NSWC Crane Provides Key Support to Senate Hearing on Counterfeit Parts

CRANE, Ind., Nov. 28 -- The Naval Surface Warfare Center Crane issued the following news release:

Naval Surface Warfare Center, Crane Division's (NSWC Crane) engineering and technical expertise in counterfeit parts proved vital to the Missile Defense Agency's (MDA) testimony given to assist the Senate Armed Services Committee (SASC) hearing on Department of Defense (DoD) supply chain problems November 8, 2011.

During the hearing, Sen. Carl Levin, D-Mich., chairman of the committee, thanked NSWC Crane engineers, Fred Schipp and Isaiah Mullis for providing technical assistance to his staff during this investigation. Electronics experts at NSWC Crane are on the front lines of this national security issue and aid the MDA in its defense against counterfeit electronic parts -- the Warfare Center's insight has helped position MDA as a leader in risk management for counterfeiting.

"In our support of MDA's efforts to eliminate counterfeit parts and assist policy changes, we have developed significant knowledge about this issue, and were fortunate to be allowed to assist SASC investigators to understand the electronics supply chain and the overall counterfeit parts risk," said Fred Schipp, NSWC Crane senior engineer. "We have been assisting the Office of the Secretary of Defense's efforts to develop countermeasures to this threat and this will hopefully lead to contract language requiring all DoD programs to implement measures for counterfeit part avoidance, detection and reporting."

A single counterfeit part that fails in a critical military system such as MDA's Ballistic Missile Defense System could be devastating to our nation and puts thousands of lives at risk. The committee's investigation found approximately 1,800 cases of suspect counterfeit electronics being sold to the Pentagon. The number of parts in these cases totaled one million.

Working directly with the MDA and private industry, NSWC Crane helps develop standards and mitigation processes as well as performs testing to combat this growing problem facing the DoD.

The Warfare Center originally assisted MDA in drafting program provisions for parts management, including dealing with counterfeit parts, in 2005. NSWC Crane engineers visit parts suppliers and contractors, helping MDA programs detect and sweep stock for counterfeit parts, and developed a supplier checklist and risk assessment guide to use in supplier audits. NSWC Crane also provided guidance in developing the MDA counterfeit awareness training program brief for MDA suppliers and programs.

Counterfeiting of electronic parts has grown substantially in just the past few years, mostly because of the proliferation of "e-waste" or electronics trash being shipped overseas, and a growing parts reclamation industry in lesser-developed countries to process the waste. During the process, counterfeiters may remove electronic parts, modify them to make them appear new, or in many cases a different part altogether, and resell them to unwitting buyers. The military is a primary target for counterfeit parts because its electronic parts command a high price. As parts become obsolete or discontinued, government organizations and contractors have little choice but to either hunt for them in the open market, or pursue expensive lifetime buys at the time of obsolescence.

"Counterfeit parts are a big problem throughout the U.S. supply chain, not just in the defense industry, said Schipp. "The best way to find a counterfeit part in any electronics-intensive program is to look for it --assess suppliers, perform tests and review all failures."

NSWC Crane is a Naval laboratory and a field activity of Naval Sea Systems Command (NAVSEA) with focus areas in Special Mission, Strategic Missions and Electronic Warfare/Information Operations. The Warfare Center's research and development efforts support the Warfighter by providing capabilities and resources to advance technologies for the military.

TNS MJ88-111203-3700307 StaffFurigay