Counterfeit parts are a serious problem to the DoD supply chain and to DoD maintainers. The existence of counterfeit parts in the supply chain has the potential to reduce equipment performance and reliability, and even endanger operators and maintainers. This forum will examine the impact that counterfeit parts are having on DoD sustainment operations, and address some of the technology and processes being utilized by DoD to deter and detect counterfeit parts. Presentations will include an overview of the counterfeit parts issue and descriptions of the technology and efforts available to ensure a counterfeit free supply stock, followed by specific initiatives that DLA and the military services are employing to assess, develop, and implement technology-based capabilities designed to combat counterfeit parts.
1300-1305:Welcome –Ray Langlais (OSD-MR) Presentation
1305-1309:Administrative Notes –Debbie Lilu (NCMS)
1309-1335: Supply Chain Security Strategy Combating Counterfeit Parts -Art Beauchamp (DLA) & Dr. Riley Aumiller(HNuPhotonics)
1335-1400: USAF Counterfeit Parts Detection Perspective –Dr. Ken Beasley (AFMC)
1400-1425: Counterfeit Electronics Basics and Trends –Fred Schipp (NSWC-Crane) Presentation
1425-1450: Review of Side-Channel and Machine-Vision Based Counterfeit Detection Techniques –Dr. Diganta Das (UMD) Presentation
1450-1500:Wrap-Up –Steve McKee / Ray Langlais (OSD-MR) Presentation
Event: On 31 August 2021, the Joint Technology Exchange Group (JTEG), in coordination with the National Center for Manufacturing Sciences (NCMS), hosted a virtual forum on “Repair Parts Anti-Counterfeit Capabilities”.
Purpose: The purpose of this forum was to examine the impact that counterfeit parts are having on DoD sustainment operations, and address some of the technology and processes being utilized by DoD to deter and detect counterfeit parts. Presentations included an overview of the counterfeit parts issue and descriptions of the technology and efforts available to ensure a counterfeit free supply stock, followed by specific initiatives that DLA and the military services are employing to assess, develop, and implement technology-based capabilities designed to combat counterfeit parts.
Welcome: Ray Langlais (OSD-MR) welcomed everyone to the forum and thanked the presenters and all the listeners for their attendance. He also explained that counterfeit parts are a serious problem to the DoD supply chain and to DoD maintainers, and that the existence of counterfeit parts in the supply chain has the potential to reduce equipment performance and reliability, and even endanger operators and maintainers.
Administrative: This was an open forum. The presentations, along with questions and answers, were conducted through Adobe Connect. One of the presentations was available online during the forum at the JTEG website: http://jteg.ncms.org/ Efforts continue to get all the presentations cleared to post. A separate audio line was used. We had 75 participants from across DOD, industry, and academia join in the forum.
Supply Chain Security Strategy Combating Counterfeit Parts – Art Beauchamp (DLA) provided an overview of DLA’s end-to-end global supply management and provided an example of the impact s single counterfeit part can have on the reliability and readiness of multiple weapon systems. He described multi-pronged counterfeits parts strategy, and a data analytics platform called Business Decision Analytics (BDA) that utilizes machine learning, predictive modeling, and multiple data sources to assist users with supplier risk analysis and mitigations, quality assurance, technical data protection and procurement decisions. Dr. Riley Aumiller (HNu Photonics) provided an overview of the XTG Smart Tag Anti Counterfeit Supply Chain Tracking and Authentication System developed by HNu Photonics. It XTG features anti
counterfeit and enhanced data storage tags with dynamic database features for supply chain tracking and tracing, and is comprised of the XTG smart tags, scanner software, and a dynamic database. He discussed several examples and explained how complete product visibility throughout the supply chain is possible with nested XTG smart tags.
USAF Counterfeit Parts Detection Perspective – Dr Ken Beasley (AFMC) described the Air Force Material Command Trusted Systems and Networks (TSN) and the increased risks through three vendor tiers. He discussed China’s significant role as a world supplier of components for mobile phones, PCs and other electrical components and provided examples of counterfeit circuit board components. He also described several measures to protect the supply chain to include educating program offices and sustainment organizations, as well as including TSN management in sustainment policy and procedures.
Counterfeit Electronics Basics and Trends – Fred Schipp (NSWC-Crane) provided an overview of counterfeit electronics basics and trends that included how ERAI tracks counterfeit and high-risk electronic part issues reported by its member distributors. He described the frequency that Chinese manufactured parts are linked to counterfeit items, and how electronic waste is used to create cheap counterfeit parts. He described how old parts are re-marked and sold as new or even different parts and provided several examples of counterfeit operations uncovered by authorities. He discussed the changing trend in counterfeited manufacturers, the dangers of counterfeited assemblies, and which countries contain the most counterfeit suppliers. He also detailed some of the measures that NAVSEA is taking to identify and minimize counterfeit materiel to include locally assigning a counterfeit materiel coordinator and adding it to NAVSEA inspector general inspections. He finished by describing some of NSWC Crane’s authentication capabilities followed by several counterfeit electronic part examples.
Review of Side-Channel and Machine-Vision Based Counterfeit Detection Techniques – Dr. Diganta Das (UMD) explained that the Center for Advanced Life Cycle Engineering (CALCE) performed a study in 2019-2020 that included a review of emerging counterfeit detection systems and technologies and comparison with standards based testing. He described side-channel based counterfeit detection methods which extract part information that is external to the part. He then detailed how the results can be analyzed, to noted that the ability to identify a counterfeit part depends on the availability of an authentic part of the same vintage. He described machine-vision based counterfeit detection methods which use images from cameras, microscopes, X-rays, etc., for comparative analysis. He concluded with a taxonomy of the defects found in the study and a comparison of test methods and counterfeit part types, which found that standards-based testing for counterfeit detection remains the most effective tool and is widely available and accepted.
Q&A – A Q&A occurred after each briefer finished their presentation. Questions and answers will be posted on the JTEG website with these minutes.
Closing Comments: Ray Langlais thanked the presenters for their contributions and all the work being done to support anti-counterfeit capability developments and applications across the DoD, academia, and industry. He also introduced Steve McKee as the new Director, Enterprise Maintenance Technologies in the Office of the Deputy Assistant Secretary of Defense for Materiel Readiness (ODASD(MR)) and Steve encouraged the continuation of information exchange beyond the forum and the importance of collaboration within the DoD maintenance community.
- Obtain copies of the remaining presentations once they are approved to post to a public website, and post to the JTEG website at http://jteg.ncms.org/ .
Next JTEG Meeting: The next scheduled JTEG virtual forum is 28 September 2021, 1:00 – 3:00 pm EST. The topic is “New Additive Manufacturing Capabilities”.
POC this action is Ray Langlais, email@example.com, (571) 633-8019
Supply Chain Security Strategy Combating Counterfeit Parts – Art Beauchamp (DLA)
Q1. DLA is at the “Pointed end of the Spear” in regard to DoD anti-counterfeit operations. Can you provide an idea of the scope of the problem within DoD?
A1. I don’t know the amount, but it is in the $ millions.
Q2. Can you provide a sense of the trend in counterfeit part identification and prevention? Is it improving or getting worse?
A2. We now track how many suspect suppliers are identified and have identified 2500 suspect entities over the past couple years. We don’t have an earlier measure to compare to, but now track on a weekly basis.
Q3. Art are you doing anything with NDAA SEc 889 compliance (Sanctions on ICT)?
A3. Yes, vendors are required to certify during annual compliance update. We use a DLA tool which goes out to GSA and we are able to determine if the vendor is in compliance.
XTG Smart Tag Anti Counterfeit Supply Chain Tracking and Authentication System – Dr. Riley Aumiller (HNu Photonics)
Q1. Has the Software been approved on the DoD networks and devices?
A1. That is one of the challenges that we are working simultaneously. We are doing pilot studies.
Q2. Where is data stored? and what security is provided there?
A2. Data can be encrypted. There are a variety of storage options to include directly on tags.
Q3. How interested are the IC component manufacturers in this process? What is the benefit to the OCMs?
A3. Manufacturers are motivated to find traceability to meet DoD requirements.
Q4. Who owns these data and how long after the fact can they be accessed?
A4. They can be tailored to any given application.
Q5. Has XTG been used in any implementation of component tracking in CBM+?
A5. We have demonstrated the HNu Photonics XTG Anti-Counterfeit Protection tracking technology into the MK48 electronics assembly, and are still experimenting.
USAF Counterfeit Parts Detection Perspective – Dr Ken Beasley (AFMC)
Q1. What tool is this? Modified COTS or AF developed? (Slide 8)
A1. Vendor accessor – developed by MITRE
Comment: Follow on effort for NSWC PHD – bring together presenters with our counterfeiting office to leverage/partner work for US Navy combat and communication systems and equipment
Counterfeit Electronics Basics and Trends – Fred Schipp (NSWC-Crane)
Q1. Do most of the counterfeit parts actually function correctly, or do the systems fail to perform and the installing activity have to troubleshoot?
A1. Most do function properly. The problem is that they have already been stressed and could fail sooner.
Comment 1: 2016 GAO report recommendations on requiring GIDEP reporting is supposed to be released in DoD instructions in 2022. DLA has issued guidance already.
Comment 2: Current MASIVE worldwide chip shortage has opened the floodgates to counterfeiters.
Review of Side-Channel and Machine-Vision Based Counterfeit Detection Techniques – Dr. Diganta Das (UMD)