What counts as a specialty metal

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1. The specialty metals restriction

The Defense Federal Acquisition Regulation Supplement (DFARS) restricts where specialty metals in certain defense items may come from. Its restrictions implement 10 U.S.C. 4863 (DFARS 225.7003-2(a)). Subject to the listed exceptions, the Defense Department may not acquire six kinds of items, or any of their components, unless specialty metals in them are melted or produced in the United States (DFARS 225.7003-2(a)(1)). The DFARS points to further guidance on this restriction in its procedures, guidance and information at PGI 225.7003-2(a). The six are aircraft, missile or space systems, ships, tank or automotive items, weapon systems, and ammunition.

A second restriction covers specialty metal bought as an end item, such as raw stock including bar, billet, slab, wire, plate and sheet, castings and forgings (DFARS 225.7003-2(a)(2)). It may not be acquired unless it is melted or produced in the United States. That applies to specialty metal a contractor buys for delivery to the Department as an end item, as well as metal the Department buys directly from the entity that melted or produced it. The DFARS refers readers to a web page for more information on the restrictions and on reporting noncompliances (DFARS 225.7003-2(b)).

2. What counts as a specialty metal

The definition covers four groups (DFARS 225.7003-1). The first is steel with a maximum alloy content above any of three limits: manganese 1.65 percent, silicon 0.60 percent, or copper 0.60 percent. Steel also qualifies if it contains more than 0.25 percent of aluminum, chromium, cobalt, molybdenum, nickel, niobium, titanium, tungsten or vanadium. For this purpose, steel is an iron alloy with between 0.02 and 2 percent carbon, which may include other elements.

The second group is metal alloys (DFARS 225.7003-1). It covers nickel or iron-nickel alloys whose alloying metals other than nickel and iron exceed 10 percent in total. It also covers cobalt alloys whose alloying metals other than cobalt and iron exceed 10 percent. The third group is titanium and titanium alloys, and the fourth is zirconium and zirconium alloys.

An alloy is a mixture of a basic metallic element and one or more metallic or non-metallic alloying elements (DFARS 225.7003-1). An alloy named after one metal, such as titanium alloy, contains 50 percent or more of that metal by mass. Where two metals are named, such as nickel-iron alloy, they are the two predominant elements and together make up 50 percent or more by mass.

3. Melted or produced

The restriction turns on where the metal was melted or produced. For powders, the DFARS defines produce as atomization, sputtering, or final consolidation of non-melt derived metal powders (DFARS 225.7003-1). An automotive item is a self-propelled military transport tactical vehicle primarily intended for use by military personnel or for carrying cargo (DFARS 225.7003-1). Examples are a high-mobility multipurpose wheeled vehicle, an armored personnel carrier, or a troop and cargo carrying truck or van. The definition excludes commercially available off-the-shelf vehicles, construction equipment such as bulldozers and loaders, and other self-propelled equipment such as cranes and aircraft ground support equipment.

Other defined terms set the reach of the rule. An end item is the final production product when assembled or completed and ready for delivery under a contract line item (DFARS 225.7001). A component is any item supplied to the government as part of an end item or of another component, with a narrower meaning for one industrial base rule. An assembly is an item forming part of a system or subsystem that can be provisioned and replaced as an entity and incorporates multiple replaceable parts. The end item definition is drawn from 10 U.S.C. 4863(m), and it applies to section 225.7003 on specialty metals and section 225.7018 on certain magnets, tantalum and tungsten. The clause at DFARS 252.225-7009 adds a definition of subsystem: a functional grouping of items that together perform a major function within an end item, such as electrical power, attitude control or propulsion (DFARS 252.225-7009).

4. The end item clause

The clause at DFARS 252.225-7008, Restriction on Acquisition of Specialty Metals, dated March 2013, applies where specialty metal itself is delivered (DFARS 252.225-7008). It repeats the definitions of alloy, produce, specialty metal and steel. The clause carries the same definitions found in the regulation. Its rule is a single sentence: any specialty metal delivered under the contract must be melted or produced in the United States or its outlying areas.

The clause is used in solicitations and contracts that exceed the simplified acquisition threshold and require delivery of specialty metals as end items (DFARS 225.7003-5(a)(1)). That includes acquisitions of commercial products and commercial services under FAR part 12. Neither clause is required where the whole acquisition is exempt under one of the category exceptions or a national security waiver, subject to the rule on identifying restricted line items (DFARS 225.7003-5(a)).

5. The clause for items containing specialty metal

The clause at DFARS 252.225-7009 applies to items that contain specialty metal (DFARS 225.7003-5(a)(2)). It is used in solicitations and contracts above the simplified acquisition threshold that require delivery of the six listed kinds of item, or their components, if they contain specialty metal. Under it, specialty metals in delivered items must be melted or produced in the United States, its outlying areas or a qualifying country (DFARS 252.225-7009(b)). The clause is dated January 2023, and its restriction is subject to the clause’s exceptions, covered in exceptions to the specialty metals rule.

6. Clause use in practice

An agency may be unable to tell at the time of acquisition whether items will support combat or contingency operations. The contracting officer should then not rely on those exceptions (DFARS 225.7003-5(c)). The contracting officer should include the appropriate specialty metals clause or provision instead. If a contract requires a variety of line items containing specialty metals but only some are subject to the domestic restrictions, the contracting officer identifies in the Schedule those that are (DFARS 225.7003-5(d)).

The exceptions to the restriction are covered in exceptions to the specialty metals rule, and determinations and waivers in specialty metals waivers and determinations.

Key terms

Specialty metal	Certain high-alloy steels, nickel and cobalt alloys, titanium and zirconium.
Six listed items	Aircraft, missile or space systems, ships, tank or automotive items, weapon systems and ammunition.
Produce	Atomization, sputtering or final consolidation of non-melt derived metal powders.
DFARS 252.225-7008	The clause for specialty metal delivered as an end item.
DFARS 252.225-7009	The clause for listed items and components containing specialty metal.

Every statement above links to the document behind it. The full source list for this piece is on the sources page.

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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