# Presentation: 116368

## GLOBALIZATION

**2000 DOE CONTRACTORS  PURCHASING MANAGERS’ **
**SYMPOSIUM & WORKSHOP**

**GLOBALIZATION**

**BUYING IN THE INTERNATIONAL MARKET PLACE**

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

## 
DOE PROGRAMS

PROGRAM DESCRIPTION

PROBLEMS/LESSONS LEARNED

- DOE PROGRAMS
- PROGRAM DESCRIPTION
- PROBLEMS/LESSONS LEARNED

**Brookhaven Science Associates****U.S. Department of Energy**

## DOE PROGRAMS

-	Initiatives for Proliferation Prevention (IPP)

-	Material Protection, Control and Accounting Program (MPC&A)

-	International Nuclear Safety Program (INSP)

**-****	****Initiatives for Proliferation Prevention (IPP)**
**-****	****Material Protection, Control and Accounting Program (MPC&A)**
**-****	****International Nuclear**** Safety Program (INSP)**

**Brookhaven Science Associates****U.S. Department of Energy**

##  DOE PROGRAMS

-	Russian Lab-to-Lab Warhead 	Dismantlement Transparency Program (DTP)

-	Nuclear Cities Initiative Program (NCIP)

-	Second Line of Defense Program (SLD)

- -	Russian Lab-to-Lab Warhead 	Dismantlement Transparency Program (DTP)
- -	Nuclear Cities Initiative Program (NCIP)
- -	Second Line of Defense Program (SLD)

**Brookhaven Science Associates****U.S. Department of Energy**

##  DOE PROGRAMS 

-	Management of Plutonium No Longer Required for Defense Purposes 	

-	National Ignition Facility

-  Open Computer Center (OCC)		

- -	Management of Plutonium No Longer Required for Defense Purposes
- -	National Ignition Facility
- -  Open Computer Center (OCC)

**Brookhaven Science Associates****U.S. Department of Energy**

## 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 Associates****U.S. Department of Energy**

## 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 Associates****U.S. Department of Energy**

## Material Protection, Control and Accounting (MPC&A)

- 	The Mission of the MPC&A 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 Associates****U.S. Department of Energy**

##  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**

## 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**

**NUCLEAR CITIES INITIATIVE PROGRAM**** (NCIP)**

- Create meaningful and sustainable jobs to aid MINATOM’s downsizing by promoting and developing commercial applications of technologies at former Russian Nuclear Facilities

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

## 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**

## 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**

##  National Ignition Facility (NIF) 	

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

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

## 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**

## PROBLEMS/LESSONS LEARNED

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

## TAXES

- Dave Robertson

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

## FOREIGN:  Source of Revenue

			versus

 U.S.:  DOE Programs Face a Congressional 
		Requirement NOT to Pay Taxes on the
	        Assistance Provided

- 			versus
-  U.S.:  DOE Programs Face a Congressional
- 		Requirement NOT to Pay Taxes on the
- 	        Assistance Provided

**PROBLEM**

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

## RUSSIAN TAX BITE

- 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
- Local Taxes and Fees

- 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.

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

## DOE PROGRAM FUNDING

**Pacific Northwest National Laboratory**

**DOE PROGRAM FUNDING**
**RUSSIAN INSTITUTE**
**OR VENDOR**
**RUSSIAN TAX AUTHORITY**

## Registration and Certification 

**Gratuitous Aid/Assistance**
**Registration and Certification**** **

**RESOLUTION**

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

## Programs Approved for Registration by the Commission for Technical Assistance (CITA) on February 3, 2000

- Registration No.	Program
- DOE 001000	MPC&A 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**

## EXPORT CONTROL AND COMPLIANCE

- Dave Robertson

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

## DEPARTMENT OF ENERGY PROGRAMS

**           ****NATIONAL LABORATORIES          **

**EXPORT COMPLIANCE**

- DTP   IPP  INSP  MPC&A  NCI  SLD

- ANL   BNL  LANL  LLNL  ORNL  PNNL  SNL

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

## 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**

## Contracts and Procurements 

**Are Vehicles That Cause**
**Exports to Occur**

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

## Regulations Are Based on

The Atomic Energy Act of 1954

Arms Export Control Act

Nuclear Nonproliferation Act

The Export Administration Act

- 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**

## 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**

## BIG QUESTION

Is an Export License Required?

- Is an Export License Required?

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

## 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**

## 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**

## Whom Do You Ask?

EXPORT CONTROL MANAGER

- EXPORT CONTROL MANAGER

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

## ICL #5000005

- Granted to DOE-MPC&A 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**

## STATEMENT OF WORKDELIVERABLESINVOICES 

- Dave Herr

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

## 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**

## DELIVERABLES

- Acceptable
- Timely
- Lessons Learned

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

## INVOICES

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

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

## Sites involved in the MPC&A program  

**Ukraine**

**Kazakhstan**

**Russia**

**Belarus**

- Arzamas-16*/*Avangard

- Chelyabinsk-70*/*Mayak

- Dimitrovgrad

- - Obninsk
- - Karpov

- Podolsk

- Kharkiv

- Kiev

- Sosny

**Lithuania**

**Latvia**

- Tomsk-7
- TPU

- Moscow Area
- - Bochvar	     			-  RDIPE
- - Eleron (Transportation)	- Automatics
- - MEPhI				- Lytkarino
- - Moscow ITEP			- Kurchatov
- - Elektrostal				- Luch

- St. Petersburg Area
- - PNPI                     -Khlopin
- - Krylov
- - St. Petersburg Central Design Bureau
- - Baltiysky Zavod

- Norilsk

- Sevastopol

- - BNPP
- - SF-NIKIET
- - Sverdlovsk-44
- - Sverdlovsk-45

- Novosibirsk

- Krasnoyarsk- 26
- Krasnoyarsk-45

**Aktau**

**Tashkent **

**Almaty**

- Salispals

**Uzbekistan**

- Dubna

**Georgia**

- Tbilisi

**Semipalatinsk**

- Pacific Fleet

**Ulba**

- South Ukraine
- NPP

- Ignalina

- - Northern Fleet
- - Icebreaker Fleet

- Penza-19

- Zlatoust-36*/Trekhgornyy*

- Murmansk

- Vladivostock

- Severodvinsk

** **

**Sites involved in the MPC&A program  **

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