US Senate Report: Counterfeit Electronics Being Used in US Military Equipment
Poses significant safety and national security risks
A year-long report by the US Senate shows that a fairly significant number of counterfeit electronic parts are being used in US military equipment.
Counterfeit parts were found in several models of US military aircraft. (via: stripes.com)
The committee reviewed approximately 1,800 cases of suspected counterfeit parts; of these cases, more than one million counterfeit parts were involved, 70% of which were traced back to China.
“Our report outlines how this flood of counterfeit parts, overwhelmingly from China, threatens national security, the safety of our troops and American jobs,” said Sen. Carl Levin, D-Michigan, chairman of the Senate Armed Services Committee, who launched the investigation.
The failure of a key component could pose safety and national security risks. It could also lead to higher costs for the Pentagon, according to the committee.
“We do not want a $12 million missile defense interceptor’s reliability compromised by a $2 counterfeit part,” said General Patrick O’Reilly, Director of the Missile Defense Agency.
In-depth investigations
Three parts on US military aircraft, in particular, were highlighted in the committee’s investigation:
• SH-60B: Navy helicopter used to locate enemy submarines and assist with surface warfare; report notes that a part which compromised the copter’s night-vision system contained Chinese-based counterfeit parts.
• C-130 / C-27 cargo planes: Counterfeit part was used in system that informed pilots of the plane’s performance, causing system to go blank. Suspect component traced back to China.
• P8-A: Navy’s version of the Boeing 737, used for anti-submarine warfare and other duties, the military is presently testing the planes with intent to purchase, but recently found that they contained a part that shouldn’t be on the plane at all; specifically, the part was used, but refurbished so that it looked new. Upon investigation, its origin was traced back to China.
The committee did not hold back stating its disappointment with China: “Counterfeit electronic parts are sold openly in public markets in China,” the report said, adding, “Rather than acknowledging the problem and moving aggressively to shut down counterfeiters, the Chinese government has tried to avoid scrutiny.”
After China, the UK and Canada were listed as the second and third largest source countries for counterfeit parts.
Not all the blame falls on China
The report also placed blame on weaknesses in the US supply chain, saying that programs like the Department of Defense’s Government-Industry Data Exchange Program (GIDEP), which are designed to log suspected fake parts, were “woefully lacking.”
In fact, the report states that in each of the three aforementioned cases, the Department of Defense was wholly unaware that counterfeit electronic parts were installed on these defense systems; that is, until the committee’s investigation.
The report goes on, saying that between 2009 and 2010, the GIDEP received just 217 reports that related to suspected fake counterfeit components; the majority of these reports were filed by six companies. Furthermore, of the 217 reports, only 13 reports total came from government agencies.
It also criticizes cases where the US defense department reimbursed contractors for costs incurred as a result of the branch’s failure to spot fake components in the supply chain. This was part of an attempt by the military to give companies incentive to pick out counterfeit components on their own.
Lone highlight
The report did feature one highlight, though: the National Defense Authorization Act.
Levin and Arizona state senator John McCain offered an amendment to the 2012 National Defense Authorization Act to address weaknesses in the defense supply chain and to promote the adoption of aggressive counterfeit avoidance practices by the Department of Defense and the defense industry as a whole. Specifically, part of the law states that when a bad part is found on a weapons system, the contractor or parts supplier must pay to fix their problem (as opposed to the Department of Defense paying these costs).
The amendment was adopted in the final bill signed by President Barack Obama on December 31, 2011. ■
Download the full report: Inquiry into Counterfeit Electronic Parts in the Department of Defense Supply Chain
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