Je veux savoir à propos de…

khammond on DSKJM1Z7X2PROD with PROPOSALS

Federal Register / Vol. 86, No. 165 / Monday, August 30, 2021 / Proposed Rules 2018, and FY 2019 that had a foreign place of performance and were for construction. DoD awarded an average of 3,222 construction contracts with a foreign place of performance per year during FY 2017 through FY 2019. Of those construction contracts, approximately 65 were awarded to 32
unique small entities per year.
Data was also obtained from FPDS for FY 2017 through FY 2019 on awards valued over the micro-purchase threshold for supplies made in the United States. DoD awarded an average of 332,607 supply contracts per year during FY 2017 through FY 2019. Of those supply contracts, approximately 154,422 supply contracts were awarded to 13,480 unique small entities per year.
The rule will strengthen domestic preferences under the Buy American statute and provide small businesses the opportunity and incentive to deliver U.S. manufactured products from domestic suppliers. It is expected that this rule generally will benefit U.S.
small business manufacturers, including those of iron or steel. Small business manufacturers who do not already meet the increased domestic content requirements of this proposed rule may need to adjust their supply chains. DoD
does not have data on how many small business manufacturers may decide to make such adjustments.
This rule does not include any new reporting, recordkeeping, or other compliance requirements for small businesses. This rule only changes the definitions of domestic end product and domestic construction material and adds the definitions of predominantly of iron or steel or a combination of both and steel to conform the DFARS with the FAR
revisions as a result of E.O. 13881
implementation. Overall, the rule does not impose any additional compliance requirements on contractors or process procedures for the Government, other than to increase the percentages for use in the domestic content test applied to offers of manufactured end products.
The rule does not duplicate, overlap, or conflict with any other Federal rules.
There are no known significant alternative approaches to the proposed rule that would meet the requirements of E.O. 13881.
DoD invites comments from small business concerns and other interested parties on the expected impact of this rule on small entities.
DoD will also consider comments from small entities concerning the existing regulations in subparts affected by this rule in accordance with 5 U.S.C.
610. Interested parties must submit such comments separately and should cite 5

VerDate Sep<11>2014

16:31 Aug 27, 2021

Jkt 253001

U.S.C. 610 DFARS Case 2019D045, in correspondence.
VII. Paperwork Reduction Act The rule does not contain any information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act 44 U.S.C.
chapter 35.
List of Subjects in 48 CFR Parts 225 and 252
Government procurement.
Jennifer D. Johnson, Editor/Publisher, Defense Acquisition Regulations System.

Therefore, 48 CFR parts 225 and 252
are proposed to be amended as follows:
1. The authority citation for parts 225
and 252 continues to read as follows:
Authority: 41 U.S.C. 1303 and 48 CFR
chapter 1.

PART 225FOREIGN ACQUISITION
2. Amend section 225.003 by:
a. Revising the definition of Domestic end product;
b. Removing the definition Qualifying country component and qualifying country end product; and c. Adding definitions for Qualifying country component and Qualifying country end product in alphabetical order.
The revision and additions read as follows:

225.003

Definitions.

Domestic end product means 1 For an end product that does not consist wholly or predominantly of iron or steel or a combination of both i An unmanufactured end product mined or produced in the United States;
or ii An end product manufactured in the United States if A The cost of its qualifying country components and its components that are mined, produced, or manufactured in the United States exceeds 55 percent of the cost of all its components. The cost of components includes transportation costs to the place of incorporation into the end product and U.S. duty whether or not a duty-free entry certificate is issued. Components of unknown origin are treated as foreign. Scrap generated, collected, and prepared for processing in the United States is considered domestic. A component is considered to have been mined, produced, or manufactured in the United States regardless of its source in fact if the end product in which it is incorporated
PO 00000

Frm 00029

Fmt 4702

Sfmt 4702

48373

is manufactured in the United States and the component is of a class or kind for which the Government has determined that 1 Sufficient and reasonably available commercial quantities of a satisfactory quality are not mined, produced, or manufactured in the United States; or 2 It is inconsistent with the public interest to apply the restrictions of the Buy American statute; or B The end product is a commercially available off-the-shelf COTS item; or 2 For an end product that consists wholly or predominantly of iron or steel or a combination of both, an end product manufactured in the United States, if the cost of iron and steel not produced in the United States or a qualifying country constitutes less than 5 percent of the cost of all the components used in the end product produced in the United States or a qualifying country means that all manufacturing processes of the iron or steel must take place in the United States or a qualifying country, except metallurgical processes involving refinement of steel additives. The cost of iron and steel not produced in the United States or a qualifying country includes but is not limited to the cost of iron or steel mill products such as bar, billet, slab, wire, plate, or sheet, castings, or forgings, not produced in the United States or a qualifying country, utilized in the manufacture of the end product and a good faith estimate of the cost of all iron or steel components not produced in the United States or a qualifying country, excluding COTS fasteners. Iron or steel components of unknown origin are treated as foreign. If the end product contains multiple components, the cost of all the materials used in such end product is calculated in accordance with the explanation of cost of components in paragraph 1iiA of this definition.

Qualifying country component means a component mined, produced, or manufactured in a qualifying country.
Qualifying country end product means 1 An unmanufactured end product mined or produced in a qualifying country; or 2 An end product manufactured in a qualifying country if i The cost of the following types of components exceeds 50 percent of the cost of all its components:
A Components mined, produced, or manufactured in a qualifying country.
B Components mined, produced, or manufactured in the United States.

E:FRFM30AUP1.SGM

30AUP1