Applied DNA Sciences Inc (APDN)

[apdn1mill]

I hope you have seen this before.

http://www.militaryaerospace.com/articles/2013/03/Mathiesen-DNA-viewpoint.html

Bob MacDowell from APDN commented on the cost of Signature DNA marking


The cost of SigNature DNA marking quoted to Lansdale, and all low-volume OCM's or distributors who will use a third party to apply their DNA mark, is $49,000. For low-volume OCM's and distributors who choose to DNA mark in-house, the cost of the program is $55,000. This includes 35k for creation of one SigNature DNA mark, 1375.00 for equipment, 6,000 for ink, 5k for training, and 2k for QC Report generation. Take off the training and equipment for DNA markers who choose to have a approved Test Lab DNA mark for them.

If DLA reimburses approximately 50 suppliers the cost will roughly be 2.5 to 2.75 million. However, the cost of rework charges due to just one counterfeit component can cost this exact amount. From the Senate Arms Hearings quote "In September 2010, the Missile Defense Agency learned that mission computers for THAAD missiles contained suspect counterfeit memory devices. According to MDA, if the devices had failed, the THAAD missile itself would likely have failed. The cost to fix the problem was nearly $2.7 million."

What is the total cost of rework charges for all the suspect, fraudulent, counterfeit components in missile defense systems, satellites, missile heads, aircraft, etc... The number is well into the hundreds of millions. And who has and will continue to pay these rework charges? Unfortunately, the taxpayer.

Some other quotes from the Senate Arms Hearings:

"The SIA (Semiconductor Industry Association) estimates that counterfeiting costs U.S. semiconductor manufacturers $7.5 billion a year in lost revenue and costs U.S. workers nearly 11,000 jobs."

"Looking at just a slice of the defense contracting universe, committee staff asked a number of large defense contractors and some of their testing companies to identify cases in which they had found suspected counterfeit parts over a 2-year period. They reported 1,800 cases covering a total of 1 million individual parts."


-Bob MacDowell direct dial - 631-444-1090; [e-mail]