Technology Security & Foreign Disclosure

Technology Security & Foreign Disclosure

Presentation to: National Defense Industrial Association

Presented by: Link Spann

Director, Technology Security & Cooperative Programs, Navy IPO 18 December 2014

DISTRIBUTION STATEMENT A. Approved for public release.

2 DISTRIBUTION STATEMENT A. Approved for public release.

Agenda

• Navy IPO • TS&FD Processes • Export Control Reform • Defense Trade Cooperation

Treaties


Admin/Security

Executive Director Mr. Rino Pivirotto

Deputy Assistant Secretary Of The Navy (International Programs),

Director, Navy IPO, & OPNAV N5T

RADM James Shannon

Information & Personnel Exchange

International Agreements

Foreign Disclosure Policy & Tech Transfer

Export Licenses

IPO 04 Business Management

Ms. Teresa Gayle

IPO 01 Technology Security

& Cooperative Programs Mr. Link Spann

EUCOM/AFRICOM

PACOM

CENTCOM

Ops/LOA Policy

Accounting

Travel

Civilian Personnel

Budget

(0-8)

(SES)

(SES) (NH-IV) IPO 02 Security Cooperation CAPT Frank Linkous

(0-6) IPO 03 Strategic Planning Mr. Steve Bowdren

Air

Surface/Land

C4ISR/EW

(NH-IV)

Counsel

Saudi Arabia

NORTH/SOUTHCOM

LSS Blackbelt Mr. Jeff Brewer

Chief Of Staff CAPT Dale Fuller

Training

MIL – 53 CIV – 122 CSS – 48 TOTAL - 223

Outreach

EDA Management

FMS Policy

Organization


• 3,072 Active FMS Cases & Amendments with 173 countries

• 6,000 Export License Appli-cations reviewed annually

• 220 Active Data Exchange Annexes with 23 countries

• 17,000 students trained annually , including 34 students that have progressed to Service Chiefs

• Management of $188M in resources, including FMS Admin, OM&N and RDT&E resources

43.5

4.4 0.775

0

10

20

30

40

50

FY14 DON Proc

FY14 FMS Sales

FY 14 IAs

$B

What We Do

Disclosure Decisions

Export License Reviews

DON Policy (TTSARB)

Nat'l Policy (NDPC)

ITAR Exemptions

CFIUS

Visit Requests Outreach

Resource Prioritization

Strategic Alignment

ESEP

Coop RDT&E

Coop Production

DEAs

Technology Security Coordination FMS Cooperation Build Maritime Partnerships

FMF

EDA

1206

LOAs

Congressional Notifications

P&As

RFIs

CSPs

MODs

DDL

Int’l Agreements

DEF

Influence Acquisition

We pursue and align international acquisition programs to support Combatant Commanders and Fleet Component Commanders objectives of improved interoperability, defense burden

sharing, and building partnership capacity.

DPRB

Country Engagements

DISTRIBUTION STATEMENT A. Approved for public release.


Glossary 1206 -- Section 1206 of the National Defense Authorization Act (NDAA) provides the Secretary of Defense authority to train

and equip foreign military forces for counterterrorism and stability operations and foreign maritime security forces for counterterrorism operations.

CFIUS -- The Committee on Foreign Investment in the United States CSPs – Country Summary Paper DEAs – Data Exchange Annexes DEF – Defense Export ability Features It is a key feature identified in "Control Costs Throughout the Product Lifecycle" section

of (USD)AT&L’s Better Buying Power Initiative 2.0.

DDL – Delegation of Disclosure Letter (used by IPO to delegate authority to SYSCOMs and other Navy offices) DPRB – Decision Point Review Board (strategic planning group in IPO) EDA – Excess Defense Articles ESEP – Engineer and Scientist Exchange Program FMF – Foreign Military Financing FMS – Foreign Military Sales ITAR -- International Traffic in Arms Regulations IA – International Agreement LOAs – Letters of Offer and Acceptance MODs – A modification to an FMS case NDPC – National Disclosure Policy Committee P&As – Price and Availability statements (i.e. an estimate in the format of an FMS case) RFI – Request for Information, normally referring to a question from an international partner TTSARB – Technology Transfer and Security Assistance Review Board (policy board within DON)


Stakeholders and Where We Fit

SECNAV OSD - USD(AT&L) USD(P) DSCA

DTSA

JOINT STAFF

USA USAF

DIA

COCOMs NAVY/USMC

COMPONENTS

N3/N5

UNDER

NAVY IPO

DUSN

STATE DEPARTMENT

US INDUSTRY

INTERNATIONAL CUSTOMER PARTNERS

COUNTRY TEAMS

NSA

INTERNATIONAL ATTACHES

MARCOR(IP)

ASN(RDA)

POLIC

Y

DASN IP, N5T Dir Navy IPO

CNO

USCG CNR ONR

NAVY IPO LNO CMC

PP&O

USCG (IP) SPAWAR NAVSUP/WSS NAVAIR NAVSEA NETSAFA NAVFAC


President Congress

Commerce Department State Department

• Export Administration Act (EAA): Commerce Department Control Of

Dual Use Items

Defense Department

• Arms Export Control Act (AECA):

Basis for State Department Control Of Munitions Exports

• Foreign Assistance Act (FAA) – IMET*

• Title 10: Department Of Defense,

Cooperative RDT&E • Title 22: Arms Export

Control Act (AECA): Authorized Foreign Military

Sales (FMS); Authorized Cooperative RDT&E And Production

* IMET = International Military Education & Training

Statutory Foundation


TS&FD Office

TS&FD Office

ATTR SSG

Navy IPO

TTSARB (Technology Transfer and

Security Assistance Review Board)

Service Recommendation

Legend = Interagency process ATTR SSG = Arms Transfer and Technology Release Senior Steering Group TS&FD Office =Technology Security and Foreign Disclosure Office

Some decisions delegated to the Navy

Balance of decisions retained by OSD

Disclosure Laws/Regs/Policies

POTUS/Congress

OSD/State USN & USMC

Full/BTT averaging 15 weeks, Case-by-cases

averaging 10 weeks

Technology Security & Foreign Disclosure

NDP (National Disclosure Policy) • NVD/INS (Night Vision Device/ Inertial Navigation

System) MTCR (Missile Technology Control Regime) • LO/CLO (Low Observable/Counter Low Observable) • DSC (Defensive Systems Committee) • AT (Anti-Tamper) • Data Links/WF (Waveform) • PNT/ GPS (Positioning, Navigation & Timing/ Global

Positioning System) Intel (Intelligence) EW (Electronic Warfare) • SAP COMSEC (Communications Security) GEOINT (Geospatial Intelligence)


TS&FD Challenges

Risks of Disclosure Risks of

Non-Disclosure

• Operational Threat • Competitive Industrial

Threat • Potential for Compromise • Precedence Threat

• Loss of Technology Control • Reduction in Interoperability • US Industrial Base

Shrinkage • Reduction in Alliance and

Political Cooperation

Getting the Right Balance


DISCLOSURE POLICY

DECISIONS

COMMERCIAL WEAPON SALES

RELEASE OF TECHNICAL INFORMATION/ PUBLICATIONS

EXCESS DEFENSE ARTICLE TRANSFERS

COOPERATIVE DEVELOPMENT/ PRODUCTION

BRIEFINGS TO FOREIGN NATIONALS

VISITS TO NAVY & CONTRACTOR FACILITIES

Disclosure Policy & Decisions Prerequisite for Many Actions

GOVERNMENT WEAPON SALES


The License Review Process

Navy ~6k

Export Administration

Regulations (EAR)

Commodity Control List

(CCL)

Industry

Defense Technology Security

Administration (DTSA)

International Traffic in

Arms Regulations

(ITAR) U.S.

Munitions List

Army

AF

State Depart. ~80K/Yr

Commerce Depart. ~25k/Yr

OSD ~65k

• DOS AVG Review Time – 24 days (CY14); < than 1% recommended for denial • National Security Presidential Directive (NSPD) 56 calls for 60 day-cycle (State & DoD) • Numbers for cases staffed to Navy remain constant

NSA

OTHERS


Export License Reviews

357

564

437

607

429

576

401

529

300

386

495 549

424

573

361

496

6 2 6 8 6 5 11 5 4 7 10 77 111

167

135 143

114 143

171

106 109

170

20.9 24.1

19.8 21 24

21 23.3 21.6

0 5 10 15 20 25 30 35 40 45 50

0

100

200

300

400

500

600

700

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Proc

essi

ng T

ime

in d

ays

Num

ber o

f Lic

ense

Ap

plic

atio

ns/M

onth

ly

Received Processed ITAR Exemptions

Tiger Team Processing time DTSA Goal


Policy vs. Export Approval Cycle Time

General Technology or Capability Policy – better if on a

World-Wide basis

Specific Request

Disclosure Policy Approval Export License

Approval

6mos.- 1 Year or More 20-25 Days Service Time

Talk To Us Early!


DoN Program Office/FDO/Industry Partner/01A/DTSA

DoN Program Office/FDO/Industry Partner/01D

DoN Program Office/Industry Partner/03/02/ COCOM POA&M

Planning for Exports

Disclosure Determination

Program Requirements

FMS/DCS?? Offsets??

TTSARB??

LO/CLO??

National??

Export Authorization Requirements

ITAR/EAR ?? “600

Series” ?? Exemptions/ Exceptions ??

Self-certified vs. certified??

Others??

Several competencies and stakeholders are

part of the solution

Timelines ROI/ROE


Export Control Reform

• Key Recommendations: – Eliminate redundancies – Strive for added transparency – Align with international control regimes

• 2010 POTUS-mandated assessment of U.S. export controls found the current U.S. export control system:

• overly complicated and overreaching

• Goal: “to build high walls around a smaller yard” to meet national security objectives in the post Cold War era


ECR Objectives

• Enhance national security by: - Increasing interoperability with NATO and other

close allies; - Reducing the current incentives for companies in

non-embargoed countries to design out or avoid US-origin content; and

- Allowing the Administration to focus its resources on the transactions of greater concern.


Status of USML Transitions USML Category # Description Key Milestones

Effective Date I Firearms TBD II Artillery TBD III Ammunition TBD

IV Launch Vehicles, Guided Missiles, Ballistic Missiles, Rockets, Torpedoes, Bombs, and Mines 07/01/2014

V Explosives and Energetic Materials, Propellants, Incendiary Agents, and Their Constituents 07/01/2014

VI Surface Vessels of War and Special Naval Equipment 01/06/2014 VII Ground Vehicles 01/06/2014 VIII Aircraft and Related Articles 10/15/2013 IX Military Training Equipment 07/01/2014 X Personal Protective Equipment 07/01/2014 XI Military Electronics 12/30/2014 XII Fire Control/Sensors/Night Vision TBD XIII Materials and Miscellaneous Articles 01/06/2014 XIV Toxicological Agents TBD XV Spacecraft and Related Articles 11/10/2014 XVI Nuclear Weapons Related Articles 07/01/2014 XVII Classified Articles, Technical Data, and Defense Services 10/15/2013 XVIII Directed Energy Weapons TBD XIX Gas Turbine Engines and Associated Equipment 10/15/2013 XX Submersible Vessels and Related Articles 01/06/2014 XXI Articles, Technical Data, and Defense Services Otherwise Not Enumerated 10/15/2013

From -- http://pmddtc.state.gov/faqs/ecr.html


Defense Trade Cooperation Treaties

• U.S. Senate ratified U.S.-UK & U.S.-Australia Defense Trade Cooperation Treaties 29 Sept 2010

• Treaties allow for the export of certain defense articles /services without need for export licenses or other ITAR approvals

• Congressional notifications still occur


DTC Requirements - Overview

• Requirements:

U.S. exporter must be

registered with the

Directorate of Defense

Trade Controls (DDTC)

Recipient/ end-user must be a member

of the Australia/ UK

Approved Communities

Intermediate consignee must be

eligible under U.S. law to

handle/receive defense articles

Export must be for an end-use specified

in the Defense

Trade Cooperation

Treaties

The defense article or defense

service is not excluded under the Treaties

Also: • The exporter must provide advance notification to DDTC for specified

transfers (e.g., exports of MDE of $25M or more), so that State can notify Congress (ITAR paragraph s 126.16(o)/§( 126.17(o), Procedures for Legislative Notification)

• Treaty-eligible transfer must be marked appropriately • Shipping/exemption records must be kept by the exporter for a minimum of

5 years


References • DDTC website

– http://www.pmddtc.state.gov/ • Arms Export and Control Act

– http://www.pmddtc.state.gov/regulations_laws/aeca.html • International Traffic in Arms Regulations

– http://pmddtc.state.gov/regulations_laws/itar_official.html • Defense Trade Cooperation Treaty

– http://pmddtc.state.gov/treaties/documents/UK_Treaty.pdf • Implementing Arrangements

– http://www.pmddtc.state.gov/treaties/documents/UK_Implementing.pdf • Approved Combined Operations and Programs

– http://www.pmddtc.state.gov/treaties/documents/UK_US_Combined_Ops.pdf • Exempted Technologies List – Part 126 Supplement Number 1

– http://www.pmddtc.state.gov/treaties/documents/UK_Supp_No_1.pdf • Approved Cooperative Programs

– http://www.pmddtc.state.gov/treaties/documents/UK_Coop_Program.pdf • Defense Federal Acquisition Regulation Supplement (DFARS)

– SUBPART 225.79—EXPORT CONTROL - http://www.acq.osd.mil/dpap/dars/dfars/html/current/252225.htm#252.225-7046

• Commerce Department Trade Advocacy – http://www.trade.gov/advocacy

http://www.pmddtc.state.gov/

http://www.pmddtc.state.gov/regulations_laws/aeca.html

http://pmddtc.state.gov/regulations_laws/itar_official.html

http://pmddtc.state.gov/treaties/documents/UK_Treaty.pdf

http://www.pmddtc.state.gov/treaties/documents/UK_Implementing.pdf

http://www.pmddtc.state.gov/treaties/documents/UK_US_Combined_Ops.pdf

http://www.pmddtc.state.gov/treaties/documents/UK_Supp_No_1.pdf

http://www.pmddtc.state.gov/treaties/documents/UK_Coop_Program.pdf

http://www.acq.osd.mil/dpap/dars/dfars/html/current/252225.htm

http://www.trade.gov/advocacy


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Technology Security & Foreign Disclosure

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