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We're a sub on a Navy production contract awarded to us in 2007 and containing 252.225-7014 ALT 1 Specialty Metals clause. We've come to discover that our bill of material contains a number of COTS fasteners bought from McMaster Carr. Despite the flowdown in the McMaster Carr PO, they can not or will not comply with a certification as top the source of the smelted steel. We informed DCMA of a potential non-conformance and put a shipping hold on the equipment.

The awarded contract meets the effectivity period of the Class DNAD for fasteners. The fasteners in question fall under the designated FS Classes.

I don't understand how the DNAD applies to the subcontract. Our prime customer desperately needs the equipment to stay on schedule and has written a letter acknowledging the DNAD and authorizing shipment. The Government QAR would not accept the letter. We tried a mod, that was rejected as well. According to the QAR, only a Government PCO or ACO can approve use of the DNAD.

Unfortunately, the Navy PCO or ACO tell me they have no privity on our subcontract and they can't help.

Anyone have any recommendations?

Thanks, Rich

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At the risk of stating the obvious, my suggestion is to ask your prime customer to write another letter, this time instead of the prime acknowledging the DNAD and authorizing shipment, asking the Contracting Officer to acknowledge the DNAD and authorize shipment. Once the Contracting Officer provides written guidance to its prime contractor, the Government QAR won't have much latitude to reject. Depending on how your prime contract is written, you may have to ask for a prime contract mod instead of a letter. Once the prime has it in writing from the Government, the prime can pass the official word down to its sub.

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