Barry McVay's FEDERAL CONTRACTS DISPATCH
DATE: December 13, 2000
FROM: Barry McVay, CPCM
SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Domestic Source Restrictions on Ball and Roller Bearings and Vessel Propellers
SOURCE: Federal Register, December 13, 2000, Vol. 65, No. 240, page 77827
AGENCIES: Department of Defense (DOD)
ACTION: Interim Rule
SYNOPSIS: DOD is amending DFARS 225.7019, Restrictions on Ball and Roller Bearings, and adding DFARS 225.7020, Restriction on Vessel Propellers, to implement Section 8064 of the DOD Appropriations Act for Fiscal Year 2001 (Public Law 106-259) and Section 805 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (Public Law 106-398).
EDITOR'S NOTE: For more on the acquisition-related provisions of Public Law 106-398, see the November 2, 2000, FEDERAL CONTRACTS DISPATCH "Enactment of the National Defense Authorization Act of Fiscal Year 2001."
DATES: This interim rule is effective December 13, 2000. Comments on the interim rule should be submitted on or before February 12, 2001, to be considered in the formation of the final rule.
ADDRESSES: E-mailed comments are preferred. Submit comments to email@example.com, and cite DFARS Case 2001-D301 in the subject line. Those who cannot submit comments by e-mail may submit their comments to the Defense Acquisition Regulations Council, Attn: Ms. Amy Williams, OUSD(AT&L) DP (DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; fax: 703-602-0350. Cite DFARS Case 2000-D301 when referring to this interim rule.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, 703-602-0288.
SUPPLEMENTAL INFORMATION: Section 8064 of Public Law 106-259 restricts the acquisition of ball and roller bearings and vessel propellers to those of domestic origin produced by a domestic source. However, the restriction does not apply to the purchase of commercial items, except ball or roller bearings purchased as end items.
Section 805 of Public Law 106-398 extends the restriction on acquisition of ball and roller bearings at 10 U.S.C. 2534 through fiscal year 2005.
Because Section 8064 of Public Law 106-259 went into effect August 9, 2000, and Section 805 of Public Law 106-398 went into effect October 30, 2000, DOD decided to issue this interim rule and to consider comments before finalizing the rule.
The following are the significant changes being made by this interim rule:
- Paragraph (a)(xi) of DFARS 212.503, Applicability of Certain Laws to Executive Agency Contracts for the Acquisition of Commercial Items, and paragraph (a)(xxv) of DFARS 212.504, Applicability of Certain Laws to Subcontracts for the Acquisition of Commercial Items, are modified to apply the restrictions in paragraph (b) of DFARS 225.7019-2, Exceptions, to contracts and subcontracts for commercial items "unless the restriction specifically applies to commercial items" (see below).
- Paragraph (a) of DFARS 225.7019-1, Restrictions, "fiscal year 2000" is replaced with "fiscal year 2005".
- Paragraph (b) of DFARS 225.7019-2, Exceptions, is revised to exclude "commercial ball and roller bearings acquired as end items" from the exception for contracts or subcontracts of commercial items.
- DFARS 225.7019-4, Contract Clause, is revised to add a requirement that solicitations and contracts that use simplified acquisition procedures use Alternate I of DFARS 252.225-7016, Restriction on Acquisition of Ball and Roller Bearings, which is added by this final rule (see below).
- DFARS 225.7020, Restriction on Vessel Propellers, is added. DFARS 225.7020 consists of the following four subsections:
- DFARS 225.7020-1, Restriction, which prohibits the use of "fiscal year 2000 or 2001 funds to acquire vessel propellers other than those produced by a domestic source of domestic origin, i.e., vessel propellers (a) manufactured in the United States or Canada, and (b) for which all component castings were poured and finished in the United States or Canada."
- DFARS 225.7020-2, Exceptions, which states "this restriction does not apply to contracts or subcontracts for acquisition of commercial items."
- DFARS 225.7020-3, Waiver, which permits the department secretary to waive the restriction on a case-by-case basis by certifying to the House and Senate Committees on Appropriations that "(a) adequate domestic supplies are not available to meet DOD requirements on a timely basis; and (b) the acquisition must be made in order to acquire capability for national security purposes."
- DFARS 225.7020-4, Contract Clause, requires the use of the DFARS 252.225-7023, Restriction on Acquisition of Vessel Propellers, in solicitations and contracts for the acquisition of vessels or vessel propellers, unless the contract or subcontracts are for the acquisition of commercial items, or a waiver has been granted, or the vessels being acquired do not contain vessel propellers. DFARS 252.225-7023 is added by this interim rule (see below).
- Paragraph (a) of DFARS 252.212-7001, Contract Terms and Conditions Required to Implement Statutes or Executive Orders Applicable to Defense Acquisitions of Commercial Items, is amended by adding a new entry for "___252.225-7016, Restriction on Acquisition of Ball and Roller Bearings (____Alternate I) (Section 8064 of Pub. L. 106-259)."
- Alternate I is added to DFARS 252.225-7016, Restriction on Acquisition of Ball and Roller Bearings, for solicitations and contracts that use when simplified acquisition procedures. It revises paragraph (c)(1)(ii), which exempts from the restriction "the ball or roller bearings are commercial components manufactured in the United Kingdom", to state "the ball or roller bearings are commercial components."
- DFARS 252.225-7023, Restriction on Acquisition of Vessel Propellers, is added. It reflects the provisions in DFARS 225.7020-1, DFARS 225.7020-2, and DFARS 225.7020-3.
FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.
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