US DoD implements procurement regulations intended to combat counterfeit parts
On May 16, 2013, the Department of Defense (DoD) issued the first in a series of anticipated proposed rules implementing the congressional mandate in Section 818 of the National Defense Authorization Act (NDAA) for Fiscal Year 2013 that DoD adopt procurement regulations to address the detection and avoidance of counterfeit parts in DoD’s supply chain. The Proposed Rule addresses some of the pending questions concerning DoD’s implementation of Section 818. The proposed regulations, for instance, reveal that DoD does not intend to extend the reach of the rules beyond electronic parts, at least for the immediate future. But the Proposed Rule seems to raise or avoid as many questions as it answers, falling short of the hope that it might provide clarity on the most pressing issues, including DoD’s intentions with respect to designating “trusted suppliers” and what will be expected of prime contractors in managing their respective supply chains.
This specific rulemaking serves three primary purposes:
- establishing the scope of the regulations by defining “electronic part” and “counterfeit part;”
- introducing a DFARS Part 231 cost principle that would preclude most DoD contractors from recovering costs associated with purchasing or remediating counterfeit electronic parts; and
- requiring certain DoD contractors subject to the Cost Accounting Standards (CAS) to establish and maintain a “counterfeit electronic parts avoidance and detection system”…
If you are registered and logged in to the site, click on the link below to read the rest of the Hogan Lovells briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Hogan Lovells
News from The Lawyer
Briefings from Hogan Lovells
The decision of the US Court of Appeals has raised questions about how issuers should present their disclosures on conflict minerals under Exchange Act Rule 13p-1 and Form SD.
An interesting judgment was delivered by the Honourable J Majiki on 19 November 2013 in the Eastern Cape High Court, Port Elizabeth.
Analysis from The Lawyer
As international firms question their future in these small, closely linked markets, local lawyers too are eyeing the business environment with caution
Beyond the headline infrastructure projects, UK construction work is still recovering from the clobbering it took during the slump