DoD Seal DoD 50 Year Seal

OFFICE OF THE SECRETARY OF DEFENSE

1000 DEFENSE PENTAGON
WASHINGTON, DC 20301-1000
March 26,1996
 
ACQUISITION AND
 TECHNOLOGY

DP(DAR)

                                                                  In reply refer to
                                                                  DFARS Case: 96-D300
                                                                  D. L. 96-005



MEMORANDUM FOR  DIRECTORS OF DEFENSE AGENCIES
                    DEPUTY FOR ACQUISITION AND BUSINESS MANAGEMENT,
                      ASN(RD&A)/ABM
                    DEPUTY ASSISTANT SECRETARY OF THE AIR FORCE
                      (CONTRACTING), SAF/AQC
                    DIRECTOR, PROCUREMENT POLICY, ASA(RD&A)/SARD-PP
                    DEPUTY DIRECTOR (ACQUISITION), DEFENSE LOGISTICS
                      AGENCY


SUBJECT:        Naval Vessel Components



      We have amended the Defense Federal Acquisition Regulation Supplement (DFARS)
to implement Section 806, paragraph (a), of the Fiscal Year 1996 Defense Authorization
Act (Pub. L. 104-106), which imposes additional statutory restrictions on the
acquisition of anchor and mooring chain and totally enclosed lifeboats, when used as
components of naval vessels.


      The attached interim DFARS rule is effective April 1, 1996, and will be included
in a future Defense Acquisition Circular.







                                                 /S/

                                          Eleanor R. Spector
                                          Director, Defense Procurement

Attachment

cc: DSMC, Ft. Belvoir

AA


DFARS CASE 96-D300, NAVAL VESSEL COMPONENTS
INTERIM RULE

SUBPART 225.70 -- AUTHORIZATION ACTS, APPROPRIATIONS ACTS, AND

OTHER STATUTORY RESTRICTIONS ON FOREIGN PURCHASES

225.7012 Restriction[s] on anchor and mooring chain.

225.7012-1 Restriction[s]

(a)Under Pub.L. 101-511, Section 8041, and similar sections in subsequent Defense appropriations acts, DoD appropriations [for fiscal years 1991 and after] may not be used to acquire welded shipboard anchor and mooring chain, four inches in diameter and under, unless --

(1) It is manufactured in the United States, including curring, heat treating, quality control, testing, and welding (both forging and shot blasting process); and

(2)The cost of the components manufactured in the United States exceeds 50 percent of the total cost of components.

[(b) Acquisition of welded shipboard anchor and mooring chain, four inches in diameter and under, when used as a component of a naval vessel, is also restricted under 10 U.S.C.2534(a)(3)(ii). However, the more stringent restriction under 225.7012-1(a) takes precedence.

225.7012-2 Waiver.]

Th[e] restriction [in 225.7012-1(a)] may be waived by the Secretary of the Department responsible for acquisition, on a case-by-case basis, where sufficient domestic suppliers are not available to meet DoD requirements on a timely basis and the acquisition is necessary to acquire capability for national security purposes.

([a]) Document the waiver in a written D&F contianing --

([1]) The factors supporting the waiver; and

([2]) A certification that the acquisition must be made in order to acquire capability for national security purposes.

([b]) Provide a copy of the D&F to the House and Senate Committees on Appropriations.

225.7012-[3] Contract clauses.

Use the clause at 252.225-7019, Restriction on Acquisition of Foreign Anchor and Mooring Chain, in all solicitations and contracts --

(1) Using fiscal year 1991 or later funds; and

(2) Requiring welded shipboard anchor or mooring chain of four inches in diameter or less.

* * * * *

225.7022 Restriction[s] on totally enclosed lifeboat survival systems.

225.7022-1 Restriction[s].
[(a)] In accordance with Section 8124 of the Fiscal Year 1994 Defense Appropriations Act (Pub. L. 103-139) and Section 8093 of the Fiscal Year 1995 Defense Appropriations Act (Pub. L. 103-335), do not purchase a totally enclosed lifeboat survival system, which consists of the lifeboat and associated davits and winches, unless 50 percent or more of the components are manufactured in the United States, and 50 percent or more of the labor in the final manufacture and assembly of the entire system is performed in the United States.

[(b) In accordance with 10 U.S.C.2534(a)(3)(B), do not purchase a totally enclosed lifeboat which is a component of a naval vessel, unless it is manufactured in the United States or Canada. In accordance with 10 U.S.C.2534(h), this restriction may not be implemented through the use of a contract clause or certification. Implementation shall be effected through management and oversight techniques that achieve the objective of the restriction without imposing a significant management burden on the Government or the contractor involved.]

225.7022-2 [Exceptions.
The restriction in 225.7022-1(b) does not apply if --

(a) The acquisition is at or below the simplified acquisition threshold; or

(b) Spare or repair parts are needed to support totally enclosed lifeboats mnaufactured outside the United States or Canada.

225.7022-3 Waiver.
The waiver sriteria at 225.7004-4 apply only to the restriction of 224.7022-1(b).

225.7022-4] Contract clause.
Use the clause at 252.225-7039, Restriction on Acquisition of Totally Enclosed Lifeboat Survival Systems, in all solicitations and contracts which require delivery of totally enclosed lifeboat [survival] systems.

* * * * *

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

* * * * *

252.225-7019 Restriction on Acquisition of Foreign Anchor and Mooring Chain.
As prescribed in 225.7012-[3], use the following clause:

* * * * *

252.225-7020 [Reserved]

252.225-7021 [Reserved]

* * * * *

252.225.7039 Restriction on Acquisition of Totally Enclosed Lifeboat Survival Systems.
As prescribed in 225.7022-[4], use the following clause:

RESTRICTION OF ACQUISITION OF TOTALLY ENCLOSED LIFEBOAT SURVIVAL
SYSTEMS ([APR 1996])

For totally enclosed lifeboat [survival] systems furnished under this contract, which consist of lifeboat and associated davits and winches, the Contractor agrees that --

* * * * *