H.R. 4412, NASA Authorization Act of 2014, Section 712, “Detection and Avoidance of Counterfeit Electronic Parts.”

This section would require NASA to revise the NASA Supplement for the Federal Acquisition Regulation to address the detection and avoidance of counterfeit electronic parts.

The revised regulations must provide that contractors who supply electronic parts or products including electronic parts are responsible for detecting and avoiding the use or inclusion of counterfeit electronic parts or suspect counterfeit parts in such products, and for any corrective actions that may be required to remedy the use of such parts.

The costs of counterfeit electronic parts and the cost of corrective action are not allowable costs under NASA contracts except under specified exemptions.

Section 712 sets requirements for acquisition of electronic parts by NASA contractors and subcontractors to ensure authenticity. This section requires that any contractor or subcontractor who becomes aware of a possible counterfeit part notify NASA within 30 calendar days.

Section 712 contains many requirements that are similar to Section 818 of the FY 2012 NDAA. In fact, some of the parts of the propsed NASA law would be tied to DoD’s Section 818.

Proposed Section 712 (NASA) includes some significant differences from DoD’s Section 818. For example, Section 712 is expressly limited in its coverage to:

‘‘electronic part’’ means a discrete electronic component, including a microcircuit, transistor, capacitor, resistor, or diode that is intended for use in a safety or mission critical application.

Of course, there is no guarantee that Section 712 will become law or, if it does, that it won’t be revised by Congress in some ways before it becomes law.

See …

House Committee on Space Technology, Subcommittee on SpaceCommittee Markup

Thomas.gov – Bill Summary & Status


Analysis provided by Richard N. Kuyath, Counsel, 3M Company



NOTE: Proposed Section 712 (for NASA contracts) includes significant differences from the proposed rule associated with DFARS Case 2012-D055 (for DoD contracts) …

  • Clear preference for parts acquired from original manufacturers or their authorized dealers [see Sec 712(a)(3)(A)]
  • Conditions to allow costs associated with rework or corrective action [see Sec 712(a)(2)(B)]

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