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TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle G—Other Matters

P. L. 114-

House Conference Report. 114-270

(a) Amendments related to contractor responsibilities.—Section 818(c)(2)(B) of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112–81; 10 U.S.C. 2302 note) is amended—

(1) in clause (i), by inserting “electronic” after “avoid counterfeit”;

(2) in clause (ii)—

(A) by inserting “covered” after “provided to the”; and

(B) by inserting “or were obtained by the covered contractor in accordance with regulations described in paragraph (3)” after “Regulation”; and

(3) in clause (iii), by inserting “discovers the counterfeit electronic parts or suspect counterfeit electronic parts and” after “contractor”.

(b) Amendments related to trusted suppliers.—Section 818(c)(3)(D)(iii) of such Act (Public Law 112–81; 10 U.S.C. 2302 note) is amended by striking “review and audit” and inserting “review, audit, and approval”.

The Senate amendment contained no similar provision.

The Senate recedes with an amendment that would allow the Department of Defense to approve of industry-selected trusted suppliers.

House Report 114-201 to accompany H. R. 1735 as it was reported out of the House Armed Services Committee.

Section 861--Amendments Concerning Detection and Avoidance of Counterfeit Electronic Parts

This section would amend section 818(c)(2)(B) of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112-81) to expand the eligibility for covered contractors to include costs associated with rework and corrective action related to counterfeit electronic parts as allowable costs under Department of Defense contracts.

The committee expects that, not later than 180 days after the date of the enactment of this Act, the Secretary of Defense will revise the Department of Defense Supplement to the Federal Acquisition Regulation to conform with the changes made by this section.