Inside The New Rules On Counterfeit, Nonconforming Items

Law360, New York (July 10, 2014, 9:11 AM EDT) -- Within a time period of 35 days, the government issued two separate rules with one common theme — preventing adverse effects on public procurement objectives through the detection and disclosure of counterfeit and nonconforming items. A final rule issued by the U.S. Department of Defense, effective May 6, 2014, places the responsibility for detecting and reporting counterfeit electronic parts on certain contractors. A proposed rule published by the DOD, the General Services Administration, and NASA on June 10, 2014, seeks to broaden the scope of the DOD's final rule by expanding reporting of nonconforming items for all federal contracts involving supplies. Since affected contractors must flow down these requirements to subcontractors at all tiers, both rules will significantly impact the supply chain of federal contractors....

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