Federal Register / Vol. 69, No. 240 / Wednesday, December 15, 2004 / Rules and Regulations 74991

facsimile (703) 602–0350. Please cite 

DFARS Case 2003–D017.

SUPPLEMENTARY INFORMATION:

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, DoDwide 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 

http://www.acq.osd.mil/dpap/dfars/

transf.htm.

This final rule is a result of the 

DFARS Transformation initiative. The 

DFARS changes include—

Æ Revision of DFARS 206.001 to 

clarify the text. 

Æ Deletion of text at DFARS 

206.202(b) regarding documentation 

needed to support a DoD determination 

to exclude a particular source from a 

contact action in order to establish or 

maintain an alternative source of 

supplies or services; and deletion of text 

at DFARS 206.302–2 containing 

examples of circumstances under which 

use of other than full and open 

competition may be appropriate due to 

unusual and compelling urgency. This 

text has been relocated to the new 

DFARS companion resource, 

Procedures, Guidance, and Information 

(PGI), available at http://

www.acq.osd.mil/dpap/dars/pgi.

Æ Deletion of obsolete text at DFARS 

206.302–1(b)(4) and deletion of 

unnecessary text at DFARS 206.303–1(b) 

and (c) and 206.303–2.

DoD published a proposed rule at 69 

FR 8149 on February 23, 2004. DoD 

received one comment on the proposed 

rule. The respondent recommended 

further revision of the text at 206.001 to 

clarify that the exception from 

competition authorized by 10 U.S.C. 

1091 applies only to contracts awarded 

to individuals. DoD has included this 

clarification in the final rule. 

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 certifies that this final 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 the DFARS changes in this rule 

are limited to clarifying revisions or 

deletion of text that is unnecessary or 

internal to DoD. 

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 206 

Government procurement.

Michele P. Peterson, 

Executive Editor, Defense Acquisition 

Regulations Council.

■ Therefore, 48 CFR Part 206 is amended 

as follows:

■ 1. The authority citation for 48 CFR 

Part 206 continues to read as follows:

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

Chapter 1.

PART 206—COMPETITION 

REQUIREMENTS

■ 2. Section 206.001 is revised to read as 

follows:

206.001 Applicability. 

(b) As authorized by 10 U.S.C. 1091, 

contracts awarded to individuals using 

the procedures at 237.104(b)(ii) are 

exempt from the competition 

requirements of FAR Part 6.

■ 3. Section 206.202 is revised to read as 

follows:

206.202 Establishing or maintaining 

alternative sources. 

(a) Agencies may use this authority to 

totally or partially exclude a particular 

source from a contract action. 

(b) The determination and findings 

(D&F) and the documentation 

supporting the D&F shall identify the 

source to be excluded from the contract 

action. Include the information at PGI 

206.202(b), as applicable, and any other 

information that may be pertinent, in 

the supporting documentation.

206.302–1 [Amended]

■ 4. Section 206.302–1 is amended by 

removing paragraph (b)(4).

■ 5. Section 206.302–2 is revised to read 

as follows:

206.302–2 Unusual and compelling 

urgency. 

(b) Application. For guidance on 

circumstances under which use of this 

authority may be appropriate, see PGI 

206.302–2(b).

206.303–1 [Amended]

■ 6. Section 206.303–1 is amended by 

removing paragraphs (b) and (c).

206.303–2 [Removed]

■ 7. Section 206.303–2 is removed.

[FR Doc. 04–27349 Filed 12–14–04; 8:45 am] 

BILLING CODE 5001–08–P

DEPARTMENT OF DEFENSE

48 CFR Parts 212, 213, 225, and 252

[DFARS Case 2003–D088] 

Defense Federal Acquisition 

Regulation Supplement; Free Trade 

Agreements—Chile and Singapore

AGENCY: Department of Defense (DoD).

ACTION: Final rule.

SUMMARY: DoD has adopted as final, 

with changes, an interim rule amending 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

implement new Free Trade Agreements 

with Chile and Singapore, as approved 

by Congress in the United States-Chile 

Free Trade Agreement Implementation 

Act and the United States-Singapore 

Free Trade Agreement Implementation 

Act. The new Free Trade Agreements 

waive the applicability of the Buy 

American Act for some foreign supplies 

and construction materials from Chile 

and Singapore, and specify procurement 

procedures designed to ensure fairness.

EFFECTIVE DATE: December 15, 2004.

FOR FURTHER INFORMATION CONTACT: Ms. 

Amy Williams, Defense Acquisition 

Regulations Council, 

OUSD(AT&L)DPAP(DAR), IMD 3C132, 

3062 Defense Pentagon, Washington, DC 

20301–3062; telephone (703) 602–0328; 

facsimile (703) 602–0350. Please cite 

DFARS Case 2003–D088.

SUPPLEMENTARY INFORMATION: 

A. Background 

DoD published an interim DFARS 

rule at 69 FR 1926 on January 13, 2004, 

to implement new Free Trade 

Agreements with Chile and Singapore, 

in accordance with the United StatesChile Free Trade Agreement 

Implementation Act (Public Law 108–

77) and the United States-Singapore 

Free Trade Agreement Implementation 

Act (Public Law 108–78). Applicable 

changes to the Federal Acquisition 

Regulation (FAR) were published in 

Federal Acquisition Circular (FAC) 

2001–19 on January 7, 2004 (69 FR 

1051; Interim rule), and in FAC 2001–

25 on October 5, 2004 (69 FR 59700; 

Final rule). 

74992 Federal Register / Vol. 69, No. 240 / Wednesday, December 15, 2004 / Rules and Regulations 

DoD received no comments on the 

interim DFARS rule. However, the final 

rule includes the following additional 

changes: 

• Amendment of the trade agreements 

clauses at DFARS 252.225–7021, 

252.225–7036, and 252.225–7045 to 

remove the statement that United States 

law will apply to resolve any claim of 

breach of contract. This statement is no 

longer necessary, because the final rule 

published in FAC 2001–25 contains a 

new FAR clause, 52.233–4, Applicable 

Law for Breach of Contract Claim, that 

is prescribed for inclusion in all 

contracts. 

• A minor amendment at DFARS 

225.502(c)(i)(B) to clarify that, in 

acquisitions subject to a Free Trade 

Agreement, only eligible products of the 

applicable Free Trade Agreement 

country are exempt from application of 

the Buy American Act or Balance of 

Payments Program evaluation factor 

(e.g., for acquisitions between $25,000 

and $58,550, a Mexican end product 

would be a ‘‘NAFTA country end 

product’’ but would not be an ‘‘eligible 

product,’’ in accordance with the 

thresholds at FAR 25.402).

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 certifies that this final 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.

Although the rule opens up Government 

procurement to the products of Chile, 

and lowers the trade agreements 

threshold for the products of Singapore, 

the economic impact on U.S. small 

businesses will not be significant. DoD 

applies the trade agreements to only 

those non-defense items listed at 

DFARS 225.401–70, and acquisitions 

below $100,000 that are set aside for 

small businesses are exempt. 

C. Paperwork Reduction Act 

This rule affects the certification and 

information collection requirements in 

the provisions at DFARS 252.225–7020 

and 252.225–7035, currently approved 

by the Office of Management and 

Budget under Clearance Number 0704–

0229. The impact, however, is 

negligible. In the provision at DFARS 

252.225–7020, Trade Agreements 

Certificate, the offeror no longer has to 

list offers of end products from Chile as 

nondesignated country end products. 

However, offers of Chilean end products 

would have been unlikely, because 

purchase of foreign products other than 

eligible products is prohibited by the 

Trade Agreements Act. In the provision 

at DFARS 252.225–7035, Buy American 

Act—Free Trade Agreements—Balance 

of Payments Program Certificate, the 

offeror must list all end products that 

are not domestic end products. The 

offeror will list products of Chile and 

Singapore on the list of Free Trade 

Agreement country end products, rather 

than the list of ‘‘other foreign end 

products.’’

List of Subjects in 48 CFR Parts 212, 

213, 225, and 252 

Government procurement.

Michele P. Peterson, 

Executive Editor, Defense Acquisition 

Regulations Council.

■ Accordingly, the interim rule 

amending 48 CFR parts 212, 213, 225, 

and 252, which was published at 69 FR 

1926 on January 13, 2004, is adopted as 

a final rule with the following changes:

■ 1. The authority citation for 48 CFR 

parts 212, 213, 225, and 252 continues to 

read as follows:

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

Chapter 1.

PART 225—FOREIGN ACQUISITION

225.502 [Amended]

■ 2. Section 225.502 is amended in 

paragraph (c)(i)(B) by removing ‘‘end’’

and adding in its place ‘‘eligible’’.

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES

252.212–7001 [Amended]

■ 3. Section 252.212–7001 is amended as 

follows:

■ a. By revising the clause date to read 

‘‘(DEC 2004)’’;

■ b. In paragraph (b), in entry ‘‘252.225–

7021’’, by removing ‘‘(JUN 2004)’’ and 

adding in its place ‘‘(DEC 2004)’’; and

■ c. In paragraph (b), in entry ‘‘252.225–

7036’’, by removing ‘‘(JAN 2004)’’ the 

first place it appears and adding in its 

place ‘‘(DEC 2004)’’.

252.225–7021 [Amended]

■ 4. Section 252.225–7021 is amended as 

follows:

■ a. By revising the clause date to read 

‘‘(DEC 2004)’’;

■ b. By removing paragraph (e); and

■ c. By redesignating paragraph (f) as 

paragraph (e).

252.225–7036 [Amended]

■ 5. Section 252.225–7036 is amended as 

follows:

■ a. By revising the clause date to read 

‘‘(DEC 2004)’’; and

■ b. By removing paragraph (e).

252.225–7045 [Amended]

■ 6. Section 252.225–7045 is amended as 

follows:

■ a. By revising the clause date to read 

‘‘(DEC 2004)’’; and

■ b. By removing paragraph (d).

[FR Doc. 04–27345 Filed 12–14–04; 8:45 am] 

BILLING CODE 5001–08–P

DEPARTMENT OF DEFENSE

48 CFR Part 217 

[DFARS Case 2003–D097/2004–D023] 

Defense Federal Acquisition 

Regulation Supplement; Contract 

Period for Task and Delivery Order 

Contracts

AGENCY: Department of Defense (DoD).

ACTION: Interim rule with request for 

comments. 

SUMMARY: DoD has issued an interim 

rule amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to implement Section 843 of 

the National Defense Authorization Act 

for Fiscal Year 2004 and Section 813 of 

the National Defense Authorization Act 

for Fiscal Year 2005. Section 843 placed 

a 5-year limit on the period of task or 

delivery order contracts awarded under 

10 U.S.C. 2304a. Section 813 further 

amended 10 U.S.C. 2304a to permit a 

total period of up to 10 years, which 

may be exceeded if the head of the 

agency determines in writing that 

exceptional circumstances require a 

longer contract period. The DFARS rule 

clarifies that the 10-year limit applies to 

the ordering period, establishes a limit 

on the length of orders, and includes 

other key information regarding 

applicability.

DATES: Effective date: December 15, 

2004. 

Comment date: Comments on the 

interim rule should be submitted to the 

address shown below on or before 

February 14, 2005, to be considered in 

the formation of the final rule.

ADDRESSES: You may submit comments, 

identified by DFARS Case 2003–D097, 

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 2003–D097 in the subject 

line of the message.