Bearings, steel plate, forgings and shipyards

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1. Ball and roller bearings

The bearing rule in the Defense Federal Acquisition Regulation Supplement (DFARS) implements section 8065 of the Fiscal Year 2002 Defense Appropriations Act and the same restriction in later acts (DFARS 225.7009-1). Ball and roller bearings may not be acquired unless they are manufactured in the United States or Canada (DFARS 225.7009-2(a)). In addition, for each bearing, the cost of bearing components made in the United States or Canada must exceed 50 percent of the total cost of its bearing components.

Bearing components are the bearing element, retainer, inner race and outer race (DFARS 225.7001). Bearings made from specialty metals, such as high carbon chrome steel, may also fall under the specialty metals restriction (DFARS 225.7009-2(b)). The bearing restriction does not apply to contracts or subcontracts for commercial products, except commercial ball and roller bearings bought as end items (DFARS 225.7009-3).

The secretary of the department responsible for the acquisition may waive the restriction case by case, or for the Defense Logistics Agency the Component Acquisition Executive may (DFARS 225.7009-4). The waiver requires a certification to the House and Senate Committees on Appropriations. It must certify that adequate domestic supplies are not available in time and that the acquisition is needed to acquire capability for national security purposes. Contracts use the clause at DFARS 252.225-7016, unless the items are commercial products other than bearings bought as end items, contain no bearings, or a waiver applies (DFARS 225.7009-5).

2. Carbon, alloy and armor steel plate

A rule from section 8111 of the Fiscal Year 1992 Defense Appropriations Act, repeated in later acts, covers steel plate for government-owned or Defense-controlled facilities (DFARS 225.7011-1(a)). The rule covers carbon, alloy or armor steel plate in Federal Supply Class 9515. Such plate may not be acquired unless melted and rolled in the United States or Canada. The rule also covers plate described by specifications of the American Society for Testing Materials or the American Iron and Steel Institute.

The restriction applies to plate bought as a finished steel mill product, whether used as it is or as an intermediate material for making an end product (DFARS 225.7011-1(b)). It does not apply to an end product used in the facility that contains steel plate as a component, such as a machine tool. The secretary of the department responsible for the acquisition may waive it case by case through a certification to the House and Senate Committees on Appropriations (DFARS 225.7011-2). It must certify that adequate American or Canadian supplies are not available in time and that the purchase is needed for national security capability.

Unless waived, the clause at DFARS 252.225-7030 is used where a contract requires delivery of such plate for use in a government-owned or Defense-controlled facility (DFARS 225.7011-3). It is also used where contractors operating in such a facility must buy the plate.

3. Supercomputers

Under section 8112 of Public Law 100-202 and similar later appropriations sections, the Department may not purchase a supercomputer unless it is manufactured in the United States (DFARS 225.7012-1). The Secretary of Defense may waive the restriction case by case after certifying to the Armed Services and Appropriations Committees (DFARS 225.7012-2). The certification is that adequate American supplies are not available in time and that the purchase is needed for national security capability. Unless waived, contracts for supercomputers use the clause at DFARS 252.225-7011 (DFARS 225.7012-3).

4. Forgings

Subpart 225.71 holds foreign product restrictions based on policies to protect the defense industrial base (DFARS 225.7100). For three forging items, whether end items or components, agencies acquire items of domestic manufacture to the maximum extent practicable (DFARS 225.7102-1). They are ship propulsion shafts, other than service and landing craft shafts, all periscope tubes, and ring forgings for bull gears greater than 120 inches in diameter.

The policy does not apply to acquisitions using simplified acquisition procedures, unless the restricted item is the end item (DFARS 225.7102-2(a)). It does not apply to acquisitions overseas for overseas use (DFARS 225.7102-2(b)). It also does not apply to quantities above what is needed to maintain the American defense mobilization base, if the excess is an economical purchase quantity, and qualifying country sources may then compete (DFARS 225.7102-2(c)).

On a contractor’s request, the contracting officer may waive the domestic manufacture requirement for the listed items (DFARS 225.7102-3). Contracts use the clause at DFARS 252.225-7025 unless the supplies contain none of the items or an exception applies (DFARS 225.7102-4). If an exception covers only part of the acquisition, the excepted portion is specified in the solicitation and contract.

5. Vessels and foreign shipyards

Section 225.7013 implements 10 U.S.C. 8679 and 8680 (DFARS 225.7013-0). A contract may not be awarded to construct, in a foreign shipyard, a vessel for any of the armed forces or a major component of its hull or superstructure (DFARS 225.7013-2(a)). A naval vessel, or other vessel under the Secretary of the Navy, homeported in the United States or Guam may not be overhauled, repaired or maintained in a shipyard outside the United States or Guam (DFARS 225.7013-2(b)(1)). That restriction does not cover voyage repairs, or repairs of damage from hostile actions or interventions (DFARS 225.7013-2(b)(2)).

For a littoral combat ship on deployment, corrective and preventive maintenance or repair and facilities maintenance may be done by government or American contractor personnel in a foreign shipyard or another convenient facility (DFARS 225.7013-2(b)(3)(i)). Foreign workers may do corrective and preventive work only if the Secretary of the Navy, without delegation, determines travel by government or contractor personnel is not advisable for health or safety reasons (DFARS 225.7013-2(b)(3)(ii)). Foreign contractors may do facilities maintenance only as the Secretary of the Navy approves (DFARS 225.7013-2(b)(3)(iii)).

Key terms

Bearing components	The bearing element, retainer, inner race and outer race.
Melted and rolled	The test for covered steel plate used in government facilities.
Mobilization base	Forging quantities above what maintains it, if an economical purchase quantity, are open to qualifying country sources.
Voyage repairs	Repairs excluded from the foreign shipyard restriction on homeported vessels.
Facilities maintenance	Housekeeping throughout the ship, coating maintenance and repair, and cleaning of mechanical, mission and topside spaces.

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This page describes public United States government programs for general information. It is not legal, regulatory or procurement advice, and it does not address the facts of any particular case.

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