[Federal Register Volume 72, Number 58 (Tuesday, March 27, 2007)]
[Rules and Regulations]
[Pages 14239-14240]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-5480]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 225 and 252
RIN 0750-AF34
Defense Federal Acquisition Regulation Supplement; Prohibition on
Acquisition from Communist Chinese Military Companies (DFARS Case 2006-
D007)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
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SUMMARY: DoD has adopted as final, without change, an interim rule
amending the Defense Federal Acquisition Regulation Supplement (DFARS)
to implement Section 1211 of the National Defense Authorization Act for
Fiscal Year 2006. Section 1211 prohibits DoD from acquiring United
States Munitions List items from Communist Chinese military companies.
EFFECTIVE DATE: March 27, 2007.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, Defense Acquisition
Regulations System, OUSD(AT&L)DPAP(DARS), IMD 3C132, 3062 Defense
Pentagon, Washington, DC 20301-3062. Telephone (703) 602-0328;
facsimile (703) 602-0350. Please cite DFARS Case 2006-D007.
SUPPLEMENTARY INFORMATION:
A. Background
DoD published an interim rule at 71 FR 53045 on September 8, 2006,
to implement Section 1211 of the National Defense Authorization Act for
Fiscal Year 2006 (Public Law 109-163). Section 1211 prohibits DoD from
acquiring goods or services, through a contract or a subcontract with a
Communist Chinese military company, if the goods or services being
acquired are on the munitions list of the International Trafficking in
Arms Regulations (the United States Munitions List (USML) at 22 CFR
Part 121).
One source submitted comments on the interim rule. That source
recommended addition of an exception to the policy that, before
issuance of a solicitation, the requirements activity must notify the
contracting officer whether the items to be acquired are on the USML.
The exception would apply to items that include critical military
technology, since those items are already subject to controls that
limit
[[Page 14240]]
issuance of the solicitation and the associated technical data package
to United States and Canadian firms.
DoD does not agree with the recommended change. A company located
in the United States or Canada could fall within the definition of a
Communist Chinese military company if it is owned or controlled by, or
affiliated with, an element of the Government or armed forces of the
People's Republic of China. Also, the prohibition applies to
subcontracts as well as contracts. An item of critical military
technology could contain a subcontracted component that is not subject
to the same controls as the end item, but is on the USML. Therefore,
the contracting officer needs the specified notification from the
requirements activity to identify all USML items and to ensure that the
clause at DFARS 252.225-7007 is included in solicitations and contracts
for those items.
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 rule affects only those entities that are a part of the
industrial base of the People's Republic of China or that are owned or
controlled by, or affiliated with, an element of the Government or
armed forces of the People's Republic of China.
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 225 and 252
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
Interim Rule Adopted as Final Without Change
0
Accordingly, the interim rule amending 48 CFR Parts 225 and 252, which
was published at 71 FR 53045 on September 8, 2006, is adopted as a
final rule without change.
[FR Doc. E7-5480 Filed 3-26-07; 8:45 am]
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