DoD Seal DoD 50 Year Seal

OFFICE OF THE SECRETARY OF DEFENSE

1000 DEFENSE PENTAGON
WASHINGTON, DC 20301-1000
November 15, 1996

 
ACQUISITION AND
 TECHNOLOGY

DP(DAR)

                                                          In reply refer to
                                                          DFARS Case: 96-D023/96-D331
                                                          D. L. 96-019



MEMORANDUM FOR	DIRECTORS OF DEFENSE AGENCIES
                    DEPUTY FOR ACQUISITION AND BUSINESS MANAGEMENT,
                      ASN(RD&A)/ABM
                    DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
                      (CONTRACTING), SAF/AQC
                    DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP
                    DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS
                      AGENCY



SUBJECT:    Foreign Machine Tools, Powered and Non-Powered Valves, and Ball
            and Roller Bearings


     We have amended the Defense Federal Acquisition Regulation Supplement (DFARS)
to implement the expiration on October 1, 1996, of the restriction on machine
tools and powered and non-powered valves at 10 U.S.C 2534 and to implement
Section 8082 of the Fiscal Year 1997 Defense Appropriations Act (Public Law
104-208).  Section 8082 extends applicability of the fiscal year 1996
restriction on procurement of foreign ball and roller bearings to acquisitions
using fiscal year 1997 funds.


     The attached final DFARS rule is effective immediately and will be included
in a future Defense Acquisition Circular.





                                                    /s/

                                             Eleanor R. Spector
                                             Director, Defense Procurement

Attachment

cc: DSMC, Ft. Belvoir


DFARS Case 96-D023,
Foreign Machine Tools and Powered and Non-Powered Valves
Final Rule

DFARS Case 96-D331,
Ball and Roller Bearings
Final Rule

PART 212 -- ACQUISITION OF COMMERICAL ITEMS

* * * * *

SUBPART 212.5 -- APPLICABILITY OF CERTAIN LAWS TO THE ACQUISITION OF COMMERICAL ITEMS

* * * * *

212.504 Applicability of certain laws to subcontracts for the acquisition of commercial items.

(a) The following laws are not applicable to subcontracts at any tier for the acquisition of commercial items or commercial components:

* * * * *

(xviii) 10 U.S.C. 2534, Miscellaneous Limitations on the Procurement of Goods Other Than United States Goods.

(xix) [Reserved].

(xx) [Reserved].

(xxi) [Reserved].

* * * * *

PART 225 -- FOREIGN ACQUISITION

* * * * *

SUBPART 225.70 - AUTHORIZATION ACTS, APPROPRIATIONS ACTS, AND OTHER STATUTORY RESTRICTIONS ON FOREIGN PURCHASES

* * * * *

225.7004 [Reserved].

* * * * *

225.7005 [Waiver of certain restrictions.
Where provided for elsewhere in this subpart, the restrictions on certain foreign purchases under 10 U.S.C. 2534 may be waived as follows:

(a) The head of the contracting activity may waive the restriction on a case-by-case basis upon execution of a determination and findings that any of the following applies:

(1) The restriction would cause unreasonable delays.

(2) United States producers of the item would not be jeopardized by competition from a foreign country, and that country does not discriminate against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country.

(3) Application of the restriction would impede cooperative programs entered into between DoD and a foreign country, and that country does not discriminate against defense items produced in the United States to a greater degree than the United States discriminates against defense items produced in that country.

(4) Satisfactory quality items manufactured in the United States or Canada are not available.

(5) Application of the restriction would result in the existence of only one source for the item in the United States or Canada.

(6) Application of the restriction is not in the national security interests on the United States.

(7) Application of the restriction would adversely affect a U.S. company.

(b)The restriction is waived when it would cause unreasonable costs. The cost of the item of U.S. or Canadian origin is unreasonable if it exceeds 150 percent of the offered price, inclusive of duty, of items which are not of U.S. or Canadian origin is unreasonable if it exceeds 150 percent of the offered price, inclusive of duty, of items which are not of U.S. or Canadian origin.]

* * * * *

225.7007 Restriction on acquisition of foreign buses.

* * * * *

225.7007-4 Waiver.
The waiver criteria at 225.[7005] apply to this restriction.

* * * * *

225.7010 Restriction on certain chemical weapons antidote.

* * * * *

225.7010-3 Waiver.
The waiver criteria at 225.[7005] apply to this restriction.

* * * * *

225.7016 Restriction on air circuit breakers for naval vessels.

* * * * *

225.7016-3 Waiver.
The waiver criteria at 225.[7005] apply to this restriction.

* * * * *

225.7019 Restrictions on ball and roller bearings.

225.7019-1 Restrictions.

(a) In accordance with 10 U.S.C. 2534, through fiscal year 2000, do not acquire ball and roller bearings or bearing components which are not manufactured in the United States or Canada.

(b) In accordance with Section 8099 of Pub. L 104-61 [and similar sections in subsequent Defense appropriations acts], do not use fiscal year 1996 [or subsequently appropriated] funds to acquire ball and roller bearings other than those produced by a domestic source and of domestic origin, i.e., bearings and bearing components manufactured in the United States or Canada.

* * * * *

225.7022 Restrictions on totally enclosed lifeboat survival systems.

* * * * *

225.7022-3 Waiver.
The waiver criteria at 225.[7005] apply only to the restriction of 225.70022-1(b).

* * * * *

PART 252 - SOLICITATION PROVISIONS AND CONTRACT CLAUSES

* * * * *

252.212-7001 Contract Terms and Conditions Required to Implement Statutes or Executive Orders Applicable to Defense Acquisitions of Commercial Items.
As prescribed in 212.301(f)(iii), use the following clause:

CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERS APPLICABLE TO DEFENSE ACQUISITIONS OR COMMERCIAL ITEMS ([NOV 1996])

(a) * * *

(b) The Contractor agrees to comply with any clause that is checked on the following list of DFARS 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.

* * * * *

252.225-7017 [Reserved].