OFFICE OF THE UNDER SECRETARY OF DEFENSE

3000 DEFENSE PENTAGON

WASHINGTON DC 20301-3000

DP (DAR)

In reply refer to FAR Case: 97 -D321 D. L. 98-001

MEMORANDUM FOR DIRECTORS OF DEFENSE AGENCIES DEPUTY FOR ACQUISITION AND BUSINESS MANAGEMENT,

ASN (RD&A) lASH

DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE (CONTRACTING) SAF/AQC

DEPUTY ASSISTANT SECRETARY OF THE ARMY (PROCUREMENT) DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS AGENCY

SUBJECT: Waiver of Domestic Source Restrictions

We have amended the Defense Federal Acquisition Regulation Supplement (DFARS) at 225.872, 225.70, and 252.225 to implement Section 811 of the National Defense Authorization Act for Fiscal Year 1998 (Pub. L. 105-85). Section 811 limits the waiver authority provided in 10 U.S.C. 2534(d). Therefore, the waiver of the restrictions of 10 U.S.C. 2534(a), that was signed by the Under Secretary of Defense (Acquisition and Technology) on April 7, 1997, under the prior authority of 10 U.S.C. 2534(d), is ne longer applicable,

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

Eleanor N. Spector

Director, Defense Procurement

Attachment

DFARS Case 97-D321

Waiver of Domestic Source Restrictions

Interim Rule

PART 225 FOREIGN ACQUISITION

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225.872 Contracting with qualifying country sources.

225.872-1 General.

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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(a) may be waived as follows:

[(a)(1) The Under Secretary of Defense (Acquisition and Technology), without power of delegation, may waive the restriction for a particular item for a particular foreign country upon determination that-

(2) A notice of the determination to exercise the waiver authority must be published in the Federal Register and submitted to the congressional defense committees at least 15 days before the effective date of the waiver.

(3) Such waiver shall be in effect for a period not greater than 1 year.

([b])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]) Satisfactory quality items manufactured in the United States or Canada ace not available,

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

([4]) Application of the restriction is not in the national security interests of the United States.

([5]) Application of the restriction would adversely affect a U.S. company.

([c]) 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.

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225.7007 Restriction on acquisition of foreign buses.

225.7007-I Restriction.

In accordance with 10 U.S.C. 2534,[ ] do not acquires multi passenger motor vehicle

(bus) unless it is manufactured in the United States or [Canada].

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225.7007-3 Exceptions.

This restriction does not apply in any of the following circumstances:

225.7007-4 Waiver.

The waiver criteria at 225.7005[ ] apply to this restriction.

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225.7010 Restriction on certain chemical weapons antidote.

225.7010-1 Restriction.

In accordance with 10 U.S.C. 2534 and defense industrial mobilization requirements (see Subpart 208.72), do not acquire chemical weapons antidote contained in automatic injectors, or the components for such injectors, unless the [chemical weapons antidote] or component is manufactured in the United States or Canada by a company that-

225.7010-2 Exception.

[ ][T]he restriction of 225.7010-1 does not apply if [ ] [t]he acquisition is for an amount that does not exceed the simplified acquisition threshold[ ].

225.7010-3 Waiver.

The waiver criteria at 225.7005[ ] apply to this restriction.

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225.7016 Restriction on air circuit breakers for naval vessels.

225.7016 Restriction.

In accordance with 10 U.S.C. 2534[ ], do not acquire air circuit breakers for naval vessels unless they are manufactured in the United States or [ ][Canada].

225.706-2 Exceptions.

This restriction does not apply if-

(a) The acquisition is for an amount that does not exceed the simplified acquisition threshold; or

(b) Spare or repair parts are needed to support air circuit breakers manufactured [outside the United States and Canada]. Support includes the purchase of spare air circuit breakers where those from alternate sources are not interchangeable.

225.7016-3 Waiver.

The waiver criteria at 225.7005[ ] apply to this restriction.

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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 androller bearings or bearing components that are not manufactured in the United States or [Canada].

225.7019-3 Waiver.

225.7022 Restrictions on totally enclosed lifeboat survival systems.

225.7022-1 Restrictions.

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(b) In accordance with 10 U.S.C. 2534(a)(3)(B) [ ], do not purchase a totally enclosed lifeboat that is a component of a naval vessel, unless it is manufactured in the United States or [Canada]. In accordance with 10 U.S.C. 2534(h), this restriction may not be implemented through the use of a contract clause or

225.7022-2 Exceptions.

The restriction in 225.7022-1(b) does not apply if--

225.7022-3 Waiver.

The waiver criteria at 225.7005[ ] apply only to the restriction of 225.7022-1(b).

PART 252 SOLICITATION PROVISIONS AND CONTRACT CLAUSES

252.225-7016 Restriction on Acquisition of Ball and Roller Bearings.

As prescribed in 225.7019-4, use the following clause:

RESTRICTION ON ACQUISITION OF BALL AND ROLLER BEARINGS ([FEB 1998])

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(c) (1)The restriction in paragraph (b) of this clause does not apply to the extent that[ t]he end items or components containing ball or roller bearings are commercial items[. ]

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252.225-7029 Preference for United States or Canadian Air Circuit Breakers.

As prescribed in 225.7016-4, use the following clause:

PREFERENCE FOR UNITED STATES OR CANADIAN AIR

CIRCUIT BREAKERS ([FEB 1998])

(End of clause)