Memorandum van overeenstemming tussen het Koninkrijk der Nederlanden en de Verenigde Staten van Amerika over samenwerking inzake defensiematerieel, 's-Gravenhage, 24-08-1978

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Memorandum van overeenstemming tussen het Koninkrijk der Nederlanden en de Verenigde Staten van Amerika over samenwerking inzake defensiematerieel

Authentiek : EN

Preamble

The Government of the Kingdom of the Netherlands and the Government of the United States of America, duly represented by their Ministers of Defense:

Intending to increase their respective defense capabilities through more efficient cooperation in the fields of research and development, production and procurement in order to:

  • - Make the most cost-effective and rational use of the resources available for defense,

  • - Ensure the widest possible use of standard or interoperable equipment,

  • - Develop and maintain an advanced industrial and technological capability for the North Atlantic Alliance, and particularly with respect to the parties to this Memorandum of Understanding (MOU), and

Seeking to improve the present situation and to strengthen their military capability and economic position through the further acquisition of standard or interoperable equipment, and

Recalling that they had agreed, as members of the Alliance, to maximum cooperation in procurement as set forth in Annex A to NATO Document C-M(73)51 (revised), dated 20 August 1973,

Have entered into this Memorandum of Understanding in order to achieve the above aims.

This Memorandum of Understanding sets out the guiding principles governing mutual cooperation in research and development, production and procurement of conventional defense equipment.

The two Governments conclude this MOU to strengthen the North Atlantic Alliance. In so doing, the Governments are fully aware that the Independent European Program Group (IEPG) wants to enhance equipment collaboration by more comprehensive and systematic arrangements. They therefore agree that in the event of a possible conflict between agreements entered into between the IEPG and the Government of the United States, and this MOU, the parties hereto will consult with a view to amending this MOU.

The two Governments further agree that this MOU should be viewed in the larger context of the cooperation between Europe and North America within the Alliance and that this cooperation will be carried out pursuant to the Mutual Defense Assistance Agreement between the Government of the United States of America and the Government of the Kingdom of the Netherlands, signed 27 January 1950.

Article I. Principles Governing Reciprocal Defense Cooperation

  • 1 Both Governments intend to facilitate the mutual flow of defense procurement, taking into consideration relative technological levels of such procurement, and consistent with their national policies. This facilitation shall be sought through the provision of opportunities to compete for procurements of defense equipment and services as well as through the coproduction of defense equipment and defense R&D cooperation.

  • 2 This MOU is intended to cover areas in which possible bilateral cooperation could be achieved in research and development, production and procurement of conventional defense equipment, complementing the work of the Conference of National Armament Directors (CNAD) and the Independent European Program Group (IEPG).

  • 3 The two Governments will, consistent with their relevant laws and regulations, give the fullest consideration to all requests for cooperative R&D, and to all requests for production and procurement which are intended to enhance standardization and/or interoperability within the Alliance.

  • 4 In the interests of standardization and the effective utilization of scarce resources, the two Governments shall, to the extent possible, adopt qualified defense items that have been developed or produced in the other country to meet their requirements. Defense items or services are those items or services which may be procured utilizing appropriated funds of the U.S. Department of Defense or budgeted funds of the Netherlands Ministry of Defense.

  • 5 The two Governments shall mutually determine the counting procedures to be laid down in an Annex to this MOU that will apply to all defense items and defense services purchased by them directly or through their relevant industries under this MOU.

  • 6 Each Government shall from time to time notify the other Government of defense items that may not be acquired by the notifying Government from other than domestic sources, as well as those defense items that may be particularly suitable for acquisition by the other Government.

  • 7 Both Governments will provide appropriate policy guidance and administrative procedures within their respective defense acquisition organizations to facilitate achievement of the aims of this MOU.

  • 8 Competitive contracting procedures shall normally be used in acquiring items of defense equipment developed or produced in each other's country for use by either country’s defense establishment.

  • 9 The detailed implementing procedures, to be agreed, will, consistent with and to the extent permitted by national laws and regulations, incorporate the following:

    • a. Offers or proposals will be evaluated without applying price differentials under buy national laws and regulations and without applying the costs of import duties;

    • b. Full consideration will be given to all qualified industrial and/or governmental resources in each other’s country;

    • c. Offers or proposals will be required to satisfy requirements of the purchasing Government for performance, quality, delivery and costs.

  • 10 Both Governments will review items submitted as candidates for respective requirements. They will indicate requirements and proposed purchases in a timely fashion to ensure adequate time for their respective industries to qualify for eligibility and submit a bid or proposal.

  • 11 Each Government will ensure that the technical data packages (TDP’s) made available under this MOU are not used for any purpose other than for the purpose of bidding on, and performing, a prospective defense contract without the prior agreement of those owning or controlling proprietary rights and that full protection shall be given to such proprietary rights, or to any privileged, protected, or classified data and information they contain. In no event shall the TDP’s be transferred to any third country or any other transferee without the prior written consent of the originating Government.

  • 12 Both Governments will use their best efforts to assist in negotiating licenses, royalties and technical information exchanges with their respective industries or other owners of such rights.

  • 13 Arrangements and procedures will, at the request of the purchasing government, be established concerning follow-on logistic support for items of defense equipment, purchased pursuant to this MOU. Both Governments will make their defense logistic systems and resources available for this purpose as required and mutually agreed.

Article II. Implementing Procedures

  • 1 Representatives of the two Governments will be appointed to determine in detail the procedures for implementing this MOU and the therms of reference for a Netherlands-U.S. Committee for Procurement Cooperation.

  • 2 The Under Secretary of Defense for Research and Engineering, in cooperation with the Assistant Secretary of Defense for International Security Affairs, the Assistant Secretary of Defense for Manpower, Reserve Affairs and Logistics, the Director, Defense Security Assistance Agency, and other appropriate Department of Defense officials, will be the responsible authority in the United States Government for the development of implementing procedures under this MOU.

  • 3 The Director General for Materiel in the Ministry of Defense, in cooperation with other appropriate government authorities, will be the responsible authority of the Government of the Netherlands for the development of the implementing procedures under this MOU.

Article III. Industry Participation

  • 1 Each Government will be responsible for calling to the attention of the relevant industries within its territory the basic understanding of this MOU, together with appropriate implementing guidance. Both Governments will take all necessary steps so that the industries comply with the regulations pertaining to security and to safeguarding classified information.

  • 2 Implementing of this MOU will involve full industrial participation. Accordingly, the Governments will arrange to inform their respective procurement and requirements offices concerning the principles and objectives of this MOU. However, primary responsibility for finding business opportunities in areas of research and development and production shall rest with the industries in each nation.

Article IV. Security

To the extent that any items, plans, specifications or information furnished in connection with the specific implementation of this MOU are classified by either Government for security purposes, the other Government shall maintain a similar classification and employ all measures necessary to preserve such security equivalent to those measures employed by the classifying Government throughout the period during which the classifying Government may maintain such classifications.

Article V. Administration

  • 1 The Netherlands-U.S. Committee for Procurement Cooperation, referred to in Article II above, will meet as agreed or at the request of either Government to review progress in implementing the MOU. They will discuss research and development, production and procurement needs of each nation and the likely areas of cooperation; agree to the basis of, and keep under review, the financial statement referred to below; and consider any other matters relevant to the MOU.

  • 2 Each Government will designate points of contact at the Ministry of Defense level and in each purchasing service/agency under the Ministries of Defense.

  • 3 An annual United States-Netherlands statement of the current balance, and long-term trends, of R&D cooperation and purchases between the two nations will be prepared on a basis to be mutually agreed. Such statement will take account of United States-Netherlands purchases of defense equipment and services and related offset agreements effected in the years from 1973 onwards and will be periodically reviewed.

Article VI. Annexes

Annexes negotiated by the responsible officials and approved by the appropriate Government authorities will be incorporated in this MOU.

Article VII. Duration

  • 1 This MOU will remain in effect for a ten-year period and will be extended for successive five-year periods, unless the Governments mutually decide otherwise.

  • 2 If, however, either Government considers it necessary for compelling national reasons to terminate its participation under this MOU before the end of the ten-year period, or any extension thereof, written notification of its intention will be given to the other Government six months in advance of the effective date of termination. Such notification of intent shall become a matter of immediate consultation with the other Government to enable the Governments fully to evaluate the consequences of such termination and, in the spirit of cooperation, to take such actions as necessary to alleviate problems that may result from the termination. In this connection, although the MOU may be terminated by the Parties, any contract entered into consistent with the terms of this MOU shall continue in effect, unless the contract is terminated in accordance with its own terms.

  • 3 The Parties hereto agree that, for the purposes of this MOU, references to the Kingdom of the Netherlands shall apply only to its territory in Europe.

Article VIII. Implementation

This MOU will come into effect on the date of the last signature.

For the Government of the Kingdom of the Netherlands

The Minister of Defense

(sd.) W. SCHOLTEN

Date 24 Aug. 1978

For the Government of the United States of America

The Secretary of Defense

(sd.) HAROLD BROWN

Date Jul. 25 1978

Annex I. to Memorandum of Understanding between the Government of the Kingdom of the Netherlands and the Government of the United States of America Concerning the Principles Governing Mutual Cooperation in the Research and Development, Production and Procurement of Defense Equipment, dated 24 August 1978

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PRINCIPLES GOVERNING IMPLEMENTATION
  • 1. Introduction

    On 24 August 1978, the Governments of the United States and the Kingdom of the Netherlands signed a Memorandum of Understanding (MoU) relating to the principles governing mutual cooperation in research and development, production and procurement of defense equipment. This document sets forth the agreed implementing procedures for carrying out the MoU.

  • 2. Major Principles

    • A. The U.S. Department of Defense (DoD) and the Ministry of Defense of the Netherlands (MoD) will consider for their defense requirements qualified defense items and services developed or produced in the other country.

    • B. It will be the responsibility of government and/or industry representatives in each country to acquire information concerning the other country’s proposed research, developments, and purchases and to respond to requests for proposals in accordance with the prescribed procurement procedures and regulations. However, the responsible government agencies in each country will assist sources in the other country to obtain information concerning intended research and development, proposed purchases, necessary qualifications and appropriate documentation.

  • 3. Action

    DoD and MoD will review and, where considered necessary, revise policies, procedures and regulations to ensure that the principles and objectives of this MoU, which are intended to be compatible with the broad aims of NATO Rationalization/Standardization, are taken into account. DoD and MoD agree that the following measures shall be taken, recognizing that among other factors, delivery date requirements for supplies, the interest of security and the timely conduct of the procurement process, are considerations related to insure free and full competition for the award of contracts:

    • A. Ensure that their respective requirements offices are familiar with the principles and objectives of this MoU.

    • B. Ensure that their respective research and development offices and institutes are familiar with the principles and objectives of this MoU.

    • C. Ensure that their respective procurement offices are familiar with the principles and objectives of this MoU.

    • D. Ensure wide dissemination of the basic understanding of this MoU to their respective industries producing and/or developing defense items and/or services.

    • E. Ensure that, consistent with national laws and regulations, offers of defense items produced in the other country will be evaluated without applying to such offers, either price differentials under buy-national laws and regulations, or the cost of import duties. Full consideration will be given to all qualified industrial and/or governmental sources in each other’s country. Provisions will be made for duty-free entry certificates and related documentation to the extent that existing laws and regulations permit.

    • F. Assist industries in their respective countries to identify and advise the other government of their production capabilities and assist such industries in carrying out the supporting actions to maximize industrial participation.

    • G. Review defense items and requests for services submitted by the other country as candidates for respective requirements. Identify requirements and proposed purchases to the other country in a timely fashion to ensure that the industries of such country are afforded adequate time to be able to participate in the research and development production and procurement processes.

    • H. Use best efforts to assist in negotiating licences, royalties, and technical information exchanges among their respective industries, and research and development institutes.

    • I. Ensure that those items and services excluded from consideration under this MoU for reasons of protecting national requirements, such as the maintenance of a defense mobilization base, (Appendix 3, Annex I), are limited to a small percentage of total annual defense procurement spending. It is intended that such defense items and services, as well as those items and services that must be excluded from consideration under this MoU because of legally imposed restrictions on procurement from non-national sources, be identified as soon as possible by the MoD and the DoD, and that such defense items and services be kept under review at this level.

    • J. Insure that the balance of reciprocal purchases takes into consideration the levels of technology involved, as well as the monetary value of purchases hereunder.

    • K. DoD and MoD will from time to time arrange visits in order to actively explore possibilities for cooperation on research and development, procurement, and logistical support.

  • 4. Counting Procedures

    The following purchases, to be identified jointly by DoD and MoD will be included in the counting procedures:

    • A. Purchases of items and services funded from appropriate funds of the U.S. Department of Defense or budgeted funds of the Netherlands Ministry of Defense and which, either/are:

      • (1) directly purchased by the MoD or DoD from one another; or

      • (2) directly purchased by the MoD or DoD from the industry of the other country; or

      • (3) purchased by the industry of one country from the Government or industry of the other country; or

      • (4) purchased as a result of jointly funded defense projects to which the United States and the Netherlands are the only contributors, to be credited in proportion to each other country’s financial contribution to the project, and to work carried out in each country. The extent to which such purchases will be counted against the goals of the MoU will be agreed upon between MoD en DoD in each case;

      • (5) licence fees, royalties and other associated income, when separately contracted, by industry and/or DoD or MoD with a licensor in the other country.

    • B. Purchases by the MoD or DoD from the industry of the other country, on behalf of other governmental departments and agencies.

    • C. Purchases by a third country government from the MoD or DoD or from industries of these two countries as direct result of the efforts of the government of the other country.

  • 5. Administration

    • A. Each government will designate points of contact (procurement and logistics) at the Ministry of Defense level and in each purchasing service/agency and major acquisition activity.

    • B. Quality Assurance procedures outlined in STANAG 4107 and 4108 (subject to the USG reserve concerning reimbursement) will apply, unless other provisions are mutually agreed to on any specific contract. Reimbursement of services provided shall be afforded in accordance with the national laws and regulations of each country.

    • C. The terms of reference of the Netherlands/United States Committee of Procurement Cooperation are contained in Annex III.

For the Government of the United States of America

(sd.) W. J. PERRY

Date: 21 December 1978

For the Government of the Netherlands

(sd.) J. HENSEN

Date: 21 December 1978

Annex II. to Memorandum of Understanding between the Government of the Netherlands and the Government of the United States of America concerning the Principles Governing Mutual Cooperation in the Research and Development, Production, and Procurement of Defense Equipment, signed on the 24th of August 1978

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PRINCIPLES GOVERNING LOGISTIC SUPPORT OF COMMON EQUIPMENT

In implementing article I, para 13, of the MoU, the two Parties shall be governed by the following:

  • 1. When developing or procuring defense equipment, both Parties will agree upon the basis for joint follow-on logistic support in areas such as configuration control, interchangeability of spare parts/components, maintenance, conversion, storage, and spare parts provisioning, etc.

  • 2. Arrangements and procedures will be established concerning follow-on logistic support and other forms of logistic cooperation, e.g., joint utilization of facilities.

  • 3. In the contracting procedure for logistic support, paragraph 9 of Article I of the MoU shall apply.

  • 4. Both Parties will issue directives and guidelines to their respective armament and logistics agencies to achieve the described goals of this MoU.

For the Government of the United States of America

(sd.) W. J. PERRY

Date: 21 December 1978

For the Government of the Netherlands

(sd.) J. HENSEN

Date: 21 December 1978

Annex III. to Memorandum of Understanding between the Government of the Kingdom of the Netherlands and the Government of the United States of America Concerning the Principles Governing Mutual Cooperation In the Research and Development, Production and Procurement of Defense Equipment, dated 24 August 1978

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TERMS OF REFERENCES
    • 1. The Netherlands/U.S. Committee for Procurement Cooperation (hereafter to be called “the Committee”) will serve, under the direct responsibility of the authorities, listed in Article II sub 2 and 3 of the MoU respectively, as the main body in charge of the adequate implementation of the MoU.

    • 2. In particular, the Committee will be responsible for ensuring that the guiding principles of the MoU governing the mutual cooperation in research and development, production, procurement and logistic support of conventional defense equipment are being implemented to facilitate a mutual flow of defense equipment. To this end the Committee will meet as required, but not less than annually, to review progress in implementing the MoU. In this review:

      • A. They will discuss research, development, production, procurement and logistic support needs of such country and the likely areas of cooperation including joint activities in those fields.

      • B. They will exchange information as to the way the stipulations of the MoU have been carried out and, if need be, prepare proposals for amendments of the MoU and/or its annexes.

      • C. They will agree to the financial statement of the current balance, give guidance for its yearly preparation and formulate conclusions from it, such conclusions to include any long term trends which may be established.

      • D. They will consider any other matters relevant to the MoU.

      • E. They will report after each meeting and advise as appropriate.

      • F. The Committee will alternately meet in the United States and in the Netherlands. The country in which a particular meeting will take place will provide the Chairman and the secretariat for that meeting.

For the Government of the United States of America

(sd.) W. J. PERRY

Date: 21 December 1978

For the Government of the Netherlands

(sd.) J. HENSEN

Date: 21 December 1978

Annex IV. to Memorandum of Understanding between the Government of the Kingdom of the Netherlands and the Government of the United States of America concerning the Principles Governing Mutual Cooperation in the Research and Development, Production and Procurement of Defense Equipment, signed at The Hague on 24 August 1978

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PRINCIPLES GOVERNING CONTRACT ADMINISTRATION SERVICES

I. Introduction

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This annex sets forth the terms, conditions, and procedures under which the governments will provide each other with selected contract administration services and related information in support of defense contracts and subcontracts contemplated or executed under the Memorandum of Understanding (MOU). It is recognized that in the event conflicts arise between any aspect of this annex and the laws of either government, the laws shall prevail.

II. Major principles

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The objective of this annex is to insure each government is able to employ the most effective and efficient contract administration support possible when acting under the MOU. Nothing is to be construed as impairing a purchasing government’s access to its contractors and their records as may be contractually authorized.

For the purpose of this annex, contract administration shall include all those necessary actions, other than contract pricing and audit, to be accomplished at, or in proximity to, a firm’s place of business to assist the purchasing office in evaluating a prospective contractor’s capabilities and in monitoring and enforcing awarded contracts. This annex supplements NATO Standardization Agreement (STANAG) 4107 1, hereby incorporated by reference in regard to reciprocal quality assurance.

III. General

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The purchasing government may request specific services and information selected from those listed in appendix 1 to this annex which it considers appropriate to the circumstances. The purchasing government may elect to obtain additional support through its own on-site representatives provided there is no duplication of work performed by the host government. In addition, the host government will use its best efforts to supply information requested by the purchasing government but not listed in this annex when necessary to support contract award, enforcement, or termination. The purchasing government may modify a request for support during contract performance after consultation with the host government.

The host government shall accept requests for services to the extent resources are available and carry them out according to the procedures that government uses for its own contracts.

Contracts shall contain suitable provisions for the host government to act for and on behalf of the purchasing government and shall authorize access to contractor facilities and records and use of contractor assets as necessary for the performance of contract administration services.

Where representatives of either government deal with a contractor at the same location in support of the same contract or separate contracts, they shall act in full concert according to terms of reference mutually agreed or to be agreed upon.

Each government shall designate a single office to receive requests for contract administration services. In addition, each government may elect to designate an office in or near the other's country to act as a focal point through which requests for support will be forwarded. The host government will endeavor to keep the purchasing government’s focal point apprised of current contract administration practices and resources to help insure requests for services are reasonable and prudent. The focal point shall advise the host government concerning contract requirements and clarify requests for services as necessary.

IV. Procedures

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Requests for contract administration in the Netherlands shall be directed to the Ministry of Defence, Directorate-General Material, Procurement Policy Office, Kalvermarkt 32, P.O. Box 20701, 2500 ES THE HAGUE The Netherlands. Requests for contract administration in the United States shall be directed to The Department of Defense Central Control Point, DCASR New York, 60 Hudson St., New York, NY 10013.

Contract administration requests will be accompanied by the number of copies of the request for proposal or awarded contract, as appropriate, prescribed in STANAG 4107 and will specify the contract administration services desired. Every effort will be made to forward support requests simultaneously with the forwarding of awarded contracts to the contractor. The format shall be as described in Annex A to STANAG 4107, with desired services other than quality assurance specified in Block 10. If less than comprehensive quality assurance is needed, the desired services selected from AQAP 10 shall be specified in Block 10. Requests shall reference this annex to the MOU and shall be processed according to the procedures in STANAG 4107 with due regard to section VII of this annex. In principle, acceptance or rejection shall be made within 30 calendar days of receipt by the host government.

Direct communications between the purchasing office and the assigned contract administration office in resolving contract problems are authorized and encouraged. The purchasing government shall retain final authority over contract interpretations and enforcement actions, and shall advise the contract administration office on such matters as needed.

In the event the purchasing government envisions the assignment of inplant representatives, proposed terms of reference describing an appropriate working relationship with host government representatives will be suggested to the host government as early as possible.

V. Responsibility and liability

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Nothing in this annex shall relieve the contractor of any responsibilities under the contract. No liability will attach to the government, its officers or agents, acting under this annex on behalf of the other government.

VI. Protection of information

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Data obtained through the implementation of this annex shall receive the same protection against unauthorized disclosure as such data would normally receive under the laws and rules of the country which possesses it.

VII. Charges

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Service provided under this annex will be free of charge, subject to a joint review of the services being exchanged at not less than three year intervals. If, as a result of such a joint review, either government determines that charges will be necessary, they may be imposed after not less than one year advance notice. Should charges by the U.S. Government become necessary, Foreign Military Sales Procedures then in effect will apply.

VIII. Duration

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This annex will remain in effect for a period as set forth in Article VII of the MOU, and may be terminated under the conditions as set forth in that article.

IX. Implementation

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This Annex will come into effect on the date of the last signature.

For the Government of the Kingdom of the Netherlands,

(sd.) J. HENSEN

Date: 9 April 1982

For the Government of the United States of America,

(sd.) RICHARD G. STILWELL

Date: 9 April 1982

Appendix 1. Services to be Exchanged

Appendix 1. to Annex IV

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SERVICES TO BE EXCHANGED

In accordance with the principles and procedures as set forth in this annex the following services will be performed by the host government within its national boundaries upon requests by and on behalf of the purchasing government:

  • 1. Support evaluations of contractor capabilities prior the award.

    • a. Supply available information concerning design, production, and quality control capabilities as appropriate; for example, the amount of available floor space, plant equipment, skilled and unskilled workers, past production of similar items, and the NATO Allied Quality Assurance Publications (AQAP’s) against which the firm has been assessed.

    • b. Evaluate the financial strength of the prospective contractor, estimate the likelihood that financial resources will be sufficient to accomplish the contract, and report the monetary value (in local currency) of host government capital assets furnished or made available to the contractor which may be used in the contract.

    • c. Provide access to available accounting system disclosure statements and assistance in determining the system’s ability to meet contractual requirements.

  • 2. Perform government quality assurance, as defined in STANAG 4107, in whole or in part as requested.

  • 3. Report potential or actual slippages in contract delivery schedules or any other contractor difficulties which might affect contract performance.

  • 4. Assess contract progress if needed by the purchasing office to authorize financial payments, and recommend approval or disapproval of contractor payment requests.

  • 5. Evaluate the feasibility and practicality of contractor production plans.

  • 6. Verify contractor management reports furnished to the purchasing office during contract performance.

  • 7. Evaluate and monitor contractor compliance with contract requirements governing technical data, especially the propriety of any restrictive markings on data offered for delivery under the contract.

  • 8. Monitor contractor costs under cost reimbursement contracts, and insure the purchasing office is advised of any anticipated overruns or underruns of estimated costs.

  • 9. Advise the purchasing office if supporting contract administration is needed at subcontractor plants to verify the adequacy of prime contractor management, and assist the purchasing government obtain desired support within the host country.

Annex V. to Memorandum of Understanding between the Government of the Kingdom of the Netherlands and the Government of the United States of America concerning the Principles Governing Mutual Cooperation in the Research and Development, Production and Procurement of Defense Equipment, signed at The Hague on 24 August 1978.

Security Implementing Arrangement for Operations between the Minister of Defence of the Kingdom of the Netherlands and the Department of Defense of the United States

1. Purpose

  • a) The following procedures have been developed by the Department of Defense of the United States (DoD) and the Minister of Defence of the Kingdom of the Netherlands (MODNL), hereinafter referred to as “the Participants”; to implement the provisions of the General Security Agreement (GSA) between the Government of the United States and the Government of the Kingdom of the Netherlands, entered into on August 18, 1960, as amended, and replaces the Security Procedures for Industrial Operations between the Ministry of Defence of the Kingdom of the Netherlands and the Department of Defense of the United States, dated April 9, 1982. That Agreement provides for the safeguarding of all classified information exchanged between the Governments. This Implementing Arrangement (hereinafter referred to as “Arrangement”) will apply to those cases in which contracts, subcontracts, pre-contract negotiations or other government approved Arrangements involving classified information of the Participants, are placed or entered into by or on behalf of the MODNL in the United States (U.S.) or by or on behalf of the DoD in the Kingdom of the Netherlands (NL).

  • b) Within the framework of their national legislation, each Participant will take all appropriate measures to ensure the protection of classified information or materiel provided pursuant to this Arrangement.

  • c) "The U.S. DoD hereby designates the Director, International Security Programs Directorate, Office of the Deputy Under Secretary of Defense (Technology Security Policy and Counterproliferation) as its Designated Security Authority (DSA) to provide policy oversight concerning the provisions of this Arrangement. For the NL MOD the DSA is the Director of the Defence Intelligence and Security Service (DDISS).

2. Definitions

The definitions of the GSA are outdated; The following definitions will therefore be used for the purpose of this Arrangement:

Classified Contract: A contract that requires, or will require, access to classified information by a contractor or by its employees in the performance of a contract.

Classified Information: Official information which has been determined to require, in the interests of national security of the owning or releasing government, protection against unauthorized disclosure and which has been so designated by the appropriate classification authority. This embraces classified information in any form, be it oral, visual, electronic, documentary or in the form of materiel.

Cognizant Security Office (CSO): The Government office or offices designated to administer industrial security in a Contractor's facility on behalf of the DSA.

Contract: A legally enforceable Arrangement to provide goods or services.

Contractor: An individual or a commercial or other entity that agrees to provide goods or services.

Designated Government Representative (DGR): A person appointed to represent the sending or receiving Participant in making or authorizing a government-to-government transfer of classified information.

Designated Security Authority (DSA): The government authority responsible for the security of classified information covered by this Arrangement.

Document: Any letter, note, minute, report, memorandum, message, sketch, photograph, film, map, chart, plan, notebook, stencil, carbon, typewriter ribbon, diskette, magnetic tape, or any other form of recorded information.

Facility Security Clearance Assurance (FSCA): A certification provided by a Participant's DSA or CSO for a contractor facility under its territorial jurisdiction which indicates that the facility is security cleared to a specified level and also has suitable security safeguards in place at a specified level to safeguard classified information. The FSCA also signifies that classified information CONFIDENTIAL or above will be protected by the contractor on which the FSCA is provided in accordance with the provisions of this Arrangement and that compliance will be monitored and enforced by the responsible DSA or CSO. NOTE: A FSCA is not required for a contractor to carry out contracts that require the receipt or production of classified information at the DEPARTEMENTAAL-VERTROUWELIJK (Departmental Confidential) level.

Government-to-government transfer: The principle that classified information and materiel CONFIDENTIAL and above will be transferred through official government-to-government channels or through other channels as may be jointly decided, in writing, by the Participants.

Materiel: Any document product or substance on or in which information may be recorded or embodied. Materiel will encompass everything regardless of its physical character or makeup including documents, writing, hardware, equipment, machinery, apparatus, devices, models, photographs, recordings, reproductions, notes, sketches, plans, prototypes, designs, configurations, maps and letters, as well as all other products, substances or materiel from which information can be derived.

Need to know: A determination made by an authorized holder of classified information that a prospective recipient requires access to specific classified information in order to perform or assist in a lawful and authorized governmental function.

Participant: In the NL Participant refers to the Ministry of Defence (including the Chief of Defence Staff, the Navy, Army, Air Force and Military Police Departments, the Defence lnterservice Command and other Defence Agencies). In the U.S. Participant refers to the Department of Defense, Department of Defense agencies and the Departments of the Army, Navy, and Air Force.

Personnel Security Clearance Assurance (PSCA):

  • a) In the case of an individual who is employed by a government agency or contractor facility under the jurisdiction of a DSA or CSO, a certification provided by that DSA or CSO concerning the level of personnel security clearance held by the individual.

  • b) In the case of an individual who is a citizen of the country of one Participant but is to be employed by the other Participant or its contractors, a statement provided by the DSA or CSO of the individual's country of citizenship concerning the individual's eligibility for a personnel security clearance at a level specified by the requesting Participant.

Receiving Participant: The Participant to which classified information is transferred.

Sending Participant: The Participant that transfers classified information to the receiving Participant.

3. Restrictions on use and disclosure of exchanged classified information

  • a) Unless express prior written consent is given to the contrary, the receiving Participant will not disclose or use, or permit the disclosure or use of, any classified information except for the purposes and within any limitations stated by the sending Participant.

  • b) The receiving Participant will not pass or disclose to a government official, contractor; contractor's employee or to any other person holding the citizenship of any third country, or to any international organization, any classified information CONFIDENTIAL or above, supplied under the provisions of the General Security Agreement and/or this Arrangement, nor publicly disclose any classified information without the prior written consent of the sending Participant.

  • c) Nothing in this Arrangement will be taken as an authority for, or to govern the release, use, exchange or disclosure of information in which intellectual property rights exist, until the specific written authorization of the owner of these rights has first been obtained. The sending Participant will advise the requesting Participant of any intellectual property rights attached to any classified information provided to or exchanged with the receiving participant.

4. Protection of classified information

Upon receipt of classified information furnished under this Arrangement, the receiving Participant will carry out to afford the information a degree of security protection at least equivalent to that afforded to the information by the sending Participant. The receiving Participant will be responsible for information so received while it is within the territorial jurisdiction of its government and while it is possessed by or furnished to persons authorized to visit abroad pursuant to this Arrangement. In the NL, the DDISS of the MOD is the CSO and the DSA. In the U.S., the Defense Security Service (DSS) is the CSO. These organizations will assume responsibility for ensuring the administration of security measures for contracts involving classified information CONFIDENTIAL or above awarded to industry for performance in their respective countries. NL DEPARTEMENTAAL-VERTROUWELIJK will be protected in the U.S. in accordance with the provisions of Appendix A.

  • a) Access. Access to classified information CONFIDENTIAL or above will be limited to those persons who have a need to know and have been security cleared by either of the Participants in accordance with its national laws and regulations to the level at least equal to the classification of the information to be accessed.

  • b) Inspection/security review. The CSOs, as identified above, will ensure that periodic industrial security inspections/security reviews are made of each contractor facility that is located and incorporated to do business within their country and engaged in the performance of, or in negotiations for, a classified contract.

  • c) Security costs. Costs incurred in conducting security inspections/security reviews will be borne by the Participant rendering the service. Costs incurred by either of the two Participants through implementation of other security measures, including costs incurred through the use of the diplomatic courier service or any other authorized official courier service, will not be reimbursed. There will be provisions in classified contracts for security costs to be incurred under the contract, such as special costs for packing, transport and the like, which will be borne by the Participant for whom the service is required under the contract. If, subsequent to the date of the contract, the security classification or security requirements under the contract are changed, and the security costs or time required for delivery under the contract are thereby increased or decreased, the contract price, delivery schedule, or both, and any other provisions of the contract that may be affected will be subject to an equitable adjustment by reason of such increased or decreased costs. Such equitable adjustments will be accomplished under the appropriate provisions in the contract governing changes.

  • d) Security clearances. Clearances of contractor facilities and individuals that will possess or be authorized access to classified information CONFIDENTIAL or above in connection with a classified contract or potential classified contract will be processed according to the pertinent regulations of the country having responsibility for administering security measures for the classified contract.

  • e) Orientation. The CSOs will ensure that contractors or subcontractors having access to classified information are furnished instructions setting forth their responsibility to protect the information in accordance with applicable national laws and regulations commensurate with the provisions of this Arrangement.

5. Transfers of classified information

  • a) Classified information CONFIDENTIAL and above will normally be transferred between the Participants through DGRs using government-to-government channels. Government-to-government channels are official government channels (e.g. diplomatic courier service, military courier or military postal service). Other channels that may be established, if jointly decided in writing by the Participants, will ensure that government accountability and control is maintained from the point of origin to the ultimate destination. The CSO for each classified contract will approve the procedures, or inform the contractor of the channels of transmission to be used, and identify the DGR. Materiel will be prepared for transmission in accordance with the national security laws and regulations of the sending Participant.

  • b) Classified information CONFIDENTIAL and above that is to be transferred electronically will be transmitted using secure means that have been approved by each Participant's communications security authorities.

  • c) Classified information at the NL DEPARTEMENTAAL-VERTROUWELIJK level will be transmitted in the U.S. in accordance with the provisions of Appendix A.

  • d) Classified information at the NL DEPARTEMENTAAL-VERTROUWELIJK level may be transmitted or accessed electronically via a public network like the Internet, using government or commercial encryption devices jointly accepted by the Participants’ security authorities. International telephone conversations, video conferencing or facsimile transmissions containing NL DEPARTEMENTAAL-VERTROUWELIJK information may be in clear text if an approved encryption system is not available.

6. Public release of information

Public release by a contractor or subcontractor of any classified information CONFIDENTIAL or above pertaining to a classified contract will in the NL be governed by the Algemene Beveiligingseisen voor Defensieopdrachten (ABDO 2002 and its subsequent amendments) and in the U.S. by the National Industrial Security Program Operating Manual (NISPOM), DoD 5220.22-M. In the case of a NL facility with a U.S. classified contract, initial prior review and approval will be governed by the ABDO 2002 with final approval by the appropriate U.S. authority. In the case of an U.S. facility with a NL classified contract, initial prior review and approval will be governed by the NISPOM with final approval by DDISS.

7. Marking

  • a) The sending Participant will ensure that documents containing classified information are marked with the appropriate classification markings and pre-fixed with the country of origin/ownership prior to transfer to the receiving Participant. Upon receipt, the information will, if required, be marked with the equivalent security classification, as detailed below. If such information subsequently is included in other documents, those documents will be marked to identify the sending Participant and the applicable classification.

    Table of Equivalent Security Classification Categories

    The Netherlands

    United States

    STG. ZEER GEHEIM

    TOP SECRET

    STG. GEHEIM

    SECRET

    STG. CONFIDENTIEEL

    CONFIDENTIAL

    DEPARTEMENTAAL-VERTROUWELIJK

    No equivalent (See Appendix A)

  • b) Classified information produced or reproduced by a receiving Participant will be marked with the assigned classification markings of both countries as provided above. The markings will be applied in the manner prescribed in the regulations of the country in which the information is produced or reproduced.

8. Contracts

When a Participant proposes to place, or authorizes a contractor in its country to place, a contract involving classified information CONFIDENTIAL or above with a contractor in the country of the other Participant, the Participant that is to place or authorize the contractor to place such contract will request a FSCA as defined in paragraph 2, where appropriate, from the CSO of the other country. The FSCA will provide governmental assurance that the security conduct by the cleared contractor will be in accordance with the applicable national security laws or regulations and be monitored by its CSO.

  • a) Security Requirements paragraph

    • 1. The responsible authority of the Participant in the process of negotiating a classified contract to be performed within the other country, and every contractor in receipt of a classified contract or in the process of negotiating a classified subcontract to be performed within the other country, will incorporate in the contract, request for proposal or subcontract document, appropriate security paragraphs. For such activity involving classified information CONFIDENTIAL or above the security provisions attached at Appendix B will be used.

    • 2. A copy of the relevant portions of the contract, request for proposal or subcontract, including the security requirements paragraph, will be furnished promptly through appropriate channels to the CSO where the contract is placed to enable them to furnish security supervision over the contract.

    • 3. Contracts placed with U.S. contractors involving classified information at the NL DEPARTEMENTAAL-VERTROUWELIJK level will identify the measures to be applied for the protection of the NL DEPARTEMENTAAL-VERTROUWELIJK information.

  • c) Security classification guidance.

    The appropriate authority (see 8.a. (1) above) of the contracting government will furnish the contractor or subcontractor with the security classification guidance pertaining to each classified aspect related to the contract. In the case of the NL, this guidance will be set forth in a Security Classification Guide and in the U.S., by way of a Contract Security Classification Specification (DD Form 254). The guidance must identify that classified information which is furnished by the contracting Participant in connection with the contract, or which is generated pursuant to the classified contract, is assigned a proper security classification. Two copies of the written security classification guidance and of the security portions of the classified contract, or request for proposal, or subcontract containing the security requirements paragraph will be submitted to the CSO of the Participant which is responsible for administering security measures.

    The addresses of the CSOs are:

    The Netherlands

    Director of Defence Intelligence and Security Service (DDISS)

    Attention: Head Industrial Security Office

    Ministry of Defence

    P.O. Box 20701

    2500 ES The Hague

    NETHERLANDS

    United States

    Defense Security Service

    Attention: Deputy Director for Industrial Security

    Department of Defense

    1340 Braddock Place

    Alexandria, Virginia 22314-1651

    UNITED STATES OF AMERICA

  • c) Subcontracts.

    Unless specifically prohibited in the classified contract, a contractor may subcontract within its own country in accordance with the security procedures prescribed in its country for classified subcontracts, and within’ the country of the contracting Participant under the procedures established by this Arrangement for placing a classified prime contract in that country, in accordance with the paragraphs set out in Appendix B to this Arrangement.

  • d) Foreign ownership, control, or influence.

    Firms that are determined by national security authorities to be under financial, administrative, policy or management control of nationals or other entities of a third Participant country may participate in a contract or subcontract requiring access to classified information provided by the other Participant only when enforceable measures are in effect to ensure that nationals or other entities of third participant countries will not have access to classified information that is provided to or that is generated therefrom. If enforceable measures are not in effect to preclude access by nationals or other entities of third participant countries, the permission of the originating Participant will be obtained prior to permitting such access.

  • e) Corporate Governance.

    The MODNL approves to oversee implementation of board resolutions entered into by NL entities in connection with DoD Special Security Arrangements (SSAs). The MOD also approves to assist the DoD in addressing alleged violations of the provisions of a DoD SSA by a NL company. These approvals are predicated on the understanding that the DoD will oversee compliance with board resolutions/arrangements entered into by U.S. entities in connection with requirements with the MOD governing foreign ownership, control or influence of NL entities holding NL security clearances, and that DoD will assist the MOD in addressing violations of these provisions by U.S. entities.

9. Visits

Requests for approval of visits will be submitted using the procedures in Appendix C. Approval for visits will be granted only to persons possessing security clearances at least at the level of the information to which access will be given. Authorization for visitors to have access to classified information will be limited to those who have a need to know. Visits to contractor facilities that only involve access to, or the exchange of information at the unclassified or DEPARTEMENTAAL-VERTROUWELIJK levels do not require the approval of the Participants and may be arranged directly between the sending and receiving facilities.

10. Security assurances related to national security clearances of facilities or individuals of the other country

  • a) Each Participant will provide a FSCA or PSCA for facilities or individuals in its country when requested by the other Participant.

  • b) When requested, the Participant receiving the request will determine the security clearance status of the facility or individual that is the subject of the inquiry and forward a FSCA or PSCA if the facility or individual is already cleared. If the facility or individual does not have a security clearance, or the facility or individual has a clearance that is at a lower security level than that requested, notification will be sent to the requesting Participant that the FSCA or PSCA cannot be issued without further consultation. In such cases, further steps may be initiated to conduct inquiries that are necessary to meet the requirement.

  • c) If the Participant receiving the request determines that a facility located and incorporated to do business in its country is ineligible for a security clearance, the requesting Participant will be notified.

  • d) If either Participant learns of any adverse information about a facility or an individual for whom it has furnished a FSCA or PSCA, it will notify the other Participant of the nature of the information and the action it intends to take, or has taken. Either Participant may request a review of any FSCA or PSCA that has been furnished by the other Participant, provided that the request is accompanied by a rationale. The requesting Participant will be notified of the results of the review and any subsequent action.

  • e) If either Participant invalidates, suspends or takes action to revoke a personnel or facility security clearance, the Participant that requested the PSCA or FSCA will be notified and given the reasons for such an action.

  • f) If requested by the other Participant, each Participant will cooperate in reviews and investigations concerning security clearances.

11. Loss or compromise

  • a) In the event of the loss or possible loss of classified information CONFIDENTIAL or above, or suspicion that such classified information has been compromised, the receiving Participant will immediately inform the sending Participant.

  • b) The receiving Participant will carry out an Immediate investigation with assistance from the sending Participant, if required, in accordance with the laws and regulations in the country of the receiving Participant. The receiving Participant will inform the sending Participant about the circumstances and outcome of the investigation as soon as possible and the measures adopted to preclude recurrence of the incident.

12. Disputes

This Arrangement does not create any rights or obligations under international law, nor will it be enforceable by either party under international law. Furthermore, the Participants jointly decide that they will not attempt to enforce the terms of this Arrangement in any domestic, third party, or international court or tribunal. Any disputes or disagreements with regard to interpretation of this Arrangement will be resolved jointly through mutual discussion, cooperation and decision or by separate agreement by both Participants.

13. Effective date

This Arrangement to the 1960 General Security Agreement supersedes the Security Procedures for Industrial Operations between the Ministry of Defence of the Kingdom of the Netherlands and the Department of Defense of the United States (Industrial Security Annex) dated 9 April 1982, as amended on 23 April 1988, and becomes effective upon the date of the last signature.

14. Amendment

The provisions of the Arrangement may be amended with the mutual consent in writing of both Participants.

15. Termination/review

  • a) This Arrangement will remain in effect until termination of the 1960 General Security Agreement or until this Arrangement is terminated by either Participant, giving the other Participant six months written notification of its intent to terminate the Arrangement. This Arrangement may also be terminated at any time upon written consent of both Participants. Both Participants will remain responsible after termination for the safeguarding of all classified information exchanged under the provisions of the 1960 General Security Agreement and this Arrangement and any contracts entered into, or generated therefrom, in accordance with national laws and regulations.

  • b) This Arrangement will be reviewed jointly by the Participants no later than ten years after its effective date.

  • c) Any classified information that is exchanged under the cover of this Arrangement will be safeguarded, even though its transfer may occur following notice by either of the Participants to terminate.

  • d) In the event of termination, solutions to any outstanding problems will be sought by consultation between the two Participants.

Appendix A

Procedures for handling departementaal-vertrouwelijk information within the United States

  • 1. NL-documents or materiel bearing the classification “DEPARTEMENTAAL-VERTROUWELIJK” will be handled in the U.S. as U.S. UNCLASSIFIED information that is exempt from public release under one or more U.S. laws. These laws include the Freedom of Information Act (FOIA) and Title 10 U.S.C. Section 130(c), “Nondisclosure of Information: Certain Sensitive Information of Foreign Governments and International Organizations.” Documents or materiel so marked will be stored in locked containers affording the appropriate protection or closed spaces or areas that shall prevent access by unauthorized personnel.

  • 2. DEPARTEMENTAAL-VERTROUWELIJK documents shall be handled in a manner that will preclude open publication, access or use for other than official government purposes of the United States. It shall be exempt from public release under the applicable U.S. Freedom of Information laws unless the NL Government has granted prior written approval.

  • 3. Before any communications and information system is allowed to store, process or forward DEPARTEMENTAAL-VERTROUWELIJK information, it must be given security approval, known as accreditation. An accreditation is defined as a formal statement by appropriate authority confirming that the use of a system meets the appropriate security requirement and does not present an unacceptable risk: For stand alone desktop PCs and laptop systems utilized in DoD establishments the system registration document together with the security operating procedures fulfils the role of the required accreditation. For contractors, guidance on the use of information technology systems will be incorporated within the restricted conditions requirements paragraph in the contract.

  • 4. DEPARTEMENTAAL-VERTROUWELIJK documents shall be transmitted by first class mail within the United States in one secure cover. Transmission outside the United States will be in two secure covers; the inner cover marked “DEPARTEMENTAAL-VERTROUWELIJK”. Such transmissions will be by traceable means such as one of the means authorized for United States classified information, international airmail or commercial courier.

  • 5. Otherwise unclassified U.S. documents originated by a U.S. Government agency which contain information that the NL has classified DEPARTEMENTAAL-VERTROUWELIJK shall bear on the cover and the first page the marking: “DEPARTEMENTAAL-VERTROUWELIJK” – exempt from Public Disclosure under Title 10 U.S.C., Section 130(c).” The DEPARTEMENTAAL-VERTROUWELIJK information shall be identified in the documents.

  • 6. DEPARTEMENTAAL-VERTROUWELIJK information may be transmitted-or accessed electronically via a public network like the Internet using government or commercial encryption devices mutually accepted by the Participants’ government security authorities. International telephone conversations, video conferencing or facsimile transmissions containing NL DEPARTEMENTAAL-VERTROUWELIJK information may be in clear text, if an approved encryption system is not available. Telephone conversations, video conferencing or facsimile transmissions within the United States may be in clear text.

Appendix B

Security requirements paragraph for inclusion in classified contracts involving classified information confidential or above

The provisions of this paragraph are based upon the Security Implementing Arrangement for Operations between the Ministry of Defence of the Netherlands and the Department of Defense of the United States, and shall apply to the extent that this contract involves access to or the possession of information or materiel to which a security classification has been assigned by the Government that originated the information (hereafter called originating government).

  • 1. All classified information and materiel furnished or generated pursuant to this contract shall be protected as follows:

    • a) The recipient shall not release the information or materiel to a third country government, person, or firm without the prior approval of the originating government.

    • b) The recipient shall afford the information and materiel a degree of protection at least equivalent to that afforded it by the originating government as indicated in the table of Equivalent Security Classification Categories below. Information received shall be marked with the originator's level of classification and denote the country of origin.

    • c. The recipient shall not use the information and materiel for other than the purpose for which it was furnished without the prior written consent of the originating Participant.

      Table of Equivalent Security Classification Categories

      The Netherlands

      United States

      STG. ZEER GEHEIM

      TOP SECRET

      STG. GEHEIM

      SECRET

      STG. CONFIDENTIEEL

      CONFIDENTIAL

      DEPARTEMENTAAL-VERTROUWELIJK

      No equivalent (See Appendix A)

  • 2. Classified information and materiel furnished or generated pursuant to this contract shall be transferred through government-to-government channels or other channels jointly decided, in writing, by the governments of the United States and the Netherlands. Access to classified information and materiel CONFIDENTIAL or above shall be granted only to persons who have a security clearance at least equal to the classification level of the information and an official need for access to the information in order to perform on the contract.

  • 3. Classified information and materiel furnished under this contract shall be remarked by the recipient with its government's equivalent security classification marking.

  • 4. Classified information and materiel generated under this contract shall be assigned a security classification as specified by the Contract Security Classification Specifications/Security Aspects Letter (SAL) provided with this contract.

  • 5. All cases in which it is known or there is reason to believe that classified information or materiel furnished or generated pursuant to this contract has been subject to a security breach, compromised, lost, or disclosed to unauthorized persons shall be reported promptly and fully by the contractor to its government's security authorities.

  • 6. Classified information and materiel furnished or generated pursuant to this contract shall not be further provided to another potential contractor or subcontractor unless:

    • a) A potential contractor or subcontractor which is located in the U.S or NL has been approved for access to classified information and materiel at the requisite level by U.S. or the NL security authorities as appropriate;

    • b) If located in a third country, prior written consent is obtained from the U.S. or NL government; whichever is the originating government.

  • 7. The recipient contractor shall insert terms that substantially conform to the language of these provisions, including this paragraph, in all subcontracts under this contract that involve access to classified information furnished or generated under this contract.

  • 8. Upon completion of the contract, all classified information or materiel furnished or generated pursuant to the contract shall either be destroyed by the contractor in accordance with national rules and regulations or, if requested, returned to the government that furnished the information.

Appendix C

Visits

  • 1. This appendix describes procedures to be used in the visit request process. Visits to the Netherlands and the United States that involve access to, or the exchange of, classified information CONFIDENTIAL or above require the prior approval of both Participants using the procedures in this appendix.

  • 2. The offices listed below have been designated by each Participant to process visit requests that are received from the other Participant. The listed offices are hereafter referred to as Central Visit Offices or CVOs.

    The Netherlands:

    • a) Visits to and from industries

      Netherlands Industrial Visit Control Office (NIVCO)

      P.O. Box 20010

      2500 EA The Hague

      Netherlands

    • b) Visits to and from military establishments

      Ministry of Defence

      Defence Intelligence and Security Service

      Industrial Security Office

      Section Visit Requests

      P.O. Box 20701

      2500 ES The Hague

      Netherlands

      United States:

      Department of the Army

      Office of the Deputy Chief of Staff for Intelligence, G-2

      Attn: Foreign Liaison Directorate (DAMI-CHS)

      Washington, DC 20310-1040

      United States of America

      Department of the Navy

      Navy International Programs Office

      Foreign Disclosure Policy Control Division (Navy IPO- 10)

      Washington, DC 20350-5000

      United States of America

      Department of the Air Force

      Office of the Deputy Under Secretary of the Air Force (International Affairs)

      Foreign Disclosure & Technology Transfer Division (SAF/IAPD) 1010 Air Force Pentagon

      Washington, DC 20330-1010

      United States of America

      Defense Intelligence Agency

      Foreign Liaison Staff (DIA/PO-FL)

      Washington, DC 20301-6111

      United States of America

      (The Defense Intelligence Agency processes visits to the Office of the Secretary of Defense (OSD), the OSD Staff, Department of Defense Agencies, and the Joint Staff, and their contractors.)

  • 3. Requests for approval of visits shall include the following information:

    • a) Requesting facility. Provide the full name and postal address (include city, state, country, and postal zone) and the telephone and telefax numbers of the facility.

    • b) Government agency or industrial facility to be visited. Provide the full name, title, and visit (street) address (include city, state, country, and postal zone) including telephone and telefax number, E-mail address and name of the person with whom the meeting will take place (point of contact).

    • c) Dates of visit. Provide the actual date or period (date-to-date) of the visit by day-month year.

    • d) Type of visit. Specify whether the visit is a government initiative or commercial initiative and whether the visit is being initiated by the requesting facility or the facility to be visited. Government initiative will be specified only if the visit is in support of an authorized government program, which must be fully described in subparagraph g., below.

    • e) Subject to be discussed/justification. Give a concise description of the issues or subjects to be discussed and the reason for the visit. Do not use unexplained abbreviations. In the case of a request for recurring visits, this item should state recurring visits as the first words in the data element (e.g. recurring visits to discuss...) or in the case of an amendment (amendment to visit ID number....).

    • f) Anticipated level of classified information to be involved. Indicate TOP SECRET, SECRET, CONFIDENTIAL, as applicable, and country of origin of the information.

    • g) Pertinence of visit. Specify the full name of the government program, Arrangement, or sales contract (e.g. foreign military sales case), or request for proposal or tender offer, using commonly used or explained abbreviations only.

    • h) Particulars of visitor.

      Name – family name, followed by forename in full and middle initial(s))

      Date of birth (day-month-year)

      Place of birth (city, state, and country)

      Security clearance status (e.g. TS, S, C)

      Passport number/identification number

      Nationality

      Position – Indicate he official title or position the visitor holds in the organization (e.g. director, product manager, etc.)

      Contractor/government agency – Provide the name of the industrial facility or government agency that the visitor represents.

    • i) Security officer of the requesting contractor/government agency. Provide the name, telephone number of the requesting security officer.

    • j) Certification of security clearance. To be completed by the applicable government clearance agency.

    • k) Remarks. This item can be used for certain administrative requirements (e.g. proposed itinerary, requests of hotel reservations, and/or transportation). If the visit has been pre-coordinated, the name, telephone and telefax numbers of the knowledgeable person with whom advance Arrangements have been made should be stated.

  • 4. One-time visits: One-time visits may be for a single visit of a short duration (not to exceed 30 days for the U.S. and 30 days for the Netherlands). Requests for approval of one-time visits will be submitted via government to government channels. Unforeseen circumstances may occur that require individuals to carry out urgent visits which, due to the urgency, do not permit the usual visit notification lead times to be processed. In such circumstances visit applications will be critically reviewed and must be fully documented and justified by the sending Participant. Such emergency visits will be arranged only in exceptional circumstances when:

    • a) The proposed visit is related to an official government request for proposal/request for tender offer (e.g. submission of, or amendment to, a bid or proposal; attendance at pre-contract negotiations or bidder's conference); or,

    • c) The visit is to be made in response to the invitation of a host government official or host contractor official and is in connection with an official government project, programme or contract; and,

    • d) A programme, project or contract opportunity will be placed in jeopardy if the visit request is not approved.

  • 5. Intermittent recurring visits. Programs that will involve intermittent, recurring visits related to classified contracts that are awarded pursuant to bilateral programs conducted under a government-to-government or agency-to-agency Arrangement or memorandum of understanding, and such visits related to commercial contracts that have been approved by the governments, will be processed as prescribed in subparagraphs (a) or (b) below, as applicable:

    • a) Bilateral programs. A list will be developed by each participating contractor facility of those individuals who are participating in the program. The list will be included with a request for visit authorization containing the information described in this Appendix. The requests will be sent through government channels to the Central Visit Offices of the host Participant, as identified in paragraph 2, above. Visit authorizations under this procedure will be valid for the duration of the program and there will be no limit on the number of visitors authorized. The list will be checked annually by the requesting CVO to ensure that there is still a requirement for all visitors to continue to be included. There will be no limit to the number of amendments, which may be submitted to the list but will be confined to the addition and deletion of names. Upon approval, direct Arrangements may be made for visits to the participating contractor facilities and government organizations.

    • b) Other than bilateral programs. A list will be developed by contractor facilities of those individuals that are involved in a specific contract or subcontract that has been approved by the responsible government authorities. The list will be included with a request for visit authorization containing the information described in paragraph 3. above. The request will be submitted to the CVO identified in paragraph 2, above, for visits to Netherlands and to U.S. contractor facilities and government organizations. Visits by individuals on the approved lists may be arranged directly with the security offices of the Contractor facility or government organization to be visited. Visit authorizations under this procedure will be valid for one year, but may be renewed for periods of up to one year as necessary for performance on the contract or subcontract.

  • 6. Extended visits. An extended visit request should be used when a visitor will be required to remain on a site (industrial or government) for a continuous period of greater than 30 days in the Netherlands, or 30 days in the U.S. The lead-time for a request for an extended visit authorization to the Netherlands is thirty (21) days, and for the U.S. is thirty (21) days. An extended visit authorization can be valid for a period of up to three (3) years in the Netherlands, and for the duration of the program in the U.S. All extended visit authorizations will be validated annually by the requesting CVO to ensure that there continues to be a requirement for the individual to remain at the site. There are limitations on the type of work that can be carried out by an individual on an extended visit authorization.

  • 7. Visits to contractor facilities relating only to unclassified or Netherlands DEPARTEMENTAAL-VERTROUWELIJK information will be arranged directly between the sending and receiving facilities, and the visitor does not require a security clearance.

  • 8. When requested in regard to commercial entities, the authority to visit the facility of the prime contractor will include authorization to have access to or to disclose classified information at the facility of a subcontractor engaged in performance of work in connection with the same prime contract provided the subcontractor is included on the original visit request.

  • 9. It is the responsibility of the host site to ensure that the visitor is not allowed access to information or areas for which they do not have a need to know.

  • 10. Modifications to approved visit requests require the prior concurrence of the receiving Participant. Emergency visit requests may not be modified after approval.

16. Signatures

  • a) The foregoing represents the understanding between the Minister of Defence of the Kingdom of the Netherlands and the Department of Defense of the United States of America upon the matters referred to therein.

  • b) This Arrangement is signed in two originals in the English language.

For the Minister of Defence of the Kingdom of the Netherlands

(sd.) Major General B. Dedden

Director of the DISS

Date: 31 January 2006

For the Department of Defense of the United States of America

(sd.) BETH M. MCCORMICK

Deputy Under Secretary of Defense (TSP&NDP)

Date: 13 March 2006

Appendix D. to Security Procedures for Industrial Operations between the Ministry of Defense of the Netherlands and the Department of Defense of the United States (Security Protocol)

[Vervallen per 13-03-2006]

Transmission of classified material

Paragraph 2.e. of the Security Procedures for Industrial Operations Between the Ministry of Defense of the Netherlands and the Department of Defense of the United States (Security Protocol) provides that transmission of classified information shall be made only through representatives designated by each of the governments. This procedure is commonly known as transmission through government-to-government channels. The following information should be considered when implementing this requirement.

The method of shipment and the channels to be employed in transmitting classified material between each government should, whenever possible, be specified in the Security Requirements Clause of the basic contract, subcontract, or precontract solicitation. The attached routing sheet for the transmittal of classified documents is provided as guidance to assist in the identification of acceptable channels for incorporation into the Security Reguirements Clause. This routing may also be used as a procedural guideline when the need arises to transmit documents in those instances where the pertinent aspects of the Security Requirements Clause are unclear or not specifically adressed. The channels described therein should not be considered as the preferred mode in all instances. The availability and physical location of appropriate government representatives and the classification level and size of the material involved are all factors which must be considered.

Classified material shall be prepared for shipment (packaged) and transmitted consistent with the applicable procedures and receipting requirements of each signatory government to this Security Protocol.

Mailing addresses of the government activities identified in the attached routing sheet are are follows:

U.S. Cognizant Security Office

To be designated by the Defense Investigative Service

Cognizant U.S. Military Department Contracting Activity

To be designated by the Defense Investigative Service

HQ Defense Investigative Service

Defense Investigative Service

Attn: Industrial Security Directorate

1900 Half Street, S.W.

Washington, D.C. 20324

Cognizant Royal Netherlands Military Department

Ministry of Defense

Att. Director of Air Force Intelligence/

Chief Industrial Security Section

P.O. Box 5953

2280 HZ Rijswijk

The Netherlands

Ministry of Defense

Att. director of Army Intelligence/

Chief Industrial Security Section

P.O. Box 96904

2509 JH ’s-Gravenhage

The Netherlands

Ministry of Defense

Att. Director of Naval Intelligence/

Chief Industrial Security Section

P.O. Box 20702

2500 ES ’s-Gravenhage

The Netherlands

Attachment:

Routing of Classified Documents between the United States of America and the Netherlands

ATTACHMENT to APPENDIX D

Routing of classified documents between the United States of America and the Netherlands

  • A. Routing of Documents, Containing Netherlands’ Classified Information, To and From U.S. Industry.2

    Netherlands Industry

    Cognizant Royal Netherlands Military Department

    Royal Netherlands Embassy in Washington DC c/o Defense Attache or c/o Attache Defense Cooperation (Materiel)

    Request Routing Instructions For Appropriate U.S. Government Channels From: HQ Defense Investigative Service, Industrial Security Directorate (Department of Defense)

    U.S. Industry

    U.S. Industry

    Request Routing Instructions From: U.S. Cognizant Security Office

    Royal Netherlands Embassy in Washington DC c/o Defense Attache or c/o Attache Defense Cooperation (Materiel)

    Cognizant Royal Netherlands Military Department

    Netherlands Industry

  • B. Routing of Documents, Containing United States’ Classified Information, To and From Netherlands Industry3

    U.S. Industry

    Request Routing Instructions From: Cognizant U.S. Military Department Contracting Activity or U.S. Cognizant Security Office2)

    United States Embassy in The Hague c/o Office of Defense Cooperation (ODC) or Other Appropriate U.S. Government Controlled Installation in the Netherlands

    Cognizant Royal Netherlands Military Department

    Netherlands Industry

    Netherlands Industry

    Cognizant Royal Netherlands Military Department

    United States Embassy in The Hague c/o Office of Defense Cooperation (ODC) or Other Appropriate U.S. Government Controlled Installation in the Netherlands (as verified by U.S. ODC)

    Request Routing Instructions From or Transmit To: HQ Defense Investigative Service, Industrial Security Directorate (Department of Defense)

2) The U.S. Cognizant Security Office is prohibited from arranging government-to-government transmission of U.S. classified information unless presented with appropriate evidence that the information involved has been authorized for release to the Government of The Netherlands under the U.S. National Disclosure Policy.

Annex VI. to Memorandum of Understanding between the Government of the Kingdom of the Netherlands and the Government of the United States of America concerning the Principles Governing Mutual Cooperation in the Research and Development, Production and Procurement of Defense Equipment, signed at The Hague on 24 August 1978

Principles governing defense contract audit services

  • I. Introduction

    This annex supersedes Annex VI entered into between the governments of the Kingdom of the Netherlands and the United States, dated April 18, 1985, concerning Principles Governing Defense Contract Audit Services and sets forth the terms, conditions and procedures under which the participating governments will provide one another with defense contract audit services upon request in support of defense contracts, subcontracts, and Foreign Military Sales (FMS) Letters of Offer and Acceptance contemplated or executed under the Memorandum of Understanding (MOU).

  • II. General Principles

    The objective of this annex is to improve the effectiveness and efficiency of audit services available to the participating governments. Either government may request audit services from the other government. Both governments agree to perform the audits requested by the other government or otherwise required by this audit annex. In the event conflicts arise between any aspect of this annex and the laws of either participating government, the laws shall prevail. With notice to the other participating government, the purchasing government may elect to perform a specific audit in unusual circumstances, such as when the performing government can not satisfy an unusually short due date for an audit report.

    Contract audit reports shall be advisory. The purchasing government shall retain authority and responsibility for negotiating acceptable prices and contract settlements with contractors. Purchases by the Netherlands under the FMS Program will be handled under the U.S. FMS procedures in existence at the time of acceptance of the FMS agreement.

    When performing an audit for the U.S., the Netherlands agrees to use current U.S. cost principles and applicable cost accounting standards. The Netherlands also agrees that the U.S. will use its own cost principles when performing an audit for the Netherlands. All audit reports will be written in English. Consistent with U.S. cost principles and applicable cost accounting standards, the performing government may use the same audit methods it customarily uses for its own contracts, and shall determine the organizations and personnel to be involved.

    Neither participating government shall duplicate or review the work of the other. The governments shall hold periodic discussions to evaluate the operational effectiveness of the reciprocal agreement. In addition, each government agrees that compliance with this audit annex will be evaluated at least once every three years by its own appropriate review and oversight organization. A copy of the results of such reviews shall be provided to the other government.

    Solicitations, contracts, and subcontracts shall contain suitable provisions to enable the participating governments to act for and on behalf of one another under this annex and shall authorize access to contractor facilities and records as necessary. Nothing in this annex is to be construed to limit a purchasing government’s rights or remedies, including access to contractors records, as may be authorized by contract or the laws of the purchasing government.

  • III. Scope of Audit Annex

    This annex encompasses audits in support of contracts and subcontracts for defense equipment and services contemplated or executed under the MOU and FMS letters of offer and acceptance. It does not cover audits for architecture and engineering, construction, base support, operation and maintenance, or banking services, nor does it cover audits of universities, and contractors solely in the business of supporting the U.S. presence in the Netherlands. For purposes of this annex, defense contract audit services shall include the following types of audits:

    Forward Pricing Audits: Review of proposals submitted in contemplation of a contract award or a contract modification, to determine the allowability, allocability, and reasonableness of each proposed cost element.

    Accounting System Audits: Review of contractor accounting records, procedures, and systems to determine their accuracy, currency, completeness, and compliance with contract requirements.

    Estimating System Audit: Evaluation of cost estimating systems.

    Post Award Audits: Verify after contract award the currency, accuracy, and completeness of cost or pricing data submitted to the purchasing government as of the completion of negotiations. Post award audits shall be automatically performed; that is, without a request, by both governments whenever a contract or contract modification has been awarded that exceeds the then current U.S. threshold for mandatory post award audits (the current threshold is $ 50,000,000) and the purchasing government relied upon certified cost or pricing data submitted by a contractor. For contract awards less than this threshold, in which the purchasing government relied upon certified cost or pricing data submitted by a contractor, post award audits will be performed based upon a sampling approach devised by the performing government or whenever there are indications that a post award audit is appropriate based on prior experience with a contractor. In addition, other post award audits will be performed upon request of the purchasing government.

    Reimbursement Vouchers Audits: Verify payment vouchers submitted under cost reimbursement contracts or other contracts with cost reimbursement features (e.g. material reimbursement) and recommend cost disallowances when appropriate.

    Audits of Disclosed Accounting Practices: Verify contractor compliance with disclosed accounting practices and contractual accounting requirements.

    Overhead Cost Audits: Evaluate overhead cost records prior to overhead settlements.

    Termination Audits: Evaluate proposed termination costs and contract cost records prior to termination settlements.

    Final Pricing Audits: Review and verify actual costs incurred in the performance of cost reimbursement and fixed price incentive contracts for purposes of establishing the final cost or price.

    Other: Audit services considered necessary and requested by contracting country.

  • IV. Procedures

    Requests for contract audit services in the Netherlands shall be sent with a copy of the contractor’s proposal (if applicable) by air mail to: Defense Contract Management Command, International Brussels/D APO New York, NY 09667-6207

    A copy of each audit request shall be forwarded directly by air mail to:

    The Ministry of Defense

    Director Audit Agency

    Postbus 20701

    2500 ES The Hague

    The Netherlands

    All requests for audits in the Netherlands will also be sent by telephonic facsimile to the following:

    DCMR, International – Brussels/D

    Facsimile Telephone Number: 32 2 6487401

    Ministry of Defense, Director Audit Agency

    Facsimile Telephone Number: 31 70 3187596

    Requests for contract audit services in the United States shall be sent by telephonic facsimile, followed by written request with a copy of the proposal (if applicable) sent by air mail, to:

    Defense Contract Management Area Office, New York

    DoD Central Control Point

    201 Varick St.

    New York, NY 10014-4811

    USA

    Facsimile Telephone Number(212) 807-3343

    Requests for audits shall specify the type of audit services needed, the contractor, the contractor’s address, the subcontractor and address (if applicable), the proposal (if one is to be audited), any items requiring special review, the calendar date (not the number days after receipt of audit request) that the audit is needed by, a point of contact, telephone number, and facsimile telephone number. Acceptance of requests shall be acknowledged by telephonic facsimile by the performing government and a point of contact, telephone number, and facsimile number shall be provided.

    Each government agrees to establish a liaison person for this audit annex. The liaison office, liaison person, and telephone number shall be identified in each audit report. The liaison person shall assist in obtaining clarifications of audit requests or audit reports whenever necessary. The liaison person shall also assist in resolving problems with the timeliness, content, or quality of audit reports. If unable to resolve such problems, the issue will be escalated to successive managers (up to, in the Netherlands, the Director, Material Acquisition, Ministry of Defense, or, in the U.S., the Director, Foreign Contracting, Office of the Secretary of Defense).

    Each government agrees to provide audit reports in a timely manner. Audit reports submitted in accordance with the requested due dates, which for forward pricing audits is generally 45 days after receipt of request for audit, are timely. If the due date specified by the requesting government cannot be met, the performing government shall contact the point of contact identified in the audit request to explain the reasons for the delay. If the failure to meet the requested due date is caused by external factors, not within the control of the government performing the audit (such as not obtaining necessary cost data from a contractor), the purchasing government shall attempt to assist in resolving the problem and grant reasonable extensions as appropriate. If the inability to meet the requested due date is caused by action or inaction of the performing government, the issue will be escalated to the attention of the audit annex liaison person and to successive managers.

    The participating governments shall provide each other with access to all available information concerning contractor cost estimating systems and disclosed accounting practices when needed to support contract negotiations or enforcement. It is expected that contracts requiring the disclosure of accounting practices shall normally authorize contractors to file such disclosures with their own governments. In the United States, the files shall be maintained by the office administering the contract. In the Netherlands, the files shall be maintained by the Director of the Audit Agency.

    In order that the equity of this annex may be periodically appraised, information copies of all requests for audit by both countries will be sent to Defense Contract Audit Agency, European Branch office, Lindsey Air Station, APO New York 09633. To facilitate these periodic reviews, both governments agree to maintain a list of all audits performed for each other and the specific office that requested the audit shall be identified in such list.

  • VI. Content of Audit Reports

    All audit reports shall describe the type, scope, depth of the evaluation performed, and a point of contact with a telephone number. The audit reports shall describe what was reviewed or evaluated, the methodology used to perform the review, findings of the review, recommendations of the auditor, and the basis for the recommendations. The audit report shall address any areas that were specifically requested for review. Each audit report shall state that the proposal was audited for unallowable costs and identify any unallowable costs. While audits requested pursuant to this agreement will not encompass investigations, audits shall be performed in a manner that will provide reasonable assurance of detecting errors, irregularities, abuse, or illegal acts that: (1) could have a direct (or indirect) and material effect on contractor financial representations or the results of financial related audits; or (2) significantly affect the audit objectives. The audit report should identify the extent to which issues raised by the auditor were discussed with the contractor. Supporting evaluations by technical and other specialists shall be included in the reports as appropriate. The purchasing government may request additional clarifications or supporting data if necessary, and shall have the final authority to determine when the information provided is adequate for its purposes.

    For forward pricing audits, the reports shall, for each element of proposed cost, identify the offeror’s proposed cost, the basis for the proposed cost, how the auditor evaluated it, any recommended exceptions (questioned costs), and rationale supporting the recommended exceptions (questioned costs). The information supplied in the audit report should be sufficiently detailed to permit the purchasing government to develop and justify negotiation position.

  • VII. Protection of Information

    Information obtained through the implementation of this annex shall receive the same protection against unauthorized disclosure as it would normally receive under the laws and rules of the participating government which possesses it.

  • VIII. Charges

    Services will be provided under this annex without charge for all defense contracts, subcontracts, and FMS Letters of Offer and Acceptance entered into on or after the date of implementation of this annex provided that a joint review of the services being exchanged between the participating governments performed at not less than three year intervals indicates that general reciprocity is being maintained. If after such joint review either government determines that charges will be necessary, they may be imposed after not less than one year advance notice. Should charges by the U.S. Government become necessary, FMS procedures then in effect will apply.

  • IX. Duration

    This annex will remain in effect for a period as set forth in Article VII of the MOU and may be terminated under the conditions as set forth in that article.

For the Government of the Kingdom of The Netherlands

(sd.) B. J. M. VAN VOORST TOT VOORST

State Secretary of Defense

Place: The Hague

Date: 6.2.91

For the Government of the United States of America

(sd.) D. J. ATWOOD

Deputy Secretary of Defense

Place: Washington, DC

Date: 14 JAN 1991

Annex VII. to the Memorandum of Understanding between the Government of the Kingdom of the Netherlands and the Government of the United States of America concerning the Principles Governing Cooperation in the Research and Development, Production and Procurement of Defense Equipment

  • 1. Each Government will publish or have published in a generally available periodical, a notice of proposed purchases in accordance with national rules and departmental/ministerial provisions on publication thresholds. The Governments will notify one another any time threshold levels change. The notice will contain:

    • a) Subject matter of the procurement;

    • b) Time limits set for the submission of offers or an application for solicitation; and

    • c) Addresses from which solicitation documents and related data may be requested.

  • 2. The Governments shall provide on request copies of solicitations for proposed purchases. A solicitation shall constitute an invitation to participate in the competition and shall contain the following information:

    • a) The nature and quantity of the products or services to be supplied;

    • b) Whether the procedure is by sealed bids or negotiation;

    • c) The basis on which the award is to be made, such as by lowest bid price or otherwise;

    • d) Any delivery date;

    • e) The address and final date for submitting offers as well as the language or languages in which they must be submitted;

    • f) The address of the agency awarding the contract and providing any information required by suppliers;

    • g) Any economic and technical requirements, financial guarantees, and information required from suppliers;

    • h) The amount and terms of payment of any sum payable for solicitation documentation.

  • 3. Any conditions for participation in procurements shall be published in adequate time to enable interested suppliers to meet the conditions, and solicitations shall allow adequate time for response, consistent with user needs.

  • 4. Competing suppliers shall be promptly notified as to the successful offeror.

  • 5. Upon request, suppliers shall promptly be provided pertinent information concerning the reasons why they were not allowed to participate in a procurement or were not awarded a contract.

  • 6. There shall be published procedures for the hearing and review of complaints arising in connection with any phase of the procurement process to ensure that, to the greatest extent possible, disputes arising under procurements covered by this agreement will be equitable and expeditiously resolved between the offeror and the procuring Government.

For the Government of the Kingdom of the Netherlands

(sd.) B. J. M. VAN VOORST TOT VOORST

The State Secretary of Defense

Date: 27-11-90

For the Government of the United States

(sd.) D. J. ATWOOD

The Deputy Secretary of Defense

Date: 11/27/90

Annex VIII. Memorandum of Understanding between the Government of the Kingdom of the Netherlands and the Government of the United States of America concerning the Principles Governing Mutual Cooperation in the Research and Development, Production, and Procurement of Defense Equipment, signed 24 August 1978

Principles governing a scientist and engineer exchange program

  • I. Introduction

    This Annex sets forth the terms, conditions and procedures which shall govern a scientist and engineer exchange program (“the Exchange Program”) between The Ministry of Defense of the Kingdom of The Netherlands (“NL MOD”) and the Department of Defense of the United States (“US DOD”), hereafter referred to as “The Parties”. Professional knowledge of both Parties shall be shared for maximum mutual benefits to the extent authorized by the policies, laws and regulations of the United States and The Netherlands.

  • II. General Principles

    In order to implement the Exchange Program, the Parties agree to provide on-site working assignments to selected scientists and engineers from the other Party (hereafter referred to as “the Exchange Personnel”) in US DOD and NL MOD research, development and logistics facilities. The work assignments shall provide Exchange Personnel with knowledge of the organization and management of Host Party research and development activities related to conventional military systems. This Exchange Program shall not include technical training nor is it to be used as a mechanism for obtaining technical data related to the design, development and manufacture of military systems. Exchange of scientists and engineers under this Annex shall be conducted on a reciprocal basis so that value to each Party shall be essentially equal.

    The Exchange Program shall be administered by Executive Agents. The Executive Agent for the US DOD is the Department of the Army; for the NL MOD, the Executive Agent is the Netherlands Organization for Applied Scientific Research (TNO). The program shall be administered in compliance with Appendix A.

  • III. Selection and Assignment of Candidates

    Participation in the Exchange Program is restricted to military officers and civilian employees of the US DOD and the NL MOD and to employees of the Netherlands Organization For Applied Scientific Research TNO and National Aerospace Laboratory (NLR) and the Maritime Research Institute of the Netherlands (MARIN) working on behalf of the MOD.

    The placement of each candidate nominated under this program is conditional upon the ability of the Host Party to provide work assignments commensurate with the purpose and scope of the program for a mutually agreed period.

    Candidates should hold at least a baccalaureate degree in a scientific field and should have at least two years practical experience in the technical area related to the position to which they are assigned. Some exchanges, however, may require higher academic qualifications.

    To assist in the evaluation and selection of candidates, the NL MOD and the US DOD shall provide background resumes, areas of interest, and assignment objectives for each candidate, following the format of Attachment 1 of Appendix A, at least 12 months prior to the desired date of assignment. It shall be the responsibility of the Host Party Executive Agent to provide, within 6 months of the desired date of assignment, a position description for available positions. The position description shall follow the outline at Attachment 2 of Appendix A. Final selection of candidates, and their assignment to a position nominated by the Host Party, shall be by mutual agreement between the NL MOD and the US DOD.

    Exchange Personnel shall not act in a liaison capacity or otherwise act as representatives of their respective Party or government while assigned to an exchange position, nor shall they act as representatives of the Host Party or Host Government or the facility to which they are assigned. They shall perform functions only as described in the position description of the position to which assigned.

  • IV. Costs

    Costs incurred as a result of the participation of Exchange Personnel under this Annex shall be borne by the Party providing the Exchange Personnel (the “Parent Party”), to the extent authorized by the governing laws and regulations of the Parent Party, or by the Exchange Personnel themselves. Except as provided below, the Host Party shall not be responsible under this Annex for any of the expenses or costs of Exchange Personnel from the other Party.

    Travel and per diem costs associated with travel performed in connection with assigned duties within the Host Country shall be paid by the Party requesting or directing such travel.

  • V. Security

    During the selection process, each Party shall inform the other of the level of security clearance required, if any, to permit candidates access to classified information. Access to classified information shall be kept to the minimum required to accomplish the work assignment as determined by the Host Party based on the position description.

    Each Party shall because to be filed, through The Netherlands Embassy in Washington, D.C., in the case of the NL MOD, and through the U.S. Embassy in The Hague, in the case of US DOD, the appropriate security assurances for each selected candidate. The security assurances shall be prepared and forwarded through prescribed channels in compliance with established Host Government and Host Party visit and accreditation procedures.

    Exchange Personnel shall at all times be required to comply with security laws, regulations and procedures of the Host Government and Host Party. Any violation of security procedures by exchange personnel during his/her assignment shall be reported to the Party of origin for appropriate action.

    All classified items, plans, specifications, or other information to which personnel participating in this program may have access shall be subject to all provisions and safequards provided for under the U.S./Netherlands General Security of Information Agreement, dated 18 August 1960 as amended 6 April 1981, and including the Industrial Security Annex thereto.

    The Host Party and Parent Party shall ensure that all assigned Exchange Personnel are fully cognizant of applicable security laws and regulations concerning the protection of proprietary information (such as patents, copyrights, and trade secrets), classified information and other information to be disclosed under this program, both during and after termination of a participant’s assignment.

    The data and information to be exchanged under this Exchange Program, as well as access to facilities, equipment and sites shall not extend to the release of RESTRICTED DATA or FORMERLY RESTRICTED DATA as defined in the U.S. Atomic Energy Act of 1954 as amended; to communications security information; to information for which foreign dissemination has been prohibited in whole or in part; to information for which a special access authorization is required; or to information which has not been specifically authorized for release to the Parent Government of the Exchange Personnel under applicable disclosure policies of the Host Government and Host Party.

    To ensure the protection of proprietary, classified, and other information disclosed under this program, both during and after termination of a participant's assignment, all Exchange Personnel shall be advised of applicable security regulations and statutes and shall be required, prior to arrival in the Host Country, to sign the applicable agreements at Appendices B and C.

  • VI. Technical and Administrative Matters

    To the extent authorized by its governing laws and regulations, the Host Party shall provide to Exchange Personnel, such administrative support as is deemed necessary for the efficient perfomance of their assigned tasks.

    To the exent authorized by the Host Party’s governing laws and regulations, Exchange Personnel shall be subject to the same restrictions, conditions and privileges as Host Party NL MOD/US DOD personnel of comparable rank in the area of assignment. Further, to the extent authorized by the governing laws and regulations of the Host Party and applicable international agreements between the Parties, Exchange Personnel and their authorized dependents shall be accorded on a reciprocal basis:

    • a) Exemption from any tax by the Host Party’s government upon income received from the Parent Party’s government.

    • b) Exemption from any customs and import duties or similar charges levied on articles entering the Host country for their official or personal use, including, inter alia, their baggage, household effects, and private motor vehicles. The foregoing does not in any way limit privileges set forth elsewhere in this Annex, or other privileges granted by the laws and regulations of the Host Government or Host Party.

    Exchange Personnel and their authorized dependents shall be briefed regarding their specific entitlements, privileges, and obligations prior to or immediately following their arrival in the Host country. The briefing shall include the subjects described at Attachment 3 to Appendix A.

    As a general rule, except for religious holidays, Exchange Personnel shall observe holidays of the Host government rather than their own national holidays. Exceptions to this rule may be made by the facility to which the Exchange Personnel are assigned.

    All Exchange Personnel shall work under the guidance and control of a Host Party supervisor who shall, after three months and upon completion of a participant's tour of duty, submit an evaluation report through the Executive Agent to the participant’s Parent Party.

    Supervisors will ensure daily observation of each participant's performance in order to provide a basis for counselling and reporting.

    The status of Exchange Personnel while in the Host country shall be governed by the Agreement Between the Parties to the North Atlantic Treaty Regarding the Status of Their Forces (NATO SOFA) signed June 19, 1951, and related bilateral agreements between the Parties.

    Where applicable, claims against either Party or their personnel shall be handled in accordance with Article VIII of the NATO SOFA.

  • VII. Inventions and Technical Information

    The respective rights of the Exchange Personnel and the two Parties to inventions (whether patentable or non-patentable) made (either conceived or reduced to practice) and to technical information developed by an exchange scientist or engineer during the period of and as a result of his/her participation in the program shall be governed by the laws and regulations of the respective parent government of exchange personnel.

    To the extent that the right, title, and/or interest to an invention and/or to technical information is assigned to the Parent Party under the provision of the preceding paragraph, the Parent Party grants free of charge of the Host Party for its own governmental purposes a non transferable, world-wide, irrevocable, non-exclusive, royalty-free license to practice (make, use and sell) such inventions and to have unlimited use and reproduction rights in such technical information. Additional rights to inventions and technical information, such as transfer of patents, may be negotiated between the Parties.

    Notwithstanding the rights delineated in the paragraphs above, the Parent Party shall obtain from each exchange scientist and engineer, as a condition for participating in the program, a written commitment regarding inventions and technical information in the form prescribed in Appendix B and shall promptly deliver the signed originals to the Host Party prior to the arrival of the exchange scientist or engineer in the Host Country.

    The Parent Party of a scientist or engineer who makes an invention shall have first priority to prosecute or to have prosecuted on its behalf patent applications to secure rights granted under this section. The Parent Party shall, within a reasonable time, notify the Host Party of the countries in which it or the scientist or engineer inventor elects to file patent applications. To the extent consistent with other applicable international agreements for all other countries, the Host Government may prosecute or have prosecuted on its behalf patent applications to secure rights.

    Any additional compensation or award under an incentive award program or similar program due to the participant scientist or engineer for the work performed under this program shall be the responsibility of the Parent Party.

  • VIII. Duration and Termination

    This Annex shall enter into force upon signature and shall remain in force for a period as set forth in Article VII of the MOU and may be terminated under the conditions as set forth in that article.

For the Government of the Kingdom of the Netherlands

(sd.) J. FLEDDERUS

Date: 6 January 1993

Location: The Hague

For the Government of the United States of America

(sd.) DONALD J. YOCKEY

Date: 2 Dec 92

Appendix A. Procedures for Administering the Exchange of Scientists and Engineers

  • A.1 This Appendix to the Annex between the US DOD and the NL MOD regarding the Exchange of Scientists and Engineers provides the procedures for nominating and assigning Exchange Personnel from one country to DOD/MOD resarch and development facilities in the other country.

  • A.2 The Executive Agent shall be the single point of contact with the other Party for the administration of the Exchange Program.

  • A.3 Each Executive Agent shall obtain from its Government's defense components and submit to the other Executive Agent applications of individuals for consideration as Exchange Personnel. The personnel application shall include a resume in the format of Attachment 1. The selection and placement of five or more exchange personnel in one country during a calendar year period shall be administrated and coordinated on a group basis to facilitate administrative processing.

  • A.4 Candidate applications shall be submitted by the nominating Party to its Embassy for forwarding to the Executive Agent in the Host Party. The submission of the applications shall occur at least twelve months prior to the desired assignment start date.

  • A.5 The Host Party Executive Agent shall distribute the candidate resumes it receives to its defense components for review and placement selection.

  • A.6 After review and coordination of the resumes and identification of applicable assignments, the Host Party Executive Agent shall submit to the nominating Party through prescribed channels the proposed Position Description in the format of Attachment 2 at least six months prior to the expected assignment date.

  • A.7 Upon acceptance of the Position Description, the nominating Party shall submit appropriate documentation, to include accreditation requests, through its embassy channels to the Host Party at least 60 days in advance of the proposed date of assignment.

  • A.8 Upon receipt of the information specified in A.7, above, the Host Party Executive Agent shall notify the receiving defense component of the individual’s arrival date(s). The receiving defense component shall, in turn, notify the participant’s supervisor and encourage personal contact between the supervisor and the Exchange Personnel prior to arrival. A sponsor, usually the supervisor, shall be assigned to meet the Exchange Personnel on arrival and help make the necessary living arrangements for the Exchange Personnel and family.

  • A.9 The Host Party Executive Agent shall arrange for an in-briefing for all new Exchange Personnel, normally to be held at the participant’s embassy. The embassy and sponsor or supervisor shall, as a minimum, brief the Exchange Personnel on the items contained in Attachment 3. The Host Party Executive Agent and security manager of the host defense component shall provide the overall welcome to the program and emphasize security system requirements. The Host Party sponsor or Host Party supervisor shall familiarize the Exchange Personnel with the sponsoring organization’s research and development mission, as well as the specific assignment location and duties.

  • A.10 The Host Party Executive Agent, along with Embassy point of contact, shall be the interface with all supervisors and/or Exchange Personnel in administering the program.

  • A.11 The Host Party Executive Agent shall arrange for a proper end-of-assignment ceremony and out briefing for Exchange Personnel. It is suggested that a prominent individual from the Host Party research and development community address the Exchange Personnel when there is a group departing. A Certificate of Completion may be presented to each foreign participant. The Host Party Executive Agent shall provide a security debrief and allow the individual a final opportunity to comment on his/her experience with the Exchange Program.

Appendix A. Attachment 1

Professional Background and Area of Interest

  • I. Personal Data:

    Name:

    Rank or Title:

    Scientific or Technical Specialty:

    Passport No:

    Marital Status: (if children, how many, ages and sex)

    Address:

    • Office:

    • Telephone:

    • Home:

    • Telephone:

  • II. Education:

    Name of college/university

    Degree received/subject

  • III. Professional Employment:

    (List military and civilian employment)

  • IV. Name of Present Organization

  • V. Language Proficiency:

    • a. Recent aptitude/proficiency scores, if applicable

    • b. Academic Language Training or Language Experience

    • c. Spouse’s Proficiency.

  • VI. Career Areas of Interest

    • A. Primary

      • 1.

      • 2.

      • 3.

    • B. Secondary

      • 1.

      • 2.

      • 3.

Appendix A. Attachment 2

Position Description

  • 1. Title of Position:

  • 2. Position Location:

  • 3. Qualifications/Skills Required for Position:

  • 4. Description of Specific Duties:

  • 5. General Categories of Information to Which Access Will be Required:

  • 6. Supervisor:

    • Name

    • Title/Grade

    • Address

Appendix A. Attachment 3

Suggested Topics to be covered by Embassy during In-brief of Exchange Scientists or Engineers

  • Peculiarities of status during stay in Host country

  • Import and registration of private vehicle

  • Driver’s license and automobile insurance

  • Treatment of Customs in bringing in goods for personal use (e.g., suitcases, household goods, etc.).

  • Taxes

  • Employee inventions

  • Receipt of paychecks

  • Opening a private bank account

  • Necessary correspondence relative to personal affairs

  • Passports and visas

  • Holidays, annual leave, sick and emergency leave and home vacation privileges

  • Authorizations for business travel (TDY)

  • Visit requests (to visit installations other than place assigned)

  • Procedures to book flights for TDY

  • Returning to home country

  • Regulations and allowances relative to moving costs (household goods, per diem, weight allowances, etc.)

  • Instructions for obtaining assistance (financial, credit, verification of employment, etc.)

  • Overseas employment compensation

  • Housing rental allowance

  • Procedure for settling travel vouchers

  • School assistance

  • End of assignment and periodic written reports

  • Suggested books and literature about the Host country for background information

  • Provide list of important organizations, persons, addresses, telephone numbers (e.g., Embassy, Armed Forces Administratieve Office, etc.)

  • Security procedures and contacts

Appendix B. Agreement regarding Inventions made and Technical Information developed by visiting Scientists and Engineers

Assignment of Rights to Host Party

In consideration for being selected to participate in the US/The Netherlands Scientist and Engineer Exchange Program, I hereby grant to the (Host Party) a worldwide, nontransferable, irrevocable, non-exclusive, royalty-free license to practice (make, use or sell) Inventions (whether patentable or not patentable) and unlimited use and reproduction rights in technical information, which inventions are made (either conceived or reduced to practice) by me or which technical information is developed by me during my participation in the program.

Appendix C. Agreement Regarding Conditions and Responsibilities

I understand and acknowledge that I have been accepted for assignment to (name and location of organization to which assigned) pursuant to an agreement between The Netherlands Ministry of Defense and the United States Department of Defense (“the Parties”). In connection with this assignment, I further understand, acknowledge, and certify that I shall comply with the following conditions and responsibilities:

  • 1. The purpose of the assignment is to gain knowledge of the organization and management of Host Party research and development activities related to conventional military systems. There shall be no access to technical data or other information except for that which is required to perform the duties of the position to which I am assigned.

  • 2. I shall perform only functions as described in the Position Description for my work assignment, and shall not act in any other capacity on behalf of my government or Parent Party.

  • 3. Access to information shall be limited to that information determined by my designated supervisor to be necessary to fulfill the functions describd in the Position Description for my work assignment.

  • 4. All information to which I may have access in the course of this assignment shall be treated as information provided to my government in confidence and shall not be further released or disclosed by me to any other person, firm, organization or government without the prior written authorization of the Host Party.

  • 5. I have been briefed on, understand, and shall comply with all applicable security regularions of the Host Party and Host Government.

___________ (Signature)

___________ (Typed Name)

___________ (Grade/Title)

___________ (Date)

  1. [Red: Dit document ligt ter inzage bij het Ministerie van Defensie, Directoraat-Generaal Materieel.] ^ [1]
  2. Reads left to right. ^ [2]
  3. Reads left to right. ^ [3]
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