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An increasing threat of counterfeit (and fraudulent) parts in the global marketplace affects every component of the program from COTS assemblies to military-unique systems. Preventing counterfeit parts from entering the supply chain reduces cost and negative impacts to program schedule and system performance. DoDI 4140.67 “DoD Counterfeit Prevention Policy” provides direction for anti-counterfeit measures for DoD weapon and information systems acquisition and sustainment to prevent the introduction of counterfeit materiel. 

Counterfeit parts are becoming pervasive in various supply chains and therefore have become a significant threat to the defense supply chain. Counterfeiters’ motives are primarily greed (profit) or malicious intent. Counterfeits may appear at all phases of the life cycle, making it necessary for the PM, Systems Engineer, and PSM to plan for prevention, detection, remediation, reporting, and restitution activities from the beginning of the life cycle to disposal and demilitarization. For more information on Anti-Counterfeiting, see the Systems Engineering Guidebook, Section 5.3.