80 FR 81812 - Negotiation of a Reciprocal Defense Procurement Memorandum of Understanding With the Ministry of Defense of Japan

DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System

Federal Register Volume 80, Issue 251 (December 31, 2015)

On behalf of the U.S. Government, DoD is contemplating negotiating and concluding a Reciprocal Defense Procurement Memorandum of Understanding with the Ministry of Defense of Japan. DoD is requesting industry feedback regarding its experience in public defense procurements conducted by or on behalf of the Japanese Ministry of Defense or Armed Forces.

[Federal Register Volume 80, Number 251 (Thursday, December 31, 2015)]
[Notices]
[Pages 81812-81813]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32945]


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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

[Docket No. DARS-2015-0071]


Negotiation of a Reciprocal Defense Procurement Memorandum of 
Understanding With the Ministry of Defense of Japan

AGENCY: Department of Defense (DoD).

ACTION: Request for public comments.

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SUMMARY: On behalf of the U.S. Government, DoD is contemplating 
negotiating and concluding a Reciprocal Defense Procurement Memorandum 
of Understanding with the Ministry of Defense of Japan. DoD is 
requesting industry feedback regarding its experience in public defense 
procurements conducted by or on behalf of the Japanese Ministry of 
Defense or Armed Forces.

DATES: Submit written comments to the address shown below on or 
February 1, 2016.

ADDRESSES: Submit comments to Defense Procurement and Acquisition 
Policy, Attn: Ms. Patricia Foley, 3060 Defense Pentagon, Room 5E621, 
Washington, DC 20301-3060; or by email to 
[email protected].

FOR FURTHER INFORMATION CONTACT: Ms. Patricia Foley, Senior Analyst, 
Office of the Under Secretary of Defense for Acquisition, Technology 
and Logistics (OUSD(AT&L)), Defense Procurement and Acquisition Policy, 
Contract Policy and International Contracting; Room 5E621, 3060 Defense 
Pentagon, Washington, DC 20301-3060; telephone (703) 693-1145.

SUPPLEMENTARY INFORMATION: DoD has concluded Reciprocal Defense 
Procurement (RDP) Memorandums of Understanding (MOUs) with 23 
``qualifying countries'' at the level of the Secretary of Defense and 
his counterpart. The purpose of RDP MOUs is to promote rationalization, 
standardization, and interoperability of conventional defense equipment 
with allies and other friendly governments. These MOUs provide a 
framework for ongoing communication regarding market access and 
procurement matters that enhance effective defense cooperation.
    RDP MOUs generally include language by which the Parties agree that 
their defense procurements will be conducted in accordance with certain 
implementing procedures. These procedures relate to--
     Publication of notices of proposed purchases;
     The content and availability of solicitations for proposed 
purchases;
     Notification to each unsuccessful offeror;
     Feedback, upon request, to unsuccessful offerors 
concerning the reasons they were not allowed to participate in a 
procurement or were not awarded a contract; and
     Provision for the hearing and review of complaints arising 
in connection with any phase of the procurement process to ensure that, 
to the extent possible, complaints are equitably and expeditiously 
resolved.
    Based on the MOU, each country affords the other country certain 
benefits on a reciprocal basis consistent with national laws and 
regulations. The benefits that the United States accords to the 
products of qualifying countries include--
     Offers of qualifying country end products are evaluated 
without applying the price differentials otherwise required by the Buy 
American statute and the Balance of Payments Program;
     The chemical warfare protection clothing restrictions in 
10 U.S.C. 2533a and the specialty metals restriction in 10 U.S.C. 
2533b(a)(1) do not apply to products manufactured in a qualifying 
country; and
     Customs, taxes, and duties are waived for qualifying 
country end products and components of defense procurements.
    If DoD (for the U.S. Government) concludes an RDP MOU with the 
Ministry of Defense of Japan, then Japan would be listed as one of the 
``qualifying countries'' in the definition of ``qualifying country'' at 
DFARS 225.003, and offers of products of Japan or that contain 
components from Japan would be afforded the benefits available to all 
qualifying countries. This also means that U.S. products would be 
exempt from any analogous ``Buy Japan'' laws or policies applicable to 
procurements by the Japan Ministry of Defense or Armed Forces.
    While DoD is evaluating Japan's laws and regulations in this area, 
DoD would benefit from U.S. industry's experience in participating in 
Japan's public defense procurements. DoD is, therefore, asking U.S. 
firms that have participated

[[Page 81813]]

or attempted to participate in procurements by or on behalf of Japan's 
Ministry of Defense or Armed Forces to let us know if the procurements 
were conducted with transparency, integrity, fairness, and due process 
in accordance with published procedures, and if not, the nature of the 
problems encountered.
    DoD is also interested in comments relating to the degree of 
reciprocity that exists between the United States and Japan when it 
comes to the openness of defense procurements to offers of products 
from the other country.

Jennifer L. Hawes,
Editor, Defense Acquisition Regulations System.
[FR Doc. 2015-32945 Filed 12-30-15; 8:45 am]
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