TREATIES AND OTHER INTERNATIONAL ACTS SERIES 04-212 

________________________________________________________________________ 

DEFENSE 

Cooperation 

 Memorandum of Understanding between the 

UNITED STATES OF AMERICA 

and the NETHERLANDS 

Signed at The Hague and Washington 

January 26 and February 12, 2004 

 

 with 

 Annexes 
 NOTE BY THE DEPARTMENT OF STATE 

 Pursuant to Public Law 89—497, approved July 8, 1966 

(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued 

under the authority of the Secretary of State shall be competent 

 evidence . . . of the treaties, international agreements other than 

treaties, and proclamations by the President of such treaties and 

international agreements other than treaties, as the case may be, 

therein contained, in all the courts of law and equity and of maritime 

jurisdiction, and in all the tribunals and public offices of the 

United States, and of the several States, without any further proof 

or authentication thereof.” 
 NETHERLANDS 

 Defense: Cooperation 

 Memorandum of understanding signed 

 at The Hague and Washington 

 January 26 and February 12, 2004; 

 Entered into force February 12, 2004. 

 With annexes. 
MEMORANDUM OF UNDERSTANDING

BETWEEN

THE DEPARTMENT OF DEFENSE

OF THE UNITED STATES OF AMERICA

AND

THE MINISTER OF DEFENCE OF THE

KINGDOM OF THE NETHERLANDS

FOR

TEST AND EVALUATION PROGRAM (TEP) COOPERATION

(SHORT TITLE: TEP MOU)

DATE:
TABLE OF CONTENTS

INTRODUCTION 4

SECTION I

DEFINITIONS AND ABBREVIATIONS 5

SECTION II

OBJECTIVES 10

SECTION HI

SCOPE OF WORK 11

SECTION IV

MANAGEMENT (ORGANIZATION AND RESPONSIBILITY) 14

SECTION V

FINANCIAL PROVISIONS 18

SECTION VI

CONTRACTING PROVISIONS 22

SECTION VII

PROJECT EQUIPMENT TRANSFERS 2 4

SECTION VIII

DISCLOSURE AND USE OF PROJECT INFORMATION 27

SECTION IX

CONTROL LED UNCLASSIFIED INFORMATION 33

SECTION X

VISITS TO ESTABLISHMENTS 3 4

SECTION XI

SECURITY 3 5

SECTION XII

THIRD PARTY SALES AND TRANSFERS 3 8

SECTION

LIABILITY, CLAIMS AND STATUS OF PERSONNEL 4 0

SECTION XIV

CUSTOMS DUTIES AND SIMILAR CHARGES 41

SECTION XV

SETTLEMENT OF DISPUTES 42

SECTION XVI

GENERAL PROVISIONS 43

SECTION XVII

AMENDMENT, TERMINATION, EFFECTIVE DATE, AND DURATION 44

ANNEX A

MODEL RECIPROCAL USE OF TEST FACILITIES (RUTF) PROJECT ARRANGEMENT

(PA) A-1

APPENDIX 1 - U.S. DOD COST ESTIMATE MODEL A-9

APPENDIX 2 - NL MOD COST ESTIMATE MODEL A-10

APPENDIX 3 -- INVENTORY OF PROJECT EQUIPMENT TRANSFERS A-11

2
ANNEX B

MODEL COOPERATIVE TEST & EVALUATION (CTE) PROJECT ARRANGEMENT

(PA) B-1

APPENDIX 1 - COOPERATIVE PROJECT PERSONNEL (CPP) B-11

APPENDIX 2 - INVENTORY OF PROJECT EQUIPMENT TRANSFERS B -15

ANNEX C

MODEL PROJECT EQUIPMENT TRANSFER (PET) FORM C -1

3
INTRODUCTION

The Department of Defense of the United States of America (U.S. DoD) and the Minister of

Defence of the Kingdom of The Netherlands (NL MOD), hereinafter referred to as the

"Participants":

Having a common interest in defense;

Recognizing the benefits to be obtained from standardization, rationalization, and

interoperability of military equipment;

Desiring to improve their mutual conventional defense capabilities through the

application of emerging technology;

Having a mutual need to engage in a broad range of cooperative or reciprocal Test and

Evaluation (T&E) Activities to satisfy common operational requirements;

Having independently conducted testing of the applications of various technologies, and

having recognized the benefits of cooperation in the T&E arena;

Have reached the following understandings:

4
SECTION I

DEFINITIONS AND ABBREVIATIONS

The Participants have jointly decided upon the following definitions for terms used in this MOU:

Computer Data Base

Computer Program

Computer Software

Computer Software

Documentation

Contract

Approval-In-Principle

The costs incurred by a T&E facility in performing the T&E

activity.

Classification Guide

Official information that requires protection in the interests of

national security and is so designated by the application of a

security classification marking. This information may be in oral,

visual, magnetic or documentary form or in the form of equipment

or technology.

A collection of data recorded in a form capable of being processed

by a computer. This definition does not include Computer

Software.

A set of instructions, rules, or routines recorded in a form that is

capable of causing a computer to perform a specific operation or

series of operations.

Computer Programs, source code, source code listings, design

details, algorithms, processes, flow charts, formulae, and related

materials that would enable the software to be reproduced,

recreated, or recompiled. Computer Software does not include

Computer Data Bases or Computer Software Documentation.

Owner's manuals, user's manuals, installation instructions,

operating instructions, and other similar items, regardless of

storage medium, that explain the capabilities of the Computer

Software or provide instructions for using the Computer Software.

Any mutually binding legal relationship under national laws which

obligates a Contractor to furnish supplies or services, and obligates

one or both of the Participants to pay for them.

AT

Actual Cost

(applies only to NL MoD)

CG

Classified Information

Contracting The obtaining of supplies or services by Contract from sources

outside the government organizations of the Participants.

5
Contracting includes description (but not determination) of

supplies and services required, solicitation and selection of

sources, preparation and award of Contracts, and all phases of

Contract administration.

Contracting Agency

Contracting Officer

Contractor

Controlled Unclassified

Information

Cooperative Project

Personnel (CPP)

The entity within the government organization of a Participant,

which has authority to enter into, administer, or terminate

Contracts..

A person representing a Contracting Agency of a Participant who

has the authority to enter into, administer, or terminate Contracts.

Any entity awarded a Contract by a Participant's Contracting

Agency.

Unclassified information to which access or distribution

limitations have been applied in accordance with applicable

national laws or regulations. Whether the information is provided

or generated under this MOU, the information will be marked to

identify its "in confidence" nature. It could include information

that has been declassified, but remains controlled.

Military members or civilian employees of a Participant assigned

under a specific Project Arrangement (PA) who perform

managerial, engineering, technical, administrative, Contracting,

logistics, financial, planning or other functions in furtherance of a

Cooperative Test and Evaluation PA.

An implementing arrangement, under this MOU that specifies the

provisions for cooperation on a specific TEP Activity.

The Participant on whose behalf a test effort is conducted at a Test

Facility of the Performing Participant.

Manufacture or other use in any part of the world by or for the

armed forces of either Participant.

The security office approved by national authorities to be

responsible for the security aspects of this MOU.

Any item of cost that is easily and readily identified to a specific

unit of work or output within the Test Facility where the use

occurred, that would not have been incurred if such use had not

Cooperative Test &

Evaluation (CTE) Project

Arrangement (PA)

Customer Participant

Defense Purposes

Designated Security

Authority (DSA)

Direct Cost

(only applies to U.S. DoD)

6
occurred; may include costs of labor, materials, facilities, utilities,

equipment, supplies, and any other resources of the Test Facility

that are consumed or damaged in connection with the use or the

maintenance of the Test Facility for the purposes of the use.

Financial Costs

Indirect Cost

(only applies to U.S. DoD)

PA

Parent Participant

Patent

Performing Participant

Any costs that, due to their nature, will be paid using monetary

contributions from the Participants.

Financial Management Procedures Document

The Participant to which Cooperative Project Personnel (CPP) are

assigned for duty pursuant to a CTE PA.

Any item of cost that is not easily and readily identified to a

specific unit of work or output within the Test Facility where the

use occurred; may include general and administrative expenses for

such activities as supporting base operations, manufacturing,

supervision, procurement of office supplies, and utilities that are

accumulated costs allocated among several users.

Information jointly generated by the Participants in the

performance of a TEP Activity.

Any costs that, due to their nature, will be met using non-monetary

contributions from the Participants.

Project Arrangement

The Participant to which CPP belong.

Legal protection of the right to exclude others from making, using,

or selling an invention. The term refers to any and all Patents

including, but not limited to, Patents of implementation,

improvement or addition, petty Patents, utility models, appearance

design Patents, registered designs, and inventor certificates or like

statutory protection as well as divisions, reissues, continuations,

renewals, and extensions of any of these.

The Participant conducting a test effort at its Test Facilities on

behalf of the Customer Participant.

Project Equipment Transfer

The special rate some non-governmental T&E facilities in the

7

FMPD

Host Participant

Jointly Generated

Foreground Information

Non-financial Costs

PET

Preferred Rate
Netherlands charge the NL MoD for T&E services, which is less

than the rate charged to commercial customers.

(applies only to NL MoD)

Project Invention

TEP Project Arrangement

Information not generated in the performance of a TEP Activity.

Any test articles, material, equipment, end item, subsystem,

component, special tooling or test equipment jointly acquired or

provided for use in a TEP PA or a Project Equipment Transfer.

Information generated in the performance of a TEP Activity.

Any information provided to, generated in, or used in a TEP

Activity under this MOU regardless of form or type and whether

or not subject to copyright, Patent or other legal protection.

Any invention or discovery formulated or made (conceived or

"first actually reduced to practice") in the course of work

performed under a PA. The term "first actually reduced to

practice" means the first demonstration, sufficient to establish to

one skilled in the art to which the invention pertains, of the

operability of an invention for its intended purpose and in its

intended environment.

Project Security Instruction

An implementing arrangement under this MOU that specifies the

cost, schedule and performance aspects of a test effort conducted

by the Performing Participant's test facility for the Customer

Participant.

The Test & Evaluation Program.

Any activity in support of information exchange, Working

Groups, Project Arrangements and Project Equipment Transfers

(PETs), as specified in Section III (Scope of Work) of this MOU.

An implementing arrangement under this MOU that can be either

a Reciprocal Use of Test Facilities (RUTF) PA or a Cooperative

Test & Evaluation (CTE) PA.

Project Background

Information

Project Equipment

Project Foreground

Information

Project Information

PSI

Reciprocal Use of Test

Facilities (RUTF) PA

TEP

TEP Activity

Test and Evaluation (T&E) The overall process of data taking, data reduction and the analysis

of that data for a specific purpose or application.

8
Test Facility

Third Party

TOR

Range or other facility at which testing of defense equipment may

be accomplished.

Any person or other entity whose government or entity thereof is

not a Participant.

Terms of reference

Working Group (WG) Any group authorized to conduct TEP-related T&E activities by

the Management Agents (MAs), in accordance with Section III

(Scope of Work) and Section IV (Management.)

9
SECTION II

OBJECTIVES

2.1 This MOU establishes a comprehensive framework for implementing a program of

cooperation on mutually determined topics related to defense Test & Evaluation (T&E). Specific

objectives of this MOU are:

2.1.1 to share test resources through reciprocal and cooperative use of Test Facilities,

ranges, and other test capabilities and testing tools;

2.1.2 to provide for the conduct of cooperative test and evaluation of systems of shared

interest;

2.1.3 to conduct joint T&E-related tests and experiments to advance test technologies

and procedures;

2.1.4 to conduct cooperative development of test capabilities, test procedures and

methods, and test standards and criteria;

2.1.5 to exchange testing related information such as test capability specifications, test

criteria, standards, procedures, lessons learned and certain test data;

2.1.6 to provide for the transfer of test technologies and procedures; and

2.1.7 to maximize the effective utilization of each Participant's Test Facilities.

2.2 The Participants intend to use their best efforts to accommodate testing requirements of

the other Participant. However, each Participant has the right to refuse to conduct a proposed

TEP Activity in its country if, for example, it determines that the proposed TEP Activity:

2.2.1 does not fall within its national security interests;

2.2.2 is not permitted by international treaties or protocols to which either Participant's

Government is a party;

2.2.3 cannot be accommodated within the test program resources of the Performing

Participant;

2.2.4 cannot be conducted within constraints set by any national, state or local

environmental laws or ordinances; or

2.2.5 would pose an unacceptable risk to life or property.

10
SECTION III

SCOPE OF WORK

3.1 The scope of work for this MOU will include the following TEP Activities:

3.1.1 accommodation of testing requirements on a customer-reimbursable basis under

the provisions of a Reciprocal Use of Test Facilities Project Arrangement (RUTF PA).

This may include access to, or transfer of, test instrumentation and other testing tools.

This may also include the conduct of joint tests where both Participants have an interest;

3.1.2 conduct of cooperative T&E on systems of shared interest;

3.1.3 conduct of joint tests and experiments to advance the state of the art of test

technology;

3.1.4 cooperative development of new or existing test instrumentation, equipment,

facilities, and other testing tools;

3.1.5 cooperative development of testing criteria, standards and procedures;

3.1.6 exchange of information on T&E policy, testing criteria, standards and procedures

and other test-related or test-derived information including, but not limited to, doctrine,

tactics and operational requirements related to TEP;

3.1.7 transfer of test technologies and procedures;

3.1.8 familiarization with each other's facilities and identification of potential

cooperative T&E opportunities; and

3.1.9 assignment of personnel between the Participants to facilitate development of test

capabilities and to assist with the conduct of T&E efforts.

3.2 The following mechanisms may be utilized to undertake the TEP Activities described in

paragraph 3.1:

3.2.1 Information Exchange: 

3.2.1.1 Information exchange will take place on an equitable basis in all areas

concerning TEP. This MOU permits the exchange of Computer Data Bases,

Computer Software and Computer Software Documentation as information. This

MOU permits the exchange of information for any purpose under the scope of this

MOU, including harmonizing the Participants' respective TEP requirements and

11
for formulating, developing, and negotiating any TEP Activity. Information

exchange need not necessarily coincide in time, technical field, or in the form of

information.

3.2.1.2 Computer Data Bases, Computer Software or Computer Software

Documentation associated with TEP Activities may be transferred under this

MOU in accordance with national procedures, subject to the following

limitations:

3.2.1.2.1 such transfers must be necessary or useful to the conduct of the

TEP Activity as determined by the providing Participant; and

3.2.1.2.2 such transfers may occur only where national authority for such

release has been obtained by the providing Participant. Such release may

be subject to restrictions on use imposed by the providing Participant. The

providing Participant will notify the other Participant if such restrictions

are applicable as soon as practicable.

3.2.2 Working Groups (WGs): 

3.2.2.1 WGs may be established to explore, study, and report on specific T&E

issues. A WG will be limited in scope to a single, well-defined area and will

endeavor to assess the T&E issue based on information provided by both

Participants in such a way as to arrive at a mutually determined position within a

set time limit. Each WG will have its own written terms of reference (TORs).

3.2.3 TEP Project Arrangements (PAs): 

3.2.3.1 Reciprocal Use of Test Facilities (RUTF) PA: This type of PA will

include specific provisions, consistent with this MOU and the model at

Annex A, that specify the Performing and Customer Participants'

responsibilities concerning the objectives, scope of work, estimated test

schedule, management structure, financial provisions, Project Equipment

Transfers (PETs) (if required), special disclosure and use of information

provisions (optional), security classification for the PA and other special

provisions as required. An Approval-In-Principle (ATP) will be required

prior to negotiating a RUTF PA.

3.2.3.2 Cooperative T&E (CTE) PA: This type of PA will include specific

provisions, consistent with this MOU and the model at Annex B,

concerning the objectives, scope of work, sharing of work, management

structure, financial provisions (if required), contractual provisions (if

required), PETs (if required), special disclosure and use of information

12
provisions (optional), security classification for the applicable PA and

other special provisions as required.

3.2.3.3 The Participants recognize that there may be instances where a project

contains elements including cooperative effort as well as the reciprocal use of

Test Facilities. Such projects will be treated as cooperative projects. Equitability

will be required in all such projects.

3.2.4 Project Equipment Transfer: 

3.2.4.1 The Participants recognize that it may be necessary to transfer Project

Equipment for the purpose of implementing this MOU, but not for the purposes of

a specific TEP PA. In such cases, the Participants may conclude PETs consistent

with the model at Annex C.

3.2.5 Familiarization Visits: 

3.2.5.1 Familiarization visits may occur in accordance with Section X (Visits to

Establishments) to promote awareness of each other's facilities and to identify

potential cooperative T&E opportunities.

3.3 Acquisition or production programs that may evolve from cooperation under one or more

PAs under this MOU are outside the scope of this MOU and require conclusion of separate

arrangements.

13
SECTION IV

MANAGEMENT (ORGANIZATION AND RESPONSIBILITY)

4.1 The Director, Operational Test & Evaluation (DOT&E), Office of the Secretary of

Defense (or his/her successor in the event of reorganization) is designated U.S. MOU Director

(U.S. MD). The Principal Director for Materiel (or his/her successor in the event of

reorganization) is designated the NL MOU Director (NL MD). The MDs will be responsible for:

4.1.1 monitoring implementation of this MOU and exercising executive-level oversight;

4.1.2 monitoring the overall use and effectiveness of the MOU;

4.1.3 recommending amendments to this MOU to the Participants;

4.1.4 resolving issues brought forth by the Management Agents; and

4.1.5 approving PAs pursuant to paragraph 3.2.3 and the Participant's respective

national procedures.

4.2 The Deputy Director of Systems and Test Resources (DOT&E/S&TR) (or his/her

successor in the event of reorganization or his/her designee), is designated U.S. Management

Agent (U.S. MA). The Director for Research and Development (or his/her successor in the event

of reorganization) is designated the NL Management Agent (NL MA). The MAs will be

responsible for:

4.2.1 monitoring and evaluating the work conducted under each TEP Activity and

providing guidance and direction as necessary;

4.2.2 designating points of contact (POCs) and exercising overall supervision for

information exchanges pursuant to paragraph 3.2.1;

4.2.3 approving the formation of WGs and their TORs pursuant to paragraph 3.2.2;

4.2.4 granting approval-in-principle (AIP) for RUTF PAs;

4.2.5 developing PAs pursuant to paragraph 3.2.3 and recommending approval of such

PAs to the MDs;

4.2.6 establishing a Steering Committee (SC), when considered necessary, to monitor

conduct of a CTE PA and exercising overall supervision over the SC members, if

established, a Joint Project Office (JPO), if established, or Project Officers (POs) (if no

SC or JPO is established);

14
4.2.7 obtaining Designated Security Authority (DSA) approval for Project Security

Instructions and Classification Guides for CTE PAs that contain provisions for the

generation or exchange of Classified Information;

4.2.8 developing and entering into PETs pursuant to paragraph 3.2.4;

4.2.9 approving familiarization visits pursuant to paragraph 3.2.5;

4.2.10 monitoring Third Party Sales and Transfers authorized in accordance with Section

XII (Third Party Sales and Transfers)

4.2.11 approving a Financial Management Procedures Document (FMPD) pursuant to

paragraph 5.5, in the absence of an SC; and

4.2.12 forwarding, when necessary, issues to the MDs for resolution.

4.3 Each WG established by the MAs under this MOU and within the provisions of the

written TOR for the WG, will be responsible for:

4.3.1 submitting a proposed TOR to the MAs for approval;

4.3.2 conducting its assigned tasks and providing periodic progress reports to the

MAs, including requesting further guidance as necessary; and

4.3.3 submitting final reports to the MAs for submission to the MDs.

4.4 If an SC is established under a particular PA, it will be responsible for:

4.4.1 providing policy and management direction to the POs during PA execution;

4.4.2 monitoring overall implementation, including technical, cost, and schedule

performance against requirements;

4.4.3 approving plans for transfers of Project Equipment or disposal of jointly acquired

Project Equipment, in accordance with Section VII;

4.4.4 resolving issues brought forth by the POs;

4.4.5 maintaining oversight of the security aspects of a project, including preparing a

Project Security Instruction and a Classification Guide in the event that a CTE PA

contains provisions for the generation or exchange of Classified Information;

15
4.4.6 approving assignment of personnel working on a project at the other Participant's

facilities in accordance with the provisions set out in Appendix 1 to Annex B;

4.4.7 establishing and approving the detailed financial procedures of a CTE PA through

an FMPD in the event that one Participant contracts on behalf of the other Participant or

on behalf of both Participants; and

4.4.8 reporting status and activity of assigned PAs on an annual basis to the MAs and

MDs.

4.5 In accordance with the terms of any TEP PA, the POs will have primary responsibility for

effective implementation, efficient management and direction of their assigned PA including

technical, cost, and schedule performance against requirements. Additionally, the POs will have

the responsibilities under paragraph 4.4 if no SC is established for their CTE PA, except that the

MAs will be responsible for approving the FMPD and resolving issues brought forth by the POs.

The POs will also maintain a list of all PET Equipment transferred by either of the Participants

under a TEP PA.

4.6 In accordance with the terms of an approved CTE PA, with the provisions set out in

Appendix 1 to Annex B of this MOU attached to the approved CTE PA, a Participant may assign

Cooperative Project Personnel (CPP) to the JPO, or to the other Participant's facilities to assist in

the implementation of an approved PA.

4.7 Special Procedures for RUTF PAs. The following special procedures will apply to RUTF

PAs:

4.7.1 The Customer Participant's MA will submit a project proposal to the Performing

Participant's MA. The project proposal will briefly describe the test effort requested.

4.7.2 The Performing Participant's Test Facility will review the project proposal to

determine if it is able and willing to provide the requested test effort.

4.7.3 If the Performing Participant's MA determines that performing the requested test

effort is feasible, he or she will notify the Customer Participant's MA of AIP. AIP does

not constitute a commitment to perform the test effort, but provides authority for the

Participants to proceed with development and approval of the RUTF PA. If AIP is not

granted, the Performing Participant's MA will notify the Customer Participant's MA as

soon as possible.

4.7.4 Each Participant's MA will submit a 12-month forecast of proposed tests to the

other Participant's MA for AIP in accordance with a mutually determined schedule. Outof-cycle project proposals may also be submitted for AIP.

16
4.8 The MAs, SCs, and/or POs will consult or meet as required, but at least annually. The

Chairperson for each meeting will be the senior official of the host Participant. During such

meetings, all decisions will be made unanimously with each Participant having one vote. In the

event that the Participants are unable to reach a timely decision on an issue, each Participant will

refer the issue to its higher authority for resolution. In the meantime, approved PAs will

continue to be implemented without interruption under the direction of the SC and/or POs while

the issue is being resolved by higher authority.

17
SECTION V

FINANCIAL PROVISIONS

5.1 This MOU creates no financial commitments regarding individual RUTF or CTE PAs.

Detailed descriptions of the financial provisions for a specific project, including the total cost of

the project and each Participant's cost share, will be contained in the specific RUTF or CTE PA.

5.2 For RUTF PAs, charges between Participants will be mutually determined on a case-bycase basis and specified in the PA.

5.2.1 For the U.S. DoD, charges will consist of Direct Costs and applicable Indirect

Costs. Direct Costs, except for the cost of military personnel chargeable to the Customer

Participant, will not be greater than what one component of the Performing Participant

would charge to another component of the Performing Participant for the type and scope

of the services provided. If required, Indirect Costs may also be charged depending on

the nature and specifics of the effort. Indirect Costs charged to the Customer Participant

will be only those required by the Performing Participant's laws and regulations.

5.2.2 For the NL MoD, T&E services provided by government facilities will be

provided on an Actual Cost basis. T&E services provided by non-governmental

facilities will be provided by the NL MoD only when the NL MoD has established a

Preferred Rate.

5.2.3 The methods used for determining charges for T&E services by the U.S. DoD and

NL MoD are deemed to be substantially equivalent.

5.3 For CTE PAs, each Participant will contribute its equitable share of the full Financial and

Non-Financial Costs, including overhead costs, administrative costs and cost of claims, and will

receive an equitable share of the results of each CTE PA as mutually determined.

5.4 The financial and non-financial provisions for a CTE PA, including the total cost of the

CTE PA and each Participant's share of the total cost, will be included in the CTE PA.

5.5 For each CTE PA, the POs will be responsible for establishing the detailed financial

management procedures under which the project will operate. Where necessary, these

procedures will be detailed in an FMPD proposed by the POs, and subject to the approval of the

MAs or SC, if one is established.

5.6 Each Participant will perform, or have performed, its tasks and will use its best efforts to

perform the tasks within the cost estimates specified in each PA. Each Participant will bear the

full costs it incurs for performing, managing, and administering its own activities under this

18
MOU and participation in each PA, including its share of the costs of any Contracts awarded

pursuant to paragraph 5.13.

5.7 The following costs will be borne entirely by the Participant incurring the costs or on

whose behalf the costs are incurred:

5.7.1 costs associated with any unique national requirements identified by a Participant;

5.7.2 any other costs not expressly stated as shared costs or any other costs outside the

scope of this MOU and its PAs.

5.8 For CTE PAs with shared costs that involve the establishment of a JPO with CPP

assignments to the other Participant's facilities or the JPO, the CTE PA will address the financial

and non-financial contributions required for JP() administration and associated support services

including, but not limited to, JPO costs of travel incurred in support of project efforts, JP()

training costs, Contract award, Contract administration, office space, security services,

information technology services, communications services, and supplies.

5.9 In addition to the shared costs of JPO administration and associated support services

costs described in paragraph 5.8, the cost of CPP in the JPO or assigned to the other Participant's

facilities will be borne as follows:

5.9.1 The Host Participant will bear the costs of all pay and allowances of Host

Participant personnel in the JPO;

5.9.2 The Parent Participant will bear the following CPP-related costs:

5.9.2.1 all pay and allowances;

5.9.2.2 transportation of the CPP, the CPP's dependents, and their personal

property to the place of assignment in the Host Participant's nation prior to the

CPP's commencement of a tour of duty in the JPO or field activity, and return

transportation of the foregoing from the place of assignment in the Host

Participant's nation upon completion or termination of the tour of duty;

5.9.2.3 compensation for loss of, or damage to, the personal property of CPP or

the CPP's dependents, subject to the Parent Participant's laws and regulations;

5.9.2.4 preparation and shipment of remains and funeral expenses in the

event of the death of the CPP or the CPP's dependents; and

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5.9.2.5 all temporary duty costs, including travel costs, when such duty is carried

out pursuant to a unique requirement of the Parent Participant.

5.10 For CTE PAs that do not involve the establishment of a JPO, but do involve the

assignment of one Participant's CPP to the facilities of the other Participant, the Participants will

bear the costs as set forth in paragraph 5.9. The Host Participant will also be responsible for the

following:

5.10.1 All temporary duty costs, including travel costs in connection with the

performance of any duty carried out in support of a CTE PA or pursuant to a requirement of

the Host Participant.

5.10.2 Costs incurred as a result of a change in location in work ordered by the Host

Participant during the period of exchange.

5.10.3 Administrative and support costs such as CPP-related training, office space,

security services, information technology services, communication services, supplies, and

use of facilities and equipment necessary for the performance of tasks assigned to CPP.

5.11 For PETs concluded pursuant to Annex C in which operator personnel from the providing

Participant are required, the responsibility for bearing all costs associated with such personnel,

including but not limited to salaries and overhead, transportation, and subsistence, will be

specified in the PET Form.

5.12 A Participant will promptly notify the other Participant if available funds will not be

adequate to fulfill its duties as mutually determined under any TEP PA, or if it appears that the

cost estimates in a PA will be exceeded. The Participants will immediately consult with a view

toward continuation on a modified basis.

5.13 For CTE PA's where a Participant contracts on behalf of the other Participant or on

behalf of both Participants, the POs or SC as appropriate, will be responsible for establishing the

detailed financial management procedures under which the PA will operate prior to the transfer

of funds between the Participants. The procedures, which will accord with the national

accounting and audit requirements of the Participants, will be detailed in an FMPD. Each

Participant will provide funds in the amounts and at the times set forth in the estimated schedule

for monetary contributions, as specified in the FMPD.

5.14 For CTE PAs, the Participants recognize that, in performing Contracting responsibilities

on behalf of the other Participant, it may become necessary for the Contracting Participant to

incur contractual or other duties for the benefit of the other Participant prior to the receipt of the

other Participant's funds. In such event, the other Participant will make such funds available in

such amounts and at such times as required by the Contract or other duty, and will pay its

equitable share, as mutually determined, of any damages and costs that may accrue from the

20
performance or Cancellation of the Contract or other duty in advance of the time such payments,

damages, or costs are due.

5.15 Each Participant will be responsible for the audit of its activities or its Contractors'

activities pursuant to a TEP PA. A Participant's audits will be in accordance with its own

national practices. For CTE PA efforts where funds are transferred between the Participants, the

receiving Participant will be responsible for the internal audit regarding administration of the

other Participant's funds in accordance with the receiving Participant's national practices. Audit

reports of such funds will be promptly made available by the receiving Participant to the other

Participant.

21
SECTION VI

CONTRACTING PROVISIONS

6.1 If either Participant determines that Contracting is necessary to fulfill its duties under the

scope of work of any TEP PA, that Participant will contract in accordance with its respective

national laws, regulations and procedures.

6.2 When one Participant contracts on its own behalf to perform a task under a PA, it will be

solely responsible for its own Contracting, and the other Participant will not be subject to any

liability arising from such Contracts without its prior written consent.

6.3 If the Participants determine that it is appropriate under a CTE PA that one Participant

contracts on behalf of the other Participant or for both Participants for tasks under that PA, the

Contracting Agency will contract in accordance with its national laws, regulations, and

procedures. In such cases, appropriate implementing provisions will be specified in the

particular PA. If necessary to meet the requirements of a PA, the U.S. DoD or the NL MoD

Contracting Agency as appropriate, will seek deviations from national regulations and

procedures wherever possible. Sources from both Participants' industries will be allowed to

compete on an equal basis for such Contracts. The U.S. DoD or the NL MoD Contracting

Agency, as appropriate, will be the exclusive source for providing contractual direction and

instructions to Contractors and prospective Contractors.

6.4 For all Contracting activities performed by either Participant, the POs will, upon request,

be provided a copy of all statements of work prior to the development of solicitations to ensure

that they are consistent with the provisions of this MOU and the applicable PA.

6.5 For all Contracting activities performed by either Participant, each Participant's

Contracting Agency will negotiate to obtain the rights to use and disclose Project Information

required by Section VIII (Disclosure and Use of Project Information). Each Participant's

Contracting Agency will insert into its prospective Contracts (and require its Contractors to

insert in subcontracts) suitable provisions to satisfy the requirements of this MOU and the

specific PA, including Section VIII (Disclosure and Use of Project Information), Section IX

(Controlled Unclassified Information), Section XI (Security), and Section XII (Third Party Sales

and Transfers). During the Contracting process, each Participant's Contracting Officer will

advise prospective Contractors of their duty to notify the Contracting Agency immediately if

they are subject to any license or agreement that will restrict that Participant's freedom to

disclose Project Information or permit its use. The Contracting Officer will also advise

prospective Contractors to employ their best efforts not to enter into any new agreement or

arrangement that will result in such restrictions.

6.6 In the event a Participant's Contracting Agency is unable to secure adequate rights to use

and disclose Project Information as required by Section VIII (Disclosure and Use of Project

Information), or is notified by Contractors or prospective Contractors of any restrictions on the

22
disclosure and use of Project Information, that Participant's PO will notify the other Participant's

PO of the restriction(s). The Participants will immediately consult, at the appropriate level, to

assess the consequences and determine the way ahead.

6.7 Each Participant's PO will promptly advise the other Participant's PO of any cost growth,

schedule delay, or performance problems of any Contractor for which its Contracting Agency is

responsible. If a Contract has been awarded on behalf of the other Participant or for both

Participants, the Participant whose Contracting Agency is responsible for the Contract will

consult with the other Participant before terminating the Contract.

23
SECTION VII

PROJECT EQUIPMENT TRANSFERS

7.1 For the purpose of carrying out a TEP PA, each Participant may transfer, without charge

to the other Participant, such Project Equipment identified as being necessary for implementing a

TEP PA. The TEP PA will provide specific details of any transfer of Project Equipment. Project

Equipment identified at the time of TEP PA signature will be detailed in the RUTF PA as set out

in Annex A (Model RUTF PA) or the CTE PA as set out in Annex B (Model CTE PA). Project

Equipment which cannot be identified at the time of PA signature will be documented, when

identified, in a list to be developed and maintained by the POs in the format at Annexes A and B,

Appendix 2, Inventory of Project Equipment Transfers (PETs). Approval for all PETs will be in

accordance with national procedures.

7.2 For PETs concluded pursuant to Annex C, each Participant may transfer, without charge

to the other Participant, Project Equipment, in accordance with the model at Annex C (PET

Form). Approval for all PETs will be in accordance with national procedures.

7.3 Project Equipment transferred will be used by the receiving Participant for the purposes

specified in the PA or PET Form only. Project Equipment will remain the property of the

providing Participant. In addition, the receiving Participant will maintain the Project Equipment

in good order, repair, and operable condition. Unless the providing Participant has consented

that the transferred Project Equipment may be expended or otherwise consumed without

reimbursement to the providing Participant, the receiving Participant will return the Project

Equipment to the providing Participant in as good condition as received, reasonable wear and

tear excepted, or return the Project Equipment and pay the cost to restore the Project Equipment

to such condition. If the Project Equipment is damaged beyond economical repair, the receiving

Participant will return the Project Equipment to the providing Participant (unless otherwise

specified in writing by the providing Participant) and pay the replacement value as computed

pursuant to the providing Participant's national laws, regulations, and procedures. If the Project

Equipment is lost or stolen while in the custody of the receiving Participant, the receiving

Participant will issue a certificate of loss to the providing Participant and pay the replacement

value as computed pursuant to the providing Participant's national laws, regulations, and

procedures. The providing and receiving Participants will specify that in no case will any

payment respecting damage or loss exceed the amount indicated in the applicable TEP PA or

PET Form.

7.4 The providing Participant will make every effort to ensure the Project Equipment is

furnished in a serviceable and usable condition according to its intended purpose. However, the

providing Participant makes no warranty or guarantee of fitness of the Project Equipment for a

particular purpose or use, and makes no commitment to alter, improve, or adapt the Project

Equipment, or any part thereof.

24
7.5 The providing Participant will transfer the Project Equipment for the approved period,

unless extended by written amendment or terminated by either Participant. The duration of the

transfer period will not exceed the effective period of the TEP PA or PET Form.

7.6 The providing Participant, at its expense, will deliver the Project Equipment to the

receiving Participant at the location mutually approved. Responsibility for Project Equipment

will pass from the providing Participant to the receiving Participant at time of receipt. Any

further transportation will be mutually determined by the Participants and specified in the TEP

PA or PET Form.

7.7 The providing Participant will furnish the receiving Participant such information as is

necessary to enable the Project Equipment to be used.

7.8 The receiving Participant will inspect and inventory the Project Equipment upon receipt.

The receiving Participant will also inspect and inventory the Project Equipment prior to its return

(unless the Project Equipment is to be expended or consumed).

7.9 Upon expiration or termination of the transfer period specified in the TEP PA or the PET

Form (taking into account any extension), the receiving Participant will return the Project

Equipment, at its expense, to the providing Participant at the location mutually determined.

Responsibility for the Project Equipment will pass from the receiving Participant to the

providing Participant at the time of its receipt. Any further transportation is the responsibility of

the providing Participant.

7.10 The receiving Participant will provide written notice of consumption or expenditure of

Project Equipment approved for such consumption or expenditure. In the event the intended

consumption or expenditure does not occur, the receiving Participant will, unless otherwise

determined by the providing Participant, return the Project Equipment, at its expense, to the

providing Participant to the location mutually determined. Any further transportation is the

responsibility of the providing Participant.

7.11 The Participants will ensure, by all reasonable means, the protection of intellectual

property rights in Project Equipment.

7.12 Each Participant waives all claims against the other Participant for damage to or loss of

jointly acquired Project Equipment arising from the performance of official duties. However, if

the Participants mutually decide to repair damaged jointly acquired Project Equipment in order

to complete PA efforts, the cost of such repair will be shared in a manner that results in sharing

the total costs of the PA in the proportions established for the Participants' contributions under

the PA. In any case, if the damage or loss is caused by reckless acts, reckless omission, willful

misconduct or gross negligence, the costs of any liability, including the cost of repairs, will be

borne by the responsible Participant.

25
7.13 Any Project Equipment that is jointly acquired on behalf of the Participants for use under

any TEP PA will be disposed of as mutually determined by the SC, or the MAs if an SC is not

established.

7.14 Disposal of jointly acquired Project Equipment may include a transfer of the interest of

one of the Participants in such Project Equipment to the other Participant, the sale or transfer of

such Project Equipment to a Third Party in accordance with Section XII (Third Party Sales and

Transfers), or sale or transfer to other entities. The Participants will share the consideration from

jointly acquired Project Equipment transferred or sold to a Third Party or other entity in the same

ratio as costs are shared in the CTE PA.

26
SECTION VIII

DISCLOSURE AND USE OF PROJECT INFORMATION

8.1 General

Both Participants recognize that successful cooperation depends on full and prompt exchange of

information necessary for carrying out each TEP Activity. The Participants intend to acquire

sufficient Project Information, and rights to use such information to promote the objectives of

this MOU. The nature and amount of Project Information to be acquired will be consistent with

Section II (Objectives), Section III (Scope of Work), Section VI (Contracting Provisions), and

the PAs and PET Forms under this MOU. Subject to the rights both Participants are accorded

under this MOU, title to Project Foreground Information generated by a Participant or its

Contractor will reside in that Participant and/or its Contractors, in accordance with that

Participant's national laws, regulations, and policies. Nothing in this MOU will affect title to

Project Background Information of the Participants or their Contractors.

Information Exchange and Working Groups

8.2 The disclosure and use provisions that govern exchange of information and WGs

authorized in Section III (Scope of Work), paragraphs 3.2.1 and 3.2.2 are as follows:

8.2.1 Disclosure: At its discretion, the furnishing Participant may disclose information

to the other Participant. Prior written permission from the furnishing Participant will be

required for further disclosure of the information by the receiving Participant to any other

entity, for example, a Contractor. Such permission will not be required in the case of

further disclosure to the receiving Participant's Contractor support personnel, who are

under a legally binding non-disclosure agreement.

8.2.2 Use: Use of information will be for information and evaluation purposes only.

Written permission from the furnishing Participant will be required for any other use.

RUTF PAs

8.3 Unless the Participants agree otherwise in writing, the following provisions will apply to

RUTF PAs:

8.3.1 The Customer Participant's use of information will be for Defense Purposes only.

Written permission from the Performing Participant will be required for any other use.

27
8.3.2 The Performing Participant's use of information will be for information and

evaluation purposes only. Written permission from the Customer Participant will be

required for any other use.

Other TEP Activities

8.4 Unless the Participants agree otherwise in writing, the following disclosure and use

provisions that govern other TEP Activities authorized in Section III (Scope of Work),

paragraphs 3.2.3 and 3.2.4, will apply.

8.5 Government Project Foreground Information:

8.5.1 Disclosure: Project Foreground Information generated by a Participant's military

or civilian employees will be disclosed without charge to the other Participant.

8.5.2 Use: Each Participant may further disclose, use or have used on its behalf

government Project Foreground Information without charge for its Defense Purposes

only. The furnishing Participant will retain all its rights with respect to such government

Project Foreground Information. The sale or other transfer of government Project

Foreground Information will be subject to the provisions of Section XII (Third Party

Sales and Transfers) of this MOU.

8.6 Contractor Project Foreground Information:

8.6.1 Disclosure: Contractor Project Foreground Information generated and delivered

by Contractors will be disclosed without charge to the other Participant.

8.6.2 Use: Each Participant may further disclose, use or have used on its behalf all

Contractor Project Foreground Information without charge for its Defense Purposes only.

The Participant whose Contractors generate and deliver Contractor Project Foreground

Information will also retain rights of use therein in accordance with the applicable

Contract(s). The sale or other transfer of Contractor Project Foreground Information will

be subject to the provisions of Section XII (Third Party Sales and Transfers) of this

MOU.

8.7 Government Project Background Information:

8.7.1 Disclosure: Each Participant, upon request, will disclose to the other Participant

any relevant government Project Background Information generated by its military or

civilian employees, provided that:

28
8.7.1.1 such government Project Background Information is necessary to, or

useful in the TEP Activity, with the furnishing Participant determining whether it

is "necessary to" or "useful in" the TEP Activity;

8.7.1.2 such government Project Background Information may be made available

without incurring liability to holders of proprietary rights; and

8.7.1.3 disclosure is consistent with national disclosure policies and regulations of

the disclosing Participant.

8.7.2 Use: A Participant may use or have used Government Project Background

Information disclosed by the other Participant without charge for conducting the TEP

Activity for which it was provided only. However, subject to proprietary rights held by

other than the Participants, government Project Background Information may be used for

Defense Purposes by the receiving Participant without charge when the use of such

government Project Background Information is necessary for the use of government

Project Foreground Information. The furnishing Participant (after consultation with the

receiving Participant) will determine whether such use of government Project

Background Information is necessary. The furnishing Participant will retain all its rights

with respect to such government Project Background Information.

8.8 Contractor Project Background Information:

8.8.1 Disclosure: Any relevant Contractor Project Background Information (including

information subject to proprietary rights) which is or has been generated outside of the

TEP Activity and delivered by Contractors of one of the Participants, will be disclosed to

the other Participant provided the following provisions are met:

8.8.1.1 such Contractor Project Background Information is necessary to, or useful

in the TEP Activity, with the furnishing Participant determining whether it is

"necessary to" or "useful in" the TEP Activity;

8.8.1.2 such Contractor Project Background Information may be made available

without incurring liability to holders of proprietary rights; and

8.8.1.3 disclosure is consistent with national disclosure policies and regulations of

the furnishing Participant.

8.8.2 Use: A Participant may use or have used Contractor Project Background

Information disclosed by the other Participant without charge to conduct the TEP

Activity for which it was provided only. Any other use will be in accordance with the

terms arranged with the Contractor, and may be the subject of further restrictions by

holders of proprietary rights. The furnishing Participant will retain all its rights with

respect to such Contractor Project Background Information.

29
8.9 Jointly Generated Foreground Information:

8.9.1 Disclosure: All Jointly Generated Foreground Information generated under a TEP

Activity will be disclosed to both Participants promptly and without charge.

8.9.2 Use: Each Participant generating or receiving Jointly Generated Foreground

Information may use or have used such information without charge only for its Defense

Purposes unless mutually determined otherwise in writing.

8.9.3 Information generated by WGs will be treated as Jointly Generated Foreground

Information unless mutually determined otherwise.

8.10 Alternative Uses of Project Information:

8.10.1 The prior written consent of each Participant's government will be required for

the use of Project Foreground Information for any purposes other than those provided for

in this MOU or any of its PAs.

8.10.2 Any Project Background Information provided by one Participant will be used by

the other Participant for the purposes set forth in this MOU only, unless otherwise

consented to in writing by the furnishing Participant's government.

8.11 Project Information Subject to Proprietary Rights:

8.11.1 All unclassified Project Information subject to proprietary rights will be

identified, marked and handled as Controlled Unclassified Information in accordance

with Section IX (Controlled Unclassified Information). All classified Project Information

subject to proprietary rights will be identified, marked and handled in accordance with

Section IX (Controlled Unclassified Information) and Section XI (Security).

8.12 Patents

8.12.1 Each Participant will include in its Contracts a provision governing the

disposition of rights in regard to Project Inventions and Patent rights relating thereto,

which either:

8.12.1.1 Provides that the Participant will hold title to all Project Inventions

together with the right to make Patent applications for the same, free of

encumbrance from the Contractor; or

8.12.1.2 Provides that the Contractor will hold title (or may elect to retain

title) for Project Inventions together with the right to make Patent applications for

the same, while securing for the Participant a license for the Project Inventions,

30
and any Patents therefore, on terms in compliance with the provisions of

paragraph 8.12.2 below.

8.12.2 In the event that a Contractor holds title (or elects to retain title) for a Project

Invention, the contracting Participant will secure for both Participants non-exclusive,

irrevocable, royalty-free licenses under all Patents secured for that invention, to practice or

have practiced the patented Project Invention for Defense Purposes throughout the world.

8.12.3 The provisions of sub-paragraphs 8.12.4 through 8.12.8 below will apply in

regard to Patent rights for all Project Inventions made by any Participant's military or

civilian employees, including those within Government-owned facilities, and for all Project

Inventions made by Contractors for which the contracting Participant holds title or is

entitled to acquire title.

8.12.4 Where a Participant owns title to a Project Invention, or has the right to receive

title to a Project Invention, that Participant will consult with the other Participant regarding

the filing of a Patent application for such Project Invention. The Participant that has or .

receives title to such Project Invention will, in other countries, file, cause to be filed, or

provide the other Participant with the opportunity to file on behalf of the Participant

holding title, or its Contractors, as appropriate, Patent applications covering that Project

Invention. If a Participant having filed or caused to be filed a Patent application decides to

stop prosecution of the application or maintenance of the Patent granted thereon, that

Participant will notify the other Participant of that decision, and permit the other

Participant to continue the prosecution or the maintenance.

8.12.5 The Participants will provide to each other copies of Patent applications filed and

Patents granted with regard to Project Inventions.

8.12.6 Each Participant will grant to the other Participant a non-exclusive, irrevocable,

royalty-free license under its Patents for Project Inventions, to practice or have practiced,

by or on behalf of the Participant, the patented Project Invention for Defense Purposes

throughout the world.

8.12.7 Patent applications that contain Classified Information to be filed under this MOU

or any of its PAs, will be protected and safeguarded in accordance with the requirements

contained in Section XI (Security) of this MOU.

8.12.8 Each Participant will notify the other Participant of any Patent infringement

claims made in its territory arising in the course of work performed under any PA of this

MOU. Insofar as possible, the other Participant will provide information available to it

that may assist in defending the claim. Each Participant will be responsible for handling

all Patent infringement claims made in its territory, and will consult with the other

Participant during the handling, and prior to any settlement, of such claims. The

Participants will share the costs of resolving Patent infringement claims in a manner they

31
determine to be fair at the time the Patent infringement claim is resolved. The Participants

will, in accordance with their national laws and practices, give their authorization and

consent for all use and manufacture in the course of work performed under the project of

any invention covered by a Patent issued by their respective countries.

32
SECTION IX

CONTROLLED UNCLASSIFIED INFORMATION

9.1 Except as otherwise provided in this MOU or as authorized in writing by the

originating Participant, Controlled Unclassified Information provided or generated pursuant to

this MOU and any of its PAs, will be controlled as follows:

9.1.1 such information will be used only for the purposes authorized for use of Project

Information as specified in Section VIII (Disclosure and Use of Project Information);

9.1.2 access to such information will be limited to personnel whose access is

necessary for the permitted use under subparagraph 9.1.1, and will be subject to the

provisions of Section XII (Third Party Sales and Transfers);

9.1.3 each Participant will take all lawful steps, which may include national

classification, available to it to keep such information free from further disclosure

(including requests under any legislative provisions), except as provided in

subparagraph 9.1.2, unless the originating Participant consents to such disclosure. In

the event of unauthorized disclosure, or if it becomes probable that the information

may have to be further disclosed under any legislative provision, immediate

notification will be given to the originating Participant.

9.2 To assist in providing the appropriate controls, the originating Participant will ensure

Controlled Unclassified Information is appropriately marked. The Participants will decide, in

advance and in writing, on the markings to be placed on the Controlled Unclassified Information.

Where necessary appropriate markings will be defined:

9.2.1 for Working Groups, in the TOR;

9.2.2 For RUTF PAs or PETs, through an exchange of correspondence between the

POs; or

9.2.3 for CTE PAs, in the Project Security Instruction.

9.3 Controlled Unclassified Information provided or generated pursuant to this MOU will

be handled in a manner that ensures control as provided for in paragraph 9.1.

9.4 Prior to authorizing the release of Controlled Unclassified Information to Contractors,

the Participants will ensure the Contractors are legally bound to control such information in

accordance with the provisions of this Section.

33
SECTION X

VISITS TO ESTABLISHMENTS

10.1 Each Participant will permit visits to its government establishments, agencies and

laboratories, and Contractor industrial facilities by employees of the other Participant or by

employees of the other Participant's Contractor(s), provided that the visit is authorized by both

Participants, the employees have any necessary and appropriate security clearances, and a needto-know.

10.2 All visiting personnel will be required to comply with security regulations of the host

Participant. Any information disclosed or made available to visitors will be treated as if supplied

to the Participant sponsoring the visiting personnel, and will be subject to the provisions of this

MOU.

10.3 Requests for visits by personnel of one Participant to a facility of the other Participant

will be coordinated through official channels, and will conform to the established visit

procedures of the host Participant. Requests for visits will bear the name of this MOU and the

appropriate PA.

10.4 Lists of personnel of each Participant required to visit, on a continuing basis, facilities

of the other Participant will be submitted through official channels in accordance with each

Participant's recurring international visit procedures.

34
SECTION XI

SECURITY

11.1 All Classified Information provided or generated pursuant to this MOU and any of its

PAs will be stored, handled, transmitted and safeguarded in accordance with the General

Security of Information Agreement between the Government of the United States and the

Government of the Kingdom of the Netherlands of 18 August 1960, as amended, and the

Industrial Security Agreement of 9 April 1982.

11.2 Classified Information will be transferred through official government-to-government

channels only or through channels approved by the Designated Security Authorities (DSAs) of

the Participants. Such Classified Information will bear the level of classification; denote the

country of origin, the conditions of release, and the fact that the information relates to this MOU

and the applicable PA.

11.3 Each Participant will take all lawful steps available to it to ensure Classified Information

provided or generated pursuant to this MOU and any of its PAs is protected from further

disclosure, except as permitted by paragraph 11.8, unless the other Participant consents to such

disclosure. Accordingly, each Participant will ensure that:

11.3.1 the recipient will not release the Classified Information to any government,

national, organization, or other entity of a Third Party without the prior written consent of

the originating Participant in accordance with the procedures set forth in Section XII

(Third Party Sales and Transfers);

11.3.2 the recipient will not use the Classified Information for other than the purposes

provided for in this MOU, and

11.3.3 the recipient will comply with any distribution and access restrictions on

Classified Information that is provided under this MOU.

11.4 The Participants will investigate all cases in which it is known or where there are grounds

for suspecting that Classified Information provided or generated pursuant to this MOU has been

lost or disclosed to unauthorized persons or other entities. Each Participant also will promptly

and fully inform the other Participant of the details of any such occurrences, and of the final

results of the investigation and of the corrective action taken to preclude recurrences.

11.5 When a CTE PA contains provisions for the exchange of Classified Information, the POs

will prepare a Project Security Instruction (PSI) and a Classification Guide (CG) for the CTE

PA. The PSI and the CG will describe the methods by which Project Information will be

classified, marked, used, transmitted, and safeguarded. The PSI and CG will be developed by

the PO within three months after the CTE PA enters into effect. They will be reviewed and

35
forwarded to the Participants' DSAs for approval and will be applicable to all government and

Contractor personnel participating in the project. The CG will be subject to regular review and

revision with the aim of downgrading the classification whenever this is appropriate. The PSI

and the CG will be approved by the appropriate DSA prior to the transfer of any Classified

Information or Controlled Unclassified Information.

11.6 The DSA of the Participant in which a classified Contract is awarded pursuant to this

MOU will assume responsibility for administering within its territory security measures for the

protection of the Classified Information, in accordance with its laws and regulations. Prior to the

release to a Contractor, prospective Contractor, subcontractor, or prospective subcontractor of

any Classified Information provided or generated under this MOU, the DSAs will:

11.6.1 ensure that such Contractor, prospective Contractor, subcontractor or prospective

subcontractor and their facility(ies) have the capability to protect the Classified

Information adequately under each Participant's National Industrial Security Program;

11.6.2 grant a security clearance to the facility(ies);

11.6.3 grant a security clearance for all personnel whose duties require access to

Classified Information;

11.6.4 ensure that all persons having access to the Classified Information are informed of

their responsibilities to protect the Classified Information in accordance with national

security laws and regulations, and provisions of this MOU;

11.6.5 carry out periodic security inspections of cleared facilities to ensure that the

Classified Information is properly protected; and

11.6.6 ensure that access to the Classified Information is limited to those persons who

have a need-to-know for purposes of the MOU and any of its PAs.

11.7 Contractors, prospective Contractors, subcontractors or prospective subcontractors which

are mutually determined by the DSAs to be under financial, administrative, policy or

management control of nationals or entities of a Third Party, may participate in a Contract or

subcontract requiring access to Classified Information provided or generated pursuant to this

MOU or any of its PAs only when enforceable measures are in force to ensure that nationals or

other entities of a Third Party will not have access to Classified Information. If enforceable

measures are not in force to preclude access by nationals or other entities of a Third Party, the

other Participant will be consulted for approval prior to permitting such access.

11.8 For any facility wherein Classified Information is to be used, the responsible Participant

or Contractor will approve the appointment of a person or persons to exercise effectively the

responsibilities for safeguarding at such facility the Classified Information pertaining to this

MOU and any of its PAs. These officials will be responsible for limiting access to Classified

36
Information involved in this MOU and any of its PAs to those persons who have been properly

approved for access and have a need-to-know.

11.9 Each Participant will ensure that access to the Classified Information is limited to those

persons who possess requisite security clearances and have a specific need for access to the

Classified Information in order to participate in this MOU or any of its PAs.

11.10 Information provided or generated pursuant to this MOU may be classified as high as

SECRET in accordance with the agreements referenced in paragraph 11.1. The existence of this

MOU is UNCLASSIFIED and the contents are UNCLASSIFIED The classification of the

existence of any PA and its contents will be stated in that PA.

37
SECTION XII

THIRD PARTY SALES AND TRANSFERS

12.1 Except to the extent permitted in paragraph 12.2, the Participants will not sell, transfer

title to, disclose, or transfer possession of Project Foreground Information (or any item produced

either wholly or in part from the Project Foreground Information) or jointly acquired or produced

Project Equipment to any Third Party without the prior written consent of the other Participant's

Government. Furthermore, neither Participant will permit any such sale, disclosure, or transfer,

including by the owner of the item, without the prior written consent of the other Participant's

Government. Such consent will not be given unless the government of the intended recipient

consents in writing with the Participants that it will:

12.1.1 not retransfer, or permit the further retransfer of, any equipment or information

provided; and

12.1.2 use, or permit the use of, the equipment or information provided only for the

purposes specified by the Participants.

12.2 Each Participant will retain the right to sell, transfer title to, disclose, or transfer

possession of Project Foreground Information that:

12.2.1 is generated solely by either that Participant or that Participant's Contractors in the

performance of that Participant's work allocation under Section In (Scope of Work);

12.2.2 does not include any Project Foreground Information or Project Background

Information of the other Participant, and whose generation, test, or evaluation has not

relied on the use of Project Equipment of the other Participant.

12.3 In the event questions arise as to whether the Project Foreground Information (or any

item produced either wholly or in part from the Project Foreground Information) that a

Participant intends to sell, transfer title to, disclose, or transfer possession of to a Third Party is

within the scope of paragraph 12.2, the matter will be brought to the immediate attention of the

other Participant's MA. The Participants will resolve the matter prior to any sale or other transfer

of such Project Foreground Information (or any item produced either wholly or in part from the

Project Foreground Information) to a Third Party.

12.4 A Participant will not sell, transfer title to, disclose, or transfer possession of Project

Equipment or Project Background Information provided by the other Participant to any Third

Party without the prior written consent of the Participant that provided such equipment or

information. The providing Participant will be solely responsible for authorizing such transfers

and, as applicable, specifying the method and provisions for implementing such transfers.

38
12.5 Consent for Third Party sales and transfers of Project Foreground Information, jointly

acquired Project Equipment, or any item produced either wholly or in part from Project

Foreground Information, will be subject to foreign policy, national security considerations, and

national laws, regulations, and policies.

39
SECTION XIII

LIABILITY, CLAIMS AND STATUS OF PERSONNEL

13.1 With the exception of claims for loss of or damage to TEP Equipment under Section VII

(Project Equipment Transfers), claims against either Participant or its personnel will be dealt

with in accordance with Section VIII of the Agreement between the Parties to the North Atlantic

Treaty Regarding the Status of their Forces, signed in London on June 19 th, 1951 (NATO

SOFA).

13.2 Claims arising under or related to any contract awarded pursuant to Section VI

(Contracting Provisions) will be dealt with in accordance with the provisions of the contract.

13.3 The military and civilian employees of a Participant assigned to duty with its defense

department or ministry, while present in the territory of another Participant, will, to the extent

that they are so qualified, be members of a "force" and "civilian component" respectively, within

the meaning of Article I of the NATO SOFA. Employees and agents of Contractors will not be

considered to constitute a civilian component and the NATO SOFA will not apply to them.

40
SECTION XIV

CUSTOMS DUTIES AND SIMILAR CHARGES

14.1 Customs duties, import and export charges, and similar charges will be administered in

accordance with each Participant's respective laws and regulations. Insofar as existing national

laws and regulations permit, the Participants will endeavor to ensure that such readily

identifiable duties and similar charges, as well as quantitative or other restrictions on imports and

exports, are not imposed in connection with work carried out under a TEP Activity.

14.2 Each Participant will use its best efforts to ensure that customs duties, import and

export charges, and similar charges are administered in a manner favorable to the efficient and

economical conduct of the work. If, despite having followed appropriate procedures, any such

duties or similar charges are levied, the Participant in whose country they are levied will bear

such costs. Any such costs will not be considered to fall under either Participant's shared costs.

14.3 If, in order to apply European Union (EU) regulations, it is necessary to levy duties,

then these will be met by the EU member end recipient. To this end, parts of the components of

the equipment coming from outside the EU will proceed to their final destination accompanied

by the relevant customs document enabling settlement of duties to take place. The duties will be

levied as a cost over and above that Participant's shared cost of the Project.

41
SECTION XV

SETTLEMENT OF DISPUTES

15.1 Disputes between the Participants arising under or relating to this MOU or any of its

PAs will be resolved by consultation between the Participants only and will not be referred to a

national court, an international tribunal, or to any other person or entity for settlement.

42
SECTION XVI

GENERAL PROVISIONS

16.1 All activities of the Participants under this MOU will be carried out in accordance with

their national laws. The responsibilities of the Participants will be subject to the availability of

funds for such purposes.

16.2 In the event of a conflict between the provisions of this MOU and any TEP PA or PET

Form, this MOU will take precedence.

16.3 No requirement will be imposed by either Participant for work sharing or other industrial

or commercial compensation in connection with this MOU that is not in accordance with this

MOU.

43
SECTION XVII

AMENDMENT, TERMINATION, EFFECTIVE DATE, AND DURATION

17.1 This MOU, or PAs to this MOU, may be amended by the mutual written consent of the

Participants.

17.2 This MOU or PAs to this MOU may be terminated at any time by the mutual written

consent of the Participants. In the event the Participants consent to terminate this MOU or PAs

to this MOU, the Participants will consult prior to the date of termination to ensure termination

on the most economical and equitable terms. Termination of this MOU will result in the

termination of all PAs to this MOU.

17.3 Either Participant may terminate this MOU or PAs to this MOU upon 90 days written

notice of its intent to terminate to the other Participant. Such notice will be the subject of

immediate consultation to decide upon the appropriate course of action to conclude the activities

under this MOU or PA. In the event of such termination, the following rules apply:

17.3.1 The Participants will continue participation, financial or otherwise, in all PAs

subject to the notice of termination, up to the effective date of termination;

17.3.2 Except as to Contracts awarded on behalf of both Participants, each Participant

will be responsible for its own project-related costs associated with termination of the

Project. For Contracts awarded on behalf of both Participants, the terminating Participant

will pay all Contract modification and termination costs that would not otherwise have

been incurred but for the decision to terminate. The Participants will endeavor to

minimize all costs of termination. In no event will a terminating Participant's total

financial contribution, including Contract termination costs, exceed that Participant's

total financial contribution for the PA being terminated;

17.3.3 All Project Information and rights therein received under the provisions of this

MOU or PAs prior to termination of the MOU or its PAs will be retained by the

Participants, subject to the provisions of this MOU and its PAs;

17.3.4 If requested by the other Participant, the terminating Participant may continue to

administer the project Contract(s) which it awarded on behalf of the other Participant on a

reimbursable basis; and

17.3.5 Additional PA termination provisions consistent with this Section may be

established in the PA.
17.4 The respective rights and duties of the Participants regarding Section VII (Project

Equipment), Section VIII (Disclosure and Use of Project Information), Section IX (Controlled

Unclassified Information), Section XI (Security), Section XII (Third Party Sales and Transfers),

Section XIII (Liability, Claims and Status of Personnel), Section XV (Settlement of Disputes)

and this Section XVII (Amendment, Termination, Effective Date and Duration) will continue

notwithstanding termination or expiration of this MOU or any of its PAs.

17.5 This MOU, which consists of seventeen (17) Sections and three (3) Annexes, will come

into effect on the date of last signature, and will remain in effect for ten (10) years unless

terminated by either Participant. This MOU will be automatically extended for successive fiveyear periods unless one Participant notifies the other in writing six months prior to expiration

that it does not desire this MOU to be extended.

45
21

Date

Sek%

Location

IN WITNESS WHEREOF, the undersigned, being duly authorized, have signed this MOU.

SIGNED, in duplicate, in the English language.

FOR THE DEPARTMENT OF DEFENSE FOR THE MINISTER OF DEFENCE OF

OF THE UNITED STATES OF AMERICA THE KINGDOM OF THE NETHERLANDS

Thomas P. Christie 

Name

Director, Operational Test and Evaluation

Title

12- r*E:G atiaav

Date

\MOS Wi t■)?, 

Location

Rear Admiral Ir. Dirk van Dord

Name

Principal Director for Materiel

Title

46
AMEX A

MODEL RECIPROCAL USE OF TEST FACILITIES (RUTF) PROJECT ARRANGEMENT

(PA)

RUTF PA NUMBER *

UNDER THE U.S. DOD-NL MOD

TEST AND EVALUATION PROGRAM (TEP) COOPERATION

MEMORANDUM OF UNDERSTANDING

DATED

CONCERNING

(FULL DESIGNATION OF THE TEST AND TEST LOCATION)

*The U.S. DoD will assign the Project Arrangement number.
TABLE OF CONTENTS

ANNEX A -- MODEL RECIPROCAL USE OF TEST FACILITIES (RUTF) PROJECT

ARRANGEMENT (PA)

SECTION I

INTRODUCTION A-3

SECTION II

DEFINITION OF TERMS AND ABBREVIATIONS .A-3

SECTION III

T&E OBJECTIVES A-3

SECTION IV

SCOPE OF WORK A-3

SECTION V

ESTIMATED TEST SCHEDULE A-4

SECTION VI

MANAGEMENT A-4

SECTION VII

FINANCIAL PROVISIONS .A-6

SECTION VIII

SPECIAL DISCLOSURE AND USE OF INFORMATION PROVISIONS A-6

SECTION IX

CLASSIFICATION A-7

SECTION X

PRINCIPAL ORGANIZATIONS INVOLVED A-7

SECTION XI

PROJECT EQUIPMENT TRANSFERS A-7

SECTION XII

EFFECTIVE DATE, DURATION AND TERMINATION A-8

APPENDIX 1

U.S. DOD COST ESTIMATE MODEL A-9

APPENDIX 2

NL MOD COST ESTIMATE MODEL A-10

APPENDIX 3

INVENTORY OF PROJECT EQUIPMENT TRANSFERS A-11
SECTION I

INTRODUCTION

This Reciprocal Use of Test Facilities (RUTF) Project Arrangement (PA) is entered into

pursuant to the Memorandum of Understanding between the Department of Defense of the

United States of America (U.S. DoD) and the Minister of Defence of the Kingdom of The

Netherlands (NL MoD) for Test and Evaluation Program (TEP) Cooperation of (date).

The Participants have mutually determined that conducting at

is mutually beneficial.

(RUTF PAs may involve performance of multiple test events at multiple Test Facilities over

multiple years.)

SECTION II

DEFINITION OF TERMS AND ABBREVIATIONS 

(Define only those terms used in this PA that have not been defined in the MOU.)

SECTION

T&E OBJECTIVES 

The T&E objectives of this PA are:

a. To determine the

b. To evaluate the

c. To accomplish/improve

SECTION IV

SCOPE OF WORK

Test Description a. is designed to

b. is comprised of

(Include any Customer Participant-provided test personnel, equipment (other than Project

Equipment), or other assistance in this Section and provide the applicable details in the PA.)
Test Facility Services

(Outline the tasks and services to be performed by the Test Facility.)

The following T&E Activities will be performed by during a period of up to

days/weeks during

a.

b.

c.

The following support will be provided by the Test Facility:

(For example: Technical and analytical assistance, consultation for preparation of the test

plan, qualified personnel to conduct the T&E, any other specified support to customer.)

SECTION V

Day/Week/Month 1:

Dates

Day/Week/Month 2:

Dates

Day/Week/Month 3:

Dates

ESTIMATED TEST SCHEDULE

(List of activities to occur each day)

(List of activities to occur each day)

(List of activities to occur each day)

The dates and duration of the test are subject to change by either Participant. The U.S. DoD and

the NL MoD POs will keep each other informed of progress and apprise each other of potential

schedule change, delay or cancellation.

The final report will be transmitted to the MAs six months before the termination date of this PA.

SECTION VI

MANAGEMENT

This PA will be directed and administered on behalf of the Participants by one PO from each

Participant. POs are responsible for the implementation of the provisions of the MOU and PA.
Direct liaison between the Participants' POs is authorized. Alternate POs may also be

designated. The POs are:

U.S. DoD PO: Title/Position

Organization 

Mail Address 

Phone & Fax 

E-mail

NL MoD PO: Title/Position 

Organization 

Mail Address 

Phone & Fax 

E-mail

(The POs, as appropriate, may develop and agree to a test plan.)

Command, Control, Safety and Security Considerations

The Performing Participant will retain command and control over all facilities, personnel,

equipment and support units. Both Participants will adhere to standing operating procedures

regarding command, control, safety and security, except where mutually determined otherwise in

writing. In accordance with Section XI, (Security) of the MOU:

a. The Participants are responsible for security of all publications and reference material.

b. The Performing Participant is responsible for the security of test site materials and

publications.

c. POs will coordinate security requirements prior to all classified testing.
SECTION VII

FINANCIAL PROVISIONS

The cost estimate for performance of the tasks under this PA is $ . In no event will

the Performing Participant exceed this cost estimate without the prior written consent of the

Customer Participant. If the Performing Participant has reason to believe that this cost estimate

will be exceeded, the Performing Participant will immediately notify the Customer Participant

and will set forth a new cost estimate together with supporting documentation. The Participants

will consult as soon as possible regarding the action to be taken in view of the revised cost

estimate.

The Performing Participant will submit a request for payment to the Customer Participant at least

45 days in advance of the test requiring payment of the estimated cost. The Customer Participant

will review the request for payment and respond with payment no later than five (5) days prior to

the scheduled commencement of the test. The test effort will not commence until the funds are

received.

(The Participants may adjust the time periods as necessary for each test.)

Upon completion of the test (including submission of the final report), the Performing Participant

will provide a final statement of account to the Customer Participant, which details the actual

costs incurred and payments received from the Customer Participant. After completing review

of the final statement of account, the Participants will reconcile the account and make any final

payments.

Requests for payment will contain the following information:

Date

PA Number

Invoice ID

Financial Manager's Contact Information

Financial Coding

Invoice Total

SECTION VIII

SPECIAL DISCLOSURE AND USE OF INFORMATION PROVISIONS (Optional)

(Insert any special disclosure and use of information provisions needed to implement the PA.)
SECTION IX

CLASSIFICATION

Only one of the three following possibilities must be selected:

a. No Classified Information will be exchanged under this PA;

b. The highest level of Classified Information exchanged under this PA is:

CONFIDENTIAL; or

c. The highest level of Classified Information exchanged under this PA is:

SECRET.

The existence of this PA is [Insert Classification] and its contents are [Insert Classification].

SECTION X

PRINCIPAL ORGANIZATIONS INVOLVED

(List Test Facilities and other organizations of the Participants.)

SECTION XI

PROJECT EQUIPMENT TRANSFERS

NOTES:

Providing

Participant

Receiving

Participant

QTY Description Part/

Stock #

Consumables/

Non-Consumables

Return

Date

Replace

ment

Value

1. Specifically identify the test article. In the event that the cooperative efforts under the

PA require the provision of other Project Equipment to either Participant, a list of such

Project Equipment must be developed in general accordance with the preceding table.

(Project Equipment that cannot be identified at the time of PA signature will be documented,

when identified, in a list to be developed and maintained by the POs, and in the format at

Appendix 2 to this Annex.)

2. If jointly acquired Project Equipment is an aspect of the cooperative efforts under the

PA, then terms and conditions for the disposal of such jointly acquired Project Equipment

must be included in the PA.
SECTION XII

EFFECTIVE DATE, DURATION AND TERMINATION

This RUTF PA, a TEP Activity under the MOU between the Department of Defense of

the United States of America and the Minister of Defence of the Kingdom of The Netherlands,

will come into effect upon signature by the Participants, and will remain in effect for years

unless terminated by either Participant. It may be extended by the written mutual determination

of the Participants.

FOR THE DEPARTMENT OF DEFENSE FOR THE MINISTER OF DEFENCE OF

OF THE UNITED STATES OF AMERICA THE KINGDOM OF THE NETHERLANDS

Signature Signature

Name Name

Title Title

Date Date

Location Location
APPENDIX 1— U.S. DOD COST ESTIMATE MODEL

COST ESTIMATE FOR THE (Name of Test)

Test Period (Insert Date)

Item Task Description/Service Labor Facility

Use

Materials Travel Total

DIRECT COSTS

1 Test Planning

2 Test Article Safety Inspection

3 Test Preparation & Setup

4 Flight Time & Flt Support

5 Range Firings

6 Ground Support (Telemetry &

Communications)

7 Toxic Fumes Test

8 Human Factors Evaluation

9 Technical / Review Meetings

10 Secure Storage

11 Supplies & Materials

12 Contingencies (Retest, etc...)

13 Data Analysis

,_ n Report Preparation

INDIRECT COSTS

(Indirect Costs charged to the Customer Participant will be only those required by the

Performing Participant's laws and regulations. These costs may be itemized in a format

similar to the table above.)

RUTF PA ID # XXXX

Note: The above table is a notional example. Cost estimate tables should be tailored to align

with the requirements of particular tests.
APPENDIX 2 — NL MOD COST ESTIMATE MODEL

COST ESTIMATE FOR THE (Name of Test)

Test Period (Insert Date)

Item Task Description/Service Labor Facility

Use

Materials Travel Total

ACTUAL COST/PREFERRED RATE

1 Test Planning

2 Test Article Safety Inspection

3 Test Preparation & Setup

4 Flight Time & Flt Support

5 Range Firings

6 Ground Support (Telemetry &

Communications)

7 Toxic Fumes Test

8 Human Factors Evaluation

9 Technical / Review Meetings

10 Secure Storage

11 Supplies & Materials

12 Contingencies (Retest, etc...)

13 Data Analysis

n Report Preparation

RUTF PA ID # XXXX

Note: The above table is a notional example. Cost estimate tables should be tailored to align

with the requirements of particular tests.
APPENDIX 3 -- INVENTORY OF PROJECT EQUIPMENT TRANSFERS

Providing

Participant

Receiving

Participant

QTY Description Part/

Stock #

Consumables/

Non-Consumables

Return Date Replacemen

Value
ANNEX B

MODEL COOPERATIVE TEST & EVALUATION (CTE) PROJECT ARRANGEMENT (PA)

CTE PA NUMBER — (CTE-XXXX*)

UNDER THE

U.S. DOD — NL MOD

TEST AND EVALUATION PROGRAM (TEP) COOPERATION

MEMORANDUM OF UNDERSTANDING

DATED

CONCERNING

(FULL DESIGNATION OF THE PROJECT)

*The U.S. DoD will assign the Project Arrangement number.
TABLE OF CONTENTS

ANNEX B -- MODEL COOPERATIVE TEST & EVALUATION (CTE) PROJECT

ARRANGEMENT (PA)

SECTION I

INTRODUCTION B-3

SECTION II

DEFINITION OF TERMS AND ABBREVIATIONS B-3

SECTION DT

OBJECTIVES .B-3

SECTION IV

SCOPE OF WORK .B-3

SECTION V

SHARING OF TASKS B-4

SECTION VI

BREAKDOWN AND SCHEDULE OF TASKS B-4

SECTION VII

MANAGEMENT .B-5

SECTION VIII

FINANCIAL PROVISIONS B-7

SECTION IX

SPECIAL DISCLOSURE AND USE OF INFORMATION PROVISIONS B-8

SECTION X

CLASSIFICATION .B-8

SECTION XI

PRINCIPAL ORGANIZATIONS INVOLVED .B-8

SECTION XII

PROJECT EQUIPMENT TRANSFERS .B-9

SECTION XIII

EFFECTIVE DATE, DURATION, AND TERMINATION B-10

APPENDIX 1

COOPERATIVE PROJECT PERSONNEL .B- 1 1

APPENDIX 2

INVENTORY OF PROJECT EQUIPMENT TRANSFERS B-15

(At a minimum, a PA should include the above Sections. If additional topics need to be

addressed, Sections, annexes, or special provisions should be included as necessary and

appropriate.)
SECTION I

INTRODUCTION

This Cooperative Test & Evaluation (CTE) Project Arrangement (PA) is entered into pursuant to

the MOU between the Secretary of Defense of the United States of America (U.S. DoD) and the

Minister of Defence of the Kingdom of The Netherlands (NL MoD) for Test and Evaluation

Program (TEP) Cooperation (date). ,

SECTION II

DEFINITION OF TERMS AND ABBREVIATIONS 

(Define only those terms used in this PA that have not been defined in the MOU.)

The objectives of this

SECTION III

OBJECTIVES

PA are:

a. The development of

b. The improvement of

SECTION IV

SCOPE OF WORK

The following work will be undertaken under this PA.

a. Develop

b. Evaluate

c. Design, fabricate and test
SECTION V

SHARING OF TASKS 

The sharing of tasks will be as follows:

a. The U.S. DoD will

b. The NL MoD will

c. U.S. DoD and NL MoD will jointly

SECTION VI

BREAKDOWN AND SCHEDULE OF TASKS

(OPTIONAL)

(Use this format when the tasks covered under this project may be performed using

multiple phases, requiring milestones or decision points.)

The Project will proceed according to the following phases and schedule. Note that national

priorities may pre-empt agreed-upon schedules in PAs.

Phase 1 Start End

Description of Phase 1 MM/DD/YY MM/DD/YY

(Milestone 1) (e.g., Transmittal of Feasibility Report)

Phase 2 Start End

Description of Phase 2 MM/DD/YY MM/DD/YY

(Milestone 2) (e.g., Decision to proceed to Phase 3)

Phase 3 Start End

Description of Phase 3 MM/DD/YY MM/DD/YY

(Milestone 3) (e.g., Evaluation, analysis of results)

(Add as many phases as necessary.)

The final report must be transmitted to the MAs six months before the termination date for

this PA.
SECTION VII

MANAGEMENT

(If a PA does not require a Steering Committee, use the following format to set forth

how the PA will be managed.)

Alternative 1 

1. This PA will be directed and administered on behalf of the Participants by one Project

Officer (PO) from each Participant. The POs are:

U.S. DoD PO Title/Position 

Organization 

Address

NL MoD PO Title/Position 

Organization 

Address

2. Project Offices will be established in (name of U.S. location) and in

(name of The Netherlands location). The POs are responsible for management of

those tasks listed as national responsibilities in Section V (Sharing of Tasks) in this PA.

3. Particular Management Procedures:

(Mention only those additional management responsibilities not covered under Section IV

(Management) of the MOU.)

(If a Project requires the establishment of a Steering Committee, use the following format to set

forth how the Project will be managed.)

Alternative 2

1. This PA will be directed and administered on behalf of the Participants by an organization

consisting of a Steering Committee (SC) and one Project Officer (PO) from each Participant. The

SC members are:

B-5
U.S. DoD Co-Chairman Title/Position

Organization 

Address

NL MoD Co-Chairman Title/Position 

Organization 

Address

2. The POs are:

U.S. DoD PO Title/Position

Organization

Address

NL MoD PO Title/Position 

Organization 

Address

3. Particular Management Procedures:

(Mention only those additional management responsibilities not covered under Section

IV of the MOU. For instance, if a PA will be administered by one joint program office

(JPO) staffed by members from each Participant, add the following paragraph:

4.X Either Participant may assign personnel to the JPO to assist in administering a PA.

The Host Participant will provide office space and administrative support to personnel of

the other Participant in accordance with the Host Participant's normal practice. A

Participant's assigned personnel will be subject to the normal procedures and
regulations of the Host Participant Provisions for the personnel provided are described

in Appendix 1 to this PA.)

SECTION VIII

FINANCIAL PROVISIONS

The Participants estimate that the cost of performance of the tasks under this PA will not exceed

U.S. $ + NL EUR_.

Cooperative efforts of the Participants over and above the mutually determined tasks set forth in

the SCOPE OF WORK and SHARING OF TASKS and FINANCIAL PROVISIONS Sections

will be subject to amendment to this PA or signature of a new PA.

(If a PA will involve the assignment of CPP, the PA will include a provision that refers

to paragraphs 5.8 - 5.10 of the MOU, identifies which Participant is sending or hosting

CPP, and specifies the number of CPP to be assigned. In addition, the PA will include

the amount of financial and non financial contributions related to CPP in one of the

two alternatives below in this Section.)

(If a PA will not involve one Participant contracting for the other or both Participants,

and no funds will be exchanged between the Participants, use the following format for

the Financial Arrangements. Both financial and non-financial contributions should be

included in the total U.S. DoD and NL MoD costs.)

Alternative 1

The U.S. DoD tasks will not cost more than: U.S. $.

The NL MoD tasks will not cost more than: EUR.

Or:

(If a PA will involve one Participant contracting for the other Participant or both

Participants, or the Participants will transfer or exchange funds between them, use the

following format for the Financial Arrangements.)

Alternative 2

(Cost of performance includes Financial and Non—financial Costs.)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

U.S. DoD

NL MoD

B-7
(Using the above table and whatever description is necessary, explain and demonstrate how the

PA will be funded. Identify both financial (funds) and non-financial (range time, use of

equipment, etc.) contributions and identify the amount of funds to be transferred between the

Participants.)

(The Financial Management Procedures Document (FMPD) should be developed by the POs

and submitted to the SC (if appropriate) for approval. The FMPD should include, as a

minimum, schedule, handling, funding levels by year, and auditing procedures for monetary

contributions anticipated for this PA.)

SECTION IX

SPECIAL DISCLOSURE AND USE OF INFORMATION PROVISIONS (OPTIONAL)

(Insert any special disclosure and use of information provisions unique to the PA.)

SECTION X

CLASSIFICATION

Only one of the three following possibilities must be selected:

a. No Classified Information will be exchanged under this PA;

b. The highest level of Classified Information exchanged under this PA is:

CONFIDENTIAL; or

c. The highest level of Classified Information exchanged under this PA is: SECRET.

The existence of this PA is [Insert classification] and its contents are [Insert classification].

SECTION XI

PRINCIPAL ORGANIZATIONS INVOLVED 

(List Test Facilities and other organizations of the Participants.)
SECTION XII

PROJECT EQUIPMENT TRANSFERS

NOTES:

Providing

Participant

Receiving

Participant

QTY Description Part/

Stock #

Consumables/

Non-Consumables

Return Date Replacement

Value

1. In the event that the cooperative efforts under the PA require the provision of Project

Equipment to either Participant, a list of such Project Equipment must be developed in general

accordance with the preceding table. (Project Equipment that cannot be identified at the time

of PA signature will be documented, when identified, in a list to be developed and maintained by

the POs in the format at Appendix 2 to this Annex.)

2. If jointly acquired Project Equipment is an aspect of the cooperative efforts under the

PA, terms and conditions for the disposal of such jointly acquired Project Equipment must be

included in the PA.
SECTION XIII

EFFECTIVE DATE, DURATION AND TERMINATION

This CTE PA, a Project under the MOU

between the Department of Defense of the United States of America and the Minister of Defence

of the Kingdom of The Netherlands, will come into effect upon signature by the Participants, and

will remain in effect for years unless terminated by either Participant. It may be extended

by the written mutual determination of the Participants.

FOR THE DEPARTMENT OF DEFENSE FOR THE MINISTER OF DEFENCE OF

OF THE UNITED STATES OF AMERICA THE KINGDOM OF THE NETHERLANDS

Signature Signature

Name Name

Title Title

Date Date

Location Location
APPENDIX 1 - COOPERATIVE PROJECT PERSONNEL (CPP)

ASSIGNMENT OF (INSERT NAME OF PROJECT) COOPERATIVE PROJECT PERSONNEL

1.0 Purpose and Scope.

1.1 This Appendix to the Project Arrangement (PA) establishes the provisions that will

govern the conduct of the U.S. DoD or NL MoD Cooperative Project Personnel (CPP).

During the term of the PA, each Participant will be permitted to assign military members

or civilian employees of its U.S. DoD/NL MoD to the joint project office (JPO) if

established, or to U.S. DoD or NL MoD field activities in accordance with this Appendix.

CPP will be able to perform all the responsibilities for the positions assigned to them under

this PA. Commencement of assignments will be subject to any requirements that may be

imposed by the other Participant or its Government regarding acceptance of PA CPP, such

as, but not limited to, visas and visit request documentation. The U.S. DoD and NL MoD

SC representatives, or in the event no SC is established, the POs, will determine the length

of tour for the positions at the time of initial assignment.

1.2 CPP will be assigned to the JPO or to U.S. DoD or NL MoD field activities for

project work (including work at U.S. or NL Contractor facilities) and will report to their

designated supervisor within those organizations regarding that work. The designated

supervisor will be responsible for the creation of a document describing the duties of each

CPP position, which will be subject to approval by the SC or, in the event no SC is

established, the POs. CPP will not act as liaison officers for their parent organizations or

Governments. However, such personnel may act from time to time on behalf of their SC

representative (or PO as applicable), if the latter so authorizes in writing.

1.3 CPP will not be assigned to command or other positions that would require them to

exercise responsibilities that are reserved by law or regulation to an officer or employee of

the Host Participant's government.

2.0 Security.

2.1 The U.S. DoD and NL MoD SC representatives (or POs as applicable) will

establish the maximum level of security clearance required, if any, to permit CPP to have

access to Classified Information and facilities in which Classified Information is used in

accordance with the Project Security Instruction (PSI) and Classification Guide (CG).

Access to Classified Information and facilities in which Classified Information is used will

be consistent with, and limited by, Section III (Objectives) and Section IV (Scope of

Work) of this PA and the corresponding provisions of this Appendix, and will be kept to

the minimum required to accomplish the work assignments.

2.2 The Parent Participant will file visit requests for the CPP through prescribed

channels in compliance with the Host Participant's procedures. The Participants will cause

B-11
security assurances to be filed, through their respective embassies, specifying the security

clearances for the CPP being assigned. The security assurances will be prepared and

forwarded through prescribed channels in compliance with established procedures.

2.3 The Participants will use their best efforts to ensure that both the U.S. DoD and NL

MoD personnel assigned to the JPO or field activities are made aware of, and required to

comply with, applicable laws and regulations, as well as the requirements of Section VIII

(Disclosure and Use of Project Information), Section IX (Controlled Unclassified

Information), and Section XI (Security) of the MOU, and the corresponding provisions of

this Appendix, and the PSI and CG. Prior to commencing assigned duties, CPP will, if

required by the Host Participant's laws, regulations, policies, or procedures, sign a

certification concerning the conditions and responsibilities of CPP.

2.4 CPP will at all times be required to comply with the security and export laws,

regulations, and procedures of the Host Participant, as briefed in accordance with

paragraph 3.2 of this Appendix. Any violation of security or export procedures by CPP

during their assignment will be reported to the Parent Participant for appropriate action.

CPP committing willful violations of security or export laws, regulations, or procedures

during their assignments will be withdrawn from the project with a view toward

appropriate administrative or disciplinary action by the Parent Participant.

2.5 All Classified Information made available to CPP will be considered as Classified

Information furnished to the U.S. DoD or NL MoD, and will be subject to all of the

provisions and safeguards provided for in this PA, this Appendix, the MOU, the PSI and

the CG.

2.6 CPP will not have personal custody of Classified Information or Controlled

Unclassified Information, unless approved by the JPO if established and as authorized by

the Parent Participant. They will be granted access to such information in accordance with

the provisions of the PSI during normal duty hours when access is necessary to perform

project work. They may not have unsupervised access to classified libraries or operating

centers, or to document catalogues, unless the information therein is releasable to the

public.

2.7 CPP will not serve as a conduit between the U.S. DoD and the NL MoD for

requests for and/or transmission of Classified Information or Controlled Unclassified

Information unless specifically authorized by the PSI.

3.0 Administrative Matters.

3.1 Consistent with Host Participant's laws and regulations, and subject to applicable

multilateral and bilateral treaties, agreements and arrangements, CPP will be subject to the

same restrictions, conditions, and privileges as Host Participant personnel of comparable

rank and in comparable assignments. Further, to the extent authorized by the Host

Participant's laws and regulations, and applicable multilateral and bilateral treaties,

agreements and arrangements, CPP and their authorized dependents will be accorded:

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3.1.1 Exemption from any Host Participant tax upon income received

from their parent organization or government.

3.1.2 Exemption from any Host Participant customs and import duties or

similar charges levied on items entering the country for their official or

personal use, including their baggage, household effects, and private motor

vehicles.

3.2 Upon or shortly after arrival, CPP will be informed by the JPO or Host Participant

duty station about applicable laws, orders, regulations, and customs and the need to

comply with them. CPP will also be provided briefings arranged by the JPO or Host

Participant duty station regarding applicable entitlements, privileges, and duties such as:

3.2.1 Any medical or dental care that may be provided to CPP and their

dependents at the Host Participant's medical facilities, subject to applicable

laws and regulations, including reimbursement when required by such laws and

regulations, and any bilateral or multilateral agreements or arrangements.

3.2.2 Purchasing and patronage privileges at military commissaries,

exchanges, theaters, and clubs for CPP and their dependents, subject to

applicable laws and regulations, and any bilateral or multilateral agreements or

arrangements.

3.2.3 Responsibility of CPP and those dependents accompanying them to

obtain motor vehicle liability insurance coverage in accordance with laws and

regulations applicable in the area where they are residing. In case of claims

involving the use of private motor vehicles by CPP and their dependents, the

recourse will be against such insurance.

3.3 The POs, through the JPO and Host Participant field activities, will establish

standard operating procedures for CPP in the following areas:

3.3.1 Working hours, including holiday schedules.

3.3.2 Leave authorization, consistent to the extent possible with the military

or civilian personnel regulations and practices of both Participants.

3.3.3 Dress regulations, consistent to the extent possible with the military or

civilian personnel regulations and practices of both Participants.

3.3.4 Performance evaluations, recognizing that such evaluations must be

rendered in accordance with the providing Participant's military or civilian

personnel regulations and practices.
3.4 CPP committing an offense under the laws of the government of either Participant

may be withdrawn from this project with a view toward further administrative or

disciplinary action by the Parent Participant. Disciplinary action, however, will not be

taken by the Host Participant against CPP from the Parent Participant, nor will CPP from

the Parent Participant exercise disciplinary authority over Host Participant personnel. In

accordance with the Host Participant's laws, regulations, and procedures, the Host

Participant will assist the Parent Participant in carrying out investigations of offenses

involving CPP.
APPENDIX 2 - INVENTORY OF PROJECT EQUIPMENT TRANSFERS

Providing

Participant

Receiving

Participant

QTY Description Part/

Stock #

Consumables/

Non-Consumables

Return Date Replacement

Value
ANNEX C

MODEL PROJECT EQUIPMENT TRANSFER (PET) FORM

PET NUMBER (PET-XXXX*)

UNDER THE U.S. DOD-NL MOD

TEST AND EVALUATION PROGRAM (TEP) COOPERATION

MEMORANDUM OF UNDERSTANDING

BETWEEN

(Insert titles of the Organizations participating in the transfer)

*The U.S. DoD will assign the PET number.
INTRODUCTION

This Project Equipment transfer (PET) is entered into pursuant to the Memorandum of

Understanding (MOU) between the Minister of Defence of the Kingdom of The Netherlands and

the Department of Defense of the United States of America concerning Test and Evaluation

Programs (TEP) (insert effective date of the TEP MOU). This TEP PET Form is being executed

by authorized representatives of the providing and receiving Participants pursuant to Section VII

(Project Equipment) of the TEP MOU.

SECTION I

DESCRIPTION AND QUANTITY

1.1 The following Project Equipment will be transferred by the providing Participant to the

receiving Participant:

Providing

Participant

Receiving

Participant

QTY Description Part/

Stock #

Consumables/

Non-Consumables

Return Date Replacement

Value

(Fill in as appropriate)

1.2 (Choose one of the following alternatives, or use both if both situations apply.)

Alternative A -- Use when return of Project Equipment is planned.

None of the Project Equipment identified in paragraph 1.1 is intended to be consumed or

expended during the course of the TEP Activity described in paragraph 2.1.1.

Alternative B -- Use when return of Project Equipment is not planned due to its consumption

during the activity.

The Project Equipment (specify as appropriate by highlighting in paragraph 1.1) described in

paragraph 1.1 is intended to be consumed or expended during the course of the TEP Activity

described in paragraph 2.1.1.
SECTION II

PURPOSE

2.1 The purpose of this PET is to support the following TEP Activity.

2.1.1 (Fill in as appropriate)

SECTION HI

MANAGEMENT AND RESPONSIBILITIES

3.1 Each Participant will establish a point of contact that will be responsible for implementing

this PET.

3.1.1 For the providing Participant the point of contact is *

3.1.2 For the receiving Participant the point of contact is *

Insert the appropriate names, titles/office symbols, addresses, and

telephone numbers of the individuals assigned to implement this PET.

3.2 Responsibilities of the Providing Participant

3.2.1 Transfer of the Project Equipment- The providing Participant will transfer the

Project Equipment listed above for the duration of the transfer period specified in

paragraph 6.4 unless extended by mutual written consent.

3.2.2 Project Equipment Delivery - The providing Participant will deliver the Project

Equipment (specify arrangements). Responsibility for the Project Equipment will pass

from the providing Participant to the receiving Participant at the time of receipt of the

Project Equipment. Any further transportation is the responsibility of the receiving

Participant unless otherwise specified in this paragraph.

3.2.3 Information - The providing Participant will furnish the receiving Participant such

information as is necessary to enable the Project Equipment to be used in the TEP Activity

described in paragraph 2.1.1 in accordance with Section 'VIII (Disclosure and Use of

Information) of the TEP MOU.

3.3 Responsibilities of the Receiving Participant

3.3.1 Inspection and Inventory — The receiving Participant will inspect and inventory

the Project Equipment upon receipt. The receiving Participant will also inspect and

inventory the Project Equipment prior to its return to the providing Participant, unless the

Project Equipment is consumed in accordance with paragraph 3.3.2.

3.3.2 (Choose one of the following alternatives, or use both if both situations apply.)

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Alternative A -- Use when return of Project Equipment is planned.

Return of Project Equipment: Upon expiration or termination of the transfer period specified in

paragraph 6.4 (taking into account any approved extension by the providing Participant), the

receiving Participant will return the Project Equipment to the providing Participant (specify

arrangements). If the Project Equipment is lost, unintentionally destroyed, or damaged beyond

economical repair, while in the custody of the receiving Participant, the receiving Participant will

issue a certificate of loss/destruction/irreparable damage to the providing Participant.

Alternative B -- Use when return of Project Equipment is not planned due to its consumption

during the Activity.

Consumption of Project Equipment: It is intended that the receiving Participant will consume the

Project Equipment specified in paragraph 1.1 during the course of the TEP Activity described in

paragraph 2.1.1. If this does occur, the receiving Participant will provide written notice of its

consumption to the providing Participant. In the event consumption does not occur prior to the

end of the transfer period specified in paragraph 6.4, the receiving Participant will return the

Project Equipment to the providing Participant (specify arrangements). If the Project Equipment

is lost, unintentionally destroyed, or damaged beyond repair prior to its intended consumption

while in the custody of the receiving Participant, the receiving Participant will issue a certificate of

loss/destruction/irreparable damage to the providing Participant.

3.4 This TEP PET Form provides only for transfer of Project Equipment associated with the

TEP Activity described in paragraph 2.1.1. Signature of this TEP PET Form does not imply any

commitment by a Participant to participate in any activities beyond the PET described herein.

SECTION IV

SPECIAL PROVISIONS (OPTIONAL)

4.1 (Insert any special provisions as required.)

SECTION V

CLASSIFICATION

5.1 (Insert only one of the two following paragraphs; note that one of these two options must

be selected.)

No classified Project Equipment will be transferred under this TEP PET Form.

or

The highest level of classified Project Equipment under this TEP PET Form is (insert level of

classification).

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SECTION VI

MODIFICATION, TERMINATION, AND TRANSFER PERIOD

6.1 The provisions of this PET Form may be modified or extended by written mutual consent

of authorized representatives of the Participants in accordance with Section VII (Project

Equipment) of the TEP MOU.

6.2 The PET described in this TEP PET Form may be terminated at any time in accordance

with the following provisions.

6.2.1 Through the mutual written consent of the authorized representatives of the

Participants.

6.2.2 Unilaterally by the receiving Participant on 60 days written notice to the providing

Participant.

6.2.3 Unilaterally by the providing Participant at any time.

6.3 Responsibilities regarding security and protection against unauthorized use, disclosure, or

transfer that accrued prior to termination or expiration of the transfer period will continue to apply

without limit of time in accordance with Section XVII (Amendment, Termination, Entry Into

Effect, and Duration) of the TEP MOU.

6.4 The transfer period for the Project Equipment described herein begins on the date of the

last signature below, and, unless terminated or extended, will continue until (enter date or amount

of time).
FOR THE DEPARTMENT OF DEFENSE FOR THE MINISTER OF DEFENCE OF

OF THE UNITED STATES OF AMERICA THE KINGDOM OF THE NETHERLANDS

Signature Signature

Name Name

Title Title

Date Date

Location Location