technology security & foreign disclosure
TRANSCRIPT
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.
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Agenda
• Navy IPO • TS&FD Processes • Export Control Reform • Defense Trade Cooperation
Treaties
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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
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• 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
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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)
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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
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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
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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)
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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
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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
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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
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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
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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!
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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
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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
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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.
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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
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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
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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
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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
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Questions?