How to Clear the Path Through ITARS And Better Prepare to Bid for US Government Contracts

1. How to Clear the Path Through ITARS And Better Prepare to Bid for US Government Contracts

2. Introduction • What Is “ITAR”? • Who Must Comply With ITARs? • The Potential Market • Market “Longevity” (defense vs. commercial) • Step By Step Preparation Guideline • Types of Government Assistance Available • Federal • Provincial

3. 1: What is ITAR International Traffic in Arms Regulations (ITARs) • The purpose/objective of ITARs is to insure that armament designs, hardware and associated software do not get into undesirable (as defined by the US) hands. • ITARs cover every aspect of who sees or does design & manufacture of arms and various types of armament delivery systems. • Manufacturers designers, trainers and testers must comply with ITARs to become eligible to supply components or assembled components to U.S. defense contractors.

4. 2: Who Must Comply with ITARs? • Designers and/or manufacturers and/or assemblers of components and assemblies which are, or could be used in armaments, or armament guidance &/or delivery systems. • The ownership and employees of such companies must be ITAR – compliant, i.e. composed of companies and citizens of ITAR- approved countries. Dual citizenships must be vetted. • Companies supplying components that fall under ITARs to a non-approved country, or a non-approved chain of ownership are ineligible. • Companies supplying products that are non-military in nature, even though used aboard military guidance and delivery systems ex. Food containers, napkins, shoes, need not comply.

5. 3: The Potential Market • Planned Canadian Military expenditures (which will generate offsets) as of June 2006: • $2-3 billion – heavy lift long range transport planes • $3-4.5 billion – Hercules replacement aircraft • $3-4 billion – Heavy lift helicopters • Offsets on Canadian military purchases from US suppliers are recently dollar for dollar. • Offset contracts do not always have to be for parts for the program generating the offset work.

6. 4: Market “Longevity” (defense vs. commercial) • Defence contracts offer a balance to commercialcycles – which they do not follow - because they are based on government’s needs & timetable • Defence contracts are nominally “life of the program”, 20 – 30 years, subject to certain conditions • Advantage goes to suppliers “in early” on new programs • Presence on 1 program helps subsequent bids • Defence contracts can be used to build relationships that can cross over to commercial applications. For ex: Boeing; Bell Helicopter Textron; Sikorsky. • Defence contracts can lead to commercial opportunities for companies in non-traditional markets

7. 5: Step By Step Preparation Guideline Step 1 Register with CCR • The Central Contractors Registration ( CCR ) • Central Contractor Registration (CCR) is the primary registrant database for the U.S. Federal Government. • CCR collects, validates, stores, and disseminates data in support of agency acquisition missions, including Federal agency contract and assistance awards. • The Central Contractors Registration Handbook can be obtained at:http://www.ccr.gov/pdfs/CCR_Handbook.doc • The TPIN Number • Your TPIN number is a confidential password into your CCR information.

8. 5: Step By Step Preparation Guideline Step 2 Get a DUNS Number • What is a DUNS Number? • The Data Universal Numbering System • (D-U-N-S) number is a unique nine-character identification number provided by the commercial company Dun & Bradstreet (D&B). You must have a different 9-digit D-U-N-S Number for each physical location and different address in your company as well as each legal division that may be co-located. • How do I get a DUNS Number? • D-U-N-S Numbers can be requested from D&B at http://fedgov.dnb.com/webform. At the D&B site you may search to see if you already have a D-U-N-S Number or request a new one.

9. 5: Step By Step Preparation Guideline Step 3 Obtain an NCAGE Number What is an NCAGE Number? Nato Commercial and Government Entity Code • Foreign registrants in CCR must have a NATO Commercial and Governmental Entity (NCAGE) Code assigned. • Non-USA registrants must also obtain a North Atlantic Treaty Organization (NATO) CAGE • How do I get an NCAGE Number? • NCAGE numbers can be obtained through: http://www.dlis.dla.mil/Forms/Form_AC135.asp

10. 6: Government Assistance Available(Federal) Canadian Commercial Corporation (CCC) • CCC acts as the official contracting body between the United States and Canada regarding ALL defense contracts > $100K • CCC provides performance guarantees to International Buyers • Prior to working with CCC, a company must be able to demonstrate that they have: • A business plan clearly indicating • Managerial capability • Technical capability • Financial capability • Sold this product before • Exported it before • Adequate finances to support the project • An RFP

11. 6: Government Assistance Available(Federal) Export Development Canada (EDC) • Export Insurance • Foreign Buyer Financing • Working Capital Solutions • Contract and Insurance Bonding Support

12. 6: Government Assistance : ProvincialMDEIE -http://www.mdeie.gouv.qc.ca/page/web/portail/en/ Strategy :Québec government to support the Québec aeronautical industry. 5 key initiatives: • Support prime contractors and equipment manufacturers • Support the development of Québec SMEs • Maintain a pool of qualified workers • Support innovation and productivity • Strengthen the partnership with the federal government

13. 6: Government Assistance Available(Provincial) MDEIE • Assistance to Quebec Aerospace Industry • Financing • Training • Other resources Emploi Quebec • Human Resource Development Support

14. Contact Us • Steve Woloz & Associates • www.swaassoc.com • Steve Woloz 514.944.8241