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P. L. 107-107

House Conference Report 107-333

SEC. 835. INAPPLICABILITY OF LIMITATION TO SMALL PURCHASES OF MINIATURE OR INSTRUMENT BALL OR ROLLER BEARINGS UNDER CERTAIN CIRCUMSTANCES.

(a) IN GENERAL- Section 2534 of title 10, United States Code, is amended by adding at the end the following new subsection:

(j) INAPPLICABILITY TO CERTAIN CONTRACTS TO PURCHASE BALL BEARINGS OR ROLLER BEARINGS- (1) This section does not apply with respect to a contract or subcontract to purchase items described in subsection (a)(5) (relating to ball bearings and roller bearings) for which--

(A) the amount of the purchase does not exceed $2,500;

(B) the precision level of the ball or roller bearings to be procured under the contract or subcontract is rated lower than the rating known as Annual Bearing Engineering Committee (ABEC) 5 or Roller Bearing Engineering Committee (RBEC) 5, or an equivalent of such rating;

(C) at least two manufacturers in the national technology and industrial base that are capable of producing the ball or roller bearings have not responded to a request for quotation issued by the contracting activity for that contract or subcontract; and

(D) no bearing to be procured under the contract or subcontract has a basic outside diameter (exclusive of flange diameters) in excess of 30 millimeters.

(2) Paragraph (1) does not apply to a purchase if such purchase would result in the total amount of purchases of ball bearings and roller bearings to satisfy requirements under Department of Defense contracts, using the authority provided in such paragraph, to exceed $200,000 during the fiscal year of such purchase.'.

(b) APPLICABILITY- Subsection (j) of such section 2534 (as added by subsection (a)) shall apply with respect to a contract or subcontract to purchase ball bearings or roller bearings entered into after the date of the enactment of this Act.

The Senate bill contained a provision (sec. 832) that would provide certain exceptions to the requirement in section 2534 of title 10, United States Code, to purchase ball and roller bearings from domestic sources.

The House amendment contained no similar provision.

The House recedes with an amendment that would authorize the Department of Defense (DOD) to make purchases of ball and roller bearings from other than domestic sources without obtaining a waiver under section 2534, provided that: (1) no such purchase exceeds the micropurchase threshold of $2,500; and (2) the cumulative total of such purchases does not exceed $200,000 in any fiscal year. The DOD would be required to keep track of such purchases to the extent necessary to ensure that it remains in compliance with the annual limitation.