Federal Acquisition Regulation: List of Domestically Nonavailable Articles, 84505-84509 [2024-24395]
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spacecraft, subject to the EAR to its
launch vehicle; and
(ii) For the spacecraft referenced in
paragraph (b)(1)(i) of this section, the
scheduled launch date must be within
six months of when the activities are
conducted.
(2) Exempted activities. The following
activities are eligible for the exemption
in this paragraph (b):
(i) The export, reexport, retransfer, or
temporary import of the following
defense articles:
(A) Electrical connectors described in
paragraph (h)(29) of USML Category IV
in part 121 of this subchapter, other
than those used in ballistic missiles; and
directly related interface control
documents;
(B) [Reserved]
(ii) Encrypting, decrypting, relaying,
or retransmitting, to or from a ground
station, unmodified telemetry for the
health, systems status, position, and
velocity of space launch vehicles
described in USML Category IV in part
121 of this subchapter;
(iii) The furnishing of assistance to a
foreign person in the operation or use of
an on-orbit defense article in support of
fundamental research as defined at
§ 120.34(a)(8) of this subchapter; and
(iv) The furnishing of assistance to a
foreign person in the operation or use of
an on-orbit defense article to geolocate
the following radiofrequency
transmissions:
(A) Emergency locator transmission
(ELT) frequencies 121.5, 243.0, and 406
MHz;
(B) Automatic identification system
(AIS) frequencies 161.975 and 162.025
MHz;
(C) Commercial VHF maritime mobile
frequencies 156 through 174 MHz; and
(D) Commercial non-satellite cellular
telephone communications specified by
the global system for mobile
communications (GSM), universal
mobile telecommunications system
(UMTS), long-term evolution (LTE), or
the following International Mobile
Telecommunications (IMT) standards:
IMT–2000 (3G), IMT-Advanced (4G), or
IMT–2020 (5G).
(c) Exemption for space tourism and
research. No license or other approval is
required for the export, reexport, or
temporary import of manned spacecraft,
subject to all of the following
restrictions:
(1) The spacecraft must be limited to
suborbital trajectories;
(2) The purpose of the activity must
be limited to either space tourism or
supporting fundamental research as
defined at § 120.34(a)(8) of this
subchapter;
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(3) The activity must not transfer
registration, control, or ownership of the
spacecraft to a foreign person; and
(4) The spacecraft’s destinations,
including planned diverts and
contingencies, must be approved by the
Federal Aviation Administration or its
foreign equivalent, and must not
include any proscribed destinations
under § 126.1 of this subchapter.
(d) Licensing of defense articles
incorporated or integrated into EAR
spacecraft. Articles described in
paragraph (c), (d), or (e) of USML
Category XV in part 121 of this
subchapter may be licensed for export,
reexport, or retransfer by the
Department of Commerce’s Bureau of
Industry and Security while they are
incorporated in, and included as an
integral part of, a spacecraft subject to
the EAR. Articles do not become eligible
for this licensing provision until
incorporated into the spacecraft subject
to the EAR. Exports, reexports,
retransfers, or temporary imports of
defense articles prior to incorporation,
and directly related technical data and
defense services, are not eligible for this
licensing provision. Replacement
articles, and articles subsequently
unincorporated from the spacecraft, are
not eligible for this licensing provision.
Bonnie D. Jenkins,
Under Secretary, Arms Control and
International Security, Department of State.
[FR Doc. 2024–24091 Filed 10–17–24; 4:15 pm]
BILLING CODE 4710–25–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Part 25
[FAR Case 2020–009, Docket No. FAR–
2020–0009, Sequence No. 1]
RIN 9000–AO07
Federal Acquisition Regulation: List of
Domestically Nonavailable Articles
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Proposed rule.
AGENCY:
DoD, GSA, and NASA are
proposing to amend the Federal
Acquisition Regulation (FAR) to revise
the list of domestically nonavailable
articles under the Buy American statute
SUMMARY:
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84505
and implement requirements related to
making future changes to the list.
DATES: Interested parties should submit
written comments to the Regulatory
Secretariat Division at the address
shown below on or before December 23,
2024 to be considered in the formation
of the final rule.
ADDRESSES: Submit comments in
response to FAR Case 2020–009 to the
Federal eRulemaking portal at https://
www.regulations.gov by searching for
‘‘FAR Case 2020–009’’. Select the link
‘‘Comment Now’’ that corresponds with
‘‘FAR Case 2020–009’’. Follow the
instructions provided on the ‘‘Comment
Now’’ screen. Please include your name,
company name (if any), and ‘‘FAR Case
2020–009’’ on your attached document.
If your comment cannot be submitted
using https://www.regulations.gov, call
or email the point of contact in the FOR
FURTHER INFORMATION CONTACT section of
this document for alternate instructions.
Instructions: Please submit comments
only and cite ‘‘FAR Case 2020–009’’ in
all correspondence related to this case.
Comments received generally will be
posted without change to https://
www.regulations.gov, including any
personal and/or business confidential
information provided. Public comments
may be submitted as an individual, as
an organization, or anonymously (see
frequently asked questions at https://
www.regulations.gov/faq). To confirm
receipt of your comment(s), please
check https://www.regulations.gov,
approximately two to three days after
submission to verify posting.
FOR FURTHER INFORMATION CONTACT: For
clarification of content, contact Ms.
Zenaida Delgado, Procurement Analyst,
at 202–969–7207 or by email at
zenaida.delgado@gsa.gov. For
information pertaining to status,
publication schedules, or alternate
instructions for submitting comments if
https://www.regulations.gov cannot be
used, contact the Regulatory Secretariat
Division at 202–501–4755 or
GSARegSec@gsa.gov. Please cite FAR
Case 2020–009.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA are proposing
to revise the list of domestically
nonavailable articles at FAR 25.104(a)
and take other actions to limit the use
of regulatory nonavailability waivers
consistent with section 9 of Executive
Order (E.O.) 14005, Ensuring the Future
Is Made in All of America by All of
America’s Workers (86 FR 7475, January
28, 2021). E.O. 14005 establishes
policies to maximize the Federal
Government’s use of goods, products,
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and materials produced in the United
States to help American businesses
compete in strategic industries and
ensure America’s workers thrive. A key
pillar of the E.O. involves reducing the
need for waivers to the Buy American
statute (41 U.S.C. chapter 83), which
generally requires that only
domestically mined, produced, or
manufactured articles be procured for
public use in the United States. The Buy
American statute provides an exception
for articles not mined, produced, or
manufactured in the United States in
sufficient and reasonably available
commercial quantities and of a
satisfactory quality.
Prior to issuance of E.O. 14005, FAR
25.103(b)(2)(i) authorized the head of
the contracting activity to make an
individual determination of
nonavailability without having to
publicly share the rationale for the
determination or the nature of the
market research conducted. The agency
simply reported to the Federal
Procurement Data System if a
nonavailability waiver was used on a
particular acquisition. In addition, a
written determination of nonavailability
was not required if the acquisition was
conducted using full and open
competition, synopsized, and no offer
for a domestic source was received. This
process made it challenging for an
existing Government contractor or
potential new entrant to become aware
if its capabilities were being overlooked.
Further, if the contracting officer
considered that the nonavailability of an
article was likely to affect future
acquisitions over a period of time, FAR
25.103(b)(2)(ii) authorized the
contracting officer to submit a copy of
the determination and supporting
documentation to the appropriate
regulatory council identified in FAR
1.201–1 (i.e., the Defense Acquisition
Regulations Council or the Civilian
Agency Acquisition Council), in
accordance with agency procedures, to
consider inclusion on the list of
nonavailable articles at FAR 25.104(a).
Inclusion of the article on the
nonavailability list reduces the level of
public outreach even further in light of
the presumption of nonavailability.
E.O. 14005 makes a number of
changes to tighten the waiver process
and strengthen efforts to increase
reliance on domestic sourcing. First,
with respect to individual waivers (see
FAR 25.103(b)(2)(i)), the E.O. updates,
centralizes, and provides transparency
to the process for their issuance. Section
4 of the E.O. established the Made in
America Office (MIAO) in the Office of
Management and Budget (OMB) to
manage a centralized process for
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reviewing proposed agency
nonavailability waivers for individual
and multiple procurements. Agencies
can no longer simply rely on the
absence of domestic offers in a
competition to justify a nonavailability
waiver. OMB Memorandum M–21–26,
Increasing Opportunities for Domestic
Sourcing and Reducing the Need for
Waivers from Made in America Laws,
and guidance issued jointly by MIAO
and the Office of Federal Procurement
Policy (OFPP), Improving the
Transparency of Made in America
Waivers (October 26, 2021), provided
direction to agencies for the
development, coordination, and posting
of waivers. In particular, the guidance
instructs agencies to describe steps the
agency has taken to understand market
capabilities and capacity to help
potential interested sources and supply
chain experts identify where
opportunities might have been missed
and could be pursued when future
needs arise. The guidance provides that
waivers will cover individual
transactions but allows agencies to
pursue multi-procurement waivers for
repetitive needs where market research
indicates that domestic capability may
be lacking for a period of time, provided
the waiver is time limited. The guidance
states that agencies should continually
study the market and reflect recent
analysis in their proposed waivers and
not assume that there is no qualifying
product simply because one was not
found in a prior year. The guidance
further directs that proposed waivers
must be posted on the
MadeinAmerica.gov website so that
interested sellers can have a better
understanding of where agencies are
having trouble finding U.S.-made
products. The guidance explains that
greater transparency should lead to a
more responsive supplier base and help
agencies build diversity by pulling new
entrants into the Federal marketplace.
DoD, GSA, and NASA will address
regulatory changes to FAR 25.103
through a future rulemaking.
Second, section 9 of E.O. 14005
creates a new oversight mechanism to
more carefully control the identification
of articles eligible for inclusion at FAR
25.104(a) (‘‘regulatory waivers’’, see
FAR 25.103(b)(1)(i)). Section 9 requires
the Director of OMB, through the
Administrator of OFPP, to consult with
the Secretary of Commerce and the
Director of MIAO regarding any changes
proposed by DoD, GSA, and NASA to
the list of nonavailable articles
identified at FAR 25.104(a). Section 9 of
E.O. 14005 requires paying particular
attention to economic analyses of
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relevant markets and available market
research, to determine whether there is
a reasonable basis to conclude that the
article, material, or supply is not mined,
produced, or manufactured in the
United States in sufficient and
reasonably available commercial
quantities and of a satisfactory quality.
DoD, GSA, and NASA are issuing this
proposed rule to implement section 9
and reduce reliance on regulatory
waivers that can disincentivize
domestic sourcing by signaling a lack of
confidence in domestic manufacturers’
capacity to meet the Federal
Government’s current demand or grow
capacity to meet future demand. A
general presumption of nonavailability
discourages the type of ongoing,
proactive engagement with industry to
understand supply chains and market
trends that is vital to strengthening
domestic manufacturing.
DoD, GSA, and NASA, in partnership
with MIAO and OFPP, have conducted
a proactive review of each of the 109
articles on the existing nonavailable
articles list. The current list of articles
identified in FAR 25.104(a) is a wideranging mix of natural resources,
compounds, materials, and other items
of supply. Although some articles on the
list have no known domestic production
sources (e.g., quartz crystals or vanilla
beans), many of the articles are known
to have some domestic production
sources, but those sources have been
determined in the past to be inadequate
to meet U.S. demand. Examples of such
articles range from bismuth (not more
than 10 percent of U.S. Government and
nongovernment demand) to spices and
herbs, in bulk, (not more than 40
percent of U.S. Government and
nongovernment demand). For additional
discussion regarding the basis for
removal of articles from the list at FAR
25.104(a), see section IV. of this
proposed rule preamble.
II. Discussion and Analysis
The following summarizes the
proposed changes to the FAR:
A. Proposed Revisions to the List at FAR
25.104(a)
DoD, GSA, and NASA are proposing
to remove numerous articles from the
nonavailability list as a general reset of
the list to remove a presumption of
nonavailability as a means to encourage
further market research and send a
signal to industry. This may mean that
contracting officers will do more market
research on domestic availability of the
removed products. It also may
encourage domestic producers to take
an interest in the articles removed from
the nonavailability list. Proposed
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removals include the following articles:
acetylene, black; agar, bulk; anise;
asbestos, amosite, chrysotile, and
crocidolite; bauxite; beef, corned,
canned; beef extract; bephenium
hydroxynaphthoate; cadmium, ores and
flue dust; calcium cyanamide; castor
beans and castor oil; chalk, English;
chicle; cinchona bark; cobalt, in
cathodes, rondelles, or other primary
ore and metal forms; colchicine
alkaloid, raw; copra; crane rail (85pound per foot); cryolite, natural;
dammar gum; diamonds, industrial,
stones and abrasives; emetine, bulk;
ergot, crude; erythrityl tetranitrate; goat
hair canvas; goat and kidskins; graphite,
natural, crystalline, crucible grade; hand
file sets (Swiss pattern); handsewing
needles; ipecac, root; iodine, crude;
kauri gum; lac; lavender oil; leather,
sheepskin, hair type; manganese;
menthol, natural bulk; mica;
microprocessor chips (brought onto a
Government construction site as
separate units for incorporation into
building systems during construction or
repair and alteration of real property);
nickel, primary, in ingots, pigs, shots,
cathodes, or similar forms; nickel oxide
and nickel salts; nux vomica, crude;
oiticica oil; olive oil; olives (green),
pitted or unpitted, or stuffed, in bulk;
opium, crude; petroleum, crude oil,
unfinished oils, and finished products;
pine needle oil; platinum and related
group metals, refined, as sponge,
powder, ingots, or cast bars; pyrethrum
flowers; quebracho; quinidine; quinine;
rabbit fur felt; radium salts, source and
special nuclear materials; rosettes;
santonin, crude; secretin; shellac;
sugars, raw; talc, block, steatite;
tantalum; thread, metallic (gold); thyme
oil; triprolidine hydrochloride;
tungsten; wax, carnauba; wire glass;
woods, logs, veneer, and lumber of the
following species: Alaskan yellow
cedar, angelique, balsa, ekki, greenheart,
lignum vitae, mahogany, and teak; yarn,
50 Denier rayon; and yeast, active dry
and instant active dry.
There is no substantial evidence that
there is a major increase in the
availability of the articles being deleted,
but there is evidence that there is
capacity for many of the articles being
removed. Review of several publications
such as periodicals from the United
States Geological Survey (USGS) shows
that for many of these articles there is
some degree of domestic capacity. For
example, according to the USGS, the
United States produces 43,000 metric
tons of mica per year, and the Economic
Research Service of the U.S. Department
of Agriculture reports that the United
States is one of the world’s largest
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producers of raw sugar. For additional
discussion regarding the basis for
removal of these articles from the list,
see section IV. of this proposed rule
preamble.
B. Proposed Protocols To Amend the
List at FAR 25.104(a)
The rule proposes adding FAR
language to implement the requirements
of section 9 of E.O. 14005 requiring
consultation with the Secretary of
Commerce and the MIAO Director prior
to any changes to the list at FAR
25.104(a). The proposed rule retains the
current standard for inclusion on the
list, which is that domestic sources can
only meet 50 percent or less of total U.S.
Government and nongovernment
demand. See FAR 25.103(b)(1)(i). It also
retains the requirement that the
procuring agency is responsible for
conducting market research appropriate
to the circumstances, including seeking
domestic sources before acquisition of
an article on the list. This applies to
acquisition of an article as either an end
product or a significant component
(valued at more than 50 percent of the
value of all the components).
Finally, the class determination for
articles on the list will continue to be
deemed inapplicable if the contracting
officer learns at any time before the time
designated for receipt of bids in sealed
bidding or final offers in negotiated
procurements that an article on the list
is available domestically in sufficient
and reasonably available commercial
quantities of a satisfactory quality to
meet the requirements of the
solicitation. See FAR 25.103(b)(1)(iii).
III. Applicability to Contracts at or
Below the Simplified Acquisition
Threshold (SAT) and for Commercial
Products (Including Commercially
Available Off-the-Shelf (COTS) Items),
or for Commercial Services
This rule does not create new
solicitation provisions or contract
clauses or impact any existing
provisions or clauses.
IV. Expected Impact of the Rule
The proposed rule would
substantially reduce the number of
articles on the list at FAR 25.104(a) that
are presumed by regulation to be
nonavailable in the United States in
sufficient and reasonably available
commercial quantities and of a
satisfactory quality. Removal of an
article from the list means that if such
articles are acquired by the agency in
the future, the agency may no longer
presume the article is not available
domestically. Instead, the agency must
submit a proposed waiver to MIAO
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explaining the basis for concluding the
article is not available domestically,
including the market research
conducted to find domestic sources, and
post the proposed waiver on
MadeinAmerica.gov. Over time,
decreased reliance on regulatory
waivers and greater use of individual
waivers that are reviewed centrally and
posted publicly should contribute to a
more dynamic, diverse, and competitive
domestic industrial base. As a general
matter, regulatory waivers
disincentivize domestic sourcing by
signaling a lack of confidence in its
capacity to meet the Federal
Government’s current demand or grow
capacity to meet future demand. Use of
individualized waivers in lieu of
regulatory waivers that are coordinated
centrally and posted for public
awareness should encourage the type of
ongoing, proactive engagement with
industry to understand supply chains
and market trends that is vital to
strengthening domestic manufacturing
and reducing the need for waivers over
time. As explained in OMB
Memorandum M–21–26 and the joint
memorandum MIAO and OFPP issued
on October 26, 2021, there are a number
of strategic advantages to central review
and posting of waivers, including: the
ability for MIAO and agencies to share
market research information and insight
that might lead to the identification of
domestic sources in future acquisitions;
the ability for agencies to send a clear
demand signal to industry of the Federal
Government’s desire to reduce reliance
on foreign-made items; the ability for
potential sources to see opportunities
for new domestic providers, and for
existing domestic providers that may
have been overlooked to see if agencies
may have missed market capabilities in
their market research; and the
opportunity for MIAO to bring greater
consistency in use of waivers across the
Government through its feedback to
agencies. The heightened transparency
provided on individual waivers can be
especially beneficial in furthering both
contractor resilience by reducing
transaction costs for potential sellers
and diversity by lowering a barrier to
entry for small businesses and new
entrants to the Federal market that may
struggle to find work opportunities.
There are 109 articles currently
subject to regulatory waiver. In the past,
DoD, GSA, and NASA have largely
relied on public comment to identify
articles that should be removed from the
list. For example, an advance notice of
proposed rulemaking was issued at 85
FR 28596 on May 13, 2020, seeking
information that would assist in
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identifying domestic capabilities and for
evaluating whether some articles on the
list at FAR 25.104(a) should be removed
because they are now mined, produced,
or manufactured in the United States in
sufficient and reasonably available
commercial quantities and of a
satisfactory quality. While public input
and insight remains an important part of
the review process, DoD, GSA, and
NASA conducted a proactive review of
each article, in consultation with MIAO
and OFPP, to determine if the
presumption of nonavailability remains
appropriate. This review will help to
ensure the list more accurately reflects
market conditions and to avoid
overlooking domestic capabilities.
Articles were identified as suitable for
removal from the list if one or more of
the following criteria were met: (i) there
is a demonstrated domestic capacity to
source the article; (ii) more limited
duration waivers with centralized
management would provide important
insight into Government supply chains,
including critical supply chains with
national or economic security
implications; (iii) there is limited
Government demand for the article; or
(iv) the articles are believed to be
obsolete.
Articles proposed for removal from
the list based on an expectation of
sufficient and reasonably available
commercial quantities include
petroleum, crude oil, unfinished oils,
and finished products, as the domestic
crude oil capacity of the United States
makes it the world’s largest producer of
crude oil according to the U.S. Energy
Information Administration. Similarly,
according to the USGS’ Mineral
Commodity Summary for Cadmium in
January 2024, the United States has
demonstrated a domestic capacity of
cadmium that has allowed it to become
a net exporter of this metal. Talc, block,
steatite is an additional article for
which, according to Mineral
Commodities Summaries for 2024, the
United States domestic capacity was
capable of meeting domestic demand.
The report indicated that the United
States’ net import reliance for talc as a
percentage of apparent consumption
was six percent in 2023. Other articles
expected to meet this criterion include:
beef, corned, canned; beef extract;
leather, sheepskin, hair type; sugars,
raw; and yeast, active dry and instant
active dry.
Articles proposed for removal from
the list based on the conclusion that
more limited duration waivers with
centralized management would provide
important insight into Government
supply chains include: bauxite; cobalt,
in cathodes, rondelles, or other primary
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ore and metal forms; diamonds,
industrial, stones and abrasives; goat
hair canvas; goat and kidskins; graphite,
natural, crystalline, crucible grade;
iodine, crude; manganese; mica;
microprocessor chips (brought onto a
Government construction site as
separate units for incorporation into
building systems during construction or
repair and alteration of real property);
nickel, primary, in ingots, pigs, shots,
cathodes, or similar forms, nickel oxide
and nickel salts; olive oil; olives (green),
pitted or unpitted, or stuffed, in bulk;
platinum and related group metals,
refined, as sponge, powder, ingots, or
cast bars; tantalum; and tungsten. Many
of these articles fall within critical
supply chains that were prioritized for
strengthening under E.O. 14017,
America’s Supply Chains, for reasons of
national or economic security.
Articles proposed for removal from
the list because there is limited
Government demand for the article
include: acetylene, black; agar, bulk;
chalk, English; anise; bephenium
hydroxynaphthoate; calcium
cyanamide; castor beans and castor oil;
chicle; cinchona bark; colchicine
alkaloid, raw; copra; crane rail (85pound per foot); cryolite, natural;
dammar gum; emetine, bulk; ergot,
crude; erythrityl tetranitrate; hand file
sets (Swiss pattern); handsewing
needles; lac; lavender oil; menthol,
natural bulk; nux vomica, crude; oiticica
oil; opium, crude; pine needle oil;
pyrethrum flowers; quebracho;
quinidine; quinine; rabbit fur felt;
radium salts, source and special nuclear
materials; rosettes; secretin; shellac;
thread, metallic (gold); thyme oil;
triprolidine hydrochloride; wax,
carnauba; wire glass; woods, logs,
veneer, and lumber of the following
species: Alaskan yellow cedar,
angelique, balsa, ekki, greenheart,
lignum vitae, mahogany, and teak; and
yarn, 50 Denier rayon.
Articles proposed for removal from
the list because they are believed to be
obsolete include asbestos, amosite,
chrysotile, and crocidolite; ipecac, root;
kauri gum; and santonin, crude. The
removal of asbestos from the list meets
the obsolescence criteria because of the
Environmental Protection Agency’s ban
on ongoing uses of asbestos.
In total, DoD, GSA, and NASA are
proposing to remove 70 articles from the
list at FAR 25.104(a). This would reduce
the existing list by more than half.
The proposed rule provides these
benefits at minimal cost to Federal
contractors or the Government. There
should be no cost to Federal contractors
from the proposed reduction of articles
on the regulatory waiver list, as the
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transition to individual waivers should
increase transparency and reduce
transaction costs associated with finding
domestic opportunities.
The proposed rule is expected to
create only minimal additional
procurement costs to the Government
due to the low amount of spend and the
low number of contract actions for the
articles removed from the list. In fiscal
year (FY) 2023, the Federal contract
spend for the articles removed from the
list was estimated to be under $150
million, which represents less than 0.02
percent of the total Federal contract
spend for the same year. In FY 2023, the
number of Federal contract actions for
the articles removed from the list was
estimated to be under 10,000 Federal
contract actions, which represents less
than 0.02 percent of the total number of
Federal contract actions for the same
year. This data set excludes petroleum,
crude oil, unfinished oils, and finished
products. For the under 10,000 Federal
contract actions estimated to be
potentially impacted by the articles’
removal from the list, agencies will still
be able to use preexisting procedures to
seek an individual waiver from MIAO.
Additionally, for articles for which
market research shows domestic
capability may not be sufficient for a
period of time and the agency has a
need for repetitive purchases under an
indefinite-delivery contract, the agency
may pursue a time-bound multiprocurement waiver.
The potential procurement costs to
the Government are reduced further
when considering the nature of some of
the articles to be removed. The articles
removed include many items that are no
longer procured in significant amounts
or are obsolete. It is estimated that
approximately half of the articles on the
list have not been procured in
significant quantities in FY 2021
through FY 2023, are obsolete or greatly
reduced in their use (e.g., santonin), or
are subject to regulatory changes since
they were added to the nonavailable
articles list (e.g., asbestos).
V. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 (as
amended by E.O. 14094) and 13563
direct agencies to assess the 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
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Federal Register / Vol. 89, No. 205 / Wednesday, October 23, 2024 / Proposed Rules
flexibility. This is a significant
regulatory action and, therefore, was
subject to review under Section 6(b) of
E.O. 12866, Regulatory Planning and
Review, dated September 30, 1993.
parties must submit such comments
separately and should cite 5 U.S.C. 610
(FAR Case 2020–009), in
correspondence.
VI. Regulatory Flexibility Act
DoD, GSA, and NASA do not expect
this proposed rule, if finalized, 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. 601–612,
because the rule is not implementing
any requirements with which small
entities must comply. However, an
Initial Regulatory Flexibility Analysis
(IRFA) has been performed and is
summarized as follows:
This 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.
3501–3521).
khammond on DSKJM1Z7X2PROD with PROPOSALS
DoD, GSA, and NASA are proposing to
amend the FAR to revise the list of
domestically nonavailable articles under the
Buy American statute and the protocols to
amend the list.
The objective of this rule is to revise the
list of nonavailable articles at FAR 25.104(a).
The rule also seeks to implement section 9
of E.O. 14005. Promulgation of the FAR is
authorized by 40 U.S.C. 121(c); 10 U.S.C.
chapter 4 and 10 U.S.C. chapter 137 legacy
provisions (see 10 U.S.C. 3016); and 51
U.S.C. 20113.
The proposed rule impacts all entities that
do business with the Federal Government,
including the over 331,899 small business
registrants in the System for Award
Management. However, DoD, GSA, and
NASA do not expect this proposed rule, if
finalized, to have a significant economic
impact on a substantial number of small
entities because the rule is not implementing
any requirements with which small entities
must comply. It is expected that this
proposed rule will encourage small
businesses to take an interest in building
domestic manufacturing capabilities and
capacity; this would be a positive impact
though not a substantial impact.
The proposed rule does not include
additional, or change any existing, reporting
or recordkeeping requirements. The rule does
not duplicate, overlap, or conflict with any
other Federal rules. There are no available
alternatives to the proposed rule to
accomplish the desired objective of E.O.
14005.
The Regulatory Secretariat Division
has submitted a copy of the IRFA to the
Chief Counsel for Advocacy of the Small
Business Administration. A copy of the
IRFA may be obtained from the
Regulatory Secretariat Division. DoD,
GSA, and NASA invite comments from
small business concerns and other
interested parties on the expected
impact of this proposed rule on small
entities.
DoD, GSA, and NASA will also
consider comments from small entities
concerning the existing regulations in
subparts affected by the rule in
accordance with 5 U.S.C. 610. Interested
VerDate Sep<11>2014
16:04 Oct 22, 2024
Jkt 265001
VII. Paperwork Reduction Act
List of Subjects in 48 CFR Part 25
Government procurement.
William F. Clark,
Director, Office of Government-wide
Acquisition Policy, Office of Acquisition
Policy, Office of Government-wide Policy.
Therefore, DoD, GSA, and NASA
propose amending 48 CFR part 25 as set
forth below:
■ 1. The authority citation for 48 CFR
part 25 continues to read as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C.
chapter 4 and 10 U.S.C. chapter 137 legacy
provisions (see 10 U.S.C. 3016); and 51
U.S.C. 20113.
PART 25—FOREIGN ACQUISITION
2. Revise section 25.104 to read as
follows:
■
25.104
Nonavailable articles.
(a) The following articles have been
determined to be nonavailable in
accordance with 25.103(b)(1)(i):
Antimony, as metal or oxide.
Bamboo shoots.
Bananas.
Bismuth.
Books, trade, text, technical, or
scientific; newspapers; pamphlets;
magazines; periodicals; printed briefs
and films; not printed in the United
States and for which domestic editions
are not available.
Brazil nuts, unroasted.
Capers.
Cashew nuts.
Chestnuts.
Chrome ore or chromite.
Cocoa beans.
Coconut and coconut meat,
unsweetened, in shredded, desiccated,
or similarly prepared form.
Coffee, raw or green bean.
Cork, wood or bark and waste.
Cover glass, microscope slide.
Fair linen, altar.
Fibers of the following types: abaca,
abace, agave, coir, flax, jute, jute
burlaps, palmyra, and sisal.
Grapefruit sections, canned.
Hemp yarn.
Hog bristles for brushes.
Hyoscine, bulk.
Modacrylic fiber.
PO 00000
Frm 00035
Fmt 4702
Sfmt 9990
84509
Nitroguanidine (also known as
picrite).
Oranges, mandarin, canned.
Pineapple, canned.
Quartz crystals.
Rubber, crude and latex (natural).
Rutile.
Silk, raw and unmanufactured.
Spare and replacement parts for
equipment of foreign manufacture, and
for which domestic parts are not
available.
Spices and herbs, in bulk.
Swords and scabbards.
Tapioca flour and cassava.
Tartar, crude; tartaric acid and cream
of tartar in bulk.
Tea in bulk.
Tin in bars, blocks, and pigs.
Vanilla beans.
Venom, cobra.
Water chestnuts.
(b) To amend the list of nonavailable
articles, an economic analysis is
required of relevant markets and
available market research, to determine
whether there is a reasonable basis to
conclude that the article, material, or
supply is not mined, produced, or
manufactured in the United States in
sufficient and reasonably available
commercial quantities and of a
satisfactory quality. This analysis will
be performed by the Director of the
Office of Management and Budget
(OMB), through the Administrator of the
Office of Federal Procurement Policy,
who will consult with the Secretary of
Commerce and the Director of the
OMB’s Made in America Office on any
proposed changes. (Executive Order
14005 of January 25, 2021, Ensuring the
Future Is Made in All of America by All
of America’s Workers, Section 9).
(c) This list will be published in the
Federal Register for public comment no
less frequently than once every five
years. Unsolicited recommendations for
deletions from this list may be
submitted at any time and should
provide sufficient data and rationale to
permit evaluation (see 1.502). An
economic analysis as described in
paragraph (b) of this section will be
used to support changes to the list.
[FR Doc. 2024–24395 Filed 10–22–24; 8:45 am]
BILLING CODE 6820–EP–P
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Agencies
[Federal Register Volume 89, Number 205 (Wednesday, October 23, 2024)]
[Proposed Rules]
[Pages 84505-84509]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-24395]
=======================================================================
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 25
[FAR Case 2020-009, Docket No. FAR-2020-0009, Sequence No. 1]
RIN 9000-AO07
Federal Acquisition Regulation: List of Domestically Nonavailable
Articles
AGENCY: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: DoD, GSA, and NASA are proposing to amend the Federal
Acquisition Regulation (FAR) to revise the list of domestically
nonavailable articles under the Buy American statute and implement
requirements related to making future changes to the list.
DATES: Interested parties should submit written comments to the
Regulatory Secretariat Division at the address shown below on or before
December 23, 2024 to be considered in the formation of the final rule.
ADDRESSES: Submit comments in response to FAR Case 2020-009 to the
Federal eRulemaking portal at https://www.regulations.gov by searching
for ``FAR Case 2020-009''. Select the link ``Comment Now'' that
corresponds with ``FAR Case 2020-009''. Follow the instructions
provided on the ``Comment Now'' screen. Please include your name,
company name (if any), and ``FAR Case 2020-009'' on your attached
document. If your comment cannot be submitted using https://www.regulations.gov, call or email the point of contact in the FOR
FURTHER INFORMATION CONTACT section of this document for alternate
instructions.
Instructions: Please submit comments only and cite ``FAR Case 2020-
009'' in all correspondence related to this case. Comments received
generally will be posted without change to https://www.regulations.gov,
including any personal and/or business confidential information
provided. Public comments may be submitted as an individual, as an
organization, or anonymously (see frequently asked questions at https://www.regulations.gov/faq). To confirm receipt of your comment(s),
please check https://www.regulations.gov, approximately two to three
days after submission to verify posting.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
Ms. Zenaida Delgado, Procurement Analyst, at 202-969-7207 or by email
at [email protected]. For information pertaining to status,
publication schedules, or alternate instructions for submitting
comments if https://www.regulations.gov cannot be used, contact the
Regulatory Secretariat Division at 202-501-4755 or [email protected].
Please cite FAR Case 2020-009.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA are proposing to revise the list of domestically
nonavailable articles at FAR 25.104(a) and take other actions to limit
the use of regulatory nonavailability waivers consistent with section 9
of Executive Order (E.O.) 14005, Ensuring the Future Is Made in All of
America by All of America's Workers (86 FR 7475, January 28, 2021).
E.O. 14005 establishes policies to maximize the Federal Government's
use of goods, products,
[[Page 84506]]
and materials produced in the United States to help American businesses
compete in strategic industries and ensure America's workers thrive. A
key pillar of the E.O. involves reducing the need for waivers to the
Buy American statute (41 U.S.C. chapter 83), which generally requires
that only domestically mined, produced, or manufactured articles be
procured for public use in the United States. The Buy American statute
provides an exception for articles not mined, produced, or manufactured
in the United States in sufficient and reasonably available commercial
quantities and of a satisfactory quality.
Prior to issuance of E.O. 14005, FAR 25.103(b)(2)(i) authorized the
head of the contracting activity to make an individual determination of
nonavailability without having to publicly share the rationale for the
determination or the nature of the market research conducted. The
agency simply reported to the Federal Procurement Data System if a
nonavailability waiver was used on a particular acquisition. In
addition, a written determination of nonavailability was not required
if the acquisition was conducted using full and open competition,
synopsized, and no offer for a domestic source was received. This
process made it challenging for an existing Government contractor or
potential new entrant to become aware if its capabilities were being
overlooked. Further, if the contracting officer considered that the
nonavailability of an article was likely to affect future acquisitions
over a period of time, FAR 25.103(b)(2)(ii) authorized the contracting
officer to submit a copy of the determination and supporting
documentation to the appropriate regulatory council identified in FAR
1.201-1 (i.e., the Defense Acquisition Regulations Council or the
Civilian Agency Acquisition Council), in accordance with agency
procedures, to consider inclusion on the list of nonavailable articles
at FAR 25.104(a). Inclusion of the article on the nonavailability list
reduces the level of public outreach even further in light of the
presumption of nonavailability.
E.O. 14005 makes a number of changes to tighten the waiver process
and strengthen efforts to increase reliance on domestic sourcing.
First, with respect to individual waivers (see FAR 25.103(b)(2)(i)),
the E.O. updates, centralizes, and provides transparency to the process
for their issuance. Section 4 of the E.O. established the Made in
America Office (MIAO) in the Office of Management and Budget (OMB) to
manage a centralized process for reviewing proposed agency
nonavailability waivers for individual and multiple procurements.
Agencies can no longer simply rely on the absence of domestic offers in
a competition to justify a nonavailability waiver. OMB Memorandum M-21-
26, Increasing Opportunities for Domestic Sourcing and Reducing the
Need for Waivers from Made in America Laws, and guidance issued jointly
by MIAO and the Office of Federal Procurement Policy (OFPP), Improving
the Transparency of Made in America Waivers (October 26, 2021),
provided direction to agencies for the development, coordination, and
posting of waivers. In particular, the guidance instructs agencies to
describe steps the agency has taken to understand market capabilities
and capacity to help potential interested sources and supply chain
experts identify where opportunities might have been missed and could
be pursued when future needs arise. The guidance provides that waivers
will cover individual transactions but allows agencies to pursue multi-
procurement waivers for repetitive needs where market research
indicates that domestic capability may be lacking for a period of time,
provided the waiver is time limited. The guidance states that agencies
should continually study the market and reflect recent analysis in
their proposed waivers and not assume that there is no qualifying
product simply because one was not found in a prior year. The guidance
further directs that proposed waivers must be posted on the
MadeinAmerica.gov website so that interested sellers can have a better
understanding of where agencies are having trouble finding U.S.-made
products. The guidance explains that greater transparency should lead
to a more responsive supplier base and help agencies build diversity by
pulling new entrants into the Federal marketplace. DoD, GSA, and NASA
will address regulatory changes to FAR 25.103 through a future
rulemaking.
Second, section 9 of E.O. 14005 creates a new oversight mechanism
to more carefully control the identification of articles eligible for
inclusion at FAR 25.104(a) (``regulatory waivers'', see FAR
25.103(b)(1)(i)). Section 9 requires the Director of OMB, through the
Administrator of OFPP, to consult with the Secretary of Commerce and
the Director of MIAO regarding any changes proposed by DoD, GSA, and
NASA to the list of nonavailable articles identified at FAR 25.104(a).
Section 9 of E.O. 14005 requires paying particular attention to
economic analyses of relevant markets and available market research, to
determine whether there is a reasonable basis to conclude that the
article, material, or supply is not mined, produced, or manufactured in
the United States in sufficient and reasonably available commercial
quantities and of a satisfactory quality.
DoD, GSA, and NASA are issuing this proposed rule to implement
section 9 and reduce reliance on regulatory waivers that can
disincentivize domestic sourcing by signaling a lack of confidence in
domestic manufacturers' capacity to meet the Federal Government's
current demand or grow capacity to meet future demand. A general
presumption of nonavailability discourages the type of ongoing,
proactive engagement with industry to understand supply chains and
market trends that is vital to strengthening domestic manufacturing.
DoD, GSA, and NASA, in partnership with MIAO and OFPP, have
conducted a proactive review of each of the 109 articles on the
existing nonavailable articles list. The current list of articles
identified in FAR 25.104(a) is a wide-ranging mix of natural resources,
compounds, materials, and other items of supply. Although some articles
on the list have no known domestic production sources (e.g., quartz
crystals or vanilla beans), many of the articles are known to have some
domestic production sources, but those sources have been determined in
the past to be inadequate to meet U.S. demand. Examples of such
articles range from bismuth (not more than 10 percent of U.S.
Government and nongovernment demand) to spices and herbs, in bulk, (not
more than 40 percent of U.S. Government and nongovernment demand). For
additional discussion regarding the basis for removal of articles from
the list at FAR 25.104(a), see section IV. of this proposed rule
preamble.
II. Discussion and Analysis
The following summarizes the proposed changes to the FAR:
A. Proposed Revisions to the List at FAR 25.104(a)
DoD, GSA, and NASA are proposing to remove numerous articles from
the nonavailability list as a general reset of the list to remove a
presumption of nonavailability as a means to encourage further market
research and send a signal to industry. This may mean that contracting
officers will do more market research on domestic availability of the
removed products. It also may encourage domestic producers to take an
interest in the articles removed from the nonavailability list.
Proposed
[[Page 84507]]
removals include the following articles: acetylene, black; agar, bulk;
anise; asbestos, amosite, chrysotile, and crocidolite; bauxite; beef,
corned, canned; beef extract; bephenium hydroxynaphthoate; cadmium,
ores and flue dust; calcium cyanamide; castor beans and castor oil;
chalk, English; chicle; cinchona bark; cobalt, in cathodes, rondelles,
or other primary ore and metal forms; colchicine alkaloid, raw; copra;
crane rail (85-pound per foot); cryolite, natural; dammar gum;
diamonds, industrial, stones and abrasives; emetine, bulk; ergot,
crude; erythrityl tetranitrate; goat hair canvas; goat and kidskins;
graphite, natural, crystalline, crucible grade; hand file sets (Swiss
pattern); handsewing needles; ipecac, root; iodine, crude; kauri gum;
lac; lavender oil; leather, sheepskin, hair type; manganese; menthol,
natural bulk; mica; microprocessor chips (brought onto a Government
construction site as separate units for incorporation into building
systems during construction or repair and alteration of real property);
nickel, primary, in ingots, pigs, shots, cathodes, or similar forms;
nickel oxide and nickel salts; nux vomica, crude; oiticica oil; olive
oil; olives (green), pitted or unpitted, or stuffed, in bulk; opium,
crude; petroleum, crude oil, unfinished oils, and finished products;
pine needle oil; platinum and related group metals, refined, as sponge,
powder, ingots, or cast bars; pyrethrum flowers; quebracho; quinidine;
quinine; rabbit fur felt; radium salts, source and special nuclear
materials; rosettes; santonin, crude; secretin; shellac; sugars, raw;
talc, block, steatite; tantalum; thread, metallic (gold); thyme oil;
triprolidine hydrochloride; tungsten; wax, carnauba; wire glass; woods,
logs, veneer, and lumber of the following species: Alaskan yellow
cedar, angelique, balsa, ekki, greenheart, lignum vitae, mahogany, and
teak; yarn, 50 Denier rayon; and yeast, active dry and instant active
dry.
There is no substantial evidence that there is a major increase in
the availability of the articles being deleted, but there is evidence
that there is capacity for many of the articles being removed. Review
of several publications such as periodicals from the United States
Geological Survey (USGS) shows that for many of these articles there is
some degree of domestic capacity. For example, according to the USGS,
the United States produces 43,000 metric tons of mica per year, and the
Economic Research Service of the U.S. Department of Agriculture reports
that the United States is one of the world's largest producers of raw
sugar. For additional discussion regarding the basis for removal of
these articles from the list, see section IV. of this proposed rule
preamble.
B. Proposed Protocols To Amend the List at FAR 25.104(a)
The rule proposes adding FAR language to implement the requirements
of section 9 of E.O. 14005 requiring consultation with the Secretary of
Commerce and the MIAO Director prior to any changes to the list at FAR
25.104(a). The proposed rule retains the current standard for inclusion
on the list, which is that domestic sources can only meet 50 percent or
less of total U.S. Government and nongovernment demand. See FAR
25.103(b)(1)(i). It also retains the requirement that the procuring
agency is responsible for conducting market research appropriate to the
circumstances, including seeking domestic sources before acquisition of
an article on the list. This applies to acquisition of an article as
either an end product or a significant component (valued at more than
50 percent of the value of all the components).
Finally, the class determination for articles on the list will
continue to be deemed inapplicable if the contracting officer learns at
any time before the time designated for receipt of bids in sealed
bidding or final offers in negotiated procurements that an article on
the list is available domestically in sufficient and reasonably
available commercial quantities of a satisfactory quality to meet the
requirements of the solicitation. See FAR 25.103(b)(1)(iii).
III. Applicability to Contracts at or Below the Simplified Acquisition
Threshold (SAT) and for Commercial Products (Including Commercially
Available Off-the-Shelf (COTS) Items), or for Commercial Services
This rule does not create new solicitation provisions or contract
clauses or impact any existing provisions or clauses.
IV. Expected Impact of the Rule
The proposed rule would substantially reduce the number of articles
on the list at FAR 25.104(a) that are presumed by regulation to be
nonavailable in the United States in sufficient and reasonably
available commercial quantities and of a satisfactory quality. Removal
of an article from the list means that if such articles are acquired by
the agency in the future, the agency may no longer presume the article
is not available domestically. Instead, the agency must submit a
proposed waiver to MIAO explaining the basis for concluding the article
is not available domestically, including the market research conducted
to find domestic sources, and post the proposed waiver on
MadeinAmerica.gov. Over time, decreased reliance on regulatory waivers
and greater use of individual waivers that are reviewed centrally and
posted publicly should contribute to a more dynamic, diverse, and
competitive domestic industrial base. As a general matter, regulatory
waivers disincentivize domestic sourcing by signaling a lack of
confidence in its capacity to meet the Federal Government's current
demand or grow capacity to meet future demand. Use of individualized
waivers in lieu of regulatory waivers that are coordinated centrally
and posted for public awareness should encourage the type of ongoing,
proactive engagement with industry to understand supply chains and
market trends that is vital to strengthening domestic manufacturing and
reducing the need for waivers over time. As explained in OMB Memorandum
M-21-26 and the joint memorandum MIAO and OFPP issued on October 26,
2021, there are a number of strategic advantages to central review and
posting of waivers, including: the ability for MIAO and agencies to
share market research information and insight that might lead to the
identification of domestic sources in future acquisitions; the ability
for agencies to send a clear demand signal to industry of the Federal
Government's desire to reduce reliance on foreign-made items; the
ability for potential sources to see opportunities for new domestic
providers, and for existing domestic providers that may have been
overlooked to see if agencies may have missed market capabilities in
their market research; and the opportunity for MIAO to bring greater
consistency in use of waivers across the Government through its
feedback to agencies. The heightened transparency provided on
individual waivers can be especially beneficial in furthering both
contractor resilience by reducing transaction costs for potential
sellers and diversity by lowering a barrier to entry for small
businesses and new entrants to the Federal market that may struggle to
find work opportunities.
There are 109 articles currently subject to regulatory waiver. In
the past, DoD, GSA, and NASA have largely relied on public comment to
identify articles that should be removed from the list. For example, an
advance notice of proposed rulemaking was issued at 85 FR 28596 on May
13, 2020, seeking information that would assist in
[[Page 84508]]
identifying domestic capabilities and for evaluating whether some
articles on the list at FAR 25.104(a) should be removed because they
are now mined, produced, or manufactured in the United States in
sufficient and reasonably available commercial quantities and of a
satisfactory quality. While public input and insight remains an
important part of the review process, DoD, GSA, and NASA conducted a
proactive review of each article, in consultation with MIAO and OFPP,
to determine if the presumption of nonavailability remains appropriate.
This review will help to ensure the list more accurately reflects
market conditions and to avoid overlooking domestic capabilities.
Articles were identified as suitable for removal from the list if
one or more of the following criteria were met: (i) there is a
demonstrated domestic capacity to source the article; (ii) more limited
duration waivers with centralized management would provide important
insight into Government supply chains, including critical supply chains
with national or economic security implications; (iii) there is limited
Government demand for the article; or (iv) the articles are believed to
be obsolete.
Articles proposed for removal from the list based on an expectation
of sufficient and reasonably available commercial quantities include
petroleum, crude oil, unfinished oils, and finished products, as the
domestic crude oil capacity of the United States makes it the world's
largest producer of crude oil according to the U.S. Energy Information
Administration. Similarly, according to the USGS' Mineral Commodity
Summary for Cadmium in January 2024, the United States has demonstrated
a domestic capacity of cadmium that has allowed it to become a net
exporter of this metal. Talc, block, steatite is an additional article
for which, according to Mineral Commodities Summaries for 2024, the
United States domestic capacity was capable of meeting domestic demand.
The report indicated that the United States' net import reliance for
talc as a percentage of apparent consumption was six percent in 2023.
Other articles expected to meet this criterion include: beef, corned,
canned; beef extract; leather, sheepskin, hair type; sugars, raw; and
yeast, active dry and instant active dry.
Articles proposed for removal from the list based on the conclusion
that more limited duration waivers with centralized management would
provide important insight into Government supply chains include:
bauxite; cobalt, in cathodes, rondelles, or other primary ore and metal
forms; diamonds, industrial, stones and abrasives; goat hair canvas;
goat and kidskins; graphite, natural, crystalline, crucible grade;
iodine, crude; manganese; mica; microprocessor chips (brought onto a
Government construction site as separate units for incorporation into
building systems during construction or repair and alteration of real
property); nickel, primary, in ingots, pigs, shots, cathodes, or
similar forms, nickel oxide and nickel salts; olive oil; olives
(green), pitted or unpitted, or stuffed, in bulk; platinum and related
group metals, refined, as sponge, powder, ingots, or cast bars;
tantalum; and tungsten. Many of these articles fall within critical
supply chains that were prioritized for strengthening under E.O. 14017,
America's Supply Chains, for reasons of national or economic security.
Articles proposed for removal from the list because there is
limited Government demand for the article include: acetylene, black;
agar, bulk; chalk, English; anise; bephenium hydroxynaphthoate; calcium
cyanamide; castor beans and castor oil; chicle; cinchona bark;
colchicine alkaloid, raw; copra; crane rail (85-pound per foot);
cryolite, natural; dammar gum; emetine, bulk; ergot, crude; erythrityl
tetranitrate; hand file sets (Swiss pattern); handsewing needles; lac;
lavender oil; menthol, natural bulk; nux vomica, crude; oiticica oil;
opium, crude; pine needle oil; pyrethrum flowers; quebracho; quinidine;
quinine; rabbit fur felt; radium salts, source and special nuclear
materials; rosettes; secretin; shellac; thread, metallic (gold); thyme
oil; triprolidine hydrochloride; wax, carnauba; wire glass; woods,
logs, veneer, and lumber of the following species: Alaskan yellow
cedar, angelique, balsa, ekki, greenheart, lignum vitae, mahogany, and
teak; and yarn, 50 Denier rayon.
Articles proposed for removal from the list because they are
believed to be obsolete include asbestos, amosite, chrysotile, and
crocidolite; ipecac, root; kauri gum; and santonin, crude. The removal
of asbestos from the list meets the obsolescence criteria because of
the Environmental Protection Agency's ban on ongoing uses of asbestos.
In total, DoD, GSA, and NASA are proposing to remove 70 articles
from the list at FAR 25.104(a). This would reduce the existing list by
more than half.
The proposed rule provides these benefits at minimal cost to
Federal contractors or the Government. There should be no cost to
Federal contractors from the proposed reduction of articles on the
regulatory waiver list, as the transition to individual waivers should
increase transparency and reduce transaction costs associated with
finding domestic opportunities.
The proposed rule is expected to create only minimal additional
procurement costs to the Government due to the low amount of spend and
the low number of contract actions for the articles removed from the
list. In fiscal year (FY) 2023, the Federal contract spend for the
articles removed from the list was estimated to be under $150 million,
which represents less than 0.02 percent of the total Federal contract
spend for the same year. In FY 2023, the number of Federal contract
actions for the articles removed from the list was estimated to be
under 10,000 Federal contract actions, which represents less than 0.02
percent of the total number of Federal contract actions for the same
year. This data set excludes petroleum, crude oil, unfinished oils, and
finished products. For the under 10,000 Federal contract actions
estimated to be potentially impacted by the articles' removal from the
list, agencies will still be able to use preexisting procedures to seek
an individual waiver from MIAO. Additionally, for articles for which
market research shows domestic capability may not be sufficient for a
period of time and the agency has a need for repetitive purchases under
an indefinite-delivery contract, the agency may pursue a time-bound
multi-procurement waiver.
The potential procurement costs to the Government are reduced
further when considering the nature of some of the articles to be
removed. The articles removed include many items that are no longer
procured in significant amounts or are obsolete. It is estimated that
approximately half of the articles on the list have not been procured
in significant quantities in FY 2021 through FY 2023, are obsolete or
greatly reduced in their use (e.g., santonin), or are subject to
regulatory changes since they were added to the nonavailable articles
list (e.g., asbestos).
V. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 (as amended by E.O. 14094) and 13563
direct agencies to assess the 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
[[Page 84509]]
flexibility. This is a significant regulatory action and, therefore,
was subject to review under Section 6(b) of E.O. 12866, Regulatory
Planning and Review, dated September 30, 1993.
VI. Regulatory Flexibility Act
DoD, GSA, and NASA do not expect this proposed rule, if finalized,
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.
601-612, because the rule is not implementing any requirements with
which small entities must comply. However, an Initial Regulatory
Flexibility Analysis (IRFA) has been performed and is summarized as
follows:
DoD, GSA, and NASA are proposing to amend the FAR to revise the
list of domestically nonavailable articles under the Buy American
statute and the protocols to amend the list.
The objective of this rule is to revise the list of nonavailable
articles at FAR 25.104(a). The rule also seeks to implement section
9 of E.O. 14005. Promulgation of the FAR is authorized by 40 U.S.C.
121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy
provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.
The proposed rule impacts all entities that do business with the
Federal Government, including the over 331,899 small business
registrants in the System for Award Management. However, DoD, GSA,
and NASA do not expect this proposed rule, if finalized, to have a
significant economic impact on a substantial number of small
entities because the rule is not implementing any requirements with
which small entities must comply. It is expected that this proposed
rule will encourage small businesses to take an interest in building
domestic manufacturing capabilities and capacity; this would be a
positive impact though not a substantial impact.
The proposed rule does not include additional, or change any
existing, reporting or recordkeeping requirements. The rule does not
duplicate, overlap, or conflict with any other Federal rules. There
are no available alternatives to the proposed rule to accomplish the
desired objective of E.O. 14005.
The Regulatory Secretariat Division has submitted a copy of the
IRFA to the Chief Counsel for Advocacy of the Small Business
Administration. A copy of the IRFA may be obtained from the Regulatory
Secretariat Division. DoD, GSA, and NASA invite comments from small
business concerns and other interested parties on the expected impact
of this proposed rule on small entities.
DoD, GSA, and NASA will also consider comments from small entities
concerning the existing regulations in subparts affected by the rule in
accordance with 5 U.S.C. 610. Interested parties must submit such
comments separately and should cite 5 U.S.C. 610 (FAR Case 2020-009),
in correspondence.
VII. Paperwork Reduction Act
This 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. 3501-3521).
List of Subjects in 48 CFR Part 25
Government procurement.
William F. Clark,
Director, Office of Government-wide Acquisition Policy, Office of
Acquisition Policy, Office of Government-wide Policy.
Therefore, DoD, GSA, and NASA propose amending 48 CFR part 25 as
set forth below:
0
1. The authority citation for 48 CFR part 25 continues to read as
follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C.
chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C.
20113.
PART 25--FOREIGN ACQUISITION
0
2. Revise section 25.104 to read as follows:
25.104 Nonavailable articles.
(a) The following articles have been determined to be nonavailable
in accordance with 25.103(b)(1)(i):
Antimony, as metal or oxide.
Bamboo shoots.
Bananas.
Bismuth.
Books, trade, text, technical, or scientific; newspapers;
pamphlets; magazines; periodicals; printed briefs and films; not
printed in the United States and for which domestic editions are not
available.
Brazil nuts, unroasted.
Capers.
Cashew nuts.
Chestnuts.
Chrome ore or chromite.
Cocoa beans.
Coconut and coconut meat, unsweetened, in shredded, desiccated, or
similarly prepared form.
Coffee, raw or green bean.
Cork, wood or bark and waste.
Cover glass, microscope slide.
Fair linen, altar.
Fibers of the following types: abaca, abace, agave, coir, flax,
jute, jute burlaps, palmyra, and sisal.
Grapefruit sections, canned.
Hemp yarn.
Hog bristles for brushes.
Hyoscine, bulk.
Modacrylic fiber.
Nitroguanidine (also known as picrite).
Oranges, mandarin, canned.
Pineapple, canned.
Quartz crystals.
Rubber, crude and latex (natural).
Rutile.
Silk, raw and unmanufactured.
Spare and replacement parts for equipment of foreign manufacture,
and for which domestic parts are not available.
Spices and herbs, in bulk.
Swords and scabbards.
Tapioca flour and cassava.
Tartar, crude; tartaric acid and cream of tartar in bulk.
Tea in bulk.
Tin in bars, blocks, and pigs.
Vanilla beans.
Venom, cobra.
Water chestnuts.
(b) To amend the list of nonavailable articles, an economic
analysis is required of relevant markets and available market research,
to determine whether there is a reasonable basis to conclude that the
article, material, or supply is not mined, produced, or manufactured in
the United States in sufficient and reasonably available commercial
quantities and of a satisfactory quality. This analysis will be
performed by the Director of the Office of Management and Budget (OMB),
through the Administrator of the Office of Federal Procurement Policy,
who will consult with the Secretary of Commerce and the Director of the
OMB's Made in America Office on any proposed changes. (Executive Order
14005 of January 25, 2021, Ensuring the Future Is Made in All of
America by All of America's Workers, Section 9).
(c) This list will be published in the Federal Register for public
comment no less frequently than once every five years. Unsolicited
recommendations for deletions from this list may be submitted at any
time and should provide sufficient data and rationale to permit
evaluation (see 1.502). An economic analysis as described in paragraph
(b) of this section will be used to support changes to the list.
[FR Doc. 2024-24395 Filed 10-22-24; 8:45 am]
BILLING CODE 6820-EP-P