[Federal Register Volume 75, Number 109 (Tuesday, June 8, 2010)]
[Rules and Regulations]
[Pages 32640-32641]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-13526]
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DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Part 225
[DFARS Case 2009-D022]
Defense Federal Acquisition Regulation Supplement; Finland--
Public Interest Exception to the Buy American Act
AGENCY: Defense Acquisition Regulations System; Department of Defense
(DoD).
ACTION: Final rule.
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SUMMARY: DoD is issuing this final rule amending the Defense Federal
Acquisition Regulation Supplement (DFARS) to reflect a determination of
the Secretary of Defense that it is inconsistent with the public
interest to apply the restrictions of the Buy American Act to the
acquisition of articles, materials, and supplies produced or
manufactured in Finland.
DATES: Effective Date: June 8, 2010.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, 703-602-0328.
SUPPLEMENTARY INFORMATION:
A. Background
A reciprocal defense procurement memorandum of understanding (RDP
MOU) between the government of Finland and the Government of the United
States has been in effect since 1991. The governments have negotiated
and concluded a new RDP MOU to provide an updated basis for continued
cooperation in defense procurement. The RDP MOU provides that, in
relation to defense procurement, each country will accord to the
industries of the other country treatment no less favorable than that
accorded to its own industries, to the extent consistent with its laws,
regulations, and international obligations.
The reciprocal opportunities that the RDP MOU affords to the
governments and their defense industries enhances mutual military
readiness and promotes standardization and interoperability of
equipment between the armed forces of the two countries. Therefore, DoD
has made a blanket determination that it is inconsistent with the
public interest to apply the restrictions of the Buy American Act to
the acquisition of articles, materials, and supplies produced or
manufactured in Finland.
DoD is issuing this rule as a final rule because this rule does not
have a significant effect beyond the internal operating procedures of
DoD and does not have a significant cost or administrative impact on
contractors or offerors. Therefore, public comment is not required in
accordance with 41 U.S.C. 418b(a).
``Qualifying country'' is defined at 225.003(10). The status as a
qualifying country entitles these countries to various benefits, both
as a matter of DoD policy and as legislated by Congress. The evaluation
procedures at DFARS subpart 225.5 treat all qualifying country end
products equally. Finland is a qualifying country, as listed at
225.003(10), entitled to all these benefits. However, at DFARS 225.872-
1, the qualifying countries are divided into two lists. Most are listed
in paragraph (a), but a few are listed in paragraph (b). For the
countries in paragraph (a), DoD has already made a blanket
[[Page 32641]]
determination of the inapplicability of the Buy American Act to the
acquisition of end products from that country. There is only one effect
of a country being listed in paragraph (b). Although the evaluation
procedures are the same, regardless of which paragraph a country is
listed in, if an end product is from a country listed in paragraph (b),
when purchasing the end product, the contracting officer has to prepare
an individual determination and finding that the end product is exempt
from application of the Buy American Act. Over time, the qualifying
countries in paragraph (b) are moved to paragraph (a) when all the
conditions for arriving at a blanket determination are met.
This final rule implements the recent blanket determination by
USD(AT&L) at DFARS 225.872-1 by removing Finland from the list of
qualifying countries in paragraph (b) and adding Finland to the list of
qualifying countries in paragraph (a). This means that the contracting
officer no longer needs to prepare an individual determination and
findings when making an award to an offeror of an end product from
Finland. However, since Finland is a qualifying country, this was a
routine paperwork requirement, and the removal of this requirement only
impacts the internal operating procedures of the Government.
This rule was subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993.
B. Regulatory Flexibility Act
The Regulatory Flexibility Act does not apply to this rule. This
final rule does not constitute a significant DFARS revision within the
meaning of FAR 1.501 and public comment is not required in accordance
with 41 U.S.C. 418b(a).
C. Paperwork Reduction Act
This rule does not impose any new 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 Part 225
Government procurement.
Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.
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Therefore, 48 CFR part 225 is amended as follows:
PART 225--FOREIGN ACQUISITION
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1. The authority citation for 48 CFR part 225 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR chapter 1.
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2. Section 225.872-1 is amended by revising paragraphs (a) and (b) to
read as follows:
225.872-1 General.
(a) As a result of memoranda of understanding and other
international agreements, DoD has determined it inconsistent with the
public interest to apply restrictions of the Buy American Act or the
Balance of Payments Program to the acquisition of qualifying country
end products from the following qualifying countries:
Australia
Belgium
Canada
Denmark
Egypt
Federal Republic of Germany
Finland
France
Greece
Israel
Italy
Luxembourg
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
Turkey
United Kingdom of Great Britain and Northern Ireland.
(b) Individual acquisitions of qualifying country end products from
the following qualifying country may, on a purchase-by-purchase basis
(see 225.872-4), be exempted from application of the Buy American Act
and the Balance of Payments Program as inconsistent with the public
interest: Austria
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[FR Doc. 2010-13526 Filed 6-7-10; 8:45 am]
BILLING CODE 5001-08-P