Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH
DATE: February 22, 2005
SUBJECT: Defense Federal Acquisition Regulation Supplement (DFARS); Acquisition of Ball and Roller Bearings
SOURCE: Federal Register, February 22, 2005, Vol. 70, No. 34, page 8560
AGENCIES: Department of Defense (DOD)
ACTION: Proposed Rule
SYNOPSIS: DOD is proposing to establish a consistent exception for commercial bearings to restrictions on the acquisition of foreign ball and roller bearings by amending DFARS 225.7009, Restrictions on Ball and Roller Bearings, and the associated clause at DFARS 252.225-7016, Restriction on Acquisition of Ball and Roller Bearings.
DATES: Comments on the proposed rule should be submitted on or before April 25, 2005.
ADDRESSES: Respondents may submit comments directly on the Federal eRulemaking Portal at http://www.regulations.gov; on the web site at http://emissary.acq.osd.mil/dar/dfars.nsf/pubcomm; by e-mail to: firstname.lastname@example.org; by fax to 703-602-0350; by mail to Defense Acquisition Regulations Council, Attn: Amy Williams, OUSD(AT&L)DP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062; or by courier/hand to Defense Acquisition Regulations Council, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 22202-3402. Cite "DFARS Case 2003-D021" when making comments on this proposed rule.
FOR FURTHER INFORMATION CONTACT: Amy Williams, 703-602-0328.
SUPPLEMENTARY INFORMATION: DFARS 225.7009 and DFARS 252.225-7016 implement various restrictions on the acquisition of foreign ball and roller bearings contained in annual DOD appropriations acts and 10 U.S.C. 2534. This proposed rule would clarify DFARS 225.7009 and DFARS 252.225-7016 by (1) only addressing the exceptions, waivers, and waiver authority available to the contracting officer under current law; and (2) applying the exception to 10 U.S.C. 2534, which provides an exception for commercial items incorporating ball or roller bearings, to bearings that are commercial components of non-commercial end items or components.
DFARS 225.7009 would be completely rewritten and streamlined as follows:
- DFARS 225.7009-1, Scope, would be added, to state that the section implements 10 U.S.C. 2534 and “Section 8064 of the Fiscal Year 2001 DOD Appropriations Act (Pub. L. 106-259) and similar sections in subsequent DOD appropriations acts.”
- DFARS 225.7009-1, Restrictions, would be redesignated as DFARS 225.7009-2 and reduced to the statement “Do not acquire ball and roller bearings or bearing components unless the bearings and bearing components are manufactured in the United States or Canada.”
- DFARS 225.7009-2, Exceptions, would be redesignated as DFARS 225.7009-3, and all the exceptions in paragraph (a) would be deleted. All that would remain is the statement in current paragraph (b): “The restriction in [DFARS] 225.7009-2 does not apply to contracts or subcontracts for the acquisition of commercial items, except for commercial ball and roller bearings acquired as end items.”
- DFARS 225.7009-3, Waiver, would be redesignated as DFARS 225.7009-4, and all the waivers in paragraphs (a) and (b), most of which are authorized by 10 U.S.C. 2534, would be deleted because they are rendered ineffective by the overriding restrictions of the annual DOD appropriations acts. Also, the waiver requirements in subparagraphs (b)(3) and (4), which relate to multiyear acquisitions and miniature and instrument ball bearings, respectively, would be deleted because they derive from the 1992 DFARS, and 10 U.S.C. 2534(d) provides new waiver authority that supersedes the prior more restrictive waiver authority of the 1992 DFARS. All that would remain is the authority in current paragraph (c) for the Secretary of Defense to waive the restrictions on a case-by-case basis.
- DFARS 225.7009-4, Contract Clause, would be redesignated as DFARS 225.7009-5, and it would require that DFARS 252.225-7016 be included in solicitations and contracts unless “(a) the items being acquired are commercial items other than ball or roller bearings acquired as end items; (b) the items being acquired do not contain ball or roller bearings; or (c) a waiver has been granted in accordance with [DFARS] 225.7009-4” (paragraphs (a) and (c) would be added, and the statement “or an exception applies or a waiver has been granted, other than the waiver for the United Kingdom, which has been incorporated into the clause” would be deleted). Also, the prescription that Alternate I be included in solicitations and contracts that use simplified acquisition procedures would be deleted.
DFARS 252.225-7016 would be revised as follows:
- All references to miniature and instrument ball bearings (in paragraphs (a)(2), (b), and (d)) would be deleted.
- Paragraph (c)(ii), which states that the restriction in the clause do not apply to ball or roller bearings that are acquired as components if “the ball or roller bearings are commercial components manufactured in the United Kingdom” would be revised by deleting “manufactured in the United Kingdom”.
- Paragraph (e), which requires the contractor to “retain records showing compliance with the restriction...of this clause until 3 years after final payment...” would be deleted.
- Alternate I would be deleted.
FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953.
Copyright 2005 by Panoptic Enterprises. All Rights Reserved.
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