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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Public Law 108-136

House Conference Report 108-354

SEC. 828. BUY AMERICAN EXCEPTION FOR BALL BEARINGS AND ROLLER BEARINGS USED IN FOREIGN PRODUCTS.

Section 2534(a)(5) of title 10, United States Code, is amended by inserting before the period at the end the following: `, except ball bearings and roller bearings being procured for use in an end product manufactured by a manufacturer that does not satisfy the requirements of subsection (b) or in a component part manufactured by such a manufacturer'.

The Senate amendment contained a provision (sec. 834) that would amend section 2534(a)(5) of title 10, United States Code, which places limitations on the procurement of ball bearings and roller bearings other than those produced in the national technology and industrial base, by creating an exemption for ball bearings and roller bearings used in an end product or component of non-domestic origin.

The House bill contained no similar provision.

The House recedes.

Senate Report 108-046

The committee recommends a provision that would amend section 2534(a)(5) of title 10, United States Code, which places limitations on the procurement of ball bearings and roller bearings other than those produced in the national technology and industrial base, by creating an exemption for ball bearings and roller bearings used in an end product or component of non-domestic origin.

For most non-domestic end products or components, the only acceptable source for ball bearings and roller bearings, and replacement ball bearings and roller bearings is the non-domestic original equipment manufacturer or its non-domestic supplier. When this occurs, DOD must process waivers to allow procurement of the necessary ball bearings and roller bearings. This provision would relieve DOD of this requirement. At the same time, this provision would be consistent with the purpose of the domestic source restriction in that it does not seek to replace the domestic ball bearings and roller bearings that are normally found in domestic end products or components with non-domestic ball bearings and roller bearings.