32640 Federal Register / Vol. 75, No. 109 / Tuesday, June 8, 2010 / Rules and Regulations 

government operations and procedures. 

The interim rule does not impose any 

additional requirements on small 

businesses. Therefore, an Initial 

Regulatory Flexibility Analysis has not 

been performed. DoD invites comments 

from small business concerns and other 

interested parties on the expected 

impact of this rule on small entities. 

DoD will also consider comments 

from small entities concerning the 

existing regulations in subparts affected 

by this rule in accordance with 5 U.S.C. 

610. Interested parties must submit such 

comments separately and should cite 5 

U.S.C. 610 (DFARS Case 2009–D027) in 

correspondence. 

D. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the changes to the 

DFARS do not impose information 

collection requirements that require the 

approval of the Office of Management 

and Budget under 44 U.S.C. 3501, et 

seq. 

E. 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 promulgate this interim rule without 

prior opportunity for public comment. 

This action is necessary because the 

statute became effective upon 

enactment, and it is imperative that DoD 

contracting officers be aware of the 

limitations on interagency procurements 

and the circumstances under which 

certain programs need not be delayed by 

such limitations. However, pursuant to 

41 U.S.C. 418b and FAR 1.501–3, DoD 

will consider public comments received 

in response to this interim rule in the 

formation of the final rule. 

List of Subjects in 48 CFR Part 217 

Government procurement. 

Ynette R. Shelkin, 

Editor, Defense Acquisition Regulations 

System. 

■ Therefore, 48 CFR part 217 is 

amended as follows: 

PART 217—SPECIAL CONTRACTING 

METHODS 

■ 1. The authority citation for 48 CFR 

part 217 continues to read as follows: 

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

chapter 1. 

■ 2. Section 217.7800 is amended by 

revising paragraph (a) to read as follows: 

217.7800 Scope of subpart. 

* * * * * 

(a) Implements section 854 of the 

National Defense Authorization Act for 

Fiscal Year 2005 (Pub. L. 108–375), 

section 801 of the National Defense 

Authorization Act for Fiscal Year 2008 

(Pub. L. 110–181), and section 806 of 

the National Defense Authorization Act 

for Fiscal Year 2010 (Pub. L. 111–84); 

and 

* * * * * 

■ 3. Section 217.7801 is amended by 

adding the following definition in 

appropriate alphabetical order: 

217.7801 Definitions. 

* * * * * 

Non-DoD agency that is an element of 

the intelligence community means the 

Office of the Director of National 

Intelligence; the Central Intelligence 

Agency; the intelligence elements of the 

Federal Bureau of Investigation; the 

intelligence elements of the Department 

of Energy; the Bureau of Intelligence 

and Research of the Department of State; 

the Office of Intelligence and Analysis 

of the Department of the Treasury; and 

the elements of the Department of 

Homeland Security concerned with the 

analysis of intelligence information, 

including the Office of Intelligence of 

the Coast Guard. 

■ 4. Section 217.7802 is amended by 

adding paragraph (a)(3) to read as 

follows: 

217.7802 Policy. 

(a) * * * 

(3) The limitation in paragraph (a) of 

this section does not apply to contracts 

entered into by a non-DoD agency that 

is an element of the intelligence 

community for the performance of a 

joint program conducted to meet the 

needs of DoD and the non-DoD agency. 

* * * * * 

[FR Doc. 2010–13525 filed 6–7–10; 8:45 am] 

BILLING CODE 5001–08–P 

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. 

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 


emcdonald on DSK2BSOYB1PROD with RULES2
Federal Register / Vol. 75, No. 109 / Tuesday, June 8, 2010 / Rules and Regulations 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. 

■ Therefore, 48 CFR part 225 is 

amended as follows: 

PART 225—FOREIGN ACQUISITION 

■ 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. 

■ 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 

* * * * * 

[FR Doc. 2010–13526 Filed 6–7–10; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 216 

Defense Federal Acquisition 

Regulation Supplement; Letter 

Contract Definitization Schedule 

(DFARS Case 2007–D011) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is adopting as final, 

without change, a proposed rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to clarify requirements 

regarding definitization of letter 

contracts. The rule specifies that DoD 

letter contracts will be definitized using 

the DFARS procedures applicable to all 

other undefinitized contract actions. 

DATES: Effective Date: June 8, 2010. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Meredith Murphy, Defense Acquisition 

Regulations System, OUSD(AT&L) 

DPAP(DARS), 3060 Defense Pentagon, 

Room 3B855, Washington, DC 20301– 

3060. Telephone 703–602–8383; 

facsimile 703–602–0350. Please cite 

DFARS Case 2007–D011. 

SUPPLEMENTARY INFORMATION: 

A. Background 

DoD published a proposed rule at 74 

FR 34292 on July 15, 2009, to clarify 

requirements regarding definitization of 

letter contracts. The period for public 

comment closed on September 14, 2009. 

The differences between section 16.603 

of the Federal Acquisition Regulation 

(FAR) and DFARS subpart 217.74 

definitization requirements confused 

the acquisition community. This final 

rule clarifies at DFARS 216.603–2(c)(3) 

that the definitization requirements at 

DFARS 217.7404–3(a) apply to DoD 

letter contracts instead of the 

requirements at FAR 16.603–2(c)(3). 

This approach provides consistency in 

the manner in which DoD manages its 

undefinitized contract actions, and is in 

line with the specific provisions of 10 

U.S.C. 2326 relating to DoD use of 

undefinitized contract actions. 

DoD received no comments on the 

proposed rule. Therefore, DoD is 

finalizing the proposed rule without 

change. 

This rule was not subject to Office of 

Management and Budget review under 

Executive Order 12866, dated 

September 30, 1993. This is not a major 

rule. 

B. Regulatory Flexibility Act 

This rule will not 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 it 

clarifies existing requirements 

pertaining to undefinitized contract 

actions. 

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. 


emcdonald on DSK2BSOYB1PROD with RULES2