March 15, 2006 

Re: Compliance with Department of Defense FAR Supplement (DFARS) 252.225-7014, "Preference For Domestic Specialty Metals", Alt I 

Attention: Director of Sales 


Dear Valued Supplier,

The following letter refers to DFARS (Defense Federal Acquisition Regulation Supplement) documents, which may be accessed at the following Web Links. Please go to these Links to review the documents in conjunction with this Letter (If a Link does not work by clicking on it, please copy and paste it into the address bar of your Internet browser):

 

 

DFARS 252.225-7014:

http://www.tycoelectronics.com/supplier/docs/DFARS/252.225-7014.pdf

DFARS 225.872-1:

http://www.tycoelectronics.com/supplier/docs/DFARS/225.872-1.pdf

DFARS Specialty Metals Matrix table: 

http://www.tycoelectronics.com/supplier/docs/DFARS/Specialty_Metals_Matrix.pdf

 

 

In supplying products and services to its customers, Tyco Electronics Corporation (“Tyco Electronics”) is committed to complying with all applicable laws, regulations and contractual requirements. Compliance with DFARS 252.225-7014, Alt I has recently received a substantial amount of attention from the Department of Defense (DoD) as over the past few years there have been several instances of violations of this clause with “complex and broad consequences.” The purpose of this letter is to re-emphasize the importance of your continued compliance with all contractual provisions and requirements in performing work for Tyco Electronics including those applicable to products in support of a DoD program that contain specialty metals.

The DFARS 252.225-7014, Alt I clause prohibits the prime contractor and all suppliers at every tier from incorporating “specialty metals” (as defined in the clause) into military parts, components and/or end item deliverables unless the specialty metals have been melted in the United States, its outlying areas, or a qualifying country listed in DFARS 225.872-1, contracting with qualifying country sources. Articles manufactured in a qualifying country, regardless of where the specialty metal may have been melted, are not subject to the requirement. Note, for all products sold to Tyco Electronics in support of a DoD program, you are required to flow DFARS 252.225-7014, Alt I clause down to your suppliers with instructions that they must in turn flow the clause down to their suppliers.

Substantial adverse consequences may be imposed for failure to comply with DFARS 252.225-7014, including government investigations, delayed deliveries to DoD customers, termination for default, monetary withholds and other sanctions. Therefore, Tyco Electronics expects each supplier to comply fully with all purchase order terms and conditions and other requirements, including those imposed by DFARS 252.225-7014, Alt I. Please make certain that you are using only compliant specialty metals to manufacture articles supplied to Tyco Electronics in support of a DoD program and notify us immediately of any non-compliant part numbers. 

The Web Link above to the Specialty Metals Matrix table contains a list of metals and metal alloys that have been deemed to be “specialty metals” by Tyco Electronics. The specialty metals table found there is not intended to be an all inclusive listing of all potential specialty metals and may be updated periodically. 

To reiterate the importance of this clause and its flowdown it is imperative that you go to the Links provided above and carefully review each of the referenced documents. It is each sub-tier supplier’s sole responsibility to ensure their company’s compliance with this requirement, when flowed down to you by Tyco Electronics. It is also your company’s sole responsibility to further flowdown this requirement to your sub-tier suppliers. 


If you have any questions or comments concerning this matter, please contact your local Tyco Electronics Purchasing Representative.


Sincerely, 


Pamela A. Johnson
Director Purchasing, GIC Business Unit North America
Tyco Electronics
A tyco INTERNATIONAL LTD Company