The U.S. Defense Federal Acquisition Regulation Supplement (DFARS) has been amended to help clarify
the meaning of "component" and "domestic manufacture," as they apply to purchasing foreign-made products.
The definitions are particularly important to the bearing industry, because they specifically define
bearings and components, and the clarification impacts bearings sourced not just for assemblies, but also
for their for subassemblies and below.
Specifically, paragraph B of
225-7001
now specifically includes bearings when looking at purchases of end products, and as components within
another component, purchased as an end product.
In
225.900-70,
the term "component" has also been revised and clarified as, "any item supplied to the Government as part of
an end product
or of another component."
In the past, DFARS restrictions on bearing acquisition had
only applied to bearings when they were part of a final component or assembly; it did not
include bearings which were used in sub-assemblies or sub-components. That "loophole" has now been clarified
and extended to include all bearings, no matter where they are in the component or sub-component mix.
DFARS 252.225-7016, "Restriction on Acquisition of Ball and Roller Bearings" is here:
DFARS 252.225-7016
The important clauses in 225-7016 are:
- (a) Definitions. As used in this clause
- (1) “Bearing components” means the bearing element, retainer, inner race, or outer race.
- (2) “Component,” other than bearing components, means any item supplied to the Government as part of an end product or of another component.
- (b) Except as provided in paragraph (c) of this clause, all ball and roller bearings and ball and roller bearing
components delivered under this contract, either as end items or components of end items, shall be wholly manufactured
in the United States, its outlying areas, or Canada. Unless otherwise specified in this contract, raw materials, such
as preformed bar, tube, or rod stock and lubricants, need not be mined or produced in the United States, its outlying
areas, or Canada.
- (c) The restriction in paragraph (b) of this clause does not apply to ball or roller bearings that are acquired as—
- (1) Commercial components of a noncommercial end product; or
- (2) Commercial or noncommercial components of a commercial component of a noncommercial end product.