U.S.

March 30, 2012

GAO reports counterfeit and bogus part numbers found on Internet purchasing platforms

Suspected counterfeit and bogus part numbers, not associated with any authentic military-grade electronic parts, were discovered on Internet purchasing platforms, while being investigated by the U.S. Senate Armed Services Committee and the Government Accountability Office, an investigative arm of Congress.

At the request of the U.S. Senate Armed Services Committee, the GAO launched an investigation in August 2011, to examine the threat of counterfeit parts sold to the Department of Defense, which could undermine the military.

“The GAO’s involvement was designed to complement the full committee’s objectives,” said Timothy Persons, chief scientist for the GAO.

The GAO created a fictitious company and gained membership to two Internet platforms providing access to vendors selling military-grade electronic parts.

“Almost anything is at risk of being counterfeited, from fasteners used on aircraft to electronics used on missile guidance systems. There can be many sources of counterfeit parts as DOD draws from a large network of global suppliers,” the report said.

After submitting requests for quotes on both platforms, the GAO selected the first of any vendor among those offering the lowest prices and that provided enough information to purchase a given part, generally within two weeks. The agency requested parts that were new, not refurbished and were in original packaging.

GAO officials stated in their report that they, “received responses from 396 vendors, of which 334 were located in China; 25 in the United States; and 37 in other countries, including the United Kingdom and Japan.”

The GAO purchased a total of 16 parts from three categories: (1) authentic part numbers for obsolete and rare parts; (2) authentic part numbers with postproduction date codes (date code after the last date the part was manufactured); and (3) bogus, or fictitious, part numbers that are not associated with any authentic parts.

Under the GAO’s selection methodology, vendors in China provided all 16 parts.

According to the GAO, of the 16 parts purchased, vendors usually responded within a day and none of the 16 parts vendors provided to the GAO were legitimate.

“More specifically, all 12 of the parts received after GAO requested rare part numbers or postproduction date codes were suspect counterfeit, according to the testing lab, and after submitting requests for bogus parts using invalid part numbers, the GAO purchased four parts from four vendors, which shows their willingness to supply parts that do not technically exist,” stated GAO officials in their report to Congress.

To determine whether the parts received were counterfeit, GAO contracted with a qualified, independent testing lab for full component authentication analysis of the first two categories of parts, but not the third (bogus) category.

“Suspect counterfeit,” which applies to the first two categories of parts that were tested, is the strongest term used by the independent testing lab, signifying a potential violation of intellectual property rights, copyrights, or trademark laws, or misrepresentation to defraud or deceive.

Multiple authentication tests, ranging from inspection with electron microscopes to X-ray analysis, revealed that the parts had been re-marked to display the part numbers and manufacturer logos of authentic parts.

Other features were found to be deficient from military standards, such as the metallic composition of certain pieces.

For the parts requested using postproduction date codes, the vendors also altered date markings to represent the parts as newer than when they were last manufactured, as verified by the parts’ makers.

According to the GAO, “Counterfeit parts can seriously disrupt the Department of Defense supply chain, harm weapon systems integrity, and endanger troops’ lives.”

In a November testimony, the GAO summarized preliminary observations from its investigation into the purchase and authenticity testing of selected, military-grade electronic parts that may enter the DOD supply chain.

The GAO worked with the Defense Logistics Agency, which provides supplies and services to U.S. military forces worldwide.

“The GAO’s results are based on a non-generalizable sample and cannot be used to make inferences about the extent to which parts are being counterfeited, ” stated GAO officials.

The Defense Logistics Agency said in an interview with the Dayton Daily News that, “It does not have estimates of how many counterfeit electronic parts are sold to the Defense Department. However, DLA officials said they regard the problem seriously and will take steps to try to keep bogus parts out of their agency’s eight supply chains.”




All of this week's top headlines to your email every Friday.


 
 

 

Headlines April 23, 2014

News: U.S. conducts spy flights over Russia - After a tit-for-tat series of delays, the United States conducted an Open Skies Treaty intelligence flight over Russian territory April 21, a State Department official said.  Army paratroopers heading to Poland after Russian annexation of Crimea - U.S. Army paratroopers are arriving in Poland to begin a series of...
 
 

News Briefs April 23, 2014

U.S. military deaths in Afghanistan at 2,177 As of April 22, 2014, at least 2,177 members of the U.S. military had died in Afghanistan as a result of the U.S.-led invasion of Afghanistan in late 2001, according to an Associated Press count. The AP count is one less than the Defense Department’s tally. At least...
 
 

Northrop Grumman sets new greenhouse gas emission reduction goal of 30 percent by 2020

Northrop Grumman announced April 22 its commitment to reduce greenhouse gas emissions by 30 percent from 2010 levels by 2020, as part of its commemoration of Earth Day.   “Northrop Grumman is dedicated to top performance in environmental sustainability,” said Wes Bush, chairman, chief executive officer and president. “This new goal sets the bar significantly...
 

 

Lockheed Martin demonstrates enhanced ground control system, software for small UAV

Lockheed Martin’s Group 1 family of unmanned aircraft systems is migrating to enhanced automation capabilities using its Kestrelô “Fly Light” flight control systems and industry-leading mobile Ground Control Station software. The increased automation allows operators to focus on executing the mission, rather than flying various aircraft. Earlier this year, Lockheed MartinR...
 
 

U.S. Navy awards General Dynamics $33 million to operate, maintain military sealift ships

The U.S. Navy has awarded General Dynamics American Overseas Marine LLC a $32.7 million contract modification to operate and maintain seven large, medium-speed, roll-on / roll-off ships for the Military Sealift Command. AMSEA is a wholly owned subsidiary of General Dynamics. Under the terms of the modification, AMSEA will provide services including crewing, engineering, maintenance,...
 
 

US Navy deploys Standard Missile-3 Block IB for first time

In partnership with the Missile Defense Agency, the U.S. Navy deployed the second-generation Standard Missile-3 Block IB made by Raytheon for the first time, initiating the second phase of the Phased Adaptive Approach. “The SM-3 Block IB’s completion of initial operational testing last year set the stage for a rapid deployment to theater,” said Dr....
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>