Proposed Rule Could Reqire Certain Contractors to Share Export Authorizations With DOD
The Defense Department is proposing a regulatory revision that would require certain contractors to provide their export authorizations to the Defense Contract Management Agency. The change would revise the Defense Federal Acquisition Regulation Supplement to require contractors to provide the agency with export license exemptions, export license exceptions, export licenses or other approvals when the contract “requires government quality assurance surveillance oversight and has delivery to, or production or performance in, government quality assurance countries,” the rule said. Comments are due May 22.
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A “significant amount of time is required” to determine whether a contractor’s export license allows “for foreign auditors to perform required quality assurance functions in lieu of” the DCMA, the agency said, and DCMA can’t review export authorizations unless its “personnel travel to the contractor’s worksite.” If the agency “is able to receive and review an export authorization from the contractor to determine whether or not they can delegate the work to foreign auditors, this problem would be resolved.”
The proposed rule would require the contractor to provide the export information to DCMA and “identify a point of contact to answer questions,” the agency said. “Receiving the information directly will allow DCMA, without traveling internationally, to make an informed determination regarding whether quality assurance activities must be performed by a U.S. contract administrator or may be delegated to a qualified foreign inspector.