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. …”



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