New Specialty Metals Rules for DFARS Compliance Compliance methods under FY 08 law: Use only US or qualifying country specialty metals Make/Sell COTS fasteners for COTS items Make commercial fasteners AND certify purchase 50% domestic metals per year Distributors would have to obtain self-certification from manufacturers See for list of manufacturers and distributors utilizing 50% provision and find out how to be listed – must renew self-certification on an annual basiswww.indfast.org Sell fasteners under contract issued before 7/26/08 using fastener DNAD - the fastener DNAD expires for use on new contracts on 7/26/08 1

New Specialty Metals Rules (cont.) Utilize Prime Contractor’s one-time waivers (product made before 10/17/06; item accepted by Govt before 9/30/10) Any combination - website with all current rules (DoD Class Deviation), contract language, etc. Proposed Rule Public Comment Period Closed September 19, 2008 Final rule expected with few, if any, changes in Spring

New Specialty Metals Rules (cont.) Summary Fastener manufacturers and distributors have substantial flexibility under new law, but you must be proactive Understand your options Communicate clearly with your customers 3