FAR Anti-Counterfeiting Rule

PROPOSED FAR RULE AFFECTS ALL SELLING TO GOVERNMENT

Overall Description

The Department of Defense (DoD), the General Services Administration (GSA) and the National Aeronautics and Space Administration (NASA) released on June 10 proposed amendments to Federal government procurement practices that incorporates some of the elements set forth in the DoD anti-counterfeiting DFARS regarding electronic components. The FAR Case 2013-002 proposes to expand Federal government and contractor requirements for reporting “nonconforming items.” If the proposed FAR amendments are adopted, counterfeit items would be considered nonconforming items. This expansion of coverage would apply to existing FAR quality assurance requirements and to most, if not all, items sold to the Federal government.

How is it affecting the electronics industry?

The electronics industry should note that this proposal extends anti-counterfeit efforts to businesses of all sizes – no exceptions for small and non-CAS covered businesses. Commercial-off-the-shelf (COTS) items are also included. While the rule would apply to government contractors, it is likely that many in the industry could be subject to the mandatory GIDEP reporting requirements. The industry should also expect contractors to flow-down the requirements. Contractors would be required to use the Government-Industry Data Exchange Program (GIDEP) for two purposes:

  • Screening GIDEP reports to avoid the use and delivery of items that are counterfeit or suspect counterfeit or that contain major or critical nonconformance.
  • Reporting to GIDEP an item purchased by or for the government that is counterfeit or suspect counterfeit; or contains a major or critical nonconformance that is a “common item” and constitutes a “quality escape” that has resulted in the release of like nonconforming items to more than one customer.

Does this apply to my company?

Yes. If your company sells to the Federal government or to any contractor selling to the Federal government, then your company is likely to be affected by the proposed rule.

What is ECIA doing about this?

ECIA submitted comments recommending changes to various provisions in the proposed FAR amendments. ECIA will also analyze and report on developments.

Resources for learning more about this:
Copy of Rule. The proposal was published in 79 Federal Register 33164 (June 10, 2014).