DoD Finalizes Rule on Counterfeit Electronic Parts Detection

The Department of Defense will finalize its proposed rule to the Defense Federal Acquisition Supplement to add requirements for contractor counterfeit electronic part detection and avoidance systems. The DFARS Case 2012-D055 final rule, effective May 6, 2014, implements Section 818(c)(2), National Defense Authorization Act for Fiscal Year 2012 (P.L. 112-81) to prescribe policy and procedures for preventing counterfeit electronic parts and suspect counterfeit electronic parts from entering DoD’s supply chain.

Contractors that are subject to the Cost Accounting Standards and supply electronic parts or products that include electronic parts (including those supplied by subcontractors) must establish and maintain an acceptable counterfeit electronic part detection and avoidance system. Failure to do so may result in disapproval of the contractor’s purchasing system and withholding of payments. The system criteria for a counterfeit electronic part detection and avoidance system must include risk-based policies and procedures as specified in the newly added contract clause, DFARS 252.246-7007, Contractor Counterfeit Electronic Part Detection and Avoidance System. The requirements do not apply to small businesses.

Wolters Kluwer’s DFARS Matrix Tool will incorporate this new clause on the rule’s effective date. The DFARS Matrix Tool provides quickly accessible descriptions, flowdown information, and reporting requirements for the more than 385 DFARS clauses and alternates.

About George Gullo

George Gullo is a Senior Writer/Analyst in the Government Contracts group at Wolters Kluwer Law and Business. George serves as the principal editor of Cost Accounting Standards Guide and supports all of the group’s print and electronic publications, as well as legal research tools, including the Government Contracts Reporter, Board of Contract Appeals Decisions, and the FAR and DFARS Matrix Smart Charts. With more than 20 years experience in the legal publishing industry, including over 10 years in the government contracts area, George also has a background in legal and business transactions. He is a graduate of DePaul University College of Law and a licensed Illinois attorney.
This entry was posted in Compliance, DFARS and tagged , , , , , , , , , . Bookmark the permalink.