TREATIES AND OTHER INTERNATIONAL ACTS SERIES 17-410

________________________________________________________________________

DEFENSE

Procurement

Agreement Between the

UNITED STATES OF AMERICA

and LATVIA

Signed at Washington April 10, 2017
 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.”
 LATVIA

 Defense: Procurement

 Agreement signed at Washington

 April 10, 2017;

 Entered into force April 10, 2017.

 

 
A RECIPROCAL DEFENSE PROCUREMENT AGREEMENT 


BETWEEN THE 


GOVERNMENT OF THE UNITED STATES OF AMERICA 


AND THE 


GOVERNMENT OF THE REPUBLIC OF LATVIA 


SHORT TITLE: U.S. - LATVIA RECIPROCAL DEFENSE 


PROCUREMENT AGREEMENT 


PREAMBLE 


The Government ofthe United States ofAmerica and the Government ofthe Republic ofLatvia, 


hereinafter referred to as the "Parties"; 


BEARING in mind each country's partnership in the North Atlantic Treaty Organization; 


DESIRING to promote the objectives ofrationalization, 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 procurements ofthe other; 


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


DESIRING to promote the exchange of defense technology consistent with their respective 


national policies; 


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


defense; and 


DESIRING to remove discriminatory barriers to procurements ofsupplies and services produced 


by industrial enterprises ofthe other country to the extent mutually beneficial and consistent with 


national laws, regulations, policies, and international obligations; 


HAVE agreed as follows: 


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ARTICLE I 


Applicability 


1. This Agreement covers the acquisition of defense capability by the Department of Defense of 

the United States ofAmerica and the Ministry ofDefense ofthe Republic of Latvia through: 

a. Research and development; 

b. Procurements of supplies, including defense articles; and 

c. Procurements ofservices, in support of defense articles. 

2. This Agreement does not cover either: 

a. Construction; or 

b. Construction material supplied under construction contracts. 

ARTICLE II 


Principles Governing Mutual Defense Procurement Cooperation 


l. 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 that its processes are consistent with the procurement procedures in Article V 

(Procurement Procedures) ofthis Agreement. 

2. Each Party undertakes the obligations in this Agreement with the understanding that it will 

obtain reciprocal treatment from the other Party. 

3. Each Party shall, consistent with its national 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. 

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

Party shall: 

4.1. 	 Facilitate defense procurement while aiming at a long term equitable balance in their 

purchases, taking into consideration the capabilities of its defense industrial and 

research and development bases. 

4.2. 	 Remove barriers both to procurement and to co-production of supplies produced in the 

other country or services performed by sources (herein referred to as "industrial 

enterprises") established in the other country. This includes providing to industrial 

enterprises ofthe other country treatment no less favorable than that accorded to 

domestic industrial enterprises. When an industrial enterprise ofthe other country 

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

application of any buy-national requirements, both Parties agree to waive the buynational requirement. 

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4.3. Utilize contracting procedures that allow all responsible industrial enterprises of both 

countries to compete for procurements covered by this Agreement. 

4.4. 	 Give full consideration to all responsible industrial enterprises in both the United States 

and the Republic of Latvia, in accordance with the policies and criteria ofthe respective 

procuring 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, the procuring Party shall 

give full consideration to all applications for qualification by industrial enterprises of 

the other country, in accordance with the national laws, regulations, policies, 

procedures, and international obligations ofthe procuring Party. 

4.5. 	 Provide information regarding requirements and proposed procurements in accordance 

with Article V (Procurement Procedures) ofthis Agreement to ensure adequate time for 

industrial enterprises ofthe other country to qualify for eligibility, ifrequired, and to 

submit an offer. 

4.6. 	 Inform industrial enterprises choosing to participate in procurements covered by this 

Agreement ofthe restrictions on technical data and defense items (defense articles and 

services) made available for use by the other Party. Such technical data and defense 

items made available by the contracting Party shall not be used for any purpose other 

than for bidding on, or performing, defense contracts covered by this Agreement, 

except as authorized, in writing, by those owning or controlling proprietary rights, or 

furnishing the technical data or defense items. 

4.7. 	 Give full protection to proprietary rights and to any privileged, protected, exportcontrolled, 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 ofthe originating Party. 

4.8. 	 Exchange information on pertinent laws, implementing regulations, policy guidance, 

and administrative procedures. 

4.9. 	 Annually exchange statistics demonstrating the total monetary value of defense 

procurements awarded to industrial enterprises ofthe other country during the prior 

year. An annual summary shall be prepared on a basis to be jointly decided. 

4. l 0 	 Provide appropriate policy guidance and administrative procedures within its respective 

defense organizations to implement this Agreement. 

5. This Agreement 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 by one 

or the other Party according to its applicable export control laws and regulations. Further, any 

export subject to any applicable national export control laws and regulations of one ofthe 

Parties, must be compliant with such laws and regulations. 

6. Nothing in this Agreement may be cited to prevent the implementation of necessary export 

control provisions in individual cooperative project agreements or arrangements. 

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ARTICLE Ill 


Offsets 


This Agreement does not regulate offsets. The Parties agree to discuss measures to limit any 

adverse effects that offset agreements have on the defense industrial base of each country. 

ARTICLE IV 


Customs, Taxes, and Duties 


When allowed under national laws, regulations, and international obligations of the Parties, 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 Agreement applies. 

ARTICLEV 


Procurement Procedures 


I . Each Party shall proceed with its defense procurements in accordance with its national laws 

and regulations and international obliga~ions. 

2. To the extent practicable, each Party shall publish, or have published, in a generally available 

communication medium a notice ofproposed procurements in accordance with its laws, 

regulations, policies, 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 ofproposed procurement shall contain, at a 

minimum: 

a. 	 Subject matter ofthe contract; 

b. 	 Time limits set for requesting the solicitation and for submission of offers; and 

c. 	 An address from which solicitation documents and related information may be 

requested. 

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

international obligations, the procuring Party shall provide industrial enterprises ofthe other 

country copies of solicitations for proposed procurements. A solicitation shall constitute an 

invitation to participate in the competition and shall include the following information: 

a. 	 The nature and quantity ofthe supplies or services to be procured; 

b. 	 Whether the procurement is by sealed bidding, negotiation, or some other procedure; 

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

d. 	 Delivery schedule; 

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e. 	 The address, time, and date for submitting offers as well as the language in which they 

must be submitted; 

f. 	 The address ofthe agency that will be awarding the contract and will be responsible for 

providing any information requested by offerers; 

g. 	 Any economic requirements, financial guarantees, and related information required 

from suppliers; 

h. 	 Any technical requirements, warranties, and related information required from 

suppliers; 

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

documentation; 

j. 	 Any other conditions for participation in the competition; and 

k. 	 The point of contact for any complaints about the procurement process. 

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

Party shall, upon request, inform an industrial enterprise that is not allowed to participate in the 

procurement process ofthe reasons why. 

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

Party shall: 

5.1. Upon award of a contract, promptly provide notification to each unsuccessful offeror 

that includes, at a minimum: 

a. The name and address of the successful offerer; 

b. Price of each contract award; and 

c. The number of offers received. 

5.2. Upon request, promptly provide unsuccessful offerers pertinent information 

concerning the reasons why they were not awarded a contract. 

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

in connection with any phase ofthe procurement process to ensure that, to the greatest extent 

possible, complaints arising under procurements covered by this Agreement shall be equitably 

and expeditiously resolved. 

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ARTICLE VI 


Industry Participation 


1. Successful implementation ofthis Agreement shall involve both Parties. To ensure that the 

Agreement benefits each Party's industrial enterprises choosing to participate in the 

procurements covered by this Agreement, each Party shall provide information concerning this 

Agreement to its industrial enterprises. 

2. Each Party shall be responsible for informing the relevant industrial enterprises within its 

country ofthe existence of this Agreement. 

3. The Parties understand that primary responsibility for finding business opportunities rests 

with the industrial enterprises of each country. 

4. The Parties shall arrange for their respective procurement and requirements offices to be 

familiar with the principles and objectives of this Agreement so that, consistent with their normal 

practices and procedures, those offices may assist industrial enterprises in the country ofthe 

other Party to obtain information concerning proposed procurements, necessary qualifications, 

and appropriate documentation. 

ARTICLE VII 


Security, Release of Information, and Visits 


1. Any classified information or material exchanged under the provisions of this Agreement 

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

between the Government of the United States ofAmerica and the Government of Republic of 

Latvia Concerning Security Measures for the Protection of Classified Military Information, 

which entered into force January 15, 1998. 

2. Both Parties shall take all necessary steps to ensure that industrial enterprises within their 

respective country comply with the applicable regulations pertaining to security and 

safeguarding of classified information. 

3. Each Party shall take all lawful steps available to it to keep unclassified information 

exchanged in confidence under this Agreement free from disclosure unless the other Party 

consents in writing that the first party need not take all lawful steps to keep such information free 

from disclosure. 

4. 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 

contractors, provided that the visit is authorized by both Parties and the employees have 

appropriate security clearances and a need-to-know. 

5. Requests for visits will be coordinated through official channels and will conform to the 

established visit procedures ofthe host Party. All visiting personnel shall comply with security 

and export control regulations ofthe host country. Any information disclosed or made available 

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

personnel and shall be subject to the provisions ofthis Agreement. 

ARTICLE VIII 


Implementation and Administration 


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

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

this Agreement. The Undersecretary of State for Logistics shall be the responsible authority in 

the Government ofthe Republic of Latvia for implementation ofthis Agreement. 

2. Each Party shall designate points of contact to represent its responsible authority. 

3. The representatives of each Party's responsible authority shall meet on a regular basis to 

review progress in implementing this Agreement. The representatives shall discuss procurement 

methods used to support effective co-operation in the acquisition of defense capability; annually 

review the procurement statistics exchanged as agreed under subparagraph 4.8. of Article II 

(Principles Governing Mutual Defense Procurement Cooperation) of this Agreement; identify 

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

international obligations that might affect the applicability of any understandings in the 

Agreement; and consider any other matters relevant to the Agreement. 

4. Each Party shall, as required, review the principles and obligations established under this 

Agreement in light of any subsequent changes to its national laws, regulations, policies, and 

international obligations, including but not limited to European Union directives and regulations, 

and shall consult with the other Party to decide jointly whether this Agreement should be 

amended. 

5. Each Party shall endeavor to avoid commitments that could conflict with this Agreement. If 

either Party believes that such a conflict has occurred, the Parties agree to consult to seek 

resolution. 

ARTICLE IX 


Annexes and Amendments 


I . Annexes may be added to this Agreement by written agreement ofthe Parties. In the event 

of a conflict between an Article of this Agreement and any of its Annexes, the language in the 

Agreement shall prevail. 

2. This Agreement, including its Annexes (if any), may be amended by written agreement ofthe 

Parties. 

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ARTICLEX 


Entry into Force, Dwation, and Termination 


1. This Agreement shall enter into force upon signature by both Parties and shall remain in 

force for five years, and be extended automatically for successive five-year periods unless 

temrinaied by either Party upon six months prior written notice to the other Party. 

2. Tennination ofthis Agreement shall not affect contracts entered into during the tenn ofthis 

Agreement. 

IN WITNESS WHEREOF, the duly authorized representatives ofthe Parties have signed this 

Agreement. 

Pye-\ \ 2017 ,in the English language. 

~Y)~ 

UFOR TIIE~VERNMENT OF THE 

UNITED STATES OF AMERICA 

SECRETARY OF DEFENSE 

~--/ FOR TIIE ~VERNMENT OF THE 

REPUBLIC OF LATVIA 

l4!Nlf1l:R or /J£FENU OF 111£" 

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