DLA Land and Maritime recently launched a Traceability Compliance Review Program to assess contractor compliance with FAR 52.246-2, Inspection of Supplies, and DLAD Procurement Note C03, Contractor Retention of Supply Chain Traceability. 

FAR 52.246-2 and DLAD Procurement Note C03 are included in all solicitations and awards issued by DLA and are critical to ensuring the integrity of the material supplied to DLA’s military customers. FAR 52.246-2 requires a contractor to provide and maintain a documented inspection system. Records evidencing all inspections made under the system are to be “kept complete and made available to the Government during contract performance and for as long afterwards as the contract requires.” Similarly, DLAD Procurement Note C03 requires a contractor to obtain and retain, for a period of five years after final payment under the contract, documented evidence that the item of supply is from an approved manufacturing source and conforms to the technical requirements of the contract, otherwise known as “supply chain traceability documentation.” The contractor is required to immediately make such documentation available upon request of the contracting officer.
Contractors selected for compliance review will be asked to provide supply chain traceability for a specified number of recently completed purchase orders requiring the supply of the designated part number of an approved manufacturing source. If a contractor fails to respond to the request or if the documentation is determined to be inadequate, the contractor may be subject to contractual or administrative remedies, including, but not limited to, demand for payment under FAR 32.604 or administrative debarment under FAR 9.406-2.

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