Information on the Senate’s Counterfeit Parts Amendment

The Senate recently approved a Counterfeit Parts Amendment  in an effort to reduce the number of counterfeit electronic components in the Armed Forces supply chain. The amendment was introduced by senators Carl Levin, D-Mich. And John McCain, R-Ariz., the chairman and ranking member of the Senate Armed Services Committee. The amendment was to the National Defense Authorization Act for Fiscal Year 2012.

The amendment includes several important steps towards reducing the amount of counterfeit electronic components in the armed forces supply chain.

Here is a list of some of the specific requirements in the amendment:

• It requires DOD officials and DOD contractors who become aware of counterfeit parts in the supply chain to provide written notification to the DOD Inspector General, the contracting officer, and the Government-Industry Data Exchange Program (GIDEP) or similar program designated by the Secretary of Defense.

• It requires large DOD contractors to establish systems for detecting and avoiding counterfeit parts in their supply chains and authorizes reduction of contract payments to contractors that fail to develop adequate systems.

• It authorizes the suspension of contractors who repeatedly fail to detect and avoid counterfeit parts or otherwise fail to exercise due diligence in the detection and avoidance of counterfeit parts.

• Finally, the amendment requires DOD to define the term “counterfeit part” – a critical and long overdue step toward getting a handle on this problem.

For a more detailed list of provisions, see: