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Update on DoD Progress in Anti-Counterfeiting April 12, 2011

Update on DoD Progress in Anti-Counterfeiting April 12, 2011. L&MR/SCI. Securing the DoD Supply Chain: The Counterfeits Challenge. Jan 2010 Dept of Commerce study and March 2010 GAO audit on counterfeit parts found: A rise in counterfeit items entering DoD supply chains

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Update on DoD Progress in Anti-Counterfeiting April 12, 2011

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  1. Update on DoD Progress in Anti-CounterfeitingApril 12, 2011 L&MR/SCI

  2. Securing the DoD Supply Chain:The Counterfeits Challenge • Jan 2010 Dept of Commerce study and March 2010 GAO audit on counterfeit parts found: • A rise in counterfeit items entering DoD supply chains • Inconsistent DoD definition of counterfeit materiel • The need for more component testing • that DoD should develop and disseminate standard guidance on antip-counterfeiting • DoD has a multi-layer process in place to detect and handle non-conforming material, of which counterfeit is an example. These processes have prevented serious incidents due to counterfeiting to date. However, the DoD cannot be complacent against this global threat

  3. What is the overall process for preventing counterfeiting? Life Cycle Controls Procurement -Approved Supplier -Authenticity -Purchase Reports Receipt - Inspect -Certify authenticity Acquisition -Parts List (IUID) -Safety Items -Controlled Inv. list Training Reporting Improvement Detect - Tools -Techniques Disposal - Standard Process - Prevent Re-enter

  4. How do we know we’re buying genuine material? Acquisition / Procurement Assess Risk at Program Level Ensure Good Quality at Source Protect Gov’t Contractually Database Critical Safety Prior Experience Anti-counterfeit mechanisms Critical Mission GIDEP* Quality controls Costs On site inspection Counterfeitability Research Indemnification / Damages IIM Levels Other Warranties Sole Source Flow Down OEM Non-traditional Acquisition Traceability Other * GIDEP – Government Industry Data Exchange Program

  5. Anti-Counterfeit Information Flow Receipt Acquisition/ Procurement Process Detection Systems Disposal Industry Input • GIDEP • Critical Items • Vendor Information • Outside Links

  6. What we’re doing • Issuing a Directive Type Memorandum (DTM) on full lifecycle anti-counterfeiting • Developed a 4 year Program Objectives and Milestones to coordinate anti-counterfeiting activities • Immediate focus on: • Service level programs and policy • Disposition of counterfeit materiel • Information sharing process • Input to White House lead initiative on counterfeiting and protection of intellectual property on procurement and regulatory policy

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