dec 18, 2006
Jkt 211001
United States or Canada if the carbon,
alloy, or armor steel plate—
(1) Is in Federal Supply Class 9515 or
is described by specifications of the
American Society for Testing Materials
or the American Iron and Steel Institute;
and
(2)(i) Will be delivered to the
Government for use in a Governmentowned facility or a facility under the
control of the Department of Defense; or
(ii) Will be purchased by the
Contractor for use in a Governmentowned facility or a facility under the
control of the Department of Defense.
(b) This restriction—
(1) Applies to the acquisition of
carbon, alloy, or armor steel plate as a
finished steel mill product that may be
used ‘‘as is’’ or may be used as an
intermediate material for the fabrication
of an end product; and
(2) Does not apply to the acquisition
of an end product (e.g., a machine tool),
to be used in the facility, that contains
carbon, alloy, or armor steel plate as a
component.
(End of clause)
[FR Doc. E6–21511 Filed 12–18–06; 8:45 am]
BILLING CODE 5001–08–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 622
[Docket No. 990506119–9236–02; I.D.
121106C]
Fisheries of the Caribbean, Gulf of
Mexico, and South Atlantic; Reef Fish
Fishery of the Gulf of Mexico; Closure
of the 2006 Red Snapper Commercial
Fishery
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Temporary rule; closure.
AGENCY:
As prescribed in 225.7011–3, use the
following clause:
SUMMARY: NMFS closes the commercial
fishery for red snapper in the exclusive
economic zone (EEZ) of the Gulf of
Mexico. NMFS has determined the fall
portion of the annual commercial quota
for red snapper will have been reached
by December 26, 2006. This closure is
necessary to protect the red snapper
resource.
Restriction on Acquisition of Carbon,
Alloy, and Armor Steel Plate (DEC
2006)
(a) Carbon, alloy, and armor steel
plate shall be melted and rolled in the
Closure is effective noon, local
time, December 26, 2006, until 12:01
a.m., local time, on January 1, 2007.
FOR FURTHER INFORMATION CONTACT:
Jason Rueter, telephone 727–824–5350,
4. Section 252.225–7030 is revised to
read as follows:
I
PO 00000
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Fmt 4700
Sfmt 4700
DATES:
E:\FR\FM\19DER1.SGM
19DER1
]]>Agencies
[Federal Register Volume 71, Number 243 (Tuesday, December 19, 2006)]
[Rules and Regulations]
[Pages 75893-75894]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-21511]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 225 and 252
RIN 0750-AF17
Defense Federal Acquisition Regulation Supplement; Restriction on
Carbon, Alloy, and Armor Steel Plate (DFARS Case 2005-D002)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: DoD has issued a final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to clarify the restriction on
the acquisition of foreign carbon, alloy, or armor steel plate. The
restriction implements provisions of annual DoD appropriations acts.
DATES: Effective Date: December 19, 2006.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, Defense Acquisition
Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3C132, 3062 Defense
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0328;
facsimile (703) 602-0350. Please cite DFARS Case 2005-D002.
SUPPLEMENTARY INFORMATION:
A. Background
Section 8111 of the Fiscal Year 1992 DoD Appropriations Act (Pub.
L. 102-172) and similar sections in subsequent DoD Appropriations Acts
(the most recent being Section 8024 of Pub. L. 109-289) contain a
restriction on the acquisition of carbon, alloy, or armor steel plate,
that is not melted and rolled in the United States or Canada, for use
in any Government-owned facility or property under the control of the
Department of Defense. This restriction is implemented in the DFARS at
225.7011-1 through 225.7011-3 and in the corresponding contract clause
at 252.225-7030.
DoD published a proposed rule at 70 FR 73189 on December 9, 2005,
to clarify the applicability of the restriction. Two respondents
provided comments on the proposed rule. One of the respondents
applauded DoD's initiative to clarify the restriction and recommended
adoption of the rule as proposed. The other respondent raised two
issues regarding the proposed rule. A discussion of these issues is
provided below.
1. Property under the control of DoD. The respondent interpreted
the statutory phrase ``property under the control of the Department of
Defense'' to mean personal property as well as real property, and
recommended amendment of the rule to reflect this interpretation.
DoD has not adopted this recommendation, as DoD believes that
limitation of the restriction to real property is consistent with the
statutory provisions; and that, if the statutory phrase ``for use in
any * * * property under the control of the Department of Defense''
were intended to include all personal property controlled by DoD, the
words of the statute ``for use in any Government-owned facility'' would
be without added meaning. The current interpretation of the statute has
been in use since 1992 without objection.
2. Use as a raw material. The respondent stated that the rule's
limitation of the restriction to plate used as a ``raw material'' sets
a limitation that does not appear in the statute. In addition, the
respondent stated that carbon, alloy, and armor steel plate is not a
``raw material''; it is a finished steel mill product that can be used
``as is'' in certain applications or as an intermediate material for
the fabrication of other products. Therefore, the respondent
recommended that the phrase ``as a raw material'' be removed from the
rule.
DoD notes that the phrase ``as a raw material'' has been in the
clause at 252.225-7030 since 1992 without objection. The phrase was
added to the clause as a result of a public comment submitted by an
industry association in response to the interim rule published
[[Page 75894]]
at 57 FR 14988 on April 23, 1992 (Defense Acquisition Circular 91-2,
Item XI). The industry association did not believe that the statute was
intended to apply to end items (hardware) delivered to the Government
and used in Government facilities. The association recommended revision
of the prescriptive language to require application of the clause to
only those contracts for the direct acquisition of carbon, alloy, or
armor steel plate. As a result, the final rule published at 57 FR 53596
on November 12, 1992 (Defense Acquisition Circular 91-4, Item XI),
required application of the clause to carbon, alloy, and armor steel
plate furnished as a deliverable under the contract or purchased by the
contractor as a raw material. The statutory language addressing use of
the plate in a Government-owned facility or property under the control
of DoD expresses an intent not to apply the restriction to the
manufacture of items in the plants of commercial contractors. For
example, the restriction should not apply if a contractor acquires a
machine tool for use in a Government-owned facility, if the machine
tool is manufactured by another contractor in a facility that is not
Government-owned. DoD has amended the rule to make this concept
clearer, without use of the term ``raw material''.
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 certifies that this final rule will 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.,
because the rule clarifies existing policy regarding the statutory
restriction on the acquisition of foreign carbon, alloy, or armor steel
plate.
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 Parts 225 and 252
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
0
Therefore, 48 CFR parts 225 and 252 are amended as follows:
0
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.
PART 225--FOREIGN ACQUISITION
0
2. Section 225.7011-1 is revised to read as follows:
225.7011-1 Restriction.
(a) In accordance with Section 8111 of the Fiscal Year 1992 DoD
Appropriations Act (Pub. L. 102-172) and similar sections in subsequent
DoD appropriations acts, do not acquire any of the following types of
carbon, alloy, or armor steel plate for use in a Government-owned
facility or a facility under the control of (e.g., leased by) DoD,
unless it is melted and rolled in the United States or Canada:
(1) Carbon, alloy, or armor steel plate in Federal Supply Class
9515.
(2) Carbon, alloy, or armor steel plate described by specifications
of the American Society for Testing Materials or the American Iron and
Steel Institute.
(b) This restriction--
(1) Applies to the acquisition of carbon, alloy, or armor steel
plate as a finished steel mill product that may be used ``as is'' or
may be used as an intermediate material for the fabrication of an end
product; and
(2) Does not apply to the acquisition of an end product (e.g., a
machine tool), to be used in the facility, that contains carbon, alloy,
or armor steel plate as a component.
0
3. Section 225.7011-3 is amended by revising paragraph (a) to read as
follows:
225.7011-3 Contract clause.
* * * * *
(a) Require the delivery to the Government of carbon, alloy, or
armor steel plate that will be used in a Government-owned facility or a
facility under the control of DoD; or
* * * * *
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
4. Section 252.225-7030 is revised to read as follows:
252.225-7030 Restriction on Acquisition of Carbon, Alloy, and Armor
Steel Plate.
As prescribed in 225.7011-3, use the following clause:
Restriction on Acquisition of Carbon, Alloy, and Armor Steel Plate (DEC
2006)
(a) Carbon, alloy, and armor steel plate shall be melted and rolled
in the United States or Canada if the carbon, alloy, or armor steel
plate--
(1) Is in Federal Supply Class 9515 or is described by
specifications of the American Society for Testing Materials or the
American Iron and Steel Institute; and
(2)(i) Will be delivered to the Government for use in a Government-
owned facility or a facility under the control of the Department of
Defense; or
(ii) Will be purchased by the Contractor for use in a Government-
owned facility or a facility under the control of the Department of
Defense.
(b) This restriction--
(1) Applies to the acquisition of carbon, alloy, or armor steel
plate as a finished steel mill product that may be used ``as is'' or
may be used as an intermediate material for the fabrication of an end
product; and
(2) Does not apply to the acquisition of an end product (e.g., a
machine tool), to be used in the facility, that contains carbon, alloy,
or armor steel plate as a component.
(End of clause)
[FR Doc. E6-21511 Filed 12-18-06; 8:45 am]
BILLING CODE 5001-08-P
