252.246-7008 Sources of Electronic Parts.

As prescribed in 246.870-3 (b), use the following clause:

SOURCES OF ELECTRONIC PARTS (JAN 2023)

(a) Definitions. As used in this clause—

“Authorized aftermarket manufacturer” means an organization that fabricates a part under a

contract with, or with the express written authority of, the original component manufacturer based

on the original component manufacturer’s designs, formulas, and/or specifications.

“Authorized supplier” means a supplier, distributor, or an aftermarket manufacturer with a

contractual arrangement with, or the express written authority of, the original manufacturer or

current design activity to buy, stock, repackage, sell, or distribute the part.

“Contract manufacturer” means a company that produces goods under contract for another

company under the label or brand name of that company.

“Contractor-approved supplier” means a supplier that does not have a contractual agreement with

the original component manufacturer for a transaction, but has been identified as trustworthy by a

contractor or subcontractor.

“Electronic part” means an integrated circuit, a discrete electronic component (including, but not

limited to, a transistor, capacitor, resistor, or diode), or a circuit assembly (section 818(f)(2) of Pub.

L. 112-81).

"Original component manufacturer" means an organization that designs and/or engineers a part and

is entitled to any intellectual property rights to that part.

“Original equipment manufacturer” means a company that manufactures products that it has

designed from purchased components and sells those products under the company's brand name.

“Original manufacturer” means the original component manufacturer, the original equipment

manufacturer, or the contract manufacturer.

(b) Selecting suppliers. In accordance with section 818(c)(3) of the National Defense Authorization

Act for Fiscal Year 2012 (Pub. L. 112-81), as amended by section 817 of the National Defense

Authorization Act for Fiscal Year 2015 (Pub. L. 113-291) and section 885 of the National Defense

Authorization Act for Fiscal Year 2016 (Pub. L. 114-92), the Contractor shall—

(1) First obtain electronic parts that are in production by the original manufacturer or an authorized

aftermarket manufacturer or currently available in stock from—

(i) The original manufacturers of the parts;

(ii) Their authorized suppliers; or

(iii) Suppliers that obtain such parts exclusively from the original manufacturers of the parts or their

authorized suppliers;

(2) If electronic parts are not available as provided in paragraph (b)(1) of this clause, obtain
electronic parts that are not in production by the original manufacturer or an authorized aftermarket

manufacturer, and that are not currently available in stock from a source listed in paragraph (b)(1)

of this clause, from suppliers identified by the Contractor as contractor-approved suppliers, provided

that—

(i) For identifying and approving such contractor-approved suppliers, the Contractor uses

established counterfeit prevention industry standards and processes (including inspection, testing,

and authentication), such as the DoD-adopted standards at https://assist.dla.mil;

(ii) The Contractor assumes responsibility for the authenticity of parts provided by such contractorapproved suppliers; and

(iii) The Contractor’s selection of such contractor-approved suppliers is subject to review, audit, and

approval by the Government, generally in conjunction with a contractor purchasing system review or

other surveillance of purchasing practices by the contract administration office, or if the

Government obtains credible evidence that a contractor–approved supplier has provided counterfeit

parts. The Contractor may proceed with the acquisition of electronic parts from a contractorapproved supplier unless otherwise notified by DoD; or

(3)(i) Take the actions in paragraph (b)(3)(ii) of this clause if the Contractor—

(A) Obtains an electronic part from—

(1) A source other than any of the sources identified in paragraph (b)(1) or (b)(2) of this clause, due

to nonavailability from such sources; or

(2) A subcontractor (other than the original manufacturer) that refuses to accept flowdown of this

clause; or

(B) Cannot confirm that an electronic part is new or previously unused and that it has not been

comingled in supplier new production or stock with used, refurbished, reclaimed, or returned parts.

(ii) If the contractor obtains an electronic part or cannot confirm an electronic part pursuant to

paragraph (b)(3)(i) of this clause—

(A) Promptly notify the Contracting Officer in writing. If such notification is required for an

electronic part to be used in a designated lot of assemblies to be acquired under a single contract,

the Contractor may submit one notification for the lot, providing identification of the assemblies

containing the parts (e.g., serial numbers);

(B) Be responsible for inspection, testing, and authentication, in accordance with existing applicable

industry standards; and

(C) Make documentation of inspection, testing, and authentication of such electronic parts available

to the Government upon request.

(c) Traceability.If the Contractor is not the original manufacturer of, or authorized supplier for, an

electronic part, the Contractor shall—

(1) Have risk-based processes (taking into consideration the consequences of failure of an electronic

part) that enable tracking of electronic parts from the original manufacturer to product acceptance

by the Government, whether the electronic part is supplied as a discrete electronic part or is

contained in an assembly;
(2) If the Contractor cannot establish this traceability from the original manufacturer for a specific

electronic part, be responsible for inspection, testing, and authentication, in accordance with

existing applicable industry standards; and

(3)(i) Maintain documentation of traceability (paragraph (c)(1) of this clause) or the inspection,

testing, and authentication required when traceability cannot be established (paragraph (c)(2) of

this clause) in accordance with FAR subpart 4.7; and

(ii) Make such documentation available to the Government upon request.

(d) Government sources. Contractors and subcontractors are still required to comply with the

requirements of paragraphs (b) and (c) of this clause, as applicable, if—

(1) Authorized to purchase electronic parts from the Federal Supply Schedule;

(2) Purchasing electronic parts from suppliers accredited by the Defense Microelectronics Activity;

or

(3) Requisitioning electronic parts from Government inventory/stock under the authority of

252.251-7000 , Ordering from Government Supply Sources.

(i) The cost of any required inspection, testing, and authentication of such parts may be charged as a

direct cost.

(ii) The Government is responsible for the authenticity of the requisitioned parts. If any such part is

subsequently found to be counterfeit or suspect counterfeit, the Government will—

(A) Promptly replace such part at no charge; and

(B) Consider an adjustment in the contract schedule to the extent that replacement of the

counterfeit or suspect counterfeit electronic parts caused a delay in performance.

(e) Subcontracts.The Contractor shall include the substance of this clause, including this paragraph

(e), in subcontracts, including subcontracts for commercial products, that are for electronic parts or

assemblies containing electronic parts, unless the subcontractor is the original manufacturer.

(End of clause)

Parent topic: 252.246 RESERVED