Federal Register / Vol. 79, No. 182 / Friday, September 19, 2014 / Proposed Rules 56333 

Pub. L. 105–56 and similar sections in 

subsequent DoD appropriations acts); or 

(iv) Include a cancellation ceiling in 

excess of $125 million (see 10 U.S.C. 

2306c(d)(4) and 10 U.S.C. 2306b(g)(1)). 

* * * * * 

217.171 [Amended] 

■ 4. Amend section 217.171 by— 

■ a. In the introductory text of 

paragraph (a), removing ‘‘(10 U.S.C. 

2306c)’’ and adding ‘‘(10 U.S.C. 

2306c(a))’’ in its place; 

■ b. In paragraph (a)(5)(iii), adding ‘‘(10 

U.S.C. 2306c(b))’’ at the end of the 

sentence, before the period; 

■ c. In paragraph (b)(3), adding ‘‘(10 

U.S.C. 2306c(c))’’ at the end of the 

sentence, before the period; 

■ d. In paragraph (c)(3), adding ‘‘(10 

U.S.C. 2306c(a))’’ at the end of the 

sentence, before the period; and 

■ e. In paragraph (d), removing ‘‘(10 

U.S.C. 2306(c))’’ and adding ‘‘(10 U.S.C. 

2306c(d)(2))’’ in its place. 

■ 5. Amend section 217.172 by— 

■ a. Revising paragraph (c); 

■ b. Redesignating paragraphs (d) 

through (h) as paragraphs (e) through (i), 

respectively; 

■ c. Adding a new paragraph (d); 

■ d. In newly redesignated paragraph 

(f)(1), adding a parenthesis to close the 

parenthetical phrase ‘‘(when entered 

into or extended)’’ and removing ‘‘(10 

U.S.C. 2306b(1)(5))’’ and adding ‘‘(10 

U.S.C. 2306b(l)(5))’’ in its place. 

■ e. In newly redesignated paragraph 

(f)(2), removing the parenthetical 

reference ‘‘(10 U.S.C. 2306b(a)(l)(7))’’; 

■ f. In newly redesignated paragraph 

(g)(1), adding the parenthetical reference 

‘‘(10 U.S.C. 2306b(h)(1))’’ before the 

semicolon; 

■ g. In newly redesignated paragraph 

(g)(2), adding the parenthetical reference 

‘‘(10 U.S.C. 2306b(h)(2))’’ at the end of 

the first sentence, before the period; 

■ h. In newly redesignated paragraph 

(h)(2)(vii)— 

■ i. Adding the parenthetical reference 

‘‘(10 U.S.C. 2306b(i)(1)(G))’’ at the end 

of the first sentence before the period, 

and removing it from the end of the 

second sentence; and 

■ ii. Removing ‘‘USD(C)(P/B)’’ and 

adding ‘‘OUSD(C)(P/B)’’ in its place. 

■ i. In newly redesignated paragraph 

(h)(2)(viii) introductory text, removing 

‘‘USD(C)(P/B)’’ and adding 

‘‘OUSD(C)(P/B)’’ in its place. 

■ j. In newly redesignated paragraph 

(h)(8) introductory text, removing the 

parenthetical reference ‘‘(10 U.S.C. 

2306b(i)(2))’’; and 

■ k. Adding a new paragraph (j). 

The revisions and additions read as 

follows: 

217.172 Multiyear contracts for supplies. 

* * * * * 

(c) Multiyear contracts in amounts 

exceeding $500 million must be 

specifically authorized by law in an act 

other than an appropriations act (10 

U.S.C. 2306b(i)(3)). 

(d) The head of an agency may not 

initiate a multiyear procurement 

contract for any system (or component 

thereof) if the value of the multiyear 

contract would exceed $500 million 

unless authority for the contract is 

specifically provided in an 

appropriations act (10 U.S.C. 

2306b(l)(3)). 

* * * * * 

(j) Any requests for increased funding 

or reprogramming for procurement of a 

major system under a multiyear contract 

shall be accompanied by an explanation 

of how the request for increased funding 

affects the determinations made by the 

Secretary of Defense under 217.172(g)(2) 

(10 U.S.C. 2306b(m)). 

[FR Doc. 2014–22368 Filed 9–18–14; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Part 225 

RIN 0750–AI36 

Defense Federal Acquisition 

Regulation Supplement: Domestic 

Source Restrictions on Certain Naval 

Vessel Components (DFARS Case 

2014–D022) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Proposed rule. 

SUMMARY: DoD is proposing to amend 

the Defense Federal Acquisition 

Regulation Supplement (DFARS) to 

implement the statutory domestic 

source restrictions on acquisition of 

certain naval vessel components. 

DATES: Comment date: Comments on the 

proposed rule should be submitted in 

writing to the address shown below on 

or before November 18, 2014, to be 

considered in the formation of a final 

rule. 

ADDRESSES: Submit comments 

identified by DFARS Case 2014–D022, 

using any of the following methods: 

• Regulations.gov: http://

www.regulations.gov. Submit comments 

via the Federal eRulemaking portal by 

entering ‘‘DFARS Case 2014–D022’’ 

under the heading ‘‘Enter keyword or 

ID’’ and selecting ‘‘Search.’’ Select the 

link ‘‘Submit a Comment’’ that 

corresponds with ‘‘DFARS Case 2014– 

D022.’’ Follow the instructions provided 

at the ‘‘Submit a Comment’’ screen. 

Please include your name, company 

name (if any), and ‘‘DFARS Case 2014– 

D022’’ on your attached document. 

• Email: osd.dfars@mail.mil. Include 

DFARS Case 2014–D022 in the subject 

line of the message. 

• Fax: 571–372–6094. 

• Mail: Defense Acquisition 

Regulations System, Attn: Amy G. 

Williams, OUSD(AT&L)DPAP/DARS, 

Room 3B941, 3060 Defense Pentagon, 

Washington, DC 20301–3060. 

Comments received generally will be 

posted without change to http://

www.regulations.gov, including any 

personal information provided. To 

confirm receipt of your comment(s), 

please check www.regulations.gov, 

approximately two to three days after 

submission to verify posting (except 

allow 30 days for posting of comments 

submitted by mail). 

FOR FURTHER INFORMATION CONTACT: Ms. 

Amy G. Williams, Defense Acquisition 

Regulations System, 

OUSD(AT&L)DPAP/DARS, Room 

3B941, 3060 Defense Pentagon, 

Washington, DC 20301–3060. 

Telephone 571–372–6106. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD is proposing to revise DFARS 

225.7010 to implement the domestic 

source restrictions in 10 U.S.C. 2534 on 

gyrocompasses, electronic navigation 

chart systems, steering controls, pumps, 

propulsion and machinery control 

systems, and totally enclosed lifeboats, 

to the extent they are unique to marine 

applications. 

These restrictions are currently 

implemented in the acquisition 

regulations of the Defense Logistics 

Agency and the Department of the Navy, 

the two DoD components that acquire 

such naval vessel components. The 

restrictions are now being incorporated 

into the DFARS because they impact 

more than one DoD component. 

10 U.S.C. 2534 prohibits acquisition 

of these naval vessel components, 

unless they are manufactured in the 

United States or Canada, except for 

acquisitions that do not exceed the 

simplified acquisition threshold or 

acquisitions of spare or repair parts 

needed to support components for naval 

vessels manufactured outside the 

United States. 

The waiver criteria at DFARS 

225.7008(a) apply to this restriction. 

The Under Secretary of Defense 


asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
56334 Federal Register / Vol. 79, No. 182 / Friday, September 19, 2014 / Proposed Rules 

(Acquisition, Technology, and Logistics) 

has waived this restriction for certain 

defense items manufactured in the 

United Kingdom, including these naval 

vessel components (see 79 FR 11770, 

dated March 3, 2014). 

10 U.S.C. 2534(h) prohibits the use of 

a contract clause or certification to 

implement this restriction. 

II. Executive Orders 12866 and 13563 

Executive Orders (E.O.s) 12866 and 

13563 direct agencies to assess all costs 

and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). E.O. 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This is not a significant 

regulatory action and, therefore, was not 

subject to review under section 6(b) of 

E.O. 12866, Regulatory Planning and 

Review, dated September 30, 1993. This 

rule is not a major rule under 5 U.S.C. 

804. 

III. 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 this law has been implemented 

in the Defense Logistics Agency and 

Department of Navy regulations for 

many years, and moving the regulations 

to the DFARS will have no impact on 

the public. 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 2014–D022), in 

correspondence. 

IV. Paperwork Reduction Act 

The rule does not contain any 

information collection requirements that 

require the approval of the Office of 

Management and Budget under the 

Paperwork Reduction Act (44 U.S.C. 

chapter 35). 

List of Subjects in 48 CFR Part 225 

Government procurement. 

Manuel Quinones, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR part 225 is 

proposed to be 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. 1303 and 48 CFR 

chapter 1. 

■ 2. Amend section 225.7008 by 

revising paragraph (b) to read as follows: 

225.7008 Waiver of restrictions of 10 

U.S.C. 2534. 

* * * * * 

(b) In accordance with the provisions 

of paragraphs (a)(1)(i) through (iii) of 

this section, the USD(AT&L) has waived 

the restrictions of 10 U.S.C. 2534(a) for 

certain items manufactured in the 

United Kingdom, including air circuit 

breakers for naval vessels (see 225.7006) 

and the naval vessel components listed 

at 225.7010–1. 

■ 3. Add section 225.7010 to read as 

follows: 

225.7010 Restriction on certain naval 

vessel components. 

■ 4. Add sections 225.7010–1, 

225.7010–2, 225.7010–3, and 225.7010– 

4 to read as follows: 

225.7010–1 Restriction. 

In accordance with 10 U.S.C. 2534, do 

not acquire the following components of 

naval vessels, to the extent they are 

unique to marine applications, unless 

manufactured in the United States or 

Canada: 

(a) Gyrocompasses. 

(b) Electronic navigation chart 

systems. 

(c) Steering controls. 

(d) Pumps. 

(e) Propulsion and machinery control 

systems. 

(f) Totally enclosed lifeboats. 

225.7010–2 Exceptions. 

This restriction does not apply to— 

(a) Contracts of subcontracts that do 

not exceed the simplified acquisition 

threshold; or 

(b) Acquisition of spare or repair parts 

needed to support components for naval 

vessels manufactured outside the 

United States. Support includes the 

purchase of spare gyrocompasses, 

electronic navigation chart systems, 

steering controls, pumps, propulsion 

and machinery control systems, or 

totally enclosed lifeboats, when those 

from alternate sources are not 

interchangeable. 

225.7010–3 Waiver. 

(a) The waiver criteria at 225.7008(a) 

apply to this restriction. 

(b) The Under Secretary of Defense 

(Acquisition, Technology, and Logistics) 

has waived the restriction of 10 U.S.C. 

2534 for certain items manufactured in 

the United Kingdom, including the 

items listed in section 225.7010–1. See 

225.7008. 

225.7010–4 Implementation. 

(a) 10 U.S.C. 2534(h) prohibits the use 

of contract clauses or certifications to 

implement this restriction. 

(b) Agencies shall accomplish 

implementation of this restriction 

through use of management and 

oversight techniques that achieve the 

objectives of this section without 

imposing a significant management 

burden on the Government or the 

contractor involved. 

[FR Doc. 2014–22369 Filed 9–18–14; 8:45 am] 

BILLING CODE 5001–06–P 


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