Josh Winfrey, CPA’s Post

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We’re now in the last two weeks of comment periods for both the EAR and ITAR AUKUS exemptions proposed rules, with the EAR amendment comment period ending June 3, and the ITAR comment period ending at the end of next week, May 31. So far, the comments have been limited (five public EAR comments, five ITAR). This is possibly surprising as to the proposed ITAR exemption, because of the breadth of the exclusions to the ITAR exemption. You read that right—while the rule generally exempts trade with Australia and the UK (if certified by the State Department) from ITAR licensing requirements, the proposed Supplement No. 2 to ITAR Part 126 specifically limits that exemption by excluding a wide range of defense items. Most notable is the almost complete exclusion of Missile Technology Control Regime (MTCR) articles and directly related technical data and defense services. The minute specificity of other exclusion listings will probably impose some compliance burden for first time entrants unsure of their item’s classification. Interestingly, none of the posted ITAR comments at Regulations.gov (https://lnkd.in/eJuNjduG) have addressed the broad MTCR exclusion or the overall exclusion scheme. All of this adds up to an exemption that, if finalized as currently drafted, would leave cross-border contractors to the AUKUS partnership with an ITAR regime where compliance measures look pretty similar to before. That revised regime will still open up many new opportunities for cross-border contracting, but it would remain in the way of the stated AUKUS goal of a shared industrial base across the partner countries. #AUKUS #ITAR #EAR #DDTC #exportcontrols #govcon Ryan Berry Daniel Ward Ryan Bradel Amanda Merced Eric Kronman Michael Hatch Tyson Marx Camille Chambers Chelsea Padgett Matthew Saliman Nicholas Perry Brian Yu

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Potentially big news for veteran-owned small businesses in the current House draft of the 2025 National Defense Authorization Act. The bill would: (1) require DOD to establish a VOSB prime contracting goal no less than the governmentwide SDVOSB goal (currently 5 percent) and (2) authorize DOD to use VOSB set-asides and sole source contracts to reach this goal. Currently, VA is the only agency with authority to issue VOSB set-aside and sole source contracts (as opposed to SDVOSB). This is still a draft and has a long way to go before it potentially becomes law, but it’s certainly something I will be keeping an eye on. #govcon #governmentcontracting #federalcontracting #VOSB #veteranowned