Proposed Counterfeit Parts Rule Would Expand Coverage to Commercial Products Sold to Any Federal Agency

more+
less-

On June 10, 2014 the federal government proposed to expand the coverage of the rule designed to weed out counterfeit electronic parts in products sold to the Government. The new rule, if adopted in the form proposed, would expand coverage of the anti-counterfeit parts rule in three significant ways:

  • Coverage would apply to any product, not just electronic products, delivered to the Government, acquired by a contractor for use in performing services for the Government, or furnished by a contractor for use by or for the Government;
  • Coverage of the agencies concerned would expand from the Department of Defense to all federal agencies; and
  • Coverage would expand to all federal contractors and subcontractors, not just those who are subject to the federal cost accounting standards.

Under the proposal, prime contractors and subcontractors would be required to check a government database, the Government/Industry Data Exchange Program database operated by the Department of Defense, as part of their quality assurance in acquiring electronic components for items sold to the Government, whether or not those end-items were commercial items or specially designed for government use. Prime and subcontractors also would be required to report suspected counterfeit items they encounter in the course of performing their federally funded work.

Manufacturers and suppliers of products that include electronic components and that make their way into the federal government through prime contractors should be paying attention to this rule because their customers will be passing its requirements down to their suppliers.

It is expected that the proposed rule will receive extensive comments, and will be modified in its final form, but expanded coverage beyond the Department of Defense and to some classes of commercial items undoubtedly will survive.

Comments on the proposed rule will be received until August 11, 2014 at www.regulations.gov.

 


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Mintz Levin | Attorney Advertising

Written by:

more+
less-

Mintz Levin on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×