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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: August 4, 2000

FROM: Barry McVay, CPCM

SUBJECT: Department of Defense (DOD); Waiver of Procurement Limitations on Certain Defense Items Produced in the United Kingdom

SOURCE: Federal Register, August 4, 2000, Vol. 65, No. 151, page 47968

AGENCIES: Department of Defense (DOD)

ACTION: Notice of Waiver

SYNOPSIS: The Under Secretary of Defense (Acquisition, Technology, and Logistics) is extending the waiver of the limitation in 10 U.S.C. 2534 for certain defense items produced in the United Kingdom (UK). 10 U.S.C. 2534 limits DOD procurement of certain items to sources in the national technology and industrial base. The extension will permit continued procurement of these items from sources in the UK.

EFFECTIVE DATE: This waiver is in effect from August 19, 2000, through August 18. 2001.

FOR MORE INFORMATION CONTACT: Mr. Michael Mutty, OUSD (AT&L), Director of Defense Procurement, Foreign Contracting, Room 3C762, 3060 Defense Pentagon, Washington, DC 20301-3060; 703-697-9353.

SUPPLEMENTAL INFORMATION: Subsection (a) of Title 10 of the United States Code, Section 2534 (10 U.S.C. 2534) requires the Secretary of Defense to procure the items listed in that subsection from manufacturers that are part of the national technology and industrial base. However, subsection (i) of 10 U.S.C. 2534 authorizes the secretary to waive this limitation if the waiver is made for a particular item listed in subsection (a) and the waiver is for a particular foreign country. In addition, subsection (d) requires that the secretary determine (1) the limitation "would impede the reciprocal procurement of defense items under a memorandum of understanding providing for reciprocal procurement of defense items," and (2) the foreign country "does not discriminate against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country." The secretary has delegated this waiver authority to the Under Secretary of Defense (Acquisition, Technology, and Logistics).

DOD has a reciprocal procurement Memorandum of Understanding (MOU) with the UK that was signed on December 4, 1994.

The under secretary has determined that the UK does not discriminate against defense items produced in the United States to a greater degree that the United States discriminates against defense items produced in the UK, and that the application of the limitation in 10 U.S.C. 2534 against defense items produced in the UK would impede the reciprocal procurement of defense items under the MOU.

Therefore, under the authority of 10 U.S.C. 2534, the under secretary has determined that application of the limitation of 10 U.S.C. 2534(a) to the procurement of any of the following defense items produced in the UK would impede the reciprocal procurement of defense items under the MOU with the UK:


(EDITOR'S NOTE: Restrictions on the acquisition of gyrocompasses, electronic navigation chart systems, steering controls, pumps, and propulsion and machinery control systems are not covered in the DFARS because the Fiscal Year 1996 Defense Authorization Act (Public Law 106-104) prohibits the use of contract clauses to implement the restrictions.)

This waiver applies only to the limitations in 10 U.S.C. 2534(a). It does not apply to any other limitation, including provisions in the DOD Appropriations Act for Fiscal Year 2000 (Public Law 106-79), Section 8016 (which addresses additional restrictions on welded shipboard anchor and mooring chain 4 inches in diameter and under), and Section 8067 (which addresses ball and roller bearings). This waiver applies to procurements under solicitations issued during the period from August 19, 2000, to August 18, 2001. Similar waivers were granted for the period from August 4, 1999, to August 3, 2000, and from August 4, 1998, to August 3, 1999.

For contracts entered into prior to August 4, 1998, this waiver applies to procurements of the covered U.K. defense items produced under --

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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