8. Provide Protection and an Incentive to U.S. Manufacturers and Create Jobs

Comment: Many respondents addressed the need to protect and incentivize U.S. industry and to create U.S. jobs. Some respondents stated that the current definition encourages the use of foreign metals, while discouraging investment in domestic industry. These respondents also stated that excluding quenching and tempering processes would provide a more financially secure market and provide an incentive for U.S. manufacturers to innovate. Many respondents indicated that changing the definition would increase specialty metal steel production and increase the number of jobs in the United States.

DoD Response: Melting is only one stage in a multi-step process that is used to produce a product with properties that meet the requirements of an application, i.e., specifications. Quenching and tempering are not considered as "low-value finishing processes" (see preamble to final rule under DFARS Case 2008-D003, 74 FR 37630, July 29, 2009). The proposed change to the definition of "produced" may provide a more financially secure market to large specialty metals steel manufacturers, but the large, complex, and highly segmented specialty metal industry has many other stakeholders. The specialty steel industry appears to be thriving. Therefore, although not required by the law, for the reasons stated in section II.B.7. of this preamble, DoD is proposing to eliminate quenching and tempering of steel armor plate from the definition of "produce."