[Federal Register Volume 65, Number 240 (Wednesday, December 13, 2000)]
[Rules and Regulations]
[Page 77832]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-31603]
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DEPARTMENT OF DEFENSE
48 CFR Part 225
[DFARS Case 2000-D017]
Defense Federal Acquisition Regulation Supplement;
Polyacrylonitrile Carbon Fiber
AGENCY: Department of Defense (DoD).
ACTION: Final rule.
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SUMMARY: The Director of Defense Procurement has issued a final rule
amending the Defense Federal Acquisition Regulation Supplement (DFARS)
to phase out restrictions on the acquisition of polyacrylonitrile (PAN)
carbon fiber from foreign sources. The restrictions will be phased out
over a 5-year period to minimize short-term risks to DoD and current
domestic suppliers.
EFFECTIVE DATE: December 13, 2000.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, Defense Acquisition
Regulations Council, OUSD (AT&L) DP (DAR), IMD 3C132, 3062 Defense
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0288;
facsimile (703) 602-0350.
SUPPLEMENTARY INFORMATION:
A. Background
This rule revises DFARS 225.7103-1 and 225.7103-3 to phase out
restrictions on the acquisition of PAN carbon fiber from foreign
sources. DoD conducted a review of the administratively imposed
restrictions that included an evaluation of DoD applications for PAN
carbon fiber, key domestic and foreign suppliers, supply and demand
market information, potential impacts on DoD and key suppliers, and
potential national security issues. As a result, DoD is phasing out the
restrictions over the 5-year period ending May 31, 2005. The phased
elimination will minimize short-term risks to both DoD and current
domestic suppliers and will allow for a gradual introduction of
competition that will encourage innovation and affordability. This
action is consistent with DoD's interest in promoting vigorous
competition in defense markets while ensuring that industrial
capabilities essential to national defense are preserved. The market
for PAN carbon fiber is projected to grow in the future as defense and
commercial application demand increases. The 5-year phase-in period
gives domestic suppliers time to adjust to market conditions and also
gives DoD the flexibility to adjust its policy (i.e., extend the
restrictions) if projected circumstances do not materialize.
DoD published a proposed rule at 65 FR 41037 on July 3, 2000. Three
sources submitted comments on the proposed rule. DoD considered all
comments in the development of the final rule.
This rule was not subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993.
B. Regulatory Flexibility Act
DoD certifies that this final rule will not have a significant
economic impact on a substantial number of small entities within the
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
because the known domestic manufacturers of PAN carbon fiber are not
small businesses.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the rule does
not impose any information collection requirements that require the
approval of the Office of Management and Budget under 44 U.S.C. 3501,
et seq.
List of Subjects in 48 CFR Part 225
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, 48 CFR Part 225 is amended as follows:
1. The authority citation for 48 CFR Part 225 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 225--FOREIGN ACQUISITION
2. Section 225.7103-1 is revised to read as follows:
225.7103-1 Policy.
DoD has imposed restrictions on the acquisitions of PAN carbon
fiber from foreign sources. DoD is phasing out the restrictions over
the 5-year period ending May 31, 2005. Contractors with contracts that
contain the clause at 252.225-7022 must use U.S. or Canadian
manufacturers or producers for all PAN carbon fiber requirements.
3. Section 225.7103-3 is revised to read as follows:
225.7103-3 Contract clause.
Use the clause at 252.225-7022, Restriction on Acquisition of
Polyacrylonitrile (PAN) Carbon Fiber, in solicitations and contracts
for major systems as follows:
(a) In solicitations and contracts issued on or before May 31,
2003, if--
(1) The system is not yet in production (milestone III as defined
in DoD 5000.2-R, Mandatory Procedures for Major Defense Acquisition
Programs (MDAPS) and Major Automated Information System (MAIS)
Acquisition Programs); or
(2) The clause was used in prior program contracts.
(b) In solicitations and contracts issued during the period
beginning June 1, 2003, and ending May 31, 2005, if the system is not
yet in engineering and manufacturing development (milestone II as
defined in DoD 5000.2-R).
[FR Doc. 00-31603 Filed 12-12-00; 8:45 am]
BILLING CODE 5000-04-M