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Supply Chain Risk

Contractors Exposed To Civil Suits Under New Reporting Rule

Law360 (November 22, 2019, 8:52 PM EST) — Federal contractors may face increased litigation under a new regulation that expands requirements to report counterfeit items in their supply chains, but fails to offer protection when suppliers dispute those reports.

The final rule, which the Federal Acquisition Regulatory Council issued Thursday, more than five years after it was first proposed, requires all federal contractors and subcontractors to report to a federal database certain parts that they believe are counterfeit or don’t conform to specifications.

The reporting requirement, which previously only applied to defense contractors and only for electronic parts, doesn’t offer safeguards for civil contractors that abide by the rule’s reporting…

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