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ARTICLE · 08 OCTOBER 2018

DoD Makes Supply Chain Risk Management A Permanent Performance Metric

Holland & Knight
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On Sept. 19, 2018, the U.S. Department of Defense (DoD) issued a corrected Class Deviation 2018-O0020, to remove the sunset provision in DFARS 239.73, "Requirements for Information Relating to Supply Chain Risk,"...

United StatesGovernment, Public Sector
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Mitchell Bashur is an associate in Holland & Knight's Tysons office

Vijaya S Surampudi is an associate in Holland & Knight's Washington D.C. office

On Sept. 19, 2018, the U.S. Department of Defense (DoD) issued a corrected Class Deviation 2018-O0020, to remove the sunset provision in DFARS 239.73, "Requirements for Information Relating to Supply Chain Risk," that was due to expire on Sept. 30, 2018. The deviation is effective immediately. This new deviation implements Section 881 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2019. Section 881 made the requirements for supply chain risk management under DFARS 239.73 permanent by placing its authority under a statute (10 U.S.C. § 2239a). This reauthorization reflects the continual efforts by Congress and the DoD to increase oversight on contractors supply chain and use risk management as a metric for contract performance.

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