Specialty Metals Update: HASC Criticizes DCMA'S January 2008 Specialty Metals Class Deviation

The regulations prohibiting the Department of Defense from purchasing products containing foreign specialty metals may be changing. Again.

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New Specialty Metals Rules Add To Existing Confusion; DOD Suggests Single Process Initiative May Help Streamline Application

On March 21, 2008, the Executive Director of Contracts for the Defense Contract Management Agency, David E. Ricci, indicated that DCMA is considering a single process initiative (SPI) approach to streamline the morass of specialty metals rules that have come about in the last 18 months due to various legislative and regulatory changes.  This announcement follows a new Class Deviation issued by DCMA on January 29, 2008 to implement the latest legislative directives, superseding prior announcements.

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New Legislation Would Loosen Specialty Metals Restrictions While Leaving Heavy Administrative Burdens on Industry

On December 14, 2007, Congress passed H.R. 1585, the 2008 Defense Authorization Bill. President Bush stated on December 28, 2007 that he intended to "pocket veto" the Bill because he viewed a particular section as potentially jeopardizing the ability of the Iraqi government to focus its resources on rebuilding. Regardless of whether the President's "pocket veto" is successful (Speaker Pelosi has stated that the House is currently considering whether to revise the legislation), it appears that there is more than enough support to override now that Congress has returned to session. Consequently, the provisions of H.R. 1585 are likely to become law one way or another.

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