Contractors Need an Effective Export Controls Compliance Program

December 23, 2016

Compliance with Export Controls Can Be Essential to Winning Government Contracts

Source: Jones Day, D. Grayson Yeargin, Cheris J. Owen, November 2016

An 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. READ MORE….

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