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DFARS Interim Rule Adds Export Control Requirements

The Department of Defense has issued an interim rule (DFARS Case 2004-D010) amending the Defense Federal Acquisition Regulation Supplement to address requirements for complying with export control laws and regulations when performing DoD contracts. Specifically, the rule sets forth a contractor's responsibility to abide by existing Department of State and Department of Commerce regulations. DoD initially issued a proposed rule (¶70,020.205) on the requirements for preventing unauthorized disclosure of export-controlled information and technology. A second proposed rule (¶70,020.210) simplified the policy framework in recognition of existing policy found in the International Traffic in Arms Regulations and the Export Administration Regulations. Section 890(a) of the National Defense Authorization Act for Fiscal Year 2008 (PL 110-181), enacted on January 28, 2008, required DoD to prescribe regulations, not later than July 26, 2008, to address requirements for DoD contractors to comply with laws and regulations applicable to goods or technology subject to export controls. In view of this new statutory requirement, and in consideration of the public comments received in response to the second proposed rule, DoD developed this interim rule to address export controls.
New Regulations
The rule adds a new Subpart at DFARS 204.73 implementing the statute and setting forth applicable definitions (DFARS 204.7301), general requirements (DFARS 204.7302), relevant policy (DFARS 204.7303) and procedures (DFARS 204.7304), and at DFARS 204.7305 prescribing two new contract clauses --DFARS 252.204-7008 and DFARS 252.204-7009 --to be used when export-controlled items, including information or technology, are expected to be involved in contract performance, or when there is a possibility these items may be used during the period of contract performance. Also, two new provisions added to the DFARS companion resource, Procedures, Guidance and Information, PGI 204.7302 and PGI 204.7304, provide further policy requirements. Under DFARS Part 235, Research and Development Contracting, the rule redesignates DFARS 235.071 as DFARS 235.072 and adds a new DFARS 235.071 referencing the administrative procedures added at DFARS Subpart 204.73. Corresponding technical amendments are made to DFARS 252.235-7002, DFARS 252.235-7003, DFARS 252.235-7010, and DFARS 252.235-7011. Comments are due September 19, 2008. For the text of the interim rule, which carries a July 21, 2008, effective date, see ¶70,016.480.

(The news featured above is a selection from the news covered in the Government Contracts Report Letter, which is published weekly and distributed to subscribers of the Government Contracts Reporter. )

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