20 July 1998 Source: http://www.access.gpo.gov/su_docs/aces/aaces002.html ------------------------------------------------------------------------- [Federal Register: July 20, 1998 (Volume 63, Number 138)] [Notices] [Page 38815-38816] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr20jy98-56] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF DEFENSE Waiver of 10 U.S.C. 2534 for Certain Defense Items Produced in the United Kingdom AGENCY: Department of Defense, (DoD). ACTION: Notice of waiver of 10 U.S.C. 2534 for certain defense items produced in the United Kingdom. ----------------------------------------------------------------------- SUMMARY: The Under Secretary of Defense (Acquisition and Technology) is waiving the limitation of 10 U.S.C. 2534 for certain defense items produced in the United Kingdom (UK). 10 U.S.C. 2534 limits DoD procurement of certain items to sources in the national technology and industrial base. The waiver will permit procurement of items enumerated from sources in the UK. EFFECTIVE DATE: This waiver is effective for one year, beginning August 4, 1998. FOR FURTHER INFORMATION CONTACT: Mr. Walter Henderson, OUSD (A&T), Director of Defense Procurement, Foreign Contracting, Room 3C762, 3060 [[Page 38816]] Defense Pentagon, Washington, DC 20301-3060, telephone (703) 697-9351. SUPPLEMENTARY INFORMATION: Subsection (a) of 10 U.S.C. 2534 provided that the Secretary of Defense may procure the items listed in that subsection only if the manufacturer of the item is part of the national technology and industrial base. Subsection (i) of 10 U.S.C. 2534 authorizes the Secretary of Defense to exercise the waiver authority in subsection (d), on the basis of the applicability of paragraph (2) or (3) of that subsection, only if the waiver is made for a particular item listed in subsection (a) and for particular foreign country. Subsection (d) authorizes a waiver if the Secretary determines that application of the limitation ``would impede the reciprocal procurement of defense items under a memorandum of understanding providing for reciprocal procurement of defense items'' and if he determines that ``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.'' The Secretary of Defense has delegated the waiver authority of 10 U.S.C. 2534(d) to the Under Secretary of Defense (Acquisition and Technology). DoD has a reciprocal procurement Memorandum of Understanding (MOU) with the UK that was signed on December 4, 1994. The Under Secretary of Defense (Acquisition and Technology) finds that UK does not discriminate against defense items produced in the United States to a greater degree that the United States discriminates against defense items produced in the UK, and also finds that application of the limitation in 10 U.S.C. 2534 against defense items produced in the UK would impede the reciprocal procurement of defense items under the MOU. Under the authority of 10 U.S.C. 2534, the Under Secretary of Defense (Acquisition and Technology) has determined that application of the limitation of 10 U.S.C. 2534(a) to the procurement of any defense item produced in the UK that is listed below would impede the reciprocal procurement of defense items under the MOU with the UK. On the basis of the foregoing, the Under Secretary of Defense (Acquisition and Technology) is waiving the limitation in 10 U.S.C. 2534(a) for procurements of any defense item listed below that is produced in the UK. This waiver applies only to the limitations in 10 U.S.C. 2534(a). It does not apply to any other limitation, including sections 8016 and 8073 of the National Defense Appropriations Act for Fiscal Year 1998 (Pub. L. 105-56). This waiver applies to procurements under solicitations issued on or after the effective date of this waiver. For contracts entered into prior to the effective date of this waiver, this waiver applies to procurements of the defense items listed below under-- (1) Subcontracts entered into on or after such effective date, provided the prime contract is modified to provide the Government adequate consideration such as lower cost or improve performance; and (2) Options that are exercised after such effective date if the option prices are adjusted for any reason other than the application of the waiver, and if the contract is modified to provide the Government adequate consideration such as lower cost or improved performance. List of Items to Which This Waiver Applies 1. Air circuit breakers. 2. Welded shipboard anchor and mooring chain with a diameter of four inches or less. 3. Gyrocompasses. 4. Electronic navigation chart systems. 5. Steering controls. 6. Pumps. 7. Propulsion and machinery control systems. 8. Totally enclosed lifeboats. 9. Ball and roller bearings. Michele P. Peterson, Executive Editor, Defense Acquisition Regulations Council. [FR Doc. 98-19157 Filed 7-17-98; 8:45 am] BILLING CODE 5000-04-M