SUSPECT/COUNTERFEIT ITEMS
A. Definitions.
(1) A suspect item is one that visual inspection, testing, or other means indicate may not conform to established Government or industry-accepted specifications or national consensus standards; or one whose documentation, appearance, performance, material, or other characteristics may have been misrepresented by the supplier or manufacturer.
(2) A counterfeit item is a suspect item that has been copied or substituted without legal right or authority or whose material, performance, or other characteristics are misrepresented by the supplier or manufacturer.
B. Items furnished under this Purchase Order are intended for use in a DOE facility. Suspect and counterfeit items in the following categories have been discovered at DOE sites:
- Threaded fasteners, including fasteners in assemblies such as ratchet tie-down straps, and in particular fasteners in critical load paths of lifting equipment such as fixed and mobile cranes, forklifts, scissor lifts, manlifts, balers, truck and dock lifts, elevators, conveyors, and slings.
- Electrical components (circuit breakers, semi-conductors, current and potential transformers, fuses, resistors, switchgear, overload and protective relays, motor control centers, heaters, motor generator sets, DC power supplies, AC inverters, transmitters, GFCI’s).
- Piping components (fittings, flanges, valves and valve replacement products, couplings, plugs, spacers, nozzles, pipe supports).
- Materials, including sheet, strip, castings, and other forms, and particularly materials for which welding, and heat-treating are required for conformance to specifications.
- Welding rod and electrodes.
- Computer memory modules.
Additional guidance on suspect and counterfeit items and their indicators is available at the DOE web sites http://www.eh.doe.gov/sci.
C. SELLER and its Sub suppliers shall maintain sufficient control to prevent the procurement, installation, use, and delivery of materials and equipment that contain or exhibit suspect or counterfeit item characteristics or conditions. In the event that the SELLER identifies or suspects that a suspect/counterfeit item may have been delivered under this Purchase Order, SELLER shall immediately notify BUYER. SELLER shall document and provide all available information regarding any item or service furnished under this Purchase Order that is suspected to be a suspect/counterfeit item, component, subcomponent part or material.
D. Notwithstanding any other provision of this Purchase Order, SELLER warrants that all items furnished under this Purchase Order shall be genuine, new, and unused unless otherwise specified in writing by BUYER. SELLER further warrants that all items used by SELLER in the performance of the work under this Purchase Order at Y-12 consist of all genuine, original, and new components, or are otherwise suitable for the intended purpose. SELLER’S warranty also extends to labels and/or trademarks or logos affixed, or designed to be affixed, to items supplied or delivered to BUYER.
E. DOE has determined that SAE Grades 5, 8, and 8.2 and ASTM Grade A325 fasteners, identified on DOE’s Suspect Bolt Headmark List must not be introduced into DOE facilities. (DOE’s Suspect Bolt Headmark List may be seen on the “Procurement” link at http://www.y12.doe.gov.) Therefore, such fasteners shall not be provided as deliverable end items or incorporated into deliverable end items under this Purchase Order.
F. No “fastener,” as defined by the Fastener Quality Act (the Act), 15 U.S.C. 5401 et seq., shall be supplied to BUYER as a deliverable end item or incorporated into deliverable end items unless it exhibits grade-identification markings and manufacturer’s insignia required by the Act and implementing regulations of the Department of Commerce at 15 CFR Part 280.
Records of conformance required by the Act shall be provided to BUYER by SELLER upon request.
G. Vehicles and equipment with suspect fasteners described in paragraph (e) above or other suspect/counterfeit items in critical applications are not allowed on DOE sites. (A critical application is one in which failure of the item could potentially result in injury to persons or damage to the property, equipment, or environment.)
SELLER must inspect all vehicles and equipment for suspect/counterfeit items and submit the “Suspect/Counterfeit Item Certification” to the BUYER before bringing them on site. The required Certification form is available on the “Procurement” link at: http://www.y12.doe.gov.
Vehicles and equipment on site owned or controlled by the SELLER and found to contain suspect/counterfeit items must not be further used pending a BUYER evaluation. If BUYER determines that the suspect/counterfeit items are in critical applications, the items must be repaired or replaced before the vehicles or equipment may be returned to use. Repair or replacement will be at SELLER’s expense.
H. Molded case circuit breakers that cannot be substantiated by SELLER as new, or that give an appearance to BUYER inspectors or electricians of having been used, refurbished, or reconditioned may be rejected by BUYER on the basis of appearance alone.
BUYER may obtain an opinion from the original manufacturer concerning legitimacy of any molded case circuit breaker furnished under this Purchase Order. BUYER may reject any molded case circuit breaker provided by SELLER based on the manufacturer’s opinion.
(1) If a molded case circuit breaker is not provided by SELLER in the original manufacturer’s packaging, SELLER shall notify BUYER prior to shipment and shall provide the specific identification and markings of the container(s) to be supplied.
(2) The original manufacturer’s markings, date code if used, and labels shall not have been altered or obliterated.
The handle of the molded case circuit breaker shall show the original manufacturer’s rating in a “hot stamp” which shall not be subsequently altered or obliterated.
(4) Terminal configuration and hardware shall not have been altered or modified from the original equipment provided by the manufacturer.
(5) All molded case circuit breakers shall be Underwriters’ Laboratory (UL) rated, listed, approved, and accordingly labeled.
I. Equipment or assemblies that consist of or contain electrical components shall exhibit, as applicable, legible amperage and voltage ratings, operating parameters, and the product manufacturer’s original labels and identification. Electrical components shall exhibit, labels from a nationally recognized testing laboratory.
J. Materials and equipment delivered under this Purchase Order shall exhibit the manufacturer’s original labels and identification.
K. SELLER shall indemnify BUYER, its agents, and assignees for any financial loss, injury, or property damage resulting directly or indirectly from material, components, or parts furnished or used under this Purchase Order that are not genuine, original, and unused, or otherwise not suitable for the intended purpose. SELLER’s indemnity includes any financial loss, injury, or property damage resulting directly or indirectly from items furnished or used under this Purchase Order that are defective, suspect, or counterfeit; or that have been provided under false pretenses; or that are materially altered, damaged, deteriorated, degraded, or result in product failure.
L. Suspect/counterfeit items furnished under this Purchase Order will be impounded by BUYER. SELLER must promptly replace them with items acceptable to BUYER, and SELLER shall be liable for all costs relating to discovery, removal, impoundment, and replacement of materials and equipment that contain or exhibit suspect or counterfeit item characteristics or conditions.
M. Detection by BUYER of any suspect or counterfeit condition may result in an investigation by the U.S. Government.
N. The rights of BUYER in this clause are in addition to any other rights provided by law or contract.
O. SELLER shall include this clause in Sub supplier agreements hereunder.