Increasing Regulations are Pushing Up the Cost of Doing Business with the DoD .
Increasing Regulations are Pushing Up the Cost of Doing Business with the DoD .
Are the Opportunities Worth It ?
Manufacturers have never loved regulations and compliance , but at PNDC we hear every day from manufacturers who are increasingly frustrated . There are more rules for key certifications like ITAR , ISO and EAR , not to mention the pending CMMC regulations which appear to be poised to go into effect in 2024 .
Denise Ryser
EXECUTIVE DIRECTOR Email : denise @ pndc . us
PACIFIC NORTHWEST DEFENSE COALITION ( PNDC )
Contact Information
Pacific Northwest Defense Coalition ( PNDC ) www . pndc . us Toll free : 1-888-701-PNDC info @ pndc . us
Still , the opportunities are undeniable . The Defense Federal Acquisition Regulation Supplement ( DFARS ) Buy American Act clause is poised to expand the domestic content threshold requirement to align with the Federal Acquisition Regulation . This means that domestic content for cost of components will go from 55 percent to 65 percent in 2024 and 75 percent by 2029 .
Howard Roth , a partner with Smith Currie Oles said , “ The point of course is to allow more U . S . companies to get into the space and create American jobs , but that also means that prime contractors and those farther up the chain have to add more U . S . manufacturers — and if they can ’ t do that due to lack of U . S . suppliers they have to request a waiver , which is increasingly difficult to get .”
American Precision Industries ( API ) has been preparing to take advantage of the increasing opportunity by adding AS9100D and medical device ISO13485 certifications , so they can expand their partnerships in Washington and Oregon , especially in aerospace .
“ This was a decision that required a great deal of hard work for our QC manager as well as our upper management team ,” said Todd Cook of API , “ But we realized that these two certifications were vital to our new sales and marketing plan . It ’ s critical to be able to differentiate API from other shops out there .”
38 NORTHWEST AEROSPACE NEWS