International Cooperation Types of Activities

Transcription

1 1 International Cooperation Types of Activities Information Exchange Program Agreements and Annexes: 26 agreements with > 700 technical area annexes Engineer and Scientist Exchange Program: > 70 personnel exchanged among 17 countries Test and Evaluation Program Agreements: 5 agreements Cooperative R&D Programs ~ 500 with 29 countries RDT&E Program Agreements: 19 agreements 15 countries Acquisition and Cross-Servicing Agreements: 96 agreements Coproduction Programs ~ 50 with 19 countries Reciprocal Defense Procurement MOUs: 23 countries Government Quality Assurance Agreements: 18 countries

2 2 RECIPROCAL DEFENSE PROCUREMENT (RDP) MEMORANDUM OF UNDERSTANDING (MOU) Purpose! The Nations mutual objectives are to promote: Rationalization Standardization Interoperability! The Nations desire to: Develop and strengthen friendly relations Enhance and strengthen each country s industrial base Make cost-effective and rational use of resources allocated to defense Remove discriminatory barriers to purchases of defense products to the extent mutually beneficial (and consistent with national laws, regulations, policies, procedures, and international obligations)

3 3 RECIPROCAL DEFENSE PROCUREMENT MOU Principles! Allow fair competition by responsible sources of each nation for defense procurements! Reduce barriers to market access; facilitate defense procurement from industry of the other country! Exchange information on procurement-related laws, regulations, policies, administrative procedures, and international obligations! Provide information on requirements and proposed purchases! Provide adequate time for proposal submission by firms of the other country! Protect information, software, and property! Avoid making conflicting commitments! Exchange statistics on the monetary value of defense procurements awarded to firms of the other country

4 4 RECIPROCAL DEFENSE PROCUREMENT MOUs Typical Contents! Preamble! Applicability! Principles! Offsets! Customs and Duties! Procedures! Security! Implementation and Administration! Implementing Arrangements (Annexes)! Duration and Termination! Signatures of Both Parties! Industry Participation

5 5 RECIPROCAL DEFENSE PROCUREMENT (RDP) MEMORANDUM OF UNDERSTANDING (MOU) Applicability! The MOU applies to DoD and MOD procurements of: Supplies, including defense articles Services, including defense services Research and Development! The MOU does not apply to procurements of: Construction Construction materials supplied under construction contracts

6 6 Procedures to Develop a New RDP MOU! Country submits a formal request to DoD to begin the RDP MOU process! Conduct fact-finding so each party has an adequate understanding of the other s procurement system! Assess the feasibility of each of the reciprocal commitments typically included in an RDP MOU

7 7 Timeline for GQA or RDP MOU Decision and Development US receives/ replies to Formal Request Fact Finding US Request for Authority to Develop (RAD) Tech Discussions/ Negotiations US Request for Authority to Conclude (RFA); Federal Register Notice for Public Comment MOU Signing; MOU Enter into Force start 6 8 months 6 8 months 5 6 months days days About a Two Year Process US receives/ replies to Formal Request Fact Finding If both countries agree to use the State Department approved text, then U.S. submits a combined RAD/RFA. Tech Discussions for editing/mutual understanding. Federal Register Notice for Public Comment MOU Signing; MOU Enter into Force start 6 8 months days 1-10 days days About a One Year Process The document preparation is about 10% of the effort to complete the RDP MOU staffing through multiple organizations is 90% of the time required. Dates are approximate

8 8 Countries that have a Reciprocal Defense Procurement (RDP) MOU with the U. S. Department of Defense Australia Finland Norway Austria Germany Portugal Belgium Greece Spain Canada Israel Sweden Denmark Italy Switzerland Egypt Luxembourg Turkey France Netherlands United Kingdom Czech Republic Poland

9 9 Practical Effects of an RDP MOU! Qualifying Country status (DFARS )! Special treatment regarding DoD implementation of Buy American Act waiver signed DoD made a blanket public interest exception to the Buy American Act, products of the RDP MOU partner are evaluated on the same basis as U.S. products! Customs and duties waived for deliveries under covered contracts (DFARS (1))! Qualifying Country exception to law restricting procurement of items containing specialty metals and high performance magnets.! Facilitates Industry-to-Industry Partnerships Easier for U.S. industry to subcontract with companies in Japan *

10 10 BUY AMERICAN ACT (BAA) 41 USC. 10 & E.O (as amended) FAR 25.1 & DFARS Acquire only domestic end products for public use inside the United States! Domestic end product is defined as: 1. An unmanufactured end product mined or produced in the United States; or 2. An end product manufactured in the United States, if the cost of its components, mined, produced, or manufactured in the United States exceeds 50 percent of the cost of all its components.! Domestic tied to content and product, not country or company! BAA applies only at the end item level.! the Buy American Act is waived for Qualifying Countries for defense procurements (except construction).! This allows Qualifying Countries to compete with U.S. countries on a level playing field.

11 11 Restrictions on Procurement of Specialty Metals For items that contain specialty metals or high performance magnets, U.S. law 10 USC 2533b requires DoD to use specialty metals melted or produced in the U.S. or to purchase these products from Qualifying Countries. This is a very useful exception for Qualify Countries because most major weapons systems contain specialty metals and high performance magnets.

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