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TITLE 48 - FEDERAL ACQUISITION REGULATIONS SYSTEM
CHAPTER 2 - DEFENSE ACQUISITION REGULATIONS SYSTEMS, DEPARTMENT OF DEFENSE
SUBCHAPTER D - SOCIOECONOMIC PROGRAMS
PART 225 - FOREIGN ACQUISITION
225.7009 - 3 - Waiver.
(a)(1) The waiver criteria at 225.7003(a)(1) apply to the restriction of 225.70091(a).
(2) The Under Secretary of Defense (Acquisition, Technology, and Logistics) has waived the restriction of 225.70091(a) for ball and roller bearings manufactured in the United Kingdom. See 225.7003(b) for applicability.
(b) The head of the contracting activity may waive the restriction in 225.70091(a) (1) Upon execution of a determination and findings that (i) No domestic (U.S. or Canadian) bearing manufacturer meets the requirement; (ii) It is not in the best interests of the United States to qualify a domestic bearing to replace a qualified nondomestic bearing.
(A) This determination shall be based on a finding that the qualification of a domestically manufactured bearing would cause unreasonable costs or delay.
(B) A finding that a cost is unreasonable should take into consideration DoD policy to assist the domestic industrial mobilization base.
(C) Contracts should be awarded to domestic bearing manufacturers to increase their capability to reinvest and become more competitive; (iii) Application of the restriction would result in the existence of only one source for the item in the United States or Canada; (iv) Application of the restriction is not in the national security interests of the United States; or (v) Application of the restriction would adversely affect a U.S.
company.
(2) If the acquisition is for an amount less than the simplified acquisition threshold and simplified acquisition procedures are being used.
(3) For multiyear contracts or contracts exceeding 12 months, except those for miniature and instrument ball bearings, if (i) The head of the contracting activity executes a determination and findings in accordance with paragraph (b)(1) of this subsection; (ii) The contractor submits a written plan for transitioning from the use of nondomestic to domestically manufactured bearings; (iii) The contractor's written plan (A) States whether a domestically manufactured bearing can be qualified, at a reasonable cost, for use during the course of the contract period; (B) Identifies any bearings that are not domestically manufactured, their application, and source of supply; and (C) Describes, including cost and timetable, the transition to a domestically manufactured bearing (the timetable for the transition should normally take no longer than 24 months from the date the waiver is granted); and (iv) The contracting officer accepts the contractor's plan and incorporates it into the contract.
(4) For miniature and instrument ball bearings, only if the contractor agrees to acquire a like quantity and type of domestic manufacture for nongovernmental use.
(c) The Secretary of the department responsible for acquisition or, for the Defense Logistics Agency, the Component Acquisition Executive, may waive the restriction in 225.70091(b), on a case-by-case basis, by certifying to the House and Senate Committees on Appropriations that (1) Adequate domestic supplies are not available to meet DoD requirements on a timely basis; and (2) The acquisition must be made in order to acquire capability for national security purposes.
[68 FR 15627, Mar. 31, 2003, as amended at 70 FR 57191, Sept. 30, 2005]
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