Mandatory for FMS LOAs, Amendments, and Modifications for all sales of GPS/PPS security devices for the purpose of integration into Host Application Equipment sold under a U.S. Direct Commercial Sale.
"Pursuant to the Memorandum of Understanding Number IV Among and Between the Individual Nations of NATO and the U.S. Concerning the Navstar Global Positioning System (GPS), October 28, 1993, the Government of [insert name of Government] may seek to acquire through commercial channels host application equipment (HAE). The Precise Positioning System (PPS) security devices for integration into the HAE (by the HAE contractor) must, however, be provided exclusively under this LOA. The PPS security devices and kits sold under this LOA may not be purchased through Direct Commercial Sale.
The Foreign purchaser has identified [insert name of U.S. Contractor] as its integration and HAE contractor and has requested in writing that the U.S. Government deliver the PPS security devices and kits directly to [insert name of U.S. Contractor] for integration work to be performed at a U.S. location.
The U.S. Government will not deliver the PPS security devices and kits to [insert name of U.S. Contractor] unless the following six (6) requirements are met:
The contractor is a U.S. contractor.
Only U.S. contractor personnel who are U.S. citizens may perform the integration work.
The work must be performed in the U.S.
The U.S. contractor provides a copy of the approved export license from the U.S. Department of State/DDTC for export of the HAE to the Foreign Government purchaser, to the LOA Implementing Agency. To facilitate export license processing, the application to Department of State/DDTC for an export license for the HAE should reference this FMS case for the sale of the PPS security devices and kits.
The purchaser should specify in the commercial contract with the U.S. Contractor that the contractor may not transfer the PPS security devices and kits provided under this LOA to any other party except to the purchaser, and that the contractor should reference this FMS case in the application to the Department of State/DDTC for an export license for the HAE.
Any deviation from these procedures will require U.S. Government approvals, including from the Department of State."