[Federal Register Volume 66, Number 212 (Thursday, November 1, 2001)]
[Rules and Regulations]
[Pages 55121-55123]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-27372]


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DEPARTMENT OF DEFENSE

48 CFR Parts 212 and 252

[DFARS Case 95-D712]


Defense Federal Acquisition Regulation Supplement; Acquisition of 
Commercial Items

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

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SUMMARY: DoD has issued a final rule amending Defense Federal 
Acquisition Regulation Supplement (DFARS) policy pertaining to the 
acquisition of commercial items. The rule updates the

[[Page 55122]]

lists of clauses included in contracts for commercial items to 
implement statutory requirements.

EFFECTIVE DATE: November 1, 2001.

FOR FURTHER INFORMATION CONTACT: Ms. Angelena Moy,Defense Acquisition 
Regulations Council, OUSD(AT&L)DP(DAR),IMD 3C132, 3062 Defense 
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-1302; 
facsimile (703) 602-0350.

SUPPLEMENTARY INFORMATION:

A. Background

    This rule finalizes the interim rule published as Item XXXV of 
Defense Acquisition Circular 91-9 on November 30, 1995 (60 FR 61586). 
The interim rule amended the DFARS to conform to FAR changes that 
implemented Title VIII of the Federal Acquisition Streamlining Act of 
1994 (Public Law 103-355) pertaining to the acquisition of commercial 
items. The interim rule also added DoD-unique requirements pertaining 
to the acquisition of commercial items.
    The final rule differs from the interim rule in that it adds the 
following to the lists of provisions and clauses that must be included 
in solicitations and contracts to implement statutory requirements:
     FAR 52.203-3, Gratuities (10 U.S.C. 2207).
     DFARS 252.209-7001, Disclosure of Ownership or Control by 
the Government of a Terrorist Country (10 U.S.C. 2327).
     DFARS 252.219-7004, Small, Small Disadvantaged and Women-
Owned Small Business Subcontracting Plan (Test Program) (15 U.S.C. 637 
note).
    In addition, the final rule adds dates to the contract clauses 
listed in 252.212-7001, to clarify which version of each clause applies 
to a contract.
    Ten sources submitted comments on the interim 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 has prepared a final regulatory flexibility analysis. 
Interested parties may obtain a copy of the analysis from the point of 
contact specified herein. The analysis is summarized as follows:
    This rule finalizes an interim DFARS rule published on November 30, 
1995. The rule implements provisions of the Federal Acquisition 
Streamlining Act of 1994 and supplements FAR policy pertaining to the 
acquisition of commercial items. The objective of the FAR and DFARS 
policy is to streamline procedures for the acquisition of commercial 
items. DoD received no comments in response to the initial regulatory 
flexibility analysis. The rule applies to all small entities that are 
interested in selling commercial items to DoD. Based on data collected 
by DoD's Washington Headquarters Services, in Fiscal Year 2000, DoD 
awarded approximately 11,437 contracts totaling $2.2 billion to small 
business concerns using the streamlined procedures in the interim rule. 
There are no significant alternatives to the rule that would accomplish 
the stated objectives.

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 Parts 212 and 252

    Government procurement.

Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.

    Therefore, 48 CFR parts 212 and 252 are amended as follows:
    1. The authority citation for 48 CFR Parts 212 and 252 continues to 
read as follows:

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.

PART 212--ACQUISITION OF COMMERCIAL ITEMS

    2. Section 212.301 is amended as follows:
    a. In paragraph (f)(iii), by removing ``paragraph (a)'' and adding 
in its place ``paragraphs (a) and (b)'';
    b. By redesignating paragraphs (f)(v) and (f)(vi) as paragraphs 
(f)(vi) and (f)(vii), respectively; and
    c. By adding a new paragraph (f)(v) to read as follows:


212.301  Solicitation provisions and contract clauses for the 
acquisition of commercial items.

* * * * *
    (f) * * *
    (v) Use the provision at 252.209-7001, Disclosure of Ownership or 
Control by the Government of a Terrorist Country, as prescribed in 
209.104-70(a).
* * * * *

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    3. Section 252.212-7001 is revised to read as follows:


252.212-7001  Contract terms and conditions required to implement 
statutes or Executive orders applicable to Defense acquisitions of 
commercial items.

    As prescribed in 212.301(f)(iii), use the following clause:

Contract Terms and Conditions Required to Implement Statutes or 
Executive Orders Applicable to Defense Acquisitions of Commercial Items 
(NOV 2001)

    (a) The Contractor agrees to comply with the following Federal 
Acquisition Regulation (FAR) clause which, if checked, is included 
in this contract by reference to implement a provision of law 
applicable to acquisitions of commercial items or components.

______ 52.203-3  Gratuities (APR 1984) (10 U.S.C. 2207).
    (b) The Contractor agrees to comply with any clause that is 
checked on the following list of Defense FAR Supplement clauses 
which, if checked, is included in this contract by reference to 
implement provisions of law or Executive orders applicable to 
acquisitions of commercial items or components.
______ 252.205-7000  Provision of Information to Cooperative 
Agreement Holders (DEC 1991) (10 U.S.C. 2416).
______ 252.206-7000  Domestic Source Restriction (DEC 1991) (10 
U.S.C. 2304).
______ 252.219-7003  Small, Small Disadvantaged and Women-Owned 
Small Business Subcontracting Plan (DoD Contracts) (APR 1996) (15 
U.S.C. 637).
______ 252.219-7004 Small, Small Disadvantaged and Women-Owned Small 
Business Subcontracting Plan (Test Program) (JUN 1997) (15 U.S.C. 
637 note).
______ 252.225-7001 Buy American Act and Balance of Payments Program 
(MAR 1998) (41 U.S.C. 10a-10d, E.O. 10582).
______ 252.225-7007  Buy American Act--Trade Agreements--Balance of 
Payments Program (SEP 2001) (41 U.S.C. 10a-10d, 19 U.S.C. 2501-2518, 
and 19 U.S.C. 3301 note).
______ 252.225-7012  Preference for Certain Domestic Commodities 
(AUG 2000) (10 U.S.C. 2241 note).
______ 252.225-7014  Preference for Domestic Specialty Metals (MAR 
1998) (10 U.S.C. 2241 note).
______ 252.225-7015  Preference for Domestic Hand or Measuring Tools 
(DEC 1991) (10 U.S.C. 2241 note).
______ 252.225-7016  Restriction on Acquisition of Ball and Roller 
Bearings (DEC 2000) ( ____ Alternate I) (DEC 2000) (Section 8064 of 
Public Law 106-259).
______ 252.225-7021  Trade Agreements (SEP 2001) (19 U.S.C. 2501-
2518 and 19 U.S.C. 3301 note).
______ 252.225-7027  Restriction on Contingent Fees for Foreign 
Military Sales (MAR 1998) (22 U.S.C. 2779).
______ 252.225-7028  Exclusionary Policies and Practices of Foreign 
Governments (DEC 1991) (22 U.S.C. 2755).

[[Page 55123]]

______ 252.225-7029  Preference for United States or Canadian Air 
Circuit Breakers (AUG 1998) (10 U.S.C. 2534(a)(3)).
______ 252.225-7036  Buy American Act--North American Free Trade 
Agreement Implementation Act--Balance of Payments Program (MAR 1998) 
( ____ Alternate I) (SEP 1999) (41 U.S.C. 10a-10d and 19 U.S.C. 3301 
note).
______ 252.227-7015  Technical Data--Commercial Items (NOV 1995) (10 
U.S.C. 2320).
______ 252.227-7037  Validation of Restrictive Markings on Technical 
Data (SEP 1999) (10 U.S.C. 2321).
______ 252.243-7002  Requests for Equitable Adjustment (MAR 1998) 
(10 U.S.C. 2410).
______ 252.247-7023  Transportation of Supplies by Sea (MAR 2000) 
(____Alternate I) (MAR 2000) (____Alternate II) (MAR 2000) (10 
U.S.C. 2631).
______ 252.247-7024  Notification of Transportation of Supplies by 
Sea (MAR 2000) (10 U.S.C. 2631).
    (c) In addition to the clauses listed in paragraph (e) of the 
Contract Terms and Conditions Required to Implement Statutes or 
Executive Orders--Commercial Items clause of this contract (FAR 
52.212-5), the Contractor shall include the terms of the following 
clauses, if applicable, in subcontracts for commercial items or 
commercial components, awarded at any tier under this contract:
252.225-7014  Preference for Domestic Specialty Metals, Alternate I 
(MAR 1998) (10 U.S.C. 2241 note).
252.247-7023  Transportation of Supplies by Sea (MAR 2000) (10 
U.S.C. 2631).
252.247-7024  Notification of Transportation of Supplies by Sea (MAR 
2000) (10 U.S.C. 2631).
(End of clause)

[FR Doc. 01-27372 Filed 10-31-01; 8:45 am]
BILLING CODE 5000-04-U