Defense Federal Acquisition Regulation Supplement: Strategic and Critical Materials Stock Piling Act Reform (DFARS Case 2023-D014) (2024)

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Department of Defense
Defense Acquisition Regulations System
  1. 48 CFR Part 225
  2. [Docket DARS-2024-0024]
  3. RIN 0750-AL87

Defense Acquisition Regulations System, Department of Defense (DoD).

Final rule.

DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2023 that revises the name of the Strategic Materials Protection Board.

Effective August 15, 2024.

Kimberly Bass, telephone 703-717-3446.

I. Background

This final rule revises the DFARS to implement section 1411 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2023 (Pub. L. 117-263). Section 1411 repeals 10 U.S.C. 187, which established the Strategic Materials Protection Board, and amends section 10 of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h-1) to establish the Strategic and Critical Materials Board of Directors. Therefore, this final rule removes the name “Strategic Materials Protection Board” and inserts the new name “Strategic and Critical Materials Board of Directors” in the DFARS.

II. Publication of This Final Rule for Public Comment Is Not Required by Statute

The statute that applies to the publication of the Federal Acquisition Regulation (FAR) is 41 U.S.C. 1707, Publication of Proposed Regulations. Subsection (a)(1) of the statute requires that a procurement policy, regulation, procedure, or form (including an amendment or modification thereof) must be published for public comment if it relates to the expenditure of appropriated funds, and has either a significant effect beyond the internal operating procedures of the agency issuing the policy, regulation, procedure, or form, or has a significant cost or administrative impact on contractors or offerors. This final rule is not required to be published for public comment, because the rule only revises all references to the Strategic Materials Protection Board in the DFARS, with no impact on contractors or offerors.

III. Applicability to Contracts at or Below the Simplified Acquisition Threshold (SAT), for Commercial Products (Including Commercially Available Off-the-Shelf (COTS) Items), and for Commercial Services

This final rule does not create any new solicitation provisions or contract clauses. It does not impact any existing solicitation provisions or contract clauses or their applicability to contracts valued at or below the simplified acquisition threshold, for commercial products including COTS items, or for commercial services.

IV. Executive Orders 12866 and 13563

Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is not a significant regulatory action and, therefore, was not subject to review under section 6(b) of E.O. 12866, Regulatory Planning and Review, as amended.

V. Congressional Review Act

As required by the Congressional Review Act (5 U.S.C. 801-808) before an interim or final rule takes effect, DoD will submit a copy of the interim or final rule with the form, Submission of Federal Rules under the Congressional Review Act, to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States. A major rule under the Congressional Review Act cannot take effect until 60 days after it is published in the Federal Register . The Office of Information and Regulatory Affairs has determined that this rule is not a major rule as defined by 5 U.S.C. 804.

VI. Regulatory Flexibility Act

The Regulatory Flexibility Act does not apply to this rule because this final rule does not constitute a significant DFARS revision within the meaning of FAR 1.501-1, and 41 U.S.C. 1707 does not require publication for public comment.

VII. Paperwork Reduction Act

This final 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).

  • Government procurement

Jennifer D. Johnson,

Editor/Publisher, Defense Acquisition Regulations System.

Therefore, the Defense Acquisition Regulations System amends 48 CFR part 225 as follows:

1. The authority citation for 48 CFR part 225 continues to read as follows:

Authority: 41 U.S.C 1303 and 48 CFR chapter 1.

2. Amend section 225.7003-3 by revising paragraph (b)(1) to read as follows:

225.7003-3

Exceptions.

* * * * *

(b) * * *

(1) Electronic components, unless the Secretary of Defense, upon the recommendation of the Strategic and Critical Materials Board of Directors pursuant to 50 U.S.C. 98h-1, determines that the domestic availability of a particular electronic component is critical to national security.

* * * * *

3. Amend section 225.7018-3 by revising paragraph (c)(2) to read as follows:

225.7018-3

Exceptions.

* * * * *

(c) * * *

(2) An electronic device, unless the Secretary of Defense, upon the recommendation of the Strategic and Critical Materials Board of Directors pursuant to 50 U.S.C. 98h-1 determines that the domestic availability of a particular electronic device is critical to national security (but see PGI 225.7018-3(c)(2) with regard to samarium-cobalt magnets used in electronic components); or

* * * * *

[FR Doc. 2024-18107 Filed 8-14-24; 8:45 am]

BILLING CODE 6001-FR-P

Defense Federal Acquisition Regulation Supplement: Strategic and Critical Materials Stock Piling Act Reform (DFARS Case 2023-D014) (2024)

FAQs

What is the purpose of the Defense Federal Acquisition Regulation Supplement? ›

Defense Federal Acquisition Regulation Supplement (DFARS)

DFARS requirements and regulations are meant to guarantee the integrity of Controlled Unclassified Information (CUI), or sensitive information belonging to the government that third-parties such as suppliers, partners, and trade associations may hold or use.

What is the purpose of the DFAR? ›

DFARS came later and served as an addition to the FAR, specifically stating the requirements for defense-related acquisitions. In other words, DFARS regulates how the U.S. government buys goods and services for military or defense purposes.

What is the Defense Acquisition Regulation? ›

About. Our Mission. The Defense Acquisition Regulations System (DARS) develops and maintains acquisition rules and guidance to facilitate the Acquisition workforce as they acquire the goods and services DoD requires to ensure America's Warfighters continued worldwide success.

What does DFARs compliance mean? ›

What is DFARS Compliance? DFARS compliance is a set of cybersecurity regulations that defense contractors and suppliers must follow in order to be awarded new DoD contracts, also known as the Defense Federal Acquisition Regulation Supplement (DFARS).

Who do the DFARs apply to? ›

It is a set of regulations that apply to all U.S. Department of Defense (DoD) contracts and subcontracts.

What is the DFARs compliance checklist? ›

A DFARS compliance checklist is a tool used in performing self-assessments to evaluate if a company with a DoD contract is implementing security standards from NIST SP 800-171 as part of the process for ensuring compliance with DFARS clause 252.204-7012, “Safeguarding Covered Defense Information and Cyber Incident ...

Who does the Federal Acquisition Regulations apply to? ›

The Federal Acquisition Regulation (FAR) is the primary regulation for use by all executive agencies in their acquisition of supplies and services with appropriated funds.

What materials are Dfars compliant? ›

Types of DFARS Metals & Alloys

Steel. Titanium and titanium alloys. Zirconium and zirconium alloys. Nickel and iron-nickel alloys.

Is aluminum a DFAR? ›

DFARS -- Defense Federal Acquisition Regulation Supplement

Stainless Steel: is Compliant. Brass: is Exempt of this Requirement. Aluminum: is Exempt of this Requirement.

Who is in charge of the DFARs? ›

The Defense Federal Acquisition Regulation Supplement (DFARS) to the Federal Acquisition Regulation (FAR) is administered by the Department of Defense (DoD).

What are the three processes of defense acquisition? ›

The Defense Acquisition System is made up of three (3) processes; Acquisition Process, Joint Capabilities Integration and Development System (JCIDS) Process, and Planning, Programing, Budget and Execution (PPBE) Process.

Which documents support the defense acquisition system? ›

The Department of Defense (DoD) Acquisition Process is one of three (3) processes (Acquisition, Requirements, and Funding) that make up and support the Defense Acquisition System and is implemented by DoD Instruction 5000.02 “Operation of the Adaptive Acquisition Framework” and DoD Instruction 5000.85 “Major Capability ...

What metals are covered by DFARs? ›

These regulations outline which metals need to be melted or made in the United States or a qualifying country. The metals covered by these regulations are steel, titanium, zirconium, tantalum, and certain alloys. These metals are used in important areas like aerospace, naval, and nuclear applications.

Is Cmmc replacing Dfars? ›

In 2020, the DoD launched the Cybersecurity Maturity Model Certification (CMMC), initially announcing it as a DFARS replacement. The DoD later clarified that CMMC was an additional but complementary framework.

Is the Dfars part of the Code of Federal Regulations? ›

(i) The DFARS is codified under chapter 2 in title 48, Code of Federal Regulations.

What is the primary purpose of the Federal Acquisition Regulation? ›

Its purpose is to ensure purchasing procedures are standard, consistent, and conducted in a fair and impartial manner.

What is the purpose of the defense acquisition University? ›

Mission: Develop a high-performing Defense acquisition workforce through talent management, acquisition training, online resources, and organization support to deliver effective, affordable warfighting capabilities.

What is the purpose of the Ddtc? ›

DDTC seeks to facilitate legitimate defense trade to partners and allies, while denying adversaries access to sensitive U.S. technology. DDTC's mission is to ensure commercial exports of defense articles and defense services advance U.S. national security and foreign policy objectives.

Which of the following are purposes of the defense acquisition system? ›

The Defense Acquisition System exists to manage the Nation's investments in technologies, programs, and product support necessary to achieve the National Security Strategy and support the United States Armed Forces.

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