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[Federal Register: June 8, 2010 (Volume 75, Number 109)]
[Rules and Regulations]               
[Page 32640-32641]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08jn10-24]                         

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DEPARTMENT OF DEFENSE

Defense Acquisition Regulations System

48 CFR Part 225

[DFARS Case 2009-D022]

 
Defense Federal Acquisition Regulation Supplement; Finland-- 
Public Interest Exception to the Buy American Act

AGENCY: Defense Acquisition Regulations System; Department of Defense 
(DoD).

ACTION: Final rule.

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SUMMARY: DoD is issuing this final rule amending the Defense Federal 
Acquisition Regulation Supplement (DFARS) to reflect a determination of 
the Secretary of Defense that it is inconsistent with the public 
interest to apply the restrictions of the Buy American Act to the 
acquisition of articles, materials, and supplies produced or 
manufactured in Finland.

DATES: Effective Date: June 8, 2010.

FOR FURTHER INFORMATION CONTACT: Ms. Amy Williams, 703-602-0328.

SUPPLEMENTARY INFORMATION:

A. Background

    A reciprocal defense procurement memorandum of understanding (RDP 
MOU) between the government of Finland and the Government of the United 
States has been in effect since 1991. The governments have negotiated 
and concluded a new RDP MOU to provide an updated basis for continued 
cooperation in defense procurement. The RDP MOU provides that, in 
relation to defense procurement, each country will accord to the 
industries of the other country treatment no less favorable than that 
accorded to its own industries, to the extent consistent with its laws, 
regulations, and international obligations.
    The reciprocal opportunities that the RDP MOU affords to the 
governments and their defense industries enhances mutual military 
readiness and promotes standardization and interoperability of 
equipment between the armed forces of the two countries. Therefore, DoD 
has made a blanket determination that it is inconsistent with the 
public interest to apply the restrictions of the Buy American Act to 
the acquisition of articles, materials, and supplies produced or 
manufactured in Finland.
    DoD is issuing this rule as a final rule because this rule does not 
have a significant effect beyond the internal operating procedures of 
DoD and does not have a significant cost or administrative impact on 
contractors or offerors. Therefore, public comment is not required in 
accordance with 41 U.S.C. 418b(a).
    ``Qualifying country'' is defined at 225.003(10). The status as a 
qualifying country entitles these countries to various benefits, both 
as a matter of DoD policy and as legislated by Congress. The evaluation 
procedures at DFARS subpart 225.5 treat all qualifying country end 
products equally. Finland is a qualifying country, as listed at 
225.003(10), entitled to all these benefits. However, at DFARS 225.872-
1, the qualifying countries are divided into two lists. Most are listed 
in paragraph (a), but a few are listed in paragraph (b). For the 
countries in paragraph (a), DoD has already made a blanket

[[Page 32641]]

determination of the inapplicability of the Buy American Act to the 
acquisition of end products from that country. There is only one effect 
of a country being listed in paragraph (b). Although the evaluation 
procedures are the same, regardless of which paragraph a country is 
listed in, if an end product is from a country listed in paragraph (b), 
when purchasing the end product, the contracting officer has to prepare 
an individual determination and finding that the end product is exempt 
from application of the Buy American Act. Over time, the qualifying 
countries in paragraph (b) are moved to paragraph (a) when all the 
conditions for arriving at a blanket determination are met.
    This final rule implements the recent blanket determination by 
USD(AT&L) at DFARS 225.872-1 by removing Finland from the list of 
qualifying countries in paragraph (b) and adding Finland to the list of 
qualifying countries in paragraph (a). This means that the contracting 
officer no longer needs to prepare an individual determination and 
findings when making an award to an offeror of an end product from 
Finland. However, since Finland is a qualifying country, this was a 
routine paperwork requirement, and the removal of this requirement only 
impacts the internal operating procedures of the Government.
    This rule was subject to Office of Management and Budget review 
under Executive Order 12866, dated September 30, 1993.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act does not apply to this rule. This 
final rule does not constitute a significant DFARS revision within the 
meaning of FAR 1.501 and public comment is not required in accordance 
with 41 U.S.C. 418b(a).

C. Paperwork Reduction Act

    This rule does not impose any new 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 225

    Government procurement.

Ynette R. Shelkin,
Editor, Defense Acquisition Regulations System.

0
Therefore, 48 CFR part 225 is amended as follows:

PART 225--FOREIGN ACQUISITION

0
1. The authority citation for 48 CFR part 225 continues to read as 
follows:

    Authority: 41 U.S.C. 421 and 48 CFR chapter 1.

0
2. Section 225.872-1 is amended by revising paragraphs (a) and (b) to 
read as follows:

225.872-1  General.

    (a) As a result of memoranda of understanding and other 
international agreements, DoD has determined it inconsistent with the 
public interest to apply restrictions of the Buy American Act or the 
Balance of Payments Program to the acquisition of qualifying country 
end products from the following qualifying countries:

    Australia
    Belgium
    Canada
    Denmark
    Egypt
    Federal Republic of Germany
    Finland
    France
    Greece
    Israel
    Italy
    Luxembourg
    Netherlands
    Norway
    Portugal
    Spain
    Sweden
    Switzerland
    Turkey
    United Kingdom of Great Britain and Northern Ireland.

    (b) Individual acquisitions of qualifying country end products from 
the following qualifying country may, on a purchase-by-purchase basis 
(see 225.872-4), be exempted from application of the Buy American Act 
and the Balance of Payments Program as inconsistent with the public 
interest: Austria
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[FR Doc. 2010-13526 Filed 6-7-10; 8:45 am]
BILLING CODE 5001-08-P
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