32840 Federal Register / Vol. 76, No. 108 / Monday, June 6, 2011 / Rules and Regulations 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 203 and 252 

RIN 0750–AG97 

Defense Federal Acquisition 

Regulation Supplement; Agency Office 

of the Inspector General (DFARS Case 

2011–D006) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is issuing a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to make some administrative 

corrections relating to DFARS clause 

252.203–7003, Agency Office of the 

Inspector General. 

DATES: Effective Date: June 6, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Meredith Murphy, Defense Acquisition 

Regulations System, OUSD (AT&L) 

DPAP (DARS), 3060 Defense Pentagon, 

Room 3B855, Washington, DC 20301– 

3060. Telephone 703–602–1302; 

facsimile 703–602–0350. Please cite 

DFARS Case 2011–D006. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On September 27, 2010, DoD 

published a final rule under DFARS 

Case 2010–D015, DoD Office of the 

Inspector General (75 FR 59101). That 

final rule provided the address for the 

DoD Office of the Inspector General, as 

required by FAR clause 52.203–13, 

Contractor Code of Business Ethics and 

Conduct. 

This final rule corrects two omissions 

in that rule published in September 

2010. At 203.1004(a), the clause 

prescription did not include the title of 

the clause at 252.203–7003. This rule 

adds the clause title to the prescription. 

The clause prescription at 203.1004 

states that the clause at DFARS 

252.203–7003 is used in solicitations 

and contracts that include the FAR 

clause at 52.203–13. FAR clause 52.203– 

13 is applicable to commercial items 

and is listed in FAR clause 52.212–5. If 

the contractor must make disclosures to 

the agency office of the Inspector 

General, as required by paragraph 

(b)(3)(i) of FAR 52.203–13, the 

contractor would need to know the 

address of the agency office of the 

Inspector General. However, DFARS 

case 2010–D015 did not add the DFARS 

clause at 252.203–7003, which provides 

the address of the DoD Office of the 

Inspector General, to the list of contract 

terms and conditions required to 

implement statutes or Executive orders 

applicable to Defense acquisitions of 

commercial items (DFARS 252.212– 

7001). This final rule remedies that 

omission. The rule also updates the list 

of clauses at 252.212–7001. 

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 

The Regulatory Flexibility Act does 

not apply to this rule because an initial 

regulatory flexibility analysis is only 

required for proposed or interim rules 

that require publication for public 

comment (5 U.S.C. 603) and a final 

regulatory flexibility analysis is only 

required for final rules that were 

previously published for public 

comment, and for which an initial 

regulatory flexibility analysis was 

prepared (5 U.S.C. 604). 

This final rule does not constitute a 

significant DFARS revision as defined at 

FAR 1.501–1 because this rule will not 

have a significant cost or administrative 

impact on contractors or offerors, or a 

significant effect beyond the internal 

operating procedures of the 

Government. Therefore, publication for 

public comment under 41 U.S.C. 1707 is 

not required. 

IV. Paperwork Reduction Act 

The rule does not impose any new 

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 Parts 203 and 

252 

Government procurement. 

Ynette R. Shelkin, 

Editor, Defense Acquisition Regulations 

System. 

Therefore, 48 CFR parts 203 and 252 

are amended as follows: 

■ 1. The authority citation for 48 CFR 

parts 203 and 252 continues to read as 

follows: 

Authority: 41 U.S.C. 1303 and 48 CFR 

chapter 1. 

PART 203—IMPROPER BUSINESS 

PRACTICES AND PERSONAL 

CONFLICTS OF INTEREST 

■ 2. Amend section 203.1004 by 

revising paragraph (a) to read as follows: 

203.1004 Contract clauses. 

(a) Use the clause at 252.203–7003, 

Agency Office of the Inspector General, 

in solicitations and contracts that 

include the FAR clause 52.203–13, 

Contractor Code of Business Ethics and 

Conduct. 

* * * * * 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 3. Amend section 252.212–7001 by 

revising the clause date and revising 

paragraph (b) to read as follows: 

252.212–7001 Contract Terms and 

Conditions Required to Implement Statutes 

or Executive Orders Applicable to Defense 

Acquisitions of Commercial Items. 

* * * * * 

CONTRACT TERMS AND 

CONDITIONS REQUIRED TO 

IMPLEMENT STATUTES OR 

EXECUTIVE ORDERS APPLICABLE TO 

DEFENSE ACQUISITIONS OF 

COMMERCIAL ITEMS (JUN 2011) 

* * * * * 

(b) The Contractor agrees to comply with 

any clause that is checked on the following 

list of Defense FAR Supplement clauses 

which, if checked, is included in this 

contract by reference to implement 

provisions of law or Executive orders 

applicable to acquisitions of commercial 

items or components. 

(1) ll 252.203–7000, Requirements 

Relating to Compensation of Former DoD 

Officials (JAN 2009) (Section 847 of Pub. L. 

110–181). 

(2) ll252.203–7003, Agency Office of the 

Inspector General (SEP 2010) (Section 6101 

of Pub. L. 110–252, 41 U.S.C. 3509 note). 

(3) ll 252.205–7000, Provision of 

Information to Cooperative Agreement 

Holders (DEC 1991) (10 U.S.C. 2416). 

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Federal Register / Vol. 76, No. 108 / Monday, June 6, 2011 / Rules and Regulations 32841 

(4) ll 252.219–7003, Small Business 

Subcontracting Plan (DoD Contracts) (OCT 

2010) (15 U.S.C. 637). 

(5) ll 252.219–7004, Small Business 

Subcontracting Plan (Test Program) (JAN 

2011) (15 U.S.C. 637 note). 

(6)(i) ll 252.225–7001, Buy American 

Act and Balance of Payments Program (JAN 

2009) (41 U.S.C. chapter 83, E.O. 10582). 

(ii) ll Alternate I (DEC 2010) of 252.225– 

7001. 

(7) ll 252.225–7008, Restriction on 

Acquisition of Specialty Metals (JUL 2009) 

(10 U.S.C. 2533b). 

(8) ll 252.225–7009, Restriction on 

Acquisition of Certain Articles Containing 

Specialty Metals (JAN 2011) (10 U.S.C. 

2533b). 

(9) ll 252.225–7012, Preference for 

Certain Domestic Commodities (JUN 2010) 

(10 U.S.C. 2533a). 

(10) ll 252.225–7015, Restriction on 

Acquisition of Hand or Measuring Tools (JUN 

2005) (10 U.S.C. 2533a). 

(11) ll 252.225–7016, Restriction on 

Acquisition of Ball and Roller Bearings (DEC 

2010) (Section 8065 of Pub. L. 107–117 and 

the same restriction in subsequent DoD 

appropriations acts). 

(12)(i) ll 252.225–7021, Trade 

Agreements (NOV 2009) (19 U.S.C. 2501– 

2518 and 19 U.S.C. 3301 note). 

(ii) ll Alternate I (SEP 2008) of 252.225– 

7021. 

(iii) ll Alternate II (DEC 2010) of 

252.225–7021. 

(13) ll 252.225–7027, Restriction on 

Contingent Fees for Foreign Military Sales 

(APR 2003) (22 U.S.C. 2779). 

(14) ll 252.225–7028, Exclusionary 

Policies and Practices of Foreign 

Governments (APR 2003) (22 U.S.C. 2755). 

(15)(i) ll 252.225–7036, Buy American 

Act—Free Trade Agreements—Balance of 

Payments Program (DEC 2010) (41 U.S.C. 

chapter 83, and 19 U.S.C. 3301 note). 

(ii) ll Alternate I (JUL 2009) of 252.225– 

7036. 

(iii) ll Alternate II (DEC 2010) of 

252.225–7036. 

(iv) ll Alternate III (DEC 2010) of 

252.225–7036. 

(16) ll 252.225–7038, Restriction on 

Acquisition of Air Circuit Breakers (JUN 

2005) (10 U.S.C. 2534(a)(3)). 

(17) ll 252.226–7001, Utilization of 

Indian Organizations, Indian-Owned 

Economic Enterprises, and Native Hawaiian 

Small Business Concerns (SEP 2004) (Section 

8021 of Pub. L. 107–248 and similar sections 

in subsequent DoD appropriations acts). 

(18) ll 252.227–7015, Technical Data— 

Commercial Items (MAR 2011) (10 U.S.C. 

2320). 

(19) ll 252.227–7037, Validation of 

Restrictive Markings on Technical Data (SEP 

1999) (10 U.S.C. 2321). 

(20) ll 252.232–7003, Electronic 

Submission of Payment Requests and 

Receiving Reports (MAR 2008) (10 U.S.C. 

2227). 

(21) ll 252.237–7010, Prohibition on 

Interrogation of Detainees by Contractor 

Personnel (NOV 2010) (Section 1038 of Pub. 

L. 111–84). 

(22) ll 252.237–7019, Training for 

Contractor Personnel Interacting with 

Detainees (SEP 2006) (Section 1092 of Pub. 

L. 108–375). 

(23) ll 252.243–7002, Requests for 

Equitable Adjustment (MAR 1998) (10 U.S.C. 

2410). 

(24) ll 252.246–7004, Safety of 

Facilities, Infrastructure, and Equipment For 

Military Operations (OCT 2010) (Section 807 

of Pub. L. 111–84). 

(25)ll 252.247–7003, Pass-Through of 

Motor Carrier Fuel Surcharge Adjustment to 

the Cost Bearer (SEP 2010) (Section 884 of 

Pub. L. 110–417). 

(26)(i) ll 252.247–7023, Transportation 

of Supplies by Sea (MAY 2002) (10 U.S.C. 

2631). 

(ii) ll Alternate I (MAR 2000) of 

252.247–7023. 

(iii) ll Alternate II (MAR 2000) of 

252.247–7023. 

(iv) ll Alternate III (MAY 2002) of 

252.247–7023. 

(27) ll 252.247–7024, Notification of 

Transportation of Supplies by Sea (MAR 

(2000) (10 U.S.C. 2631). 

[FR Doc. 2011–13648 Filed 6–3–11; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 225 and 252 

RIN 0750–AH16 

Defense Federal Acquisition 

Regulation Supplement; Foreign 

Acquisition Amendments (DFARS 

Case 2011–D017) 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is amending the Defense 

Federal Acquisition Regulation 

Supplement (DFARS) to correct several 

anomalies resulting from recent changes 

relating to source of ball and roller 

bearing components, eligibility of 

Peruvian end products under trade 

agreements, and participation of foreign 

contractors in acquisitions in support of 

operations in Afghanistan. 

DATES: Effective Date: June 6, 2011. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Amy G. Williams, Defense Acquisition 

Regulations System, OUSD (AT&L) 

DPAP/DARS, Room 3B855, 3060 

Defense Pentagon, Washington, DC 

20301–3060. Telephone 703–602–0328; 

facsimile 703–602–0350. 

SUPPLEMENTARY INFORMATION: 

I. Background 

DoD is amending the DFARS to 

correct several anomalies resulting from 

recent changes relating to source of ball 

and roller bearing components, 

participation of foreign contractors in 

acquisitions in support of operations in 

Afghanistan, and eligibility of Peruvian 

end products under trade agreements. 

A. Restriction on Ball and Roller 

Bearings 

DoD published a proposed rule, 

Restrictions on Ball and Roller Bearings 

(DFARS Case 2006–D029), in the 

Federal Register (75 FR 25167) on May 

7, 2010 with request for comments. DoD 

received comments from three 

respondents and addressed the 

comments in the publication of the final 

rule (75 FR 76297) on December 8, 2010. 

DFARS Case 2006–D029 retained the 

existing definition of ‘‘bearing 

component’’. As used in DFARS part 

225 and the DFARS clause 252.225– 

7016, ‘‘bearing component’’ means the 

bearing element, retainer, inner race, or 

outer race (see 252.225–7016(a)). 

However, that rule added a new 

requirement at 225.7009–2(a)(2) and 

252.225–7016(b)(2) that for each ball or 

roller bearing, the cost of the bearing 

components ‘‘mined, produced, or 

manufactured’’ in the United States or 

Canada must exceed 50 percent of the 

total cost of the bearing components of 

that ball or roller bearing. 

The phrase ‘‘mined, produced, or 

manufactured’’ was adopted from the 

Buy American Act, which applies 

broadly to many types of items. This 

rule applies only to bearing 

components, which are manufactured 

items and not mined or produced. As 

used in the DFARS, the term ‘‘bearing 

component’’ does not refer to the 

materials that are utilized in the 

manufacture of the bearing components. 

There is no restriction with regard to 

where the iron ore is mined or where 

the resultant steel in a bearing 

component is produced. The 

requirement at 225.7009–2(a)(2) and 

252.225–7016(b)(2) that for each ball or 

roller bearing, the cost of the bearing 

components ‘‘mined, produced, or 

manufactured’’ in the United States or 

Canada must exceed 50 percent of the 

total cost of the bearing components of 

that ball or roller bearing, has the same 

meaning as a requirement that for each 

ball or roller bearing, the cost of the 

bearing components ‘‘manufactured’’ in 

the United States or Canada must 

exceed 50 percent of the total cost of the 

bearing components of that ball or roller 

bearing. The words ‘‘mined’’ and 

‘‘produced’’ are extraneous because they 

are inapplicable, since a ball or roller 

bearing is manufactured and not mined 

or produced. Therefore, this final rule 

under DFARS Case 2011–D017 removes 

the words ‘‘mined, produced, or’’ and 

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