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                            NMCARS
                            ANNEX 3 - DOMESTIC NONAVAILABILITY         DETERMINATION AND SUPPORTING DOCUMENTATION
        
                  NMCARS
NMCARS
Change Number: NMCARS Change 18-22 Effective Date: 07/11/2022
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ANNEX 3 - DOMESTIC NONAVAILABILITY DETERMINATION AND SUPPORTING DOCUMENTATIONANNEX 3 - DOMESTIC NONAVAILABILITY         DETERMINATION AND SUPPORTING DOCUMENTATION       Note: This annex contains templates for Domestic Nonavailability             Determinations (DNADs) and the required supporting documentation for DNADs pursuant to             the following statutes:          10 U.S.C. 2533a (“Berry Amendment”); and          10 U.S.C. 2533b (“Specialty Metals”).          Image 0          **DEPARTMENT OF THE NAVY**          **OFFICE OF THE SECRETARY**          **1000 NAVY PENTAGON**          **WASHINGTON DC 20350-1000**          DETERMINATION OF DOMESTIC NON-AVAILABILITY          In accordance with 10 U.S.C. 2533a [Berry Amendment]             and Defense Federal Acquisition          Regulation (DFARS) 225.7002-2(b), I hereby make the             following determination concerning acquisition of the _____________[identify the end             item or program affected] ________.          FINDINGS          1. Title 10 U.S.C. 2533a requires that, unless meeting             an exception in the law, the Department of Defense is prohibited from acquiring ___             [Identify applicable class of end item, component thereof. Classes of end items                are*:* food; clothing and the materials and components thereof, other than             sensors, electronics, or other items added to, and not normally associated with,             clothing and the materials and components thereof (clothing includes items such as             outerwear, headwear, underwear, nightwear, footwear, hosiery, hand wear, belts, badges,             and insignia (See PGI 225.7002-1 for additional guidance and examples); tents,             tarpaulins, or covers; cotton and other natural fiber products; woven silk or woven silk             blends; spun silk yarn for cartridge cloth; synthetic fabric or coated synthetic fabric,             including all textile fibers and yarns that are for use in such fabrics; canvas             products; wool (whether in the form of fiber or yarn or contained in fabrics, materials,             or manufactured articles); any item of individual equipment (Federal Supply Class 8465)             manufactured from or containing any of the fibers, yarns, fabrics, or materials listed             herein; hand or measuring tools] unless produced in the United States.          2. The __ [insert name of contracting activity] __ has             an acquisition for __[identify specific item at prime contract level] ___ under             Solicitation/Contract ____[insert number]___. It was determined that this acquisition is             subject to the 10 U.S.C. 2533a requirement to buy certain articles from United States             sources and did not fall under any of the statutory exceptions. Therefore, the             implementing clause at [Delete one] 252.225-7012, Preference for Certain Domestic             Commodities / 252.225-7015, Restriction on Acquisition of Hand or Measuring Tools, was             included in the solicitation. __ [Identify prime contractor] __ has asserted that __             [identify non-compliant end item, component, part, or material] __ cannot be obtained             containing items grown, reprocessed, reused, or produced in the U.S. and has requested             approval of a determination that this __ [specify item/material] __ is not available             from domestic sources.          3. __ [Provide detail to explain what portion of the             specific item being procured at the prime contract level is compliant and what is not             compliant. Specify whether the DNAD is for an entire contract or certain deliveries. ]             __.          4. __ [Summarize the Contractor’s market research and             the Government’s analysis supporting the assertion of non-availability. Such research             and analysis should address the aspects of satisfactory quality, sufficient quantity,             required form, and time requirements including dates needed for incorporation into the             prime contract level end items. The market research and Government analysis must             accompany the request for a DNAD.]          5. ___ [Summarize the analysis of alternatives that             would not require a domestic nonavailability determination. The requiring activity’s             complete analysis must accompany          the request for a DNAD. If the acquisition was             competitive, address whether any other responding contractor(s) asserted compliant items             would be delivered and, if so, explain why the contract will be awarded to a contractor             proposing a non-compliant item.] __.          6. __ [Address and summarize the requiring activity’s             written certification with specificity stating why such alternatives are unacceptable.             The certification must accompany the          request for a DNAD and may be in the form of a PM/PEO             signature on the analysis of alternatives approving the conclusion or may be included as             part of a cover memo forwarding the request for a DNAD provided that it includes wording             to the effect that no alternatives are acceptable.] ___.          DETERMINATION          Based on the findings above, I have determined that             items grown, reprocessed, reused, or produced in the United States of satisfactory             quality and sufficient quantity, and in the required form, cannot be procured as and             when needed for the __ [specify end item/component] ___ in accordance with 10 U.S.C.             2533a(b) as implemented by DFARS 225.7002-2(b).          ___________________________________                         ___________________________________[Name]                            Secretary of the Navy                         Date                              MEMORANDUM FOR THE SECRETARY OF THE NAVY          Subject: Analysis of Market Research and Analysis of             Alternatives for ________________          1. Purpose          The purpose of this analysis is to evaluate whether             ___________ of satisfactory quality and sufficient quantity, and in the required form,             can be procured as and when needed for Contract ______________ in support of the             ________ program or if any other alternatives are acceptable. [If the Government             performed the market research itself, only the analysis of alternatives is necessary for             this memo. Additionally, the information contained herein may be contained in separate             memos, if desired.]          2. Methodology Used in Market Research          [Explain how the restricted items to be acquired or any             item of individual equipment containing the restricted item(s) were identified and what             the individual equipment items are. Specify the restricted items involved to the degree             possible.          If this request covers a group of equipment items and a             representative sample was          selected, explain the total number of items involved and             the procedures for selecting the sample. An example would be that a list of all             equipment was assembled and a random number generator was used to select a specific             percentage of the items. Note whether the items were identified by the contractor or the             Government.          Identify whether information about the restricted             items/material was provided by a          prime contractor or subcontractor for the end item or             component involved.]          3. Issues          [Summarize issues investigated relative to contractor’s             assertion of non-availability. Examples are: predominant industry location, status of             industry in qualifying countries, alternative materials/parts, US Government market             share, cost of changes, Original Equipment Manufacturer, Qualified Parts List, or any             other qualification required.]          4. Findings of Market Research          a. Materials/Suppliers – [Discuss manufacturers             contacted, location of manufacturer and sources of supply, whether the manufacturer can             track the material or items to source, degree of compliance/non-compliance asserted,             willingness to analyze items for compliance if not already known, any conclusions as to             veracity of compliance statements. If the manufacturer states its parts are compliant             but the sources of supply (vendors) contradict or undermine this statement, this should             be noted. If a manufacturer or supplier’s interpretation of the material or item             requirements is incorrect, this should be noted. Examples of this would be an assumption             that reprocessing or dying of fibers, yarns, fabrics, or materials qualified or that the             small purchase exception is applicable at lower tiers of subcontracting. If more than             one type of restricted material or item is involved in the DNAD, each should be treated             in a separate section.]          b. State of Industry – [Discuss research done on the             industry overall. This would include studies done by other organizations, annual             industry sales and the US Government market share, information obtained from sources             such as the Defense Logistics Agency, Department of Commerce or National Association of             Manufacturers, internet surveys conducted, information obtained from other DNADs,             commercial aspects of the industry. Discuss what portion of manufacturers and/or             suppliers are represented in this document and efforts to identify additional sources             through means such as notices in the Commerce Business Daily or Urgent Data Requests             through the Government Industry Data Exchange Program.]          c. Other Issues – [Discuss any other issues relevant to             this DNAD such as logistics considerations or whether an item is a critical capability             for DOD].          5. Alternatives Considered and Effects of             Compliance          a. Material/part alternatives considered and effects of             compliance – [Explain the economic and schedule consequences if compliance were mandated             for the specific material/part. This would include costs and time to build facilities,             costs of insuring compliant materials were segregated in the supply system, redesign             costs, or costs of any other alternatives considered.]          b. Alternative Acquisition Strategies Considered –             [Explain any alternatives considered to buying the noncompliant material/part. These             alternatives may include considering different end items to fulfill the requirement or             using a different component/part in the end item. Effects of alternatives in terms of             reengineering, delayed deliveries, mission impacts, etcetera, should be explained.             Address the price reasonableness of buying compliant alternatives; can the price of the             alternative be determined to be fair and reasonable?].          6. Recommendation/Signatures          [Briefly, summarize conclusions and give a             recommendation. If analysis was performed by a support contractor or an organization             other than the requiring activity, signatures should be identified to that             organization/contractor and certification of why alternatives are not acceptable should             be provided as an additional section or separate document].          [If this analysis was performed by the requiring             activity, the certification as to why alternatives are not acceptable should be included             in this section along with the requiring activity signatures.]                    Image 1          **DEPARTMENT OF THE NAVY**          **OFFICE OF THE SECRETARY**          **1000 NAVY PENTAGON**          **WASHINGTON DC 20350-1000**          DETERMINATION OF DOMESTIC NON-AVAILABILITY          In accordance with 10 U.S.C. 2533b and Defense Federal             Acquisition Regulation (DFARS) 225.7003-3(b)(5), I hereby make the following             determination concerning acquisition of the _____________[identify the end item or             program affected] ________.          FINDINGS          1. Title 10 U.S.C. 2533b requires that, unless meeting             an exception in the law, the Department of Defense is prohibited from acquiring ___             [Identify applicable end item, component thereof, unless any specialty metals contained             in the items or components are melted or produced in the United States. Restricted end             items are: aircraft; missile or space systems; ships; tank or automotive items; weapon             systems; ammunition; directly purchased specialty metal (e.g., raw stock, including bar,             billet, slab, wire, plate, and sheet; castings; and forgings) as an end item;             commercially available high performance magnets that contain specialty metal, unless             such high performance magnets are incorporated into COTS end items or subsystems; COTS             fasteners, unless the fasteners are incorporated into COTS end items, subsystems, or             assemblies, or the fasteners qualify for the commercial item exception.] This             requirement does not apply to the extent that the Secretary of the Navy determines that             end items containing compliant specialty metal of satisfactory quality and sufficient             quantity, and in the required form, cannot be procured as and when needed.          2. The __ [name of contracting activity] __ has an             acquisition for __[identify specific item at prime contract level] ___ under             Solicitation/Contract ____[insert number]___. It was determined that this acquisition is             subject to the 10 U.S.C. 2533b requirements to buy strategic materials critical to             national security from U.S. sources and did not fall under any of the statutory             exceptions. Therefore, the implementing clause DFARS 252.225-7008, Restriction on             Acquisition of Specialty Metals /252.225-7009, Restriction on Acquisition of Certain             Articles Containing Specialty Metals, [Delete one] was included in the solicitation. __             [Identify prime contractor] __ has asserted that __ [identify non-compliant end item,             component, part, or material] __ cannot be obtained containing specialty metals melted             or produced in the U.S. and has requested approval of a determination that this __             [item/material] __ is not available from domestic sources.          3. __ [Provide detail to explain what portion of the             specific item being procured at the prime contract level is compliant and what is not             compliant. Specify whether the DNAD is for an entire contract or certain deliveries.]             __.          4. __ [Summarize the Contractor’s market research and             the Government’s analysis supporting the assertion of non-availability. Such research             and analysis should address the aspects of satisfactory quality, sufficient quantity,             required form, and time requirements including dates needed for incorporation into the             prime contract level end items. (This summary should also address the determination that             the price of the item to be acquired is fair and reasonable. If the contracting officer             determines that the price would not be fair and reasonable, the Secretary of the             military department concerned may use that information in determining whether the             unreasonable price causes the compliant metal to be effectively “nonavailable.” See             DFARS PGI 225.7003-3 (b)(5)(A)) The market research and Government analysis must             accompany the request for a DNAD.]          5. __ [Summarize the analysis of alternatives to a             DNAD. The complete analysis should accompany the request for a DNAD. If the acquisition             was competitive, address whether any other responding contractor(s) asserted compliant             items would be delivered and, if so, explain why the contract will be awarded to a             contractor proposing a non-compliant item.] __.          6. __ [Address and summarize the requiring activity’s             written certification that such alternatives are unacceptable. The certification must             accompany the request for a DNAD and may be in the form of a PM/PEO signature on the             analysis of alternatives approving the conclusion or may be included as part of a cover             memo forwarding the request for a DNAD provided that it includes wording to the effect             that no alternatives are acceptable.] ___.          DETERMINATION          Based on the findings above, I have determined that             specialty metal melted or produced in the United States of satisfactory quality and             sufficient quantity, and in the required form, cannot be procured as and when needed for             the __ [specify end item/component]          ___ in accordance with 10 U.S.C. 2533b(b) as             implemented by DFARS 225.7003-3(b).          ___________________________________                         ___________________________________[Name]                            Secretary of the Navy                         Date                              MEMORANDUM FOR THE SECRETARY OF THE NAVY          Subject: Analysis of Market Research and Analysis of             Alternatives for ________________          1. Purpose          The purpose of this analysis is to evaluate whether             ___________ of satisfactory quality and sufficient quantity, and in the required form,             can be procured as and when needed for Contract ______________ in support of the             ________ program or if any other alternatives are acceptable. [If the Government             performed the market research itself, only the analysis of alternatives is necessary for             this memo. Additionally, the information contained herein may be contained in separate             memos, if desired.]          2. Methodology Used in Market Research          [Explain how directly purchased specialty metal or end             items or components/parts thereof, containing the specialty metal were identified and             what the parts are. Specify the specialty metals involved to the degree possible.]          [If this request covers a group of parts and a             representative sample was selected, explain the total number of parts involved and the             procedures for selecting the sample. An example would be that a list of all parts was             assembled and a random number generator was used to select a specific percentage of the             items. Note whether such selection was made by the contractor or the Government.]          [Identify whether information about the parts/material             was provided by a prime contractor or subcontractor for the end item or component             involved.]          3. Issues          [Summarize issues investigated relative to contractor’s             assertion of non-availability. Examples are: predominant industry location, status of             industry in qualifying countries, alternative materials/parts, US Government market             share, cost of changes, Original Equipment Manufacturer, Qualified Parts List, or any             other qualification (such as FAA approval) required.]          4. Findings of Market Research          a. Materials/Suppliers – [Discuss manufacturers             contacted, location of manufacturer and sources of supply, whether the manufacturer can             track specialty metals to source, degree of compliance/non-compliance asserted,             willingness to analyze parts for compliance if not already known, any conclusions as to             veracity of compliance statements. If the manufacturer states its parts are compliant             but the sources of supply (vendors) contradict or undermine this statement, this should             be noted. If a manufacturer or supplier’s interpretation of the specialty metal             requirements is incorrect, this should be noted. Examples of this would be an assumption             that remelting of a specialty metal qualified or that the small purchase exception is             applicable at lower tiers of subcontracting. If more than one part or type of specialty             metal is involved in the DNAD, each should be treated in a separate section.]          b. State of Industry – [Discuss research done on the             industry overall. This would include studies done by other organizations, annual             industry sales and the US Government market share, information obtained from sources             such as the Department of Commerce or National Association of Manufacturers, internet             surveys conducted, information obtained from other DNADs, commercial aspects of the             industry. Discuss what portion of manufacturers and/or suppliers are represented in this             document and efforts to identify additional sources through means such as notices in the             Commerce Business Daily or Urgent Data Requests through the Government Industry Data             Exchange Program.]          c. Other Issues – [Discuss any other issues relevant to             this DNAD such as logistics considerations or whether an item is a critical capability             for DOD.]          5. Alternatives Considered and Effects of             Compliance          a. Material/part alternatives considered and effects of             compliance - [Explain the economic and schedule consequences if compliance were mandated             for the specific material/part. This would include costs and time to build facilities,             costs of insuring compliant metals were segregated in the supply system, redesign costs,             or costs of any other alternative considered.]          b. Alternative acquisition Strategies considered             –[Explain any alternatives considered to buying the noncompliant material/part. These             alternatives may include considering different end items to fulfill the requirement or             using a different component/part in the end item. Effects of alternatives in terms of             reengineering, delayed deliveries, mission impacts, etcetera, should be explained.             Address the price reasonableness of buying compliant alternatives; can the price of the             alternative be determined to be fair and reasonable?]          6. Recommendation/Signatures          [Briefly, summarize conclusions and give a             recommendation. If analysis was performed by a support contractor or an organization             other than the requiring activity, signatures should be identified to that             organization/contractor and certification of why alternatives are not acceptable should             be provided as an additional section or separate document.]          [If this analysis was performed by the requiring             activity, the certification as to why alternatives are not acceptable should be included             in this section along with the requiring activity signatures.]
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