Category Archives: Business Systems

Other DFARS Cases of Interest

A colleague referred me to two open DFARS cases that may be of interest to this audience. Both are related to counterfeit parts avoidance regulations …

DFARS 2017-D014 “Use of Commercial or Non-Government Standards”
Synopsis: Implements section 875 of the NDAA for FY 2017 (Pub. L. 114-328), which requires DoD to use commercial or non-Government standards in lieu of military specifications and standards, and encourage contractors to propose commercial or non-Government standards and industry-wide practices that meet the intent of the military specifications and standards.
Status: 05/03/2017 DARC received Quality Assurance Cmte draft proposed DFARS rule. Will discuss draft proposed DFARS rule on 05/17/2017.

DFARS 2017-D021 “Contractor Business Systems”
Synopsis: Implements sections 893 of the NDAA for FY 2017 (Pub. L. 114-328) to revise the requirements for review of contractor business systems.
Status: 01/11/2017 DARC Director tasked Ad Hoc Cmte. to draft proposed DFARS rule. Report due 03/08/2017. Report due date extended to 05/24/2017.

 

‘Contractor Counterfeit Electronic Part Detection and Avoidance Systems’ and Compliance with DFARS Clause 252.246-7007

Proposed revision B to SAE AS5553 is now in the formal balloting process. The outcome of the collaborative work between industry subject matter experts and US DoD representatives, in my view, created a proposed revision to AS5553 that will be useful toward articulating requirements for a “Counterfeit Electronic Part Detection and Avoidance System” that aligns well with recent DoD regulations.

DFARS Clause 252.246-7007 encourages the use of Government or industry recognized standards, such as AS5553, for the design, operation, and maintenance of systems to detect and avoid counterfeit electronic parts and suspect counterfeit electronic parts.  Proposed revision B includes changes to better align with DFARS Clause 252.246-7007. I strongly encourage US Defense contractors and their subcontractors, and DoD organizations to support this forthcoming revision to AS5553.

Last fall, I prepared the following paper which offers guidance to contractors and subcontractors in establishing and implementing a “Counterfeit Electronic Part Detection and Avoidance System” that complies with DFARS Clause 252.246-7007. Though this paper refers to revision A to AS5553, I believe the guidance offered remains relevant to proposed revision B to AS5553 and the forthcoming ARP6328.  ….

‘Contractor Counterfeit Electronic Part Detection and Avoidance Systems’ and Compliance with DFARS Clause 252.246-7007

 

NOTE: This paper is a compilation of material published in earlier posts (i.e. ‘Contractor Counterfeit Electronic Part Detection and Avoidance Systems’ – Parts 1 through 6, Oct and Nov 2015)

Docket DARS-2015-0038, Detection and Avoidance of Counterfeit Electronic Parts–Further Implementation (DFARS Case 2014-D005

Comment period is closed for Docket DARS-2015-0038, Detection and Avoidance of Counterfeit Electronic Parts–Further Implementation (DFARS Case 2014-D005).
Written comments are available at Regulations.gov

“A Standards-Based Way To Avoid Counterfeit Electronic Parts” – R Metzger, RJO

The following article comes from Robert Metzger, the head of the Washington, D.C. office of Rogers Joseph O’Donnell,P.C.

View From RJO: A Standards-Based Way To Avoid Counterfeit Electronic Parts

Boiling the Ocean – A review of FAR Case 2012–032: Higher-Level Contract Quality Requirements

A number of us within the aerospace and defense community have discussed the need to incorporate requirements for detection and avoidance of counterfeit electronic parts into key Quality Management System (QMS) standards (e.g. ISO 9000, AS9100, etc.). With FAR Case 2012–032, DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to include counterfeit avoidance and detection standards among other higher-level quality standards in solicitations and resultant contracts. While this is a step in the right direction, the scope of this case extends far beyond DoD and electronic parts.

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A paper on “Contractor Responsibility: Toward An Integrated Approach To Legal Risk Management”

In recent essays, I have discussed how counterfeit parts avoidance and detection has emerged as an area of business and legal risk that aerospace and defense (A&D) contractors should incorporate into compliance programs. The following article describes the current landscape of heightened US Government demands for contractor responsibility and provides a backdrop for issues I have described about the imbalanced approach to counterfeit prevention described within the proposed DFARS rule on “Detection and Avoidance of Counterfeit Electronic Parts”….

Contractor Responsibility: Toward An Integrated Approach To Legal Risk Management” By Steven A. Shaw, Mike Wagner, and Robert Nichols (March 2013)

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Counterfeit Prevention Clauses and Potential False Claims Act Exposure

In an earlier essay, I described how the pace and exuberance of counterfeit prevention requirements flow down activity on the part of prime and upper tier contractors has accelerated with the introduction of NDAA2012§818. Many observe that it has become commonplace for a number of prime and upper tier contractors to include overly broad counterfeit parts clauses in their purchase order term and conditions, largely due to speculation on the details of forthcoming regulations.

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Criteria for a “Contractor Counterfeit Electronic Part Avoidance and Detection System” Introduced in the Proposed DFARS Rule on “Detection and Avoidance of Counterfeit Electronic Parts”

A recent article prepared by this author and published by the National Contract Management Association [1] describes how counterfeit parts avoidance and detection has emerged as an area of business and legal risk that aerospace and defense (A&D) contractors should incorporate into compliance programs. Since the publication of this article, a propose DFARS rule on “Detection and Avoidance of Counterfeit Electronic Parts” [2] was released for public comment. The proposed rule introduces a requirement for contractors to “establish and maintain an acceptable counterfeit electronic part avoidance and detection system”. A contractor’s failure to do so “may result in disapproval of the purchasing system by the contracting officer and/or withholding of payments.” According to the proposed rule, DoD will assess a contractor’s counterfeit electronic parts avoidance and detection system as part of DoD’s contractor purchasing system review (CPSR) [3]. The proposed rule, however, fails to define criteria for a contractor’s counterfeit electronic parts avoidance and detection system and DoD has not yet made this criteria available for public comment in advance of implementation.

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Counterfeit Prevention and Materiel Inventory

I recently received correspondence from an A&D contractor representative who observes “there seems to be little published about what suppliers have/are doing with material they already have.”  Continue reading