Federal Register / Vol. 65, No. 109 / Tuesday, June 6, 2000 / Rules and Regulations 36027

American Free Trade Agreement country’’

and ‘‘North American Free Trade Agreement

country construction material’’ from the

definitions in paragraph (a) of the basic

clause and substitute the following

paragraphs (b)(1) and (b)(2) for paragraphs

(b)(1) and (b)(2) of the basic clause:

(b) Construction materials. (1) This clause

implements the Buy American Act (41 U.S.C.

10a-10d) and the Balance of Payments

Program by providing a preference for

domestic construction material. In addition,

the Contracting Officer has determined that

the Trade Agreements Act applies to this

acquisition. Therefore, the Buy American Act

and Balance of Payments Program

restrictions are waived for designated

country construction materials.

(2) The Contractor shall use only domestic

or designated country construction material

in performing this contract, except as

provided in paragraphs (b)(3) and (b)(4) of

this clause.

10. In section 52.225–12, add

Alternate II to read as follows:

52.225–12 Notice of Buy American Act/

Balance of Payments Program

Requirement—Construction Materials under

Trade Agreements.

* * * * *

Alternate II (June 2000). As prescribed in

25.1102(d)(3), substitute the following

paragraphs (a) and (d) for paragraphs (a) and

(d) of the basic provision:

(a) Definitions. ‘‘Construction material,’’

‘‘designated country construction material,’’

‘‘domestic construction material,’’ and

‘‘foreign construction material,’’ as used in

this provision, are defined in the clause of

this solicitation entitled ‘‘Buy American

Act—Balance of Payments Program—

Construction Materials under Trade

Agreements’’ (Federal Acquisition Regulation

(FAR) clause 52.225–11).

(d) Alternate offers. (1) When an offer

includes foreign construction material, other

than designated country construction

material, that is not listed by the Government

in this solicitation in paragraph (b)(3) of FAR

clause 52.225–11, the offeror also may submit

an alternate offer based on use of equivalent

domestic or designated country construction

material.

(2) If an alternate offer is submitted, the

offeror shall submit a separate Standard Form

1442 for the alternate offer, and a separate

price comparison table prepared in

accordance with paragraphs (c) and (d) of

FAR clause 52.225–11 for the offer that is

based on the use of any foreign construction

material for which the Government has not

yet determined an exception applies.

(3) If the Government determines that a

particular exception requested in accordance

with paragraph (c) of FAR clause 52.225–11

does not apply, the Government will evaluate

only those offers based on use of the

equivalent domestic or designated country

construction material, and the offeror shall be

required to furnish such domestic or

designated country construction material. An

offer based on use of the foreign construction

material for which an exception was

requested—

(i) Will be rejected as nonresponsive if this

acquisition is conducted by sealed bidding;

or

(ii) May be accepted if revised during

negotiations.

[FR Doc. 00–13822 Filed 6–1–00; 4:01 pm]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 25 and 52

[FAC 97–18; FAR Case 1999–008; Item VII]

RIN 9000–AI54

Federal Acquisition Regulation;

Restrictions on Acquisitions from

Yugoslavia and Afghanistan

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Final rule.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council

(Councils) have agreed on a final rule

amending the Federal Acquisition

Regulation (FAR) to implement two

Executive orders, as modified by Office

of Foreign Assets Control (OFAC)

General Licenses Numbers 2 and 4.

These Executive orders prohibit the

importation into the United States of

any goods or services from Serbia

(excluding the territory of Kosovo) or

the territory of Afghanistan controlled

by the Taliban.

DATES: Effective Date: July 6, 2000.

Applicability Date: The FAR, as

amended by this rule, is applicable to

solicitations issued on or after July 6,

2000.

FOR FURTHER INFORMATION CONTACT: The

FAR Secretariat, Room 4035, GS

Building, Washington, DC, 20405, (202)

501–4755, for information pertaining to

status or publication schedules. For

clarification of content, contact Mr. Paul

Linfield, Procurement Analyst, at (202)

501–1757. Please cite FAC 97–18, FAR

case 1999–008.

SUPPLEMENTARY INFORMATION:

A. Background

This final rule amends FAR Subpart

25.7, section 25.1103, and the clauses at

FAR 52.212–5, Contract Terms and

Conditions Required to Implement

Statutes or Executive Orders—

Commercial Items, FAR 52.213–4,

Terms and Conditions—Simplified

Acquisitions (Other Than Commercial

Items), and FAR 52.225–13, Restrictions

on Foreign Purchases, to implement

Executive Order 13121 of April 30,

1999, Blocking Property and Prohibiting

Transactions With the Taliban; and

Executive Order 13129 of July 4, 1999,

Blocking Property of the Governments

of the Federal Republic of Yugoslavia

(Serbia and Montenegro), the Republic

of Serbia, and the Republic of

Montenegro, and Prohibiting Trade

Transactions Involving the Federal

Republic of Yugoslavia (Serbia and

Montenegro) in Response to the

Situation in Kosovo. These Executive

orders, as modified by OFAC General

Licenses Numbers 2 and 4, prohibit the

importation into the United States of

any goods or services from Serbia

(excluding the territory of Kosovo) or

the territory of Afghanistan controlled

by the Taliban. As a matter of policy,

the Government does not generally

acquire, even for overseas use, supplies

or services that cannot be imported

lawfully into the United States.

DoD, GSA, and NASA published a

proposed rule in the Federal Register on

December 1, 1999 (64 FR 67446). Four

respondents submitted comments. The

Councils considered all comments in

the formulation of this final rule. This

final rule differs from the proposed rule

as follows:

• Limits the restriction to Serbia

(excluding the territory of Kosovo),

rather than Serbia and Montenegro,

based on OFAC General Licenses

Numbers 2 and 4. General License No.

2 was issued by OFAC on May 5, 1999,

and relates to trade transactions with

Montenegro. General License No. 4 was

issued by OFAC on August 17, 1999,

and relates to trade transactions

involving the territory of Kosovo.

• Adds an exception at FAR

25.701(a)(2) permitting the contracting

officer, in unusual circumstances, to

acquire for use outside the United States

supplies and services restricted in

25.701(a)(1).

This rule was not subject to Office of

Management and Budget review under

Section 6(b) of Executive Order 12866,

Regulatory Planning and Review, dated

September 30, 1993. This rule is not a

major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

The Department of Defense, the

General Services Administration, and

the National Aeronautics and Space

Administration certify that this final

rule will not have a significant

economic impact on a substantial

number of small entities within the

36028 Federal Register / Vol. 65, No. 109 / Tuesday, June 6, 2000 / Rules and Regulations

meaning of the Regulatory Flexibility

Act, 5 U.S.C. 601, et seq., because it

only applies to acquisition of items from

Serbia or Afghanistan.

C. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because the changes to the

FAR 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.

List of Subjects in 48 CFR Parts 25 and

52

Government procurement.

Dated: May 26, 2000.

Edward C. Loeb,

Director, Federal Acquisition Policy Division.

Therefore, DoD, GSA, and NASA

amend 48 CFR parts 25 and 52 as set

forth below:

1. The authority citation for 48 CFR

parts 25 and 52 continues to read as

follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C.

chapter 137; and 42 U.S.C. 2473(c).

PART 25—FOREIGN ACQUISITION

2. Amend section 25.701 by revising

paragraph (a) to read as follows:

25.701 Restrictions.

(a)(1) The Government generally does

not acquire supplies or services that

cannot be imported lawfully into the

United States. Therefore, except as

provided in paragraph (a)(2) of this

section, even for overseas use, agencies

and their contractors and subcontractors

must not acquire any supplies or

services originating from sources

within, or that were located in or

transported from or through

(i) Cuba (31 CFR part 515);

(ii) Iran (31 CFR part 560);

(iii) Iraq (31 CFR part 575);

(iv) Libya (31 CFR part 550);

(v) North Korea (31 CFR part 500);

(vi) Sudan (31 CFR part 538);

(vii) Territory of Afghanistan

controlled by the Taliban (Executive

Order 13129 of July 4, 1999, Blocking

Property and Prohibiting Transactions

With the Taliban); or

(viii) Serbia, excluding the territory of

Kosovo (Executive Order 13121 of April

30, 1999, Blocking Property of the

Governments of the Federal Republic of

Yugoslavia (Serbia and Montenegro), the

Republic of Serbia, and the Republic of

Montenegro, and Prohibiting Trade

Transactions Involving the Federal

Republic of Yugoslavia (Serbia and

Montenegro) in Response to the

Situation in Kosovo).

(2)(i) Unless agency procedures

require a higher level of approval, the

contracting officer may, in unusual

circumstances, acquire for use outside

the United States supplies and services

restricted in paragraph (a)(1) of this

section. Examples of unusual

circumstances are an emergency or

when the supplies or services are not

otherwise available and a substitute is

not acceptable.

(ii) The contracting officer must

provide documentation in the contract

file whenever this exception is used.

* * * * *

3. Revise section 25.702 to read as

follows:

25.702 Source of further information.

Refer questions concerning the

restrictions in 25.701 to the Department

of the Treasury, Office of Foreign Assets

Control, Washington, D.C. 20220

(Telephone (202) 622–2520).

4. Amend section 25.1103 by revising

paragraph (a) to read as follows:

25.1103 Other provisions and clauses.

(a) Restrictions on certain foreign

purchases. Insert the clause at 52.225–

13, Restrictions on Certain Foreign

Purchases, in solicitations and contracts

with a value exceeding $2,500, unless

an exception applies (see 25.701(a)(2)).

PART 52—SOLICITATION PROVISIONS

AND CONTRACT CLAUSES

5. Amend section 52.212–5 by—

a. Revising the date of the clause and

paragraph (a);

b. In the first sentence of the

introductory text of paragraphs (b), (c),

and (d), by removing ‘‘agrees to’’ and

adding ‘‘shall’’ in their place; and

c. Removing paragraph (b)(21) and

redesignating paragraphs (b)(19) and

(b)(20) as (b)(20) and (b)(21),

respectively; and adding a new

paragraph (b)(19) to read as follows:

52.212–5 Contract Terms and Conditions

Required to Implement Statutes or

Executive Orders—Commercial Items.

* * * * *

Contract Terms and Conditions Required to

Implement Statutes or Executive Orders—

Commercial Items (July 2000)

(a) The Contractor shall comply with the

following FAR clauses, which are

incorporated in this contract by reference, to

implement provisions of law or executive

orders applicable to acquisitions of

commercial items:

(1) 52.222–3, Convict Labor (E.O. 11755).

(2) 52.233–3, Protest after Award (31 U.S.C.

3553).

(b) * * *

l ; (19) 52.225–13, Restriction on Certain

Foreign Purchases (E.O. 12722, 12724, 13059,

13067, 13121, and 13129).

* * * * *

6. Amend section 52.213–4 by revising

the date of the clause and paragraph

(a)(1)(ii) to read as follows:

52.213–4 Terms and Conditions—

Simplified Acquisitions (Other Than

Commercial Items).

* * * * *

Terms and Conditions—Simplified

Acquisitions (Other Than Commercial Items)

(July 2000)

(a) * * *

(1) * * *

* * * * *

(ii) 52.225–13, Restrictions on Certain

Foreign Purchases (July 2000) (E.O.’s 12722,

12724, 13059, 13067, 13121, and 13129).

* * * * *

7. Amend section 52.225–13 by

revising the date of the clause and the

last sentence of paragraph (a) to read as

follows:

52.225–13 Restrictions on Certain Foreign

Purchases.

* * * * *

Restrictions on Certain Foreign Purchases

(July 2000)

(a) * * * Those countries are Cuba, Iran,

Iraq, Libya, North Korea, Sudan, the territory

of Afghanistan controlled by the Taliban, and

Serbia (excluding the territory of Kosovo).

* * * * *

[FR Doc. 00–13823 Filed 6–1–00; 4:01 pm]

BILLING CODE 6820–EP–P

DEPARTMENT OF DEFENSE

GENERAL SERVICES

ADMINISTRATION

NATIONAL AERONAUTICS AND

SPACE ADMINISTRATION

48 CFR Parts 30 and 52

[FAC 97–18; FAR Case 2000–301; Item VIII]

RIN 9000–AI79

Federal Acquisition Regulation;

Applicability, Thresholds and Waiver

of Cost Accounting Standards

Coverage

AGENCIES: Department of Defense (DoD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Interim rule with request for

comments.

SUMMARY: The Civilian Agency

Acquisition Council and the Defense

Acquisition Regulations Council

(Councils) have agreed on an interim

rule amending the Federal Acquisition

Regulation (FAR) to implement Section

802 of the National Defense