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National Contract Management Association Symposium

National Contract Management Association Symposium. Current Investigative Trends SA James P. Stoddard 30 March 10. Introduction. AFOSI Mission Current Investigative Trends Your Response. AFOSI Mission & Priorities. Mission

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National Contract Management Association Symposium

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  1. National Contract Management Association Symposium Current Investigative Trends SA James P. Stoddard 30 March 10

  2. Introduction • AFOSI Mission • Current Investigative Trends • Your Response

  3. AFOSI Mission & Priorities • Mission • To Identify, exploit and neutralize criminal, terrorist and intelligence threats to the Air Force, Department of Defense and U.S. Government. • Priorities  • Identify and resolve crime that threatens Air Force readiness or good order and discipline • Combat threats to information systems and technologies • Detect and defeat fraud impacting force acquisitions and base-level capabilities • Yes, we are kind of like that show NCIS…

  4. Current Investigative Trends • Counterfeit Microchips • Origins in China, India, Russia, Middle East, and Southeast Asia • Harvesting of Chips • Re-selling to Market (Disadvantaged businesses) • Purchase by Contractors/Sub-Contractors • Installation in USAF Weapon Systems • Results • System Failure • Espionage “What we have here is a pollution of the military supply system”

  5. The Counterfeit Process

  6. Current Investigative Trends • Counterfeit Parts • Small Machine Shops • Reverse Engineered Parts • Re-selling to Government on Surplus Market • Purchase by Contractors/Sub-Contractors • Installation in USAF Weapon Systems • Results • System Failure • Degraded System Life “Counterfeit products have been linked to the crash of mission-critical networks...”

  7. A Contract Management Response • Air Force Contracting Guiding Principals • Do the Right Thing • Ask questions… be alert… • Integrity • If it doesn’t seem right, it probably isn’t. • Focus on the Details • Inspect your product, don’t just take things for face value • Investigate your contractor or supplier • Share Knowledge & Experience • Report your suspicions, fears and concerns • Investigative agencies need to investigate • Protect our Nation, Air Force & Contracting Profession • It could save someone’s life and it’s your money too!

  8. Thank You! SA James P. Stoddard AFOSI Det 114, Fraud Division (405) 736-5717

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