Monthly Archives: December 2013

Xilinx Sues Flextronics Alleging Fraudulent Chip Resale – Bloomberg

Xilinx Inc. sued Flextronics International Ltd. (FLEX) over claims the electronics manufacturer fraudulently resold its products at marked-up prices. … “Many of these devices are incorrectly remarked in order to appear to be more expensive, higher performing devices in order to sell for a higher price,” according to the complaint. …

More at Bloomberg.

Trusted Microelectronics Workshop: Jan 15th Wash DC

The NDIA is pleased to offer their second workshop designed to identify ways in which Trusted Microelectronics can contribute to greater systems security and information assurance. The Trusted Suppliers Steering Group has organized the agenda for this half-day workshop to provoke an interactive exchange of ideas to improve security for defense systems and networks.

Trusted Microelectronics Workshop: Jan 15th Wash DC

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FAR / DFAR Case Update (20 December 2013)

Status updates from the 20 December ‘Open Cases Reports’ …

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DoD’s Annual Industrial Capabilities Report to Congress for 2013

DoD published its 2013 Annual Industrial Capabilities Report to Congress. Within this report, DoD describes counterfeit electronic parts as “one of the worst trends to emerge in military systems spare parts”. The section on CY2012 Industrial Capability Assessments includes a discussion on counterfeit prevention.

The only specific area I find where DoD reports its use of industrial capability toward counterfeit prevention concerns DLA’s application of DNA marking as an “authenticity” taggant for microcircuits. This report does not discuss areas relevant to expectation of DoD described within Section 818 of the NDAA for FY2012, such as the use of industrial capability for training personnel, ensuring traceability of parts (other than DNA marking), and inspecting and testing parts [see NDAA2012 Sec 818(b)(2)].

A copy of DoD’s full report is available here.

NDAA2014 and Proposed Amendments to NDAA2012§818

Earlier this year, the House Armed Services Committee’s proposal for NDAA2014 included amendments to NDAA2012§818 to expand the conditions under which covered contractors can qualify for exemption from strict liability associated with rework and corrective action related to counterfeit electronic parts.
The proposed NDAA2014 would amend NDAA2012 §818 regarding contractor liability in two areas…

  1. electronic parts procured from an original manufacturer or its authorized dealer or from a trusted supplier (NDAA2014 §811), and
  2. obsolete electronic parts (NDAA2014 §812)

The agreement between the House and Senate Armed Services Committees on the National Defense Authorization Act for FY 2014 announced earlier this week, however, does not include these amendments.
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Boiling the Ocean – A review of FAR Case 2012–032: Higher-Level Contract Quality Requirements

A number of us within the aerospace and defense community have discussed the need to incorporate requirements for detection and avoidance of counterfeit electronic parts into key Quality Management System (QMS) standards (e.g. ISO 9000, AS9100, etc.). With FAR Case 2012–032, DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to include counterfeit avoidance and detection standards among other higher-level quality standards in solicitations and resultant contracts. While this is a step in the right direction, the scope of this case extends far beyond DoD and electronic parts.

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FAR / DFAR Case Update (3 December 2013)

Status updates from the 3 December ‘Open Cases Reports’ …

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Product Returns to Authorized Distributors

A colleague recently approached me for my thoughts about the integrity of products returned to authorized distributors and the inspections an authorized distributor should apply to returned products before receiving them into inventory. This question was prompted by a recent report of a rare event — the sale of a counterfeit product by an authorized distributor. This escape occurred due to a lapse in the authorized distributor’s product return process. After investigating the particulars of the incident and researching other information about authorized distribution practices related to product returns, I believe the aerospace and defense electronics industry should consider the following —

Should products returned to distributors be considered authorized products?

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Proposed Rule: Higher-Level Contract Quality Requirements (FAR Case 2012-032)

DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to clarify when to use higher-level quality standards in solicitations and contracts, and to update the examples of higher-level quality standards by revising obsolete standards and adding two new industry standards that pertain to quality assurance for avoidance of counterfeit items. These standards will be used to help minimize and mitigate counterfeit items or suspect counterfeit items in Government contracting.

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