Kent Thies

National Marketing Manager

Evraz Oregon Steel

503-240-5252

thiesk@osm.com

September 15, 2008

Defense Acquisition Council

Attn: Ms. Amy Williams

USD(AT&L), DPAP (DAR),

IMD 3D139

3062 Defense Pentagon

Washington, DC 20301-3062

RE: DFARS Case 2008-D0003; Defense Federal Acquisition Regulation Supplement; Restriction on Acquisition of Specialty Metals

Dear Ms. Williams:

Please accept these comments to DFARS Case 2008-D003 published July 21, 2008, in 73 Federal Register 42300. The proposed rule is intended to implement section 842 of the National Defense Authorization Act for Fiscal Year 2007 and sections 804 and 884 of the National Defense Authorization Act for Fiscal Year 2008. Evraz, Inc. NA, (“Evraz”) headquartered in Portland, Oregon, operates plants in Portland, Oregon, Claymont, Delaware and Pueblo, Colorado. It produces armored steel for the Department of Defense as both a prime and subcontractor. Evraz supports the proposed rule with particular support for the definition of “produced” in the proposed DFARS clause 252.225-70X2.

From August 2007 through August 2008, Evraz understands the Department of Defense required approximately 240,000 tons of armored steel to support its armor programs. The armored steel was and continues to be needed to produce MRAPs, up-armored HMMWVs, and military vests. Evraz estimates that its facility in Portland, Oregon, supplied the Department of Defense with more than 40% of the required armored steel.

To produce armored steel, Evraz must convert the slabs of alloy steel it receives from Mexico to armored steel plates. To do this, Evraz alters the physical characteristics of the alloy steel to a uniquely hard steel through the process of “quenching and tempering.” To harden the steel by quenching, the steel must be heated into the HYPERLINK "http://en.wikipedia.org/wiki/Austenite" \o "Austenite" austenitic crystal phase and then quickly cooled. The quick cooling transforms a portion of the austentite to HYPERLINK "http://en.wikipedia.org/wiki/Martensite" \o "Martensite" martensite, a hard brittle crystalline structure. Although martensite is hard, it is also brittle and can easily shatter. The martensite must thus go through a tempering process to add a new level of toughness. Tempering requires more heating and cooling. In the end, the delivered armored steel is a different product with different physical characteristics than the originating alloy steel. The proposed rule recognizes that quenching and tempering is a production process.

Evraz applauds the Department’s efforts to increase the size of the U.S. industrial base that can supply armored steel to the Department of Defense. Limiting the definition of “produced” would merely shrink the size of the U.S. industrial base that can provide, on a competitive basis, armored steel to military troops.

Evraz respectfully requests that you consider these comments,

Kent Thies

Kent Thies, National Marketing Manager, Evraz Oregon Steel

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14400 N. Rivergate Blvd., Portland OR 97203 Phone: (503) 286-9651 Fax: (503) 240-5777 www.EvrazIncNA.com