[Federal Register: December 18, 2001 (Volume 66, Number 243)]
[Rules and Regulations]
[Page 65349-65351]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18de01-13]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 2, 25, and 52
[FAC 2001-02; FAR Case 2000-015;
Item I]
RIN 9000-AJ24
Federal Acquisition Regulation; Definitions of ``Component'' and
``End Product''
AGENCIES: Department of Defense (DoD), General ServicesAdministration
(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 restore the unique
(Part 25) definitions of ``component'' and ``end product'' for
acquisition of supplies. In addition, the Councils have made minor
revisions to the definitions of ``component'' and ``cost of
components'' for acquisition of construction.
DATES: Effective Date: February 19, 2002.
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 Ms. Cecelia L. Davis, Procurement Analyst, at (202)
219-0202. Please cite FAC 2001-02, FAR case 2000-015.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule restores unique definitions of ``component'' and
``end
[[Page 65350]]
product'' at FAR 25.003, and amends the definitions at FAR 2.101 and
associated clauses 52.225-1, Buy American Act--Balance of Payments
Program--Supplies; 52.225-3, Buy American Act--North American Free
Trade Agreement--Israeli Trade Act--Balance of Payments Program; and
52.225-5, Trade Agreements, to comply with these definitions. The final
rule under FAR case 97-024, Foreign Acquisition (Part 25 Rewrite),
published in the Federal Register at 64 FR 72416, December 27, 1999,
removed the unique Part 25 definitions of ``component'' and ``end
product,'' applying standard definitions in Part 2 to Part 25 and
associated clauses (other than clauses for construction). The Councils
did not intend to make any substantive change to the FAR by these
amendments. Because the Councils received comments addressing potential
unintended substantive changes to the FAR that might result from these
amendments, the Councils are reverting to the original definitions,
with minor editorial corrections.
In addition, this rule revises the definition of ``components'' in
FAR clauses 52.225-9, Buy American Act--Balance of Payments Program--
Construction Materials, and 52.225-11, Buy American Act--Balance of
Payments Program--Construction Materials under Trade Agreements, to a
definition of the singular term ``component'' and revises the
definition of ``cost of components'' in these clauses to address
components of construction material, rather than components of an end
product (which is not applicable to construction).
This is not a significant regulatory action, and therefore, was not
subject to 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 final rule does not constitute a significant FAR revision
within the meaning of FAR 1.501 and Public Law 98-577, and publication
for public comments is not required. However, the Councils will
consider comments from small entities concerning the affected FAR parts
2, 25, and 52 in accordance with 5 U.S.C. 610. Interested parties must
submit such comments separately and should cite 5 U.S.C. 601, et seq.
(FAC 2001-02, FAR case 2000-015), in correspondence.
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 2, 25, and 52
Government procurement.
Dated: December 5, 2001.
Al Matera,
Director, Acquisition Policy Division.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 2, 25, and 52 as
set forth below:
1. The authority citation for 48 CFR parts 2, 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 2--DEFINITIONS OF WORDS AND TERMS
2. Amend section 2.101 by revising the definitions ``Component''
and ``End product'' to read as follows:
2.101 Definitions.
* * * * *
Component means any item supplied to the Government as part of an
end item or of another component, except that for use in--
(1) Part 25, see the definition in 25.003;
(2) 52.225-1 and 52.225-3, see the definition in 52.225-1(a) and
52.225-3(a); and
(3) 52.225-9 and 52.225-11, see the definition in 52.225-9(a) and
52.225-11(a).
* * * * *
End product means supplies delivered under a line item of a
Government contract, except for use in part 25 and the associated
clauses at 52.225-1, 52.225-3, and 52.225-5, see the definitions in
25.003, 52.225-1(a), 52.225-3(a), and 52.225-5(a).
* * * * *
PART 25--FOREIGN ACQUISITION
3. In section 25.003 add, in alphabetical order, the definitions
``Component'' and ``End product''; and amend paragraph (1) of the
definition ``Cost of components'' by removing ``product'' and adding
``product or construction material'' in its place. The added text reads
as follows:
25.003 Definitions.
* * * * *
Component means an article, material, or supply incorporated
directly into an end product or construction material.
* * * * *
End product means those articles, materials, and supplies to be
acquired for public use.
* * * * *
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
4. Amend section 52.225-1 by revising the date of the clause and
the definitions ``Component'' and ``End product'' to read as follows:
52.225-1 Buy American Act--Balance of Payments Program--Supplies.
* * * * *
Buy American Act--Balance of Payments Program--Supplies (Feb
2002)
(a) * * *
Component means an article, material, or supply incorporated
directly into an end product.
* * * * *
End product means those articles, materials, and supplies to be
acquired under the contract for public use.
* * * * *
5. Amend section 52.225-3 by revising the date of the clause and
the definitions ``Component'' and ``End product'' to read as follows:
52.225-3 Buy American Act--North American Free Trade Agreement--
Israeli Trade Act--Balance of Payments Program.
* * * * *
Buy American Act--North American Free Trade Agreement--Israeli Trade
Act--Balance of Payments Program (Feb 2002)
(a) * * *
Component means an article, material, or supply incorporated
directly into an end product.
* * * * *
End product means those articles, materials, and supplies to be
acquired under the contract for public use.
* * * * *
6. Amend section 52.225-5 by revising the date of the clause and
the definition ``End product'' to read as follows:
52.225-5 Trade Agreements.
* * * * *
Trade Agreements (Feb 2002)
(a) * * *
End product means those articles, materials, and supplies to be
acquired under the contract for public use.
* * * * *
7. Amend section 52.225-9 by revising the date of the clause and
the definition ``Component''; and by
[[Page 65351]]
amending the definition ``Cost of components'' in paragraph (1) by
removing ``end product'' and adding ``construction material'' in its
place. The revised text reads as follows:
52.225-9 Buy American Act--Balance of Payments Program--Construction
Materials.
* * * * *
Buy American Act--Balance of Payments Program--Construction Materials
(Feb 2002)
(a) * * *
Component means an article, material, or supply incorporated
directly into a construction material.
* * * * *
8. Amend section 52.225-11 by revising the date of the clause and
the definition ``Component''; and by amending the definition ``Cost of
components'' in paragraph (1) by removing ``end product'' and adding
``construction material'' in its place. The revised text reads as
follows:
52.225-11 Buy American Act--Balance of Payments Program--Construction
Materials under Trade Agreements.
* * * * *
Buy American Act--Balance of Payments Program--Construction Materials
Under Trade Agreements (Feb 2002)
(a) * * *
Component means an article, material, or supply incorporated
directly into a construction material.
* * * * *
[FR Doc. 01-30538 Filed 12-17-01; 8:45 am]
BILLING CODE 6820-EP-P