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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: March 22, 2000

FROM: Barry McVay, CPCM

SUBJECT: Department of Defense; Offsets in Defense Trade

SOURCE: Federal Register, March 22, 2000, Vol. 65, No. 56, page 15318

AGENCIES: Department of Defense (DOD)

ACTION: Request for Comments

SYNOPSIS: The Interagency Offset Steering Committee (IOSC) is seeking information that will help it develop strategies for discussions and consultations with other countries on reducing or eliminating the adverse effects of offsets in defense trade.

DATES: Comments (5 copies) must be received no later than May 8, 2000.

ADDRESSES: Send comments to Domenico C. Cipicchio, Deputy Director, Defense Procurement, Foreign Contracting, OUSD (AT&L), 3060 Defense Pentagon, Washington, DC 20301-3060.

FOR FURTHER INFORMATION CONTACT: Susan M. Hildner, Procurement Analyst, Defense Procurement, Foreign Contracting, OUSD(AT&L), 3060 Defense Pentagon, Washington, DC 20301-3060, 703-697-9352.

SUPPLEMENTAL INFORMATION: In accordance with Section 123 of the Defense Production Act as amended in 1992 (Public Law 102-588), the IOSC has been conducting discussions with U.S. allies on defense offsets. By their nature, offsets are market distorting and result in inefficient business practices.

The IOSC is chaired by DOD and includes representatives from the Departments of Commerce, State, and Labor, and the Office of the United States Trade Representative. The IOSC plans to hold discussions with all 21 countries with which the U.S. has a reciprocal procurement Memorandum of Understanding (MOU): Australia, Austria, Belgium, Canada, Denmark, Egypt, Finland, France, Federal Republic of Germany, Greece, Israel, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, and the United Kingdom. The IOSC is interested in data and recommendations that will support these discussions and aid in strategy development to reduce or eliminate offsets in defense trade. Interested parties are invited to submit written comments, opinions, data, information, or recommendations relative to this objective, including information that will help the IOSC assess the effects of offsets in defense trade more accurately.

If sufficient interest is demonstrated, a public hearing might be scheduled in the future.

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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