Archives: Global Defense Developments

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DoD Delivers a Mixed Report on the Health of the Defense Industrial Base

Steptoe’s Paul Hurst and Tom Barletta recently authored an advisory on the DoD’s release of its FY 2017 Annual Defense Industrial Capabilities Report (DoD Report). The DoD Report provides a comprehensive overview of DoD’s assessment of key issues and risks facing the defense industrial base (DIB), generally and in specific sectors. The DoD Report also discusses … Continue Reading

Power of the Pen: Did Chairman Corker’s Letter End US Arms Sales to Saudi Arabia?

On June 26, Senator Corker, Chairman of the Senate Foreign Relations Committee (SFRC), informed Secretary Tillerson that, in light of the current diplomatic stalemate between Saudi Arabia, the United Arab Emirates, and Qatar, the SFRC would not “provide any further clearances during the informal review period on sales of lethal military equipment” to the six … Continue Reading

Commerce Department Eases Certain Export Controls on India

Tomorrow, the Commerce Department’s Bureau of Industry and Security (BIS) will ease certain US export controls on India, as part of the US commitments under the India–US Joint Statement of June 7, 2016, which recognized the United States and India as Major Defense Partners.  BIS is amending the Export Administration Regulations (EAR) to establish a … Continue Reading

DOD Rule Would Create Export Control Issues For Contractors

On October 31, 2016, the US Department of Defense published a proposed rule titled Withholding of Unclassified Technical Data and Technology from the Public Disclosure.  Public comments on the rule are due December 30, 2016.  Essentially, the proposed rule sets forth procedures already incorporated in pre-existing DOD directives regarding the dissemination and withholding of export-controlled information associated … Continue Reading

Proposed DoD Rule on Protection of Unclassified Technical Data Would “Disqualify” Contractors with Export Violations

On October 31, 2016, the Department of Defense (DoD) published a proposed rule entitled, Withholding of Unclassified Technical Data and Technology from the Public Disclosure.  Public comments must be submitted by December 30, 2016. The proposed rule establishes DoD policy, assigns responsibilities, and prescribes procedures for the circulation and withholding of certain unclassified technical data and … Continue Reading

Deadline Approaches for Facility Security Clearance Holders to Implement Insider Threat Procedures

As Steptoe previously reported, May 2016 the DoD published updates to the National Industrial Security Operating Manual (“NISPOM,” Change 2 to DoD 5220.22-M) and an accompanying Industrial Security Letter requiring government contractors holding a facility security clearance (“FCL”) to establish or maintain a written policy by November 30, 2016 to detect, deter, and mitigate insider … Continue Reading

BIS and DDTC Finalize Export Control Definitions

On June 3, 2016 the Department of Commerce issued a final rule, and the Department of State issued an interim final rule, making changes to key definitions in the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR). The rules update the definitions of “export,” “reexport,” “release,” and “retransfer” under both the … Continue Reading

FAR Rule Issued Regarding Basic Safeguarding of Contractor Information Systems

On May 16, 2016, the Federal Acquisition Regulation (FAR) was amended to add a new subpart and contract clause for the basic safeguarding of contractor information systems that process, store or transmit Federal contract information.  The clause does not relieve contractors of any other specific safeguarding requirement specified by Federal agencies and departments as it … Continue Reading

BIS Issues Final Rule Expanding Offset Reporting to Include Sales of ‘600 Series’ Items

On March 1, 2016, the Bureau of Industry and Security (BIS) of the US Department of Commerce published a final rule that adopted, without change, its December 2, 2015 proposed rule expanding the requirements to report offsets in defense sales agreements. Effective March 31, 2016, companies must report certain offsets in the sale of items … Continue Reading

The Treasury Department and IRS Request Comments on a Potential National Security Exception for Country-by-Country Tax Reporting

The Treasury Department and the Internal Revenue Service have proposed regulations setting out a new requirement for certain U.S. persons that are the ultimate parent of a multinational group (a “U.S. MNE group”) having annual revenue of at least $850 million to file an annual report (the “CbC report”).  The CbC report would contain information … Continue Reading

DoD Issues New Rule That Allows Contractors Two Years to Implement NIST SP 800-171

On December 30, partially in response to industry concerns voiced during its December 14 public meeting, DoD issued a new interim rule further revising the August 26, 2015 Network Penetration and Cloud Computing Rule interim rule, which originally had obliged many defense contractors immediately to implement a new set of security standards for their unclassified networks.  … Continue Reading

Slides from Industry Implementation Day Meeting for DoD Network Penetration Rule Are Published Online

DoD held a public meeting on its Network Penetration and Cloud Computing Interim Rule on December 14.  The meeting was well-attended by small and large companies alike, as well as their technical and legal advisors (including ourselves).  Speakers included representatives from the DoD GC and CIO organization, as well as DIB and the DAR Council.  … Continue Reading

New FAR Rule Regarding Delinquent Tax Liabilities and Felony Convictions Increases Attention on Debarment

On December 4, DoD, GSA and NASA issued an interim rule amending the Federal Acquisition Regulation (FAR) to implement sections of the Consolidated and Further Continuing Appropriations Act, 2015, to prohibit the Federal Government from entering into a contract with any corporation having a delinquent Federal tax liability or a felony conviction under Federal law, … Continue Reading

BIS Expands Offset Reporting Requirements in Defense Sales to Include Sales of Items Controlled in “600 Series”

On December 2, 2015, the Bureau of Industry and Security (BIS) of the US Department of Commerce issued a proposed rule expanding the requirements to report offsets in defense sales agreements. The proposed rule would require companies to report certain offsets in the sale of items controlled in “600 series” Export Control Classification Numbers (ECCNs) … Continue Reading

Sanctions Partially Removed on Russian Entity to Allow Maintenance Subcontracts for Mi-17 Helicopters used in USG Programs

On September 2, 2015, the US Government announced the imposition of measures including the following against Rosoboronexport (ROE) (Russia) and any successor, sub-unit, or subsidiary thereof: “No department or agency of the United States Government may procure or enter into any contract for the procurement of any goods, technology, or services from [Rosoboronexport (ROE) (Russia) … Continue Reading

Compliance Issues Regarding the Syrian Conflict

In light of recent events related to Syria, it is possible that companies will be approached by entities seeking to arm or otherwise assist the Syrian opposition or the Kurdish Peshmerga.  We remind companies subject to the ITAR that there are significant compliance issues associated with such transfers, whether directly to the opposition or the … Continue Reading

DoD Issues Procedures, Guidance and Information (PGI) and FAQs Regarding the Network Penetration and Cloud Computing Rule

On November 18, DoD issued PGI available for the August 26, 2015 DFARS final rule that we summarized here.  Additional information is below: Network Penetration PGI Cloud Computing PGI FAQs The rule continues to attract much attention in industry, particularly because many of the definitions are ambiguous and because it was effective immediately for new … Continue Reading

Upcoming Webcast: 2015 Developments Regarding Economic Sanctions and Export Controls

Join us on Tuesday, December 15 for this complimentary webinar discussing economic sanctions, export control, and related developments over the past year.  Featured panelists include Steptoe International Compliance Blog contributors Alex Baj, Jack Hayes, Stephen Heifetz, Andy Irwin, Anthony Rapa, Meredith Rathbone, and moderator Ed Krauland. Date:   Tuesday, December 15, 2015 Time:   12:00 p.m. – 1:30 … Continue Reading