|Office of Management and Budget||Print this document|
April 9, 1991
TO THE HEADS OF EXECUTIVE AGENCIES AND ESTABLISHMENTSSUBJECT: Reporting Nonconforming Products
The Federal Acquisition Regulation (FAR) Part 46.407 requires that
contracting officers ordinarily reject nonconforming products when the
nonconformance adversely affects safety, health, reliability, durability,
performance, interchangeability, or other contract objectives. Such products,
if not detected, can compromise defense and other agency missions, result in
unanticipated replacement, repair or maintenance costs, and jeopardize public
safety and health. Nonconforming products often result from the failure of
supplies to adequately control quality and in some instances from criminal
a. Screening Information. Information should be submitted to GIDEP about nonconforming products that (1) do not meet the requirements of contracts (including purchase orders), catalogue descriptions or referenced specifications, or (2) are commonly available products or materials such as, nondevelopmental items, commercial off-the-shell items, National Stock Numbered items, catalogue items, and (3) if the nonconformance is not reported to GIDEP, continued supply or use could adversely affect other Government agencies or contractors. Information should not be transmitted to GIDEP that would not benefit other agencies or protect the public; e.g., routine acceptance test anomalies or routine quality deficiency reports. GIDEP information should be limited to situations where the nonconformity(s) adversely affect safety, health, operating performance or could result in significant maintenance cost and the nonconformity(s) has not been granted formal waivers or deviations by the acquiring agency.
b. Internal Controls. Each agency, as part of its periodic internal
controls reviews under Office of Management and Budget Circular A-123, shall
assess its programs for identifying and preventing the acquisition of
nonconforming products. As a minimum, this assessment should address:
-- The agency's procedures for assuring the quality of acquired products and materials and, where appropriate, recommendations for improving those procedures.
New assessments of agency programs for controlling nonconforming products are not required in those agencies where such assessments have been made within the past 18 months.
a. Safety, Health and other Considerations. Information about any nonconforming product that could be harmful to employees or to public safety and health should be promptly transmitted to GIDEP. Cases of fraud or suspected fraud including counterfeit and misrepresented products should be referred to the appropriate authorities in accordance with existing agency procedures. Defective or ambiguous specifications should be referred to appropriate agency officials or to the Government's specifications manager. Other causes for nonconformance should be directed to the contractor through the contracting officer.
b. Sensitive Information. Agencies shall work through their respective Inspectors General or other appropriate officers and establish specific procedures and processes for receiving and disseminating sensitive information. Special procedures are being developed to permit GIDEP to disseminate sensitive information directly to designated agency contact points. Sensitive information concerns any person or entity that is under investigation or being considered for investigation as a result of the submission of nonconforming products to an agency. Agency procedures shall ensure the timely preparation and release of sensitive information about nonconforming products to GIDEP while assuring that such information is screened prior to release to prevent (1) compromising ongoing and future criminal/civil investigations and prosecutions, or (2) the release of privileged grand jury information or information under seal by a court. The requirements of this section do not supersede existing agency regulations or procedures concerning the release of sensitive information, and in no event shall sensitive information be provided to GIDEP unless authorized by law or agreement.
c. Notifying the Supplier In addition to the actions specified in
FAR Part 46.407, GIDEP procedures shall be followed regarding notification of
suppliers of nonconforming products. Generally, these procedures require that
the specific nonconforming features of a product be identified in writing and
provided by letter to the supplier of the item. The supplier is given 15 days
to respond to the agency notice. Notice of the nonconforming product together
with the supplier's response, if any, shall be transmitted to GIDEP at the end
of the 15 day period. Information about products that have a direct adverse
impact on public safety or health shall be transmitted to GIDEP concurrent
with the notification to the supplier. GIDEP will disseminate information
about nonconforming products to all agency and private industry contact
Allan V. Burma
Agency Application for GIDEP Participation
We hereby apply for participating in the Government-Industry Data Exchange Program (GIDEP).
We agree to govern our participation in accordance with current requirements as set forth in the GIDEP Policies and Procurements Manual.
Our initial participation will be in the Failure Experience Data Interchange. Our Agency title is:
Our appointed GIDEP representative is:
Name (including middle initial): ______________________________
Phone number (including area code): _________________________
FAX number (including area code): ___________________________
Mailing Address _________________________________________
Participation in GIDEP is requested by:
If you have any questions please contact:
Center at (714) 736-4877
GIDEP Program Manager at (703) 602-2369
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