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Compliance with export controls can be essential to winning government contracts

December 14, 2016 By Andrew Smith

GAO-GovernmentAccountabilityOffice-SealAn August 2016 bid protest decision highlights the importance of government contractors having, and being able to demonstrate, an effective export controls compliance program.

As described in the U.S. Government Accountability Office’s (GAO) decision in Microwave Monolithics, Inc., B-413088 (Aug. 11, 2016), the Army eliminated Microwave Monolithics’ (MM) proposal from competition due to MM’s failure to meet the solicitation’s requirements pertaining to compliance with the International Traffic in Arms Regulations (ITAR).

The solicitation at issue required that offerors and their subcontractors demonstrate ITAR compliance, or have a viable plan to become ITAR compliant prior to contract award. Specifically, the solicitation required that the contractor show that it had appointed an employee to be responsible for ITAR compliance and had established written policies and procedures for employees performing activities subject to ITAR.

Offerors’ proposals also had to show that the contractor had established procedures for the receipt, handling, storing, implementation, and testing of ITAR-controlled items and data, procedures for the restriction of access by foreign nationals to ITAR-controlled items or data, an auditing procedure for ITAR compliance, and procedures for actions to be taken if violations were discovered.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=549398

Download the GAO decision here: http://www.gao.gov/assets/680/679029.pdf

Filed Under: Contracting Tips Tagged With: Army, export-controlled data, exporting, GAO, ITAR

DoD’s proposed rule would create additional risk and burdens for contractors handling export-controlled information

November 25, 2016 By Andrew Smith

A newly-released Proposed Rule would create a procedure for the Dept. of Defense (DoD) to release unclassified technical data subject to Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR) to “qualified contractors,” which are defined to mean qualified U.S. and Canadian contractors.

The public-comment period ends on December 30, 2016.

The Proposed Rule raises the following critical operational and legal issues for U.S. and Canadian defense contractors seeking to obtain ITAR and EAR technical data from DoD:

  1. the certification requirements related to qualification,
  2. the use of overlapping and confusing terminology throughout the rule regarding the type of information subject to the rule,
  3. the limitations on further dissemination, and
  4. the possibility of disqualification for export violations.

For a brief summary of the process, the contractor certification requirement, the type of information subject to the rule, the disclosure limitations, and the issue of disqualification, click on this link: http://www.mondaq.com/article.asp?articleid=541556

Filed Under: Contracting News Tagged With: DoD, EAR, export-controlled data, ITAR, proposed rule, technical data

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