GAO: DoD Needs Better Intel on Fake Parts

The Defense Department needs to bolster its oversight of defense agencies to ensure they are adequately reporting suspected counterfeit parts to keep them out of the supply chain via the Government-Industry Data Exchange Program (GIDEP), a new report from the Government Accountability Office concluded.
The 2011 National Defense Authorization Act directed the DoD to disseminate rules for reporting suspected counterfeit parts, and two years later the DoD issued an agencywide policy that included mandatory reporting of suspect and counterfeit materials.
The number of reports from fiscal 2011 and 2015 peaked at just over 250 in 2011, dropping to around 125 in 2012. For the last three years, the total has hovered around or under 50.
“The DOD supply chain is vulnerable to the risk of counterfeit parts—which can have serious consequences. To effectively identify and mitigate this risk, DOD and its defense contractors need data on the existence of counterfeit parts in their supply chain; whether those be suspected or confirmed counterfeit,” the report stated. “Three years after GIDEP reporting became mandatory, we found evidence that this system may not be effective as an early warning system to prevent counterfeit parts from entering the supply chain.”