[Federal Register Volume 68, Number 48 (Wednesday, March 12, 2003)]
[Rules and Regulations]
[Pages 11747-11748]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-5907]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 1825

RIN 2700-AC33


Trade Agreements Act--Exception for U.S.-Made End Products

AGENCY: National Aeronautics and Space Administration.

ACTION: Final rule.

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SUMMARY: This final rule adopts without change the proposed rule 
published in the Federal Register (67 FR 68551) on November 12, 2002. 
This final rule amends the NASA FAR Supplement (NFS) to implement the 
determination of the Assistant Administrator for Procurement that, for 
procurements subject to the Trade Agreements Act, it would be 
inconsistent with the public interest to apply the Buy American Act for 
U.S.-made end products that are substantially transformed in the United 
States.

EFFECTIVE DATE: March 12, 2003.

FOR FURTHER INFORMATION CONTACT: Patrick Flynn, Code HK, (202) 358-
0460; e-mail: [email protected].

SUPPLEMENTARY INFORMATION:

A. Background

    On September 13, 2002, the Assistant Administrator for Procurement

[[Page 11748]]

determined that, for procurements subject to the Trade Agreements Act, 
it would be inconsistent with the public interest to apply the Buy 
American Act to U.S.-made end products that are substantially 
transformed in the United Sates. The September 13, 2002, determination 
is consistent with Federal Acquisition Regulation policy and the 
Department of Defense policy with regard to the treatment of U.S.-made 
end products. This final rule implements the September 13, 2002, 
determination. This final rule will simplify evaluation of offers in 
acquisitions subject to the Trade Agreements Act, because it will no 
longer be necessary to determine if a U.S.-made end product is also a 
domestic end product, i.e., the cost of domestic components exceeds the 
cost of all components by more than 50 percent.
    NASA published a proposed rule in the Federal Register (67 FR 
68551) on November 12, 2002. Public comments were received from one 
industry association. Comments received were supportive of the change. 
This final rule adopts the proposed rule without change.
    This final rule is not subject to Office of Management and Budget 
review under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    NASA certifies that this final rule will not have a significant 
economic impact on a substantial number of small business entities 
under the Regulatory Flexibility Act (5 U.S.C. 601, et seq.) because 
NASA has few acquisitions subject to the Trade Agreements Act in which 
small businesses proposing domestic end products have received a 
percent price evaluation preference over offers of U.S.-made end 
products for which the cost of foreign components exceeds the cost of 
domestic components by 50 percent or more.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the changes do 
not impose any new recordkeeping or information collection requirements 
which require the approval of the Office of Management and Budget under 
44 U.S.C. 3501, et seq. This final rule eliminates the requirement for 
offerors to track and document the origin of components of U.S.-made 
end products in acquisitions subject to the Trade Agreements Act in 
order to comply with the FAR.

List of Subjects in 48 CFR Part 1825

    Government procurement.

Tom Luedtke,
Assistant Administrator for Procurement.

    Accordingly, 48 CFR part 1825 is amended as follows:
    1. The authority citation for 48 CFR Part 1825 continues to read as 
follows:

    Authority: 42 U.S.C. 2473(c)(1).

PART 1825--FOREIGN ACQUISITION


1825.103  [Amended]

    2. Amend section 1825.103 by adding paragraph (a)(iii) to read as 
follows:


1825.103  Exceptions.

    (a) * * *
    (iii) The Assistant Administrator for Procurement has determined 
that for procurements subject to the Trade Agreements Act, it would be 
inconsistent with the public interest to apply the Buy American Act to 
U.S.-made end products that are substantially transformed in the United 
States.

    3. Amend section 1825.1101 by adding paragraph (c)(1) to read as 
follows:


1825.1101  Acquisition of supplies.

    (c)(1) NASA has determined that the restrictions of the Buy 
American Act are not applicable to U.S.-made end products.
* * * * *
[FR Doc. 03-5907 Filed 3-11-03; 8:45 am]
BILLING CODE 7510-01-P