Source: http://www.regulations.gov/?_escaped_fragment_=documentDetail;D=FAR-2013-0002-0001
Timestamp: 2016-08-25 09:54:10
Document Index: 43824213

Matched Legal Cases: ['arts 2', 'arts 7', 'art 46', 'arts 2', 'art 7', 'art 12', 'art 46', 'art 52', 'arts 2']

Skip Navigation HomeHelpResourcesContact Us Advanced Search Start of Main Content Federal Acquisition Regulations: Expanded Reporting of Nonconforming Items; FAR Case 2013–002 This Proposed Rule document was issued by the Federal Acquisition Regulation (FAR) For related information, Open Docket Folder Show agency attachment(s) DEPARTMENT OF DEFENSE
48 CFR Parts 2, 7, 12, 46, and 52
[FAR Case 2013-002; Docket No. 2013-0002; Sequence No. 1]
RIN 9000-AM58
AgencyDepartment of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).
SummaryDoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to require expanded reporting of nonconforming items.
DatesInterested parties should submit written comments to the Regulatory Secretariat at one of the addressees shown below on or before August 11, 2014 to be considered in the formation of the final rule.
Public Meeting: A public meeting will be held on June 16, 2014, from 1:30 p.m. to 5:30 p.m., Eastern Standard Time at the National Aeronautics and Space Administration Headquarters Auditorium, 300 E Street SW., Washington, DC 20546. The visitor's entrance is on the West side of the building. A notice was published in theFederal Registerat 79 FR 27871 on May 15, 2014 on the subject of expanded reporting of nonconforming items. See the May 15, 2014Federal Registerfor details on registering and attending.
AddressesSubmit comments in response to FAR Case 2013-002 by any of the following methods:
Mail: General Services Administration, Regulatory Secretariat (MVCB), ATTN: Hada Flowers, 1800 F Street NW., 2nd Floor, Washington, DC 20405. Instructions: Please submit comments only and cite FAR Case 2013-002, in all correspondence related to this case. All comments received will be posted without change to http://www.regulations.gov, including any personal and/or business confidential information provided.
For Further Information ContactMr. Edward Loeb, Procurement Analyst, at 202-501-0650, for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at 202-501-4755. Please cite FAR Case 2013-002.
Supplementary InformationI. BackgroundDoD, GSA, and NASA are proposing to revise the FAR to expand Government and contractor requirements for reporting of nonconforming items in partial implementation of section 818 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2012 and implement requirements of the Office of Federal Procurement Policy (OFPP) Policy Letter 91-3, entitled “Reporting Nonconforming Products,” dated April 9, 1991. While section 818 applied only to DoD, only to electronic products, and only to contractors covered by the Cost Accounting Standards (CAS), the FAR Council concluded that the principles expressed in section 818 should be applied beyond DoD, should not be limited to electronic products, and should not be limited to CAS-covered contractors. Similarly, although OFPP Policy Letter 91-3 requires agencies to report to the Government-Industry Data Exchange Program (GIDEP), the FAR Council determined that reporting would be much more timely and effective if contractors were to make the reports directly to GIDEP.
The proposed rule would build on the existing contractor inspection systemrequirements, utilizing the existing terminology, and would add a requirement for contractors to report to the GIDEP database a counterfeit item, a suspect counterfeit item, or an item that contains a major or critical nonconformance that is a common item and that constitutes a quality escape, as defined in FAR 46.101, that has resulted in the release of like nonconforming items to more than one customer.
GIDEP has been in existence for over two decades and has a Web site at www.gidep.org. In that Web site, one can find the GIDEP reporting tools, including the reporting forms. The paperwork burden associated with completing and submitting the reporting forms is addressed thoroughly in the Paperwork Reduction Act section of this notice. In addition, the proposed rule includes new material under the “contract administration” topic of the contents of written acquisition plans (FAR 7.105(b)(19)). The acquisition plan should consider the risk-based quality assurance measures that are in place to identify and control major and critical nonconformances, e.g., higher-level quality standards or use of GIDEP.II. Discussion and AnalysisAmendments to FAR subparts 7.1, 12.2, 12.3, 46.1, 46.2, 46.3, 46.4, and 52 are proposed by this rule. The proposed changes are summarized in the following paragraphs.
2. Counterfeit item. 3. Design activity. 4. Quality escape. This is a new concept for procurement personnel but is well-known by quality assurance experts. It is necessary to differentiate between items that must be reported to GIDEP and those that need not be reported to GIDEP.
5. Suspect counterfeit item. E. Subpart 46.1, General: FAR 46.102, Policy, is proposed to be revised to alert contractors of the requirement to use GIDEP.
In accordance with the NDAA for FY 2012 (Pub. L. 112-81), if the contract is with the Department of Defense, the clause would state that the contractor or any subcontractor providing a written report as required under the clause will not be subject to civil liability on the basis of such reporting, provided that, the contractor or any subcontractor made a reasonable effort to determine that the end item, component, part, or material contained electronic parts (i.e., an integrated circuit, a discrete electronic component or a circuit assembly) that were counterfeit items or suspect counterfeit items.III. Executive Orders 12866 and 13563Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatoryalternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is a significant regulatory action and, therefore, was subject to review under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804.IV. Regulatory Flexibility ActThe change may have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act 5 U.S.C. 601, et seq. The Initial Regulatory Flexibility Analysis (IRFA) is summarized as follows:
The rule does not duplicate, overlap, or conflict with any other Federal rules. A number of alternatives were considered, as follows, but none were determined to meet the requirements of the statute and OFPP Policy Letter 91-3: Making the rule applicable only to DoD.
Not applying the rule to purchases of commercial items or commercial off-the-shelf items.The Regulatory Secretariat has submitted a copy of the IRFA to the Chief Counsel for Advocacy of the Small Business Administration. A copy of the IRFA may be obtained from the Regulatory Secretariat. DOD, GSA, and NASA invite comments from small business concerns and other interested parties on the expected impact of this rule on small entities.
DoD, GSA, and NASA will also consider comments from small entities concerning the existing regulations in subparts affected by the rule in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C 610 (FAR Case 2013-002), in correspondence.V. Paperwork Reduction ActThe Paperwork Reduction Act (44 U.S.C. chapter 35) applies. The proposed rule contains information collection requirements. Accordingly, the Regulatory Secretariat has submitted a request for approval of a new information collection requirement concerning Expanded Reporting of Nonconforming Items to the Office of Management and Budget.
List of Subjects in 48 CFR Parts 2 7 12 46 and 52Government procurement.
Authority40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 51 U.S.C. 20113.
* * * * *Part 7 Acquisition Planning
* * * * *Part 12 Acquisition of Commercial Items
* * * * *Part 46 Quality Assurance
(h) The contracting officer shall provide disposition instructions for counterfeit or suspect counterfeit items in accordance with agency policy. In some cases, agency policy may require the contracting officer to direct the contractor to retain such items for investigative or evidentiary purposes.Part 52 Solicitation Provisions and Contract Clauses
* * * * *Terms and Conditions—Simplified Acquisitions (Other Than Commercial Items) (Date)(a) * * *
* * * * *Subcontracts for Commercial Items (Date)* * * * *
As prescribed in 46.317, insert the following clause:Reporting Nonconforming Items (Date)(a) Definitions. As used in this clause—
(3) The Contractor shall obtain the appropriate form at www.gidep.org and submit the form electronically to gidep@gidep.org. (d) If this is a contract with the Department of Defense, as provided in paragraph (c)(5) of section 818 of the National Defense Authorization Act for Fiscal Year 2012 (Pub. L. 112-81), the Contractor or subcontractor that provides a written report or notification under this clause shall not be subject to civil liability on the basis of such reporting, provided that the Contractor or any subcontractor made a reasonable effort to determine that the end item, component, part, or material contained electronic parts (i.e., an integrated circuit, a discrete electronic component (including, but not limited to, a transistor, capacitor, resistor, or diode), or a circuit assembly) that were counterfeit items or suspect counterfeit items.
[FR Doc. 2014-13336 Filed 6-9-14; 8:45 am]BILLING CODE 6820-EP-P
Attachments View All (0) View document: No documents available. Attachments View All (0) Comment Now! Comment Period Closed Aug 11 2014, at 11:59 PM ET ID: FAR-2013-0002-0001 Tracking Number: View original printed format: Document Information Date Posted: Jun 10, 2014RIN: 9000-AM58CFR: 48 CFR Parts 2, 7, 12, 46, and 52Federal Register Number: 2014-13336 Show More Details Submitter Information Comments13 Comments Received* During an SAE Standards development meeting conducted on 7/24/2014 for Revision A of AS6081, it was brought to our attention that DI-MISC-81832, DATA ITEM... View Comment See attached. View Comment See Attached View Comment Docket Information This document is contained in FAR-2013-0002 Related Dockets: NoneRelated RINs: NoneRelated Documents: Federal Acquisition Regulations: Expanded Reporting of... Related Comments: View all * This count refers to the total comment/submissions received on this document, as of 11:59 PM yesterday. Note: Agencies review all submissions, however some agencies may choose to redact, or withhold, certain submissions (or portions thereof) such as those containing private or proprietary information, inappropriate language, or duplicate/near duplicate examples of a mass-mail campaign. This can result in discrepancies between this count and those displayed when conducting searches on the Public Submission document type. For specific information about an agency’s public submission policy, refer to its website or the Federal Register document. Document text and images courtesy of the Federal Register Home Search Advanced Search Browse By Category Learn About Us eRulemaking Program Media Toolkit Agencies Awards & Recognition Enhancements & Fixes Resources Site Data Regulatory Agenda Agency Reports Required by Statute API Overview Developers Help How to use Regulations.gov FAQs Glossary Connect With Contact Us Privacy and Security Notice User Notice Accessibility Statement Partner Sites We the People Federal Register Reginfo Congress.gov USA.gov E-Gov Opengov Participate Today!