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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: April 23, 2004

SUBJECT: Department of Defense; Incentive Program for Major Defense Acquisition Programs To Use Machine Tools and Other Capital Assets Produced Within the United States

SOURCE: Federal Register, April 23, 2004, Vol. 69, No. 79, page 22011

AGENCIES: Department of Defense (DOD)

ACTION: Request for Comments

SYNOPSIS: DOD is establishing an incentive program in accordance with Section 822 of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136) and is seeking information that will assist it in identifying appropriate incentives for industry to use machine tools and other capital assets produced in the United States.

EDITOR'S NOTE: For more on other acquisition-related provisions of Public Law 108-136, see the November 25, 2003, FEDERAL CONTRACTS DISPATCH "Enactment of the National Defense Authorization Act for Fiscal Year 2004."

DATES: Comments must be submitted on or before May 24, 2004.

ADDRESSES: Submit comments to Director, Defense Procurement and Acquisition Policy, 3060 Defense Pentagon, Attn: Daniel C. Nielsen, Washington, DC 20301-3060; or by e-mail to daniel.nielsen@osd.mil.

FOR FURTHER INFORMATION CONTACT: Susan Hildner, 703-695-4258.

SUPPLEMENTAL INFORMATION: Public Law 108-136, Section 822, Incentive Program for Major Defense Acquisition Programs to Use Machine Tools and Other Capital Assets Produced Within the United States, requires DOD to establish an incentive program for contractors to purchase capital assets manufactured in the United States, and authorizes DOD to use the Industrial Base Capabilities Fund established under Section 814 of Public Law 108-136 for this purpose. This incentive program applies to contracts for major defense acquisition programs and applies to contracts entered into after May 2005.

The notice contains the following: "Industry input is considered essential. What does industry believe are the factors or inducements that would motivate contractors to purchase capital assets manufactured in the United States? It should be noted that no funds have been appropriated for the Industrial Base Capabilities Fund. Therefore, the Department is seeking suggestions for other alternatives. Interested parties are invited to submit written comments to assist the Department in its deliberations and discussions."

The notice goes on to state, "Material that is business confidential information will be exempted from public disclosure as provided for by 5 U.S.C. 552(b)(4) (Freedom of Information Act rules). Anyone submitting business confidential information should clearly identify the business confidential portion of the submission and also provide a non-confidential submission, which can be placed in the public file. Comments not marked business confidential may be subject to disclosure under the Freedom of Information Act."

EDITOR'S NOTE: The notice says that "it is the Department's goal to structure this incentive program and publish interim implementing regulations in the Fall of 2004."

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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