FAR 52.246-26 Reporting Nonconforming Items. Basic (Dec 2019)

As prescribed in 46.317,

(a) Except as provided in paragraph (b) of this section, the contracting officer shall insert the clause at 52.246-26, Reporting Nonconforming Items, in solicitations and contracts—as follows:

   (1) For an acquisition by any agency, including the Department of Defense, of—

      (i) Any items that are subject to higher-level quality standards in accordance with the clause at 52.246-11, Higher-Level Contract Quality Requirement;

      (ii) Any items that the contracting officer, in consultation with the requiring activity determines to be critical items for which use of the clause is appropriate;

   (2) In addition (as required by paragraph (c)(4) of section 818 of the National Defense Authorization Act for Start Printed Page 64695Fiscal Year 2012 (Pub. L. 112-81)), for an acquisition that exceeds the simplified acquisition threshold and is by, or for, the Department of Defense of electronic parts or end items, components, parts, or materials containing electronic parts, whether or not covered in paragraph (a)(1) of this section; or

   (3) For the acquisition of services, if the contractor will furnish, as part of the service, any items that meet the criteria specified in paragraphs (a)(1) through (a)(2) of this section.

(b) The contracting officer shall not insert the clause at 52.246-26, Reporting Nonconforming Items, in solicitations and contracts when acquiring—

   (1) Commercial items using part 12 procedures; or

   (2) Medical devices that are subject to the Food and Drug Administration reporting requirements at 21 CFR 803.

(c) If required by agency policy, the contracting officer may modify paragraph (b)(4) of the clause at 52.246-26, but only to change the responsibility for the contractor to submit reports to the agency rather than to Government-Industry Data Exchange Program (GIDEP), so that the agency instead of the contractor submits reports to GIDEP within the mandatory 60 days.
 

Reporting Nonconforming Items (Dec 2019)

(a) Definitions. As used in this clause—

Common item means an item that has multiple applications versus a single or peculiar application.

Counterfeit item means an unlawful or unauthorized reproduction, substitution, or alteration that has been knowingly mismarked, misidentified, or otherwise misrepresented to be an authentic, unmodified item from the original manufacturer, or a source with the express written authority of the original manufacturer or current design activity, including an authorized aftermarket manufacturer. Unlawful or unauthorized substitution includes used items represented as new, or the false identification of grade, serial number, lot number, date code, or performance characteristics.

Critical item means an item, the failure of which is likely to result in hazardous or unsafe conditions for individuals using, maintaining, or depending upon the item; or is likely to prevent performance of a vital agency mission.

Critical nonconformance means a nonconformance that is likely to result in hazardous or unsafe conditions for individuals using, maintaining, or depending upon the supplies or services; or is likely to prevent performance of a vital agency mission.

Design activity means an organization, Government or contractor, that has responsibility for the design and configuration of an item, including the preparation or maintenance of design documents. Design activity could be the original organization, or an organization to which design responsibility has been transferred.

Major nonconformance means a nonconformance, other than critical, that is likely to result in failure of the supplies or services, or to materially reduce the usability of the supplies or services for their intended purpose.

Suspect counterfeit item means an item for which credible evidence (including but not limited to, visual inspection or testing) provides reasonable doubt that the item is authentic.

   (b) The Contractor shall—

      (1) Screen Government-Industry Data Exchange Program (GIDEP) reports, available at www.gidep.org, as a part of the Contractor's inspection system or program for the control of quality, to avoid the use and delivery of counterfeit or suspect counterfeit items or delivery of items that contain a major or critical nonconformance. This requirement does not apply if the Contractor is a foreign corporation or partnership that does not have an office, place of business, or fiscal paying agent in the United States;

      (2) Provide written notification to the Contracting Officer within 60 days of becoming aware or having reason to suspect, such as through inspection, testing, record review, or notification from another source (e.g., seller, customer, third party) that any end item, component, subassembly, part, or material contained in supplies purchased by the Contractor for delivery to, or for, the Government is counterfeit or suspect counterfeit;

      (3) Retain counterfeit or suspect counterfeit items in its possession at the time of discovery until disposition instructions have been provided by the Contracting Officer; and

      (4) Except as provided in paragraph (c) of this clause, submit a report to GIDEP at www.gidep.org within 60 days of becoming aware or having reason to suspect, such as through inspection, testing, record review, or notification from another source (e.g., seller, customer, third party) that an item purchased by the Contractor for delivery to, or for, the Government is—

         (i) A counterfeit or suspect counterfeit item; or

         (ii) A common item that has a major or critical nonconformance.

   (c) The Contractor shall not submit a report as required by paragraph (b)(4) of this clause, if—

      (1) The Contractor is a foreign corporation or partnership that does not have an office, place of business, or fiscal paying agent in the United States;

      (2) The Contractor is aware that the counterfeit, suspect counterfeit, or nonconforming item is the subject of an on-going criminal investigation, unless the report is approved by the cognizant law-enforcement agency; or

      (3) For nonconforming items other than counterfeit or suspect counterfeit items, it can be confirmed that the organization where the defect was generated (e.g., original component manufacturer, original equipment manufacturer, aftermarket manufacturer, or distributor that alters item properties or configuration) has not released the item to more than one customer.

   (d) Reports submitted in accordance with paragraph (b)(4) of this clause shall not include—

      (1) Trade secrets or confidential commercial or financial information protected under the Trade Secrets Act (18 U.S.C. 1905); or

      (2) Any other information prohibited from disclosure by statute or regulation.

   (e) Additional guidance on the use of GIDEP is provided at http://www.gidep.org/​about/​opmanual/​opmanual.htm.

   (f) 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 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 are counterfeit electronic parts or suspect counterfeit electronic parts 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 report was factual.

   (g) Subcontracts.

      (1) Except as provided in paragraph (g)(2) of this clause, the Contractor shall insert this clause, including this paragraph (g), in subcontracts that are for—

         (i) Items subject to higher-level quality standards in accordance with the clause at FAR 52.246-11, Higher-Level Contract Quality Requirement;

         (ii) Items that the Contractor determines to be critical items for which use of the clause is appropriate;

         (iii) Electronic parts or end items, components, parts, or materials containing electronic parts, whether or not covered in paragraph (g)(1)(i) or (ii) of this clause, if the subcontract exceeds the simplified acquisition threshold and this contract is by, or for, the Department of Defense (as required by paragraph (c)(4) of section 818 of the National Defense Authorization Act for Fiscal Year 2012 (Pub. L. 112-81)); or

         (iv) For the acquisition of services, if the subcontractor will furnish, as part of the service, any items that meet the criteria specified in paragraphs (g)(1)(i) through (g)(1)(iii) of this clause.

      (2) The Contractor shall not insert the clause in subcontracts for—

         (i) Commercial items; or

         (ii) Medical devices that are subject to the Food and Drug Administration reporting requirements at 21 CFR 803.

         (3) The Contractor shall not alter the clause other than to identify the appropriate parties.

(End of clause)
 

 (g) Subcontracts.

      (1) Except as provided in paragraph (g)(2) of this clause, the Contractor shall insert this clause, including this paragraph (g), in subcontracts that are for—

         (i) Items subject to higher-level quality standards in accordance with the clause at FAR 52.246-11, Higher-Level Contract Quality Requirement;

         (ii) Items that the Contractor determines to be critical items for which use of the clause is appropriate;

         (iii) Electronic parts or end items, components, parts, or materials containing electronic parts, whether or not covered in paragraph (g)(1)(i) or (ii) of this clause, if the subcontract exceeds the simplified acquisition threshold and this contract is by, or for, the Department of Defense (as required by paragraph (c)(4) of section 818 of the National Defense Authorization Act for Fiscal Year 2012 (Pub. L. 112-81)); or

         (iv) For the acquisition of services, if the subcontractor will furnish, as part of the service, any items that meet the criteria specified in paragraphs (g)(1)(i) through (g)(1)(iii) of this clause.

      (2) The Contractor shall not insert the clause in subcontracts for—

         (i) Commercial items; or

         (ii) Medical devices that are subject to the Food and Drug Administration reporting requirements at 21 CFR 803.

         (3) The Contractor shall not alter the clause other than to identify the appropriate parties.
 

Mandatory (Exception);
(Applies to subcontracts that are for—          (i) Items subject to higher-level quality standards in accordance with the clause at FAR 52.246-11, Higher-Level Contract Quality Requirement;          (ii) Items that the Contractor determines to be critical items for which use of the clause is appropriate;          (iii) Electronic parts or end items, components, parts, or materials containing electronic parts, whether or not covered in paragraph (g)(1)(i) or (ii) of this clause, if the subcontract exceeds the simplified acquisition threshold and this contract is by, or for, the Department of Defense (as required by paragraph (c)(4) of section 818 of the National Defense Authorization Act for Fiscal Year 2012 (Pub. L. 112-81)); or          (iv) For the acquisition of services, if the subcontractor will furnish, as part of the service, any items that meet the criteria specified in paragraphs (g)(1)(i) through (g)(1)(iii) of this clause. (2) The Contractor shall not insert the clause in subcontracts for—          (i) Commercial items; or (ii) Medical devices that are subject to the Food and Drug Administration reporting requirements at 21 CFR 803. (3) The Contractor shall not alter the clause other than to identify the appropriate parties.

52.209-1 Qualification Requirements.

52.212-4 Contract Terms and Conditions—Commercial Items.

52.213-4 Terms and Conditions—Simplified Acquisitions (Other Than Commercial Items).

52.246-1 Contractor Inspection Requirements.

52.246-11 Higher-Level Contract Quality Requirement.

52.246-12 Inspection of Construction.

52.246-13 Inspection—Dismantling, Demolition, or Removal of Improvements.

52.246-14 Inspection of Transportation.

52.246-15 Certificate of Conformance.

52.246-16 Responsibility for Supplies.

52.246-2 Inspection of Supplies—Fixed-Price.

52.246-3 Inspection of Supplies—Cost-Reimbursement.

52.246-4 Inspection of Services—Fixed-Price.

52.246-5 Inspection of Services—Cost-Reimbursement.

52.246-6 Inspection—Time-and-Material and Labor-Hour.

52.246-7 Inspection of Research and Development—Fixed-Price.

52.246-8 Inspection of Research and Development—Cost-Reimbursement.

52.246-9 Inspection of Research and Development (Short Form).

52.247-4 Inspection of Shipping and Receiving Facilities.

52.204-26 Covered Telecommunications Equipment or Services-Representation.

252.217-7005 Inspection and Manner of Doing Work.

252.228-7005 Mishap Reporting and Investigation Involving Aircraft, Missiles, and Space Launch Vehicles.

252.239-7000 Protection Against Compromising Emanations.

252.215-7015 Program Should-Cost Review.

1852.246-71 Government Contract Quality Assurance.

1852.246-72 Material Inspection and Receiving Report.

5252.246-9512 INSPECTION AND ACCEPTANCE (NAVAIR)(OCT 2005)

5252.246-9514 INSPECTION AND ACCEPTANCE OF TECHNICAL DATA AND INFORMATION (NAVAIR)(FEB 1995)

5252.246-9503 Significance of Systems Engineering Technical Reviews Required under this Contract (NAVAIR)

3052.217-92 Inspection and manner of doing work (USCG).

3052.217-96 Title (USCG).

3052.217-100 Guarantee (USCG).

5152.236-5900 Electrical and Structural Building Standards for Construction Projects

552.211-70 Substantial Completion.

552.212-4 Contract Terms and Conditions—Commercial Items (FAR DEVIATION).

552.246-70 Source Inspection by Quality Approved Manufacturer.

552.236-11 Use and Possession Prior to Completion.

552.236-6 Superintendence by the Contractor.

552.236-15 Schedules for Construction Contracts.

552.236-21 Specifications and Drawings for Construction.

552.238-95 Separate Charge for Performance Oriented Packaging (POP).

552.238-96 Separate Charge for Delivery within Consignee's Premises.

552.238-100 Transshipments.

552.238-109 Authentication Supplies and Services.

552.238-110 Commercial Satellite Communication (COMSATCOM) Services.

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