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Air Force Office of Special Investigations

Current Investigative Trends

SA James P. Stoddard

30 March 10

National Contract Management Association Symposium

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Introduction

AFOSI Mission Current Investigative Trends Your Response

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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…

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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”What we have here is a pollution of the military supply system”““What we have here is a pollution of the military supply system”What we have here is a pollution of the military supply system”

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The Counterfeit Process

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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...”Counterfeit products have been linked to the crash of mission-critical networks...”““Counterfeit products have been linked to the crash of mission-critical networks...”Counterfeit products have been linked to the crash of mission-critical networks...”

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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!

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SA James P. StoddardAFOSI Det 114, Fraud Division(405) 736-5717

Thank You!