Monthly Archives: November 2019

FAR / DFARS CASE UPDATE (22 November 2019)

Status updates from the ‘Open Cases Reports’ …

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Federal Acquisition Regulation: Reporting of Nonconforming Items to the Government-Industry Data Exchange Program

Final rule. … DoD, GSA, and NASA are issuing a final rule amending the Federal Acquisition Regulation (FAR) to require contractors and subcontractors to report to the Government-Industry Data Exchange Program certain counterfeit or suspect counterfeit parts and certain major or critical nonconformances.

This final rule is available from the Federal Register

The following is a summary of significant changes from the proposed rule under FAR Case 2013-002 …

“The final rule is significantly descoped.

  • It does not apply to contracts and subcontracts for the acquisition of commercial items, including commercially available off-the-shelf (COTS) items.
  • Section 818(c)(4) of the NDAA for FY 2012 will not apply to contracts and subcontracts at or below the simplified acquisition threshold (SAT).

  • Rather than applying to all supplies, in addition to the requirements for section 818(c)(4) with regard to electronic parts for DoD, the rule focuses on supplies that require higher-level quality standards or are determined to be critical items (definition added).

  • The rule also exempts
    • medical devices that are subject to the Food and Drug Administration reporting requirements at 21 CFR 803;
    • foreign corporations or partnerships that do not have an office, place of business, or paying agent in the United States;
    • counterfeit, suspect counterfeit, or nonconforming items that are the subject of an on-going criminal investigation, unless the report is approved by the cognizant law- enforcement agency; and
    • nonconforming items (other than counterfeit or suspect counterfeit items) for which it can be confirmed that the organization where the defect was generated (e.g., original component manufacturer, original equipment manufacturer, aftermarket manufacturer, or distributor that alters item properties or configuration) has not released the item to more than one customer.

  • Flowdown to subcontracts is similarly descoped. The contractor is prohibited from altering the clause other than to identify the appropriate parties. …”



NDAA 2020 sections re counterfeit parts avoidance and trusted microelectronics

National Defense Authorization Act for Fiscal Year 2020 (H.R.2500) includes a few sections relevant to counterfeit parts avoidance and trusted microelectronics …

Section 230C, Trusted Supply Chain and Operational Security Standards for microelectronics
“… the Secretary shall establish trusted supply chain and operational security standards for the purchase of microelectronics products and services by the Department. …”

Section 254, Funding for Anti-Tampering Hetrogenous Integrated microelectronics
“… the amount authorized to be appropriated … is hereby increased by
$5,000,000 (with the amount of such increase to be made available for
anti-tamper heterogeneous integrated microelectronics). …”

Section 255, Briefing On Use of Blockchain Technology for Defense Purposes
“… the Under Secretary of Defense for Research and Engineering shall provide to the congressional defense committees a briefing on the potential use of distributed ledger technology for defense purposes. …”

Section 855, Supply Chain Risk Mitigation Policies to be Implemented Through Requirements Generation Processes
“… 10 U.S.C. 2302 note) is amended– … Development of tools for implementing supply chain risk management policies during the generation of requirements for a contract. …”


Thank you, Gerald Bogert.

FAR / DFARS CASE UPDATE (8 November 2019)

Status updates from the ‘Open Cases Reports’ …

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FAR / DFARS CASE UPDATE (1 November 2019)

Status updates from the ‘Open Cases Reports’ …

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