20 July 1998
Source: http://www.access.gpo.gov/su_docs/aces/aaces002.html

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[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]

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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.

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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
