80_FR_10429 80 FR 10391 - Defense Federal Acquisition Regulation Supplement: Domestic Source Restrictions on Certain Naval Vessel Components (DFARS Case 2014-D022)

80 FR 10391 - Defense Federal Acquisition Regulation Supplement: Domestic Source Restrictions on Certain Naval Vessel Components (DFARS Case 2014-D022)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 80, Issue 38 (February 26, 2015)

Page Range10391-10392
FR Document2015-03855

DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement the statutory domestic source restrictions on acquisition of certain naval vessel components.

Federal Register, Volume 80 Issue 38 (Thursday, February 26, 2015)
[Federal Register Volume 80, Number 38 (Thursday, February 26, 2015)]
[Rules and Regulations]
[Pages 10391-10392]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-03855]



[[Page 10391]]

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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 225

RIN 0750-AI36


Defense Federal Acquisition Regulation Supplement: Domestic 
Source Restrictions on Certain Naval Vessel Components (DFARS Case 
2014-D022)

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

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: DoD is issuing a final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to implement the statutory 
domestic source restrictions on acquisition of certain naval vessel 
components.

DATES: Effective February 26, 2015.

FOR FURTHER INFORMATION CONTACT: Ms. Amy G. Williams, telephone 571-
372-6106.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD published a proposed rule in the Federal Register at 79 FR 
56333 on September 19, 2014, to implement the domestic source 
restrictions in 10 U.S.C. 2534 on gyrocompasses, electronic navigation 
chart systems, steering controls, pumps, propulsion and machinery 
control systems, and totally enclosed lifeboats, to the extent they are 
unique to marine applications.
    One respondent submitted a public comment in response to the 
proposed rule.

II. Discussion and Analysis

    DoD reviewed the public comment in the development of the final 
rule. A discussion of the comment is provided, as follows:

A. Significant Changes From the Proposed Rule

    There is no change from the proposed rule to the final rule.

B. Analysis of Public Comment

    Comment: The respondent stated that the rule should require 
manufacture of the naval vessel components in the United States.
    Response: In accordance with 10 U.S.C. 2534, the rule requires 
manufacture of the naval vessel components in the United States or 
Canada. 10 U.S.C. 2534(b) requires the manufacturer of the items to be 
a part of the national technology and industrial base. The term 
``national technology and industrial base'' is defined at 10 U.S.C. 
2500 to mean ``the persons and organizations that are engaged in 
research, development, production, integration, services, or 
information technology activities conducted within the United States 
and Canada.'' Therefore, it is necessary to allow manufacture in 
Canada, as well as the United States.

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

    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 this law has been implemented in the Defense Logistics Agency 
and Department of Navy regulations for many years, and moving the 
regulations to the DFARS will have no impact on the public.

V. 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.

Manuel Quinones,
Editor, Defense Acquisition Regulations System.

    Therefore, 48 CFR part 225 is amended as follows:

PART 225--FOREIGN ACQUISITION

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.


0
2. Amend section 225.7008 by revising paragraph (b) to read as follows:


225.7008  Waiver of restrictions of 10 U.S.C. 2534.

* * * * *
    (b) In accordance with the provisions of paragraphs (a)(1)(i) 
through (iii) of this section, the USD(AT&L) has waived the 
restrictions of 10 U.S.C. 2534(a) for certain items manufactured in the 
United Kingdom, including air circuit breakers for naval vessels (see 
225.7006) and the naval vessel components listed at 225.7010-1.

0
3. Add sections 225.7010, 225.7010-1, 225.7010-2, 225.7010-3, and 
225.7010-4 to read as follows:


225.7010  Restriction on certain naval vessel components.


225.7010-1  Restriction.

    In accordance with 10 U.S.C. 2534, do not acquire the following 
components of naval vessels, to the extent they are unique to marine 
applications, unless manufactured in the United States or Canada:
    (a) Gyrocompasses.
    (b) Electronic navigation chart systems.
    (c) Steering controls.
    (d) Pumps.
    (e) Propulsion and machinery control systems.
    (f) Totally enclosed lifeboats.


225.7010-2  Exceptions.

    This restriction does not apply to--
    (a) Contracts or subcontracts that do not exceed the simplified 
acquisition threshold; or
    (b) Acquisition of spare or repair parts needed to support 
components for naval vessels manufactured outside the United States. 
Support includes the purchase of spare gyrocompasses, electronic 
navigation chart systems, steering controls, pumps, propulsion and 
machinery control systems, or totally enclosed lifeboats, when those 
from alternate sources are not interchangeable.


225.7010-3  Waiver.

    (a) The waiver criteria at 225.7008(a) apply to this restriction.
    (b) The Under Secretary of Defense (Acquisition, Technology, and 
Logistics) has waived the restriction of 10 U.S.C. 2534 for certain 
items manufactured in the United Kingdom, including the items listed in 
section 225.7010-1. See 225.7008.

[[Page 10392]]

225.7010-4  Implementation.

    (a) 10 U.S.C. 2534(h) prohibits the use of contract clauses or 
certifications to implement this restriction.
    (b) Agencies shall accomplish implementation of this restriction 
through use of management and oversight techniques that achieve the 
objectives of this section without imposing a significant management 
burden on the Government or the contractor involved.

[FR Doc. 2015-03855 Filed 2-25-15; 8:45 am]
BILLING CODE 5001-06-P



                                                              Federal Register / Vol. 80, No. 38 / Thursday, February 26, 2015 / Rules and Regulations                                        10391

                                             DEPARTMENT OF DEFENSE                                   manufacturer of the items to be a part                  Authority: 41 U.S.C. 1303 and 48 CFR
                                                                                                     of the national technology and                        chapter 1.
                                             Defense Acquisition Regulations                         industrial base. The term ‘‘national                  ■ 2. Amend section 225.7008 by
                                             System                                                  technology and industrial base’’ is                   revising paragraph (b) to read as follows:
                                                                                                     defined at 10 U.S.C. 2500 to mean ‘‘the
                                             48 CFR Part 225                                         persons and organizations that are                    225.7008 Waiver of restrictions of 10
                                             RIN 0750–AI36
                                                                                                     engaged in research, development,                     U.S.C. 2534.
                                                                                                     production, integration, services, or                 *      *     *    *     *
                                             Defense Federal Acquisition                             information technology activities                        (b) In accordance with the provisions
                                             Regulation Supplement: Domestic                         conducted within the United States and                of paragraphs (a)(1)(i) through (iii) of
                                             Source Restrictions on Certain Naval                    Canada.’’ Therefore, it is necessary to               this section, the USD(AT&L) has waived
                                             Vessel Components (DFARS Case                           allow manufacture in Canada, as well as               the restrictions of 10 U.S.C. 2534(a) for
                                             2014–D022)                                              the United States.                                    certain items manufactured in the
                                                                                                     III. Executive Orders 12866 and 13563                 United Kingdom, including air circuit
                                             AGENCY:  Defense Acquisition
                                                                                                                                                           breakers for naval vessels (see 225.7006)
                                             Regulations System, Department of                          Executive Orders (E.O.s) 12866 and
                                                                                                                                                           and the naval vessel components listed
                                             Defense (DoD).                                          13563 direct agencies to assess all costs
                                                                                                                                                           at 225.7010–1.
                                             ACTION: Final rule.                                     and benefits of available regulatory
                                                                                                     alternatives and, if regulation is                    ■ 3. Add sections 225.7010, 225.7010–1,
                                             SUMMARY:  DoD is issuing a final rule                   necessary, to select regulatory                       225.7010–2, 225.7010–3, and 225.7010–
                                             amending the Defense Federal                            approaches that maximize net benefits                 4 to read as follows:
                                             Acquisition Regulation Supplement                       (including potential economic,
                                                                                                                                                           225.7010 Restriction on certain naval
                                             (DFARS) to implement the statutory                      environmental, public health and safety               vessel components.
                                             domestic source restrictions on                         effects, distributive impacts, and
                                             acquisition of certain naval vessel                     equity). E.O. 13563 emphasizes the                    225.7010–1        Restriction.
                                             components.                                             importance of quantifying both costs                    In accordance with 10 U.S.C. 2534, do
                                                                                                     and benefits, of reducing costs, of                   not acquire the following components of
                                             DATES: Effective February 26, 2015.
                                                                                                     harmonizing rules, and of promoting                   naval vessels, to the extent they are
                                             FOR FURTHER INFORMATION CONTACT: Ms.                    flexibility. This is not a significant
                                             Amy G. Williams, telephone 571–372–                                                                           unique to marine applications, unless
                                                                                                     regulatory action and, therefore, was not
                                             6106.                                                                                                         manufactured in the United States or
                                                                                                     subject to review under section 6(b) of
                                                                                                                                                           Canada:
                                             SUPPLEMENTARY INFORMATION:                              E.O. 12866, Regulatory Planning and
                                                                                                     Review, dated September 30, 1993. This                  (a) Gyrocompasses.
                                             I. Background                                           rule is not a major rule under 5 U.S.C.                 (b) Electronic navigation chart
                                               DoD published a proposed rule in the                  804.                                                  systems.
                                             Federal Register at 79 FR 56333 on                                                                              (c) Steering controls.
                                                                                                     IV. Regulatory Flexibility Act
                                             September 19, 2014, to implement the                                                                            (d) Pumps.
                                             domestic source restrictions in 10 U.S.C.                 DoD certifies that this final rule will               (e) Propulsion and machinery control
                                             2534 on gyrocompasses, electronic                       not have a significant economic impact                systems.
                                             navigation chart systems, steering                      on a substantial number of small entities
                                                                                                     within the meaning of the Regulatory                    (f) Totally enclosed lifeboats.
                                             controls, pumps, propulsion and
                                             machinery control systems, and totally                  Flexibility Act, 5 U.S.C. 601, et seq.,               225.7010–2        Exceptions.
                                             enclosed lifeboats, to the extent they are              because this law has been implemented
                                                                                                                                                              This restriction does not apply to—
                                             unique to marine applications.                          in the Defense Logistics Agency and
                                                                                                     Department of Navy regulations for                       (a) Contracts or subcontracts that do
                                               One respondent submitted a public
                                                                                                     many years, and moving the regulations                not exceed the simplified acquisition
                                             comment in response to the proposed
                                                                                                     to the DFARS will have no impact on                   threshold; or
                                             rule.
                                                                                                     the public.                                              (b) Acquisition of spare or repair parts
                                             II. Discussion and Analysis                                                                                   needed to support components for naval
                                                                                                     V. Paperwork Reduction Act                            vessels manufactured outside the
                                               DoD reviewed the public comment in
                                             the development of the final rule. A                      The rule does not contain any                       United States. Support includes the
                                             discussion of the comment is provided,                  information collection requirements that              purchase of spare gyrocompasses,
                                             as follows:                                             require the approval of the Office of                 electronic navigation chart systems,
                                                                                                     Management and Budget under the                       steering controls, pumps, propulsion
                                             A. Significant Changes From the                         Paperwork Reduction Act (44 U.S.C.                    and machinery control systems, or
                                             Proposed Rule                                           chapter 35).                                          totally enclosed lifeboats, when those
                                               There is no change from the proposed                                                                        from alternate sources are not
                                                                                                     List of Subjects in 48 CFR Part 225
                                             rule to the final rule.                                                                                       interchangeable.
                                                                                                       Government procurement.
                                             B. Analysis of Public Comment                                                                                 225.7010–3        Waiver.
                                                                                                     Manuel Quinones,
                                               Comment: The respondent stated that                   Editor, Defense Acquisition Regulations
                                                                                                                                                              (a) The waiver criteria at 225.7008(a)
                                             the rule should require manufacture of                  System.                                               apply to this restriction.
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                                             the naval vessel components in the                                                                               (b) The Under Secretary of Defense
                                                                                                       Therefore, 48 CFR part 225 is
                                             United States.                                                                                                (Acquisition, Technology, and Logistics)
                                                                                                     amended as follows:
                                               Response: In accordance with 10                                                                             has waived the restriction of 10 U.S.C.
                                             U.S.C. 2534, the rule requires                          PART 225—FOREIGN ACQUISITION                          2534 for certain items manufactured in
                                             manufacture of the naval vessel                                                                               the United Kingdom, including the
                                             components in the United States or                      ■ 1. The authority citation for 48 CFR                items listed in section 225.7010–1. See
                                             Canada. 10 U.S.C. 2534(b) requires the                  part 225 continues to read as follows:                225.7008.


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                                             10392             Federal Register / Vol. 80, No. 38 / Thursday, February 26, 2015 / Rules and Regulations

                                             225.7010–4       Implementation.                         into two 6-month time periods, January                procedures are unnecessary, because the
                                               (a) 10 U.S.C. 2534(h) prohibits the use                through June and July through                         rule establishing the trip limit has
                                             of contract clauses or certifications to                 December. For the January 1 through                   already been subject to notice and
                                             implement this restriction.                              June 30, 2015, fishing season, the                    comment, and all that remains is to
                                               (b) Agencies shall accomplish                          commercial quota is 394,829 lb (179,091               notify the public of the trip limit
                                             implementation of this restriction                       kg), gutted weight (438,260 lb (198,791               reduction. They are contrary to the
                                             through use of management and                            kg), round weight), as specified in 50                public interest, because there is a need
                                             oversight techniques that achieve the                    CFR 622.190(a)(4)(i)(C).                              to immediately implement this action to
                                             objectives of this section without                          Under 50 CFR 622.191(a)(6)(ii), NMFS               protect the vermilion snapper resource
                                             imposing a significant management                        is required to reduce the commercial                  since the capacity of the fishing fleet
                                             burden on the Government or the                          trip limit for vermilion snapper from                 allows for rapid harvest of the quota.
                                             contractor involved.                                     1,000 lb (454 kg), gutted weight (1,110               Prior notice and opportunity for public
                                                                                                      lb (503 kg), round weight), to 500 lb                 comment on this action would require
                                             [FR Doc. 2015–03855 Filed 2–25–15; 8:45 am]
                                                                                                      (227 kg), gutted weight (555 lb (252 kg),             time and would increase the probability
                                             BILLING CODE 5001–06–P
                                                                                                      round weight), when 75 percent of the                 that the commercial sector could exceed
                                                                                                      fishing season quota is reached or                    the quota.
                                                                                                      projected to be reached, by filing a                     For the aforementioned reasons, the
                                             DEPARTMENT OF COMMERCE                                   notification to that effect with the Office           AA also finds good cause to waive the
                                                                                                      of the Federal Register, as implemented               30-day delay in the effectiveness of this
                                             National Oceanic and Atmospheric                         by the final rule for Regulatory
                                             Administration                                                                                                 action under 5 U.S.C. 553(d)(3).
                                                                                                      Amendment 18 (78 FR 47574, August 6,
                                                                                                                                                              Authority: 16 U.S.C. 1801 et seq.
                                                                                                      2013). Based on current information,
                                             50 CFR Part 622                                          NMFS has determined that 75 percent of                  Dated: February 23, 2015.
                                             [Docket No. 130312235–3658–02]                           the available commercial quota for the                Emily H. Menashes,
                                                                                                      January 1 through June 30, 2015, fishing              Acting Director, Office of Sustainable
                                             RIN 0648–XD733                                                                                                 Fisheries, National Marine Fisheries Service.
                                                                                                      season for vermilion snapper will be
                                             Fisheries of the Caribbean, Gulf of                      reached by March 2, 2015. Accordingly,                [FR Doc. 2015–04024 Filed 2–23–15; 4:15 pm]

                                             Mexico, and South Atlantic; Snapper-                     NMFS is reducing the commercial trip                  BILLING CODE 3510–22–P

                                             Grouper Resources of the South                           limit for vermilion snapper to 500 lb
                                             Atlantic; Trip Limit Reduction                           (227 kg), gutted weight (555 lb (252 kg),
                                                                                                      round weight), in or from the South                   DEPARTMENT OF COMMERCE
                                             AGENCY:  National Marine Fisheries                       Atlantic EEZ at 12:01 a.m., local time,
                                             Service (NMFS), National Oceanic and                     on March 2, 2015. This 500-lb (227-kg),               National Oceanic and Atmospheric
                                             Atmospheric Administration (NOAA),                       gutted weight, trip limit will remain in              Administration
                                             Commerce.                                                effect until July 1, 2015, or until the
                                                                                                      quota is reached and the commercial                   50 CFR Part 660
                                             ACTION: Temporary rule; trip limit
                                             reduction.                                               sector closes, whichever occurs first.                [Docket No. 140528460–5122–02]
                                                                                                      Classification                                        RIN 0648–BE25
                                             SUMMARY:   NMFS reduces the
                                             commercial trip limit for vermilion                        The Regional Administrator,
                                                                                                                                                            Fisheries Off West Coast States;
                                             snapper in or from the exclusive                         Southeast Region, NMFS, has
                                                                                                                                                            Highly Migratory Fisheries; California
                                             economic zone (EEZ) of the South                         determined this temporary rule is
                                                                                                                                                            Swordfish Drift Gillnet Fishery; Vessel
                                             Atlantic to 500 lb (227 kg), gutted                      necessary for the conservation and
                                                                                                                                                            Monitoring System and Pre-Trip
                                             weight. This trip limit reduction is                     management of South Atlantic
                                                                                                                                                            Notification Requirements
                                             necessary to protect the South Atlantic                  vermilion snapper and is consistent
                                             vermilion snapper resource.                              with the Magnuson-Stevens Act and                     AGENCY:  National Marine Fisheries
                                             DATES: This rule is effective 12:01 a.m.,                other applicable laws.                                Service (NMFS), National Oceanic and
                                             local time, March 2, 2015, until 12:01                     This action is taken under 50 CFR                   Atmospheric Administration (NOAA),
                                             a.m., local time, July 1, 2015.                          622.191(a)(6)(ii) and is exempt from                  Commerce.
                                                                                                      review under Executive Order 12866.                   ACTION: Final rule.
                                             FOR FURTHER INFORMATION CONTACT:                           These measures are exempt from the
                                             Britni LaVine, NMFS Southeast                            procedures of the Regulatory Flexibility              SUMMARY:    NMFS is issuing regulations
                                             Regional Office, telephone: 727–824–                     Act because the temporary rule is issued              that require use of a NMFS-approved
                                             5305, email: britni.lavine@noaa.gov.                     without opportunity for prior notice and              vessel monitoring system (VMS) and
                                             SUPPLEMENTARY INFORMATION: The                           comment.                                              institute a pre-trip notification
                                             snapper-grouper fishery includes                           This action responds to the best                    requirement for West Coast large-mesh
                                             vermilion snapper in the South Atlantic                  scientific information available. The                 swordfish drift gillnet (DGN) vessel
                                             and is managed under the Fishery                         Assistant Administrator for Fisheries,                owners and operators. The DGN fishery
                                             Management Plan for the Snapper-                         NOAA (AA), finds that the need to                     operates under the authority of the
                                             Grouper Fishery of the South Atlantic                    immediately implement this                            Federal Fishery Management Plan for
                                             Region (FMP). The South Atlantic                         commercial trip limit reduction                       U.S. West Coast Fisheries for Highly
                                             Fishery Management Council prepared                      constitutes good cause to waive the                   Migratory Species (HMS FMP).
                                             the FMP and is implemented by NMFS                       requirements to provide prior notice                  Installing and operating VMS on vessels
rmajette on DSK2VPTVN1PROD with RULES




                                             under the authority of the Magnuson-                     and opportunity for public comment                    in this fishery will provide NMFS and
                                             Stevens Fishery Conservation and                         pursuant to the authority set forth in 5              law enforcement personnel with the
                                             Management Act (Magnuson-Stevens                         U.S.C. 553(b)(B), because prior notice                ability to monitor the DGN fishery for
                                             Act) by regulations at 50 CFR part 622.                  and opportunity for public comment on                 compliance with conservation
                                               The commercial quota for vermilion                     this temporary rule is unnecessary and                measures, efficiently deploy agents to
                                             snapper in the South Atlantic is divided                 contrary to the public interest. Such                 inspect vessels, and provide the ability


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Document Created: 2015-12-18 13:05:22
Document Modified: 2015-12-18 13:05:22
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective February 26, 2015.
ContactMs. Amy G. Williams, telephone 571- 372-6106.
FR Citation80 FR 10391 
RIN Number0750-AI36

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