Counterfeit parts get the headlines, but a buyer's more common problem is a part that is real and wrong: a used unit sold as new, the wrong grade, a substitution nobody approved. The FAR has a clause for reporting counterfeit and nonconforming items. It applies to fewer contracts than most people think.
This article explains what that clause covers and excludes, what GIDEP is, which documents show where a product came from, and how a buyer can vet a reseller. We keep the claims modest. If a requirement matters to your mission, your contracting officer and your agency's quality or counsel staff decide what applies.
FAR 52.246-26: what it says
FAR 52.246-26, Reporting Nonconforming Items (Aug 2024 on acquisition.gov) is a contract clause. In plain terms, it asks the contractor to do three things.
- Screen GIDEP reports as part of its inspection or quality control program, to avoid using or delivering counterfeit items or items with a major or critical nonconformance.
- Notify the contracting officer in writing within 60 days of becoming aware, or having reason to suspect, that a purchased item or component is counterfeit or suspect counterfeit. The contractor keeps any such items in its possession until the contracting officer gives disposition instructions.
- File a GIDEP report within the same 60 days for a counterfeit or suspect counterfeit item, or for a common item with a major or critical nonconformance.
The clause defines a counterfeit item as an unlawful or unauthorized copy, substitute or modified version, knowingly presented as a genuine, unaltered product from the original manufacturer or an authorized source. The definition includes used parts sold as new and falsified grade, serial number, lot, date code or performance data. A suspect counterfeit item is one where credible evidence, such as visual inspection or testing, gives reasonable doubt that it is authentic.
There are exceptions in the clause, including for a foreign contractor with no U.S. office, place of business or fiscal paying agent, and for items under an ongoing criminal investigation unless law enforcement approves the report.
Which contracts it applies to
This is where people overstate it. FAR 46.317 tells contracting officers when to include the clause. It goes in solicitations and contracts for:
- Items subject to higher-level quality standards under FAR 52.246-11.
- Critical items the contracting officer, consulting the requiring activity, determines warrant the clause.
- For DoD acquisitions above the simplified acquisition threshold, electronic parts, or end items, components, parts or materials that contain electronic parts.
- Services where the contractor furnishes any of those items.
Equally important is what 46.317 excludes: the clause must not be used for commercial products and commercial services acquired under FAR Part 12 procedures, or for medical devices subject to FDA reporting requirements at 21 CFR 803. Most open market supply buys by small resellers are commercial products. So, in most of them, the clause will not be in the contract. Check your own contract. If the clause is there, you have your answer, and if it is not, the absence does not mean counterfeits are acceptable. Other clauses, inspection rights and the warranty still apply.
Flow-down to subcontractors is also limited. Paragraph (g) says to include the clause in subcontracts for the same categories of items, and says not to include it in subcontracts for commercial products or services.
GIDEP
GIDEP is the Government-Industry Data Exchange Program. The FAR clause describes it as an online system at gidep.org where counterfeit and nonconformance reports are filed and reviewed. The clause does not define it further, and we do not describe its membership or access rules here beyond that. If your contract requires screening or reporting, use the official site to learn how to participate, and ask your contracting officer or quality office how your agency handles access.
DoD electronic parts: DFARS 252.246-7007 and 252.246-7008
DoD adds rules for electronic parts. We mention them because they are the part of the counterfeit system most likely to apply to an electronics reseller on a defense contract. We are not describing the full rule, only what the clauses say on acquisition.gov.
- **DFARS 252.246-7007** (Jan 2023): requires contractors subject to Cost Accounting Standards to maintain a counterfeit electronic part detection and avoidance system. Many small resellers are not subject to CAS, so check whether it applies to you.
- **DFARS 252.246-7008** (Jan 2023): directs contractors to buy electronic parts first from original manufacturers, their authorized suppliers, or suppliers that obtain parts only from those sources. A contractor that is not the original manufacturer or an authorized supplier must keep risk-based traceability from the original manufacturer through government acceptance, and must inspect, test and authenticate a part when traceability cannot be established. The clause flows down in subcontracts for electronic parts, including commercial ones, except where the subcontractor is the original manufacturer.
The DoD clauses and any DoD class deviations change. Read the version in your contract.
The documents that show where a product came from
Reporting rules are reactive. Documents are what let a buyer or an inspector check a product before there is a problem. These are the ones to ask for.
| Document | What it shows | What to check |
|---|---|---|
| Certificate of conformance | The seller or manufacturer states the item meets the order's specification | Who signed it, which part numbers and lots it covers, and whether it is dated |
| Manufacturer or authorized distributor invoice | Where the seller bought the item | The seller's name, the date, quantities and part numbers matching your order |
| Chain of invoices | Each handoff from manufacturer to distributor to reseller | No gaps, no unexplained brokers |
| Packing list and labels | What actually shipped | Part numbers, lot or date codes, serial numbers, country of origin |
| Letter of authorization | That the manufacturer recognizes the seller | See the letter of authorization article |
A certificate of conformance is a statement, not proof. It is useful when it can be tied to an invoice trail. A certificate with no invoice behind it is only as good as the signer.
Records should be kept. Ask how long the seller retains them, and put the retention period you need in the order if it is not in the contract.
A buyer's checklist for vetting a reseller
- Ask for the sourcing channel per line. Manufacturer, authorized distributor, or other. Treat "other" as a reason for more questions.
- Ask for the invoice trail from the manufacturer or an authorized distributor, or the manufacturer's letter of authorization. See what an authorized reseller means.
- Ask for the certificate of conformance where the item is critical or technical, and confirm the signer and scope.
- Check the SAM.gov record for the seller's legal name and status, and compare it to the paperwork.
- Ask how substitutions are handled. The right answer is that the seller asks first, and the contracting officer decides.
- Ask what the seller does if it finds a suspect item. It should be able to describe notifying the buyer, holding the item and replacing it.
- Look at the price. A price far below every other quote deserves a question about where the product came from.
- Inspect on receipt. Check packaging, labels, serial and date codes, and condition against the order before acceptance.
- Document it. Keep the order, the quote, the paperwork and the inspection notes together.
- Escalate suspicion. Hold the item and tell the contracting officer. Do not return it to the seller until the contracting officer says what to do.
For a brand name requirement, the offer rules in FAR 52.211-6 and our brand name or equal guide cover how an equal offer is identified, which is another way a nonconforming item reaches a buyer.
For manufacturers
Help your channel prove itself. Keep your partner list current, answer verification requests quickly, and make clear which product lines are sold through which channels. A reseller that can point the buyer to your confirmation closes the question without anyone guessing.
How Lunula Supply handles it
We confirm the exact item before shipping and ask before any substitution. We label the channel on every sourcing line, and we keep a running order report for each award. When a requirement asks for an authorized source, we get the manufacturer's letter before we quote. For details, see what we supply or contact us.
Frequently asked questions
Does FAR 52.246-26 apply to every government contract?
No. FAR 46.317 limits it to certain items: those under higher-level quality standards, critical items the contracting officer designates, and, for DoD above the simplified acquisition threshold, electronic parts. It must not be used for commercial products and commercial services acquired under Part 12.
What is GIDEP?
GIDEP is the Government-Industry Data Exchange Program, an online system at gidep.org where counterfeit and nonconformance reports are filed and reviewed, according to FAR 52.246-26. Check the official site for how to participate.
Is a certificate of conformance enough to prove a part is genuine?
Not alone. It is a statement from whoever signs it. It carries weight when it is tied to an invoice trail from the manufacturer or an authorized distributor, and when part numbers and lots match the shipment.
Do the DFARS electronic parts clauses apply to small resellers?
It depends on the contract. DFARS 252.246-7007 applies to contractors subject to Cost Accounting Standards. DFARS 252.246-7008 applies where it appears in the contract and requires traceability when a contractor is not the manufacturer or an authorized supplier. Read the clauses in your contract.
General information, not legal advice. References were checked against acquisition.gov (FAC 2026-01) on the publish date. Your solicitation's terms control.