‘Contractor Counterfeit Electronic Part Detection and Avoidance Systems’ … Part 2

Supplier Selection

The risk of purchasing counterfeit electronic parts is predominantly driven by the contractor’s or subcontractor’s use of suppliers.[1] The most effective way to avoid counterfeit electronic parts is to acquire and use material from the Original Component Manufacturer (OCM) or the OCM’s authorized distributor. Seeking out material from a supplier who plans to acquire material from, or possesses inventory acquired from other suppliers who are not the OCM’s authorized distributors, should only be considered when compelling need precludes acquiring material from the OCM or the OCM’s authorized distributor. The following diagram is taken from SAE International Standard AS5553[2] and presents a notional relationship between levels of risk, types of part suppliers within the supply chain and the criticality of the application where parts are to be used.

AS5553 - Fraudulent/Counterfeit Electronic Parts; Avoidance, Detection, Mitigation, and Disposition, Figure B1 - Risk Stack Chart

When selecting suppliers who are not the OCM or the OCM’s authorized distributor, contractors and subcontractors should select suppliers that have been determined to be responsible and reliable sources through organization’s established Procurement and Quality Assurance practices. The following diagram taken from AS5553[3] identifies factors for assessing and mitigating supplier risk.

rm_as5553figb2supplierassessmentchart

Standards activity is underway to document assessment criteria and to establish certification programs for a contractor and subcontractor electronic parts avoidance and detection processes.

When compelling need, such as obsolescence, precludes acquiring material from the OCM or the OCM’s authorized distributor, documented protective measures must be implemented to avoid procurement and use of counterfeit electronic parts. The following section on inspections and tests, traceability, and other methods describes the particulars.

Henry Livingston


[1] DFARS 252.246–7007 (c) (5) Use of suppliers that are the original manufacturer…

[2] AS5553 Figure B1 – Risk Stack Chart

[3] AS5553 Figure B2 – Supplier Assessment Pyramid

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