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compliance programs currently are not compulsory, responsible contractors have recognized the importance of such pro- grams in limiting exposure for export vio- lations. The July 2005 version of the proposed rule was widely criticized for imposing requirements not mandated by export con- trol regulations and agencies, and utilizing terminology that was inconsistent with the applicable export control regulations. After several months of review and analy- sis of public comments and inter-agency consultation, the proposed rule was revised and recently has been approved for publication by DoD. Following com- pletion of required pre-publication proce- dures, the new proposed rule will be pub- lished in the Federal Register - probably by early to late summer. What are the implications for contractors? Currently, those who ignore their export compliance obligations under the EAR and the ITAR risk civil and criminal penalties, suspen- sion of export privileges, and suspension and/or debarment from contracting with the United States government. Under the proposed rule, such contractors also will be subject to contract termination for default and potentially excess costs of reprocurement should the government be forced to purchase the supplies or services elsewhere. In view of these risks, even if the revised rule does not make implemen- tation of a compliance program mandato- ry or specify the procedures that should be followed in order to control access to export-controlled information by foreign nationals, contractors who are not familiar with the EAR and the ITAR should begin preparing for compliance with the new DFARS subpart by determining whether their operations entail use or generation of export-controlled information or technol- ogy and implementing compliance pro- grams designed to limit the new risk of contractual violations as well as the exist- ing risk of regulatory exposure. CapRock Marks 25th Anniversary For CapRock Communications April 2006 marks an important milestone in the company's history - its 25th anniversary. Founded in 1981 to meet the communica- tions requirements of the Gulf of Mexico oil industry, the company has seen tremendous growth and expansion since its inception, and now has offices and ser- vice centers in seven countries around the world, and customers in six global mar- kets including energy, maritime, mining, disaster recovery and government. During this time, CapRock has seen the launch of its pioneering IPxpress network architecture which makes it possible for customers to use a singe Internet Proto- col-based satellite network to place a call, connect to their corporate networks or use the Internet from virtually any remote location in the world - be it an oil rig 200 miles offshore in the Gulf of Mexico or a mining operation in the wilds of Indone- sia. The global satellite communications provider has also grown significantly in the past quarter of a century, more than tripling in revenue and employees in just the last five years. CapRock also has sig- nificantly expanded its technology infra- structure and now offers its broadband satellite communications services world- wide to customers in North and South America, Africa, the Middle East and Asia-Pacific, as well as to most of the world's oceans. 14 • MarineNews • May, 2006 LEGAL BEAT Circle 227 on Reader Service Card MAY MN2006 2(9-16).qxd 5/9/2006 9:14 AM Page 14
