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1 1 (December 15, 2021)

handle is hein.crs/govegsx0001 and id is 1 raw text is: Congressional Research Service informing the legislative debate since 1914 Updated December 15, 2021 Defense Primer: Acquiring Specialty Metals and Sensitive Materials Some metals (such as titanium and tungsten) and metal alloys, as well as strong permanent magnets known as rare earth magnets, are critical to U.S. Department of Defense (DOD) operations. These materials are frequently integrated into components (e.g., integrated circuits, electrical wiring, or optoelectronic devices) or structures (e.g., aircraft fuselages or ship hulls) of the military platforms and weapon systems that enable warfighting capabilities. A rare earth element is one of 17 chemical elements, including the 15 metallic chemical elements with atomic numbers 57 through 71, as well as the chemically similar elements scandium and yttrium. These materials are considered rare in spite of their relative abundance throughout the Earth's crust, as the extraction and production of such materials can be difficult and costly. Rare earth magnets produced using rare earth elements are the strongest known permanent magnets. There are few, and, in some cases, no known alternatives for many of these materials, which often have unique physical properties, such as high material strength coupled with low density, or resistance to various forms of corrosion. Many of these materials are subject to sourcing restrictions or prohibitions in DOD acquisitions. Congress established these restrictions or prohibitions to protect the domestic materials industry and ensure the United States maintains critical production capabilities and capacity within the defense industrial base. Statutory restrictions establish that some items that incorporate certain metals and metal alloys known as specialty metals generally must be produced or manufactured in the United States. Other statutory prohibitions establish that some items that incorporate certain sensitive materials may not be acquired from specified sources. Sourcing Restrictions in Acquisitions For more information, see CRS Report R43354, Domestic Content Restrictions: The Buy American Act and Complementary Provisions of Federal Law. Acquiring Speciakty Metals Domestic sourcing restrictions for DOD acquisition of specialty metals first appeared in the FY1973 DOD appropriations bill (P.L. 92-570) as an expansion of domestic content restrictions on Departmental purchases of food, clothing, and other goods. These restrictions are commonly known as the Berry Amendment. The Berry Amendment sourcing restrictions were included in annual DOD appropriations legislation from 1941 until 2002, when they were permanently codified as 10 U.S.C. §2533a by the FY2002 National Defense Authorization Act (NDAA, P.L. 107-107). In 2006, the FY2007 NDAA (P.L. 109-364) moved the specialty metal-related provisions from 10 U.S.C. §2533a to 10 U.S.C. §2533b. The domestic sourcing mandate for specialty metals only applies to the Defense Department. Applicability of Restrictions The specialty metals domestic sourcing restrictions apply to all DOD prime contracts and subcontracts. For the purposes of the restriction, 10 U.S.C. §2533b defines a specialty metal as any of the following metals or metal alloys: * Steel with a maximum alloy content exceeding one or more of the following limits: manganese, 1.65%; silicon, 0.60%; copper, 0.60%; or containing more than 0.25% of any of the following elements: aluminum, chromium, cobalt, niobium (columbium), molybdenum, nickel, titanium, tungsten, or vanadium. * Metal alloys consisting of nickel, iron-nickel, and cobalt base alloys containing a total of other alloying metals (except iron) in excess of 10%. * Titanium and titanium alloys. * Zirconium and zirconium base alloys. DOD uses the foundry location where the final melting or similar production of a specialty metal takes place to determine its origin. For example, titanium sponge- unwrought titanium that has not been melted-that has been manufactured in Kazakhstan, shipped to the United States, and melted into ingots at a foundry in Ohio would be considered compliant with the specialty metals domestic sourcing mandate. Under the specialty metals restrictions, DOD generally may not acquire certain military platforms or weapon systems-or components of these platforms and systems-that contain any amount of a specialty metal that was not melted or produced in the United States. The restriction applies to aircraft; missile and space systems; ships; tank and automotive items; weapon systems; and ammunition. DOD and its prime contractors are also prohibited from directly acquiring any specialty metal (e.g., metal sheets, rods, plates) if it was not melted or produced in the United States. Exceptions Law and policy provide a number of exceptions to the specialty metals sourcing mandate, including the following selected examples: * circumstances where the Secretary of Defense or a secretary of a military department determines that compliant specialty metal of satisfactory quality and sufficient quantity, and in the required form, cannot be procured as and when needed;

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