Counterfeit Chinese Parts Slipping Into U.S. Military Aircraft: Report

By LEE FERRAN | ABC News – 22 hrs ago

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  Counterfeit Chinese Parts Slipping …

Counterfeit electronic parts from China are "flooding" into critical U.S. military systems, including special operations helicopters andsurveillance planes, and are putting the nation's troops at risk, according to a new U.S. Senate committee report.

A year-long investigation conducted by the Senate Armed Services Committee found more than one million suspected counterfeit parts made their way into the Department of Defense's supply chainand were bound for use by "critical" military systems, according to the 70-plus-page document released Monday. In addition to Navy helicopters and surveillance planes, the parts were slated to be put into the Air Force's newest cargo planes.

"The failure of a single electronic part can leave a soldier, sailor, airman, or Marine vulnerable at the worst possible time," the report says. "Unfortunately, a flood of counterfeit electronic parts has made it a lot harder to prevent that from happening."

Chinese companies were identified as the "primary source" of the counterfeit goods and the Chinese government was criticized for its alleged disinterest in cracking down on counterfeiting there. The report said that Chinese companies take discarded electronic parts from all over the world, remove any identifying marks, wash and refurbish them, and then resell them as brand-new – a practice that poses a "significant risk" to the performance of U.S. military systems.

But the committee also pointed a finger at the Pentagon and U.S.-based defense contractors that rely on "hundreds of unvetted independent distributors."

According to the document, the investigation "revealed failures by defense contractors and [the Department of Defense] to report counterfeit parts and gaps in DoD's knowledge of the scope and impact of such parts on defense systems."

"Our committee's report makes it abundantly clear that vulnerabilities throughout the defense supply chain allow counterfeit electronic parts to infiltrate critical U.S. military systems, risking our security and the lives of the men and women who protect it," said Senate Armed Services Committee ranking member Sen. John McCain (R.-Arizona). "As directed by last year's Defense Authorization bill, the Department of Defense and its contractors must attack this problem more aggressively, particularly since counterfeiters are becoming better at shielding their dangerous fakes from detection."

DOWNLOAD: Inquiry Into Counterfeit Electronic Parts in the DoD Supply Chain (WARNING: Large PDF)

A spokesperson for the Department of Defense did not immediately respond to requests for comment on this report, but another spokesperson told CNN the Pentagon was aware of the report and officials "looked forward to reviewing it."

"The Department takes very seriously the issue about counterfeit parts," Col. Melinda Morgan said. "We are working aggressively to address this issue..."

Months after the Senate committee launched its investigation, the Pentagon said in November it was moving to protect against counterfeit parts by modifying policies and improving its internal process as well as working more closely with private companies in the industry.

Then, Defense spokesperson George Little noted that "there has been no loss of life or catastrophic mission failure as a result of these parts entering the supply chain."

Representatives for the Chinese government at its embassy in Washington, D.C., and consulate in New York, New York did not immediately respond to request for comment on this report.