80_FR_72896 80 FR 72672 - Defense Federal Acquisition Regulation Supplement: Buy American and Balance of Payments Program-Clause Prescription (DFARS Case 2015-D037)

80 FR 72672 - Defense Federal Acquisition Regulation Supplement: Buy American and Balance of Payments Program-Clause Prescription (DFARS Case 2015-D037)

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 80, Issue 224 (November 20, 2015)

Page Range72672-72673
FR Document2015-29558

DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to clarify how the clause prescription addresses applicability when an exception to the Buy American statute or Balance of Payments Program applies.

Federal Register, Volume 80 Issue 224 (Friday, November 20, 2015) 
[Federal Register Volume 80, Number 224 (Friday, November 20, 2015)]
[Proposed Rules]
[Pages 72672-72673]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-29558]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 225

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


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

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

ACTION: Proposed rule

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

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

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before January 19, 2016, to be considered 
in the formation of a final rule.

ADDRESSES: Submit comments identified by DFARS Case 2015-D037, using 
any of the following methods:
    [cir] Regulations.gov: http://www.regulations.gov. Submit comments 
via the Federal eRulemaking portal by entering ``DFARS Case 2015-D037'' 
under the heading ``Enter keyword or ID'' and selecting ``Search.'' 
Select the link ``Submit a Comment'' that corresponds with ``DFARS Case 
2015-D037.'' Follow the instructions provided at the ``Submit a 
Comment'' screen. Please include your name, company name (if any), and 
``DFARS Case 2015-D037'' on your attached document.
    [cir] Email: [email protected]. Include DFARS Case 2015-D037 in 
the subject line of the message.
    [cir] Fax: 571-372-6094.
    [cir] Mail: Defense Acquisition Regulations System, Attn: Ms. Tresa 
Sullivan, OUSD(AT&L)DPAP/DARS, Room 3B941, 3060 Defense Pentagon, 
Washington, DC 20301-3060.
    Comments received generally will be posted without change to http://www.regulations.gov, including any personal information provided. To 
confirm receipt of your comment(s), please check www.regulations.gov, 
approximately two to three days after submission to verify posting 
(except allow 30 days for posting of comments submitted by mail).

FOR FURTHER INFORMATION CONTACT: Ms. Tresa Sullivan, telephone 571-372-
6089.

SUPPLEMENTARY INFORMATION:

I. Background

    DoD is proposing to revise the DFARS to clarify when it is 
appropriate to not include DFARS clause 252.225-7001, Buy American and 
Balance of Payments Program, with regard to exceptions to the Buy 
American statute and Balance of Payment Program. The prescription for 
use of DFARS clause 252.225-7001 does not clearly make a distinction 
with regard to when an exception to the Buy American statute or Balance 
of Payments Program applies. As written, procurement offices may 
inaccurately believe that it is permissible to omit the clause if 
either situation occurs. However, the clause is required in 
solicitations and contracts unless (1) the acquisition is for supplies 
for use within the United States and an exception to the Buy American 
statute applies (e.g., nonavailability or public interest), or (2) the 
acquisition is for supplies for use outside the United States and an 
exception to the Balance of Payments Program applies.

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 does not expect this proposed rule 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, et seq., 
because it applies to internal procedures for Government contracting 
officers. This proposed rule clarifies how clause prescription 
addresses applicability when an exception to the Buy American statute 
or Balance of Payments Program applies. However, an initial regulatory 
flexibility analysis has

[[Page 72673]]

been performed and is summarized as follows:
    The objective of this proposed rule is to clarify the prescription 
for use of DFARS clause 252.225-7001, Buy American and Balance of 
Payments Program, to state that the clause does not apply when (1) the 
acquisition is for supplies for use within the United States and an 
exception to the Buy American statute applies, or (2) the acquisition 
is for supplies for use outside the United States and an exception to 
the Balance of Payments Program applies.
    DoD does not expect this proposed rule to have a significant impact 
on small entities within the meaning of the Regulatory Flexibility Act, 
5 U.S.C. 601, et seq., because it merely clarifies how the clause 
prescription addresses applicability when an exception to the Buy 
American statute or Balance of Payments Program applies.
    This proposed rule does not add any new reporting, recordkeeping, 
and other compliance requirements. The rule does not duplicate, 
overlap, or conflict with any other Federal rules. There are no known 
significant alternatives to the rule.
    DoD invites comments from small business concerns and other 
interested parties on the expected impact of this rule on small 
entities.
    DoD will also consider comments from small entities concerning the 
existing regulations in subparts affected by this rule in accordance 
with 5 U.S.C. 610. Interested parties must submit such comments 
separately and should cite 5 U.S.C. 610 (DFARS Case 2015-D037), in 
correspondence.

V. Paperwork Reduction Act

    The rule contains 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); however, these changes to the 
DFARS do not impose additional information collection requirements to 
the paperwork burden previously approved under OMB Control Number 0704-
0229, entitled Defense Federal Acquisition Regulation Supplement Part 
225, Foreign Acquisition and related clauses.

List of Subjects in 48 CFR Part 225

    Government procurement.

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

    Therefore, 48 CFR part 225 is proposed to be amended as follows:

PART 225--FOREIGN ACQUISITION

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

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


225.1100  [Amended]

0
2. Remove ``Subparts'' in two places and add ``subparts'' in their 
place.
0
3. Amend section 225.1101 by--
0
a. Revising paragraph (2)(i)(C);
0
b. Redesignating paragraphs (2)(i)(D) and (E) as paragraphs (2)(i)(E) 
and (F); and
0
c. Adding a new paragraph (2)(i)(D).
    The revision and addition read as follows:


225.1101  Acquisition of supplies.

* * * * *
    (2)(i) * * *
    (C) The acquisition is for supplies for use within the United 
States and an exception to the Buy American statute applies, e.g., 
nonavailability or public interest (see FAR 25.103 and 225.103); or
    (D) The acquisition is for supplies for use outside the United 
States and an exception to the Balance of Payments Program applies (see 
225.7501);
* * * * *
[FR Doc. 2015-29558 Filed 11-19-15; 8:45 am]
BILLING CODE 5001-06-P

72672 Federal Register / Vol. 80, No. 224 / Friday, November 20, 2015 / Proposed Rules parties on the expected impact of this DEPARTMENT OF DEFENSE FOR FURTHER INFORMATION CONTACT: Ms. rule on small entities. Tresa Sullivan, telephone 571–372– DoD will also consider comments Defense Acquisition Regulations 6089. from small entities concerning the System SUPPLEMENTARY INFORMATION: affected DFARS subpart in accordance with 5 U.S.C. 601. Such comments 48 CFR Part 225 I. Background should be submitted separately and [Docket DARS–2015–0053] DoD is proposing to revise the DFARS should cite 5 U.S.C. 610 (DFARS Case to clarify when it is appropriate to not RIN 0750–AI77 2015–D008) in correspondence. include DFARS clause 252.225–7001, IV. Paperwork Reduction Act Defense Federal Acquisition Buy American and Balance of Payments Regulation Supplement: Buy American Program, with regard to exceptions to The Paperwork Reduction Act does and Balance of Payments Program— the Buy American statute and Balance not apply because the rule does not Clause Prescription (DFARS Case of Payment Program. The prescription impose any information collection 2015–D037) for use of DFARS clause 252.225–7001 requirements that require the approval does not clearly make a distinction with of the Office of Management and Budget AGENCY: Defense Acquisition regard to when an exception to the Buy under 44 U.S.C. chapter 35. Regulations System, Department of American statute or Balance of Defense (DoD). Payments Program applies. As written, List of Subjects in 48 CFR Parts 217 and ACTION: Proposed rule procurement offices may inaccurately 234 believe that it is permissible to omit the SUMMARY: DoD is proposing to amend clause if either situation occurs. Government procurement. the Defense Federal Acquisition However, the clause is required in Jennifer L. Hawes, Regulation Supplement (DFARS) to solicitations and contracts unless (1) the Editor, Defense Acquisition Regulations clarify how the clause prescription acquisition is for supplies for use within System. addresses applicability when an the United States and an exception to exception to the Buy American statute the Buy American statute applies (e.g., Therefore, 48 CFR parts 217 and 234 or Balance of Payments Program nonavailability or public interest), or (2) are proposed to be amended as follows: applies. the acquisition is for supplies for use ■ 1. The authority citation for parts 217 DATES: Comments on the proposed rule outside the United States and an and 234 continues to read as follows: should be submitted in writing to the exception to the Balance of Payments Authority: 41 U.S.C. 1303 and 48 CFR address shown below on or before Program applies. chapter 1. January 19, 2016, to be considered in the formation of a final rule. III. Executive Orders 12866 and 13563 PART 217—SPECIAL CONTRACTING ADDRESSES: Submit comments Executive Orders (E.O.s) 12866 and METHODS identified by DFARS Case 2015–D037, 13563 direct agencies to assess all costs using any of the following methods: and benefits of available regulatory ■ 2. Amend section 217.202 by revising Æ Regulations.gov: http:// alternatives and, if regulation is paragraph (2) to read as follows: www.regulations.gov. Submit comments necessary, to select regulatory via the Federal eRulemaking portal by approaches that maximize net benefits 217.202 Use of options. (including potential economic, entering ‘‘DFARS Case 2015–D037’’ * * * * * under the heading ‘‘Enter keyword or environmental, public health and safety (2) See 234.005–1 for limitations on ID’’ and selecting ‘‘Search.’’ Select the effects, distributive impacts, and the use of contract options for the link ‘‘Submit a Comment’’ that equity). E.O. 13563 emphasizes the provision of advanced component corresponds with ‘‘DFARS Case 2015– importance of quantifying both costs development, prototype, or initial D037.’’ Follow the instructions provided and benefits, of reducing costs, of production of technology developed at the ‘‘Submit a Comment’’ screen. harmonizing rules, and of promoting under the contract or the delivery of Please include your name, company flexibility. This is not a significant initial or additional items. name (if any), and ‘‘DFARS Case 2015– regulatory action and, therefore, was not D037’’ on your attached document. subject to review under section 6(b) of PART 234—MAJOR SYSTEM Æ Email: osd.dfars@mail.mil. Include E.O. 12866, Regulatory Planning and ACQUISITION DFARS Case 2015–D037 in the subject Review, dated September 30, 1993. This line of the message. rule is not a major rule under 5 U.S.C. 234.005–1 [Amended] Æ Fax: 571–372–6094. 804. ■ 3. Amend section 234.005–1— Æ Mail: Defense Acquisition IV. Regulatory Flexibility Act ■ a. In paragraph (1) introductory text, Regulations System, Attn: Ms. Tresa by removing ‘‘component development Sullivan, OUSD(AT&L)DPAP/DARS, DoD does not expect this proposed or prototype of technology’’ and adding Room 3B941, 3060 Defense Pentagon, rule to have a significant economic ‘‘component development, prototype, or Washington, DC 20301–3060. impact on a substantial number of small initial production of technology’’ in its Comments received generally will be entities within the meaning of the posted without change to http:// Regulatory Flexibility Act, 5 U.S.C. 601, mstockstill on DSK4VPTVN1PROD with PROPOSALS place, and removing ‘‘additional prototype items’’ and adding www.regulations.gov, including any et seq., because it applies to internal ‘‘additional items’’ in its place; and personal information provided. To procedures for Government contracting confirm receipt of your comment(s), officers. This proposed rule clarifies ■ b. In paragraph (2), by removing please check www.regulations.gov, how clause prescription addresses ‘‘September 30, 2014’’ and adding approximately two to three days after applicability when an exception to the ‘‘September 30, 2019’’ in its place. submission to verify posting (except Buy American statute or Balance of [FR Doc. 2015–29552 Filed 11–19–15; 8:45 am] allow 30 days for posting of comments Payments Program applies. However, an BILLING CODE 5001–06–P submitted by mail). initial regulatory flexibility analysis has VerDate Sep<11>2014 17:58 Nov 19, 2015 Jkt 238001 PO 00000 Frm 00065 Fmt 4702 Sfmt 4702 E:\FR\FM\20NOP1.SGM 20NOP1

Federal Register / Vol. 80, No. 224 / Friday, November 20, 2015 / Proposed Rules 72673 been performed and is summarized as PART 225—FOREIGN ACQUISITION ADDRESSES: Submit comments in follows: response to DFARS Case 2015–D036 by The objective of this proposed rule is ■ 1. The authority citation for part 225 any of the following methods: to clarify the prescription for use of continues to read as follows: Æ Regulations.gov: http:// DFARS clause 252.225–7001, Buy Authority: 41 U.S.C. 1303 and 48 CFR www.regulations.gov. Submit comments American and Balance of Payments chapter 1. via the Federal eRulemaking portal by Program, to state that the clause does entering ‘‘DFARS Case 2015–D036’’ 225.1100 [Amended] under the heading ‘‘Enter keyword or not apply when (1) the acquisition is for supplies for use within the United ■ 2. Remove ‘‘Subparts’’ in two places ID’’ and selecting ‘‘Search.’’ Select the States and an exception to the Buy and add ‘‘subparts’’ in their place. link ‘‘Submit a Comment’’ that American statute applies, or (2) the ■ 3. Amend section 225.1101 by— corresponds with ‘‘DFARS Case 2015– acquisition is for supplies for use ■ a. Revising paragraph (2)(i)(C); D036.’’ Follow the instructions provided outside the United States and an ■ b. Redesignating paragraphs (2)(i)(D) at the ‘‘Submit a Comment’’ screen. exception to the Balance of Payments and (E) as paragraphs (2)(i)(E) and (F); Please include your name, company Program applies. and name (if any), and ‘‘DFARS Case 2015– ■ c. Adding a new paragraph (2)(i)(D). D036’’ on your attached document. DoD does not expect this proposed The revision and addition read as Æ Email: osd.dfars@mail.mil. Include rule to have a significant impact on follows: DFARS Case 2015–D036 in the subject small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, line of the message. 225.1101 Acquisition of supplies. et seq., because it merely clarifies how Æ Fax: 571–372–6094. * * * * * Æ Mail: Defense Acquisition the clause prescription addresses (2)(i) * * * applicability when an exception to the Regulations System, Attn: Ms. Kyoung (C) The acquisition is for supplies for Lee, OUSD(AT&L) DPAP/DARS, Room Buy American statute or Balance of use within the United States and an Payments Program applies. 3B941, 3060 Defense Pentagon, exception to the Buy American statute Washington, DC 20301–3060. This proposed rule does not add any applies, e.g., nonavailability or public Comments received generally will be new reporting, recordkeeping, and other interest (see FAR 25.103 and 225.103); posted without change to http:// compliance requirements. The rule does or www.regulations.gov, including any not duplicate, overlap, or conflict with (D) The acquisition is for supplies for personal information provided. To any other Federal rules. There are no use outside the United States and an confirm receipt of your comment(s), known significant alternatives to the exception to the Balance of Payments please check www.regulations.gov, rule. Program applies (see 225.7501); approximately two to three days after DoD invites comments from small * * * * * submission to verify posting (except business concerns and other interested [FR Doc. 2015–29558 Filed 11–19–15; 8:45 am] allow 30 days for posting of comments parties on the expected impact of this BILLING CODE 5001–06–P submitted by mail). rule on small entities. FOR FURTHER INFORMATION CONTACT: Ms. DoD will also consider comments Kyoung Lee, telephone: 571–372–6093. from small entities concerning the DEPARTMENT OF DEFENSE SUPPLEMENTARY INFORMATION: existing regulations in subparts affected by this rule in accordance with 5 U.S.C. Defense Acquisition Regulations I. Background 610. Interested parties must submit such System DoD is proposing to revise DFARS comments separately and should cite 5 225.9, Customs and Duties, and the U.S.C. 610 (DFARS Case 2015–D037), in 48 CFR Parts 225 and 252 clause at DFARS 252.225–7013, Duty- correspondence. [Docket DARS–2015–0052] Free Entry, by increasing the duty-free V. Paperwork Reduction Act RIN 0750–AI76 entry threshold on nonqualifying country supplies and ineligible foreign The rule contains information Defense Federal Acquisition supplies from $200 to $300. The current collection requirements that require the Regulation Supplement: Duty-Free threshold was established on April 30, approval of the Office of Management Entry Threshold (DFARS Case 2015– 2003 based on the estimated cost to and Budget under the Paperwork D036) process a duty-free entry certificate at Reduction Act (44 U.S.C. chapter 35); the time. This proposed rule makes an however, these changes to the DFARS AGENCY: Defense Acquisition upward adjustment of the $200 do not impose additional information Regulations System, Department of threshold to $300 based on the U.S. collection requirements to the Defense (DoD). Consumer Price Index (CPI) located at paperwork burden previously approved ACTION: Proposed rule. http://www.bls.gov/CPI/. under OMB Control Number 0704–0229, entitled Defense Federal Acquisition SUMMARY: DoD is proposing to amend II. Executive Orders 12866 and 13563 Regulation Supplement Part 225, the Defense Federal Acquisition Executive Orders (E.O.s) 12866 and Foreign Acquisition and related clauses. Regulation Supplement (DFARS) to 13563 direct agencies to assess all costs update the threshold for duty-free entry and benefits of available regulatory mstockstill on DSK4VPTVN1PROD with PROPOSALS List of Subjects in 48 CFR Part 225 on foreign supplies that are not alternatives and, if regulation is Government procurement. qualifying country supplies or eligible necessary, to select regulatory foreign supplies. approaches that maximize net benefits Jennifer L. Hawes, DATES: Comments on the proposed rule (including potential economic, Editor, Defense Acquisition Regulations System. should be submitted in writing to the environmental, public health and safety address shown below on or before effects, distributive impacts, and Therefore, 48 CFR part 225 is January 19, 2016, to be considered in equity). E.O. 13563 emphasizes the proposed to be amended as follows: the formation of the final rule. importance of quantifying both costs VerDate Sep<11>2014 17:58 Nov 19, 2015 Jkt 238001 PO 00000 Frm 00066 Fmt 4702 Sfmt 4702 E:\FR\FM\20NOP1.SGM 20NOP1


Document Created: 2015-12-14 13:59:11
Document Modified: 2015-12-14 13:59:11
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule
DatesComments on the proposed rule should be submitted in writing to
ContactMs. Tresa Sullivan, telephone 571-372- 6089.
FR Citation80 FR 72672 
RIN Number0750-AI77
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