# MP5325.7003-3 Domestic Non-Availability Determinations (DNAD) Under DFARS 225.7003

#### Mandatory Procedure

MP5325.7003-3
Domestic Non-Availability Determinations (DNAD) Under DFARS 225.7003

April 2010

#### TABLE OF CONTENTS

#### 1. Introduction

#### 2. Applicability of Commercial Derivative Military Articles (CDMA) to Specialty Metals Restrictions

#### 3. Domestic Non-Availability Determination (DNAD) Exception

#### ADDENDA

#### 1. Sample DNAD Format -- Specialty Metals

#### 2. Sample Determination and Finding – Commercial Derivative Military Article

1. Introduction

Follow these Mandatory Procedures when requesting approval to purchase restricted specialty metals under DFARS 225.7003. The requirement to comply with these statutory and regulatory restrictions applies to procurements in excess of the simplified acquisition threshold. This MP provides guidance for drafting Domestic Non-Availability Determination (DNAD) and Commercial Derivative Military Article (CDMA) Determination and Finding (D&F) documents. The Contracting Officer should tailor the DNAD or CDMA D&Fs to fit the particular acquisition scenario. In some cases, the Contracting Officer may not be able to obtain all of the data specified in the attached samples; however, the Contracting Officer should make every effort to do so.

2. Applicability of Commercial Derivative Military Articles (CDMA) to Specialty Metals

When a program office concludes that an item to be delivered under a prime contract is a commercial derivative military article (as defined at 10 U.S.C. §2533b(m)(7)) and the prime contractor provides the certification required at 10 U.S.C. §2533b(j)(1)(B), the Contracting Officer shall prepare a CDMA D&F using the sample format at addendum 2 and coordinate the effort through SAF/AQCK for submission to the Secretary of the Air Force for approval. This approval authority is not delegable.

3. Domestic Non-Availability Determination (DNAD) Exception

When a program office concludes that domestically melted or produced specialty metal cannot be procured (as described in DFARS 225.7003-3(b)(5)) to support the production of a particular end item or component, the Contracting Officer shall prepare a DNAD D&F using the sample format at addendum 1. The contracting officer shall coordinate the effort through SAF/AQCK for submission to the Secretary of the Air Force for approval. The Secretary of the Air Force may grant a DNAD for an individual contract if compliant specialty metal of satisfactory quality and sufficient quantity, and in the required form, cannot be procured as and when needed. This approval authority is not delegable. A DNAD that applies to more than one contract (i.e., a class DNAD) requires the approval of the USD(AT&L).

ADDENDUM 1 – Sample D&F Format – Specialty Metals

DETERMINATION AND FINDING
DOMESTIC NON-AVAILABILITY DETERMINATION (DNAD) FOR [SPECIFY] SPECIALTY METALS

Pursuant to the authority contained in 10 U.S.C. §2533b and the Defense Federal Acquisition Regulation Supplement (DFARS) 225.7003-3, I hereby make the following determination and findings concerning the domestic non-availability of specialty metals to support the proposed acquisition of [identify the specific end item(s) or component(s)] under [insert contract number].

Findings

1. The [insert name of contracting activity] has proposed to purchase [insert specific description of item(s) at prime and subcontract level]. Pursuant to 10 U.S.C. §2533b(a), the Department of Defense may not acquire this item unless the specialty metal contained therein is melted or produced in the United States, absent the application of one of the statutory exceptions cited at DFARS 225.7003-3(c). [insert program office] has concluded that domestically melted or produced specialty metal cannot be procured in a satisfactory quality, sufficient quantity, and the required form appropriate for the production of [identify the end item(s) or component(s)]. .

2. Describe the mission of the organization:

3. Describe the circumstances that preclude the procurement of the specialty metal required for the production of the end item(s) or component(s).

4. Describe market research performed, to include firms contacted. [Summarize the market research and analysis supporting the assertion of non-availability and include the contractor provided data as an attachment.] [Specify the activity (e.g., AFRL)] conducted an in-depth study of these items and determined that they are [provide brief summary of the analysis -- this should address the aspects of satisfactory quality, sufficient quantity in required form, and time requirements.]

5. Describe the impact if the DNAD is not approved. [Include the impact on the program’s delivery schedule, program costs, and mission.]

6. Describe any alternatives acquisition approaches that would not require a DNAD the program considered and why these alternatives/substitutes are not satisfactory.

7. Provide any other data that will support the request.

Determination

Based on the findings above, I hereby determine that domestically melted or produced specialty metal cannot be procured as and when needed in a satisfactory quality, a sufficient quantity, and the required form appropriate for the production of [specify end item(s) or component(s)]. This determination is made in accordance with DFARS 225.7003-3(b)(5) and 10 U.S.C. §2533b(b). Based on this determination, an exception to the requirements of 10 U.S.C. §2533b(a) applies to permit the delivery of [specify end item(s) or component(s)] while containing specialty metal that was not domestically melted or produced. This determination will be effective until [specify time period, duration, scope (e.g. month/year, lot numbers).]

______________________________ ________
[NAME] DATE
SECRETARY OF THE AIR FORCE

ADDENDUM 2
Sample D&F – Commercial Derivative Military Article

DETERMINATION AND FINDING

FOR {SPECIFY} COMMERCIAL DERIVATIVE MILITARY ARTICLE (CDMA)

Pursuant to the authority contained in 10 U.S.C. §2533b and the Defense Federal Acquisition Regulation Supplement (DFARS) 225.7003-3, I hereby make the following determination and findings concerning [insert agency], [insert contracting activity].

Findings

The responsible program office has determined that the aircraft offered by [insert Contractor] in response to Solicitation Number [insert solicitation number], including airframe, engines, as well as related spares and associated parts, is a commercial derivative military article as defined by 10 U.S.C. 2533b(m)(7). See Attachment A. Further, [insert Contractor] has certified (see Attachment B), in accordance with 10 U.S.C. 2533b(j)(1)(B), that it and its subcontractors have or will enter into a contractual agreement or agreements to purchase an amount of domestically melted or produced specialty metal in the required form for use during the period of contract performance in the production of the commercial derivative military article and the related commercial article that (pursuant to its good faith estimate) is not less than the greater of --

(i) An amount equivalent to 120% of the amount of specialty metal that is required to carry out the production of the commercial derivative military article (including the work performed under each subcontract); or

(ii) An amount equivalent to 50% of the amount of specialty metal that is purchased by the contractor and its subcontractors for use during such period in the production of the commercial derivative military article and the related commercial article.

Determination

Based on the findings above, I hereby determine that the aircraft offered by [insert Contractor] in response to Solicitation Number [insert Solicitation Number], including airframe, engines, as well as related assemblies, spares and associated parts, is a commercial derivative article as defined by 10 U.S.C. 2533b(m)(7), and that [insert Contractor] has satisfied the certification requirements of 10 U.S.C. 2533b(j)(1)(B). Accordingly, the requirements of 10 U.S.C. 2533b(a) shall not apply to any contract with [insert Contractor] awarded pursuant to Solicitation Number [insert Solicitation Number].

_________________________________ ____________
[NAME] DATE
SECRETARY OF THE AIR FORCE

Attachments
A. Program Office Determination to support the commercial aspect of the item.
B. Contractor’s CDMA Certification