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Defense Logistics Agency (DLA) to reimburse semiconductor makers for costs of DNA marking

STONY BROOK, N.Y., 13 Feb. 2013. The U.S. Defense Logistics Agency (DLA) at Fort Belvoir, Va., will subsidize SigNature DNA marking from Applied DNA Sciences Inc. in Stony Brook, N.Y., for defense suppliers who provide designated high-reliability electronics to the DLA, Applied DNA Sciences officials say.

The DNA-marking mandate, which became effective last November, requires all semiconductors sold to the DLA to be marked with DNA-based materials unique to each government contractor. The intent is to prevent counterfeit parts from entering the DOD supply chain by authenticating each piece with a unique DNA-based signature.

The announcement, published as an update on the DLA Bid Board System (DIBBS) Website at https://www.dibbs.bsm.dla.mil also emphasizes that "effective immediately, only trusted sources who comply with Deoxyribonucleic Acid marking requirement in DLAD 52.11-9074 are eligible to receive FSC 5962 awards from DLA. There are no exceptions."

Using DNA -- sort for deoxyribonucleic acid, or the biological building block of all life -- is intended to provide a fool-proof fingerprint for each semiconductor the DOD buys to rule out the possibility of counterfeiting.

The text of the DIBBS announcement , which also appeared on DLA's on line Supplier Information Resource Center (SIRC) explains that DLA will "reimburse trusted sources who receive awards for the direct costs of the annual DNA marking license that must be obtained from Applied DNA Sciences."

The announcement, which is online at https://www.dibbs.bsm.dla.mil/notices/msgdspl.aspx?msgid=698, also notes "trusted sources will be reimbursed through a CLIN for 'Contractor DNA Marking' in the award document. Those companies will be reimbursed for one license per year." The acronym 'CLIN' refers to the DLA Contract Line Item Number system. The license to which DLA refers includes the costs for the creation and archiving of an annual mark specific to a single trusted supplier.

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-- Webcast: The DNA Marking Controversy

-- Blog: Pentagon stirs up semiconductor industry with its requirement to mark parts with unique DNA.

"DLA recognizes there are situations where small businesses and other trusted sources of FSC 5962 are not prepared to comply with the new DNA marking requirements within the cost constraints and time frames required for product deliveries," the DLA announcement reads. "Therefore, DLA is implementing a strategy to reimburse trusted sources who receive awards for the direct costs of the annual DNA marking license that must be obtained from Applied DNA Sciences (unique DNA mark, ink, authentication program, monthly reports, detector set (UV and IR), and training). Trusted sources will be reimbursed through a CLIN for “Contractor DNA Marking” in the award document. DLA will track reimbursements to ensure that trusted sources are only reimbursed for one license per year."

Since last November SigNature DNA marking from Applied DNA Sciences has been required for use by suppliers who are awarded contracts to provide electronic parts in the FSC 5962 category.

"DLA has lowered any barrier to compliance with the DNA mandate by implementing subsidized costs and safe procurement through trusted sources," says James A. Hayward, president and CEO of Applied DNA Sciences.

For more information contact Applied DNA Sciences online at www.adnas.com, or the Defense Logistics Agency at www.dla.mil.


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