Defense Federal Acquisition Regulation Supplement: Buy American and Balance of Payments Program-Clause Prescription (DFARS Case 2015-D037), 17047-17048 [2016-06723]

Agencies

• Defense Acquisition Regulations System
• DEPARTMENT OF DEFENSE

[Federal Register Volume 81, Number 58 (Friday, March 25, 2016)]
[Rules and Regulations]
[Pages 17047-17048]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-06723]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 225

[Docket DARS-2015-0053]
RIN 0750-AI77


Defense Federal Acquisition Regulation Supplement: Buy American 
and Balance of Payments Program--Clause Prescription (DFARS Case 2015-
D037)

AGENCY: Defense Acquisition Regulations System, Department of Defense 
(DoD).

ACTION: Final rule.

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SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to clarify how the clause 
prescription addresses applicability when an exception to the Buy 
American statute or Balance of Payments Program applies.

DATES: Effective March 25, 2016.

FOR FURTHER INFORMATION CONTACT: Mr. Christopher Stiller, telephone 
571-372-6176.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD published a proposed rule in the Federal Register at 80 FR 
72672 on November 20, 2015, to revise the DFARS to clarify when it is 
appropriate to omit DFARS clause 252.225-7001 with regard to exceptions 
to the Buy American statute and Balance of Payment Program. There were 
no public comments submitted in response to the proposed rule. There 
are no changes from the proposed rule made in the final rule.

II. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold and for Commercial Items, Including Commercially Available 
Off-the-Shelf Items

    The clause at DFARS 252.225-7001, Buy American Act and Balance of 
Payments Program, applies to acquisitions at or below the simplified 
acquisition threshold and for commercial items, including commercially 
available off-the-shelf items. This rule merely clarifies when it is 
appropriate to omit DFARS clause 252.225-7001 in accordance with 
existing exceptions to the Buy American statute and Balance of Payment 
Program.

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 (FRFA) has been prepared 
consistent with the Regulatory Flexibility Act, 5 U.S.C. 601, et seq. 
The FRFA is summarized as follows:

[[Page 17048]]

    This rule is necessary to ensure that contracting officers do not 
mistakenly omit the clause at DFARS 252.225-7001, Buy American and 
Balance of Payments Program, when it is appropriate for inclusion in a 
solicitation and contract. The objective of the rule is to clarify the 
prescription for use of DFARS clause 252.225-7001 to state that the 
clause does not apply when the acquisition is for supplies for use 
either within the United States and an exception to the Buy American 
statute applies, or outside the United States and an exception to the 
Balance of Payments Program applies.
    There were no significant issues raised by the public in response 
to the initial regulatory flexibility analysis.
    This rule will apply to small entities that are awarded contracts 
that contain DFARS clause 252.225-7001; however, there is no impact on 
these small entities because the rule merely clarifies the clause 
prescription to correctly address applicability when an exception to 
the Buy American statute or Balance of Payments Program applies.
    The rule does not impose any additional reporting, recordkeeping, 
or other compliance requirements.
    No alternatives were identified that will accomplish the objectives 
of the rule.

IV. 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 225

    Government procurement.

Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR part 225 is amended as follows:

PART 225--FOREIGN ACQUISITION

0
1. The authority citation for part 225 continues to read as follows:

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


225.1100  [Amended]

0
2. In section 225.1100, remove ``Subparts'' in two places and add 
``subparts'' in their place.

0
3. Amend section 225.1101 by--
0
a. Revising paragraph (2)(i)(C);
0
b. Redesignating paragraphs (2)(i)(D) and (E) as paragraphs (2)(i)(E) 
and (F); and
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c. Adding a new paragraph (2)(i)(D).
    The revision and addition read as follows:


225.1101  Acquisition of supplies.

* * * * *
    (2)(i) * * *
    (C) The acquisition is for supplies for use within the United 
States and an exception to the Buy American statute applies, e.g., 
nonavailability or public interest (see FAR 25.103 and 225.103);
    (D) The acquisition is for supplies for use outside the United 
States and an exception to the Balance of Payments Program applies (see 
225.7501);
* * * * *
[FR Doc. 2016-06723 Filed 3-24-16; 8:45 am]
 BILLING CODE 5001-06-P