DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement to implement sections 817, 881(b), and 1296 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2017.  These sections of the NDAA for FY 2017 accomplish the following:

• Section 817 amends 37 U.S.C. 418, adding new paragraph (d), which extends domestic source requirements to acquisitions at or below the simplified acquisition threshold when acquiring athletic footwear to be furnished to enlisted members of the Armed Forces upon their initial entry into the Armed Forces.
• Section 881(b) amends 10 U.S.C. 2500(1) by adding Australia and the United Kingdom to the definition of "National Technology and Industrial Base." 10 U.S.C. 2534 restricts acquisition of certain items to items from manufacturers that are part of the national technology and industrial base.
• Section 1296 amends section 1211 of the NDAA for FY 2006 (Pub. L. 109-163), which was also amended by the NDAA for FY 2012 (Pub. L. 112-81). It prohibits purchase of items from a Communist Chinese military company that meet the definition of goods and services controlled as munitions items when moved to the 600 series of the Commerce Control List of the Export Administration Regulations of the Department of Commerce. 

This rule is not expected to significantly increase costs for contractors or offerors; however, this rule will benefit the manufacturers of domestic footwear and improve integration of the national technology and industrial base.