[Federal Register: July 3, 2000 (Volume 65, Number 128)]
[Proposed Rules]
[Page 41037-41038]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03jy00-47]
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DEPARTMENT OF DEFENSE
48 CFR Part 225
[DFARS Case 2000-D017]
Defense Federal Acquisition Regulation Supplement;
Polyacrylonitrile Carbon Fiber
AGENCY: Department of Defense (DoD).
ACTION: Proposed rule with request for comments.
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SUMMARY: The Director of Defense Procurement is proposing to amend the
Defense Federal Acquisition Regulation Supplement (DFARS) to phase out
restrictions on the acquisition of polyacrylonitrile (PAN) carbon fiber
from foreign sources. The restrictions will be phased out over a five-
year period to minimize short-term risks to DoD and current domestic
suppliers.
DATES: Comments on the proposed rule should be submitted in writing to
the address shown below on or before September 1, 2000, to be
considered in the formation of the final rule.
ADDRESSES: Interested parties should submit written comments on the
proposed rule to: Defense Acquisition Regulations Council, Attn: Ms.
Amy Williams, OUSD (AT&L)DP(DAR), IMD 3D139, 3062 Defense Pentagon,
Washington, DC 20301-3062. Telefax (703) 602-0350.
E-mail comments submitted via the Internet should be addressed to:
dfars@acq.osd.mil
Please cite DFARS Case 2000-D017 in all correspondence related to
this proposed rule. E-mail correspondence should cite DFARS Case 2000-
D017 in the subject line.
FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, (703) 602-0288.
SUPPLEMENTARY INFORMATION:
A. Background
This rule proposes revisions to DFARS 225.7103-1 and 225.7103-3 to
phase out restrictions on the acquisition
[[Page 41038]]
of PAN carbon fiber from foreign sources. DoD conducted a review of the
administratively imposed restrictions, evaluating DoD applications for
PAN carbon fiber, key domestic and foreign suppliers, supply and demand
market information, potential impacts on DoD and key suppliers, and
potential national security issues. As a result, DoD is proposing to
phase out the restrictions over the five-year period ending May 31,
2005. The phased elimination will minimize short-term risks to both DoD
and current domestic suppliers and will allow for a gradual
introduction of competition that will encourage innovation and
emphasize affordability. This action is consistent with DoD's interest
in promoting vigorous competition in defense markets while ensuring
that industrial capabilities essential to national defense are
preserved.
This rule was not subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993.
B. Regulatory Flexibility Act
The proposed rule is not expected to 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 there
are no known domestic small business manufacturers of PAN carbon fiber.
Therefore, DoD has not performed an initial regulatory flexibility
analysis. DoD invites comments from small businesses and other
interested parties. DoD also will consider comments from small entities
concerning the affected DFARS subpart in accordance with 5 U.S.C. 610.
Such comments should be submitted separately and should cite DFARS Case
2000-D017.
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 Part 225
Government procurement.
Michele P. Peterson,
Executive Editor, Defense Acquisition Regulations Council.
Therefore, DoD proposes to amend 48 CFR Part 225 as follows:
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.
PART 225--FOREIGN ACQUISITION
2. Section 225.7103-1 is revised to read as follows:
Sec. 225.7103-1 Policy.
DoD has imposed restrictions on the acquisition of PAN carbon fiber
from foreign sources. DoD is phasing out the restrictions over the
five-year period ending May 31, 2005. Contractors with contracts that
contain the clause at 252.225-7022 must use U.S. or Canadian
manufacturers or producers for all PAN carbon fiber requirements.
3. Section 225.7103-3 is revised to read as follows:
Sec. 225.7103-3 Contract clause.
Use the clause at 252.225-7022, Restriction on Acquisition of
Polyacrylonitrile (PAN) Carbon Fiber, in solicitations and contracts
for major systems as follows:
(a) In solicitations and contracts issued on or before May 31,
2003, if--
(1) The system is not yet in production (milestone III as defined
in DoD 5000.2-R, Mandatory Procedures for Major Defense Acquisition
Programs (MDAPS) and Major Automated Information System (MAIS)
Acquisition Programs); or
(2) The clause was used in prior program contracts.
(b) In solicitations and contracts issued during the period
beginning June 1, 2003, and ending May 31, 2005, if the system is not
yet in engineering and manufacturing development (milestone II as
defined in DoD 5000.2-R).
[FR Doc. 00-16639 Filed 6-30-00; 8:45 am]
BILLING CODE 5000-04-M