Defense Federal Acquisition Regulation Supplement: Strategic and Critical Materials Stock Piling Act Reform (DFARS Case 2023-D014), 66286 [2024-18107]

Agencies

• Defense Acquisition Regulations System
• DEPARTMENT OF DEFENSE

[Federal Register Volume 89, Number 158 (Thursday, August 15, 2024)]
[Rules and Regulations]
[Page 66286]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-18107]



[[Page 66286]]

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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 225

[Docket DARS-2024-0024]
RIN 0750-AL87


Defense Federal Acquisition Regulation Supplement: Strategic and 
Critical Materials Stock Piling Act Reform (DFARS Case 2023-D014)

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 implement a section of the 
National Defense Authorization Act for Fiscal Year 2023 that revises 
the name of the Strategic Materials Protection Board.

DATES: Effective August 15, 2024.

FOR FURTHER INFORMATION CONTACT: Kimberly Bass, telephone 703-717-3446.

SUPPLEMENTARY INFORMATION:

I. Background

    This final rule revises the DFARS to implement section 1411 of the 
National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2023 
(Pub. L. 117-263). Section 1411 repeals 10 U.S.C. 187, which 
established the Strategic Materials Protection Board, and amends 
section 10 of the Strategic and Critical Materials Stock Piling Act (50 
U.S.C. 98h-1) to establish the Strategic and Critical Materials Board 
of Directors. Therefore, this final rule removes the name ``Strategic 
Materials Protection Board'' and inserts the new name ``Strategic and 
Critical Materials Board of Directors'' in the DFARS.

II. Publication of This Final Rule for Public Comment Is Not Required 
by Statute

    The statute that applies to the publication of the Federal 
Acquisition Regulation (FAR) is 41 U.S.C. 1707, Publication of Proposed 
Regulations. Subsection (a)(1) of the statute requires that a 
procurement policy, regulation, procedure, or form (including an 
amendment or modification thereof) must be published for public comment 
if it relates to the expenditure of appropriated funds, and has either 
a significant effect beyond the internal operating procedures of the 
agency issuing the policy, regulation, procedure, or form, or has a 
significant cost or administrative impact on contractors or offerors. 
This final rule is not required to be published for public comment, 
because the rule only revises all references to the Strategic Materials 
Protection Board in the DFARS, with no impact on contractors or 
offerors.

III. Applicability to Contracts at or Below the Simplified Acquisition 
Threshold (SAT), for Commercial Products (Including Commercially 
Available Off-the-Shelf (COTS) Items), and for Commercial Services

    This final rule does not create any new solicitation provisions or 
contract clauses. It does not impact any existing solicitation 
provisions or contract clauses or their applicability to contracts 
valued at or below the simplified acquisition threshold, for commercial 
products including COTS items, or for commercial services.

IV. 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, as amended.

V. Congressional Review Act

    As required by the Congressional Review Act (5 U.S.C. 801-808) 
before an interim or final rule takes effect, DoD will submit a copy of 
the interim or final rule with the form, Submission of Federal Rules 
under the Congressional Review Act, to the U.S. Senate, the U.S. House 
of Representatives, and the Comptroller General of the United States. A 
major rule under the Congressional Review Act cannot take effect until 
60 days after it is published in the Federal Register. The Office of 
Information and Regulatory Affairs has determined that this rule is not 
a major rule as defined by 5 U.S.C. 804.

VI. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule because 
this final rule does not constitute a significant DFARS revision within 
the meaning of FAR 1.501-1, and 41 U.S.C. 1707 does not require 
publication for public comment.

VII. Paperwork Reduction Act

    This final 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 D. Johnson,
Editor/Publisher, Defense Acquisition Regulations System.

    Therefore, the Defense Acquisition Regulations System amends 48 CFR 
part 225 as follows:

0
1. The authority citation for 48 CFR part 225 continues to read as 
follows:

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

PART 225--FOREIGN ACQUISITION

0
2. Amend section 225.7003-3 by revising paragraph (b)(1) to read as 
follows:


225.7003-3  Exceptions.

* * * * *
    (b) * * *
    (1) Electronic components, unless the Secretary of Defense, upon 
the recommendation of the Strategic and Critical Materials Board of 
Directors pursuant to 50 U.S.C. 98h-1, determines that the domestic 
availability of a particular electronic component is critical to 
national security.
* * * * *

0
3. Amend section 225.7018-3 by revising paragraph (c)(2) to read as 
follows:


225.7018-3  Exceptions.

* * * * *
    (c) * * *
    (2) An electronic device, unless the Secretary of Defense, upon the 
recommendation of the Strategic and Critical Materials Board of 
Directors pursuant to 50 U.S.C. 98h-1 determines that the domestic 
availability of a particular electronic device is critical to national 
security (but see PGI 225.7018-3(c)(2) with regard to samarium-cobalt 
magnets used in electronic components); or
* * * * *
[FR Doc. 2024-18107 Filed 8-14-24; 8:45 am]
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