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Immediate Release

DOD Enters $13.8 Million Agreement to Expand Domestic Manufacturing to Strengthen U.S. Supply Chains

The Department of Defense's Office of the Assistant Secretary of Defense for Industrial Base Policy (OASD(IBP)), through its Manufacturing Capability Expansion and Investment Prioritization (MCEIP) Directorate, announced it has entered a $13.8 million agreement with The Timken Company (Timken) to increase production of high-precision ball bearings at its facility in Keene, New Hampshire. Timken's high precision ball-bearings are used in defense and space-related advanced systems.

The funds, appropriated to the DPA Fund by the Additional Ukraine Supplemental Appropriations Act (Ukraine Supplemental), will be used to make operational and technological improvements at the company's facility, including upgrading equipment and operator training.  Timken is also investing approximately $11 million to further expand these capabilities at the facility. Congress identified capacity for high-precision ball bearings for defense and space-related advanced systems as a Defense Industrial Base (DIB) Area of Interest in the Ukraine Supplemental, enacted in May of 2022.  The supply of these ball bearings is a constraint in increasing demand for advanced systems.

"The Office of Industrial Base Policy is moving forward with speed to support sectors of importance to American national security and deterrence," said Dr. Laura Taylor-Kale, ASD(IBP). "The Timken Company manufactures components critical to the health of critical domestic supply chains as identified by President Biden."

About the Department of Defense's Office of the Assistant Secretary of Defense for Industrial Base Policy

Industrial Base Policy is the principal advisor to the Under Secretary of Defense for Acquisition and Sustainment (USD(A&S)) for developing Department of Defense policies for the maintenance of the United States defense industrial base (DIB), executing small business programs and policy, and conduction geo-economic analysis and assessments.  The office also provides the USD(A&S) with recommendations on budget matters related to the DIB, anticipates and closes gaps in manufacturing capabilities for defense systems, and assesses impacts related to mergers, acquisition, and divestitures.  IBP monitors and assesses the impact of foreign investments in the United States and executes authorities under sections 2501 and 2505 U.S.C. Title 10.