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Defense Contractors Begin To Feel Effect Of DoD Requirement To Provide Unique Item Identifiers And Unit Cost Information

February 9, 2004

Many DoD contractors are recognizing the potential burden of a recent DoD clause compelling contractors to mark deliverable hardware valued in excess of $5,000 with a machine-readable, unique identification sufficient to last throughout the life of the hardware. The new DoD clause, included in solicitations issued starting January 1, 2004, can also require the same type of marking for subassemblies, components, and parts embedded within the hardware and further requires contractors to furnish the Government's unit acquisition cost, which in the case of fixed-price items is simply the unit price and in cost-type contracts is an estimate of the fully burdened unit cost at the time of delivery.

For more information, please contact the professional(s) listed below, or your regular Crowell & Moring contact.

David C. Hammond
Partner – Washington, D.C.
Phone: +1.202.624.2510
John E. McCarthy Jr.
Partner – Washington, D.C.
Phone: +1.202.624.2579