15816 Federal Register / Vol. 87, No. 53 / Friday, March 18, 2022 / Rules and Regulations 

List of Subjects in 48 CFR Parts 225 and 

252 

Government procurement. 

Jennifer D. Johnson, 

Editor/Publisher, Defense Acquisition 

Regulations System. 

Therefore, 48 CFR parts 225 and 252 

are amended as follows: 

■ 1. The authority citation for 48 CFR 

parts 225 and 252 continues to read as 

follows: 

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

chapter 1. 

PART 225—FOREIGN ACQUISITION 

225.003 [Amended] 

■ 2. Amend section 225.003 in the 

definition of ‘‘Qualifying country’’ by 

adding, in alphabetical order, the 

country of ‘‘Lithuania’’. 

225.872–1 [Amended] 

■ 3. Amend section 225.872–1 in 

paragraph (a) by adding, in alphabetical 

order, the country of ‘‘Lithuania’’. 

PART 252—SOLICITATION 

PROVISIONS AND CONTRACT 

CLAUSES 

■ 4. Amend section 252.225–7001 by— 

■ a. In the clause heading, removing the 

date ‘‘(DEC 2017)’’ and adding ‘‘(MAR 

2022)’’ in its place; 

■ b. In the paragraph (a), in the 

definition of ‘‘Qualifying country’’, 

adding, in alphabetical order, the 

country of ‘‘Lithuania’’; and 

■ c. In Alternate I— 

■ i. In the clause heading, removing the 

date ‘‘(DEC 2017)’’ and adding ‘‘(MAR 

2022)’’ in its place; and 

■ ii. In the paragraph (a), in the 

definition of ‘‘Qualifying country’’, 

adding, in alphabetical order, the 

country of ‘‘Lithuania’’. 

■ 5. Amend section 225.225–7002 by— 

■ a. Revising the section heading and 

date of the clause; and 

■ b. In the paragraph (a), in the 

definition of ‘‘Qualifying country’’, 

adding, in alphabetical order, the 

country of ‘‘Lithuania’’. 

The revisions read as follows: 

252.225–7002 Qualifying Country Sources 

as Subcontractors. 

* * * * * 

Qualifying Country Sources as 

Subcontractors (MAR 2022) 

* * * * * 

■ 6. Amend section 252.225–7012 by— 

■ a. Revising the section heading and 

date of the clause; and 

■ b. In the paragraph (a), in the 

definition of ‘‘Qualifying country’’, 

adding, in alphabetical order, the 

country of ‘‘Lithuania’’. 

The revisions read as follows: 

252.225–7012 Preference for Certain 

Domestic Commodities. 

* * * * * 

Preference for Certain Domestic 

Commodities (MAR 2022) 

* * * * * 

252.225–7017 [Amended] 

■ 7. Amend section 252.225–7017 by— 

■ a. In the clause heading, removing the 

date ‘‘(JAN 2022)’’ and adding ‘‘(MAR 

2022)’’ in its place; and 

■ b. In the paragraph (a), in the 

definition of ‘‘Qualifying country’’, 

adding, in alphabetical order, the 

country of ‘‘Lithuania’’. 

252.225–7021 [Amended] 

■ 8. Amend section 252.225–7021 by— 

■ a. In the clause heading, removing 

‘‘(SEP 2019)’’ and adding ‘‘(MAR 2022)’’ 

in its place; 

■ b. In the paragraph (a), in the 

definition of ‘‘Qualifying country’’, 

adding, in alphabetical order, the 

country of ‘‘Lithuania’’; and 

■ c. In Alternate II— 

■ i. In the clause heading, removing the 

date of ‘‘(SEP 2019)’’ and adding ‘‘(MAR 

2022)’’ in its place; and 

■ ii. In the paragraph (a), in the 

definition of ‘‘Qualifying country’’, 

adding, in alphabetical order, the 

country of ‘‘Lithuania’’. 

252.225–7036 [Amended] 

■ 9. Amend section 252.225–7036 by— 

■ a. In the clause heading, removing the 

date ‘‘(DEC 2017)’’ and adding ‘‘(MAR 

2022)’’ in its place; 

■ b. In the paragraph (a), in the 

definition of ‘‘Qualifying country’’, 

adding, in alphabetical order, the 

country of ‘‘Lithuania’’; 

■ c. In Alternate I— 

■ i. In the clause heading, removing the 

clause date of ‘‘(DEC 2017)’’ and adding 

‘‘(MAR 2022)’’ in its place; and 

■ ii. In the paragraph (a), in the 

definition of ‘‘Qualifying country’’, 

adding, in alphabetical order, the 

country of ‘‘Lithuania’’; 

■ d. In Alternate II— 

■ i. In the clause heading, removing the 

clause date of ‘‘(DEC 2017)’’ and adding 

‘‘(MAR 2022)’’ in its place; and 

■ ii. In the paragraph (a), in the 

definition of ‘‘Qualifying country’’, 

adding, in alphabetical order, the 

country of ‘‘Lithuania’’; 

■ e. In Alternate III— 

■ i. In the clause heading, removing the 

clause date of ‘‘(DEC 2017)’’ and adding 

‘‘(MAR 2022)’’ in its place; and 

■ ii. In the paragraph (a), in the 

definition of ‘‘Qualifying country’’, 

adding, in alphabetical order, the 

country of ‘‘Lithuania’’; 

■ f. In Alternate IV— 

■ i. In the clause heading, removing the 

clause date of ‘‘(DEC 2017)’’ and adding 

‘‘(MAR 2022)’’ in its place; and 

■ ii. In the paragraph (a), in the 

definition of ‘‘Qualifying country’’, 

adding, in alphabetical order, the 

country of ‘‘Lithuania’’; and 

■ g. In Alternate V— 

■ i. In the clause heading, removing the 

clause date of ‘‘(DEC 2017)’’ and adding 

‘‘(MAR 2022)’’ in its place; and 

■ ii. In the paragraph (a), in the 

definition of ‘‘Qualifying country’’, 

adding, in alphabetical order, the 

country of ‘‘Lithuania’’. 

[FR Doc. 2022–05534 Filed 3–17–22; 8:45 am] 

BILLING CODE 5001–06–P 

DEPARTMENT OF DEFENSE 

Defense Acquisition Regulations 

System 

48 CFR Parts 204, 208, 209, 211, 212, 

213, 216, 225, 227, 232, 236, 241, 246, 

and 252 

[Docket DARS–2022–0001] 

Defense Federal Acquisition 

Regulation Supplement: Technical 

Amendments 

AGENCY: Defense Acquisition 

Regulations System, Department of 

Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD is making technical 

amendments to the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to provide needed editorial 

changes. 

DATES: Effective March 17, 2022. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Jennifer D. Johnson, telephone 571– 

372–6100. 

SUPPLEMENTARY INFORMATION: This final 

rule makes the following changes: 

1. Updates office designations and a 

hyperlink at DFARS 204.604 and 

232.1004. 

2. Updates hyperlinks at: DFARS 

204.7302, 208.602–70, 213.301, 

225.7003–2, 252.204–7019, 252.204– 

7020, 252.211–7003, and 252.211–7007. 

3. Removes obsolete text at DFARS 

209.104–1, paragraph (g)(i). The final 

rule for DFARS Case 2014–D014, 

published at 79 FR 73488, revised 

section 209.104–1, paragraph (g)(i), 

because the coverage was relocated to 

DFARS subpart 225.7. Several 

subordinate paragraphs to paragraph 

(g)(i) that should have been removed at 


jspears on DSK121TN23PROD with RULES2
Federal Register / Vol. 87, No. 53 / Friday, March 18, 2022 / Rules and Regulations 15817 

that time were inadvertently retained in 

the Code of Federal Regulations (CFR). 

This technical amendment corrects that 

error and removes the obsolete text at 

DFARS 209.104–1, paragraphs (g)(i)(1) 

and (2), from the eCFR. 

4. Reinstates DFARS subpart 211.70 

and section 211.7001, which points to 

procedures provided in DFARS 

Procedures, Guidance, and Information 

(PGI) 211.7001. 

5. DFARS 212.207(b)(i), adds a 

missing parenthesis. 

6. DFARS 216.402–2(2)(ii), corrects a 

typographical error in the electronic 

Code of Federal Regulations. 

7. DFARS 225.7700(e), corrects a 

typographical error in a statutory 

section reference. 

8. DFARS 241.102(b)(7)(C), updates a 

statutory reference pursuant to the 

National Defense Authorization Act for 

Fiscal Year 2006 (section 2851, Pub. L. 

109–364). 

9. DFARS 246.870–2, removes 

obsolete language. The final rule was 

published at 81 FR 72738 to amend 

DFARS 246.870–2(a)(2) introductory 

text by removing ‘‘(b)(3)(ii) through 

(b)(3)(iv)’’ and adding ‘‘(b)(3)(ii)’’ in its 

place, but DFARS 204.870–2 was 

referenced instead of DFARS 246.870–2. 

According to a CFR Editorial Note, the 

change is not reflected in the Code of 

Federal Regulations due to inaccurate 

amendatory instruction. This rule 

provides the correct amendatory 

instruction. 

10. DFARS 252.225–7013, updates an 

updated mailing address at paragraph 

(e)(2)(iv)(A). 

11. Updates statutory redesignations 

made by the National Defense 

Authorization Act for Fiscal Year 2019 

(Pub. L. 115–232): 

• Section 808(b)(12) redesignates 10 

U.S.C. 7317 as 10 U.S.C. 8687 at DFARS 

212.301, 227.7100, 227.7102–1, 

227.7103–1, 252.227–7013, and 

252.227–7015; and 

• Section 808(d) redesignates 10 

U.S.C. 4540 as 10 U.S.C. 7540 and 

section 807(d)(1) redesignates 10 U.S.C. 

7212 as 10 U.S.C. 8612 at DFARS 

236.606–70. 

List of Subjects in 48 CFR Parts 204, 

208, 209, 211, 212, 213, 216, 225, 227, 

232, 236, 241, 246, and 252 

Government procurement. 

Jennifer D. Johnson, 

Editor/Publisher, Defense Acquisition 

Regulations System. 

Therefore, 48 CFR parts 204, 208, 209, 

211, 212, 213, 216, 225, 227, 232, 236, 

241, 246, and 252 are amended as 

follows: 

PART 204—ADMINISTRATIVE AND 

INFORMATION MATTERS 

■ 1. The authority citation for 48 CFR 

part 204 continues to read as follows: 

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

chapter 1. 

■ 2. Amend section 204.604 by revising 

paragraph (3) to read as follows: 

204.604 Responsibilities. 

* * * * * 

(3) By December 15th of each year, the 

chief acquisition officer of each DoD 

component required to report its 

contract actions shall submit to the 

Principal Director, Defense Pricing and 

Contracting, its annual certification and 

data validation results for the preceding 

fiscal year in accordance with the DoD 

Data Improvement Plan requirements at 

https://www.acq.osd.mil/asda/dpc/ce/ 

cap/index.html. The Principal Director, 

Defense Pricing and Contracting, will 

submit a consolidated DoD annual 

certification to the Office of 

Management and Budget by January 5th 

of each year. 

204.7302 [Amended] 

■ 3. Amend section 204.7302 in 

paragraph (a)(3) by removing ‘‘https://

www.acq.osd.mil/dpap/pdi/cyber/ 

strategically_assessing_contractor_

implementation_of_NIST_SP_800- 

171.html’’ and adding ‘‘https://

www.acq.osd.mil/asda/dpc/cp/cyber/ 

safeguarding.html#nistSP800171’’ in its 

place. 

PART 208—REQUIRED SOURCES OF 

SUPPLIES AND SERVICES 

■ 4. The authority citation for 48 CFR 

part 208 continues to read as follows: 

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

chapter 1. 

208.602–70 [Amended] 

■ 5. Amend section 208.602–70 in 

paragraph (b) by removing ‘‘http://

www.acq.osd.mil/dpap/cpic/cp/ 

specific_policy_areas.html#federal_

prison’’ and adding ‘‘https://

www.acq.osd.mil/asda/dpc/cp/policy/ 

other-policy-areas.html#fpi’’ in its 

place. 

PART 209—CONTRACTOR 

QUALIFICATIONS 

■ 6. The authority citation for 48 CFR 

part 209 continues to read as follows: 

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

chapter 1. 

■ 7. Amend section 209.104–1 by— 

■ a. Revising paragraph (g)(i); and 

■ b. Removing paragraphs (g)(i)(1) 

introductory text, (g)(i)(1)(i) and (ii), 

(g)(i)(2), and (g)(i)(B) and (C). 

The revision reads as follows: 

209.104–1 General standards. 

* * * * * 

(g)(i) Ownership or control by the 

government of a country that is a state 

sponsor of terrorism. See 225.771. 

* * * * * 

PART 211—DESCRIBING AGENCY 

NEEDS 

■ 8. The authority citation for 48 CFR 

part 211 is revised to read as follows: 

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

chapter 1. 

■ 9. Add subpart 211.70 to read as 

follows: 

SUBPART 211.70—PURCHASE 

REQUESTS 

211.7001 Procedures. 

Follow the procedures at PGI 

211.7001 for developing and 

distributing purchase requests, except 

for the requirements for Military 

Interdepartmental Purchase Requests 

(DD Form 448) addressed in 253.208–1. 

PART 212—ACQUISITION OF 

COMMERCIAL ITEMS 

■ 10. The authority citation for 48 CFR 

part 212 continues to read as follows: 

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

chapter 1. 

212.207 [Amended] 

■ 11. Amend section 212.207 in 

paragraph (b)(i) by removing ‘‘(41 U.S.C. 

103’’ and adding ‘‘(41 U.S.C. 103)’’ in its 

place. 

212.301 [Amended] 

■ 12. Amend 212.301 in paragraphs 

(f)(xi)(A) and (B) by removing ‘‘10 

U.S.C. 7317’’ and adding ‘‘10 U.S.C. 

8687’’ in its place. 

PART 213—SIMPLIFIED ACQUISITION 

PROCEDURES 

■ 13. The authority citation for 48 CFR 

part 213 continues to read as follows: 

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

chapter 1. 

213.301 [Amended] 

■ 14. Amend section 213.301 in 

paragraph (4) by removing ‘‘https://

www.acq.osd.mil/dpap/pdi/pc/policy_

documents.html’’ and adding ‘‘https://

www.acq.osd.mil/asda/dpc/ce/pc/docsguides.html’’ in its place. 


jspears on DSK121TN23PROD with RULES2
15818 Federal Register / Vol. 87, No. 53 / Friday, March 18, 2022 / Rules and Regulations 

PART 216—TYPES OF CONTRACTS 

■ 15. The authority citation for 48 CFR 

part 216 continues to read as follows: 

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

chapter 1. 

216.402–2 [Amended] 

■ 16. Amend section 216.402–2 in 

paragraph (2)(ii) by removing ‘‘faile’’ 

and adding ‘‘failure’’ in its place. 

PART 225—FOREIGN ACQUISITION 

■ 17. The authority citation for 48 CFR 

part 225 continues to read as follows: 

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

chapter 1. 

■ 18. Amend section 225.7003–2 by— 

■ a. Designating the introductory text as 

paragraph (a); 

■ b. Further redesignating newly 

redesignated paragraph (a)(1)(a) 

introductory text as as paragraph (a)(1) 

introductory text; and 

■ c. Revising paragraph (b). 

The revision reads as follows: 

225.7003–2 Restrictions. 

* * * * * 

(b) For more information on specialty 

metals restrictions and reporting of 

noncompliances, see https://

www.acq.osd.mil/asda/dpc/cp/ic/ 

specialty-metals-restrictions.html. 

225.7700 [Amended] 

■ 19. Amend section 227.7700 in 

paragraph (e) by removing ‘‘Section 

216’’ and adding ‘‘Section 1216’’ in its 

place. 

PART 227—PATENTS, DATA, AND 

COPYRIGHTS 

■ 20. The authority citation for 48 CFR 

part 227 continues to read as follows: 

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

chapter 1. 

227.7100 [Amended] 

■ 21. Amend section 227.7100 in 

paragraph (a)(6) by removing ‘‘10 U.S.C. 

7317’’ and adding ‘‘10 U.S.C. 8687’’ in 

its place. 

227.7102–1 [Amended] 

■ 22. Amend section 227.7102–1 in 

paragraph (c) by removing ‘‘10 U.S.C. 

7317’’ and adding ‘‘10 U.S.C. 8687’’ in 

its place. 

227.7103–1 [Amended] 

■ 23. Amend section 227.7103–1 in 

paragraph (g) by removing ‘‘10 U.S.C. 

7317’’ and adding ‘‘10 U.S.C. 8687’’ in 

its place. 

PART 232—CONTRACT FINANCING 

■ 24. The authority citation for 48 CFR 

part 232 continues to read as follows: 

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

chapter 1. 

■ 25. Amend section 232.1004 by 

revising paragraph (b)(ii) introductory 

text to read as follows: 

232.1004 Procedures. 

(b) * * * 

(ii) The contracting officer shall 

analyze the performance-based payment 

schedule using the performance-based 

payments (PBP) analysis tool. The PBP 

analysis tool is on the DPC website in 

the Price, Cost and Finance section. The 

PBP analysis tool and Performance 

Based Payments Guidebook are 

available at https://www.acq.osd.mil/ 

asda/dpc/pcf/pricing-topics.html#pdp. 

* * * * * 

PART 236—CONSTRUCTION AND 

ARCHITECT–ENGINEER CONTRACTS 

■ 26. The authority citation for 48 CFR 

part 236 continues to read as follows: 

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

chapter 1. 

236.606–70 [Amended] 

■ 27. Amend section 236.606–70 in 

paragraph (a) by removing ‘‘10 U.S.C. 

4540, 7212,’’ and adding ‘‘10 U.S.C. 

7540, 8612,’’ in its place. 

PART 241—ACQUISITION OF UTILITY 

SERVICES 

■ 28. The authority citation for 48 CFR 

part 241 is revised to read as follows: 

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

chapter 1. 

241.102 [Amended] 

■ 29. Amend section 241.102 in 

paragraph (b)(7)(C) by removing ‘‘10 

U.S.C. 2689’’ and adding ‘‘10 U.S.C. 

2917’’ in its place. 

PART 246—QUALITY ASSURANCE 

■ 30. The authority citation for 48 CFR 

part 246 continues to read as follows: 

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

chapter 1. 

■ 31. Amend section 246.870–2 by 

revising paragraph (a)(2) introductory 

text to read as follows: 

246.870–2 Policy. 

(a) * * * 

(2) The Government requires 

contractors and subcontractors to 

comply with the notification, 

inspection, testing, and authentication 

requirements of paragraph (b)(3)(ii) of 

the clause at 252.246–7008, Sources of 

Electronic Parts, if the contractor— 

* * * * * 

■ 32. The authority citation for 48 CFR 

part 252 continues to read as follows: 

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

chapter 1. 

252.204–7019 [Amended] 

■ 33. Amend section 252.204–7019 by— 

■ a. Removing the clause date of ‘‘(NOV 

2020)’’ and adding ‘‘(MAR 2022)’’ in its 

place; and 

■ b. In paragraph (b), removing ‘‘https:// 

www.acq.osd.mil/dpap/pdi/cyber/ 

strategically_assessing_contractor_

implementation_of_NIST_SP_800- 

171.html’’ and adding ‘‘https://

www.acq.osd.mil/asda/dpc/cp/cyber/ 

safeguarding.html#nistSP800171’’ in its 

place. 

252.204–7020 [Amended] 

■ 34. Amend section 252.204–7020 by— 

■ a. Removing the clause date of ‘‘(NOV 

2020)’’ and adding ‘‘(MAR 2022)’’ in its 

place; and 

■ b. In paragraphs (c) and (g)(2), 

removing ‘‘https://www.acq.osd.mil/ 

dpap/pdi/cyber/strategically_assessing_

contractor_implementation_of_NIST_

SP_800-171.html’’ and adding ‘‘https:// 

www.acq.osd.mil/asda/dpc/cp/cyber/ 

safeguarding.html#nistSP800171’’ in its 

place. 

252.211–7003 [Amended] 

■ 35. Amend section 252.211–7003 by— 

■ a. Removing the clause date of ‘‘(MAR 

2016)’’ and adding ‘‘(MAR 2022)’’ in its 

place; and 

■ b. In paragraph (a): 

■ i. In the definition of ‘‘DoD recognized 

unique identification equivalent’’, 

removing ‘‘http://www.acq.osd.mil/ 

dpap/pdi/uid/iuid_equivalents.html’’ 

and adding ‘‘https://www.acq.osd.mil/ 

asda/dpc/ce/ds/unique-id.html’’ in its 

place; and 

■ ii. In the definition of ‘‘Unique item 

identifier type’’, removing ‘‘http://

www.acq.osd.mil/dpap/pdi/uid/uii_

types.html’’ and adding ‘‘https://

www.acq.osd.mil/asda/dpc/ce/ds/ 

unique-id.html’’ in its place. 

252.211–7007 [Amended] 

■ 36. Amend section 252.211–7007 by— 

■ a. Removing the clause date ‘‘(AUG 

2012)’’ and adding ‘‘(MAR 2022)’’ in its 

place; and 

■ b. In paragraph (f), removing ‘‘http:// 

www.acq.osd.mil/dpap/pdi/uid/data_

submission_information.html’’ and 

adding ‘‘https:// 

dodprocurementtoolbox.com/cms/sites/ 

default/files/resources/2021–09/ 

GFP%20Reporting%20Guide_Vendors_

June%202018.pdf’’ in its place. 


jspears on DSK121TN23PROD with RULES2
Federal Register / Vol. 87, No. 53 / Friday, March 18, 2022 / Rules and Regulations 15819 

■ 37. Amend section 252.225–7013 by— 

■ a. Revising the section heading; 

■ b. Removing the clause date ‘‘(APR 

2020)’’ and adding ‘‘(MAR 2022)’’ in its 

place; and 

■ c. Revising paragraph (e)(2)(iv)(A). 

The revision reads as follows: 

252.225–7013 Duty-Free Entry. 

* * * * * 

(e) * * * 

(2) * * * 

(iv)(A) For direct shipments to a U.S. 

military installation, the notation: 

‘‘UNITED STATES GOVERNMENT, 

DEPARTMENT OF DEFENSE Duty-Free 

Entry to be claimed pursuant to Section 

XXII, Chapter 98, Subchapter VIII, Item 

9808.00.30 of the Harmonized Tariff 

Schedule of the United States. Upon 

arrival of shipment at the appropriate 

port of entry, District Director of 

Customs, please release shipment under 

19 CFR part 142 and notify Commander, 

Defense Contract Management Agency 

(DCMA), St. Louis, MO, ATTN: Duty 

Free Entry Team, 1222 Spruce Street, 

Room 9.300, St. Louis, MO 63103–2812, 

for execution of Customs Form 7501, 

7501A, or 7506 and any required dutyfree entry certificates.’’ 

* * * * * 

252.227–7013 [Amended] 

■ 38. Amend section 252.227–7013 in 

the Alternate II clause by— 

■ a. Removing the clause date ‘‘(MAR 

2011)’’ and adding ‘‘(MAR 2022)’’ in its 

place; and 

■ b. In paragraph (a)(17), removing ‘‘10 

U.S.C. 7317’’ and adding ‘‘10 U.S.C. 

8687’’ in its place. 

252.227–7015 [Amended] 

■ 39. Amend section 252.227–7015 in 

the Alternate I clause by— 

■ a. Removing the clause date ‘‘(DEC 

2011)’’ and adding ‘‘(MAR 2022)’’ in its 

place; and 

■ b. In paragraph (a)(6), removing ‘‘10 

U.S.C. 7317’’ and adding ‘‘10 U.S.C. 

8687’’ in its place. 

[FR Doc. 2022–05535 Filed 3–17–22; 8:45 am] 

BILLING CODE 5001–06–P 


jspears on DSK121TN23PROD with RULES2