diff --git a/.gitignore b/.gitignore
index fb770ae..48b285e 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,3 +1,3 @@
 SOURCES/contrib-7fbd252.tar.gz
 SOURCES/kubernetes-114a51d.tar.gz
-SOURCES/ose-a4463d9.tar.gz
+SOURCES/ose-ec7364b.tar.gz
diff --git a/.kubernetes.metadata b/.kubernetes.metadata
index 36f02b1..57ebf36 100644
--- a/.kubernetes.metadata
+++ b/.kubernetes.metadata
@@ -1,3 +1,3 @@
 aeadd20e11fecfec6428039206120bdc91d6ad3c SOURCES/contrib-7fbd252.tar.gz
 d9fc239ea31e622f4226d461bf5e5942001b34d6 SOURCES/kubernetes-114a51d.tar.gz
-7854b0cf93258f47d4fd19e9f8196cb6e7778af5 SOURCES/ose-a4463d9.tar.gz
+1ba4820ad0063672a0037f6e176df9565e3812a0 SOURCES/ose-ec7364b.tar.gz
diff --git a/SOURCES/kubernetes-accounting.conf b/SOURCES/kubernetes-accounting.conf
new file mode 100644
index 0000000..f9be0b9
--- /dev/null
+++ b/SOURCES/kubernetes-accounting.conf
@@ -0,0 +1,4 @@
+[Manager]
+DefaultCPUAccounting=yes
+DefaultMemoryAccounting=yes  
+
diff --git a/SPECS/kubernetes.spec b/SPECS/kubernetes.spec
index 54b42c4..3887e82 100644
--- a/SPECS/kubernetes.spec
+++ b/SPECS/kubernetes.spec
@@ -21,7 +21,7 @@
 # https://github.com/openshift/ose
 %global provider_prefix	%{provider}.%{provider_tld}/%{project}/%{repo}
 %global import_path     k8s.io/kubernetes
-%global commit		a4463d9a1accc9c61ae90ce5d314e248f16b9f05
+%global commit		ec7364b6e3b155e78086018aa644057edbe196e5
 %global shortcommit	%(c=%{commit}; echo ${c:0:7})
 
 %global openshift_ip    github.com/openshift/origin
@@ -48,7 +48,7 @@
 
 %global O4N_GIT_MAJOR_VERSION 3
 %global O4N_GIT_MINOR_VERSION 2+
-%global O4N_GIT_VERSION       v3.2.0.44
+%global O4N_GIT_VERSION       v3.2.1.6
 %global K8S_GIT_VERSION       v1.2.0-36-g4a3f9c5b19c7
 %global kube_version          1.2.0
 %global kube_git_version      v%{kube_version}
@@ -60,7 +60,7 @@
 
 Name:		kubernetes
 Version:	%{kube_version}
-Release:	0.12.git%{shortcommit}%{?dist}
+Release:	0.13.git%{shortcommit}%{?dist}
 Summary:        Container cluster management
 License:        ASL 2.0
 URL:            %{import_path}
@@ -68,6 +68,7 @@ ExclusiveArch:  x86_64
 Source0:        https://%{provider_prefix}/archive/%{commit}/%{repo}-%{shortcommit}.tar.gz
 Source1:        https://%{k8s_provider_prefix}/archive/%{k8s_commit}/%{k8s_repo}-%{k8s_shortcommit}.tar.gz
 Source2:        https://%{con_provider_prefix}/archive/%{con_commit}/%{con_repo}-%{con_shortcommit}.tar.gz
+Source3:        kubernetes-accounting.conf
 
 Source33:       genmanpages.sh
 Patch0:         build-with-debug-info.patch
@@ -281,6 +282,10 @@ install -d %{buildroot}%{_sharedstatedir}/kubelet
 install -d -m 0755 %{buildroot}%{_tmpfilesdir}
 install -p -m 0644 -t %{buildroot}/%{_tmpfilesdir} contrib/init/systemd/tmpfiles.d/kubernetes.conf
 
+# enable CPU and Memory accounting
+install -d -m 0755 %{buildroot}/%{_sysconfdir}/systemd/system.conf.d
+install -p -m 0644 -t %{buildroot}/%{_sysconfdir}/systemd/system.conf.d %{SOURCE3}
+
 # place files for unit-test rpm
 install -d -m 0755 %{buildroot}%{_sharedstatedir}/kubernetes-unit-test/
 pushd ../%{k8s_repo}-%{k8s_commit}
@@ -357,6 +362,7 @@ fi
 %config(noreplace) %{_sysconfdir}/%{name}/config
 %config(noreplace) %{_sysconfdir}/%{name}/kubelet
 %config(noreplace) %{_sysconfdir}/%{name}/proxy
+%config(noreplace) %{_sysconfdir}/systemd/system.conf.d/kubernetes-accounting.conf
 %{_tmpfilesdir}/kubernetes.conf
 
 %files client
@@ -393,6 +399,10 @@ getent passwd kube >/dev/null || useradd -r -g kube -d / -s /sbin/nologin \
 
 %post node
 %systemd_post kubelet kube-proxy
+# If accounting is not currently enabled systemd reexec
+if [[ `systemctl show docker kubelet | grep -q -e CPUAccounting=no -e MemoryAccounting=no; echo $?` -eq 0 ]]; then
+  systemctl daemon-reexec
+fi
 
 %preun node
 %systemd_preun kubelet kube-proxy
@@ -401,6 +411,11 @@ getent passwd kube >/dev/null || useradd -r -g kube -d / -s /sbin/nologin \
 %systemd_postun
 
 %changelog
+* Mon Jul 11 2016 jchaloup <jchaloup@redhat.com> - 1.2.0-0.13.gitec7364b
+- Update to ose v3.2.1.6
+  Enable CPU and Memory accounting on a node
+  resolves: #1354340
+
 * Sun May 29 2016 jchaloup <jchaloup@redhat.com> - 1.2.0-0.12.gita4463d9
 - Update to ose v3.2.0.44
   resolves: #1340646