[Federal Register: January 23, 2006 (Volume 71, Number 14)]
[Proposed Rules]               
[Page 3448-3449]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]



48 CFR Part 225

[DFARS Case 2005-D012]
RIN 0750-AF21

Defense Acquisition Regulations System; Defense Federal 
Acquisition Regulation Supplement; Foreign Acquisition Procedures

AGENCY: Defense Acquisition Regulations System, Department of Defense 

ACTION: Proposed rule with request for comments.


SUMMARY: DoD is proposing to amend the Defense Federal Acquisition 
Regulation Supplement (DFARS) to delete text addressing internal DoD 
procedures pertaining to foreign

[[Page 3449]]

acquisition. This text will be relocated to the new DFARS companion 
resource, Procedures, Guidance, and Information (PGI). The proposed 
rule is a result of a transformation initiative undertaken by DoD to 
dramatically change the purpose and content of the DFARS.

DATES: Comments on the proposed rule should be submitted in writing to 
the address shown below on or before March 24, 2006, to be considered 
in the formation of the final rule.

ADDRESSES: You may submit comments, identified by DFARS Case 2005-D012, 
using any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 

Follow the instructions for submitting comments.
     E-mail: dfars@osd.mil. Include DFARS Case 2005-D012 in the 
subject line of the message.
     Fax: (703) 602-0350.
     Mail: Defense Acquisition Regulations System, Attn: Ms. 
Amy Williams, OUSD (AT&L) DPAP (DARS), IMD 3C132, 3062 Defense 
Pentagon, Washington, DC 20301-3062.
     Hand Delivery/Courier: Defense Acquisition Regulations 
System, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 
    Comments received will be posted without change to http://www.regulations.gov
, including any personal information provided.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, (703) 602-0328.


A. Background

    DFARS Transformation is a major DoD initiative to dramatically 
change the purpose and content of the DFARS. The objective is to 
improve the efficiency and effectiveness of the acquisition process, 
while allowing the acquisition workforce the flexibility to innovate. 
The transformed DFARS will contain only requirements of law, DoD-wide 
policies, delegations of FAR authorities, deviations from FAR 
requirements, and policies/procedures that have a significant effect 
beyond the internal operating procedures of DoD or a significant cost 
or administrative impact on contractors or offerors. Additional 
information on the DFARS Transformation initiative is available at 

    This proposed rule is a result of the DFARS Transformation 
initiative. The proposed rule deletes DFARS text addressing internal 
DoD procedures in the following areas:
    DFARS 225.670-4--Processing of requests for waiver of foreign 
source restrictions.
    DFARS 225.871-4--Processing of requests for waiver under North 
Atlantic Treaty Organization cooperative projects.
    DFARS 225.7017-3--Preparation of determinations regarding award of 
a contract for ballistic missile defense research, development, test, 
and evaluation to a foreign source.
    DFARS 225.7502--Application of the Balance of Payments Program to 
an acquisition.
    This text will be relocated to the new DFARS companion resource, 
Procedures, Guidance, and Information (PGI), available at http://www.acq.osd.mil/dpap/dars/pgi

    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 does not expect this rule 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 the proposed 
rule addresses internal DoD procedural matters and makes no significant 
change to DoD contracting policy. 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 subparts in 
accordance with 5 U.S.C. 610. Such comments should be submitted 
separately and should cite DFARS Case 2005-D012.

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,
Editor, Defense Acquisition Regulations System.
    Therefore, DoD proposes to amend 48 CFR part 225 as follows:

    1. The authority citation for 48 CFR part 225 continues to read as 

    Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.


    2. Section 225.670-4 is revised to read as follows:

225.670-4  Waivers.

    The Secretary of Defense may waive this restriction on the basis of 
national security interests. To request a waiver, follow the procedures 
at PGI 225.670-4.
    3. Section 225.871-4 is amended by revising paragraph (c) to read 
as follows:

225.871-4  Statutory waivers.

* * * * *
    (c) To request a waiver under a cooperative project, follow the 
procedures at PGI 225.871-4.
* * * * *
    4. Section 225.7017-3 is amended by revising paragraph (b) to read 
as follows:

225.7017-3  Exceptions.

* * * * *
    (b) If the head of the contracting activity certifies in writing, 
before contract award, that a U.S. firm cannot competently perform a 
contract for RDT&E at a price equal to or less than the price at which 
a foreign government or firm would perform the RDT&E. The contracting 
officer or source selection authority, as applicable, shall make a 
determination, in accordance with PGI 225.7017-3(b), that will be the 
basis for the certification.
    5. Section 225.7502 is revised to read as follows:

225.7502  Procedures.

    If the Balance of Payments Program applies to the acquisition, 
follow the procedures at PGI 225.7502.

[FR Doc. E6-706 Filed 1-20-06; 8:45 am]