What is DFARS ?
DFARS stands for “Defense Federal Acquisition Regulations Supplement.” DFARS is a well known example of an agency supplement of the Federal Acquisition Regulations [FAR] to provide “uniform policies and procedures for acquisition” used by the Department of Defense [DoD]. DFARS 252.225-7014 Preference for Domestic Specialty Metals was issued under the Office of the Secretary of Defense for Acquisition and Logistics. The basic requirements of DFARS include that in order for a United States company to use Specialty Metals, the metals must be melted in the United States or a qualifying country. Defense Acquisition Regulations System [DARS] develops and maintains the 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 are the DFARS Specialty Metal Qualifying Countries ?
(a) “Qualifying Country” means a country with a reciprocal defense procurement memorandum of understanding or international agreement with the United States in which both countries agree to remove barriers to purchases of supplies produced in the other country or services performed by sources of the other country, and the
memorandum or agreement complies, where applicable, with the requirements of section 36 of the Arms Export Control Act (22 U.S.C. 2776) and with 10 U.S.C. 2457. Accordingly, the following below are are Qualifying Countries:
Japan (Effective 08/02/2016)
Slovenia (Effective 08/02/2016)
United Kingdom of Great Britain and Northern Ireland
(b) Individual acquisitions of qualifying country end products from the following qualifying countries may, on a purchase-by-purchase basis (see 225.872-4), be exempted from application of the Buy American Act statute and the Balance of Payments Program as inconsistent with the public interest:
(c) The determination in paragraph (a) of this subsection does not limit the authority of the Secretary of Defense for Acquisition and Logistics concerned to restrict acquisitions to domestic sources or reject an otherwise acceptable offer from a qualifying country source when considered necessary for national defense reasons.
According to DFARS, what are the “Specialty Metals” ?
DFARS 252.225-7014 outlines “Specialty Metals” means:
(a) Steel with a maximum alloy content exceeding one or more of the following limits: Manganese 1.65%, Silicon 0.60%, or Copper 0.60%; or
(b) Steel containing more than 0.25% of any of the following elements: Aluminum, Chromium, Cobalt, Columbium, Molybdenum, Nickel, Titanium, Tungsten, or Vanadium; or
(c) Metal alloys consisting of Nickel, Iron-Nickel, and Cobalt base alloys containing a total of other alloying metals, except Iron, in excess of 10%; or
(d) Titanium and Titanium alloys; or
(e) Zirconium and Zirconium base alloys.