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   <concept id="DFARS_252.225-7009"
            ditaarch:DITAArchVersion="1.2"
            class="- topic/topic concept/concept ">
      <title class="- topic/title ">
         <ph props="autonumber" class="- topic/ph ">252.225-7009</ph> Restriction on
Acquisition of Certain Articles Containing Specialty Metals.</title>
      <conbody outputclass="clause" class="- topic/body  concept/conbody ">
         <p class="- topic/p ">As prescribed in <xref outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  base="DFARS-225.7003-5"
                  href="225.7003-5.dita#DFARS_225.7003-5">225.7003-5</xref>(a)(2), use the following clause:</p>
         <p outputclass="Ctr_SmCaps" class="- topic/p ">Restriction on Acquisition of Certain
Articles Containing Specialty Metals (DEC 2019)</p>
         <p outputclass="List1" class="- topic/p ">(a) <i class="+ topic/ph hi-d/i ">Definitions.</i> As used in this
clause -</p>
         <p class="- topic/p ">“Alloy” means a metal consisting of a mixture of a basic metallic
element and one or more metallic, or non-metallic, alloying elements.</p>
         <p outputclass="List3" class="- topic/p ">(i) For alloys named by a single metallic
element (e.g., titanium alloy), it means that the alloy contains
50 percent or more of the named metal (by mass).</p>
         <p outputclass="List3" class="- topic/p ">(ii) If two metals are specified in the
name (e.g., nickel-iron alloy), those metals are the two predominant
elements in the alloy, and together they constitute 50 percent or
more of the alloy (by mass).</p>
         <p class="- topic/p "> “Assembly” means an item forming a portion of a system or subsystem
that—</p>
         <p outputclass="List3" class="- topic/p ">(i) Can be provisioned and replaced as
an entity; and</p>
         <p outputclass="List3" class="- topic/p ">(ii) Incorporates multiple, replaceable
parts.</p>
         <p class="- topic/p "> “Commercial derivative military article” means an item acquired
by the Department of Defense that is or will be produced using the
same production facilities, a common supply chain, and the same
or similar production processes that are used for the production
of articles predominantly used by the general public or by nongovernmental
entities for purposes other than governmental purposes.</p>
         <p class="- topic/p "> “Commercially available off-the-shelf item”—</p>
         <p outputclass="List3" class="- topic/p ">(i) Means any item of supply that is -</p>
         <p outputclass="List4" class="- topic/p ">(A) A commercial item (as defined in paragraph
(1) of the definition of “commercial item” in section 2.101 of the Federal
Acquisition Regulation);</p>
         <p outputclass="List4" class="- topic/p ">(B) Sold in substantial quantities in the
commercial marketplace; and</p>
         <p outputclass="List4" class="- topic/p ">(C) Offered to the Government, under this
contract or a subcontract at any tier, without modification, in
the same form in which it is sold in the commercial marketplace;
and</p>
         <p outputclass="List3" class="- topic/p ">(ii) Does not include bulk cargo, as defined
in 46 U.S.C. 40102(4), such as agricultural products and petroleum
products.</p>
         <p class="- topic/p ">“Component” means any item supplied to the Government as part
of an end item or of another component.</p>
         <p class="- topic/p ">“Electronic component” means an item that operates by controlling
the flow of electrons or other electrically charged particles in
circuits, using interconnections of electrical devices such as resistors,
inductors, capacitors, diodes, switches, transistors, or integrated
circuits.  The term does not include structural or mechanical parts
of an assembly containing an electronic component, and does not
include any high performance magnets that may be used in the electronic
component.</p>
         <p class="- topic/p ">“End item” means the final production product when assembled
or completed and ready for delivery under a line item of this contract.</p>
         <p class="- topic/p ">“High performance magnet” means a permanent magnet that obtains
a majority of its magnetic properties from rare earth metals (such
as samarium).</p>
         <p class="- topic/p ">“Produce” means—</p>
         <p outputclass="List3" class="- topic/p ">(i) Atomization;</p>
         <p outputclass="List3" class="- topic/p ">(ii) Sputtering; or</p>
         <p outputclass="List3" class="- topic/p ">(iii) Final consolidation of non-melt derived
metal powders.</p>
         <p class="- topic/p ">“Qualifying country” means any country listed in the definition
of “Qualifying country” at <xref outputclass="fm:ParaNumOnly"
                  class="- topic/xref "
                  base="DFARS-225.003"
                  href="225.003.dita#DFARS_225.003">225.003</xref> of the Defense Federal Acquisition
Regulation Supplement (DFARS).</p>
         <p class="- topic/p ">“Specialty metal” means—</p>
         <p outputclass="List3" class="- topic/p ">(i) Steel—</p>
         <p outputclass="List4" class="- topic/p ">(A) With a maximum alloy content exceeding
one or more of the following limits: manganese, 1.65 percent; silicon, 0.60
percent; or copper, 0.60 percent; or</p>
         <p outputclass="List4" class="- topic/p ">(B) Containing more than 0.25 percent of
any of the following elements: aluminum, chromium, cobalt, molybdenum,
nickel, niobium (columbium), titanium, tungsten, or vanadium;</p>
         <p outputclass="List3" class="- topic/p ">(ii) Metal alloys consisting of—</p>
         <p outputclass="List4" class="- topic/p ">(A) Nickel or iron-nickel alloys that contain
a total of alloying metals other than nickel and iron in excess
of 10 percent; or</p>
         <p outputclass="List4" class="- topic/p ">(B) Cobalt alloys that contain a total
of alloying metals other than cobalt and iron in excess of 10 percent;</p>
         <p outputclass="List3" class="- topic/p ">(iii) Titanium and titanium alloys; or</p>
         <p outputclass="List3" class="- topic/p ">(iv) Zirconium and zirconium alloys.</p>
         <p class="- topic/p ">“Steel” means an iron alloy that includes between .02 and 2 percent
carbon and may include other elements.</p>
         <p class="- topic/p ">“Subsystem” means a functional grouping of items that combine
to perform a major function within an end item, such as electrical
power, attitude control, and propulsion.</p>
         <p outputclass="List1" class="- topic/p ">(b) <i class="+ topic/ph hi-d/i ">Restriction.</i>Except as provided
in paragraph (c) of this clause, any specialty metals incorporated
in items delivered under this contract shall be melted or produced
in the United States, its outlying areas, or a qualifying country.</p>
         <p outputclass="List1" class="- topic/p ">(c) <i class="+ topic/ph hi-d/i ">Exceptions.</i>The restriction in
paragraph (b) of this clause does not apply to—</p>
         <p outputclass="List2" class="- topic/p ">(1) Electronic components.</p>
         <p outputclass="List2" class="- topic/p ">(2)(i) Commercially available off-the-shelf
(COTS) items, other than—</p>
         <p outputclass="List4" class="- topic/p ">(A) Specialty metal mill products, such
as bar, billet, slab, wire, plate, or sheet, that have not been
incorporated into COTS end items, subsystems, assemblies, or components;</p>
         <p outputclass="List4" class="- topic/p ">(B) Forgings or castings of specialty metals,
unless the forgings or castings are incorporated into COTS end items, subsystems,
or assemblies;</p>
         <p outputclass="List4" class="- topic/p ">(C) Commercially available high performance
magnets that contain specialty metal, unless such high performance magnets
are incorporated into COTS end items or subsystems; and</p>
         <p outputclass="List4" class="- topic/p ">(D) COTS fasteners, unless—</p>
         <p outputclass="List6" class="- topic/p ">
            <i class="+ topic/ph hi-d/i ">(1)</i> The fasteners are incorporated
into COTS end items, subsystems, assemblies, or components; or</p>
         <p outputclass="List6" class="- topic/p ">
            <i class="+ topic/ph hi-d/i ">(2)</i> The fasteners qualify for the
commercial item exception in paragraph (c)(3) of this clause.</p>
         <p outputclass="List3" class="- topic/p ">(ii) A COTS item is considered to be “without
modification” if it is not modified prior to contractual acceptance
by the next higher tier in the supply chain.</p>
         <p outputclass="List4" class="- topic/p ">(A) Specialty metals in a COTS item that
was accepted without modification by the next higher tier are excepted from
the restriction in paragraph (b) of this clause, and remain excepted,
even if a piece of the COTS item subsequently is removed (e.g.,
the end is removed from a COTS screw or an extra hole is drilled
in a COTS bracket).</p>
         <p outputclass="List4" class="- topic/p ">(B) Specialty metals that were not contained
in a COTS item upon acceptance, but are added to the COTS item after acceptance,
are subject to the restriction in paragraph (b) of this clause (e.g.,
a special reinforced handle made of specialty metal is added to
a COTS item).</p>
         <p outputclass="List4" class="- topic/p ">(C) If two or more COTS items are combined
in such a way that the resultant item is not a COTS item, only the specialty
metals involved in joining the COTS items together are subject to
the restriction in paragraph (b) of this clause (e.g., a COTS aircraft
is outfitted with a COTS engine that is not the COTS engine normally
provided with the aircraft).</p>
         <p outputclass="List4" class="- topic/p ">(D) For COTS items that are normally sold
in the commercial marketplace with various options, items that include such
options are also COTS items. However, if a COTS item is offered
to the Government with an option that is not normally offered in
the commercial marketplace, that option is subject to the restriction
in paragraph (b) of this clause (e.g. - An aircraft is normally
sold to the public with an option for installation kits. The Department of
Defense requests a military-unique kit. The aircraft is still a
COTS item, but the military-unique kit is not a COTS item and must
comply with the restriction in paragraph (b) of this clause unless
another exception applies).</p>
         <p outputclass="List2" class="- topic/p ">(3) Fasteners that are commercial items,
if the manufacturer of the fasteners certifies it will purchase,
during the relevant calendar year, an amount of domestically melted
or produced specialty metal, in the required form, for use in the
production of fasteners for sale to the Department of Defense and
other customers, that is not less than 50 percent of the total amount
of the specialty metal that it will purchase to carry out the production
of such fasteners for all customers.</p>
         <p outputclass="List2" class="- topic/p ">(4) Items manufactured in a qualifying
country.</p>
         <p outputclass="List2" class="- topic/p ">(5) Specialty metals for which the Government
has determined in accordance with DFARS 
               <xref href="225.7003-3.dita#DFARS_225.7003-3"
                  base="i1379135"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref ">225.7003-3</xref>
             that specialty
metal melted or produced in the United States, its outlying areas,
or a qualifying country cannot be acquired as and when needed in—</p>
         <p outputclass="List3" class="- topic/p ">(i) A satisfactory quality;</p>
         <p outputclass="List3" class="- topic/p ">(ii) A sufficient quantity; and</p>
         <p outputclass="List3" class="- topic/p ">(iii) The required form. In accordance
with 10 U.S.C. 2533b(m)(4), the term “required form” in this clause
refers to the form of the mill product, such as bar, billet, wire,
slab, plate, or sheet, in the grade appropriate for the production of
a finished end item to be delivered to the Government under this
contract; or a finished component assembled into an end item to
be delivered to the Government under this contract.</p>
         <p outputclass="List2" class="- topic/p ">(6) End items containing a minimal amount
of otherwise noncompliant specialty metals (i.e., specialty metals
not melted or produced in the United States, an outlying area, or
a qualifying country, that are not covered by one of the other exceptions
in this paragraph (c)), if the total weight of such noncompliant
metals does not exceed 2 percent of the total weight of all specialty
metals in the end item, as estimated in good faith by the Contractor.
This exception does not apply to high performance magnets containing
specialty metals.</p>
         <p outputclass="List1" class="- topic/p ">(d) <i class="+ topic/ph hi-d/i ">Compliance for commercial derivative
military articles</i>.</p>
         <p outputclass="List2" class="- topic/p ">(1) As an alternative to the compliance
required in paragraph (b) of this clause, the Contractor may purchase
an amount of domestically melted or produced specialty metals 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, if—</p>
         <p outputclass="List3" class="- topic/p ">(i) The Contracting Officer has notified
the Contractor of the items to be delivered under this contract
that have been determined by the Government to meet the definition
of “commercial derivative military article”; and</p>
         <p outputclass="List3" class="- topic/p ">(ii) For each item that has been determined
by the Government to meet the definition of “commercial derivative
military article,” the Contractor has certified, as specified in
the provision of the solicitation entitled “Commercial Derivative Military
Article—Specialty Metals Compliance Certificate” (DFARS 
               <xref href="252.225-7010.dita#DFARS_252.225-7010"
                  base="i1382036"
                  outputclass="fm:ParaNumOnly"
                  class="- topic/xref ">252.225-7010</xref>
            ), that
the Contractor and its subcontractor(s) 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 each commercial
derivative military article and the related commercial article,
that is not less than the Contractor’s good faith estimate of the
greater of—</p>
         <p outputclass="List4" class="- topic/p ">(A) An amount equivalent to 120 percent
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</p>
         <p outputclass="List4" class="- topic/p ">(B) An amount equivalent to 50 percent
of the amount of specialty metal that will be 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.</p>
         <p outputclass="List2" class="- topic/p ">(2) For the purposes of this alternative,
the amount of specialty metal that is required to carry out production
of the commercial derivative military article includes specialty
metal contained in any item, including COTS items.</p>
         <p outputclass="List1" class="- topic/p ">(e) <i class="+ topic/ph hi-d/i ">Subcontracts.</i>
         </p>
         <p outputclass="List2" class="- topic/p ">(1) The Contractor shall exclude and reserve
paragraph (d) and this paragraph (e)(1) when flowing down this clause
to subcontracts.</p>
         <p outputclass="List2" class="- topic/p ">(2) The Contractor shall insert paragraphs
(a) through (c) and this paragraph (e)(2) of this clause in subcontracts,
including subcontracts for commercial items, that are for items
containing specialty metals to ensure compliance of the end products
that the Contractor will deliver to the Government. When inserting
this clause in subcontracts, the Contractor shall—</p>
         <p outputclass="List3" class="- topic/p ">(i) Modify paragraph (c)(6) of this clause
only as necessary to facilitate management of the minimal content
exception at the prime contract level. The minimal content exception
does not apply to specialty metals contained in high-performance
magnets; and</p>
         <p outputclass="List3" class="- topic/p ">(ii) Not further alter the clause other
than to identify the appropriate parties.</p>
         <p outputclass="Endofclause" class="- topic/p ">(End of clause)</p>
      </conbody>
   </concept>
</dita>
