A proposed Defense Department rule that would require contractors to notify the department promptly of any potential safety issues in certain kinds of items delivered under their contract is “burdensome” and “overly expansive” says two major contractor groups.  The proposed rule requires contractors to notify DOD within 72 hours regarding nonconformances in critical safety items and all nonconformances that may result in a “safety impact” for systems, subsystems, assemblies or subassemblies integral to a system.  It would apply to replenishment parts identified as “critical safety items”, systems and subsystems, assemblies and subassemblies integral to a system and support services for such systems, subsystems, assemblies or subassemblies.  In separate letters by the Professional Services Council and National Defense Industrial Assoc. the industry groups urged either numerous changes or a revision of the proposed rule.

Examples of concerns expressed include:

1.  Flow down requirements to lower tier subcontracts, particularly those providing commercial items and services are a problem.

2.  Notification requirements are too “expansive” and should be limited to “truly significant to those of safety.”  Under the proposed rules, contractors could be required to report any “bug” in software that is a part of a critical system.  Only risk of injury or loss of life rather than “all technical noncomformances” for replacement parts should be reported.

3.  The 72 hour notification time frame is too short to discover or acquire “credible information” and should be extended to five business days and must be based on “articulable facts not just a belief or suspicion.”

4.  The rule provides COs “confusing direction” what are “critical safety items” or which subsystems, assemblies or subassemblies are “integral to a system.”  Because of uncertainties, they will likely automatically include the proposed notification clause out of “an abundance of caution.”  

5.  The proposed $200,000 damage threshold triggering notification is too low and should be raised to at least $1 million.

{TAG_FORM_TITLE}