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Panelists: Tim Malishenko, Dave Riley, Larry Trowel July 26, 2007 9:30 a.m. – 10:30 a.m.

Common Ground: The New Specialty Metals Rules and How Government and Industry Can Work Together. Panelists: Tim Malishenko, Dave Riley, Larry Trowel July 26, 2007 9:30 a.m. – 10:30 a.m. Specialty Metals – Policy Landscape. 1972-2006

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Panelists: Tim Malishenko, Dave Riley, Larry Trowel July 26, 2007 9:30 a.m. – 10:30 a.m.

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  1. Common Ground: The New Specialty Metals Rules and How Government and Industry Can Work Together Panelists: Tim Malishenko, Dave Riley, Larry Trowel July 26, 2007 9:30 a.m. – 10:30 a.m.

  2. Specialty Metals – Policy Landscape • 1972-2006 • Requirement to buy certain articles from American sources (10 USC 2533a) . . . the “Berry Amendment” • DFARS 225-7002; 252.225-7014 • 2006 – Present • Requirement to buy strategic materials critical to national security from American sources (10 USC 2533b) • Class deviation – Restrictions on procurement of specialty metals (December 6, 2006) • In Work • DFARS proposed rule – exception for COTS items • DFARS revisions to implement 10 USC 2533b

  3. Panel • Tim MalishenkoVice President, Contracting and Pricing Boeing Company • Dave RileyDeputy, Office of Counsel – WestDCMA • Larry TrowelGeneral Manager, Government Business Practices & ProcessesGE

  4. Common Ground: The New Specialty Metals Rules and How Government and Industry can Work Together David S. Riley, DeputyDCMA Office of Counsel - West Date Thursday, July 26, 2007 Time 9:30 am – 10:30 am

  5. The Major Players National Contract Management Assoc. Industrial Preparedness House Armed Services Committee Aerospace Industries Association New Specialty Metals Law Small Business Interests ITAA – SIA – EIA (Electronics) SSINA (Specialty Metals) National Defense Industry Association Senate Armed Services Committee DoD-Services-DCMA

  6. Specialty Metals Lexicon • Old Contracts v. New Contracts • End Items & Components • One-Time Waiver and CAP • In the Required Form - DNAD • Commercially Available Off-the-Shelf (COTS) • Noncompliant Items & Withholds

  7. PCO Responsibilities • Authorize Withholds on Old Contracts • Determine New Contracts & Clauses • Determine End Items & Components • Contractor Proposals & Questions • Specified v. Clause in Contract • Program & Contract Specific • Exceptions and One-Time Waivers

  8. DCMA Responsibilities • CAPs, Broad-based OTWs & DNADs • Policy - www.dcma.mil/dnad/ • Resolving Withholds on Old Contracts • Approved CAP is a Universal Requirement • Price Reduction is Last Resort • Commercially Available Electronic Components • Qualifying Country Metals & Products

  9. DCMA’s Broad-Based OTW Authority • Delegated from DoD, Navy, AF, Army, and DLA • Similar to prior broad-based CAP authority (6/06) • Limited to only broad-based OTW requests • corporate, segment or sector • PCO and Services retain focused OTW requests • program, contract, or shipment • Only applies to prime contracts – Subs and Suppliers must work through Primes • DCMA Approval Authority - Deputy Executive Director of Contract Operations and Customer Relations

  10. CAP Requirements for OTW Approval • Statute requires “effective plan to ensure compliance” • CAP is required – can’t be “effective” w/o correction • Some basic CAP contents: • Detailed I.D. of items and contracts • Correlate items to existing, anticipated and/or newly requested DNADS or other exceptions • Remediation – informing, training, monitoring at all levels • Compliance Dates and progress to date • Market research and costs to support new DNAD requests • Methods used to identify pre 10/17/06 items for waiver

  11. Approved DNADs • Populated Circuit Cards • Fasteners • Needle Bearings • Read The Approvals • they are specific, not general

  12. DNADs in Process • Radio Frequency Devices • COTS: • Caterpillar Engines • Gulfstream Components • Hardware in FSG 53/59 • Allison Transmissions

  13. Approved OTWs • GE – Aviation Parts • Raytheon – extensive

  14. In-Process OTWs • Northrop • Boeing • Armor Holdings • Allison Transmissions

  15. Specialty Metals Team • Dave, Dave, John, John and Jack • DCE, DACO, ACO, PCO and PMO • Primes, Subcontractors & Suppliers • Navy Price Fighter$ (ESA) • Industrial Analysis Center & OSD-IP

  16. Need Help? • Start with your ACO. • The ACO will contact the specialty metals team. • We’ll activate resources to help you through the process. • Going to OSD will only delay getting you help. They’ll likely refer you to us.

  17. Roadblocks? • Feel free to contact me: • Dave Riley • David.riley@dcma.mil • 310-900-6202

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