GAO Finds Counterfeit Military-Grade Electronic Parts Can Be Bought Online
The Government Accountability Office has published its testimony before the Senate Committee on Armed Services, stating that based on preliminary observations in an ongoing GAO investigation, counterfeit military-grade electronic parts can be found on Internet purchasing platforms and can enter the Department of Defense supply chain.
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GAO Created Fictitious Company and Bought 13 Parts from Vendors in China
GAO created a fictitious company and requested quotes from vendors on two Internet platforms. GAO purchased a total of 13 parts with numbers that fell into one of three categories: (1) authentic part numbers for obsolete and rare parts, (2) authentic part numbers with postproduction date codes (date codes after the last date the part was manufactured), and (3) invalid part numbers.1
(GAO notes that while it sent requests to both domestic and international companies, all the parts purchased and received to date were provided by vendors in China.)
Parts Failed Multiple Authenticity Tests, Some Found "Suspect Counterfeit"
GAO found that none of the seven parts for which it has complete results are authentic. Specifically, three authentic but obsolete or rare parts failed three of seven authentication analyses and were "suspect counterfeit2." The part GAO received after requesting a part with a legitimate part number and a postproduction date code failed four of seven authentication analyses and was found to misrepresent the part as nine years newer than the date it was last produced. GAO also received three bogus parts after submitting orders using invalid part numbers. GAO is awaiting authentication analysis results for two additional parts, and has not yet received another four purchases. GAO will issue its final report when its investigation is complete.
1Numbers were independently verified with Defense Logistics Agency's (DLA) Federal Logistics Information System
2Industry standards dictate that the term "counterfeit" cannot be used by an independent test lab; only the product manufacturer can deem a product counterfeit. Therefore, the term "suspect counterfeit" is defined as items that are produced or distributed in violation of intellectual property rights, copyrights, or trademark laws, as well as any items that are deliberately altered in such a way as to misrepresent the actual quality of the item with intent to defraud or deceive the purchaser.
(GAO-12-213T, dated 11/08/11)