57190 Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Rules and Regulations 

56A, Voluntary Industry Distributor 

Accreditation Program, establishes that 

civil aerospace parts distributors may 

not exceed the 24-month requirement if 

they were accredited prior to revision of 

the circular and that accredited 

distributors shall be audited at least 

once every 36 months. The Aviation 

Suppliers Association Quality System 

Standard ASA–100 requires an 

accreditation audit every 36 months and 

a surveillance audit during the 36- 

month period. The National Aerospace 

and Defense Contractors Accreditation 

Program (NADCAP)—Performance 

Review Institute (PRI) establishes 

product qualification to be generally 

valid for 3 years or as determined by the 

specific Qualified Products Group. 

In calendar year 2003, the year before 

the interim rule took effect, 62.8% of 

Defense Logistics Agency (DLA) 

contracts for currently identified 

aviation critical safety items were 

awarded to small businesses. During the 

first 8 months of calendar year 2005 (the 

year after the interim rule became 

effective), 62.9% of DLA contracts for 

critical safety items were awarded to 

small businesses. There has been no 

significant impact on contract awards to 

small businesses as a result of the 

DFARS rule. 

Regardless of whether the contractor 

or DoD designates an item as a critical 

safety item, the contractor is required to 

deliver conforming products. This is 

especially important when the 

consequences of item failure could be 

catastrophic. Small businesses that 

understand the design intent of a critical 

safety item, and the item’s application 

in the weapon system, its critical 

attributes, and its failure implications, 

should have high-performing 

manufacturing, supplier management, 

and quality control processes. While the 

contractor/OEM and DoD may have 

different methods of categorizing parts, 

the critical safety item designation is not 

expected to have a significant cost 

impact on small businesses with 

approved quality systems. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the rule does not 

impose any 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 209, 

217, and 246 

Government procurement. 

Michele P. Peterson, 

Editor, Defense Acquisition Regulations 

System. 

■ Accordingly, the interim rule 

amending 48 CFR parts 209, 217, and 

246, which was published at 69 FR 

55987 on September 17, 2004, is 

adopted as a final rule with the 

following changes: 

PART 209—CONTRACTOR 

QUALIFICATIONS 

■ 1. The authority citation for 48 CFR 

parts 209 and 246 continues to read as 

follows: 

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

Chapter 1. 

■ 2. Section 209.270–3 is amended by 

revising paragraph (a) to read as follows: 

209.270–3 Policy. 

(a) The head of the contracting 

activity responsible for procuring an 

aviation critical safety item may enter 

into a contract for the procurement, 

modification, repair, or overhaul of such 

an item only with a source approved by 

the head of the design control activity. 

* * * * * 

■ 3. Section 209.270–4 is amended by 

removing the introductory text and 

revising paragraph (a) to read as follows: 

209.270–4 Procedures. 

(a) The head of the design control 

activity shall—

(1) Identify items that meet the 

criteria for designation as aviation 

critical safety items. See additional 

information at PGI 209.270–4; 

(2) Approve qualification 

requirements in accordance with 

procedures established by the design 

control activity; and 

(3) Qualify and identify aviation 

critical safety item suppliers and 

products. 

* * * * * 

PART 246—QUALITY ASSURANCE 

■ 4. Section 246.407 is amended by 

revising paragraph (S–70) to read as 

follows: 

246.407 Nonconforming supplies or 

services. 

* * * * * 

(S–70) The head of the design 

control activity is the approval authority 

for acceptance of any nonconforming 

aviation critical safety items or 

nonconforming modification, repair, or 

overhaul of such items (see 209.270). 

Authority for acceptance of minor 

nonconformances in aviation critical 

safety items may be delegated as 

determined appropriate by the design 

control activity. See additional 

information at PGI 246.407. 

[FR Doc. 05–19462 Filed 9–29–05; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

48 CFR Part 219 

[DFARS Case 2005–D020] 

Defense Federal Acquisition 

Regulation Supplement; Extension of 

Partnership Agreement—8(a) Program 

AGENCY: Department of Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD has issued a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to reflect an extension in the 

expiration date of a partnership 

agreement between DoD and the Small 

Business Administration (SBA). The 

partnership agreement permits DoD to 

award contracts to 8(a) Program 

participants on behalf of SBA. 

EFFECTIVE DATE: September 30, 2005. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Deborah Tronic, Defense Acquisition 

Regulations Council, OUSD (AT&L) 

DPAP (DAR), IMD 3C132, 3062 Defense 

Pentagon, Washington, DC 20301–3062. 

Telephone (703) 602–0289; facsimile 

(703) 602–0350. Please cite DFARS Case 

2005–D020. 

SUPPLEMENTARY INFORMATION: 

A. Background 

By partnership agreement dated 

February 1, 2002, between the SBA and 

DoD, the SBA delegated to DoD its 

authority to enter into contracts under 

Section 8(a) of the Small Business Act 

(15 U.S.C. 637(a)). The expiration date 

of the partnership agreement has been 

extended from September 30, 2005, to 

September 30, 2006. This final rule 

amends DFARS 219.800 to reflect the 

extension. 

This rule was not subject to Office of 

Management and Budget review under 

Executive Order 12866, dated 

September 30, 1993. 

B. Regulatory Flexibility Act 

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 DoD. Therefore, 

publication for public comment is not 

Federal Register / Vol. 70, No. 189 / Friday, September 30, 2005 / Rules and Regulations 57191 

required. However, DoD will consider 

comments from small entities 

concerning the affected DFARS subpart 

in accordance with 5 U.S.C. 610. Such 

comments should cite DFARS Case 

2005–D020. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the rule does not 

impose any 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 219 

Government procurement. 

Michele P. Peterson, 

Editor, Defense Acquisition Regulations 

System. 

■ Therefore, 48 CFR part 219 is 

amended as follows: 

PART 219—SMALL BUSINESS 

PROGRAMS 

■ 1. The authority citation for 48 CFR 

part 219 continues to read as follows: 

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

Chapter 1. 

219.800 [Amended] 

■ 2. Section 219.800 is amended in 

paragraph (a), in the last sentence, by 

removing ‘‘2005’’ and adding in its 

place ‘‘2006’’. 

[FR Doc. 05–19456 Filed 9–29–05; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

48 CFR Part 225 

[DFARS Case 2005–D019] 

Defense Federal Acquisition 

Regulation Supplement; Defense 

Logistics Agency Waiver Authority 

AGENCY: Department of Defense (DoD). 

ACTION: Final rule. 

SUMMARY: DoD has issued a final rule 

amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to authorize the Defense 

Logistics Agency Component 

Acquisition Executive to waive 

domestic source restrictions on the 

acquisition of ball and roller bearings, 

when adequate domestic supplies are 

not available to meet DoD requirements 

on a timely basis. 

EFFECTIVE DATE: September 30, 2005. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Amy Williams, Defense Acquisition 

Regulations Council, OUSD (AT&L) 

DPAP (DAR), IMD 3C132, 3062 Defense 

Pentagon, Washington, DC 20301–3062. 

Telephone (703) 602–0328; facsimile 

(703) 602–0350. Please cite DFARS Case 

2005–D019. 

SUPPLEMENTARY INFORMATION: 

A. Background 

The annual DoD appropriations acts 

restrict the acquisition of ball and roller 

bearings to those produced by a 

domestic source and of domestic origin 

(Section 8064 of the Fiscal Year 2001 

DoD Appropriations Act (Public Law 

106–259) and similar sections in 

subsequent DoD appropriations acts). 

The appropriations acts provide that the 

Secretary of the military department 

responsible for the procurement may 

waive the restriction on a case-by-case 

basis by certifying in writing to the 

Committees on Appropriations of the 

House of Representatives and the 

Senate, that adequate domestic supplies 

are not available to meet DoD 

requirements on a timely basis, and that 

such an acquisition must be made in 

order to acquire capability for national 

security purposes. This final rule revises 

DFARS 225.7009–3(c) to delegate this 

waiver authority to the Defense 

Logistics Agency (DLA) Component 

Acquisition Executive, for DLA 

acquisitions that meet the specified 

criteria. 

This rule was not subject to Office of 

Management and Budget review under 

Executive Order 12866, dated 

September 30, 1993. 

B. Regulatory Flexibility Act 

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 DoD. Therefore, 

publication for public comment is not 

required. However, DoD will consider 

comments from small entities 

concerning the affected DFARS subpart 

in accordance with 5 U.S.C. 610. Such 

comments should cite DFARS Case 

2005–D019. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act does 

not apply because the rule does not 

impose any 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. 

Michele P. Peterson, 

Editor, Defense Acquisition Regulations 

System. 

■ Therefore, 48 CFR part 225 is 

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. 421 and 48 CFR 

Chapter 1. 

■ 2. Section 225.7009–3 is amended by 

revising paragraph (c) introductory text 

to read as follows: 

225.7009–3 Waiver. 

* * * * * 

(c) The Secretary of the department 

responsible for acquisition or, for the 

Defense Logistics Agency, the 

Component Acquisition Executive, may 

waive the restriction in 225.7009–1(b), 

on a case-by-case basis, by certifying to 

the House and Senate Committees on 

Appropriations that—

* * * * * 

[FR Doc. 05–19457 Filed 9–29–05; 8:45 am] 

BILLING CODE 5001–08–P 

DEPARTMENT OF DEFENSE 

48 CFR Parts 225, 229, and 252 

[DFARS Case 2004–D012] 

Defense Federal Acquisition 

Regulation Supplement; Prohibition of 

Foreign Taxation on U.S. Assistance 

Programs 

AGENCY: Department of Defense (DoD). 

ACTION: Interim rule with request for 

comments. 

SUMMARY: DoD has issued an interim 

rule amending the Defense Federal 

Acquisition Regulation Supplement 

(DFARS) to implement a statutory 

prohibition on foreign taxation under 

contracts funded by U.S. assistance 

programs. The rule addresses the 

responsibilities of the contractor and the 

contracting officer regarding the 

prohibition. 

DATES: This interim rule is effective 

September 30, 2005. Comments on the 

interim rule should be submitted in 

writing to the address shown below on 

or before November 29, 2005, to be 

considered in the formation of the final 

rule. 

ADDRESSES: You may submit comments, 

identified by DFARS Case 2004–D012, 

using any of the following methods: 

• Federal eRulemaking Portal: 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Defense Acquisition Regulations 

Web site: http://emissary.acq.osd.mil/ 

dar/dfars.nsf/pubcomm. Follow the 

instructions for submitting comments.