[Federal Register Volume 69, Number 224 (Monday, November 22, 2004)]
[Proposed Rules]
[Pages 67872-67873]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-25718]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 700

[Docket No. 041026293-4293-01]
RIN 0694-AD35


Defense Priorities and Allocations System: Electronic 
Transmission of Reasons for Rejecting Rated Orders

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would amend the Defense Priorities and 
Allocations System (DPAS) regulations 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.

DATES: Comments must be received on or before December 22, 2004.

ADDRESSES: Written comments should be sent to the Federal eRulemaking 
Portal: http://www.regulations.gov or to William J. Denk, Director of 
the Defense Programs Division, Office of Strategic Industries and 
Economic Security, Room 3876, U.S. Department of Commerce, 14th Street 
and Constitution Avenue, NW., Washington, DC 20230; Fax: (202) 482-
5650, or e-mail: <a href="/cdn-cgi/l/email-protection#3b4c5f5e55507b595248155f5458155c544d"><span class="__cf_email__" data-cfemail="c1b6a5a4afaa81a3a8b2efa5aea2efa6aeb7">[email protected]</span></a>.

FOR FURTHER INFORMATION CONTACT: Mr. Stephen Baker, Office of Strategic 
Industries and Economic Security, telephone: (202) 482-2017 or e-mail: 
<a href="/cdn-cgi/l/email-protection#572435363c322517353e247933383479303821"><span class="__cf_email__" data-cfemail="2251404349475062404b510c464d410c454d54">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: Under Title I of the Defense Production Act 
of 1950, as amended (50 U.S.C. App. 2061 et seq.), 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. Additional 
priorities authority is found in section 18 of the Selective Service 
Act of 1948 (50 U.S.C. App. 468), 10 U.S.C. 2538, and 50 U.S.C. 82. 
DPAS authority has also been extended to support emergency preparedness 
activities under Title VI of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act, as amended (45 U.S.C. 5915 et seq.).
    Originally published in 1984, the DPAS regulations were revised on 
June 11, 1998 (63 FR 31918), to update, streamline, and clarify a 
number of provisions. 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 pursuit of the DPAS mission, the Department of Commerce 
endeavors to minimize disruptions to the normal commercial activities 
of industry.
    The Bureau of Industry and Security (BIS) is proposing to amend the 
regulations that require persons to transmit rejections of DPAS rated 
orders in writing to allow these transmissions to be made 
electronically. Industry has asserted that the current procedure 
hampers efficiency. As a result, BIS proposes to amend 15 CFR 
700.13(d)(1) to allow a person the option of transmitting his or her 
rationale for rejecting a rated order electronically to the appropriate 
contracting officer or agency. If this rule is adopted, a person would 
be able to transmit his or her rationale for rejection either 
electronically or in writing. This amendment to the DPAS regulations 
should allow this information to be transmitted more quickly.

Rulemaking Requirements

    1. Executive Order 12866: This rule has been determined to be not 
significant under EO 12866.
    2. Executive Order 13132: This rule does not contain policies with 
Federalism implications as this term is defined in EO 13132.
    3. Paperwork Reduction Act: This rule contains collection of 
information requirements subject to the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501 et seq.) (PRA).
    Notwithstanding any other provision of law, no person is required 
to respond to, nor shall any person be subject to a penalty for failure 
to comply with a collection of information, subject to the requirements 
of the PRA unless that collection of information displays a currently 
valid Office of Management and Budget (OMB) control number. Comments 
may be sent to Mr. Stephen Baker, Office of Strategic Industries and 
Economic Security; fax: (202) 482-5650; e-mail: <a href="/cdn-cgi/l/email-protection#a7d4c5c6ccc2d5e7c5ced489c3c8c489c0c8d1"><span class="__cf_email__" data-cfemail="c5b6a7a4aea0b785a7acb6eba1aaa6eba2aab3">[email protected]</span></a>. 
These collections have been approved by the OMB under control number 
0694-0092, ``Procedures for Acceptance or Rejection of a Rated Order,'' 
which carries a burden hour estimate of 1 to 15 minutes per response. 
Send comments regarding these burden estimates or any other aspect of 
these collections of information, including suggestions for reducing 
the burden, to David Rostker, OMB Desk Officer, by e-mail at <a href="/cdn-cgi/l/email-protection#0165607768655e736e72756a6473416e6c632f646e712f666e77"><span class="__cf_email__" data-cfemail="7e1a1f08171a210c110d0a151b0c3e11131c501b110e50191108">[email protected]</span></a> or by fax to (202) 395-7285; and to the Regulatory 
Policy Division, Bureau of Industry and Security, Department of 
Commerce, P.O. Box 273, Washington, DC 20044.
    4. Regulatory Flexibility Act: The Chief Counsel for Regulation of 
the Department of Commerce has certified to the Counsel for Advocacy of 
the Small Business Administration that this rule would not have a 
significant economic impact on a substantial number of small entities 
(i.e., companies or other organizations involved in production for the 
U.S. defense industrial base).
    This rule would amend DPAS regulations 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. Previously, BIS required the rationale for 
rejection be transmitted in writing, not electronically. This change 
will reduce the burden on industry for staff time and postage and 
improve the efficiency of small business record keeping. Those small 
businesses without electronic capability will

[[Page 67873]]

continue to be able to submit their rejection rationale in writing.
    It is estimated that 25 percent (or 1,750) of the 7,000 DPAS 
respondents tasked with notifying their customer of their rationale for 
rejection are small entities affected by this rule. This estimate is 
based on data provided by the Department of Defense (DoD)\1\ on the 
number of entities participating in the DPAS program. DoD estimates 
that one percent (or 7,000) of 700,000 rated orders result in rejection 
notices and require the related transmittal of the rationale for 
rejection.
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    \1\ Consistent with section 201(b) of Executive Order 12919, the 
Department of Commerce has delegated authority to DoD to use the 
DPAS regulations for priority rating of contracts and orders for all 
materials, services, and facilities needed in support of approved 
programs with respect to military production and construction, 
military assistance to foreign nations, stockpiling, outer space, 
and directly related activities. See Department of Commerce DPAS 
Delegation <greek-i>1 (July 1, 1998). DoD is the single largest user 
of the DPAS regulations.
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    This rule would have a minor positive impact on the small entities 
affected by this rule. It would save these entities approximately five 
minutes per response (or 146 hours annually) in reduced public burden. 
Because the impact to small entities would be small, I certify that 
this rule would not have a significant economic impact on a substantial 
number of small entities. This amendment does not include any new 
reporting or recordkeeping requirements and will not duplicate, overlap 
or conflict with other laws or regulations.

List of Subjects in 15 CFR Part 700

    Administrative practice and procedure, Business and industry, 
Government contracts, National defense, Reporting and recordkeeping 
requirements, Strategic and critical materials.
    Accordingly, the DPAS regulations (15 CFR part 700) are proposed to 
be amended as follows:

PART 700--[AMENDED]

    1. The authority citation is revised to read as follows:

    Authority: Titles I and VII of the Defense Production Act of 
1950, as amended (50 U.S.C. App. 2061, et seq.), Title VI of the 
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 
U.S.C. 5195 et seq.), and Executive Order 12919, as amended, 59 FR 
29525, 3 CFR, 1994 Comp., p. 901, as amended by Executive Order 
13286, 68 FR 10619, 3 CFR, 2003 Comp., p. 166; section 18 of the 
Selective Service Act of 1948 (50 U.S.C. App. 468), 10 U.S.C. 2538, 
50 U.S.C. 82, and Executive Order 12742, 56 FR 1079, 3 CFR, 1991 
Comp., p. 309; and Executive Order 12656, 53 FR 226, 3 CFR, 1988 
Comp., p. 585.

    2. Revise Sec.  700.13(d)(1) to read as follows:


Sec.  700.13  Acceptance and rejection of rated orders.

* * * * *
    (d) Customer notification requirements. (1) A person must accept or 
reject a rated order and transmit the acceptance or rejection in 
writing (hard copy), or in electronic format, within fifteen (15) 
working days after receipt of a DO rated order and within ten (10) 
working days after receipt of a DX rated order. If the order is 
rejected, the person must also provide the reasons for the rejection, 
pursuant to paragraphs (b) and (c) of this section, in writing (hard 
copy) or electronic format.
* * * * *

    Dated: November 12, 2004.
Peter Lichtenbaum,
Assistant Secretary for Export Administration.
[FR Doc. 04-25718 Filed 11-19-04; 8:45 am]
BILLING CODE 3510-33-P


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