TRANSPORTATION PLANS FOR CLASSIFIED MATERIALS SHIPPED OVERSEAS

1. TRANSPORTATION PLANSFOR CLASSIFIED MATERIALS SHIPPED OVERSEAS PRESENTED BY: Pete Miller Lockheed Martin Missiles and Fire Control Field Office Chief, Jane Dinkel, Defense Security Service

2. PURPOSE • Identify what is a Transportation Plan and why it is necessary • Identify what regulatory requirement makes contractors develop Transportation Plans? • How is a Transportation Plan developed • Who is the approval authority for Transportation Plans • What happens to the Transportation Plan when it is provided to the Defense Security Service (DSS) • What coordination is required with Foreign Governments • What happens when the Transportation Plan is approved

3. Why Do We Need A Transportation Plan? • The National Industrial Security Program Operating Manual (NISPOM) Chapter 10 (International Transfers), paragraph 10-402 (Transfer of Freight), Section a (Transportation Plan {TP}): A requirement to prepare a TP shall be included in each arrangement that involves the international transfer of classified material as freight. The TP shall describe arrangements for the secure shipment of the material from the point of origin to the ultimate destination. The U.S. and recipient government Designated Government Representatives (DGR) shall be identified in the TP as well as any requirement for an escort.The TP shall provide for security arrangements in the event the transfer cannot be made promptly.When there are to be repetitive shipments, a Notice of Classified Consignment will be used. The contractor shall prepare a TP in coordination with the receiving government. This requirement applies whether the material is to be moved by land, sea, or air, and applies to U.S. and foreign classified contracts. After the CSA approves the TP, it shall be forwarded to the recipient foreign government security authorities for final coordination and approval.

4. Why Do We Need A Transportation Plan? • A foreign government or contractor may return classified material to a U.S. contractor for repair, modification, or maintenance. The approved methods of return shall be specified in either the GCA sales arrangement, the security requirements section of a direct commercial sales arrangement, or, in the case of material transferred as freight, in the original TP. The contractor, on receipt of notification that classified material is to be received, shall notify the applicable CSA.

5. Multinational Industrial Security Working Group(MISWG) • Multinational Industrial Security Working Group (MISWG)With the advent in recent years of the congressional mandate for the Department of Defense to consider and engage in international cooperative programs, there were increasing numbers of international programs that were not NATO programs. These new programs did involve NATO member nations. To ease security arrangements for these programs, a supplemental set of procedures were developed by the Multinational Industrial Security Working Group (MISWG). MISWG was formed in 1986, and is comprised of NATO members (except Iceland). Since its formation, MISWG has developed 20 documents containing policies and procedures to be applied to various security-related functions arising from international cooperative projects involving the members of MISWG. Although initially developed to standardize procedures among NATO member nations working jointly on a non-NATO project, MISWG documents contain procedures that may be used in any bilateral or multilateral program or project. • See MISWG Handouts

6. How Do We Start • Determine what is the contractual requirement to ship classified materials overseas • Foreign Military Sale (FMS) • Normally TP is not required as the sale is to the U.S. Government • Normally DSS is not involved in the TP process • However, if stipulated in the contract that contractor produces AND exports product, then contractor must be included in Letter of Agreements (DSS has no cog over LOAs) with the appropriate Military Agency. • LOA should indicate Freight Forwarder and TP approval by CSA/ Military Agency • Direct Commercial Sale (DCS) • TP is required

7. How Do We Start • Is there a current Export License (DSP 85) in place authorizing the transfer of technology and the required documentation is in place • Notify DSS that a TP is required to facilitate a classified shipment overseas • To let them know if the requirement • To alert them of impending shipments if they serve as the (DGR) • If not notify the servicing DGR • DSS • DCMA • Contractor DGR • Ensure security assurances are in place if foreign contractors are used to facilitate the shipment(s)

8. Developing the Plan • Use the MISWG TP format as it continues to meet DSS requirements • “Put on your thinking cap and be creative” when developing contingency plans and scenarios • Do not be afraid to talk to DSS about the development of a TP format and the approval process • Make sure that all the information in the plan is accurate

9. Developing the Plan • Make you plan realistic and ensure that the program management for the classified being shipped is involved • Don’t promise more that you can deliver • Remember that the TP approval process takes time and shipment milestones do not drive the U.S. and Foreign Government approval process • Plan on 30-45 days for approval of the plan • They can be approved in a more timely fashion if the plan is complete

10. Developing the Plan • Ensure the Cover page of the TP is accurate • Identify the program, the contract number, the purpose and duration of the plan in the introduction block of the TP • Accurately describe the materials (consignment) being shipped. • Should match the nomenclature of the Export License • Can be listed in the appropriate Annex of the TP • If the materials listed in the plan change the plan must be reapproved • List the POC data for Government and contractor personnel who may participate in the shipment of classified materials. • Ensure that the points of origin/ embarkation and arrival/ final destination are noted in the plan • Accurately describe the process for shipping the classified materials to include the mode of transportation, transfer points security arrangements, additional security arrangements at transfer/shipping points

11. Developing the Plan • Accurately identify POC information on any commercial entities involved in the classified shipment • Present the routing, by segment, of the shipment from point of origin to final destination • Can be presented in individual paragraphs • Maps • Combination of above • The courier process must be described in enough detail to ensure the approval authorities that the materials will be safeguarded IAW each countries requirements • Appropriately cleared and Need-To-Know established • Adequately trained on courier duties for all modes of transportation • Covers last on and first off policy • Be familiar with customs process

12. Developing the Plan • Accurately describe the transmission process as found in Section J of the MISWG • This is where the contingency plans are placed to cover all “strange and unique” situations • Location of cleared overnight storage if flights are diverted or cancelled • Describe the packaging of the shipment • Special Requirements • TPs can have be approved for shipments to and from U.S. and foreign classified locations on the same plan • But, the materials shipped each way must be reflected in the plan • If the materials change the plan must be reapproved • The timeline for the approval process could be shorter • Unless the safeguard requirements change

13. Developing the Plan • Good TPs have an annex that covers emergency notifications for all contingencies • Identification of law enforcement agencies • Identification of Department of State Regional Security Officer (RSO) • Identification of DSS personnel • Identification of companies FSOs and program management

14. What Happens To The Plan When It Is Released To DSS • The DSS International Security Office conducts a through review of the Transportation Plan to ensure that it meets all their requirements • If the Transportation Plan has elements that require more information or does not meet the requirements established by DSS or the Cognizant Security Agency of the receiving country the Transportation Plan will be returned to the originator • If the Transportation Plan meets the requirements established by DSS and the Countries Cognizant Security Agency of the receiving country it will be forwarded to the receiving countries Cognizant Security Agency for review and approval.

15. What Happens To The Plan When It Is Released To DSS • If the Transportation Plan does not meet the requirements of the foreign Countries Cognizant Security Agency the plan shall be returned to DSS and ultimately the originator for reaccomplishment • If the Transportation Plan meets all the requirements the foreign Countries Cognizant Security Agency shall notify DSS in writing that the plan is approved • DSS then notifies the contractor, in writing, that the plan is approved • The originator can then implement all elements of their Transportation Plan

16. What Happens To The Plan When It Is Released To DSS • Contractors should remember that there is no established timeline for the Transportation Plans to be approved • This means that Transportation Plans should be prepared well in advance to ensure that enough time is given for the plan to make its way through the contractor, DSS and Foreign Country Cognizant Security Authorities administrative processes • A good rule of thumb is to allow for 30-45 days for the plan move through the approval to process

17. What Responsibility Does the Foreign Government or Contractor Have To Protect The Classified Materials? • The Foreign Government and contractors must protect the classified materials IAW international agreements • The same way as they protect their classified materials • Or if our requirements are more restrictive IAW our requirements. • They must utilize Need-To-Know • They must follow the guidelines in the approved Transportation Plan and can not deviate or improvise

18. Now That The Plan Is ApprovedWhat Happens? • DSS conducts periodic checks of the Transportation Plan to see if it is still required, if the requirements are being met and if there are any additions or deletions are required. • Changes in materials to be shipped, new freight forwarder, different personnel involved, etc • Changes to Government security requirements • Provides an excellent opportunity for DSS and the sending contractor to determine if the contractor could qualify to have one of their security professionals qualifies to become a Designated Representative.

19. Now That The Plan Is ApprovedWhat Happens? • If the contractor is approved the contractor DGR process they must follow the guidelines established by DSS • Training of DGRs • Notification of DSS

20. Conclusion • The development of a Transportation Plan is not difficult, but, it can be time consuming • You MUST ensure that you have given due consideration to all elements of the plan and associated contingencies • Keep DSS abreast of the need for a plan and how you intend to protect classified materials while enroute • Always use your DSS Industrial Security Representative as “Sounding board” for the different elements of your plan

21. Conclusion • Remember to allow enough time for the development and approval of the Transportation Plan • Don’t let “Murphy’s Law” complicate the approval process • Attempt to think of any possible scenarios that could complicate the movement of classified materials between a U.S. and a foreign Government or contractor facility. • Don’t be disappointed if the Transportation Plan is returned for more information and use the experience to grow professionally

22. Questions? • Comments? Thank you

23. The End