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DOD/DARC | RIN: 0750-AI58 | Publication ID: Fall 2015 |
Title: ●Detection and Avoidance of Counterfeit Electronic Parts--Further Implementation (DFARS Case 2014-D005) | |
Abstract:
The Department of Defense (DoD) is issuing a proposed rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to further implement section 818 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2012, as modified by section 817 of the NDAA for FY 2015, which requires DoD to issue regulations establishing requirements that DoD and DoD contractors and subcontractors, except in limited circumstances, shall acquire electronic parts from trusted suppliers in order to further address the avoidance of counterfeit electronic parts. On May 6, 2014, DoD published a final rule under DFARS Case 2012-D055, entitled Detection and Avoidance of Counterfeit Electronic Parts (78 FR 26092). That final rule constituted the initial partial implementation of section 818. Revisions to this rule will be reported in future status updates as part of DoD's retrospective plan under Executive Order 13563, completed in August 2011. DoD's full plan can be accessed at: http://www.regulations.gov/#!docketDetail;D=DOD-2011-OS-0036. |
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Agency: Department of Defense(DOD) | Priority: Other Significant |
RIN Status: First time published in the Unified Agenda | Agenda Stage of Rulemaking: Proposed Rule Stage |
Major: No | Unfunded Mandates: No |
CFR Citation: 48 CFR 202 48 CFR 212 48 CFR 246 48 CFR 252 | |
Legal Authority: 41 U.S.C. 1303 Pub. L. 112-81, sec 818 Pub. L. 113-291, sec 817 |
Legal Deadline:
None |
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Statement of Need: DoD is required to implement in the DFARS the requirement for defense contractors and subcontractors, whenever possible, to acquire electronic parts from trusted suppliers, in order to avoid acquisition of counterfeit electronic parts. |
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Summary of the Legal Basis: This regulation is proposed under the authorities of section 818 of the NDAA for FY 2012 (Pub. L. 112-81), as modified by section 817 of the NDAA for FY 2015 (Pub. L. 113-291). |
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Alternatives: No viable alternatives were identified, as this rule implements section 818 of the NDAA for FY 2012, as modified by section 817 of the NDAA for FY 2015. |
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Anticipated Costs and Benefits: Cost benefits or burdens associated with this rule are not available. The law requires DoD to issue regulations establishing requirements that DoD and DoD contractors and subcontractors, except in limited circumstances, shall acquire electronic parts from trusted suppliers in order to further address the avoidance of counterfeit electronic parts. DoD contractors and subcontractors that are not the original component manufacturer are required by the rule to notify the contracting officer if it is not possible to obtain an electronic part from a trusted supplier. For those instances where the contractor obtains electronic parts from sources other than a trusted supplier, the contractor is responsible for inspection, test, and authentication in accordance with existing applicable industry standards. Such validation of new parts and new suppliers are steps that a prudent contractor would take notwithstanding this rule. The additional burden imposed is the notification requirement, which should have a minimal cost impact. The rule applies only to contractors subject to the Cost Accounting Standards. This rule enhances DoD's ability to strengthen the integrity of the process for acquisition of electronic parts and benefits both the Government and contractors. |
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Risks: Failure to implement this rule may cause harm to the Government by resulting in the acquisition of counterfeit electronic parts which could directly impact national security. |
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Timetable:
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Regulatory Flexibility Analysis Required: No | Government Levels Affected: Federal |
Small Entities Affected: Businesses | Federalism: No |
Included in the Regulatory Plan: Yes | |
RIN Data Printed in the FR: No | |
Related RINs: Related to 0750-AH89 | |
Agency Contact: Jennifer Hawes Defense Acquisition Regulations System Department of Defense 3060 Defense Pentagon, Room 3B941, Washington, DC 20301-3060 Phone:571 372-6115 Email: jennifer.l.hawes2.civ@mail.mil |