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8560 Federal Register / Vol. 70, No.

34 / Tuesday, February 22, 2005 / Proposed Rules

in the Commission’s Reference Center DEPARTMENT OF DEFENSE wide policies, delegations of FAR
445 Twelfth Street, SW., Washington, authorities, deviations from FAR
DC 20554. The complete text of this 48 CFR Parts 225 and 252 requirements, and policies/procedures
decision may also be purchased from [DFARS Case 2003–D021] that have a significant effect beyond the
the Commission’s duplicating internal operating procedures of DoD or
contractor, Best Copy and Printing, Inc., Defense Federal Acquisition a significant cost or administrative
445 12th Street, SW., Room CY–B402, Regulation Supplement; Acquisition of impact on contractors or offerors.
Washington, DC 20054, telephone 1– Ball and Roller Bearings Additional information on the DFARS
800–378–3160 or http:// Transformation initiative is available at
AGENCY:Department of Defense (DoD). http://www.acq.osd.mil/dpap/dfars/
www.BCPIWEB.com.
Proposed rule with request for
ACTION: transf.htm.
Provisions of the Regulatory comments. 10 U.S.C. 2534 and annual Defense
Flexibility Act of l980 do not apply to appropriations acts contain restrictions
this proceeding. This document does SUMMARY: DoD is proposing to amend on the acquisition of foreign ball and
not contain proposed information the Defense Federal Acquisition roller bearings. These restrictions are
collection requirements subject to the Regulation Supplement (DFARS) to implemented in DFARS 225.7009 and in
Paperwork Reduction Act of 1995, update text pertaining to restrictions on the clause at DFARS 252.225–7016,
Public Law 104–13. In addition, the acquisition of foreign ball and roller Restriction on Acquisition of Ball and
therefore, it does not contain any bearings. This proposed rule is a result Roller Bearings. This rule proposes to
proposed information collection burden of a transformation initiative undertaken clarify DFARS 225.7009 and 252.225–
by DoD to dramatically change the 7016 by (1) only addressing the
‘‘for small business concerns with fewer
purpose and content of the DFARS. exceptions, waivers, and waiver
than 25 employees,’’ pursuant to the
Small Business Paperwork Relief Act of DATES: Comments on the proposed rule authority available to the contracting
should be submitted in writing to the officer under current law; and (2)
2002, Public Law 107–198, see 44 U.S.C.
address shown below on or before April applying the exception to 10 U.S.C.
3506(c)(4).
25, 2005, to be considered in the 2534, authorized by Section 8003 of the
Members of the public should note formation of the final rule. Federal Acquisition Streamlining Act of
that from the time a Notice of Proposed ADDRESSES: You may submit comments, 1994 (Public Law 103–355; 41 U.S.C.
Rule Making is issued until the matter identified by DFARS Case 2003–D021, 430), as implemented at DFARS
is no longer subject to Commission using any of the following methods: 212.504(a)(xviii), to bearings that are
consideration or court review, all ex • Federal eRulemaking Portal: http:// commercial components of non-
parte contacts are prohibited in www.regulations.gov. Follow the commercial end items or components.
Commission proceedings, such as this instructions for submitting comments. The only exception to the annual
one, which involve channel allotments. • Defense Acquisition Regulations Defense appropriations act restrictions
See 47 CFR 1.1204(b) for rules Web Site: http://emissary.acq.osd.mil/ on the acquisition of foreign bearings is
governing permissible ex parte contact. dar/dfars.nsf/pubcomm. Follow the the exception for contracts or
instructions for submitting comments. subcontracts for the acquisition of
For information regarding proper commercial items, except for
filing procedures for comments, see 47 • E-mail: dfars@osd.mil. Include
DFARS Case 2003–D021 in the subject commercial ball and roller bearings
CFR 1.415 and 1.420. acquired as end items. 10 U.S.C. 2534,
line of the message.
List of Subjects in 47 CFR Part 73 • Fax: (703) 602–0350. as currently implemented at DFARS
• Mail: Defense Acquisition 225.7009–2(a)(2), provides an exception
Radio, Radio broadcasting. Regulations Council, Attn: Ms. Amy for commercial items incorporating ball
Williams, OUSD(AT&L)DPAP(DAR), or roller bearings. This exception does
For the reasons discussed in the not apply to bearings that are
preamble, the Federal Communications IMD 3C132, 3062 Defense Pentagon,
Washington, DC 20301–3062. commercial components of a non-
Commission proposes to amend 47 CFR commercial item. However, as a result
part 73 as follows: • Hand Delivery/Courier: Defense
Acquisition Regulations Council, of Section 8003 of the Federal
Crystal Square 4, Suite 200A, 241 18th Acquisition Streamlining Act of 1994,
PART 73—RADIO BROADCAST DFARS 212.504(a)(xviii) lists 10 U.S.C.
SERVICES Street, Arlington, VA 22202–3402.
All comments received will be posted 2534 as a law that is not applicable to
to http://emissary.acq.osd.mil/dar/ subcontracts at any tier for the
1. The authority citation for part 73 acquisition of commercial items.
continues to read as follows: dfars.nsf.
Applying this ‘‘any tier’’ interpretation
Authority: 47 U.S.C. 154, 303, 334 and 336. FOR FURTHER INFORMATION CONTACT: Ms. to bearings would be consistent with the
Amy Williams, (703) 602–0328. annual Defense appropriations acts’
§ 73.202 [Amended] SUPPLEMENTARY INFORMATION: commercial item exception, and would
2. Section 73.202(b), the Table of FM provide a single consistent exception to
A. Background
Allotments under Texas, is amended by the statutory restrictions on the
This proposed rule is a result of acquisition of foreign bearings.
adding Paint Rock, Channel 296C3. DFARS Transformation, which is a The annual Defense appropriations
Federal Communications Commission. major DoD initiative to dramatically acts allow the Secretary of a military
John A. Karousos, change the purpose and content of the department to waive bearing domestic
Assistant Chief, Audio Division, Media DFARS. The objective is to improve the source restrictions on a case-by-case
Bureau. efficiency and effectiveness of the basis. The justification for the waiver
[FR Doc. 05–3312 Filed 2–18–05; 8:45 am] acquisition process, while allowing must establish that (1) adequate
acquisition workforce the flexibility to domestic supplies are not available to
BILLING CODE 6712–01–P
innovate. The transformed DFARS will meet DoD requirements on a timely
contain only requirements of law, DoD- basis; and (2) such an acquisition must

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Federal Register / Vol. 70, No. 34 / Tuesday, February 22, 2005 / Proposed Rules 8561

be made in order to acquire capability (Pub. L. 103–355; 41 U.S.C. 430). The 225.7009–2 Restriction.
for national security purposes. The proposed rule will apply to Do not acquire ball and roller bearings
waiver authorities of 10 U.S.C. 2354 are manufacturers of commercial bearings, or bearing components unless the
unusable, except to the extent that they and manufacturers of noncommercial bearings and bearing components are
can also meet the waiver requirements products that incorporate commercial manufactured in the United States or
of the annual Defense appropriations bearings. Manufacturers of domestic Canada.
acts. Therefore, this proposed rule commercial bearings may face increased
eliminates from the DFARS the competition from foreign commercial 225.7009–3 Exception.
exceptions and waivers authorized by bearing manufacturers, but The restriction in 225.7009–2 does
10 U.S.C. 2534, that are rendered manufacturers of noncommercial not apply to contracts or subcontracts
ineffective by the overriding restrictions products incorporating bearings will be for the acquisition of commercial items,
of the annual Defense appropriations relieved of extensive administrative except for commercial ball and roller
acts. burdens in tracking the source of bearings acquired as end items.
The current DFARS also includes commercial bearings and requesting
225.7009–4 Waiver.
several more restrictive waiver waivers from domestic source
requirements that derive from the 1992 requirements. All entities will benefit The Secretary of the department
DFARS. These waiver requirements from the increased simplicity and responsible for acquisition may waive
relate to multiyear acquisitions and clarity of the regulations. the restriction in 225.7009–2, on a case-
miniature and instrument ball bearings. A copy of the analysis may be by-case basis, by certifying to the House
Although 10 U.S.C. 2534(a) imposes the obtained from the point of contact and Senate Committees on
restrictions of the 1992 DFARS, 10 specified herein. DoD invites comments Appropriations that—
U.S.C. 2534(d) provides new waiver from small businesses and other (a) Adequate domestic supplies are
authority that supersedes the prior more interested parties. DoD also will not available to meet DoD requirements
restrictive waiver authority of the 1992 consider comments from small entities on a timely basis; and
DFARS. This rule proposes to remove concerning the affected DFARS subparts (b) The acquisition must be made in
the 1992 waiver restrictions from the in accordance with 5 U.S.C. 610. Such order to acquire capability for national
DFARS, which would substantially comments should be submitted security purposes.
reduce paperwork burden for 3. Section 225.7009–5 is added to
separately and should cite DFARS Case
contractors. read as follows:
2003–D021.
This rule was not subject to Office of 225.7009–5 Contract clause.
Management and Budget review under C. Paperwork Reduction Act
Use the clause at 252.225–7016,
Executive Order 12866, dated The information collection and Restriction on Acquisition of Ball and
September 30, 1993. recordkeeping requirements of the Roller Bearings, in solicitations and
B. Regulatory Flexibility Act clause at 252.225–7016, Restriction on contracts, unless—
Acquisition of Ball and Roller Bearings, (a) The items being acquired are
The proposed rule may have a are approved through March 31, 2007,
significant economic impact on a commercial items other than ball or
under Office of Management and Budget roller bearings acquired as end items;
substantial number of small entities Clearance 0704–0229. The proposed
within the meaning of the Regulatory (b) The items being acquired do not
changes will reduce the estimated contain ball and roller bearings; or
Flexibility Act, 5 U.S.C. 601, et seq., annual burden on contractors by (c) A waiver has been granted in
because it permits the acquisition of 301,600 hours. accordance with 225.7009–4.
foreign commercial bearings that are
components of noncommercial items. List of Subjects in 48 CFR Parts 225 and
PART 252—SOLICITATION
Although existing language at DFARS 252
PROVISIONS AND CONTRACT
212.504(a)(xviii) provides that 10 U.S.C. Government procurement. CLAUSES
2534 is not applicable to subcontracts at
any tier for the acquisition of Michele P. Peterson, 252.212–7001 [Amended]
commercial items, DoD is not certain to Editor, Defense Acquisition Regulations 4. Section 252.212–7001 is amended
System.
what extent this authority has been as follows:
implemented due to the inconsistent Therefore, DoD proposes to amend 48 a. By revising the clause date to read
requirements in DFARS Part 225. This CFR Parts 225 and 252 as follows: ‘‘(XXX 2005)’’;
proposed rule resolves that b. In paragraph (b), in entry ‘‘252.225–
PART 225—FOREIGN ACQUISITION
inconsistency. An initial regulatory 7016’’, by removing ‘‘(MAY 2004)’’ and
flexibility analysis has been prepared 1. The authority citation for 48 CFR adding in its place ‘‘(XXX 2005)’’; and
and is summarized as follows: Parts 225 and 252 continues to read as c. In paragraph (b), in entry ‘‘252.225–
This proposed rule establishes a follows: 7016’’, by removing ‘‘(APR 2003)’’ and
consistent exception to restrictions on Authority: 41 U.S.C. 421 and 48 CFR adding in its place ‘‘(XXX 2005)’’.
the acquisition of foreign ball and roller Chapter 1. 5. Section 252.225–7016 is revised to
bearings, to apply to the acquisition of read as follows:
2. Sections 225.7009–1 through
commercial bearings. The objective of
225.7009–4 are revised to read as 252.225–7016 Restriction on Acquisition
the proposed rule is to increase clarity of Ball and Roller Bearings.
follows:
of the regulations and reduce
As prescribed in 225.7009–5, use the
administrative burden for DoD 225.7009–1 Scope.
following clause:
contractors. The legal basis for the This section implements—
proposed rule is 10 U.S.C. 2534; Section (a) 10 U.S.C. 2534; and Restriction on Acquisition of Ball and Roller
8059 of the Defense Appropriations Act (b) Section 8064 of the Fiscal Year Bearings (XXX 2005)
for Fiscal Year 2005 (Pub. L. 108–287); 2001 DoD Appropriations Act (Public (a) Definition. Bearing components, as used
and Section 8003 of the Federal Law 106–259) and similar sections in in this clause, means the bearing element,
Acquisition Streamlining Act of 1994 subsequent DoD appropriations acts. retainer, inner race, or outer race.

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8562 Federal Register / Vol. 70, No. 34 / Tuesday, February 22, 2005 / Proposed Rules

(b) Except as provided in paragraph (c) of • E-mail: dfars@osd.mil. Include Circular A–120, Guidelines for the Use
this clause, all ball and roller bearings and DFARS Case 2003–D042 in the subject of Advisory and Assistance Services,
ball and roller bearing components delivered line of the message. which was rescinded in 1993. OMB
under this contract, either as end items or
• Fax: (703) 602–0350. Circular A–120 was replaced by OFPP
components of end items, shall be wholly
manufactured in the United States or Canada. • Mail: Defense Acquisition Policy Letter 93–1, Management
Unless otherwise specified, raw materials, Regulations Council, Attn: Ms. Robin Oversight of Service Contracting, which
such as preformed bar, tube, or rod stock and Schulze, OUSD(AT&L)DPAP(DAR), IMD is implemented in FAR Subpart 37.5.
lubricants, need not be mined or produced in 3C132, 3062 Defense Pentagon, This rule was not subject to Office of
the United States or Canada. Washington, DC 20301–3062. Management and Budget review under
(c) The restriction in paragraph (b) of this • Hand Delivery/Courier: Defense Executive Order 12866, dated
clause does not apply to ball or roller Acquisition Regulations Council, September 30, 1993.
bearings that are acquired as components if—
(1) The end items or components
Crystal Square 4, Suite 200A, 241 18th
Street, Arlington, VA 22202–3402. B. Regulatory Flexibility Act
containing ball or roller bearings are
commercial items; or All comments received will be posted DoD does not expect this rule to have
(2) The ball or roller bearings are to http://emissary.acq.osd.mil/dar/ a significant economic impact on a
commercial components. dfars.nsf. substantial number of small entities
(d) The restriction in paragraph (b) of this within the meaning of the Regulatory
clause may be waived upon request from the FOR FURTHER INFORMATION CONTACT: Ms.
Robin Schulze, (703) 602–0326. Flexibility Act, 5 U.S.C. 601, et seq.,
Contractor in accordance with subsection because the rule makes no significant
225.7009–4 of the Defense Federal SUPPLEMENTARY INFORMATION:
Acquisition Regulation Supplement.
change to contracting policy. Therefore,
(e) The Contractor shall insert the A. Background DoD has not performed an initial
substance of this clause, including this regulatory flexibility analysis. DoD
DFARS Transformation is a major
paragraph (e), in all subcontracts, except invites comments from small businesses
DoD initiative to dramatically change
those for— and other interested parties. DoD also
(1) Commercial items; or the purpose and content of the DFARS.
will consider comments from small
(2) Items that do not contain ball or roller The objective is to improve the
entities concerning the affected DFARS
bearings. efficiency and effectiveness of the
subpart in accordance with 5 U.S.C.
(End of clause) acquisition process, while allowing the
610. Such comments should be
acquisition workforce the flexibility to
[FR Doc. 05–3201 Filed 2–18–05; 8:45 am] submitted separately and should cite
innovate. The transformed DFARS will
BILLING CODE 5001–08–P DFARS Case 2003–D042.
contain only requirements of law, DoD-
wide policies, delegations of FAR C. Paperwork Reduction Act
authorities, deviations from FAR The Paperwork Reduction Act does
DEPARTMENT OF DEFENSE
requirements, and policies/procedures not apply because the rule does not
48 CFR Part 237 that have a significant effect beyond the impose any information collection
internal operating procedures of DoD or requirements that require the approval
[DFARS Case 2003–D042] a significant cost or administrative of the Office of Management and Budget
impact on contractors or offerors. under 44 U.S.C. 3501, et seq.
Defense Federal Acquisition
Additional information on the DFARS
Regulation Supplement; Advisory and List of Subjects in 48 CFR Part 237
Transformation initiative is available at
Assistance Services
http://www.acq.osd.mil/dpap/dfars/ Government procurement.
AGENCY: Department of Defense (DoD). transf.htm.
ACTION: Proposed rule with request for This proposed rule is a result of the Michele P. Peterson,
comments. DFARS Transformation initiative. The Editor, Defense Acquisition Regulations
proposed changes— System.
SUMMARY: DoD is proposing to amend • Delete the definition of ‘‘advisory Therefore, DoD proposes to amend 48
the Defense Federal Acquisition and assistance services’’ at DFARS CFR part 237 as follows:
Regulation Supplement (DFARS) to 237.201. The definition is used
update text pertaining to the acquisition primarily for budget reporting under 10 PART 237—SERVICE CONTRACTING
of advisory and assistance services. This U.S.C. 2212, and is adequately 1. The authority citation for 48 CFR
proposed rule is a result of a addressed in financial management part 237 continues to read as follows:
transformation initiative undertaken by regulations.
Authority: 41 U.S.C. 421 and 48 CFR
DoD to dramatically change the purpose • Delete obsolete text on contracting
and content of the DFARS. Chapter 1.
for engineering and technical services at
DATES: Comments on the proposed rule DFARS 237.203. This text was based on 237.201 and 237.203 [Removed]
should be submitted in writing to the DoD Directive 1130.2, Engineering and 2. Sections 237.201 and 237.203 are
address shown below on or before April Technical Sevices—Management removed.
25, 2005, to be considered in the Control, which was cancelled in 1990. 3. Section 237.270 is revised to read
formation of the final rule. • Delete a reference listing of DoD as follows:
ADDRESSES: You may submit comments, publications that govern the conduct of
identified by DFARS Case 2003–D042, audits at DFARS 237.270. This list will 237.270 Acquisition of audit services.
using any of the following methods: be relocated to the new DFARS (a) General policy.
• Federal eRulemaking Portal: http:// companion resource, Procedures, (1) Do not contract for audit services
www.regulations.gov. Follow the Guidance, and Information, available at unless—
instructions for submitting comments. http://www.acq.osd.mil/dpap/dars/pgi. (i) The cognizant DoD audit
• Defense Acquisition Regulations • Delete obsolete text on management organization determines that expertise
Web Site: http://emissary.acq.osd.mil/ controls and requesting activity required to perform the audit is not
dar/dfars.nsf/pubcomm. Follow the responsibilities at DFARS 237.271 and available within the DoD audit
instructions for submitting comments. 237.272. This text was based on OMB organization; or

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