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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: June 25, 2004

SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Polyacrylonitrile Carbon Fiber -- Restriction to Domestic Sources

SOURCE: Federal Register, June 25, 2004, Vol. 69, No. 122, page 35567

AGENCIES: Department of Defense (DOD)

ACTION: Proposed Rule

SYNOPSIS: DOD is proposing to amend DFARS 225.7103, Polyacrylonitrile (PAN) Carbon Fiber, to extend the ending date for phasing out domestic source restrictions on the acquisition of PAN carbon fiber from May 31, 2005, to May 31, 2006.

DATES: Comments on the proposed rule must be submitted on or before August 24, 2004.

ADDRESSES: Submit comments, identified by "DFARS Case 2004-D002," to: (1) http://www.regulations.gov; (2) http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm; (3) e-mail: dfars@osd.mil; fax: 703-602-0350; (4) mail: Defense Acquisition Regulations Council, Attn: Amy Williams, OUSD (AT&L) DPAP (DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; (5) hand-delivery/courier: Defense Acquisition Regulations Council, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 22202-3402.

FOR FURTHER INFORMATION CONTACT: Amy Williams, 703-602-0328.

SUPPLEMENTARY INFORMATION: DFARS 225.7103 imposes restrictions on the acquisition of PAN carbon fiber from foreign sources, and this is implemented in contracts by the inclusion of DFARS 252.225-7022, Restriction on Acquisition of Polyacrylonitrile (PAN) Carbon Fiber.

On December 13, 2000, DFARS 225.7103 was amended to phase out the PAN carbon fiber restrictions by May 31, 2005 (see the December 13, 2000, FEDERAL CONTRACTS DISPATCH "Defense Federal Acquisition Regulation Supplement (DFARS); Polyacrylonitrile (PAN) Carbon Fiber"). The aerospace industry has requested an extension of the phase-out to provide U.S. companies sufficient time to maintain the industrial and technological capability to support a critical material used in advanced aerospace weapons programs. DOD considers a one-year extension to be appropriate at this time. Therefore, this proposed rule would amend the second sentence of DFARS 225.7103-1, Policy, to change the ending date of the restrictions from "May 1, 2005" to "May 1, 2006." Also, this proposed rule would amend DFARS 225.7103-3, Contract Clause, to require that DFARS 252.225-7022 be included "in solicitations and contracts for major systems issued on or before May 31, 2006, if the system is not yet in engineering and manufacturing development (milestone B as defined in DODI [DOD Instruction] 5000.2 [Operation of the Defense Acquisition System])."

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2004 by Panoptic Enterprises. All Rights Reserved.

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