[Federal Register Volume 72, Number 200 (Wednesday, October 17, 2007)]
[Notices]
[Pages 58832-58833]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-20450]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
Negotiation of a Reciprocal Defense Procurement Memorandum of
Understanding With Italy
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Request for industry feedback regarding experience in public
(defense) procurements conducted by Italy.
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SUMMARY: DoD has had a Reciprocal Defense Procurement (RDP) Memorandum
of Understanding (MOU) with Italy since September 11, 1978. DoD is
commencing negotiation of an updated RDP MOU with Italy and is
soliciting input from U.S. industry that has had experience
participating in public defense procurements conducted by or on behalf
of the Italian Ministry of Defense or Armed Forces. The current RDP MOU
involves reciprocal waivers of buy-national laws by each country; the
replacement RDP MOU is expected to continue these waivers. This means
that Italy will continue to be listed as one of the ``qualifying
countries'' in the Defense Federal Acquisition Regulation Supplement
(DFARS) at 225.872-1, and
[[Page 58833]]
that offers of products of Italy would continue to be exempt from the
U.S. Buy American Act and Balance of Payments Program policy that would
otherwise require DoD to add 50 percent to the price of the foreign
products when evaluating offers. This also means that U.S. products
should be exempt from any analogous ``Buy Italian'' law or policy
applicable to procurements by the Italian Ministry of Defense or Armed
Forces. DoD is interested in comments relating to the transparency,
integrity, and general fairness of Italy's public (defense) procurement
processes. DoD is also interested in comments relating to the degree of
reciprocity that exists between the United States and Italy when it
comes to the openness of defense procurements to offers of products of
the other country.
DATES: Comments must be received by November 16, 2007.
ADDRESSES: You may submit comments to: Office of the Director, Defense
Procurement and Acquisition Policy, ATTN: OUSD (AT&L) DPAP (CPIC), 3060
Defense Pentagon, Washington, DC 20301-3060; or by e-mail to
[email protected].
FOR FURTHER INFORMATION CONTACT: Ms. Nancy Dowling, telephone 703-697-
9352.
SUPPLEMENTARY INFORMATION: The Reciprocal Defense Procurement MOUs DoD
has with 21 countries are signed at the level of the Secretary of
Defense and his counterpart. The purpose of RDP MOUs is to promote
rationalization, standardization, and interoperability of defense
equipment with allies and friendly governments. It provides a framework
for ongoing communication regarding market access and procurement
matters that affect effective defense cooperation. Based on the MOU,
each country affords the other certain benefits on a reciprocal basis
consistent with national laws and regulations. For 19 of the 21 RDP MOU
countries, including Italy, these benefits include evaluation of offers
without applying price differentials otherwise required by the Buy
American Act and the Balance of Payments Program. For all RDP MOU
countries, two additional benefits are that (1) the specialty metals
restriction in 10 U.S.C. 2533b does not apply to products manufactured
in the RDP MOU partner country, and (2) the United States does not
include customs, taxes, and duties in the evaluation of offers and
waives charges for customs and duties for procurements to which the RDP
MOU applies.
The United States and Italy originally entered into a RDP MOU on
September 11, 1978. All of the countries with which DoD has RDP MOUs
are identified in DFARS 225.872-1. If DoD determines that it would
continue to be inconsistent with the public interest to apply the
restrictions of the Buy American Act to the acquisition of Italian
defense equipment and supplies, Italy would remain on the list in DFARS
225.872-1(a).
RDP MOUs generally include language by which the parties agree that
their defense procurements will be conducted in accordance with certain
implementing procedures. These procedures relate to publication of
notices of proposed purchases; the content and availability of
solicitations for proposed purchases; notification to each unsuccessful
offeror; feedback, upon request, to unsuccessful offerors concerning
the reasons they were not allowed to participate in a procurement or
were not awarded a contract; and providing for the hearing and review
of complaints arising in connection with any phase of the procurement
process to ensure that, to the extent possible, complaints are
equitably and expeditiously resolved.
While DoD is evaluating Italy's laws and regulations in this area,
DoD would benefit from U.S. industry's experience in participating in
Italy's public defense procurements. Therefore, DoD is asking U.S.
firms that have participated or attempted to participate in
procurements by or on behalf of Italy's Ministry of Defense or Armed
Forces to provide input as to whether the procurements were conducted
in accordance with published procedures with transparency, integrity,
fairness, and due process, and if not, the nature of the problems
encountered.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
[FR Doc. E7-20450 Filed 10-16-07; 8:45 am]
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