Counterfeit Prevention and Materiel Inventory

I recently received correspondence from an A&D contractor representative who observes “there seems to be little published about what suppliers have/are doing with material they already have.” 

Though not discussed directly in the literature to my knowledge, this subject is very much on the minds of mid-tier contractors and contract manufacturers. Some have accumulated inventory to support long term requirements before the counterfeit parts threat and associated supply chain issues were well understood. Others acquired inventory through mergers and acquisitions without intimate knowledge of the history of that inventory. Though willing to apply counterfeit prevention due diligence for materiel procurements going forward, some are reluctant to perform the same or similar due diligence for its inventory. I’m sure others also have observed this ambiguity when reviewing a subcontractor’s counterfeit prevention practices or responses to proposed requirements flow downs.

In the end, the buyer and subcontractor must account for risks of potential counterfeit part quality escapes where the subcontractor’s due diligence differs significantly for its inventory versus new materiel procurements.

Henry Livingston

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