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View Full Version : Counterfeit Chips Plague U.S. Missile Defense



buglerbilly
09-11-11, 12:45 AM
By Dawn Lim November 8, 2011 | 5:28 pm



You can mitigate the possibility of counterfeit parts BUT never eliminate it. The dumbass USAF General who said he would eliminate it the other week has only made himself look like a dick for his pompous arrogance............

Phony electronic parts have wound up at the U.S. Missile Defense Agency seven times in the past five years, its director told Congress on Tuesday. None of the fakes were actually deployed in active combat situations. But if they had, it might have imposed “a cost that could be measured in lives lost,” Lieutenant General Patrick O’Reilly warned the Senate Armed Services Committee Tuesday.

The flood of counterfeit goods creeping into military systems spotlights how vulnerable defense contractors’ supply chains have become, and how tricky it is to regulate them. Because the military tends to use its weapons systems for decades, its contractors have to turn to middlemen with stockpiles of obsolete parts.

For years, the Pentagon has been in overdrive trying to avoid bogus chips from tripping up its ballistic missile protection systems, even worse still, a nightmare scenario of “Trojan horse” circuits from being embedded in parts. But foreign chip-makers — especially those in China — are banging out these chips more and more cheaply, making it harder to track what’s getting mixed into military devices.

“There’s a lot of counterfeiting going on. It’s a clear and present danger. It is a threat to our troops and we are not going to let it go on,” vowed Committee chair Sen. Carl Levin.

In one case, 1,700 supposedly-new memory parts from an “unauthorized distributor” showed signs of previous use, prompting the Missile Defense Agency to have to call for almost 800 parts to be stripped from the assembled hardware. In a stockroom sweep, 67 frequency synthesizer parts had been found to have been “re-marked and falsely sold as new parts.”

The phony chips are another expensive headache for a Pentagon already facing big financial pressures. Dealing with the bogus goods cost the Missile Defense Agency about $4 million, according to the agency’s written testimony. Its director was not amused. “We do not want a $12 million THAAD [Terminal High Altitude Area Defense] interceptor to be destroyed by a $2 part,” O’Reilly told Senate Armed Services Committee.

Phony chips have started infiltrating other military services, as well. An investigation by the committee, released yesterday, uncovered dozens of instances of suspect counterfeit electronic parts in defense systems and seven aircraft, including Lockheed Martin’s C-130J transport plane and Boeing P-8A Poseidon maritime patrol aircraft.

Perhaps most disturbing, some of those parts weren’t removed for a year and a half. It took Boeing that long to recommend that the Navy remove an ice detection module it ultimately decided had “a reworked part that should not have been put on the airplane originally,” according to Levin. The part, sanded down and marked to look new, was eventually traced back to a Japanese affiliate of a company in Shenzhen, China.

Levin vowed to push contractors to control their supply chain more tightly. He also said he would call for inspections of electronics shipments at the border — in a similar way to how “vegetables and dairy products” are examined. (Good luck with that.) “We are going to act. We cannot rely on the Chinese to act. That has been proven for a long period of time.”

Photo: Wikimedia Commons

buglerbilly
09-11-11, 12:50 AM
U.S. Senators: MDA a Model for Avoiding Counterfeit Parts

By KATE BRANNEN

Published: 8 Nov 2011 17:55

Lawmakers are turning to the Missile Defense Agency (MDA) as a possible model for how the U.S. Defense Department can stop counterfeit electronic parts from entering the defense supply chain.


Missile Defense Agency Director Patrick O'Reilly said the best way to eliminate counterfeit parts is to eliminate their source, and MDA does this by limiting the use of independent parts distributors. (GETTY IMAGES)

At a Nov. 8 hearing, MDA Director Lt. Gen. Patrick O'Reilly told the Senate Armed Services Committee the steps he's taken to eliminate counterfeit electronics on missile defense systems.

Soon after he took over MDA in 2008, O'Reilly looked into the origin of counterfeit parts after they were found in a missile defense telemetry system.

"We found that all counterfeit parts were coming from independent distributors," O'Reilly said.

According to O'Reilly, MDA was unable to certify 61 percent of the independent distributors researched. O'Reilly said these distributors were deemed moderate to high risk because they could not produce a sufficient paper trail for the origins of their parts.

The Senate Armed Services Committee recently completed its own investigation, which showed most of the counterfeit electronics that make their way into U.S. military systems originate in China.

After making this discovery, the MDA director signed a ban in 2009 that prohibited all contractors from going to independent distributors without first coming to MDA for permission. O'Reilly said the best way to eliminate counterfeit parts is to eliminate their source, and MDA does this by limiting the use of independent parts distributors.

Contractors working with MDA are limited to buying parts from the original manufacturer or authorized distributors. If this isn't an option, the contractor has to prove to MDA why it needs to go to an independent distributor and must also agree to rigorously test those parts.

Committee Chairman Sen. Carl Levin, D-Mich., and Sen. John McCain, the panel's ranking member, said they plan to review MDA's procedures when they draft new legislation to be included in the 2012 defense authorization act.

Levin and McCain expressed their concern that counterfeit parts will lead to operational failures, which could put service members' lives at risk. They are also frustrated that the government continues to pick up the costs of paying for replacement parts when counterfeits are discovered.

O'Reilly told them it does not matter if a contract is cost-plus or fixed-price if it includes a clause that makes it clear the contractor has to pick up replacement costs if he buys parts from an unauthorized distributor.

Levin said the MDA's model should be followed by the military services and the Defense Department.

"We'd appreciate your input into any legislative fixes that need to be made between now and the next week or two, when hopefully we'll take up the [defense authorization bill]," McCain said.