[Federal Register Volume 68, Number 190 (Wednesday, October 1, 2003)]
[Rules and Regulations]
[Pages 56685-56686]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-24588]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 25 and 52
[FAC 2001-16; FAR Case 2001-015; Item VII]
RIN 9000-AJ35
Federal Acquisition Regulation; Prohibited Sources
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) have agreed on a final rule
amending the Federal Acquisition Regulation (FAR) to implement recent
Executive orders and to reflect the regulations of the Department of
the Treasury's Office of Foreign Assets Control (OFAC).
DATES: Effective Date: October 31, 2003.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS
Building, Washington, DC 20405, (202) 501-4755, for information
pertaining to status or publication schedules. For clarification of
content, contact Ms. Cecelia Davis, Procurement Analyst, at (202) 219-
0202. Please cite FAC 2001-16, FAR case 2001-015.
SUPPLEMENTARY INFORMATION:
A. Background
DoD, GSA, and NASA published a proposed rule in the Federal
Register at 67 FR 13080, March 20, 2002. The proposed rule implemented
Executive Order 13192, Lifting and Modifying Measures With Respect to
the Federal Republic of Yugoslavia (Serbia and Montenegro), and
reflected the regulations of OFAC in the Department of the Treasury.
One respondent submitted public comments. The Councils considered
the public comments before agreeing to convert the proposed rule to a
final rule with minor changes.
The respondent recommended that we restore the statement at FAR
25.701(a) that the restrictions apply to acquisitions of supplies and
services, even for overseas use. The Councils do not concur. This
statement regarding overseas use was included at FAR 25.701(a) because
we were trying to make a distinction between prohibitions on import of
some supplies and services into the United States and the voluntary
policy of the Government not to acquire such supplies for overseas use.
However, the Department of the Treasury brought to the attention of the
Councils that most of the prohibitions already applied to overseas
acquisition and use as well as to importation. The regulations at 31
CFR chapter V provide details as to whether the prohibitions apply to
acquisition for overseas use as well as importation.
The respondent also was concerned that we should retain paragraph
(c) of FAR 52.225-13, Restrictions on Certain Foreign Purchases.
Paragraph (c) provides for flowdown of the restrictions to
subcontractors. The proposed rule did not delete paragraph (c) from the
clause. It was not reprinted in the Federal Register notice because no
changes were proposed to that paragraph.
There are other recent directives which are relevant to subpart
25.7, which are not yet implemented in the OFAC regulations:
[sbull] Executive Order 13224, Blocking Property and Prohibiting
Transactions with Persons Who Commit, Threaten to Commit, or Support
Terrorism;
[sbull] Executive Order 13288, Blocking Property of Persons
Undermining Democratic Processes or Institutions in Zimbabwe;
[sbull] Executive Order 13268, Termination of Emergency With
Respect to the Taliban and Amendment of Executive Order 13224 of
September 23, 2001; and
[sbull] The general license issued on May 23, 2003, by the
Department of the Treasury entitled ``Iraqi Sanctions Regulations.''
Contracting officers are to refer to the above directives and the
most recent version of the regulations of OFAC at 31 CFR chapter V.
Except as authorized by OFAC, most transactions involving Cuba,
Iran, Libya, and Sudan are prohibited, as are most imports from North
Korea. This rule removes Serbia, the Taliban-controlled regions of
Afghanistan, and Iraq from the list of prohibited sources and points
the contracting officer to lists of entities and individuals subject to
economic sanctions that are available at http://www.epls.gov/TerList1.html.
The contracting officer is no longer authorized in unusual
circumstances to acquire for use outside the United States supplies or
services restricted by this section, unless specifically authorized by
OFAC. However, OFAC has granted authority to Department of Defense
personnel to make emergency acquisitions in direct support of U.S. or
allied forces deployed in military contingency, humanitarian, or
peacekeeping operations in a country or region subject to economic
sanctions administered by OFAC.
This rule also amends the legal basis for use of the clause 52.225-
13, Restrictions on Certain Foreign Purchases, that is provided in the
clauses at 52.212-5, Contract Terms and Conditions Required to
Implement Statutes or Executive Orders--Commercial Items, and 52.213-4,
Terms and Conditions--Simplified Acquisitions (Other Than Commercial
Items). The rule replaces the list of specific Executive orders, which
is incomplete and outdated, with a general reference to all
proclamations, Executive orders, and statutes administered by OFAC.
This is not a significant regulatory action and, therefore, was not
subject to review under Section 6(b) of Executive Order 12866,
Regulatory Planning and Review, dated September 30, 1993. This rule is
not a major rule under 5 U.S.C. 804.
B. Regulatory Flexibility Act
The Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration certify that this
final
[[Page 56686]]
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 rule only affects
acquisitions from prohibited sources.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose 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 25 and 52
Government procurement.
Dated: September 24, 2003.
Laura G. Auletta,
Director, Acquisition Policy Division.
0
Therefore, DoD, GSA, and NASA amend 48 CFR parts 25 and 52 as set forth
below:
0
1. The authority citation for 48 CFR parts 25 and 52 is revised to read
as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 25--FOREIGN ACQUISITION
0
2. Revise section 25.701 to read as follows:
25.701 Restrictions.
(a) Except as authorized by the Office of Foreign Assets Control
(OFAC) in the Department of the Treasury, agencies and their
contractors and subcontractors must not acquire any supplies or
services if any proclamation, Executive order, or statute administered
by OFAC, or if OFAC's implementing regulations at 31 CFR chapter V,
would prohibit such a transaction by a person subject to the
jurisdiction of the United States.
(b) Except as authorized by OFAC, most transactions involving Cuba,
Iran, Libya, and Sudan are prohibited, as are most imports from North
Korea into the United States or its outlying areas. In addition, lists
of entities and individuals subject to economic sanctions are included
in OFAC's List of Specially Designated Nationals and Blocked Persons at
http://www.epls.gov/Terlist1.html. More information about these
restrictions, as well as updates, is available in OFAC's regulations at
31 CFR chapter V and/or on OFAC's Web site at http://www.treas.gov/ofac.
25.702 [Amended]
0
3. Amend section 25.702 by removing ``622-2520'' and adding ``622-
2490'' in its place.
25.1103 [Amended]
0
4. Amend section 25.1103 in paragraph (a) by removing ``(see
25.701(a)(2))''.
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
5. Amend section 52.212-5 by revising the date of the clause and
paragraph (b)(24) to read as follows:
52.212-5 Contract Terms and Conditions Required to Implement Statutes
or Executive Orders--Commercial Items.
* * * * *
Contract Terms and Conditions Required to Implement Statutes or
Executive Orders--Commercial Items (Oct. 2003)
* * * * *
(b) * * *
(24) 52.225-13, Restrictions on Certain Foreign Purchases (Oct.
2003) (E.o.s, proclamations, and statutes administered by the Office
of Foreign Assets Control of the Department of the Treasury).
* * * * *
0
6. Amend section 52.213-4 by revising paragraph (a)(1)(iv) to read as
follows:
52.213-4 Terms and Conditions--Simplified Acquisitions (Other Than
Commercial Items).
* * * * *
(a) * * *
(1) * * *
(iv) 52.225-13, Restrictions on Certain Foreign Purchases (Oct.
2003) (E.o.s, proclamations, and statutes administered by the Office
of Foreign Assets Control of the Department of the Treasury).
* * * * *
0
7. Amend section 52.225-13 by revising the date of the clause and
paragraphs (a) and (b) to read as follows:
52.225-13 Restrictions on Certain Foreign Purchases.
* * * * *
Restrictions on Certain Foreign Purchases (Oct. 2003)
(a) Except as authorized by the Office of Foreign Assets Control
(OFAC) in the Department of the Treasury, the Contractor shall not
acquire, for use in the performance of this contract, any supplies
or services if any proclamation, Executive order, or statute
administered by OFAC, or if OFAC's implementing regulations at 31
CFR chapter V, would prohibit such a transaction by a person subject
to the jurisdiction of the United States.
(b) Except as authorized by OFAC, most transactions involving
Cuba, Iran, Libya, and Sudan are prohibited, as are most imports
from North Korea, into the United States or its outlying areas.
Lists of entities and individuals subject to economic sanctions are
included in OFAC's List of Specially Designated Nationals and
Blocked Persons at http://www.epls.gov/Terlist1.html. More
information about these restrictions, as well as updates, is
available in the OFAC's regulations at 31 CFR chapter V and/or on
OFAC's Web site at http://www.treas.gov/ofac.
* * * * *
[FR Doc. 03-24588 Filed 9-30-03; 8:45 am]
BILLING CODE 6820-EP-P