DATE: March 7, 2005

SUBJECT: Defense Priorities and Allocations System (DPAS); Electronic Transmission of Reasons for Rejecting Rated Orders

SOURCE: Federal Register, March 7, 2005, Vol. 70, No. 43, page 10864

AGENCIES: Bureau of Industry and Security, Department of Commerce

ACTION: Final Rule

SYNOPSIS: The DPAS regulations are being amended to allow a person who has rejected a rated order to give his or her reasons for the rejection through electronic means rather than requiring the person to submit the rationale in writing.

EDITOR'S NOTE: The DPAS regulations are in Title 15 of the Code of Federal Regulations, Part 700 (15 CFR Part 700), and are available at http://www.bxa.doc.gov/DefenseIndustrialBasePrograms/OSIES/DPAS/pdfdocs/dpasreg.pdf.

For more on the proposed rule, see the November 22, 2004, FEDERAL CONTRACTS DISPATCH Defense Priorities and Allocations System (DPAS); Electronic Transmission of Reasons for Rejecting Rated Orders."

EFFECTIVE DATE: April 6, 2005.

FOR FURTHER INFORMATION CONTACT: Eddy Aparicio, Office of Strategic Industries and Economic Security, Room 3876, 14th Street and Constitution Avenue, NW, Washington, DC 20230; 202-482-8234; e-mail: eaparici@bis.doc.gov.

SUPPLEMENTAL INFORMATION: Under the Defense Production Act of 1950, the president is authorized to require preferential acceptance and performance of contracts or orders supporting certain approved national defense and energy programs, and to allocate materials, services, and facilities in such a manner as to promote these approved programs. The DPAS regulations at 15 CFR Part 700 implement this authority.

The purpose of the DPAS is to assure the timely availability of industrial resources to meet current national defense and emergency preparedness program requirements, including critical infrastructure protection and restoration, as well as provide an operating system to support rapid industrial response in a national emergency. In carrying out the DPAS mission, the Department of Commerce strives to minimize disruptions to the normal commercial activities of industry.

Paragraph (d)(1) of 15 CFR 700.13, Acceptance and Rejection of Rated Orders, requires persons to transmit rejections of DPAS rated orders in writing. Industry had asserted that the procedure hampered efficiency. On November 22, 2004, a proposed rule was published that would amend paragraph (d)(1) to give a person the option of transmitting his rationale for rejecting a rated order to the appropriate contracting officer or agency in writing or electronically. This change was intented to allow the information to be transmitted more quickly. One commenter supported the proposed rule, so it is adopted as final without changes.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953.

Copyright 2005 by Panoptic Enterprises. All Rights Reserved.

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