Main headlines from this issue

Saudi lawsuit against Textron reveals confidential preparations to discharge offsets for cluster bomb contract

A three-judge panel on the U.S. appellate court has ruled in favour of Textron Systems Corporation in a case that revealed controversial offset details. The court decided that Arabian Support and Services Co. (ASASCO) could not require Textron to pay for offset services.

Saudi Arabia passes new local content regulation

Two new laws amending the Saudi government procurement process in the commercial sector took effect on December 1. The laws impose local content requirements on contractors. Preference will be given for Saudi SMEs and publicly listed companies.

CTO investigates Russia’s offset regime

A legal review of Russia’s offset legislation, commissioned by CTO, reveals that although there are no examples of offset contracts concluded under Russian law in the public domain, state defence contracts may contain contractual commitments, including offset requirements, that go beyond current Russian legislation on government procurements.

Contractors in Australia could face local content audit

Foreign defence contractors working on large projects in Australia are facing the prospect of an audit by the Australian government on their use of local content, according to reports. The audit is in response to criticism from industry for the perceived failure to ensure the involvement of Australian companies in large procurement projects.

Australia begins releasing SICP implementation plans

The Australian Department of Defence has released the first two of its Sovereign Industrial Capability Priority Implementation Plans (SICP). The plans are integral to the country’s Australian Industry Capability (AIC) program.