FLIR`s Policy

FLIR is a publicly held large business enterprise with a market cap of approximately $5B. It’s various divisions employ over 3,000 people. As such, it’s business operations must employ the most technologically advanced and most up-to-date measures possible to ensure our systems and supply chain are not compromised.

Counterfeit parts and the exclusion of them are one of the top concerns of FLIR, and its safeguarding measures are flowed down through all of our operations under its ISO:9001 certified Quality Assurance program. While FLIR is primarily a Commercial supplier providing commercial-off-the-shelf (COTS) design solutions for our customer base, we also provide goods either directly to the US Government or via first-tier supplier under the prime contractor. These requirements are then flowed down through the supply chain base, as appropriate to the product or service being provided to FLIR.

FLIR employs a commercial business model and utilizes trusted suppliers to provide the raw materials and subassembly electronics for its product offerings. The supply chain partners work under Long Term Purchase Agreements inclusive of any required flow-down regulations pursuant to the applicable product. Included therein are applicable quality provisions commensurate with the product being furnished to FLIR. As such, we flow down a Counterfeit Parts clause to our subcontractors using FLIR’s PO Quality Assurance Provisions, Doc. No. 001-0003-55 rev. 100.

The relevant flow down clause for those instances is found in the following:
QAP 26 – COUNTERFEIT PARTS
Supplier shall comply with SAE AS 5553 to prevent and mitigate the use of counterfeit parts for both electrical and non-electrical components supplied to FLIR.

• Only new and authentic materials are to be used in products delivered to FLIR. No counterfeit or suspect counterfeit parts are to be contained within the delivered product. Parts should be purchased directly from the Original Equipment Manufacturer (OEM)/ Original Component Manufacturer (OCM) or through the OCM/OEM franchised distributor.
• If suspect/counterfeit parts are furnished to FLIR and are found in any of the goods delivered, such items will be impounded by FLIR. The supplier shall promptly replace such suspect/counterfeit parts with parts acceptable to FLIR.
• All occurrences of suspect counterfeit or counterfeit parts should be immediately reported to FLIR and ERAI (an information service organization that monitors, investigates and reports issues affecting the global supply chain of electronics).
• The supplier shall flow down the applicable requirements of AS5553 to applicable sub-suppliers.

When applicable, FLIR Supply Chain will also levy any customer Counterfeit Program Requirements as identified within its contracts. The following clause is an example of same: Material Authenticity:

All material delivered under this purchase order shall be authentic and traceable to the original manufacturer. Seller shall provide authenticity and traceability records to Buyer upon request. Seller shall immediately notify Buyer if Seller cannot provide electronic parts, components, and/or assemblies traceable to the original component manufacturer (OCM)/the original equipment manufacturer (OEM). Upon receipt of such notification, Buyer reserves the right to terminate the purchase order at no cost to Buyer or provide specific material validation test and inspection protocol requirements. In the event that Seller delivers items that are determined not to be authentic, Seller shall take corrective action as required by the terms of this purchase order. Seller shall establish and maintain a material authenticity process which ensures the requirements of this clause are met. Seller’s obligation to substantiate authenticity shall survive acceptance of and payment for supplies delivered under this purchase order.

If this purchase order is for the (1) supply of electronic parts, (2) supply of end items, components, parts or assemblies containing electronic parts, or (3) provisioning of services where the Seller will supply electronic parts or components, parts, or assemblies containing electronic parts as part of the service then the provisions of paragraphs (a)–(e) of DFARS 252.246-7007, “Contractor Counterfeit Electronic Part Detection and Avoidance System,” in effect on the date of this purchase order,including its definition of “electronic parts”, are incorporated in this paragraph by reference. Where necessary to make these provisions of DFARS 252.246-7007 applicable to this purchase order “Contracting Officer” shall mean both “Contracting Officer” and “Buyer”. The substance of this clause shall be incorporated into any subcontract or purchase order entered into by Seller for the performance of any part of the work under this purchase order.