Director, Defense Procurement and Acquisition Policy issued Class Deviation 2006 O0004, on December 6, 2006, to implement Section 842 of the National Defense Authorization Act of Fiscal Year 2007 (Pub. L. 109-364). Section 842 established the restriction on acquisition of specialty metals under a new section 10 U.S.C. 2533b. The basic memo of Class Deviation 2006-O0004 remains in effect, except for two minor corrections: (1) In the third paragraph, wherever the term “end product is used, it should be replaced with the phrase "aircraft, missile and space system, ship, tank and automotive item, weapon system, or ammunition." (2) The correct date for the one-time waiver (third paragraph on page 2) is prior to October 17, 2006.
The attachment to this Class Deviation 2007-O0011 supersedes the attachment to the class deviation 2006-O0004, and makes the following changes:
- Lists 10 U.S.C. 25336(a)(1) as a statute that is inapplicable to the acquisition of
commercially available off-the-shelf items, in accordance with 41 U.S.C. 431.
- Reiterates the clause prescription from Class Deviation 2006-O0004, except that the definition of component is clarified in accordance with PGI 225.7002-3(b)(i). The tiers apply to assemblies of major systems in the six major product categories, and do not change from contract to contract, even if an assembly that was a component of the major system is purchased separately as an end product.
- Makes no changes to the basic clause as provided in Class Deviation 2006-O0004.
- Revises Alternate I, as provided in Class Deviation 2006-O0004, by adding a definition of "commercially available off-the shelf item” in paragraph (a) and adding the exception for specialty metals contained in commercially available off the-shelf items in paragraph (c). The definition of “commercially available off the-shelf item” requires that an item be offered to the Government," without modification, in the same form in which it is sold in the commercial marketplace.
A component can be a COTS item if it is offered to the Government, without modification, as part of an end item purchased by the Government. The
installation of a component in the end product is not in itself a modification. COTS items that are modified prior to incorporation in the end item are no longer COTS items.
This class deviation is effective upon signature, and remains in effect until incorporated in the DFARS or until otherwise rescinded.