House Passes H.R. 810 which revises counterfeit parts detection and avoidance requirements contained in NASA's supplement to the FAR

On February 10, 2015, the US House of Representatives passed H.R. 810, "National Aeronautics and Space Administration Authorization Act of 2015". The bill will be introduced into the Senate for consideration.

The bill provides funding for the National Aeronautics and Space Administration (NASA) for space exploration, research and development and operations. Of relevance is Section 711 which provides revised language to the FAR's NASA Supplement addressing the detection and avoidance of counterfeit parts.

Section 711 states that contractors are responsible for:

• Detecting and avoiding suspect/counterfeit parts (includes products containing electronic parts)
• Rework costs and corrective action if suspect/counterfeit parts are supplied

Unless:

• the covered contractor has a reviewed and approved counterfeit parts detection and avoidance system
• the contractor provides timely notice defined in subparagraph (D) as 30 calendar days if they become aware, or have reason to suspect, that any end item, component, part, or material contained in supplies contains counterfeit electronic parts or suspect counterfeit electronic parts, or
• suspect/counterfeit parts were provided in accordance with Part 45 of the FAR.

Contractors and subcontractors "at all tiers" must obtain parts that:

• are in production or currently available in stock from the original manufacturers of the parts or their authorized dealers or from suppliers who obtain such parts exclusively from the original manufacturers of the parts or their authorized dealers, and
• are not in production or currently available in stock from suppliers that meet qualification requirements established pursuant to subparagraph (C) which allows the Administration to identify suppliers that have appropriate policies and procedures in place to detect and avoid counterfeit electronic parts and suspect counterfeit electronic parts

Subparagraph (D) however does permit contractors and subcontractors to identify and use additional suppliers beyond those identified pursuant to subparagraph (C) provided that—

• the standards and processes for identifying such suppliers comply with established industry standards;
• the contractor or subcontractor assumes responsibility for the authenticity of parts provided by such suppliers as provided in paragraph (2); and
• the selection of such suppliers is subject to review and audit by appropriate Administration officials.

Supporters of the bill include The Aerospace Industries Association, The Boeing Company, Exelis, Inc., The Planetary Science Institute, The Coalition for Space Exploration and The Planetary Society.

Read Section 711 of H.R. 810: http://www.erai.com/CustomUploads/Sec_711_HR_810.pdf

Read the entire bill: https://www.govtrack.us/congress/bills/114/hr810/text

Resources: http://www.gop.gov/bill/h-r-810-national-aeronautics-and-space-administration-authorization-act-of-2015/