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Defense Department Issues Four Proposed Rules Amending DFARS

The Defense Department issued four proposed rules making changes to the Defense Federal Regulation Supplement. Comments on all four rules are due July 15 and can be submitted to www.regulations.gov.

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Detection and avoidance of counterfeit electronic parts: These changes are proposed to implement a section of last year’s National Defense Authorization Act, which required DFARS to regulate contractor responsibilities for detecting and avoiding the use or inclusion of counterfeit electronic parts, and the requirements for contracts to report such parts. The proposed rule adds new definitions -- including “counterfeit electronic part” and “suspected counterfeit electronic part.” The rule proposes to make certain contractors responsible for “detecting and avoiding the use or inclusion of counterfeit electronic parts or suspect counterfeit electronic parts in such products and for any rework or corrective action that may be required to remedy the use or inclusion of such parts.” Contractors would also have to implement a DoD-approved operational system to detect and avoid counterfeit parts. Failure to have a system could result in disapproval of the purchasing system by the contracting officer and/or withholding of payments. The proposed rule includes criteria for the systems, such as personnel training, mechanisms to trace parts and using trusted suppliers. The rule also includes the definition and requirements of “approved purchasing systems.” The proposed rule is (here).

Forward pricing rate proposals: This proposed rule adds to DFARS 215.403-5 instructions to contracting officers for submitting forward pricing rate proposals to ensure the proposals are adequate. It proposes that contractors submit a proposed forward pricing rate proposal adequacy checklist with their proposal. The checklist is broken into different Federal Acquisition Regulations sections, and includes questions like “Does the proposal show trends and budgetary data?” The proposed rule is (here).

Competitive Applications with only one offer: This proposed rule revises DFARS to further implement Department policy when one offer is received on competitive applications, and policy on requests for data other than certified cost or pricing data from the Canadian Commercial Corporation. It proposes to apply such requirements to commercial applications, with two exceptions, and discusses when approval is required to request more data in competitive solicitations. The proposed rule is (here).

Offer Letters for Foreign Military Sales Programs: Proposes requirements for contracting officers to assist the DoD agency responsible for preparing Letters of Offers and Acceptance. The proposed rule is (here).

(Federal Register 5/16/13)