Understanding DFARS Specialty Metals
Understanding DFARS Specialty Metals
Definition
DFARS, or the Defense Federal Acquisition Regulation Supplement, was created as a set of regulations to ensure the security of products procured for the Department of Defense (DoD).
Any supplier conducting work for or fulfilling contracts for the DoD is subject to DFARS compliance. DFARS itself has multiple subsections with different requirements based on what section is specified in the purchase order or customer-supplier quality agreements.
Common Clauses
'DFARS' itself is commonly used as a single qualification. However, the term 'DFARS' is really a starting point to further requirements and is not necessarily applicable on its own. To fully comply with DFARS, more specific language - such as the section/clause of DFARS - must be given to the supplier.
Some of the most common subsections of DFARS literature related to specialty metals are 252.225-7001, 252.225-7008, and 252.225-7009. These three sections are what most companies mean when saying 'DFARS.' But their content varies greatly.
DFARS 252.225-7001 – Buy American and Balance of Payments Program
Requires certain products purchased under U.S. Government contracts to be sourced from approved domestic or qualifying-country sources. This can be seen as the "master" requirement, which is refined in the other two clauses specifically about specialty metals.
DFARS 252.225-7008 – Restriction on Acquisition of Specialty Metals
Requires specialty metals delivered under the contract to be melted or produced in the United States or its outlying areas.
DFARS 252.225-7009 – Restriction on Acquisition of Certain Articles Containing Specialty Metals
Provides exceptions and flow-down requirements for specialty metals and permits material from the list of qualifying countries for most orders. (This is the most common requirement and is nearest to the removed clause DFARS 252.225-7014. This clause causes confusion because it is not as clear as 252.225-7014 was, and it is not always known to have been removed.)
Example
A supplier is sourcing product from Denmark. Denmark is a DFARS qualifying country, but it is not compliant with DFARS 252.225-7008. So, if the end user simply says DFARS but really means the product to be American made, this must be specified in the PO as a clause.
In other words, the PO simply saying "DFARS" for this situation would not fulfill end user requirements, as most DoD contracts pass through AS9100 certified companies – flow down is required through the entire supply chain.
For Purchasing Agents
Examples of customer language we commonly see:
- "Requirement for Domestic Metal Applies per DFARS 252.225-7009" – This is an example of correct use of DFARS.
- "Must be Domestic/DFARS" – While slightly more detailed than only saying "DFARS," "Domestic" can refer to multiple different DFARS clauses.
- "Must be DFARS compliant", or simply "DFARS" – Widely different requirements fall under DFARS, and this can cause confusion for both supplier and customer. It leaves the supplier to assume unnecessary risk.
It is good practice for the customer to be as specific as possible regarding DFARS clauses when submitting a PO, and for a purchasing agent to work with the customer to ensure all requirements are indicated when placing an order.
When possible and if known, state a product's country of origin on all paperwork and ensure it aligns with the DFARS clause(s) required.
Furthermore, indicate if the use of the term "DFARS" is an either/or situation: meaning a country of origin on the DFARS qualifying countries list, or if the product must be domestic.
Need Help Navigating DFARS?
Navigating DFARS can be challenging, and we are here to help. We acknowledge a responsibility to help inform customers regarding criteria in which we have a wealth of knowledge.
Contact M. Vincent and Associates for assistance with DFARS.
M. Vincent and Associates supplies aerospace, defense, and specialty metal products with full material traceability, DFARS sourcing support, and AS9120-certified quality management.