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Defense Acquisition Regulations System Issues Interim Rule on Foreign Commercial Satellite Services

August 7, 2014

Targeted News Service

WASHINGTON, Aug. 7 -- The U.S. Defense Acquisition Regulations System published the following rule in the Federal Register:

Defense Federal Acquisition Regulation Supplement: Foreign Commercial Satellite Services (DFARS Case 2014-D010)

A Rule by the Defense Acquisition Regulations System on 08/05/2014

Publication Date: Tuesday, August 05, 2014

Agencies: Department of Defense

Defense Acquisition Regulations System

Dates: Effective August 5, 2014.

Effective Date: 08/05/2014

Entry Type: Rule

Action: Interim rule.

Document Citation: 79 FR 45661

Page: 45661 -45665 (5 pages)

CFR: 48 CFR 204

48 CFR 212

48 CFR 225

48 CFR 252

RIN: 0750-AI32

Document Number: 2014-18204

Shorter URL:


Interim Rule.


DoD is issuing an interim rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2014 that prohibits acquisition of commercial satellite services from certain foreign entities.


Effective August 5, 2014.

Comment Date: Comments on the interim rule should be submitted in writing to the address shown below on or before October 6, 2014, to be considered in the formation of a final rule.


Submit comments identified by DFARS Case 2014-D010, using any of the following methods: Submit comments via the Federal eRulemaking portal by entering "DFARS Case 2014-D010" under the heading "Enter keyword or ID" and selecting "Search." Select the link "Submit a Comment" that corresponds with "DFARS Case 2014-D010." Follow the instructions provided at the "Submit a Comment" screen. Please include your name, company name (if any), and "DFARS Case 2014-D010" on your attached document.

a--Email: Include DFARS Case 2014-D010 in the subject line of the message.

a--Fax: 571-372-6094.

a--Mail: Defense Acquisition Regulations System, Attn: Ms. Amy G. Williams, OUSD(AT&L)DPAP/DARS, Room 3B941, 3060 Defense Pentagon, Washington, DC 20301-3060.

Comments received generally will be posted without change to, including any personal information provided. To confirm receipt of your comment(s), please check, approximately two to three days after submission to verify posting (except allow 30 days for posting of comments submitted by mail).


Ms. Amy G. Williams, Defense Acquisition Regulations System, OUSD(AT&L)DPAP/DARS, Room 3B941, 3060 Defense Pentagon, Washington, DC 20301-3060. Telephone 571-372-6106.


I. Background

This interim rule amends the DFARS to implement section 1602 of the NDAA for FY 2014 (Pub. L. 113-66). Section 1602 prohibits award of a contract for commercial satellite services to a foreign entity if the Secretary of Defense reasonably believes that the foreign entity--

Is an entity in which the government of a covered foreign country has an ownership interest that enables the government to affect satellite operations; or

Plans to, or is expected to, provide or use launch or other satellite services under the contract from a covered foreign country.

A covered foreign country means the People's Republic of China, North Korea, or any country that is a state sponsor of terrorism, as described in section 1261(c)(2) of the NDAA for FY 2013 (Pub. L. 112-239). State sponsors of terrorism, as determined by the Secretary of State, currently include Cuba, Iran, Sudan, and Syria.

II. Discussion and Analysis

This interim rule adds a new section at DFARS 225.772 that addresses the prohibition on acquisition of commercial satellite services from certain foreign entities and adds a provision at DFARS 252.225-7049 that requires offerors to represent whether they are foreign entities that fall within the prohibition, or whether they are offering commercial satellite services provided by such a foreign entity. If the offeror responds affirmatively to any of the representations, then the offeror must provide further disclosure regarding the circumstances.

The prohibition on award to such foreign entities does not apply if the Secretary of Defense for Acquisition, Technology, and Logistics or the Under Secretary of Defense for Policy, without power of redelegation, determines that it is in the national security interest of the United States to enter into such contract and, not later than seven days before entering into such contract, the Under Secretary of Defense making the determination, in consultation with the Director of National Intelligence, submits to the congressional defense committees a national security assessment in accordance with 10 U.S.C. 2279.

There are conforming changes to DFARS 204.1202 and 252.205-7007 to include the new representations in the annual representations and certifications, and changes to DFARS 212.301(f) to add the new provision to the list of provisions and clauses that are applicable to the acquisition of commercial items.

[*Federal RegisterVJ 2014-08-05]

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