SMALL BUSINESS ADMINISTRATION

  • HUBZone and the National Defense Authorization Act for Fiscal Year 2016 Amendments
  • Detection and Avoidance of Counterfeit Electronic Parts
  • Amendments Related to Sources of Electronic Parts

This week’s report follows, click here if you would like to download a copy.

SMALL BUSINESS ADMINISTRATION

Small Business Mentor-Protégé Programs
The SBA is amending its regulations to the HUBZone Program.  The amendments: (1) authorize Native Hawaiian Organizations (“NHO”) to own HUBZone small business concerns; (2)  expand the HUBZone Program to assist small businesses in disaster areas and base closure areas; and (3) provide equal treatment under the HUBZone Program for small businesses owned by NHOs, 81 Fed. Reg. 51312.  Comments are due by September 6, 2016.  The final rule is effective October 3, 2016.

GOVERNMENT CONTRACTS

Detection and Avoidance of Counterfeit Electronic Parts
The DOD issued a final rule amending the DFARS to implement a requirement that addresses required sources of electronic parts for defense contractors and subcontractors.  This rule requires DOD contractors and subcontractors, except in limited circumstances, to acquire electronic parts from trusted suppliers in order to further address the avoidance of counterfeit electronic parts. DOD contractors and subcontractors that are not the original component manufacturer are required by this rule to notify the contracting officer if it is not possible to obtain an electronic part from a trusted supplier.  For those instances where the contractor obtains electronic parts from sources other than a trusted supplier, the contractor is responsible for inspection, testing, and authentication in accordance with existing applicable industry standards, 81 Fed. Reg. 50635.  The rule is effective August 2, 2016.

Amendments Related to Sources of Electronic Parts
The DOD is proposing to amend the DFARS to implement a section of the National Defense Authorization Act for Fiscal Year 2016 that makes contractors and subcontractors subject to approval, as well as review and audit, by appropriate DOD officials when identifying a contractor-approved supplier of electronic parts, 81 Fed. Reg. 50680.  Comments are due by October 3, 2016.