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NASA’s Proposed Rule Seeks to Limit the Presence of Counterfeit Electronic Parts

Feb. 4, 2020

On January 7, 2020, the National Aeronautics and Space Administration (“NASA”) published a proposed rule seeking to amend the NASA Federal Regulation Supplement regarding counterfeit electronic parts. The proposed rule would add new language to the NASA regulations, requiring that contractors procure electronic parts directly from manufacturers and select suppliers in an effort to lessen the use of counterfeit electronics on NASA programs.

Specifically, the proposed rule would require “covered contractors and subcontractors at all tiers” to purchase electronic parts currently in production, and that are from:

  1. the original manufacturers of the parts,

  2. the manufacturers’ authorized dealers, or

  3. suppliers “who obtain such parts exclusively from the original manufacturers of the parts or their authorized dealers.”

For parts not currently in production, or if a contractor opts not to purchase electronic parts as described above, contractors must purchase the parts from either a NASA-identified or contractor-approved supplier. However, if the latter option is chosen, the contractor will “assume responsibility and be required to inspect, test, and validate the authentication of the parts.” Further, selection of a “contractor-approved” supplier will be subject to review and audit by the contracting officer. Notably, these changes will apply to “all procurements involving electronic parts, end items, components, parts, or assemblies containing electronic parts or services,” if such are to be supplied as part of the service.

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