Proposed ITAR Rules Address Technical Data, Transfer Programs
December 14, 2009
The Department of State has issued two proposed rules that would amend the International Traffic in Arms Regulations. The first addresses the exemption for technical data at ITAR 125.4(b)(9). The proposed rule would clarify the exemption covers technical data, regardless of media or format, sent or taken by a United States person, who is an employee of a U.S. corporation or a U.S. government agency, to a U.S. person employed by that U.S. corporation, or to a U.S. government agency outside the U.S. The exemption would explicitly allow hand carrying technical data by a U.S. person meeting these conditions to another U.S. person meeting the specified conditions, or to a U.S. government agency outside the U.S., as long as the criteria set forth in ITAR 125.4(b)(9) are met. Comments are due January 25, 2010. For the text of the proposed rule, see ¶70,450.04.
License Clarification
The second proposed rule concerns government transfer programs and exports involving foreign-owned military aircraft and naval vessels. The rule would amend ITAR 126.6 to clarify the particular circumstances when a license is not required by the Directorate of Defense Trade Controls. The proposed amendments include changes to the title of this section to more accurately describe its coverage. Comments on this proposed rule are also due January 25, 2010. For the text of the rule, see ¶70,450.05.
Executive Order Targets Improper Government Payments
President Obama has issued Executive Order 13520, Reducing Improper Payments, which seeks "to reduce improper payments by intensifying efforts to eliminate payment error, waste, fraud, and abuse in the major programs administered by the Federal Government." The November 20, 2009, order creates a number of new policies.
Transparency
The order assigns the Director of the Office of Management and Budget the tasks of identifying the federal programs in which the highest dollar value or majority of government-wide improper payments occur, establishing targets for reducing improper payments associated with each high-priority program, and issuing government-wide guidance on the implementation of the order. In addition, the Secretary of the Treasury must publish on the Internet information about improper payments under the high-priority programs. The information must include the names of the accountable officials, current and historical rates and amounts of improper payments, causes of the improper payments, current and historical rates and amounts of recovery of improper payments, targets for reducing and recovering improper payments, and the entities that have received the greatest amount of outstanding improper payments. The Secretary is also directed to establish an Internet-based method for collecting information concerning improper payments from the public.
Agency Accountability
The order also instructs agencies to designate an official who holds an existing Senate-confirmed position to be accountable for meeting the targets for reducing improper payments. Thereafter, the official must submit to the agency's Inspector General a report containing the methodology for identifying and measuring improper payments in the high-priority programs and the plans for meeting the reduction targets. If the targets are not met, the official must prepare a remedial plan. Agencies also must submit a publicly available report outlining high-dollar improper payments they have identified. The report must describe any actions an agency has taken or plans to take to recover improper payments, as well as any actions it intends to take to prevent improper payments from occurring in the future.
Contractor Provision
A section that directly impacts contractors requires the Federal Acquisition Regulatory Council to recommend to the President actions designed to enhance contractor accountability for improper payments. The consequences for knowingly failing to disclose in a timely manner credible evidence of significant overpayments received on a government contract may include debarment, suspension, financial penalties, and identification through a public Internet website.