Current Investigative Trends

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 doesnt seem right, it probably isnt.
• Focus on the Details
• Inspect your product, dont 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 someones life and its your money
  too!

8
Thank You!

• SA James P. Stoddard
• AFOSI Det 114, Fraud Division
• [phone]