1. Standardization and GIDEP Mutual Support is Critical!

2. About GIDEP Mission Foster technical information sharing among Government agencies and Industry partners to: Increase systems’ safety, reliability, and readiness Reduce systems’ development, production, and ownership costs

3. About GIDEP History

7. Parts Standardization Standardization leads to standard processes, parts and interfaces. GIDEP exists to exchange information about parts and processes that are common between systems. GIDEP most important for broadly used parts since “quality escapes” can be harder to track down, i.e. cannot locate all “inferior” parts.

8. “But we are TQM, Acq Reform, Lean 6-Sigma …!” In 1993, GAO determined 15% chance of QA/QC discovering non-conformance (starting in industry supply chain through govt receipt/inspection/use). Now we have even fewer inspection points, Multiple supply chains, Obsolescence driven gray markets, Performance Based Logistics, Just in time delivery …

9. A Community View When nonconforming products or processes are discovered it is essential to shorten reaction time across the community to purge the problem before it gets to warfighter/public High likelihood that what you discovered is still unknown to the many others who use the part (because of std parts/processes).

10. Voluntary vs Mandatory Voluntary reporting does not work Dept of Commerce study on Counterfeits: –~ 9000 incidents of counterfeits in 2008 –10% of respondents said they know to report to GIDEP: should equal ~ 900 reports. –Actual GIDEP statistics: 35 reports/88 parts. CPSC has a big hammer.

11. Don’t you hate it when your laptop bursts into flames? In 2006, overheated lithium-ion batteries in laptop computers caught fire Dell recalled 4.1 million notebook batteries Apple, Dell, Hewlitt-Packard, Lenovo, and other companies formed standards committee under IPC – Association of Connecting Electronics Industries More efficient than each company devising individual solution to common problem Take advantage of multiple experts Battery standard due in July 2007 Notification through CPSC is mandatory

12. ANN submitted w/o parts Dept. of Commerce Survey indicated more than 9,000 counterfeit incidents during 2008. The survey also indicated that less than 15% of Original Component Manufacturers (OCM) and Board Assemblers either checked a database for information or submitted data to a database when coming into possession of a counterfeit part.... Many other counterfeit cases have been discovered by users, but were not reported via GIDEP. Data shown does not reveal instances where a GIDEP notice alerted another user who subsequently found counterfeits as a result of the notice. Component manufacturers are aware of counterfeit cases involving their products, but generally do not report those cases via GIDEP or industry “watch dog” organizations. We have been informed that one Government organization has reportedly discouraged such GIDEP notifications for fear of undermining a government investigation, but have had other Government agencies applaud GIDEP notifications. In GIDEP

14. FAR 46.402 46.407 Nonconforming supplies or services. (a)The contracting officer should reject supplies or services not conforming in all respects to contract requirements

15. OFPP 91-3 Current GIDEP Policy document: – OFPP-91-3, issued in in 1991 after the counterfeit aerospace fastener issue was discovered in DOE regulated industry – DOD already used GIDEP so policy aimed at making rest of Executive Branch participate. –Says “Federal Agencies shall participate in GIDEP”

16. 91-3 Language Purpose. … it will help eliminate instances where individual agencies or their contractors acquire products and materials previously identified as nonconforming by other agencies. Background. … The Federal Acquisition Regulation (FAR) Part 46.407 requires that contracting officers ordinarily reject nonconforming products … Nonconforming products often result from the failure of suppliers to adequately control quality and in some instances from criminal intent. Policy. … Information shall be exchanged among agencies about nonconforming products. Use the existing Government/Industry Data Exchange Program (GIDEP) a. Screening Information. Information should be submitted to GIDEP about nonconforming products that (1) do not meet the requirements of contracts (including purchase orders), catalogue descriptions or referenced specifications, or (2) are commonly available products or materials such as, nondevelopmental items, commercial off-the-shell items, National Stock Numbered items, catalogue items, and (3) if the nonconformance is not reported to GIDEP, continued supply or use could adversely affect other Government agencies or contractors.

17. Proposed GIDEP Policy All Federal Agencies and Departments shall participate in GIDEP, and compel their contractors to participate. All Federal Agencies and Departments shall ensure all major and critical non- conformances are submitted to GIDEP: –Regardless of where in supply chain it was discovered –Unless all “quality escapes” can be proven to be resolved.

18. What this means? All Federal Agencies and Departments: –Develop their internal policy to address this, –Make participation in GIDEP and submission of “non-conformance reports” a contractual requirement, and –Make the above requirement “flow-down” to sub-tier vendors,

19. BACKUP CHARTS

20. CorporationDocs submittedDocs downloaded BAE545,806 Boeing5825,778 GE5173 Harris21,493 Honeywell157,340 Northrop1620,712 Rolls Royce035 Textron0568 United Tech21,987 Lockheed10225,959 Rockwell01,294 Non-conformance reports cumulative from 2001-2009