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NSIAD-83-37 1 (1983-08-30)

handle is hein.gao/gaobabnda0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 ACcounting O xfce pt a fn *eDg bas t e e approva NATIONAL SECURITY AND by the OiCe Of conor Jo SP(Cifa INTERNATIONAL AFFAIRS DIVISION B-208826 RELEASED AUGUST 30, 1983 LM122470 The Honorable John Murtha, Chairman Congressional Steel Caucus House of Representatives Subject: Defense Department Waivers of Domestic Specialty Metals Preference and Other Requested Information (GAO/NSIAD-83-37) Dear Mr. Chairman: This report responds to Chairman Gaydos' May 13, 1982, let- ter as modified by subsequent discussions with your office. It provides information on Defense Department (1) waivers of domes- tic procurement restrictions for purchases of specialty metals, (2) procurements restricted to domestic and Canadian sources for reasons of national security or industrial mobilization, and (3) projected steel requirements for fiscal year 1983. Your office also asked us to review information supplied by the Corps of. Engineers on its foreign source awards for steel and steel- related products. This report addresses both requests and will conclude our series of responses to Chairman Gaydos' request. DEFENSE WAIVERS OF SPECIALTY METALS PROVISION The 1973 Department of Defense Appropriation Act contained the first prohibitions on Defense purchases of foreign specialty metals. (See p. 4 for definition of specialty metals.) Section 724 of the Act directed Defense to satisfy its specialty metals requirements from stocks produced in the United States. The mil- itary departments, however, were permitted to waive the provision under certain circumstances, most notably when U.S. produced specialty metals were not available when needed. The specialty metals provision remained essentially intact until small purchases of specialty metals (amounts not exceeding $10,000) were excluded from coverage in the 1977 Department of Defense Appropriation Act. (483363)

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