Document Headings

                    Document headings vary by document type but may contain                    the following:                  
                -                       the agency or agencies that issued and signed a document                    
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                -                       the RIN which identifies each regulatory action listed in                      the Unified Agenda of Federal Regulatory and Deregulatory                      Actions                    

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###### Department of Defense

          - 48 CFR Parts 204, 208, 209, 212, 213, 215, 217, 219, 222, 223, 225, 227, 233, 235, 236, 237, 242, 247, 252, and 253 and Appendix F to Chapter 2 
          - [DFARS Case 2001-D003] 

# AGENCY:

Department of Defense (DoD). 

# ACTION:

Proposed rule with request for comments. 

# SUMMARY:

DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to standardize the use of the term “United States” and associated geographic terms, in accordance with definitions found in the Federal Acquisition Regulation. 

# DATES:

Comments on the proposed rule should be submitted in writing to the address shown below on or before January 10, 2005, to be considered in the formation of the final rule. 

# ADDRESSES:

You may submit comments, identified by DFARS Case 2001-D003, using any of the following methods: 
      - Federal eRulemaking Portal: http://www.regulations.gov .                     

Follow the instructions for submitting comments. 
      - Defense Acquisition Regulations Web site: http://emissary.acq.osd.mil/​dar/​dfars.nsf/​pubcomm . Follow the instructions for submitting comments.                     
      - E-mail: dfars@osd.mil . Include DFARS Case 2001-D003 in the subject line of the message.                     
      - Fax: (703) 602-0350.
      - Mail: Defense Acquisition Regulations Council, Attn: Ms. Amy Williams, OUSD(AT&L)DPAP(DAR), IMD 3C132, 3062 Defense Pentagon, Washington, DC 20301-3062.
      - Hand Delivery/Courier: Defense Acquisition Regulations Council, Crystal Square 4, Suite 200A, 241 18th Street, Arlington, VA 22202-3402.

                        All comments received will be posted to                         *http://emissary.acq.osd.mil/​dar/​dfars.nsf*.                     

# FOR FURTHER INFORMATION CONTACT:

Ms. Amy Williams, (703) 602-0328. 

# SUPPLEMENTARY INFORMATION:

## A. Background 

This proposed rule amends the DFARS to standardize the use of geographic terms, for consistency with the definitions of the following terms found in section 2.101 of the Federal Acquisition Regulation: “United States”; “contiguous United States”; “customs territory of the United States”; and “outlying areas”. 

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 rule standardizes DFARS terminology, but makes no substantive change to 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 2001-D003.                 

## 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 Parts 204, 208, 209, 212, 213, 215, 217, 219, 222, 223, 225, 227, 233, 235, 236, 237, 242, 247, 252, and 253

      - Government procurement

Michele P. Peterson, 

Executive Editor, Defense Acquisition Regulations Council.

Therefore, DoD proposes to amend 48 CFR parts 204, 208, 209, 212, 213, 215, 217, 219, 222, 223, 225, 227, 233, 235, 236, 237, 242, 247, 252, and 253 and Appendix F to Chapter 2 as follows: 

# PART 204—ADMINISTRATIVE MATTERS 

1. The authority citation for 48 CFR Parts 204, 208, 209, 212, 213, 215, 217, 219, 222, 223, 225, 227, 233, 235, 236, 237, 242, 247, 252, and 253 and Appendix F to subchapter I continues to read as follows: 

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

204.670-1 

2. Section 204.670-1 is amended by removing paragraph (d). 

3. Section 204.904 is amended by revising paragraph (1)(v) to read as follows: 

204.904 

(1) * * * 

(v) Any contract with a State, the District of Columbia, or an outlying area of the United States; or a political subdivision, agency, or instrumentality of any of the foregoing; 

* * * * *

# PART 208—REQUIRED SOURCES OF SUPPLIES AND SERVICES 

4. Section 208.7002 is amended by revising paragraphs (a)(3) and (4) to read as follows: 

208.7002 

(a) * * * 

(3) Outside the contiguous United States, by the Unified Commanders; and 

(4) For acquisitions to be made in the contiguous United States for commodities not assigned under paragraphs (a)(1), (2), or (3) of this section, by agreement of agency heads (10 U.S.C. 2311). 

* * * * *

# PART 209—CONTRACTOR QUALIFICATIONS 

5. Section 209.406-2 is amended by revising paragraph (a) introductory text to read as follows: 

209.406-2 

(a) Any person shall be considered for debarment if criminally convicted of intentionally affixing a label bearing a “Made in America” inscription to any product sold in or shipped to the United States or its outlying areas that was not made in the United States or its outlying areas (10 U.S.C. 2410f). 

* * * * *

# PART 212—ACQUISITION OF COMMERCIAL ITEMS 

6. Section 212.602 is amended by revising paragraph (b)(ii) to read as follows: 

212.602 

(b) * * * 

(ii) For the acquisition of transportation in supply contracts that will include a significant requirement for transportation of items outside the contiguous United States, also evaluate offers in accordance with the criterion at 247.301-71. 

* * * * *

# PART 213—SIMPLIFIED ACQUISITION PROCEDURES 

7. Section 213.270 is amended by revising paragraph (c)(1) to read as follows: 

213.270 

* * * * *
      ( print page 65122)    
(c) * * * 

(1) The place of performance is entirely outside the United States and its outlying areas. 

* * * * *

                            8. Section 213.307 is amended in paragraph (b)(i)(B)(                            *2*) by revising the first sentence to read as follows:                         

213.307 

* * * * *

(b)(i) * * * 

(B) * * * 

*(2)*                             Classified acquisitions when the purchase is made within the United States or its outlying areas. * * *                         

* * * * *

# PART 215—CONTRACTING BY NEGOTIATION 

9. Section 215.404-76 is amended by revising paragraph (d) to read as follows: 

215.404-76 

* * * * *

(d) Contracting offices outside the United States and its outlying areas are exempt from reporting.

* * * * *

# PART 217—SPECIAL CONTRACTING METHODS 

10. Section 217.7005 is revised to read as follows: 

217.7005 

Use the provision at 252.217-7002, Offering Property for Exchange, when offering nonexcess personal property for exchange. Allow a minimum of 14 calendar days for the inspection period in paragraph (b) of the clause if the exchange property is in the contiguous United States. Allow at least 21 calendar days outside the contiguous United States. 

11. Section 217.7102 is amended by revising paragraph (a) introductory text and paragraph (b) to read as follows: 

217.7102 

(a) Activities shall enter into master agreements for repair and alteration of vessels with all prospective contractors located within the United States or its outlying areas, which—

* * * * *

(b) Activities may use master agreements in work with prospective contractors located outside the United States and its outlying areas. 

* * * * *

12. Section 217.7103-3 is amended by revising paragraph (a) introductory text to read as follows: 

217.7103-3 

(a) When a requirement arises within the United States or its outlying areas for the type of work covered by the master agreement, solicit offers from prospective contractors that' 

* * * * *

# PART 219—SMALL BUSINESS PROGRAMS 

13. Section 219.800 is amended in paragraph (a) by revising the fourth sentence to read as follows: 

219.800 

(a) * * * Consistent with the provisions of this subpart, this authority is hereby redelegated to DoD contracting officers within the United States or its outlying areas, to the extent that it is consistent with any dollar or other restrictions established in individual warrants. * * * 

* * * * *

# PART 222—APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS 

14. Section 222.7201 is amended by revising paragraph (a) to read as follows: 

222.7201 

(a) Use the clause at 252.222-7002, Compliance with Local Labor Laws (Overseas), in solicitations and contracts for services or construction to be performed outside the United States and its outlying areas. 

* * * * *

# PART 223—ENVIRONMENT, CONSERVATION, OCCUPATIONAL SAFETY, AND DRUG-FREE WORKPLACE 

15. Section 223.570-4 is amended by revising paragraph (b)(2) to read as follows: 

223.570-4 

* * * * *

(b) * * * 

(2) When performance or partial performance will be outside the United States and its outlying areas, unless the contracting officer determines such inclusion to be in the best interest of the Government; or 

* * * * *

# PART 225—FOREIGN ACQUISITION 

16. Section 225.7014 is revised to read as follows: 

225.7014 

For restriction on award of military construction contracts to be performed in the United States outlying areas in the Pacific and on Kwajalein Atoll, or in countries bordering the Arabian Gulf, see 236.274(a). 

# PART 227—PATENTS, DATA, AND COPYRIGHTS 

227.7103-17 

17. Section 227.7103-17 is amended in paragraph (b) in the second sentence, and in paragraph (c), by removing “possessions” and adding in its place “outlying areas''. 

227.7203-17 

18. Section 227.7203-17 is amended in paragraph (b) in the second sentence, and in paragraph (c), by removing “possessions” and adding in its place “outlying areas”. 

# PART 233—PROTESTS, DISPUTES, AND APPEALS

19. Section 233.215-70 is revised to read as follows:

233.215-70 

Use the clause at 252.233-7001, Choice of Law (Overseas), in solicitations and contracts when contract performance will be outside the United States and its outlying areas, unless otherwise provided for in a government-to-government agreement.

# PART 235—RESEARCH AND DEVELOPMENT CONTRACTING

20. Section 235.071 is amended by revising paragraph (a) to read as follows:

235.071 

(a) Use the clause at 252.235-7002, Animal Welfare, or one substantially the same, in solicitations and contracts awarded in the United States or its outlying areas involving research on live vertebrate animals.

* * * * *

# PART 236—CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

236.274 

21. Section 236.274 is amended in paragraph (a) introductory text by removing “territories and possessions” and adding in its place “outlying areas”.

236.570 

22. Section 236.570 is amended in paragraph (c)(1) by removing “territory or possession” and adding in its place “outlying area”.

                            23. Section 236.602-1 is amended in paragraph (a)(i)(6)(A)                            *(2)*                             by revising the first sentence to read as follows:                        

236.602-1 

                            (a)(i) * * *                                  ( print page 65123)    

(6) * * *

(A) * * *

*(2)*                             Do not consider awards to overseas offices for projects outside the United States and its outlying areas. * * *                        

* * * * *

# PART 237—SERVICE CONTRACTING

24. Section 237.102-70 is amended by revising paragraph (a)(1) to read as follows:

237.102-70 

(a) * * *

(1) The contract is to be carried out at a location outside the United States and its outlying areas at which members of the armed forces would have to be used for the performance of firefighting or security-guard functions at the expense of unit readiness;

* * * * *

25. Section 237.7301 is amended by revising paragraph (a)(1) to read as follows:

237.7301 

* * * * *

(a) * * *

(1) Is located in the United States or its outlying areas;

* * * * *

# PART 242—CONTRACT ADMINISTRATION AND AUDIT SERVICES

26. Section 242.1402 is amended by revising the section heading to read as follows:

242.1402 

* * * * *

# PART 247—TRANSPORTATION

27. Section 247.571 is amended by revising paragraph (c)(1) introductory text to read as follows:

247.571 

* * * * *

(c)(1) Any vessel used under a time charter contract for the transportation of supplies under this section shall have any reflagging or repair work, as defined in the clause at 252.247-7025, Reflagging or Repair Work, performed in the United States or its outlying areas, if the reflagging or repair work is performed—

* * * * *

# PART 252—SOLICITATION PROVISIONS AND CONTRACT CLAUSES

28. Section 252.209-7002 is amended by revising the clause date and paragraph (a)(3) to read as follows:

252.209-7002 

* * * * *

## DISCLOSURE OF OWNERSHIP OR CONTROL BY A FOREIGN GOVERNMENT (XXX 2004) 

(a) * * * 

                                (3)                                 *Foreign government*                                 includes the state and the government of any country (other than the United States and its outlying areas) as well as any political subdivision, agency, or instrumentality thereof.                            

* * * * *

29. Section 252.212-7000 is amended as follows: 

a. By revising the clause date to read “(XXX 2004)”; 

b. By redesignating paragraph (a)(2) as paragraph (a)(3); and 

c. By adding a new paragraph (a)(2) to read as follows: 

252.212-7000 

* * * * *

(a) * * * 

                                (2)                                 *United States*                                 means the 50 States, the District of Columbia, outlying areas, and the outer Continental Shelf as defined in 43 U.S.C. 1331.                             

* * * * *

30. Section 252.225-7000 is amended by revising the clause date and paragraph (a) to read as follows: 

252.225-7000 

* * * * *

## BUY AMERICAN ACT—BALANCE OF PAYMENTS PROGRAM CERTIFICATE (XXX 2004) 

                                (a)                                 *Definitions. Domestic end product, foreign end product, qualifying country, qualifying country end product, and United States*                                 have the meanings given in the Buy American Act and Balance of Payments Program clause of this solicitation.                             

* * * * *

31. Section 252.225-7001 is amended by revising the clause date and by adding paragraph (a)(8) to read as follows: 

252.225-7001 

* * * * *

## BUY AMERICAN ACT AND BALANCE OF PAYMENTS PROGRAM (XXX 2004) 

(a) * * * 

                                (8)                                 *United States*                                 means the 50 States, the District of Columbia, and outlying areas.                             

* * * * *

32. Section 252.225-7003 is amended as follows: 

a. By revising the clause date to read “(XXX 2004)”; 

b. By redesignating paragraphs (a) through (d) as paragraphs (b) through (e) respectively; and 

c. By adding a new paragraph (a) to read as follows: 

252.225-7003 

* * * * *

                                (a)                                 *Definition. United States,*                                 as used in this provision, means the 50 States, the District of Columbia, and outlying areas.                             

* * * * *

33. Section 252.225-7004 is amended as follows: 

a. By revising the clause date to read “(XXX 2004)”; 

b. By redesignating paragraphs (a) through (d) as paragraphs (b) through (e) respectively; and 

c. By adding a new paragraph (a) to read as follows: 

252.225-7004 

* * * * *

                                (a)                                 *Definition. United States,*                                 as used in this clause, means the 50 States, the District of Columbia, and outlying areas.                             

* * * * *

34. Section 252.225-7005 is amended as follows: 

a. By revising the clause date to read “(XXX 2004)”; 

b. By redesignating paragraphs (a) through (c) as paragraphs (b) through (d) respectively; and 

c. By adding a new paragraph (a) to read as follows: 

252.225-7005 

* * * * *

                                (a)                                 *Definition. United States,*                                 as used in this clause, means the 50 States, the District of Columbia, and outlying areas.                             

* * * * *

35. Section 252.225-7011 is revised to read as follows: 

252.225-7011 

As prescribed in 225.7012-3, use the following clause: 

## RESTRICTION ON ACQUISITION OF SUPERCOMPUTERS (XXX 2004) 

Supercomputers delivered under this contract shall be manufactured in the United States or its outlying areas. 

(End of clause) 

36. Section 252.225-7013 is amended by revising the clause date, paragraph (a)(1), paragraph (b) introductory text, paragraph (f)(1)(i)(A), and the first sentence of paragraph (h) introductory text to read as follows: 

      ( print page 65124)    
252.225-7013 

* * * * *

## DUTY-FREE ENTRY (XXX 2004) 

(a) * * * 

                                (1)                                 *Customs territory of the United States*                                 means the 50 States, the District of Columbia, and Puerto Rico.                             

* * * * *

(b) Except as provided in paragraph (i) of this clause, or unless supplies were imported into the customs territory of the United States before the date of this contract or the applicable subcontract, the price of this contract shall not include any amount for duty on— 

* * * * *

(f) * * * 

(1)(i) * * * 

(A) Prepare any customs forms required for the entry of foreign supplies into the customs territory of the United States in connection with this contract; and 

* * * * *

(h) The Contractor shall notify the Administrative Contracting Officer (ACO) in writing of any purchase of qualifying country supplies to be accorded duty-free entry, that are to be imported into the customs territory of the United States for delivery to the Government or for incorporation in end items to be delivered to the Government. * * * 

* * * * *

37. Section 252.225-7014 is amended by revising the clause date and paragraph (b) to read as follows: 

252.225-7014 

* * * * *

## PREFERENCE FOR DOMESTIC SPECIALTY METALS (XXX 2004) 

* * * * *

(b) Any specialty metals incorporated in articles delivered under this contract shall be melted in the United States or its outlying areas. 

* * * * *

38. Section 252.225-7015 is revised to read as follows: 

252.225-7015 

As prescribed in 225.7002-3(c), use the following clause:

## RESTRICTION ON ACQUISITION OF HAND OR MEASURING TOOLS (XXX 2004) 

Hand or measuring tools delivered under this contract shall be produced in the United States or its outlying areas. 

(End of clause) 

39. Section 252.225-7016 is amended by revising the clause date and paragraph (b) to read as follows: 

252.225-7016 

* * * * *

## RESTRICTION ON ACQUISITION OF BALL AND ROLLER BEARINGS (XXX 2004) 

* * * * *

(b) Except as provided in paragraph (c) of this clause, all ball and roller bearings and ball and roller bearing components (including miniature and instrument ball bearings) delivered under this contract, either as end items or components of end items, shall be wholly manufactured in the United States, its outlying areas, or Canada. Unless otherwise specified, raw materials, such as preformed bar, tube, or rod stock and lubricants, need not be mined or produced in the United States, its outlying areas, or Canada. 

* * * * *

40. Section 252.225-7018 is amended by revising the clause date, paragraph (b) in the second sentence, and paragraph (c)(1) to read as follows: 

252.225-7018 

* * * * *

## NOTICE OF PROHIBITION OF CERTAIN CONTRACTS WITH FOREIGN ENTITIES FOR THE CONDUCT OF BALLISTIC MISSILE DEFENSE RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (XXX 2004) 

* * * * *

(b) * * * However, foreign governments and firms are encouraged to submit offers, since this provision is not intended to restrict access to unique foreign expertise if the contract will require a level of competency unavailable in the United States or its outlying areas. 

(c) * * * 

(1) The contract will be performed within the United States or its outlying areas; 

* * * * *

41. Section 252.225-7019 is amended by revising the clause date and paragraph (a) to read as follows: 

252.225-7019 

* * * * *

## RESTRICTION ON ACQUISITION OF ANCHOR AND MOORING CHAIN (XXX 2004) 

(a) Welded shipboard anchor and mooring chain, four inches or less in diameter, delivered under this contract—

(1) Shall be manufactured in the United States or its outlying areas, including cutting, heat treating, quality control, testing, and welding (both forging and shot blasting process); and 

(2) The cost of the components manufactured in the United States or its outlying areas shall exceed 50 percent of the total cost of components.

* * * * *

42. Section 252.225-7021 is amended by revising the clause date and paragraph (a)(12) to read as follows: 

252.225-7021 

* * * * *

## TRADE AGREEMENTS (XXX 2004) 

(a) * * * 

                                (12)                                 *United States*                                 means the 50 States, the District of Columbia, and outlying areas.                             

* * * * *

43. Section 252.225-7022 is amended by revising the clause date and paragraph (b) to read as follows: 

252.225-7022 

* * * * *

## RESTRICTION ON ACQUISITION OF POLYACRYLONITRILE (PAN) CARBON FIBER (XXX 2004) 

* * * * *

(b) PAN carbon fibers contained in the end product shall be manufactured in the United States, its outlying areas, or Canada using PAN precursor produced in the United States, its outlying areas, or Canada. 

* * * * *

44. Section 252.225-7023 is amended by revising the clause date and paragraph (a) to read as follows: 

252.225-7023 

* * * * *

## RESTRICTION ON ACQUISITION OF VESSEL PROPELLERS (XXX 2004) 

(a) Except as provided in paragraph (b) of this clause, the Contractor shall deliver under this contract, whether as end items or components of end items, vessel propellers— 

(1) Manufactured in the United States, its outlying areas, or Canada; and 

(2) For which all component castings were poured and finished in the United States, its outlying areas, or Canada.

* * * * *

45. Section 252.225-7025 is amended by revising the clause date and paragraph (a)(1) introductory text to read as follows: 

252.225-7025 

* * * * *

## RESTRICTION ON ACQUISITION OF FORGINGS (XXX 2004) 

(a) * * * 

(1) “Domestic manufacture” means manufactured in the United States, its outlying areas, or Canada if the Canadian firm—

* * * * *

46. Section 252.225-7031 is amended as follows: 

                            a. By revising the clause date to read “(XXX 2004)”;                                   ( print page 65125)    

b. By redesignating paragraph (a)(2) as paragraph (a)(3); and 

c. By adding a new paragraph (a)(2) to read as follows: 

252.225-7031 

* * * * *

## SECONDARY ARAB BOYCOTT OF ISRAEL (XXX 2004) 

(a) * * * 

                                (2)                                 *United States*                                 means the 50 States, the District of Columbia, outlying areas, and the outer Continental Shelf as defined in 43 U.S.C. 1331.                            

* * * * *

47. Section 252.225-7036 is amended by revising the clause date and paragraph (a)(10) to read as follows: 

252.225-7036 

* * * * *

## BUY AMERICAN ACT—FREE TRADE AGREEMENTS—BALANCE OF PAYMENTS PROGRAM (XXX 2004) 

(a) * * * 

                                (10)                                 *United States*                                 means the 50 States, the District of Columbia, and outlying areas.                             

* * * * *

48. Section 252.225-7037 is revised to read as follows: 

252.225-7037 

As prescribed in 225.7006-4(a), use the following provision:

## EVALUATION OF OFFERS FOR AIR CIRCUIT BREAKERS (XXX 2004)

(a) The offeror shall specify, in its offer, any intent to furnish air circuit breakers that are not manufactured in the United States or its outlying areas, Canada, or the United Kingdom. 

(b) The Contracting Officer will evaluate offers by adding a factor of 50 percent to the offered price of air circuit breakers that are not manufactured in the United States or its outlying areas, Canada, or the United Kingdom. 

(End of provision)

49. Section 252.225-7038 is revised to read as follows: 

252.225-7038 

As prescribed in 225.7006-4(b), use the following clause:

## RESTRICTION ON ACQUISITION OF AIR CIRCUIT BREAKERS (XXX 2004) 

Unless otherwise specified in its offer, the Contractor shall deliver under this contract air circuit breakers manufactured in the United States or its outlying areas, Canada, or the United Kingdom. 

(End of clause)

50. Section 252.225-7039 is revised to read as follows: 

252.225-7039 

As prescribed in 225.7008-4, use the following clause:

## RESTRICTION ON ACQUISITION OF TOTALLY ENCLOSED LIFEBOAT SURVIVAL SYSTEMS (XXX 2004) 

The Contractor shall deliver under this contract totally enclosed lifeboat survival systems (consisting of the lifeboat and associated davits and winches), for which— 

(a) 50 percent or more of the components have been manufactured in the United States or its outlying areas; and 

(b) 50 percent or more of the labor in the manufacture and assembly of the entire system has been performed in the United States or its outlying areas. 

(End of clause)

51. Section 252.225-7043 is amended as follows: 

a. By revising the clause date to read “(XXX 2004)''; 

b. By redesignating paragraphs (a) through (c) as paragraphs (b) through (d) respectively; and 

c. By adding a new paragraph (a) to read as follows: 

252.225-7043 

* * * * *

                                (a)                                 *Definition*.                                 *United States*, as used in this clause, means, the 50 States, the District of Columbia, and outlying areas.                            

* * * * *

52. Section 252.225-7044 is amended as follows: 

a. By revising the clause date to read “(XXX 2004)''; and 

b. In paragraph (a) by revising the definition of “United States” to read as follows:

252.225-7044 

* * * * *

(a) * * * 

“United States” means the 50 States, the District of Columbia, and outlying areas. 

* * * * *

53. Section 252.225-7045 is amended as follows: 

a. By revising the clause date to read “(XXX 2004)”; and 

b. In paragraph (a) by revising the definition of “United States” to read as follows:

252.225-7045 

* * * * *

(a) * * *

“United States” means the 50 States, the District of Columbia, and outlying areas.

* * * * *

54. Section 252.247-7025 is amended by revising the clause date and paragraph (b) introductory text to read as follows:

252.247-7025 

## REFLAGGING OR REPAIR WORK (XXX 2004)

* * * * *

                                (b)                                 *Requirement*. Unless the Secretary of Defense waives this requirement, reflagging or repair work shall be performed in the United States or its outlying areas, if the reflagging or repair work is performed—                            

* * * * *

# PART 253—FORMS

                        55. Section 253.204-70 is amended by revising paragraphs (b)(6)(iv)(A)                        *(1)*                         and (c)(4)(xiii) to read as follows;                    

253.204-70 

* * * * *

(b) * * *

(6) * * *

(iv) * * *

(A) * * *

*(1)*                             For places in the United States and outlying areas, enter the numeric place code from FIPS PUB 55, Guideline: Codes for Named Populated Places, Primary County Divisions, and Other Locational Entities of the United States, Puerto Rico, and the Outlying Areas. Leave Line B6A blank for places outside the United States and outlying areas.                        

* * * * *

(c) * * *

(4) * * *

(xiii) LINE C13, FOREIGN TRADE DATA.

(A) LINE C13A, PLACE OF MANUFACTURE. Complete Line C13A only if the action is for a foreign end product or a service provided by a foreign concern under a DoD contract or a Federal schedule. Otherwise, leave Line C13A blank.

*(1) Code A—U.S.*                             Enter code A if the action is for—                        

*(i)*                             A foreign end product that is manufactured in the United States or its outlying areas but is still determined to be foreign because 50 percent or more of the cost of its components is not mined, produced, or manufactured inside the United States or its outlying areas or inside qualifying countries; or                        

*(ii)*                             Services performed in the United States or its outlying areas by a foreign concern.                        

*(2) Code B—Foreign*. Enter code B if the action is for—                        

*(i)*                             Any other foreign end product; or                        

*(ii)*                             Services performed outside the United States or its outlying areas by a foreign concern.                                  ( print page 65126)    

(B) LINE C13B, COUNTRY OF ORIGIN CODE.

*(1)*                             Complete Line C13B only if Line C13A is coded A or B. Otherwise, leave Line C13B blank.                        

*(2)*                             Enter the code from FIPS PUB 10, Countries, Dependencies, Areas of Special Sovereignty, and Their Principal Administrative Divisions, that identifies the country where the foreign product is coming from or where the foreign company providing the services is located. If more than one foreign country is involved, enter the code of the foreign country with the largest dollar value of work under the contract.                        

* * * * *

56. Section 253.213-70 is amended by revising paragraph (a)(2) to read as follows:

253.213-70 

(a) * * *

(2) The contractor is located in the contiguous United States or Canada.

* * * * *

## Appendix F to Chapter 2—Material Inspection and Receiving Report F-104 [Amended]

57. Appendix F to Chapter 2 is amended in Part 1, Section F-104, as follows:

                                a. In paragraph (a)(5)(i) introductory text by removing “                                *Continental United States*                                ” and adding in its place “                                *Contiguous United States*                                ”; and                            

b. In paragraph (a)(5)(ii), in the first sentence, by removing “continental U.S.” and adding in its place “contiguous United States”.

[FR Doc. 04-24861 Filed 11-9-04; 8:45 am]

BILLING CODE 5001-08-P