Compliance is fundamental when contracting within the defense sector to maintain national security and industrial integrity. Among the myriad regulations, the Defense Federal Acquisition Regulation Supplement (DFARS) Specialty Metals Clause is vital for companies, such as Thomas & Skinner, that supply high-performance metals (HPMs). Its purpose is to ensure the integrity and resilience of the domestic industrial base, guaranteeing that the materials essential for defense applications are sourced and processed in a manner that supports American economic and strategic interests.

The Berry Amendment and DFARS 252.225-7009

The Specialty Metals Clause originated from the Berry Amendment, established in 1973. The Berry Amendment was enacted to safeguard the domestic industrial base for defense production by restricting the Department of Defense (DOD) from acquiring certain items that were not grown, reprocessed, reused, or produced in the United States. Over time, these provisions have evolved and are now codified primarily in DFARS 252.225-7009, “Restriction on Acquisition of Certain Articles Containing Specialty Metals.” DFARS 252.225-7009 requires that specialty metals used in DoD contracts be melted in the U.S. or a qualifying country. This ensures a secure, reliable, and domestically controlled supply of critical materials, supporting the U.S. industrial base, growing American manufacturing jobs, and reducing supply chain vulnerability, especially during conflicts or emergencies.

What are Specialty Metals?

The DFARS Specialty Metals Clause applies to a specific and critical range of materials. These are not ordinary metals but high-performance alloys designed for demanding applications within the defense and aerospace sectors. Each is characterized by its unique properties, such as extreme strength, corrosion resistance, high-temperature stability, and specific magnetic or electrical characteristics. This regulation applies to:

• Steel: Defined by its chemical composition, specifically:
  • Maximum alloy content exceeding 1.65% manganese, 0.60% silicon, or 0.60% copper.
  • Containing more than 0.25% of elements like aluminum, chromium, cobalt, molybdenum, nickel, niobium (columbium), titanium, tungsten, or vanadium.
• Metal Alloys:
  • Nickel or iron-nickel alloys: Contain a total of alloying metals (excluding nickel and iron) in excess of 10%.
  • Cobalt alloys: Contain a total of alloying metals (excluding cobalt and iron) in excess of 10%.
• Titanium and Titanium Alloys
• Zirconium and Zirconium Alloys
• Certain Tungsten Alloys and Powders: Particularly those sourced from restricted countries.

Thomas & Skinner’s DFARS-Compliant Specialty Metals

Our commitment to DFARS compliance is an intrinsic part of our operational integrity. We ensure that our materials not only meet the most stringent quality and performance standards but also fully comply with DFARS and ITAR (International Traffic in Arms Regulations) regulations. Our dedication to these standards underscores our role as a trusted partner in national security. Our product line at Thomas & Skinner is meticulously engineered to meet the demanding requirements of the defense and aerospace industries, reflecting our vast understanding of the regulatory landscape and the technical needs of our customers. This includes:

• Alnico Magnets: These powerful, permanent magnets are crucial in a wide array of defense applications, including sensors, guidance systems, specialized motors, and actuators. Our Alnico magnets are produced with full DFARS compliance, ensuring their suitability for sensitive defense projects and applications.
• Transformer Laminations: Our Transformer Laminations are made from
  Grain-Oriented Electrical Steel (GOES). GOES is a specialized steel used in the cores of power transformers and inductors, critical for efficient energy transfer in defense electronics and power systems. Our GOES laminations adhere strictly to DFARS requirements, guaranteeing the integrity of electrical components in military hardware.
• Tungsten Heavy Alloys (WHAs): These high-density alloys are invaluable for applications that require significant mass in a confined space, such as kinetic energy penetrators, counterweights in aerospace applications, and radiation shielding. Our WHAs are manufactured in compliance with DFARS, providing superior performance and regulatory assurance.

By adhering to the DFARS Specialty Metals Clause, Thomas & Skinner plays a crucial role in maintaining a strong and resilient domestic supply chain. This commitment ensures that the defense and aerospace industries have consistent access to high-quality, U.S.-melted specialty metals, thereby reinforcing national security and operational readiness.

Becoming DFARS Compliant for High-Performance Metals Manufacturers

For high-performance metals manufacturers, like Thomas & Skinner, achieving and maintaining DFARS compliance is a multi-faceted and ongoing process that requires strict attention to detail, rigid internal controls, and a thorough understanding of the regulations.

1. Understanding the Regulations: The first and most critical step is to thoroughly understand the specifics of DFARS 252.225-7009 and its implications. This involves reviewing the clause in detail, understanding the definitions of “specialty metals” and “qualifying countries,” and grasping the scope of its application. Manufacturers must also be aware of any updates or amendments to the regulation.
2. Supply Chain Integrity: The core of DFARS compliance for specialty metals lies in the origin of the raw materials, specifically the melt. Manufacturers must establish strict protocols for verifying that all specialty metals used in their products for DOD contracts are melted in the United States or a qualifying country. This involves:
   • Certificates of Conformance (CoCs): Requiring CoCs from all upstream suppliers that explicitly state the melt origin of the specialty metals. These CoCs must be traceable to the specific material batches.
   • Auditing Suppliers: Conducting regular audits of suppliers to ensure their compliance processes are robust and accurate. This can involve on-site visits and review of their documentation.
   • Contractual Flow-Down: Ensuring that DFARS compliance requirements are adhered to by all sub-tier suppliers in purchasing contracts.
3. Internal Process Control and Documentation: Manufacturers must implement robust internal controls to track and document the entire lifecycle of specialty metals from procurement to finished product. This includes:
   • Material Segregation: Implementing procedures to segregate compliant specialty metals from non-compliant materials to prevent commingling.
   • Traceability Systems: Establishing comprehensive traceability systems that link raw material melts to specific production lots and finished products. This allows for quick verification of melt origin if questioned.
   • Receiving Inspection: Developing rigorous receiving inspection procedures to verify CoCs and potentially conduct independent testing to confirm material properties and origin.
   • Training: Providing regular training to procurement, quality, and production personnel on DFARS requirements and internal compliance procedures.
4. Cybersecurity Compliance (DFARS 252.204-7012): While not directly related to specialty metals, DFARS compliance also extends to cybersecurity. Manufacturers handling Covered Defense Information (CDI) must comply with NIST SP 800-171 standards. This is critical because a breach could compromise sensitive contract information, designs, or technical data, undermining national security. Implementing robust cybersecurity measures, including access controls, encryption, incident response plans, and regular audits, is essential.
5. ITAR Compliance (International Traffic in Arms Regulations): Many high-performance metal components fall under ITAR, which governs the import and export of defense-related articles and services. Manufacturers must understand their ITAR obligations, including registration with the Directorate of Defense Trade Controls (DDTC), proper classification of products, and obtaining necessary licenses for export. Severe penalties can occur with non-compliance to ITAR.

Maintaining DFARS Compliance

Maintaining DFARS compliance demands continuous commitment, adaptability, and attentiveness from manufacturers.

1. Continuous Monitoring of Regulations: The DFARS and related regulations are subject to change. Manufacturers must have a system in place to monitor for updates, amendments, and new interpretations of the clauses. Staying informed ensures that compliance remains current and effective.
2. Regular Internal Audits: Conducting regular internal audits of compliance processes is crucial. These audits help identify any gaps, weaknesses, or non-conformities before they become significant issues. Findings from internal audits should lead to corrective actions and process improvements.
3. Supplier Management: Manufacturers must continuously monitor their suppliers’ compliance, particularly when there are changes in their processes or the addition of new sub-tier suppliers. Re-evaluating supplier CoCs and conducting periodic reviews of their compliance programs are essential.
4. Employee Training and Awareness: Compliance is everyone’s responsibility. Ongoing training and awareness programs for all relevant employees are vital. This ensures that everyone understands their role in maintaining compliance, and best practices are consistently followed.
5. Documentation and Record Keeping: Maintaining detailed records of all compliance-related activities, including CoCs, audit reports, training records, and internal procedures, is essential. In the event of an audit by the DOD or a prime contractor, comprehensive documentation provides verifiable proof of compliance.
6. Adapting to New Technologies and Products: As new materials and manufacturing technologies emerge, manufacturers must evaluate how these innovations impact their DFARS compliance. This might involve re-evaluating supply chains for new alloys or developing new traceability methods.

Why Choose Thomas & Skinner?

Choosing Thomas & Skinner as a partner means entrusting your critical projects to a company committed to quality and integrity. Our customers can trust that they are receiving
high-performance metals essential for mission-critical applications, all while adhering to the most stringent regulatory requirements. Our dedication to compliance and customer satisfaction translates into:

• Secure Supply Chain: We are proud to contribute to a robust domestic industrial base. By prioritizing U.S.-sourced materials, we significantly reduce reliance on foreign sources for critical components, enhancing national security and ensuring a stable supply for your projects.
• Uncompromising Quality: Our products consistently meet and exceed the highest standards of quality and performance. This commitment to excellence is essential for the demanding environments of defense and aerospace applications.
• Regulatory Assurance: Navigating the complexities of DFARS and ITAR can be daunting. Our employees possess thorough expertise in these critical regulations, providing our customers with peace of mind. We handle the complexities of compliance so you can focus on your core mission.

For more information about our DFARS-compliant products, contact us today. Our experienced team of employee-owners is ready to assist you with all your high-performance metals needs.

Your projects will not only succeed, but will also meet every necessary regulatory requirement with confidence. Partner with Thomas & Skinner and experience the difference in collaborating with a company dedicated to compliance, quality, and customer support.