FY2015 NDAA

H.R. 3979 – National Defense Authorization Act for Fiscal Year 2015

Latest Action: 12/19/2014 Became Public Law No: 113-291.

https://www.congress.gov/bill/113th-congress/house-bill/3979

SEC. 817. SOURCING REQUIREMENTS RELATED TO AVOIDING COUNTERFEIT ELECTRONIC PARTS.

Section 818(c)(3) of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112-81; 125 Stat. 1495; 10 U.S.C. 2302 note) is amended–

(1) in subparagraph (A)–

(A) by striking `, whenever possible,’;

(B) in clause (i)–

(i) by striking `trusted suppliers’ and inserting `suppliers identified as trusted suppliers in accordance with regulations issued pursuant to subparagraphs (C) and (D)’; and

(ii) by striking `; and’ and inserting a semicolon;

(C) in clause (ii), by striking `trusted suppliers;’ and inserting `suppliers identified as trusted suppliers in accordance with the regulations issued pursuant to subparagraphs (C) and (D); and’; and

(D) by adding at the end the following new clause:

`(iii) obtain electronic parts from alternate suppliers when such parts are not available from original manufacturers, their authorized dealers, or trusted suppliers;’;

(2) in subparagraph (B)–

(A) by inserting `for’ before `inspection’; and

(B) by striking `subparagraph (A)’ and inserting `clause (i) or (ii) of subparagraph (A), when obtaining the electronic parts in accordance with such clauses is not possible’;

(3) in subparagraph (C), by striking `identify trusted suppliers that have appropriate policies’ and inserting `identify as trusted suppliers those that have appropriate policies’; and

(4) in subparagraph (D), by striking `additional trusted suppliers’ and inserting `their own identified trusted suppliers’.

 


Section 818(c)(3) of the NDAA for FY2012 now reads as follows (emphasis added to highlight changes) …

(c) Regulations-

(3) TRUSTED SUPPLIERS- The revised regulations issued pursuant to paragraph (1) shall–

(A) require that the Department and Department contractors and subcontractors at all tiers–

(i) obtain electronic parts that are in production or currently available in stock from the original manufacturers of the parts or their authorized dealers, or from suppliers identified as trusted suppliers in accordance with regulations issued pursuant to subparagraphs (C) and (D); and who obtain such parts exclusively from the original manufacturers of the parts or their authorized dealers;

(ii) obtain electronic parts that are not in production or currently available in stock from suppliers identified as trusted suppliers in accordance with the regulations issued pursuant to subparagraphs (C) and (D); and

(iii) obtain electronic parts from alternate suppliers when such parts are not available from original manufacturers, their authorized dealers, or trusted suppliers;

(B) establish requirements for notification of the Department, and for inspection, testing, and authentication of electronic parts that the Department or a Department contractor or subcontractor obtains from any source other than a source described in clause (i) or (ii) of subparagraph (A), when obtaining the electronic parts in accordance with such clauses is not possible;

(C) establish qualification requirements, consistent with the requirements of section 2319 of title 10, United States Code, pursuant to which the Department may identify as trusted suppliers those that have appropriate policies and procedures in place to detect and avoid counterfeit electronic parts and suspect counterfeit electronic parts; and

(D) authorize Department contractors and subcontractors to identify and use their own identified trusted suppliers, provided that–

(i) the standards and processes for identifying such trusted suppliers comply with established industry standards;

(ii) the contractor or subcontractor assumes responsibility for the authenticity of parts provided by such suppliers as provided in paragraph (2); and

(iii) the selection of such trusted suppliers is subject to review and audit by appropriate Department officials.

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