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Counterfeit Materiel -DoD/DLA Counterfeit Materiel IPT. Any materiel whose identity or pedigree has been deliberately altered, misrepresented or offered as an unauthorized product substitution is counterfeit documentationhttp://www.pbs.org/frontlineworld/stories/ghana804/. . . Courtesy of Tom Sharpe, SMT Corp.
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1. NAVAIR DMSMS Team

2. Counterfeit Materiel -DoD/DLA Counterfeit Materiel IPT Any materiel whose identity or pedigree has been deliberately altered, misrepresented or offered as an unauthorized product substitution is counterfeit documentation http://www.pbs.org/frontlineworld/stories/ghana804/

5. Vehicle Inspection Point Just Outside City of Shantou

8. Electronic Debris Stored in Front and Back Yards seen while driving through city streets

10. Shantou warehouse: Boards stacked, waiting for chip removal.

20. Pulled components prepared for counterfeiting process

23. City of Shenzhen China’s main entry point of counterfeit electronics into the global marketplace

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27. Survey results DLA Comments FRC Comments

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35. OSD-ATL and DLA IPT Definition: Any materiel whose identity or pedigree has been deliberately altered, misrepresented or offered as an unauthorized product substitution is counterfeit. Scope: Supply chains with known vulnerability to counterfeiting / unauthorized product substitution. Outcome: Establishment of a DoD Anti-Counterfeit Program 1. Policy 2. Training 3. Standardization Process 4. Reporting (GIDEP, Law Enforcement) 5. Metrics

36. Training Procurement QSLD Sourcing Risk Management Receiving Documentation Receiving Inspections Technicians / Artisans Identification Reporting-PQDR or RODS Leadership / Management Awareness Counterfeit Plan and Process Reporting Metrics

37. NAVAIR Trained 443 Artisans / 100+ staff personnel from 3 FRCs on counterfeit components detection/awareness Completed Assessment of the NASA JPL micro-electronic training course for modification to DoD application Worked with DAU to develop a Counterfeit Awareness Course as a CLL module Presented finding to 2M instructors for incorporation into the annual re-certification program DASN-ALM Counterfeit IPT DoD Counterfeit IPT

38. DLA Initiatives 5961/5962 FY08 Product Quality Deficiency Report (PQDR) 244 Valid PQDR's 161 (66%) Contractor Caused 91 (56.4%) Unapproved Substitution 32 (19.9%) Manufacturer Defect 23 (14.3%) Suspect Counterfeit 15 (10.8%) Other

39. DLA Initiatives Qualified Suppliers List – Distributors (QSLD)

40. Qualified Suppliers List – Distributors (QSLD)

41. SAE AS 5553 Counterfeit Electronic Parts; Avoidance, Detection, Mitigation, and Disposition Sources of Supply ORIGINAL COMPONENT MANUFACTURER FRANCHISED DISTRIBUTOR INDEPENDENT DISTRIBUTOR BROKER DISTRIBUTOR

42. SAE AS 5553 Counterfeit Electronic Parts; Avoidance, Detection, Mitigation, and Disposition ADOPTED by DoD 31 Aug 2009 PARTS AVAILABILITY PURCHASING PROCESS RISK STACK CHART SUPPLIER ASSESSMENT PYRAMID PROCUREMENT RISK MITIGATION SUPPLY CHAIN TRACEABILITY PROCUREMENT CONTRACT REQUIREMENTS SAMPLE CONTRACT CLAUSES

43. SAE AS 5553 Counterfeit Electronic Parts; Avoidance, Detection, Mitigation, and Disposition PRODUCT ASSURANCE SAMPLE AUTHENTICITY VERIFICATION PROCESS FLOW TEST EVALUATION RISK STACK CHART MATERIAL CONTROL CONTROL OF SCRAP OR SURPLUS PARTS OR ASSEMBLIES Control of Suspect or Confirmed Counterfeit Parts REPORTING Government Industry Data Exchange Program (GIDEP) ERAI Government Investigative Authorities Law Enforcement Agencies

44. Summary DoD’s Next Step 1. Policy 2. Training 3. Standardization Process 4. Reporting (GIDEP, Law Enforcement) 5. Metrics NAVAIR/FRCs Actions Counterfeit Component Plan ` Procedures/ Process Identification Training Reporting


NAVAIR DMSMS Team
File Name: Loenstein100420PSMCCounterfeitBrief_419326_409704.ppt

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