NEW YORK DLA
Strategic Materials may resume procuring materials for the
national defense stockpile, and also is preparing to scale back
the frequency of its ferromanganese offerings.
Several materials for
procurement will be identified in the National Defense
Authorization Act for 2014, DLA chief of market research Watt
Lough told attendees at the Phoenixx International LP Metals
Day in Pittsburgh.
Material from the
stockpile has been steadily sold off since 1993, when the
Defense Department determined that inventory exceeded its needs
following the end of the Cold War.
"There is a renewed
interest on the part of Congress and the Department of Defense
to breathe new life into the national defense stockpile. We
have been getting more support for some minor legislative
changes to the statute that will allow us to act to procure,"
Lough said. "We might contract with a producer to increase
their inventory, whereby we would have a first right to
purchase that (material) or contracts to take some percentage
of their production runs. There could also be buffer stocks
that could be generated."
Such an approach would
require changes to the DLAs financing arrangements, with
the agencys revenues currently directed into government
programs such as the purchase of broadcast television spectrum,
he said. "Once thats done (in 2016), we intend to ask for
some legislative relief in funding these programs to go back to
the transaction fund to replenish the stockpile," he said.
Proposed changes will
be published in the Federal Register, and Fort Belvoir,
Va.-based DLAs 2015 annual material plan, expected to be
released in November.
The agency also will
scale back its ferromanganese offerings to a quarterly basis
when a new schedule comes into effect on Oct. 1, 2013.
Ferromanganese had been offered on a monthly basis, although no
sales of high-carbon material have been recorded since April
continue to be sold on a monthly basis.
The agency is
preparing to roll out a new website on Oct. 1 that will allow
bids for material to be submitted through a web portal.