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Department of Defense Proposes New DFARS Rule

Updated on October 10, 2013

The US Department of Defense has announced a public meeting to discuss and obtain the views of experts and interested parties in the private sector and Government regarding electronic parts detection and avoidance coverage requirements to be proposed into the Defense Federal Acquisition Regulation Supplement (DFARS).

The meeting will take place on June 28, 2013, from 9:00 a.m.to 12:30 p.m., EDT at General Services Administration (GSA), Central Office Auditorium, 1800 F Street, N.W., Washington, D.C., 20405. Interested parties should register by June 20.

federal-registerA proposed rule was published in the Federal Register at 78 FR28780 on May 16. The proposed rule is a partial implementation of the requirements at section 818, titled “Detection and Avoidance of Counterfeit Electronic Parts,” of the National Defense Authorization Act for Fiscal Year 2012 (Pub. L. 112-81).

This new DFARS rule would only apply to contractors subject to the Cost Accounting Standards. It addresses the responsibility of DoD contractors for detecting and avoiding the use or inclusion of counterfeit electronic parts or suspect counterfeit electronic parts in items delivered to the Department. DoD plans to use contractors’ existing purchasing systems and quality assurance systems for avoiding bad purchases, and detecting suspect parts. instead of requiring contractors to establish an entirely new, separate system.

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In addition, the DFARS case proposes to implement section 833, titled “Contractor Responsibilities in Regulations Relating to Detection and Avoidance of Counterfeit Electronic Parts,” of the National Defense Authorization Act for Fiscal Year 2013.

This proposal makes the costs associated with counterfeit or suspect counterfeit parts unallowable except in certain limited circumstances.

 

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