§ 18444 — Counterfeit Parts

(a) The Administrator shall plan, develop, and implement a program, in coordination with other Federal agencies, to detect, track, catalog, and reduce the number of counterfeit electronic parts in the NASA supply chain. (b) In carrying out the program, the Administrator shall establish— (1) counterfeit part identification training for all employees that procure, process, distribute, and install electronic parts that will— (A) teach employees how to identify counterfeit parts; (B) educate employees on procedures to follow if they suspect a part is counterfeit; (C) regularly update employees on new threats, identification techniques, and reporting requirements; and (D) integrate industry associations, manufacturers, suppliers, and other Federal agencies, as appropriate; (2) an internal database to track all suspected and confirmed counterfeit electronic parts that will maintain, at a minimum— (A) companies and individuals known and suspected of selling counterfeit parts; (B) parts known and suspected of being counterfeit, including lot and date codes, part numbers, and part images; (C) countries of origin; (D) sources of reporting; (E) United States Customs seizures; and (F) Government-Industry Data Exchange Program reports and other public or private sector database notifications; and (3) a mechanism to report all information on suspected and confirmed counterfeit electronic parts to law enforcement agencies, industry associations, and other databases, and to issue bulletins to industry on counterfeit electronic parts and related counterfeit activity. (1) In establishing the program, the Administrator shall amend existing acquisition and procurement policy to purchase electronic parts from trusted or approved manufacturers. To determine trusted or approved manufacturers, the Administrator shall establish a list, assessed and adjusted at least annually, and create criteria for manufacturers to meet in order to be placed onto the list. (2) The criteria may include— (A) authentication or encryption codes; (B) embedded security markings in parts; (C) unique, harder to copy labels and markings; (D) identifying distinct lot and serial codes on external packaging; (E) radio frequency identification embedded into high-value parts; (F) physical destruction of all defective, damaged, and sub-standard parts that are by-products of the manufacturing process; (G) testing certifications; (H) maintenance of procedures for handling any counterfeit parts that slip through; (I) maintenance of secure facilities to prevent unauthorized access to proprietary information; and (J) maintenance of product return, buy back, and inventory control practices that limit counterfeiting. (d) Within one year after October 11, 2010, the Administrator shall report on the progress of implementing this section to the appropriate committees of Congress.