[Federal Register: February 23, 1999 (Volume 64, Number 35)] [Rules and Regulations] [Page 8727-8729] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr23fe99-13] ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE 48 CFR Parts 212, 225, and 252 [DFARS Case 98-D305] Defense Federal Acquisition Regulation Supplement; People's Republic of China AGENCY: Department of Defense (DoD). ACTION: Interim rule. ----------------------------------------------------------------------- SUMMARY: The Director of Defense Procurement has issued an interim rule [[Page 8728]] amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement Section 8120 of the DoD Appropriations Act for fiscal year 1999. Section 8120 places restrictions on the award of contracts to companies owned or partially owned by the People's Republic of China or the People's Liberation Army of the People's Republic of China. DATES: Effective date: February 23, 1999. Comment date: Comments on the interim rule should be submitted in writing to the address shown below on or before April 26, 1999, to be considered in the formulation of the final rule. ADDRESSES: Interested parties should submit written comments to: Defense Acquisition Regulations Council, Attn: Ms. Amy Williams, PDUSD (A&T) DP (DAR), IMD 3D139, 3062 Defense Pentagon, Washington, DC 20301- 3062. Telefax (703) 602-0350. E-mail comments submitted over the Internet should be addressed to: dfars@acq.osd.mil Please cite DFARS Case 98-D305 in all correspondence related to this issue. E-mail comments should cite DFARS Case 98-D305 in the subject line. FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, (703) 602-0131. SUPPLEMENTARY INFORMATION: A. Background This interim rule amends DFARS 212.301, adds a new section at 225.771, and adds a new solicitation provision at 252.225-7017. The rule implements Section 8120 of the DoD Appropriations Act for fiscal year 1999 (Pub. L. 105-262). Section 8120 provides that no funds appropriated under Title III (Procurement) or Title IV (Research, Development, Test and Evaluation) of the Act may be used to enter into or renew a contract with any company owned or partially owned by the People's Republic of China or the People's Liberation Army of the People's Republic of China. B. Regulatory Flexibility Act The interim 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 the rule pertains only to companies owned or partially owned by the People's Republic of China or the People's Liberation Army of the People's Republic of China. Therefore, an initial regulatory flexibility analysis has not been performed. Comments are invited from small businesses and other interested parties. Comments from small entities concerning the affected DFARS subparts also will be considered in accordance with 5 U.S.C. 610. Such comments should be submitted separately and should cite DFARS Case 98-D305 in correspondence. C. Paperwork Reduction Act The Paperwork Reduction Act does not apply because the interim 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. D. Determination To Issue an Interim Rule A determination has been made under the authority of the Secretary of Defense that urgent and compelling reasons exist to publish this interim rule prior to affording the public an opportunity to comment. This rule implements Section 8120 of the DoD Appropriations Act for fiscal year 1999 (Pub. L. 105-262). Section 8120 provides that no funds appropriated under titles III and IV of the Act may be used to enter into or renew a contract with any company owned or partially owned by the People's Republic of China or the People's Liberation Army of the People's Republic of China. Section 8120 became effective on October 17, 1998. Comments received in response to the publication of this interim rule will be considered in formulating the final rule. List of Subjects in 48 CFR Parts 212, 225, and 252 Government procurement. Michele P. Peterson, Executive Editor, Defense Acquisition Regulations Council. Therefore, 48 CFR Parts 212, 225, and 252 are amended as follows: 1. The authority citation for 48 CFR Parts 212, 225, and 252 continues to read as follows: Authority: 41 U.S.C. 421 and 48 CFR Chapter 1. PART 212--ACQUISITION OF COMMERCIAL ITEMS 2. Section 212.301 is amended in paragraph (f)(ii) in the second sentence by revising the reference ``252.225-7000'' to read ``252.212- 7000'', and by adding a new paragraph (f)(v) to read as follows: 212.301 Solicitation provisions and contract clauses for the acquisition of commercial items. (f) * * * (v) Use the provision at 252.225-7017, Prohibition on Award to Companies Owned by the People's Republic of China, as prescribed in 225.771. PART 225--FOREIGN ACQUISITION 3. Sections 225.771, 225.771-1, 225.771-2, 225.771-3, and 225.771-4 are added to read as follows: 225.771 Prohibition on acquisition from the People's Republic of China. 225.771-1 Definition. ``People's Republic of China'' is defined in the provision at 252.225-7017, Prohibition on Award to Companies Owned by the People's Republic of China. 225.771-2 Legal authority. This section implements Section 8120 of the DoD Appropriations Act for fiscal year 1999 (Pub. L. 105-262). 225.771-3 Prohibition on contract award. Do not award or renew a contract with any company owned or partially owned by the People's Republic of China or the People's Liberation Army of the People's Republic of China, if using funds made available by Title III (Procurement) or Title IV (Research, Development, Test and Evaluation) of Pub. L. 105-262. 225.771-4 Solicitation provision. Use the provision at 252.225-7017, Prohibition on Award to Companies Owned by the People's Republic of China, in solicitations for contracts that will use funds made available by Title III or IV of Pub. L. 105-262. PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES 4. Section 252.225-7017 is added to read as follows: 252.225-7017 Prohibition on Award to Companies Owned by the People's Republic of China. As prescribed in 225.771-4, use the following provision: Prohibition on Award To Companies Owned by the People's Republic of China (Feb. 1999) (a) Definition. ``People's Republic of China,'' as used in this provision, means the government of the People's Republic of China, including its political subdivisions, agencies, and instrumentalities. (b) Prohibition on award. Section 8120 of the Department of Defense Appropriations Act for fiscal year 1999 (Pub. L. 105-262) prohibits the award of a contract under this solicitation to any company owned, or partially owned, by the People's Republic of China or the People's Liberation Army of the People's Republic of China. (c) Representation. By submission of an offer, the offeror represents that it is not [[Page 8729]] owned, or partially owned, by the People's Republic of China or the People's Liberation Army of the People's Republic of China. (End of provision) [FR Doc. 99-4341 Filed 2-22-99; 8:45 am] BILLING CODE 5000-04-M