[Federal Register: July 3, 2000 (Volume 65, Number 128)]
[Proposed Rules]               
[Page 41037-41038]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]



48 CFR Part 225

[DFARS Case 2000-D017]

Defense Federal Acquisition Regulation Supplement; 
Polyacrylonitrile Carbon Fiber

AGENCY: Department of Defense (DoD).

ACTION: Proposed rule with request for comments.


SUMMARY: The Director of Defense Procurement is proposing to amend the 
Defense Federal Acquisition Regulation Supplement (DFARS) to phase out 
restrictions on the acquisition of polyacrylonitrile (PAN) carbon fiber 
from foreign sources. The restrictions will be phased out over a five-
year period to minimize short-term risks to DoD and current domestic 

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before September 1, 2000, to be 
considered in the formation of the final rule.

ADDRESSES: Interested parties should submit written comments on the 
proposed rule to: Defense Acquisition Regulations Council, Attn: Ms. 
Amy Williams, OUSD (AT&L)DP(DAR), IMD 3D139, 3062 Defense Pentagon, 
Washington, DC 20301-3062. Telefax (703) 602-0350.
    E-mail comments submitted via the Internet should be addressed to: 
    Please cite DFARS Case 2000-D017 in all correspondence related to 
this proposed rule. E-mail correspondence should cite DFARS Case 2000-
D017 in the subject line.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, (703) 602-0288.


A. Background

    This rule proposes revisions to DFARS 225.7103-1 and 225.7103-3 to 
phase out restrictions on the acquisition

[[Page 41038]]

of PAN carbon fiber from foreign sources. DoD conducted a review of the 
administratively imposed restrictions, evaluating DoD applications for 
PAN carbon fiber, key domestic and foreign suppliers, supply and demand 
market information, potential impacts on DoD and key suppliers, and 
potential national security issues. As a result, DoD is proposing to 
phase out the restrictions over the five-year period ending May 31, 
2005. The phased elimination will minimize short-term risks to both DoD 
and current domestic suppliers and will allow for a gradual 
introduction of competition that will encourage innovation and 
emphasize affordability. This action is consistent with DoD's interest 
in promoting vigorous competition in defense markets while ensuring 
that industrial capabilities essential to national defense are 
    This rule was not subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    The proposed rule is not expected 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 there 
are no known domestic small business manufacturers of PAN carbon fiber. 
Therefore, DoD has not performed an initial regulatory flexibility 
analysis. DoD invites comments from small businesses and other 
interested parties. DoD also will consider comments from small entities 
concerning the affected DFARS subpart in accordance with 5 U.S.C. 610. 
Such comments should be submitted separately and should cite DFARS Case 

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the rule does 
not impose any information collection requirements that require the 
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, DoD proposes to amend 48 CFR Part 225 as follows:
    1. The authority citation for 48 CFR Part 225 continues to read as 

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


    2. Section 225.7103-1 is revised to read as follows:

Sec. 225.7103-1  Policy.

    DoD has imposed restrictions on the acquisition of PAN carbon fiber 
from foreign sources. DoD is phasing out the restrictions over the 
five-year period ending May 31, 2005. Contractors with contracts that 
contain the clause at 252.225-7022 must use U.S. or Canadian 
manufacturers or producers for all PAN carbon fiber requirements.
    3. Section 225.7103-3 is revised to read as follows:

Sec. 225.7103-3  Contract clause.

    Use the clause at 252.225-7022, Restriction on Acquisition of 
Polyacrylonitrile (PAN) Carbon Fiber, in solicitations and contracts 
for major systems as follows:
    (a) In solicitations and contracts issued on or before May 31, 
2003, if--
    (1) The system is not yet in production (milestone III as defined 
in DoD 5000.2-R, Mandatory Procedures for Major Defense Acquisition 
Programs (MDAPS) and Major Automated Information System (MAIS) 
Acquisition Programs); or
    (2) The clause was used in prior program contracts.
    (b) In solicitations and contracts issued during the period 
beginning June 1, 2003, and ending May 31, 2005, if the system is not 
yet in engineering and manufacturing development (milestone II as 
defined in DoD 5000.2-R).

[FR Doc. 00-16639 Filed 6-30-00; 8:45 am]