Defense Federal Acquisition Regulation Supplement; Ball and Roller Bearings; Waiver

DEPARTMENT OF DEFENSE

48 CFR Part 225

[DFARS Case 97-D300]

Defense Federal Acquisition Regulation Supplement; Ball and

Roller Bearings; Waiver

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.

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SUMMARY: The Director of Defense Procurement is proposing to amend the

Defense Federal Acquisition Regulation Supplement (DFARS) to implement

10 U.S.C. 2534(d)(6), which provides that the Secretary of Defense may

waive the domestic source restrictions of 10 U.S.C. 2534(a) for a

procurement that is for an amount less than the simplified acquisition

threshold, when simplified acquisition procedures are being used.

DATE: Comments on the proposed rule should be submitted in writing to

the address shown below on or before April 21, 1997, to be considered

in the formulation of the final rule.

ADDRESSES: Interested parties should submit written comments to:

Defense Acquisition Regulations Council, Attn: Ms. Amy Williams,

PDUSD(A&T)DP(DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC

20301-3062. Telefax number (703) 602-0350. Please cite DFARS Case 97-

D300 in all correspondence related to this issue.

FOR FURTHER INFORMATION CONTACT:

Ms. Amy Williams, (703) 602-0131.

SUPPLEMENTARY INFORMATION:

A. Background

10 U.S.C. 2534(a) limits the procurement of certain items to

domestic sources; 10 U.S.C. 2534(g)(1) provides that this limitation

does not apply to a contract or subcontract for an amount that does not

exceed the simplified acquisition threshold.

10 U.S.C. 2534(d)(6) provides that the Secretary of Defense may

waive the limitation in 10 U.S.C. 2534(a) for a procurement that is for

an amount less than the simplified acquisition threshold, when

simplified acquisition procedures are being used.

This DFARS rule proposes to implement the waiver authority of 10

U.S.C. 2534(d)(6) with regard to the acquisition of ball and roller

bearings, because 10 U.S.C

(d)(6) provides that the Secretary of Defense may

waive the limitation in 10 U.S.C. 2534(a) for a procurement that is for

an amount less than the simplified acquisition threshold, when

simplified acquisition procedures are being used.

This DFARS rule proposes to implement the waiver authority of 10

U.S.C. 2534(d)(6) with regard to the acquisition of ball and roller

bearings, because 10 U.S.C. 2534(g)(2), added by Section 806(d) of the

National Defense Authorization Act for Fiscal Year 1996 (Pub. L. 104-

106), makes the broader exception at 10 U.S.C. 2534(g)(1) inapplicable

to ball and roller bearings.

B. Regulatory Flexibility Act

The proposed rule may have a significant economic impact on a

substantial number of small entities within the meaning of the

Regulatory Flexibility Act, 5 U.S.C. 601, et seq. Therefore, an Initial

Regulatory Flexibility Analysis has been prepared and is summarized as

follows:

The proposed rule is being considered by the agency to implement 10

U.S.C. 2534(d)(6) with regard to the acquisition of ball and roller

bearings. 10 U.S.C. 2534(d)(6) provides that the Secretary of Defense

may waive the domestic source restrictions of 10 U.S.C. 2534(a) for a

procurement that is for an amount less than the simplified acquisition

threshold, when simplified acquisition procedures are being used.

Because of other statutory provisions that pertain to the acquisition

of ball and roller bearings, the waiver authority in this proposed rule

may be used only if (1) ball and roller bearings or bearing components

are the end items being purchased, and (2) the ball and roller bearings

or bearing components are commercial items, or no fiscal year 1996 or

1997 funds are being used. It is estimated that 11 small businesses

could be affected by this rule. The rule imposes no new reporting,

recordkeeping, or compliance requirements for contractors or offerors;

and does not duplicate, overlap, or conflict with any other Federal

rules

chased, and (2) the ball and roller bearings

or bearing components are commercial items, or no fiscal year 1996 or

1997 funds are being used. It is estimated that 11 small businesses

could be affected by this rule. The rule imposes no new reporting,

recordkeeping, or compliance requirements for contractors or offerors;

and does not duplicate, overlap, or conflict with any other Federal

rules. There are no practical alternatives that will fully implement

the provisions of 10 U.S.C. 2534(d)(6).

A copy of the Initial Regulatory Flexibility Analysis has been

submitted to the Chief Counsel for Advocacy of the Small Business

Administration. Interested parties may obtain a copy of the analysis

from the address specified herein. Comments are invited from small

businesses and other interested parties. Comments from small entities

concerning the affected DFARS subpart also will be considered in

accordance with 5 U.S.C. 610. Such comments should be submitted

separately and should cite DFARS Case 97-D300 in correspondence.

C. Paperwork Reduction Act

The Paperwork Reduction Act does not apply because the proposed

rule contains no information collection requirements that require

approval of the Office of Management and Budget under 44 U.S.C. 3501,

et seq.

List of Subjects in 48 CFR Part 225

Government procurement.

Michele P. Peterson,

Executive Editor, Defense Acquisition Regulations Council.

Therefore, 48 CFR Part 225 is amended as follows:

1. The authority citation for 48 CFR Part 225 continues to read as

follows:

Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 225--FOREIGN ACQUISITION

2. Section 225.7019-3 is amended by redesignating paragraphs (a)(2)

and (a)(3) as paragraphs (a)(3) and (a)(4), respectively, and by adding

a new paragraph (a)(2) to read as follows:

225.7019-3 Waiver.

CFR Part 225 is amended as follows:

1. The authority citation for 48 CFR Part 225 continues to read as

follows:

Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 225--FOREIGN ACQUISITION

2. Section 225.7019-3 is amended by redesignating paragraphs (a)(2)

and (a)(3) as paragraphs (a)(3) and (a)(4), respectively, and by adding

a new paragraph (a)(2) to read as follows:

225.7019-3 Waiver.

(a) * * *

(2) If the acquisition is for an amount less than the simplified

acquisition threshold and simplified acquisition procedures are being

used.

* * * * *

[FR Doc. 97-4042 Filed 2-18-97; 8:45 am]

BILLING CODE 5000-04-M