11/22/2010
HEADLINES
Pac-West Reveals ‘Dirty Little Secret’ of DFARS
Despite recent changes in the Defense Federal Acquisition Regulation Supplement (DFARS) specialty metals rule, all military-use only fasteners must still be made from 100% domestic or qualifying-country material, Industrial Fasteners Institute lobbyist Jennifer Baker Reid told executives at a Pacific-West Fastener Association conference in Las Vegas.
The DFARS specialty metals rule also treats certain products from qualifying countries — primarily U.S. allies — as compliant.
But while U.S. suppliers must certify that the steel used in DFARS-compliant fasteners was manufactured in the U.S. or qualifying country, that specialty metals requirement doesn’t hold U.S. allies to such a high standard, Reid told Pac-West conference attendees during the National Industrial Fastener Show/West.
For example, a French company could procure Chinese steel to manufacture fasteners that would qualify under DFARS.
Reid called it the “dirty little secret” of the specialty metals clause.
“It causes U.S. fastener manufacturers and distributors great heartburn,” Reid stated via video conference. “They’re allowed to buy their metal wherever they want.”
In January 2009 DFARS was amended so that commercial fasteners could be sold as DFARS-compliant if:
COTS fasteners installed in COTS end items.
Non-compliant fasteners made under contract issued before July 26, 2008 using fastener DNAD.
The 50% rule or “market basket approach (for fasteners only). Fastener manufacturers must certify that they purchase 50% domestic metals per year (either pounds or dollar amount). Distributors must obtain self-certification from manufacturers.
Which ever one applies, Reid advised that fastener companies be confident with their qualifications.
“You have to be comfortable that your method (of certification) will stand up in court,” she advised.
One component of the DFARS update was to put the burden of certification on suppliers so that the Department of Defense could audit them if there was evidence of abuse.
Suppliers must work with customers to be clear about requirements.
“Push back in your supply chain more than you’re comfortable with to have customers use updated language in their contracts,” Reid stated. ©2010 GlobalFastenerNews.com
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