As prescribed in 225.7018-5, unless acquiring items outside the United States for use outside the United States or a nonavailability determination has been made in accordance with 225.7018-4, use the clause at 252.225-7052, Restriction on Acquisition of Certain Magnets and Tungsten, in solicitations and contracts, including solicitations and contracts using FAR part 12 procedures for the acquisition of commercial items, that exceed the simplified acquisition threshold.
RESTRICTION ON THE ACQUISITION OF CERTAIN MAGNETS AND TUNGSTEN (APR 2019)
(a) Definitions. As used in this clause—
“Covered material” means—
(1) Samarium-cobalt magnets;
(2) Neodymium-iron-boron magnets;
(3) Tungsten metal powder; and
(4) Tungsten heavy alloy or any finished or semi-finished component containing tungsten heavy alloy.
“Covered country” means—
(1) The Democratic People’s Republic of North Korea;
(2) The People’s Republic of China;
(3) The Russian Federation; and
(4) The Islamic Republic of Iran.
(1) Except as provided in paragraph (c) of this clause, the Contractor shall not deliver under this contract any covered material melted or produced in any covered country, or any end item, manufactured in any covered country, that contains a covered material (10 U.S.C. 2533c).
(2) For samarium-cobalt magnets and neodymium iron-boron magnets, this restriction includes—
(i) Melting samarium with cobalt to produce the samarium-cobalt alloy or melting neodymium with iron and boron to produce the neodymium-iron-boron alloy; and
(ii) All subsequent phases of production of the magnets, such as powder formation, pressing, sintering or bonding, and magnetization.
(3) The restriction on melting and producing of samarium-cobalt magnets is in addition to any applicable restrictions on melting of specialty metals if the clause at 252.225-7009, Restriction on Acquisition of Certain Articles Containing Specialty Metals, is included in the contract.
(c) Exceptions. This clause does not apply—
(1) To an end item that is—
(i) A commercially available off-the-shelf item, other than—
(A) A commercially available off-the-shelf item that is 50 percent or more tungsten by weight; or
(B) A tungsten heavy alloy mill product, such as bar, billet, slab, wire, cube, sphere, block, blank, plate, or sheet, that had not been incorporated into an end item, subsystem, assembly, or component;
(ii) An electronic device, unless otherwise specified in the contract; or
(iii) A neodymium-iron-boron magnet manufactured from recycled material if the milling of the recycled material and sintering of the final magnet takes place in the United States.
(2) If the authorized agency official concerned has made a nonavailability determination, in accordance with section 225.7018-4 of the Defense Federal Acquisition Regulation Supplement, that covered materials of satisfactory quality and quantity, in the required form, cannot be procured as and when needed at a reasonable price from a source other than a covered country.
(End of clause)