[Federal Register Volume 75, Number 109 (Tuesday, June 8, 2010)]
[Rules and Regulations]
[Pages 32640-32641]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-13526]



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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.





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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