Defense Industrial Base Assessment: Counterfeit Electronics

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Type:  Report - Gov

Publisher:  U. S. Department of Commerce, Washington, DC (U.S. Dept of Commerce - DOC)

Published As:  Public


Topics:  Safeguards and Security, Contracts and Procurement, Information Technology, Operations, Maintenance, Management Systems, Quality Assurance, Oversight, Documents and Publications

In June 2009, the Bureau of Industry and Securitys (BIS) Office of Technology Evaluation (OTE) conducted a
defense industrial base assessment of counterfeit electronics. The purpose of the study was to provide statistics on the extent of the infiltration of counterfeits into U.S. defense and industrial supply chains, to provide an understanding of industry and government practices that contribute to the problem, and to identify best practices and recommendations for handling and preventing counterfeit electronics.

The assessment focused on discrete electronic components, microcircuits, and circuit board products - key elements of electronic systems that support national security, industrial, and commercial missions and operations. A total of 387 companies and organizations, representing all five segments of the supply chain, participated in the study.

OTE data revealed that 39 percent of companies and organizations participating in the survey encountered counterfeit electronics during the four-year period. Moreover, information collected highlighted an increasing number of counterfeit incidents being detected, rising from 3,868 incidents in 2005 to 9,356 incidents in 2008. These counterfeit incidents included multiple versions of DOD qualified parts and components.

The rise of counterfeit parts in the supply chain is exacerbated by demonstrated weaknesses in inventory management, procurement procedures, recordkeeping, reporting practices, inspection and testing protocols, and communication within and across all industry and government organizations.

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