The National Defense Authorization Act & The Senate Armed Services Committee Investigation

In early 2011 US Senators Levin and McCain announced a Senate Armed Service Committee investigation into counterfeit electronic parts and the risks these parts pose to the Department of Defense supply chain.

On November 8, 2011, the Committee held its first hearing in Washington, DC during which Senator Levin promised a swift response.

Testimony during this hearing revealed the results from a congressional probe which found at least 1,800 cases of counterfeit electronics in US weapons systems covering more than 1 million suspect parts. Approximately 70 percent were traced to Chinese firms.

Panel members also testified that counterfeiting costs the semiconductor industry an estimated $7.5 billion a year in lost revenue and about 11,000 US jobs alone.

On November 29, 2011, the US Senate unanimously approved an amendment to the National Defense Authorization Act for Fiscal Year 2012. President Obama signed the Defense Bill (H.R. 1540) into law on December 31, 2011. Each year since, amendments have been made relating to the detection and avoidance of counterfeit electronic parts as rule makers respond to this evolving threat.

The Senate’s “Inquiry into Counterfeit Electronic Parts in the Defense Supply Chain” lifted the veil on counterfeit electronics across the globe.

The threat of counterfeit electronic parts continues to plague the world’s military, aerospace, defense and high tech electronics manufacturing communities.
Senate Armed Services Report
Senate Armed Services Hearing
National Defense Authorization Act
NASA Transition Authorization Act
Federal Acquisition Regulation Reporting Rule