Counterfeit Parts Redux

The issue of counterfeit parts in the U.S. supply chain is becoming  more of a “front burner” issue. We told you recently about the formal rulemaking procedures which resulted from several years of investigation, followed by legislation last December, which is now being implemented through various rulemaking proceedings. The Defense Authorization Act, signed  last December 31, mandates action by individual company suppliers. By way of background, it has been verified that many counterfeit components, mostly electronic (but now others) are being sold in substantial amounts into the U.S. government supply chain. This can lead, in the case of basic chips and other components, to failures, but, with more sophisticated implants, it can lead to loss of control at calculated intervals, or even taking over control … Continue reading

Counterfeit Regulations Still Expected This Year

By Darrell Oyer, Darrell J. Oyer & Co.:  DOD is yet to issue new regulations aimed at finding and removing counterfeit parts from the defense supply chain.  The regulations would create definitions specific to counterfeit parts, define contractors’ responsibilities and explain how the federal government will require contractor business systems to comply. Congress mandated the regulations which will require that the costs of finding and replacing counterfeit parts be on contractors who must implement the rules thorough inspection regime to prevent the parts from entering the supply chain. Specifically the regulations would: (1) ensure that prime contractors and subcontractors notify program managers when critical items are not obtained from an original manufacturer or authorized distributor; (2) establish testing and verification requirements for contract items that … Continue reading