[Federal Register: June 6, 2000 (Volume 65, Number 109)]
[Rules and Regulations]
[Page 36027-36028]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06jn00-29]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 25 and 52
[FAC 97-18; FAR Case 1999-008; Item VII]
RIN 9000-AI54
Federal Acquisition Regulation; Restrictions on Acquisitions from
Yugoslavia and Afghanistan
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: The Civilian Agency Acquisition Council and the Defense
Acquisition Regulations Council (Councils) have agreed on a final rule
amending the Federal Acquisition Regulation (FAR) to implement two
Executive orders, as modified by Office of Foreign Assets Control
(OFAC) General Licenses Numbers 2 and 4. These Executive orders
prohibit the importation into the United States of any goods or
services from Serbia (excluding the territory of Kosovo) or the
territory of Afghanistan controlled by the Taliban.
DATES: Effective Date: July 6, 2000.
Applicability Date: The FAR, as amended by this rule, is applicable
to solicitations issued on or after July 6, 2000.
FOR FURTHER INFORMATION CONTACT: The FAR Secretariat, Room 4035, GS
Building, Washington, DC, 20405, (202) 501-4755, for information
pertaining to status or publication schedules. For clarification of
content, contact Mr. Paul Linfield, Procurement Analyst, at (202) 501-
1757. Please cite FAC 97-18, FAR case 1999-008.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule amends FAR Subpart 25.7, section 25.1103, and the
clauses at FAR 52.212-5, Contract Terms and Conditions Required to
Implement Statutes or Executive Orders--Commercial Items, FAR 52.213-4,
Terms and Conditions--Simplified Acquisitions (Other Than Commercial
Items), and FAR 52.225-13, Restrictions on Foreign Purchases, to
implement Executive Order 13121 of April 30, 1999, Blocking Property
and Prohibiting Transactions With the Taliban; and Executive Order
13129 of July 4, 1999, Blocking Property of the Governments of the
Federal Republic of Yugoslavia (Serbia and Montenegro), the Republic of
Serbia, and the Republic of Montenegro, and Prohibiting Trade
Transactions Involving the Federal Republic of Yugoslavia (Serbia and
Montenegro) in Response to the Situation in Kosovo. These Executive
orders, as modified by OFAC General Licenses Numbers 2 and 4, prohibit
the importation into the United States of any goods or services from
Serbia (excluding the territory of Kosovo) or the territory of
Afghanistan controlled by the Taliban. As a matter of policy, the
Government does not generally acquire, even for overseas use, supplies
or services that cannot be imported lawfully into the United States.
DoD, GSA, and NASA published a proposed rule in the Federal
Register on December 1, 1999 (64 FR 67446). Four respondents submitted
comments. The Councils considered all comments in the formulation of
this final rule. This final rule differs from the proposed rule as
follows:
Limits the restriction to Serbia (excluding the territory
of Kosovo), rather than Serbia and Montenegro, based on OFAC General
Licenses Numbers 2 and 4. General License No. 2 was issued by OFAC on
May 5, 1999, and relates to trade transactions with Montenegro. General
License No. 4 was issued by OFAC on August 17, 1999, and relates to
trade transactions involving the territory of Kosovo.
Adds an exception at FAR 25.701(a)(2) permitting the
contracting officer, in unusual circumstances, to acquire for use
outside the United States supplies and services restricted in
25.701(a)(1).
This rule was not subject to Office of Management and Budget review
under Section 6(b) of Executive Order 12866, Regulatory Planning and
Review, dated September 30, 1993. This rule is not a major rule under 5
U.S.C. 804.
B. Regulatory Flexibility Act
The Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration certify that this
final rule will not have a significant economic impact on a substantial
number of small entities within the
[[Page 36028]]
meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq.,
because it only applies to acquisition of items from Serbia or
Afghanistan.
C. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because the changes to
the FAR do not impose 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 25 and 52
Government procurement.
Dated: May 26, 2000.
Edward C. Loeb,
Director, Federal Acquisition Policy Division.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 25 and 52 as set
forth below:
1. The authority citation for 48 CFR parts 25 and 52 continues to
read as follows:
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 25--FOREIGN ACQUISITION
2. Amend section 25.701 by revising paragraph (a) to read as
follows:
25.701 Restrictions.
(a)(1) The Government generally does not acquire supplies or
services that cannot be imported lawfully into the United States.
Therefore, except as provided in paragraph (a)(2) of this section, even
for overseas use, agencies and their contractors and subcontractors
must not acquire any supplies or services originating from sources
within, or that were located in or transported from or through
(i) Cuba (31 CFR part 515);
(ii) Iran (31 CFR part 560);
(iii) Iraq (31 CFR part 575);
(iv) Libya (31 CFR part 550);
(v) North Korea (31 CFR part 500);
(vi) Sudan (31 CFR part 538);
(vii) Territory of Afghanistan controlled by the Taliban (Executive
Order 13129 of July 4, 1999, Blocking Property and Prohibiting
Transactions With the Taliban); or
(viii) Serbia, excluding the territory of Kosovo (Executive Order
13121 of April 30, 1999, Blocking Property of the Governments of the
Federal Republic of Yugoslavia (Serbia and Montenegro), the Republic of
Serbia, and the Republic of Montenegro, and Prohibiting Trade
Transactions Involving the Federal Republic of Yugoslavia (Serbia and
Montenegro) in Response to the Situation in Kosovo).
(2)(i) Unless agency procedures require a higher level of approval,
the contracting officer may, in unusual circumstances, acquire for use
outside the United States supplies and services restricted in paragraph
(a)(1) of this section. Examples of unusual circumstances are an
emergency or when the supplies or services are not otherwise available
and a substitute is not acceptable.
(ii) The contracting officer must provide documentation in the
contract file whenever this exception is used.
* * * * *
3. Revise section 25.702 to read as follows:
25.702 Source of further information.
Refer questions concerning the restrictions in 25.701 to the
Department of the Treasury, Office of Foreign Assets Control,
Washington, D.C. 20220 (Telephone (202) 622-2520).
4. Amend section 25.1103 by revising paragraph (a) to read as
follows:
25.1103 Other provisions and clauses.
(a) Restrictions on certain foreign purchases. Insert the clause at
52.225-13, Restrictions on Certain Foreign Purchases, in solicitations
and contracts with a value exceeding $2,500, unless an exception
applies (see 25.701(a)(2)).
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
5. Amend section 52.212-5 by--
a. Revising the date of the clause and paragraph (a);
b. In the first sentence of the introductory text of paragraphs
(b), (c), and (d), by removing ``agrees to'' and adding ``shall'' in
their place; and
c. Removing paragraph (b)(21) and redesignating paragraphs (b)(19)
and (b)(20) as (b)(20) and (b)(21), respectively; and adding a new
paragraph (b)(19) to read as follows:
52.212-5 Contract Terms and Conditions Required to Implement Statutes
or Executive Orders--Commercial Items.
* * * * *
Contract Terms and Conditions Required to Implement Statutes or
Executive Orders--Commercial Items (July 2000)
(a) The Contractor shall comply with the following FAR clauses,
which are incorporated in this contract by reference, to implement
provisions of law or executive orders applicable to acquisitions of
commercial items:
(1) 52.222-3, Convict Labor (E.O. 11755).
(2) 52.233-3, Protest after Award (31 U.S.C. 3553).
(b) * * *
__ ; (19) 52.225-13, Restriction on Certain Foreign Purchases
(E.O. 12722, 12724, 13059, 13067, 13121, and 13129).
* * * * *
6. Amend section 52.213-4 by revising the date of the clause and
paragraph (a)(1)(ii) to read as follows:
52.213-4 Terms and Conditions--Simplified Acquisitions (Other Than
Commercial Items).
* * * * *
Terms and Conditions--Simplified Acquisitions (Other Than Commercial
Items) (July 2000)
(a) * * *
(1) * * *
* * * * *
(ii) 52.225-13, Restrictions on Certain Foreign Purchases (July
2000) (E.O.'s 12722, 12724, 13059, 13067, 13121, and 13129).
* * * * *
7. Amend section 52.225-13 by revising the date of the clause and
the last sentence of paragraph (a) to read as follows:
52.225-13 Restrictions on Certain Foreign Purchases.
* * * * *
Restrictions on Certain Foreign Purchases (July 2000)
(a) * * * Those countries are Cuba, Iran, Iraq, Libya, North
Korea, Sudan, the territory of Afghanistan controlled by the
Taliban, and Serbia (excluding the territory of Kosovo).
* * * * *
[FR Doc. 00-13823 Filed 6-1-00; 4:01 pm]
BILLING CODE 6820-EP-P