2000 DOE CONTRACTORS PURCHASING MANAGERS

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2000 DOE CONTRACTORS PURCHASING MANAGERS
SYMPOSIUM WORKSHOP
GLOBALIZATION
BUYING IN THE INTERNATIONAL MARKET PLACE
U.S. Department of Energy Lawrence
Livermore National Laboratory
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• DOE PROGRAMS
• PROGRAM DESCRIPTION
• PROBLEMS/LESSONS LEARNED

Brookhaven Science AssociatesU.S. Department of
Energy
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• DOE PROGRAMS
• - Initiatives for Proliferation Prevention (IPP)
• - Material Protection, Control and Accounting
  Program (MPCA)
• - International Nuclear Safety Program (INSP)

Brookhaven Science AssociatesU.S. Department of
Energy
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• DOE PROGRAMS
• - Russian Lab-to-Lab Warhead Dismantlement
  Transparency Program (DTP)
• - Nuclear Cities Initiative Program (NCIP)
• - Second Line of Defense Program (SLD)

Brookhaven Science AssociatesU.S. Department of
Energy
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• DOE PROGRAMS
• - Management of Plutonium No Longer Required for
  Defense Purposes
• - National Ignition Facility
• - Open Computer Center (OCC)

Brookhaven Science AssociatesU.S. Department of
Energy
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Initiatives for Proliferation Prevention

• A technology development program that provides
  challenging employment opportunities to Newly
  Independent States (NIS) Scientists with
  knowledge of nuclear, biological, or chemical
  weapons

Brookhaven Science AssociatesU.S. Department of
Energy
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Initiatives for Proliferation Prevention

• - IPP stresses the commercialization of high
  technology
• - Has successfully employed over 6,400
  scientists and engineers
• - IPP projects have helped keep scientists
  from selling their know-how to states of
  proliferation concern

Brookhaven Science AssociatesU.S. Department of
Energy
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Material Protection, Control and Accounting
(MPCA)

• The Mission of the MPCA program is to reduce
  the threat of nuclear proliferation and nuclear
  terrorism by rapidly improving the security of
  all weapons-usable nuclear material in Russia,
  the NIS and the Baltics

Brookhaven Science AssociatesU.S. Department of
Energy
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International Nuclear Safety Program (INSP)

• A cooperative effort to improve nuclear safety
  worldwide by engaging specialists in activities
  with nuclear regulatory and power plant personnel
  in other countries to correct major deficiencies
  and establish self-sustaining nuclear safety
  infrastructure.

U.S. Department of Energy Pacific Northwest
National Laboratory
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Russian Lab-to-Lab Warhead Dismantlement
Transparency Program (DTP)

• An initiative designed to sustain an
  unclassified technical dialogue with Russian
  experts on warhead dismantlement transparency and
  develop advocates for transparency within the
  Russian nuclear weapons complex.

U.S. Department of Energy Pacific Northwest
National Laboratory
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NUCLEAR CITIES INITIATIVE PROGRAM (NCIP)

• Create meaningful and sustainable jobs to aid
  MINATOMs downsizing by promoting and developing
  commercial applications of technologies at former
  Russian Nuclear Facilities

U.S. Department of Energy Lawrence
Livermore National Laboratory
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Second Line of Defense (SLD) Program

• Control the illegal movement of Nuclear material
  across Russian Borders

U.S. Department of Energy Lawrence
Livermore National Laboratory
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Management of Plutonium No Longer Required for
Defense Purposes

• Technical cooperation in the management of
  plutonium that has been withdrawn from Nuclear
  Military Programs and the disposition of
  plutonium is no longer required for Defense
  purposes

U.S. Department of Energy Lawrence
Livermore National Laboratory
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National Ignition Facility (NIF)

• Provide crystals from Russia to support the
  National Ignition facility Project.

U.S. Department of Energy Lawrence
Livermore National Laboratory
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Open Computer Center (OCC)

• Develop commercial software and scientific
  computing jobs at former nuclear design
  facilities

U.S. Department of Energy Lawrence
Livermore National Laboratory
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PROBLEMS/LESSONS LEARNED

• Taxes
• Export Licenses
• Statement of Work
• Acceptable Deliverables
• Invoices

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TAXES

• Dave Robertson

U.S. Department of Energy Pacific Northwest
National Laboratory
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PROBLEM

• FOREIGN Source of Revenue
• versus
• U.S. DOE Programs Face a Congressional
• Requirement NOT to Pay Taxes on the
• Assistance Provided

U.S. Department of Energy Pacific Northwest
National Laboratory
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RUSSIAN TAX BITE

• PERSONAL
• Bank Fees 00.35
• Institute Overhead 10
• Pension Fund 29
• Social Fund 5.4
• Medical Fund 3.6
• Unemployment Fund 2.5
• Transportation Fees 1
• Trade Union Dues 1
• Amount Received by 47.15
• Individual
• Social Fund Contributions.

• FEDERAL TAXES
• Profits 13 to 22
• Withholding 6 to 20
• (on profits)
• Personal Income 12 to 35
• Withholding 12 to 35
• Value Added 20
• Import Duties as valorom/
• specific rates
• Road Fund 30
• Regional Taxes

U.S. Department of Energy Pacific Northwest
National Laboratory
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DOE PROGRAM FUNDING RUSSIAN INSTITUTE OR
VENDOR RUSSIAN TAX AUTHORITY
U.S. Department of Energy Pacific Northwest
National Laboratory
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RESOLUTION
May 4, 1999 New Federal Law (Russian) Gratuitous
Aid/Assistance Registration and Certification
U.S. Department of Energy Pacific Northwest
National Laboratory
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Programs Approved for Registration by the
Commission for Technical Assistance (CITA) on
February 3, 2000

• Registration No. Program
• DOE 001000 MPCA Program
• DOE 002000 Program on Operational Safety
  Enhancements, Risk Reduction Measures and Nuclear
  Safety Regulation for Civil Nuclear Facilities in
  the Russian Federation
• DOE 003000 Program on Exchange of Technical
  Information in the Area of Safety and Security of
  Nuclear Warheads
• DOE 004000 Program on Plutonium Production
  Reactors
• DOE 005000 Program on Scientific and Technical
  Cooperation in the Management of Plutonium That
  Has Been Withdrawn from Nuclear Military Programs
• DOE 006000 Program on Nuclear Cities Initiatives

U.S. Department of Energy Pacific Northwest
National Laboratory
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EXPORT CONTROL AND COMPLIANCE

• Dave Robertson

U.S. Department of Energy Pacific Northwest
National Laboratory
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DEPARTMENT OF ENERGY PROGRAMS
DTP ? IPP ? INSP ? MPCA ? NCI ? SLD
EXPORT COMPLIANCE
ANL ? BNL ? LANL ? LLNL ? ORNL ? PNNL ? SNL
NATIONAL LABORATORIES
U.S. Department of Energy Pacific Northwest
National Laboratory
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DEFINITION
Transfer of Equipment, Materials, and
Information/Technology That Could Adversely
Affect Nonproliferation Objectives and/or
National Security
U.S. Department of Energy Pacific Northwest
National Laboratory
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Contracts and Procurements Are Vehicles That
Cause Exports to Occur
U.S. Department of Energy Pacific Northwest
National Laboratory
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• Regulations Are Based on
• The Atomic Energy Act of 1954
• Arms Export Control Act
• Nuclear Nonproliferation Act
• The Export Administration Act

U.S. Department of Energy Pacific Northwest
National Laboratory
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FOUR GOVERNMENT UNITS ARE RESPONSIBLE FOR U.S.
REGS

• Department of State Defense Articles and
  Defense Services
• NRC Nuclear Equipment and Nuclear Material
• DOE Engaging either directly or indirectly in
  production of Special Nuclear Material outside
  the U.S.
• DOC Generally Dual Use Material, Equipment, or
  Technology that Congress chooses to control

U.S. Department of Energy Pacific Northwest
National Laboratory
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• BIG QUESTION
• Is an Export License Required?

U.S. Department of Energy Pacific Northwest
National Laboratory
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THE FIVE FACTS INQUIRY

• What Is It?
• Where Is It Going?
• Who Will Receive It?
• What Will They Do with It?
• What Else Do They Do?

U.S. Department of Energy Pacific Northwest
National Laboratory
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DEPARTMENT OF COMMERCE

• Bureau of Export Administration (BXA)
• Licenses
• EAR 99/No License Required (NLR)
• Individual Validated License (IVL)
• International Cooperative License (ICL)

U.S. Department of Energy Pacific Northwest
National Laboratory
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• Whom Do You Ask?
• EXPORT CONTROL MANAGER

U.S. Department of Energy Pacific Northwest
National Laboratory
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ICL 5000005

• Granted to DOE-MPCA Program
• National Laboratories
• Pre-Approved
• Commodity list
• Ultimate consignee list
• Electronically Processed
• Approval two to three weeks

U.S. Department of Energy Pacific Northwest
National Laboratory
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STATEMENT OF WORKDELIVERABLESINVOICES

• Dave Herr

U.S. Department of Energy Lawrence
Livermore National Laboratory
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STATEMENT OF WORK

• Institute and Lab Technical Discussions
• Clearly Defined SOW
• Describe Required Deliverables
• Lessons Learned

U.S. Department of Energy Lawrence
Livermore National Laboratory
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DELIVERABLES

• Acceptable
• Timely
• Lessons Learned

U.S. Department of Energy Lawrence
Livermore National Laboratory
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INVOICES

• Correctness
• Technical Review/Signature
• Payment
• Lessons Learned

U.S. Department of Energy Lawrence
Livermore National Laboratory
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Sites involved in the MPCA program
St. Petersburg Area - PNPI
-Khlopin - Krylov - St. Petersburg Central Design
Bureau - Baltiysky Zavod
Moscow Area - Bochvar - RDIPE - Eleron
(Transportation) - Automatics - MEPhI -
Lytkarino - Moscow ITEP - Kurchatov -
Elektrostal - Luch
Ignalina
Salispals
- Northern Fleet - Icebreaker Fleet
Lithuania
Latvia

Belarus
Murmansk
Ukraine
Sosny
Severodvinsk
Dubna
South Ukraine NPP
Kiev
Norilsk
Kharkiv
Arzamas-16/Avangard
Sevastopol
Podolsk
Dimitrovgrad
- Obninsk - Karpov
Chelyabinsk-70/Mayak
Penza-19
Russia
Georgia
Tbilisi
Tomsk-7 TPU
Zlatoust-36/Trekhgornyy
Aktau
- BNPP - SF-NIKIET - Sverdlovsk-44 - Sverdlovsk-45
Krasnoyarsk- 26 Krasnoyarsk-45
Kazakhstan
Novosibirsk
Semipalatinsk
Tashkent
Ulba
Almaty
Uzbekistan
Vladivostock
Pacific Fleet
U.S. Department of Energy Lawrence
Livermore National Laboratory