TREATIES AND OTHER INTERNATIONAL ACTS SERIES 10-1014 

________________________________________________________________________ 

DEFENSE 

Procurement 

 Memorandum of Understanding 

Between the 

UNITED STATES OF AMERICA 

and LUXEMBOURG 

Signed at Brussels October 14, 2010 
 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.” 
LUXEMBOURG 

Defense: Procurement 

 Memorandum of understanding signed 

 at Brussels October 14, 2010; 

 Entered into force October 14, 2010. 

 
MEMORANDUM OF UNDERSTANDING

BETWEEN

THE GOVERNMENT OF THE

GRAND-DUCHY OF LUXEMBOURG

AND

THE GOVERNMENT OF THE UNITED

STATES OF AMERICA

CONCERNING

RECIPROCAL DEFENSE

PROCUREMENT
MEMORANDUM OF UNDERSTANDING

BETWEEN

THE GOVERNMENT OF THE GRAND-DUCHY OF LUXEMBOURG

AND

THE GOVERNMENT OF THE UNITED STATES OF AMERICA

CONCERNING

RECIPROCAL DEFENSE PROCUREMENT

Rev 1, 8/12/10

PREAMBLE

The Government of the Grand-Duchy of Luxembourg and the Government of the

United States of America, hereinafter referred to as "the Parties",

BEARING in mind their partnership in the North Atlantic Treaty Organization;

DESIRING to promote the objectives of rationalization, standardization,

interoperability, and mutual logistics support throughout their defense relationship;

DESIRING to develop and strengthen the friendly relations existing between them;

SEEKING to achieve and maintain fair and equitable opportunities for the industry of

each country to participate in the defense procurement programs of the other;

DESIRING to enhance and strengthen each country's industrial base;

DESIRING to make the most cost-effective and rational use of the resources allocated to

defense;

DESIRING to promote the exchange of defense technology consistent with their

respective national laws, regulations, policies, and procedures; and,

DESIRING to remove discriminatory barriers to procurements of defense supplies or

services produced by industrial enterprises of the other country to the extent mutually

beneficial and consistent with national laws, regulations, policies, and international

obligations;
HAVE agreed as follows:

ARTICLE I

Applicability

This Memorandum of Understanding (MOU) covers the acquisition of defense

capability by the Ministry of Foreign Affairs of the Grand-Duchy of Luxembourg and

the Department of Defense of the United States of America through:

1. Research and development;

2. Procurements of supplies, including defense articles; and

3. Procurements of services, including defense services.

This MOU does not cover:

1. Construction; or

2. Construction material supplied under construction contracts.

ARTICLE II

Principles Governing Mutual Defense Cooperation

A. Each Party recognizes and expects that the other uses sound processes for

requirements definition, acquisition, and procurement and contracting, and that

these processes both facilitate and depend on transparency and integrity in the

conduct of procurements. Each Party shall ensure its processes are consistent

with the procurement procedures in Article V.

B. Each Party shall, consistent with its laws, regulations, policies, and international

obligations, give favorable consideration to all requests from the other Party for

cooperation in defense capability research and development, production,

procurement, and logistics support.

C. Consistent with its laws, regulations, policies, and international obligations, each

Party shall:

1. Facilitate the mutual flow of defense procurement for their armed forces,

aiming at an equitable balance in their purchases, taking into consideration

the relative technological level of such procurement, and consistent with their

national policies. An equitable balance in their purchases will not imply an

equitable monetary flow of defense procurement but will take into account

each country's financial, industrial, economic, and defense related

possibilities.

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2. Remove barriers to procurement or co-production of items of defense

equipment produced in the other country or services performed by sources

(hereinafter referred to as "industrial enterprises") established in the other

country. This includes providing to industrial enterprises of the other

country treatment no less favorable than that accorded to domestic industrial

enterprises. When an industrial enterprise of the other country submits an

offer that would be the low responsive and responsible offer but for the

application of the buy-national requirements, both Parties agree to waive the

buy-national requirement.

3. Utilize contracting procedures that allow all responsible industrial enterprises

of both countries to compete for procurements covered by this MOU.

4. Exchange information on pertinent laws, implementing regulations, policy

guidance, and administrative procedures.

5. Give full consideration to all responsible industrial enterprises in both the

United States and Luxembourg, in accordance with the policies and criteria of

the respective purchasing agencies. Offers must satisfy requirements for

performance, quality, delivery, and cost. Where potential offerors or their

products must satisfy qualification requirements in order to be eligible for

award of a contract, each Party shall give full consideration to all applications

for qualification by sources in the other country, in accordance with the laws,

regulations, policies, and procedures and international obligations of the

procuring Party.

6. Provide information regarding requirements and proposed procurements in

accordance with Article V to ensure adequate time for industrial enterprises

of the other country to qualify for eligibility, if required, and to submit an

offer.

7. Ensure that technical data and defense items (defense articles and defense

services) made available for use by its industrial enterprises by the other

Party are not used for any purpose other than for bidding on, or performing,

defense contracts covered by this MOU, except as otherwise authorized in

writing.

8. Give full protection to proprietary rights and to any privileged, protected,

export-controlled, or classified data and information. In no event shall such

data, supplies or services be transferred to a third country or any other

transferee without the prior written consent of the originating Party.

9. Annually exchange statistics demonstrating the total monetary value of

defense procurements awarded to industrial enterprises of the other country

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during the prior year. An annual summary shall be prepared on a basis to be

decided jointly.

10. Provide appropriate policy guidance and administrative procedures within

its respective defense organizations to implement the provisions of this MOU.

11. Make every effort to avoid commitments that conflict with this MOU.

12. Establish, at the request of the procuring Party, arrangements and procedures

concerning follow-on logistics support of defense capability purchased

through procurements covered by this MOU. Both Parties shall make their

defense logistics systems and resources available for this purpose as required

and decided jointly.

D. This MOU is not intended to and does not create any authority to authorize the

export of defense items (defense articles or defense services), including technical

data, controlled on the U.S. Munitions List or U. S. Commerce Control List, the

Luxembourg Grand-Ducal Regulation, dated October 31, 1995, relating to the

import, export and transit of arms, munitions, and material serving a military

purpose, and the related technology, or on the European Union (EU) Common

List of Military Equipment. Further, any export subject to the U.S. Arms Export

Control Act and the International Traffic in Arms Regulations, the U.S.

International Emergency Economic Powers Act and Export Administration

Regulations, and any other applicable laws and regulations governing exports, or

in the case of defense items subject to the Luxembourg Grand-Ducal Regulation,

dated October 5, 2000, regulating export of dual use goods and technologies, and

other applicable laws and regulations governing exports, must be compliant with

all such laws, regulations, decrees, and guidelines.

E. A Party is not obligated to take a particular action under this MOU if the other

Party does not take reciprocal action.

F. Nothing in this MOU may be cited to prevent the implementation of necessary

export control provisions in individual cooperative project agreements or

arrangements.

ARTICLE III

Offsets

The Parties agree to discuss measures to limit any adverse effects that offset agreements

have on the defense industrial base of each country.

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ARTICLE IV

Customs and Duties

To the extent consistent with their national laws and regulations and international

obligations, the Parties agree that, on a reciprocal basis, they shall not include customs,

taxes, and duties in the evaluation of offers and shall waive their charges for customs

and duties for procurements to which this MOU applies.

ARTICLE V

Procurement Procedures

A. To the extent practicable, each Party shall publish, or have published, in a

generally available communication medium a notice of proposed purchases in

accordance with its national laws, regulations, policies, and procedures, and

international obligations. Any conditions for participation in procurements shall

be published in adequate time to enable interested industrial enterprises to

complete the bidding process. Each notice of proposed procurement shall contain,

at a minimum:

1. Subject matter of the contract;

2. Time limits set for an application for solicitation or submission of offers; and

3. An address from which solicitation documents and related information may

be requested.

B. Upon request, and in accordance with its laws, regulations, policies, procedures,

and international obligations, the procuring Party shall provide industrial

enterprises of the other country copies of solicitations for proposed purchases. A

solicitation shall constitute an invitation to participate in the competition and shall

include the following information:

1. The nature and quantity of the supplies or services to be procured;

2. Whether the procurement is by sealed bidding, negotiation, or some other

procedure;

3. The basis upon which the award is to be made, such as by lowest price or

otherwise;

4. Delivery schedule;
5. The address, time, and date for submitting offers as well as the language in

which they must be submitted;

6. The address of the agency that will be awarding the contract and will be

responsible for providing any information requested by offerors;

7. Any economic requirements, financial guarantees, and related information

required from suppliers;

8. Any technical requirements, warranties, and related information required

from suppliers;

9. The amount and terms of payment, if any, required to be paid for solicitation

documentation; and

10. Any other conditions for participation in the competition.

C. Consistent with its laws, regulations, policies, and international obligations, the

procuring Party shall, upon request, inform an industrial enterprise that is not

permitted to participate in the procurement process of the reasons why it is not

permitted to participate.

1D. Consistent with its laws, regulations, policies, and international obligations, the

procuring Party shall:

1. Promptly provide notification to each unsuccessful offeror that includes:

a. The name and address of the successful offeror;

b. Items, quantities, and price(s) of each contract award; and

c. The number of offers received.

2. Upon request, promptly provide unsuccessful offerors pertinent information

concerning the reasons why they were not awarded a contract.

E. Upon request, the procuring Party shall provide additional information to any

unsuccessful offeror that is dissatisfied with the explanation for rejection of its

offeror that may have further questions about the award of the contract. The

additional information shall, consistent with the procuring Party's laws, regulations,

policies, procedures, and international obligations, include information on the

characteristics and the relative advantages of the offer selected.

F. Each Party shall have published procedures for the hearing and review of complaints

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arising in connection with any phase of the procurement process to ensure that, to

the greatest extent possible, complaints arising under procurements covered by this

MOU shall be equitably and expeditiously resolved between an offeror and the

procuring Party.

ARTICLE VI

Industry Participation

A. Implementation of this MOU shall involve both the Parties and the industrial

enterprises of each country.

B. Each Party shall be responsible for informing the relevant industrial enterprises

within its country of the existence of this MOU.

C. The Parties understand that primary responsibility for finding business

opportunities rests with the industrial enterprises of each country.

D. The Parties shall arrange for their respective procurement and requirements offices

to be familiar with the principles and objectives of this MOU so that, consistent with

their normal practices and procedures, those offices may assist sources in the

country of the other Party to obtain information concerning proposed

procurements, necessary qualifications, and appropriate documentation.

ARTICLE VII

Security, Release of Information and Visits

A. Any classified information or material exchanged under the provisions of this MOU

shall be used, transmitted, stored, handled and safeguarded in accordance with the

U.S. - Luxembourg General Security of Military Information Agreement (GSOMIA)

of September 17, 1981. In the event of a conflict between the GSOMIA and this

MOU, the terms of the GSOMIA shall prevail.

B. Each Party shall take all lawful steps available to it to keep information exchanged in

confidence under this MOU free from disclosure under any legislative provision,

unless the other Party consents in writing to such disclosure.

C. To assist in providing the desired protection, each Party shall mark such information

furnished to the other Party with a legend indicating the country of origin, the

security classification, the conditions of release, the fact that the information relates

to this MOU, and, if unclassified, that it is furnished in confidence.

D. Information provided by either Party to the other in confidence, and information

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produced by either Party pursuant to this MOU requiring confidentiality shall be

safeguarded in a manner that ensures its proper protection from unauthorized

disclosures.

E. In accordance with the GSOMIA security procedures, each Party shall permit

visits to its establishments, agencies and laboratories, and contractor industrial

facilities, by employees of the other Party or by employees of the other Party's

contractor(s), provided that any visit is authorized by both Parties and the employees

have appropriate security clearances and a need to know.

F. All visiting personnel shall comply with security and export control regulations of

the host country. Any information disclosed or made available to visitors shall be

treated as if supplied to the Party sponsoring the visiting personnel, and shall be

subject to the provisions of this MOU.

ARTICLE VIII

Implementation and Administration

A. The Under Secretary of Defense (Acquisition, Technology, and Logistics) shall be

the responsible authority in the Government of the United States of America for

implementation of this MOU. The Ministry of Foreign Affairs shall be the

responsible authority of the Government of the Grand-Duchy of Luxembourg for

implementation of this MOU.

B. Each Party shall designate points-of-contact to represent its responsible

authority.

C. Meetings to discuss problems arising under this MOU shall be called on an

as-needed basis.

D. The representatives of each Party's responsible authority shall meet on a regular

basis to review progress in implementing this MOU. The representatives shall

discuss the research and development, production, procurement, and logistics

support needs of each country and the likely areas of cooperation in the

acquisition of defense capability; annually review the procurement statistics

exchanged, as agreed under Article II.C. 9. of this MOU; identify any prospective

or actual changes in national laws, regulations, policies, procedures, or

international obligations that might affect the applicability of any

understandings in this MOU; and consider any other matters relevant to this

MOU.

E. Each Party shall, as required, review the understandings established under this

MOU in light of any subsequent changes to its national laws, regulations,

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policies, procedures, and international obligations, including but not limited to

European Union directives and regulations, and shall consult with the other

Party to jointly decide jointly whether this MOU should be amended.

F. Each Party shall endeavor to avoid commitments that could conflict with this

MOU. If either Party believes that such a conflict has occurred, the Parties agree

to consult to seek resolution.

ARTICLE IX

Settlement of Disputes

Disputes between the Parties arising under or relating to this MOU will be resolved

only by consultation between the Parties and will not be referred to a national court, an

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

ARTICLE X

Amendments, Annexes, and Implementing Arrangements

A. Annexes may be added to this MOU by written agreement of the Parties. Such

Annexes shall be considered an integral part of this MOU.

B. This MOU, including its Annexes (if any), may be amended by written agreement of

the Parties.

C. Implementing arrangements regarding the provisions of this MOU, including its

Annexes (if any), may be negotiated by appropriate representatives of each Party.

Such arrangements may involve procedural matters, administrative direction and

guidance, but shall not create any substantive rights or obligations involving any

Party. Provisions of any implementing arrangement should be consistent with this

MOU. In the event of a conflict between this MOU and any implementing

arrangement, this MOU shall govern.

ARTICLE XI

Duration and Termination

This MOU shall enter into force on the date of the last signature and remain in force for

ten years. This MOU may be terminated by either Party upon six months prior written

notice to the other Party.

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IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective

Parties, have signed this MOU.

In two originals in the English language.

FOR THE GOVERNMENT OF THE

GRAND-DUCHY OF LUXEMBOURG,

THE MINISTER OF DEFENCE

Date: °C .-T-080W , so 1 0

Place: (gRu SC" 6E- L- 411.141

FOR THE GOVERNMENT OF THE

UNITED STATES OF AMERICA,

THE SECRETARY OF DEFENSE

Date: OC.7p IL/ , 2-c) I 0

Place: 644>ssci-s 6E1-4,u.7

FOR THE GOVERNMENT OF THE FOR THE GOVERNMENT OF THE

GRAND-DUCHY OF LUXEMBOURG, UNITED STATES OF AMERICA,

THE MINISTER OF DEFENCE THE SECRETARY OF DEFENSE

Jean-Marie Halsdorf Robert M. Gates

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