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FAR and DFARS › DFARS Part 231: Contract Cost Principles and Procedures › Subpart 231.2

DFARS 231.205-71 Costs related to counterfeit electronic parts and suspect counterfeit electronic parts.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section makes the costs of counterfeit or suspect counterfeit electronic parts, and any rework or corrective action needed because of them, unallowable. A contractor can only avoid that result if it meets all the stated conditions, including having an approved detection system, the parts being government-furnished or obtained under the cited sources clause, and giving timely written notice to the contracting officer and GIDEP.

Applies to: Contractors and subcontractors involved with electronic parts under DoD contracts

What it requires

  • Have an operational system to detect and avoid counterfeit and suspect counterfeit electronic parts that DoD has reviewed and approved
  • Provide written notice within 60 days after becoming aware of counterfeit or suspect counterfeit electronic parts to the cognizant contracting officer(s) and to GIDEP, unless an exception applies

Key terms: counterfeit electronic parts · suspect counterfeit electronic parts · rework or corrective action · Government-furnished property · GIDEP

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) Scope. This section implements the requirements of section 818(c)(2), National Defense Authorization Act for Fiscal Year 2012 (Pub. L. 112-81), as modified by section 833, National Defense Authorization Act for Fiscal Year 2013 (Pub. L. 112-239), and section 885 of the National Defense Authorization Act for Fiscal Year 2016 (Pub. L. 114-92).

(b) The costs of counterfeit electronic parts and suspect counterfeit electronic parts and the costs of rework or corrective action that may be required to remedy the use or inclusion of such parts are unallowable, unless—

(1) The contractor has an operational system to detect and avoid counterfeit electronic parts and suspect counterfeit electronic parts that has been reviewed and approved by DoD pursuant to 244.303(b);

(2) The counterfeit electronic parts or suspect counterfeit electronic parts are Government-furnished property as defined in FAR 45.101 or were obtained by the contractor in accordance with the clause at 252.246-7008, Sources of Electronic Parts; and

(3) The contractor—

(i) Becomes aware of the counterfeit electronic parts or suspect counterfeit electronic parts through inspection, testing, and authentication efforts of the contractor or its subcontractors; through a Government Industry Data Exchange Program (GIDEP) alert; or by other means; and

(ii) Provides timely (i.e., within 60 days after the contractor becomes aware) written notice to—

(A) The cognizant contracting officer(s); and

(B) GIDEP (unless 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; or the counterfeit electronic part or suspect counterfeit electronic part is the subject of an on-going criminal investigation).

Sections it refers to

Sections that refer to it

← 231.205-70 External restructuring costs. · 231.303 Requirements. →

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

DFARS 231.205-71 Costs related to counterfeit electronic parts and suspect counterfeit electronic parts · SpendQuery