Category Archives: Reporting

GIDEP Reports re Counterfeits – Jan 2011 thru Jan 2018

Here is a trend analysis of GIDEP Alerts and Problem Advisories concerning suspect counterfeits. The last time I published an analysis like this was in February of 2014[i] and its time for an update; particularly since we can anticipate FAR Case 2013-002 to wrap up this summer (Reporting of Nonconforming Items to the Government-Industry Data Exchange Program).

To my eye, this data indicates a continuing decline in GIDEP reporting of suspect counterfeit findings. From 2013 through 2015, approximately forty (40) reports were published each year. Though sixty-one (61) reports were published in 2016, twenty-four (24) of them reporting the results of forensic analysis of several parts seized during a criminal investigation; if we remove these 24 reports from the population, that leaves 37 for the year 2016 which falls below the trend from 2013 through 2015. In 2017, the total number of reports fell to nearly half that of prior years.

GIDEP reports concerning suspect counterfeit microcircuits and semiconductors represent about 90% of findings reported over the 2011 through 2017 timeframe. However, reports concerning other products types are on the rise.

Original Equipment Manufacturers have published about two-thirds of the GIDEP Alerts and Problem Advisories concerning suspect counterfeits. Independent Distributors published 28% of these reports. US Government Agencies (four of them) published 8% of these reports. One report was published by a Franchised Distributor.

[i] Counterfeit Part Reporting Trends Revisited – Observations in anticipation of forthcoming regulations



Semiannual Regulatory Agenda – FAR Case 2013-002: Reporting of Nonconforming Items to the Government-Industry Data Exchange Program

This agenda provides summary descriptions of regulations being developed by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council. The timetable for FAR Case 2013-002 shows a final rule is planned for release in June of this year…

Regulatory Agenda: Semiannual Regulatory Agenda; Regulatory Plan

(Nothing shown here for DFARS Case 2016-D013: Amendments Related to Sources of Electronic Parts)

Thoughts on Improvements to DFARS 252.246-7007 and 7008

Recent discussions with Industry and US Government subject matter experts identify a few areas where new regulations could be improved. Here are what I consider to be the more important areas to address.  Continue reading

Final Rule re: “Department of Defense (DoD)’s Defense Industrial Base Cybersecurity Activities”

“This final rule responds to public comments to the interim final rule published on October 2, 2015. This rule implements statutory requirements for DoD contractors and subcontractors to report cyber incidents that result in an actual or potentially adverse effect on a covered contractor information system or covered defense information residing therein, or on a contractor’s ability to provide operationally critical support….”

More at

GAO-16-236: DOD Needs to Improve Reporting and Oversight to Reduce Supply Chain Risk (Feb 16, 2016)

“The DOD supply chain is vulnerable to the risk of counterfeit parts, which have the potential to delay missions and ultimately endanger service members. To effectively identify and mitigate this risk, DOD began requiring its agencies in 2013 and its contractors in 2014, to report data on suspect counterfeit parts. A Senate report included a provision for GAO to review DOD’s efforts to secure its supply chain from counterfeit parts. This report examines, among other things, (1) the use of GIDEP to report counterfeits, (2) GIDEP’s effectiveness as an early warning system, and (3) DOD’s assessment of defense contractors’ systems for detecting and avoiding counterfeits.

GAO analyzed data from GIDEP for fiscal years 2011 through 2015; reviewed DOD policies, procedures, and documents; and met with agency officials and seven selected contractors based on dollar value from contracts that included a new counterfeit clause. …”

More at

Counterfeit Part Reporting Trends – Revisited

In the February 2014, I prepared a paper on counterfeit part reporting trends…

 Livingston, H., “Counterfeit Part Reporting Trends Revisited – Observations in anticipation of forthcoming regulations”, February 2014

Below is an updated chart showing the quantity of GIDEP reports (“Alerts” and “Problem Advisories”) published from January 2011 through September 2015 describing counterfeit or suspect counterfeit instances.

Continue reading

An Approach to Reporting Counterfeit Part Findings to Law Enforcement

Two articles published recently in Law360 discussed the reporting of counterfeit parts the DOD Inspector General. …

DOD Pushes Contractors to Keep Reporting Counterfeits to IG” – Part II of an interview with Randy Stone, DOD Deputy Inspector General (Law360, 30 Sep 2014)

You Don’t Have To Report Counterfeits to DOD IG” (Law360, 9 Oct 2014)

The subject of reporting counterfeit part discoveries to law enforcement and other government agencies has been a frequent discussion among government and industry stake holders for the better part of a decade.

Continue reading

Opinion – You Don’t Have To Report Counterfeits to DOD IG – LAW360 (6 Oct 2014)

Law360 has published a piece prepared by Bob Metzger that takes exception to the position of the DoD IG that contractors must disclose to the IG when they detect counterfeit electronics.

The author’s analysis is the IG’s position on reporting is not required by statute or regulation. The discovery of a counterfeit, by a contractor with a system to detect and avoid counterfeit parts, indicates that the contractor is in compliance with the law. Disclosure to the IG should be reserved to situations where the contractor knowingly engaged in fraudulent or improper activity.

The article was published yesterday (6 Oct 2014) in Law360’s sites for Government Contracts, Aerospace & Defense and Public Policy.

UPDATE: Bob Metzger provided a copy of the article. Law360 has granted him permission to post, print and email this article …

You Don’t Have To Report Counterfeits to DOD IG

Reporting Counterfeits to DODIG

The following article discusses the position of the DOD Inspector General’s Office that contractors should report all suspect counterfeit part discoveries to the DODlG …

DOD Pushes Contractors to Keep Reporting Counterfeits to IG (Law360, 30 Sep 2014)

“The Department of Defense wants contractors to continue to report to the agency’s inspector general when they discover counterfeit electronic parts, despite ambiguous instructions in a new rule that expands contractors’ responsibility for reporting and combating counterfeits …”

Your legal departments likely subscribe to Law360 and can access this article.