TREATIES AND OTHER INTERNATIONAL ACTS SERIES 09-1003 

________________________________________________________________________ 

DEFENSE 

Procurement 

 Memorandum of Understanding 

Between the 

UNITED STATES OF AMERICA 

and FINLAND 

Signed at Helsinki and Washington 

June 13 and August 5, 2008 

 

 
 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.” 
 FINLAND 

 Defense: Procurement 

 Memorandum of understanding signed at 

 Helsinki and Washington 

 June 13 and August 5, 2008; 

 Entered into force October 3, 2009. 
MEMORANDUM OF UNDERSTANDING

BETWEEN

THE GOVERNMENT OF THE UNITED STATES OF AMERICA

AND

THE GOVERNMENT OF THE REPUBLIC OF FINLAND

CONCERNING

RECIPROCAL DEFENSE PROCUREMENT

(SHORT TITLE: US-FINLAND RECIPROCAL DEFENSE PROCUREMENT MOU)

PREAMBLE

The Government of the United States of America and the Government of the Republic

of Finland, hereinafter referred to as "the Parties",

BEARING in mind that Finland is a militarily non-allied country and the membership

of the United States in the North Atlantic Treaty Organization;

DESIRING to proniote the objectives of rationalization, standardization,

interoperability, and mutual logistics support throughout their defense relationship;

RECOGNIZING their longstanding relationship as represented by the Memorandum of

• Understanding concerning Reciprocal Principles in Defense Procurement signed in

Washington on October 24,1991;

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 promote the exchange of defense technology consistent with their

respective national policies;

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

defense; and
DESIRING to remove discriminatory barriers to procurements of 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

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

capability by the Department of Defense of the United States of America and the

Ministry of Defense of Finland through:

t. Research and development

2. Procurements of supplies, including defense articles; and

3. Procurements of services, including defense services.

B. This MOU does not cover:

I . Construction; or

2. Construction material supplied under construction contracts.

ARTICLE U

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 that its processes are consistent with the

implementing procedures in Article V.

B. Each Party undertakes the obligations in this MOU with the understanding that it

will obtain reciprocal treatment from the other Party.

C. 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

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

Party shall:

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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.

2. Remove barriers to procurement or 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 of the other country treatment no less

favorable than that accorded to domestic industrial enterprises. When a

responsible industrial enterprise of the other country submits an offer that

would be, the low responsive offer but for the application of any 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. Give full consideration to all responsible industrial enterprises in both the

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

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, each Party shall give full consideration to all applications

for qualification by industrial enterprises of the other country, in accordance

• with the laws, regulations, policies, procedures, and international obligations of

the procuring Party.

5. Provide information regarding requirements and proposed procurements in

accordance with Article V to ensure adequate time for industrial enterprises of

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

6. 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 authorized, in writing, by those

owning or controlling proprietary rights.

7. 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.

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

guidance, and administrative procedures.

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

procurements awarded to industrial enterprises of the other country during the

prior year. An mutual summary shall be prepared on a basis to be jointly

decided.

10.Provide appropriate policy guidance and administrative procedures within its

respective defense organizations to implement the provisions of this MOU.

11. 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

jointly decided.

S. 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 dati,

controlled on the U.S. Munitions List or U.S. Commerce Control List, or in the case of

Finland, on the Decision of the Ministry of Defence on the implementation of the Decree

on the Export and Transit of Defence Materiel 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 Anus Regulations, or the US. International

Emergency Economic Powers Act and Export Administration Regulations, and any

other applicable laws and regulations governing exports, or in the case of Finland,

subject to the Decree on Export and Transit of Defence Materiel and the General

Guidelines for the Export and Transit of Defence Materiel, and other applicable laws

and regulations governing exports, must be compliant with such laws, decrees,

regulations, and guidelines.

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 M

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 and Duties

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

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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 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 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 procurements. .A solicitation shall

constitute an invitation to participate in the competition and shall include the following

information:

1. The nature and quantity of the suppliei 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;

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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 allowed

to participate in the procurement process of the reasons why. •

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

procuring Party shall:

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 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 dissatisfied with the explanation for rejection of its offer or 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 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.

ARTICLE VI

Industry Participation

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A. Implementation of this MOU shall involve both the Governments 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

A. Any classified information furnished by either Party in connection with

procurements subject to this MOU shall be protected in accordance with the Agreement

between the Government of United States of America and the Government of Finland

Governing the Protection of All Classified Military Information, effected by exchange of

notes at Helsinki on October 11, 1991; as it may be amended, and the Supplemental

Agreement thereto.

B. Both Parties shall take all necessary steps to ensure industrial enterprises within

their respective country comply with applicable regulations pertaining to security and

safeguarding of classified information.

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 Minister of Defense, represented by the Director

General of the Resource Policy Department shall be the responsible authority in the

Government of the Republic of Finland for implementation of this MOU.

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

C 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

research and development, production, procurement, and logistics support needs of

each country and the likely areas of co-operation in the acquisition of defense
•

capability; annually review the procurement statistics exchanged as agreed under

Article II.D.9.; identify any prospective or actual changes in national laws, regulations,

policies, procedures, or international obligation that might affect the applicability of

any understandings in the MOU; and consider any other matters relevant to the MOU.

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

MOU 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 MOU

should be amended.

E. 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

Annexes, Amendments, 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 provision of this MOU, including its

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

arrangements may involve procedural matters and administrative direction and

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

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

MOU. In the event of conflict between this MOU and: any implementing arrangement,

this MOU, as it may be amended, shall govern.

ARTICLE X

Duration and Termination

A. The Government of the Republic of Finland shall notify the Government of the

United States of America of the completion of the national measures necessary for the

entry into force of this MOU. This MOU shall enter into force on the day specified in

such notification.

B.This MOU shall remain in force for ten years. This MOU may be terminated by either

Party upon six months prior written notice to the other Party.
C. On the date of entry into force of this MOU, the Memorandum of Understanding

between the Government of the United States of America and the Government of

Finland Concerning Reciprocal Principles in Defense Procurement of October 24, 1991

shall terminate.

IN WITNESS WHEREOF, the duly authorized representatives of the Parties have

signed this MOU,

in two originals in the English language.

FOR THE GOVERNMENT OF THE FOR THE GOVERNMENT OF

UNITED STATES OF AMERICA THE REPUBLIC OF FINLAND

Date: f it IP .' Zbe4'

Place P-est CAU 

NOTIFICATION

The Government of the Republic of Finland hereby notifies the Government of the

United States of America that it has completed ib national measures necessary for this

MOM to irktp force, and that this MOU shall thereby titer into force on

lanenter date 30 days after date df signature below by Finnish official].

FOR THE GOir;, IN OF THE REPUBLIC OF FINLAND

Lar Date: Cr s Place kit. PC

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