Thoughts Re New Regulations on Reporting of Nonconforming Items to the Government-Industry Data Exchange Program

DoD, GSA, and NASA recently issued a final rule amending the Federal Acquisition Regulation (FAR) to require contractors and subcontractors to report to the Government-Industry Data Exchange Program (GIDEP) certain counterfeit or suspect counterfeit parts and certain major or critical nonconformances. This FAR amendment also requires contractors and subcontractors to screen GIDEP reports to avoid the use and delivery of counterfeit or suspect counterfeit items or delivery of items that contain a major or critical nonconformance. After the review of public comments submitted in response to the proposed rule under FAR Case 2013-002, and after weighing the risks of failure against the cost of compliance, the final rule was “significantly descoped”.
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NASA Federal Acquisition Regulation Supplement: Detection and Avoidance of Counterfeit Parts

NASA is proposing to amend the NASA Federal Acquisition Regulation Supplement (NFS) to add new text that requires covered contractors and subcontractors at all tiers to use electronic parts that are currently in production and purchased from the original manufacturers of the parts, their authorized dealers, or suppliers who obtain such parts exclusively from the original manufacturers of the parts or their authorized dealers. If the contractor does not purchase electronic parts as described above, they must purchase the parts from a NASA identified supplier or contractor-approved supplier. The contractor will then assume responsibility and be required to inspect, test and validate authentication of the parts. The contractor will also be required to obtain traceability information and provide this information to the contracting officer upon request. The selection of contractor-approved
suppliers is subject to review and audit by the contracting officer.

More at FederalRegister.gov

ICE HSI arrests Chinese national in $23.8 million scheme to sell counterfeit laptop computer batteries on eBay and Amazon

“LOS ANGELES – A San Gabriel Valley man was arrested today on federal criminal charges that he participated in a $23.8 million scheme to manufacture and ship counterfeit laptop computer batteries and other electronics from China to the United States, where the bogus batteries were sold to unsuspecting buyers in online marketplaces. … ”

More at DHS.gov

Ghosts in the Clouds: Inside China’s Major Corporate Hack — WSJ

A Journal investigation finds the Cloud Hopper attack was much bigger than previously known

“In one of the largest-ever corporate espionage efforts, cyberattackers alleged to be working for China’s intelligence services stole volumes of intellectual property, security clearance details and other records from scores of companies over the past several years. … ”

More at WSJ.com

S.1790 – National Defense Authorization Act for Fiscal Year 2020

12/20/2019 – Signed by President; Became Public Law No: 116-92

Details at Congress.gov

 

FAR / DFARS CASE UPDATE (6 December 2019)

Status updates from the ‘Open Cases Reports’ …

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Update re: NDAA 2020 sections re counterfeit parts avoidance and trusted microelectronics

The Senate Bill for the National Defense Authorization Act for Fiscal Year 2020 (S.1790) modifies sections relevant to counterfeit parts avoidance and trusted microelectronics included in the House Bill. Here are the modified sections based on Conference report H.Rept.116-333 …

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FAR / DFARS CASE UPDATE (22 November 2019)

Status updates from the ‘Open Cases Reports’ …

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