A.  Restriction on Ball and Roller Bearings

DoD published a proposed rule, Restrictions on Ball and Roller Bearings (DFARS Case 2006-D029), in the Federal Register (75 FR 25167) on May 7, 2010 with request for comments. DoD received comments from three respondents and addressed the comments in the publication of the final rule (75 FR 76297) on December 8, 2010. DFARS Case 2006-D029 retained the existing definition of "bearing component". As used in DFARS part 225 and the DFARS clause 252.225-7016, "bearing component" means the bearing element, retainer, inner race, or outer race (see 252.225-7016(a)). However, that rule added a new requirement at 225.7009-2(a)(2) and 252.225-7016(b)(2) that for each ball or roller bearing, the cost of the bearing components "mined, produced, or manufactured" in the United States or Canada must exceed 50 percent of the total cost of the bearing components of that ball or roller bearing.

The phrase "mined, produced, or manufactured" was adopted from the Buy American Act, which applies broadly to many types of items. This rule applies only to bearing components, which are manufactured items and not mined or produced. As used in the DFARS, the term "bearing component" does not refer to the materials that are utilized in the manufacture of the bearing components. There is no restriction with regard to where the iron ore is mined or where the resultant steel in a bearing component is produced. The requirement at 225.7009-2(a)(2) and 252.225-7016(b)(2) that for each ball or roller bearing, the cost of the bearing components "mined, produced, or manufactured" in the United States or Canada must exceed 50 percent of the total cost of the bearing components of that ball or roller bearing, has the same meaning as a requirement that for each ball or roller bearing, the cost of the bearing components "manufactured" in the United States or Canada must exceed 50 percent of the total cost of the bearing components of that ball or roller bearing. The words "mined" and "produced" are extraneous because they are inapplicable, since a ball or roller bearing is manufactured and not mined or produced. Therefore, this final rule under DFARS Case 2011-D017 removes the words "mined, produced, or" and retains only the term "manufactured", to clarify the definition and alleviate any confusion these extraneous words may cause industry or Government personnel.

This final rule also makes a conforming change to the clause date for 252.225-7016, Restriction on the Acquisition of Ball and Roller Bearings, in the clause at 252.212-7001, Contract Terms and Conditions Required to Implement Statutes or Executive Orders Applicable to Defense Acquisitions of Commercial Items.