MALCOLM BURKE REGIONAL MANAGER FOR SOUTHEAST …

MALCOLM BURKE

REGIONAL MANAGER FOR SOUTHEAST ASIA

ADVOCACY CENTER

U.S. DEPARTMENT OF COMMERCE

Malcolm Burke is Regional Manager for Southeast Asia at the Advocacy Center of the

U.S. Department of Commerce. In this position, he develops and coordinates U.S.

government diplomacy and advocacy efforts to support U.S. exporters competing for

commercial and defense procurements within the region. He has served in this capacity

at the U.S. Embassy in Hanoi, and as a Brookings Fellow in the office of U.S. Senator

Mike Crapo, Idaho (R).

Prior to the Advocacy Center, Mr. Burke was a Trade Specialist in the Department’s

Import Administration, where he investigated and adjudicated numerous antidumping and

countervailing duty proceedings concerning imports from Southeast Asia and the

People’s Republic of China. Before his federal government service, Mr. Burke was an

attorney in private practice, and a CPA with Arthur Andersen.

Mr. Burke is a graduate of Washington & Lee University, earning both a Bachelor’s

degree and a Juris Doctorate from the school.

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The Advocacy Center

The Advocacy Center exists at the intersection between business

and foreign policy, where commercial diplomacy efforts are required

to let U.S. business compete fairly.

Our mission is to coordinate U.S. Government resources and

authority in order to level the playing field on behalf of U.S. business

interests as they compete against foreign firms for specific

international public contracts, both civilian and defense sales.

The Advocacy Center also has Commercial Service liaisons to five

Multilateral Development Banks to assist U.S. firms and advocate

on their behalf when they compete for Bank tenders.

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• Government-to-Government (G2G)

• A counter weight to foreign government political pressure

• Intended to promote fairness in the tender processes

The Advocacy Center and Guidelines were developed for

project- focused, company specific issues.

USG Advocacy is:

Advocacy vs. Policy

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Issues below are NOT Trade Advocacy:

• Market Access Issues

• Enforcement of Treaties/Trade Agreements

• Overall Business Climate

• Judicial/Arbitral Actions

• Routine Commercial Assistance

Advocacy Process

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•Advocacy Questionnaire

• Anti-Bribery Agreement

• Due Diligence

• National Interest Determination

• Creation of Appropriate Advocacy Strategy

• Coordination of the Message and Medium of Advocacy

Advocacy Questionnaire - Defense Advocacy Cases

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•Project Description:

•Type of Project / Transaction (Specifies FMS vs. DCS for Defense Sales)

•Estimated Total Value

•Estimated U.S. Content

•Project Partners and/or Bidder-of-Record

•Overall Effect on U.S. Economy

•USG Export License Information

•Type of Assistance Requested

• Expected Decision Date

• Foreign Government Decision-Maker

• Potential Competitors

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Anti-Bribery Agreement

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• Attached to the Advocacy Questionnaire

• Signed by the Bidder of Record

• Attesting that the company and its affiliates:

� Have not and will not engage in the bribery of foreign publicofficials in connection with the matter for which advocacy assistance is being sought; and

� Maintain and enforce a policy that prohibits the bribery of foreign public officials

• Advocacy Questionnaire and Anti-Bribery Agreement can beaccessed at http://www.export.gov/advocacy/

National Interest Determination - Commercial

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• Based on Material Benefit to the U.S. Economy

•When the U.S. content is less than 50% of total value, other considerations include:

• U.S. Materials and Equipment Content;

• U.S. Labor Content;

• Contribution to the U.S. Technology Base (including R&D);

• Repatriation of Profits to U.S. Economy; and

• Potential for Follow-On Business Benefiting U.S. Economy.

•All companies that apply for advocacy and whose bids are deemed to be in the U.S.

National Interest shall be advocated for equally.

Defense Advocacy Basics

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• In December 2007 certain responsibilities were transferred from the Commerce Department’s Bureau of Industry and Security (BIS) to the Advocacy Center.

•Advocacy Center is now the point of contact for defense-related projects and procurements and coordinating advocacy on approved requests.

•BIS remains part of the advocacy process by handling the interagency review process and making the national interest determination for defense-related requests.

•A “defense-related” project or procurement is generally defined as one where the items being offered by a U.S. company are ITAR-controlled.

•If there is more than one U.S. interest, even if that interest hasn’t applied for advocacy, the position is to provide generic advocacy for all U.S. interests.

Department of Defense’s Role

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•DoD assesses impact of the potential sale from national security, foreign policy, national disclosure, and export licensing perspectives, providing input into the national interest determination process for each defense trade advocacy case.

•DoD does an intra-agency review of these factors and provides a consolidated position to BIS.

•Once an advocacy request is approved, DoD retains a key role in follow-on advocacy efforts. The AC will coordinate these efforts with DoD.

•The Embassy’s Office of Defense Cooperation is a key partner in doing due diligence on defense-related advocacy requests and advocating for companies.

How Do We Advocate?

Engagement by Senior USG Officials with overseas

governments that may take the form of:

• Official correspondence

• Focused meeting / in-person advocacy

• Talking point in bi-lateral meeting / dialogue

• Press release or meeting with foreign press

Advocacy Strategies

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The Advocacy Center is the gateway to U.S. Government Advocacy at

various levels. Advocacy is always government-to-government and

typically addressed to the advocating official’s direct counterpart

Senior Commercial Officer

• Staff-level decision-makers

• Sub-cabinet officials

Ambassador

•Ministers, Cabinet-level officials

• Chief executives at the sub-national-level

Cabinet Secretary

•Ministers, Cabinet-level officials

President

•Heads of State

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Advocacy Win-Boeing

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On June 6, India’s Cabinet Committee on Security officially approved an

Indian Air Force decision to purchase of 10 Boeing C-17 Globemaster III

military transport aircraft, including options to purchase four additional

aircraft, through a government-to-government FMS agreement. Without this

or other orders, Boeing would have commenced shutdown of its C-17

production facility in Long Beach, CA. Boeing reports that each C-17

supports 650 suppliers across 44 U.S. states and that this order will support

Boeing’s C-17 production facility for an entire year. This transaction is

valued at approximately $4.1B, with 100 percent U.S. export content.

President Obama advocated for the Boeing during a November 2010 trip to

India. After the President’s public show of support for the transaction, U.S.

Government officials, including former Commerce Secretary Locke, State

Assistant Secretary Blake and U.S. Ambassador Roemer, urged the Indian

Government to expedite approval of the sale.

For Internal USG Use Only

Advocacy Win-Sikorsky and Lockheed Martin

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On June 16, the U.S. Embassy Canberra informed the Advocacy Center that

the Australian Minister of Defense Stephen Smith made a formal

announcement that Sikorsky Aircraft Corporation (Stratford, CT) and

Lockheed Martin (Bethesda, MD) have been awarded the contract to supply

24 MH-60R Seahawk helicopters to the Royal Australian Navy, a bid valued

at approximately $3.0B, with 100 percent U.S. export content. The

Advocacy Center coordinated a number of USG interagency advocacy efforts

on behalf of the companies including advocacy from Defense Secretary

Gates, Secretary of State Clinton, Secretary of Commerce Locke, Treasury

Deputy Secretary Wolin, and ITA U/S Sánchez. In addition, U.S.

Ambassador Bleich, Chief of Naval Operations Admiral Roughead, and a

seven-member CODEL to Australia led by U.S. Representative Don

Manzullo (IL) have advocated at the highest levels of the Australian

government for the companies.


SME Advocacy Win-Global Environmental Services Inc.

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On December 12, 2011, Global Environmental Services Inc (GESI, Lawrence

Township, NJ) signed a contract for a 20 year concession to operate and

control the Mohammedia Landfill in Morocco. GESI has been approved for

advocacy for this project since October 2010. The U.S. Chargé d’Affaires

sent an Advocacy letter to the Governor of Mohammedia in December

2010, and the Consular General raised this project in November 2011 during

a meeting with the Governor.

The total value of this project is $40 million, with $30 million in U.S. export

content, supporting approximately 166 jobs in the U.S. GESI is an SME.


http://www.export.gov/advocacy

Main Line: 202-482-3896

Advocacy Center Website

•Staff Listing

•Advocacy Guidelines

•Advocacy Questionnaire and Anti-Bribery Agreement

FORM ITA-4133P OMB Control No. 0625-0220 Page 1 of 6 Expires 11/30/2012

ADVOCACY QUESTIONNAIRE

United States Government advocacy decisions are made on the basis of the best information available. To assist us in responding effectively to your company's request for advocacy, please submit this Questionnaire (including the information requested on the following pages) and other relevant materials to your USG contact or to the Advocacy Center (“AC”), U.S. Department of Commerce, Room 3814A, Washington, D.C. 20230, Phone: (202) 482-3896, Fax: (202) 482-3508. Please also complete the attached “Agreement Concerning Bribery and Corporate Policy Prohibiting Bribery.” This Questionnaire should be completed by the bidder for the project, except in special circumstances as determined by the AC. Subcontractors or suppliers should not complete this form unless requested by the AC. If you are awarded a project for which USG advocacy has been provided, the Advocacy Center may follow-up to assess the effectiveness of our assistance and the benefits to the U.S. economy. Companies are responsible for promptly informing the AC of any material changes in the information provided. Freedom of Information Act: Information submitted to the government may be subject to disclosure pursuant to the Freedom of Information Act. However, all confidential commercial information will be protected from disclosure to the extent permitted by law. You will be notified if any such information submitted by you is responsive to a Freedom of Information Act request. Name and Location of the Project: _________________________________________________ Name of Company: _________________________________________________ Place of Incorporation: _________________________________________________ Place of Domicile: _________________________________________________ Company Reference Information: EIN:___________________ D&B #:___________________ Ownership (identify any parent companies): _________________________________________________ Annual Sales ($): _________________________________________________ Number of Employees: U.S.:________________Outside U.S.:__________________ Address: _________________________________________________ Contact and Title: _________________________________________________ Contact Information: Phone:________________ E-mail:_____________________

Certification The undersigned, being so authorized, certifies on behalf of the Company that, to the best of his/her knowledge, the information provided herewith is complete and accurate, and that the Company is in compliance with applicable U.S. law including the Foreign Corrupt Practices Act. ___________________________________ _________________________________ Signature of Authorized Company Official Date ___________________________________ _________________________________ Typed Name of Authorized Company Official Typed Title of Authorized Company Official This Questionnaire is also available at our website: http://export.gov/Advocacy/questionnaire.html. If the Questionnaire is submitted electronically, the signed signature page and Agreement Concerning Bribery and Corporate Policy Prohibiting Bribery must be scanned and emailed or provided by mail or fax.


Please respond in detail to each question below. Include additional sheets of paper if necessary. A. PROJECT/TRANSACTION:

1. Description of the foreign project/transaction: a) Please provide overall description of the project. b) Is this request in response to a government procurement or unsolicited tender? c) Is this request for Commercial or Defense Advocacy? d) If this is a Defense Advocacy request, note if the sale will be Foreign Military Sale (FMS) or Direct Commercial Sale (DCS).

2. Total value of the project/transaction (e.g., the estimated contract value specified in U.S. dollars). Identify separately value(s) to be provided by domestic and/or foreign partners in a consortium, if applicable: a. US Goods provided by your company b. US Services provided by your company c. US Goods provided by other companies d. US Services provided by other companies e. Total US Goods/Services (A+B+C+D)

f. Foreign Goods provided by other companies g. Foreign Services provided by other companies

h. Total Foreign Goods/Services (F+G) i. Total Project Value (E+H)

3. Description of all project goods/services: a. Describe the US Goods/Services provided by your company.


b. Describe the US Goods/Services provided by other US companies.

c. Describe the Foreign Goods/Services provided by other companies.

4. Status of project/transaction or current stage of bid process, and expected interim and final decision date(s):

5. Name and title of foreign government decision-maker(s): a. _________________________________________________________________ b. _________________________________________________________________ c. _________________________________________________________________ d. _________________________________________________________________

6. Are you the “Bidder of record”? Yes/No If not please provide the name and nationality

of the Bidder of Record. Are you bidding in a partnership or a consortium with other companies? Yes/No If yes:

a. Ownership/structure/control of consortium (provide percentages where applicable):

b. Name, nationality, address, telephone number, contact name and title of the

company’s partners and/or consortium members:

c. Anticipated role of each partner and/or member of the consortium:


7. How will this project/transaction affect the environment?

8. Will any items or technology to be exported in connection with this project/transaction

require U.S. Government export licenses (e.g., a Department of State license or a Department of Commerce license)? Yes/No If yes, you must provide license/application number(s) and/or status of application.

B. REQUEST FOR ADVOCACY: 1. Type of assistance requested. Be as specific as possible:

2. Reason for requested assistance:

3. Please highlight the competitiveness of your bid in terms of technology and price:

4. Has your company, partner(s), or any member of your consortium requested or received advocacy or any other assistance from a foreign government in connection with this project/transaction? If yes, please explain.

5. How does your company plan to finance this project/transaction? 6. Has your company – or any member of your consortium – applied for

financing/support from any public export finance institution (e.g. EXIM, TDA, OPIC, foreign export financing agencies)?


a. If yes, provide status of application: b. If no (as of completion of Questionnaire), indicate whether you plan to seek such

financing/support in future:

C. COMPETITORS:

1. Please identify all known competitors for this project/transaction and their nationalities, including all U.S. and foreign companies/enterprises.

2. To your knowledge, have any of the competitors listed above sought or received foreign government advocacy in connection with this project/transaction? If yes, please explain and identify the source and type of advocacy.

D. EXPECTED EFFECTS ON U.S. ECONOMY:

1. What are the expected direct and indirect effects on U.S. jobs, including effects on small and medium sized enterprises, which may result if this project/transaction is awarded to USG advocacy petitioner?

2. From what State(s) will exports be sourced should this project/transaction be awarded to the USG advocacy petitioner?

3. Please identify any other foreseeable material benefits to the U.S. economy expected to

derive from the USG advocacy petitioner’s bid or from its role in the project/transaction. Public reporting for this collection of information is estimated to be 30 minutes per response, including the time for reviewing instructions, and completing and reviewing the collection of information. All responses to this collection of information are voluntary, and will be provided confidentiality to the extent allowed under the Freedom of Information Act (FOIA). Notwithstanding any other provision of law, no person is required to respond to, nor shall any person be subject to a penalty for failure to comply with, a collection of information subject to the requirements of the Paperwork Reduction Act unless that collection of information displays a current valid OMB control number. Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Reports Clearance Officer, International Trade Administration, Department of Commerce, Room 4001, 14th and Constitution Avenue, N.W., Washington, D.C. 20230.

AGREEMENT CONCERNING BRIBERY AND CORPORATE POLICY PROHIBITING BRIBERY

Agreement: __________________________________________________ (“the Company”) has requested advocacy assistance for the _____________________________________________________ project/transaction in ___________________________________. In connection with this request the Company agrees that it and its Affiliates: (1) have not and will not engage in the bribery of foreign public officials in connection with the above matter; and (2) maintain and enforce a policy that prohibits the bribery of foreign public officials. The Company understands that failure to comply with the terms of this Agreement may result in the denial of advocacy assistance. Definitions: For purposes of this Agreement: The term “Affiliate” means (a) any company that holds, directly or indirectly, a majority of the voting stock of the Company; and (b) any other company the majority ownership of whose voting stock is held, directly or indirectly, by the Company or by a company described in (a). The term “bribery of foreign public officials” has the meaning of the term “bribery of foreign public officials” in the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. In addition, for companies that are subject to the Foreign Corrupt Practices Act of 1977 (FCPA), the term "bribery of foreign public officials" refers to practices prohibited by the FCPA (see 15 U.S.C. §§ 78dd1, 78dd2, and 78dd-3).

_________________________________ [Name of the Company]

by: _________________________________ Date: ____________________________ [Signature] _________________________________ [Type/Print Name] _________________________________

[Title]

SESSION NOTES

REFLECTION QUESTIONS

Think of three specific examples of how the information that you just heard can be relevant and valuable to an existing customer. Think of three specific examples of how your agency can work with the agency/offering previously presented for the benefit of your customers. How will this value translate to the customer’s customer?

MALCOLM BURKE REGIONAL MANAGER FOR SOUTHEAST …

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