High-Risk Suppliers Increasing Sales to Government Supply Chain

According to a study by a supply chain management consultancy, the number of suppliers to the United States Government that are considered “high-risk” has increased by 63 percent over a ten year period.

In 2011, investigators found 9,539 companies that were banned from doing business with the federal government had sold technology to federal agencies. Roughly 10 percent of these incidents involved counterfeit parts or equipment.

The report by IHS stated that the number of counterfeit technology parts in the market quadrupled between 2009 and 2011.

(See our ranking of counterfeit goods.)

Source:  David Goldman, “Fake tech gear has infiltrated the U.S. government,” CNN Money, November 8, 2012.