Panelists: Tim Malishenko, Dave Riley, Larry Trowel

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(No Transcript)
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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 930 a.m. 1030 a.m.
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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

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Panel

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

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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 930 am 1030 am
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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
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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

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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

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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

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DCMAs 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

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CAP Requirements for OTW Approval

• Statute requires effective plan to ensure
  compliance
• CAP is required cant 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

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Approved DNADs

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

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DNADs in Process

• Radio Frequency Devices
• COTS
• Caterpillar Engines
• Gulfstream Components
• Hardware in FSG 53/59
• Allison Transmissions

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Approved OTWs

• GE Aviation Parts
• Raytheon extensive

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In-Process OTWs

• Northrop
• Boeing
• Armor Holdings
• Allison Transmissions

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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

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Need Help?

• Start with your ACO.
• The ACO will contact the specialty metals team.
• Well activate resources to help you through the
  process.
• Going to OSD will only delay getting you help.
  Theyll likely refer you to us.

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Roadblocks?

• Feel free to contact me
• Dave Riley
• David.riley_at_dcma.mil
• 310-900-6202