Public Safety and Emergency Preparedness Canada & US - PowerPoint PPT Presentation

32 Smart Border Declaration • On December 12, 2001, Smart Border Declaration signed by Deputy Prime Minister John Manley and US Homeland Security Director Tom Ridge • Objectives: – enhancing security of border – facilitating legitimate flow of people and goods

33 Smart Border Declaration • Declaration outlines a set of initiatives called 30-Point Action Plan, which includes: – Biometric identifiers – Permanent resident cards – Single alternative border inspection system

34 Canada Border Services Agency • December 12, 2003: federal government announced creation of the Canada Border Services Agency (CBSA) • Part of PSEP

35 Canada Border Services Agency • CBSA comprises: – Customs program, formerly with the CCRA – intelligence, interdiction and enforcement functions, formerly with CIC – passenger and initial import inspection services at ports of entry, formerly with CFIA

36 Road • Context: – Six million trucks crossed from Canada into US in 2002 (= over 11.5 trucks per minute 24/7) – Constitutes 70% (in value), 41% (in volume), of all CDN exports to US – Projected growth rate of truck freight 1995-2020 = 61%

37 Road • FAST – Free and Secure Trade (FAST) program is a joint Canada-US initiative – Participants must voluntarily register in the CBSA’s Partners in Protection (PIP) program (similar to DHS C-TPAT program)

38 Road • FAST – harmonizes commercial process offered to pre- approved importers, carriers, and registered drivers at 12 major border crossings – shipments for approved companies, transported by approved carriers using registered drivers, will be cleared into either country with greater speed and certainty, and at a reduced cost of compliance

39 Road • NEXUS – joint customs and immigration program for frequent travellers that both Canadian and American governments have implemented – dedicated lanes at select border crossings – not be regularly subjected to usual customs and immigration questioning

40 Road • Advance Cargo Reporting – Non-FAST = 1 hr prior to arrival at border – FAST = none • Shared border facilities under Canada- United States Accord on Our Shared Border- Joint Facilities Initiative

41 Rail • Overview: – Constitutes 27% (in value), 32% (in volume), of all CDN exports to US – Projected growth rate of rail freight 1995-2020 = 38%

42 Rail • Declaration of Principles – On April 3, 2003, US and Canadian customs agencies and Canada’s two major railways signed a declaration of principles – further enhances security at Canada-US border and to ensure Canada’s secure rail access to US

43 Rail • The Declaration: – outlines principles for targeting, screening and examining rail shipments to US by: • Canadian National Railway • Canadian Pacific Railway – includes guidelines for collecting electronic manifests and installing imaging and radiation detection equipment

44 Marine • Overview: – Constitutes 3% (in value), 27% (in volume) of all CDN exports to US – Over 250 commercial ports – $100 billion passes through CPAs, generating over $20 billion in annual economic activity and 250,000 direct and indirect jobs – 3.5 million containers brought into Canada, but only 3% checked

45 Marine • Feds committed C$172.5 million in 2003 on marine and port security • Implementing International Ship and Port Facility (ISPS) Code – by July 1, 2004

46 Marine • Enhanced security screening procedures for ships entering St. Lawrence Seaway/Great Lakes System • Advance cargo reporting – 24 hours prior to lading – Canada is adopting US rule, giving up its intention to require 96 hours

47 Air • Overview: – Projected growth rate of air freight 1995-2020 = 91% – Not very large when compared to big 3 (road, rail, marine)

48 Air • Canadian Air Transport Security Authority (CATSA) – created April 1, 2002 • CAN-PASS AIR – implementation began July 2003 – allows pre-screened, low-risk travelers to pass quickly through Canadian customs and immigration at major Canadian airports

49 Air • Share advance passenger information and agreed- to passenger name records • Canada-US Pre-Clearance Agreement • Air Travellers Security Charge • Advance cargo reporting – flights > 4 hrs = 4 hrs prior to arrival – flights < 4 hrs = at time of take off

50 Vendor Programs • What challenges are there for organizations operating in this “secure” environment? • Closely review new security environment and try to determine where and how new programs will affect you • Often new infrastructure required but no or insufficient $ to offset costs imposed by federal government

51 Vendor Programs • Ensure compliance department in place, if possible • HR must be more vigilant in background checks – Vigilance must be balanced with realities and unions/employees – Tension with health/safety and privacy legislation • Re-structure value chain depending on “just-in- time” structure of organization

52 Procurement • Opportunities from investments in security- based initiatives • $7.7 billion for security enhancement initiatives in 2001 budget • $3 billion for infrastructure support in 2003 budget

53 Procurement • Examples of goods required: – hi-tech equipment to scan freight – advanced explosives detection system – ion mobility spectrometers – underwater vehicles to search for contraband/dangerous goods – VACIS (gamma-ray imaging system)

54 Procurement Programs • Examples of services required – Operators of certain hi-tech equipment – Trainers of security personnel – Security assessments and plans for ship owners and port facility operators – Assisting with security certification • being done in US; possible in Canada?

55 Procurement Programs • Outsourcing opportunities • P3 opportunities

56 Other Related Programs • Money laundering legislation • Enhancements to surveillance and animal tracking systems • New bank notes ($100, $50, and $20) • Canada opening new consulates in US

57 Summary & Recommendations 1. Be aware of changing government structure and programs � moving target � organizations must be nimble 2. Enrol in trade facilitation programs � NEXUS = people (ground) � CAN-PASS = people (air) � FAST = goods � anticipate challenges (e.g. union/employee reaction)

58 Summary & Recommendations 3. Comply to Compete • Comply with emerging security enhancements • e.g.: advance cargo requirements • beginning April 1, 2004 • Marine: 24 hrs prior to lading • Road: FAST: no advance notice required Non-FAST: 1 hr prior to arrival

59 Summary & Recommendations � Certify as required � e.g.: ISPS Code � compliance required by July 1, 2004 for all port facility operators and ship owners � Cause all in supply chain to comply and certify � e.g.: representations & warranties and tiered remedies (including indemnities) regarding security compliance and certification

60 Summary & Recommendations 4. Seize Business Opportunities � massive government expenditures in Canada and the US � search out request for proposals (RFPs) in order to be a prime government supplier � provide support services to those companies contracting directly with government

Public Safety and Emergency Preparedness Canada & US Department of Homeland Security Implications For Business In Our New Security Conscious Environment Wednesday, February 25, 2004 www.mcmillanbinch.com MBDocs 1253046 61

U.S. DEPARTMENT OF HOMELAND SECURITY Structure, Priorities, and Procurement Issues Rob Mangas and Dave Nadler Dickstein, Shapiro, Morin & Oshinsky McMillan Binch Conference Centre Toronto, Ontario February 25, 2004

DHS ORGANIZATION • Information Analysis and Infrastructure Protection • Science and Technology • Border and Transportation Security • Emergency Preparedness and Response OTHER KEY AGENCIES WITH RESPONSIBILITY Department of Defense CIA Department of Justice/FBI Department of Health and Human Services Department of Energy

DHS FUNCTIONAL ORGANIZATION “Entry” Security Infrastructure Protection People Physical Structures • • Goods Cybersecurity • • Borders and Ports Public Communication • • Transportation Security Health Security Aviation B/C/R/N releases • • Rails Food Security • • Mass Transit Water Security • •

Detection and Readiness and FUNDING PRIORITY Prevention Response Entry Security High High Infrastructure Protection Modest Highest Transportation Security Highest High Health Security Modest High

DHS FY05 Budget Priorities: Slowly Shifting from Response to Prevention Proposed Declines in “Response” funding: • ODP state formula grants $ 700 mil. (- $ 1,026 mil.) • Firefighter assistance grants $ 500 mil. (- $ 250 mil.) Significant “Prevention and Detection” initiatives: • Container Security Initiative • US-VISIT • Customs-Trade Partnership (C-TPAT) • Remote Video Surveillance • Automated Commercial Environment • Non-Intrusive Inspection technology • Biosurveillance • Radiation Detection • Baggage Screening • Cargo Screening • Anti-missile technology • CAPPS-II

FUNDING INCREASES BY AGENCY (Dollar amounts in $ billions) $12 $10 '01 '02 $8 '03 '04 $6 '05 $4 $2 $0 C&I USCG TSA EPR ODP S&T IAIP

Container Security Initiative (CSI) • Modeled after Smart Border Accord • Stations DHS personnel (usually 5 man teams) at international ports (5 Canadian), examines high risk cargo before it is placed on ships Customs-Trade Partnership Against Terrorism (C-TPAT) • Allows private industry to develop supply chain security plans • Benefits include expedited clearance of goods • Free and Secure Trade (FAST) program has “FAST lanes” operational at twelve U.S.-Canadian border crossings • More than 4,500 applicants so far; participants include importers; air, rail and sea carriers; brokers; freight forwarders; non-vessel common carriers; highway carriers; port authorities and terminal operators; foreign manufacturers and warehouses Non-Intrusive Inspection (NII) technologies Automated Commercial Environment (ACE)

NEW TECHNOLOGY What do they Need? Science & Technology Directorate: Portfolio Managers Countermeasures Portfolios Portfolios Supporting Operational End-Users and Conventional Missions • Biological Countermeasures • Chemical Countermeasures • Border and Transportation Security • Radiological & Nuclear Countermeasures • Emergency Preparedness and Response • Explosives Countermeasures • Standards • Threat and Vulnerability, Testing and Assessment • U.S. Coast Guard • Comparative Studies • U.S. Secret Service • Critical Infrastructure Protection • Cyber Security

NEW TECHNOLOGY What do they Need? DHS/TSWG Process: Rapid Prototype Development • C/B/R/N Countermeasures • Explosives Detection • Improvised Device Defeat • Infrastructure Protection • Investigative Support and Forensics • Personnel Protection • Physical Security

Standard Setting: National Institute of Standards and Technology (www.nist.gov) Major Homeland Security Project Areas • Strengthening structural and fire safety standards • Improved materials for structures • Cybersecurity standards and technologies • Enhanced threat detection and protection • Tools for law enforcement • Emergency Response

Standard Setting: American National Standards Institute (www.ansi.org) Major Homeland Security Topics • Private Sector Emergency Preparedness and Business Continuity • Biological and Chemical Threat Agents • Training Programs for First Responders • Biometrics • Emergency Communications • Risk Assessment • Cyber Security • Supply Chain Security • Equipment for First Responders

Standard Setting: Other Relevant Sources National Institute of Justice (www.ojp.doj.gov/nij) Technical Support Working Group (www.tswg.gov) International Organization for Standardization (www.iso.ch) ASME Critical Assets Protection Initiative (www.asme.org) ASIS International (www.asisonline.org) State government homeland security offices NGA Center for Best Practices (www.nga.gov) PREPARE Act, H.R.3158 (www.thomas.gov)

Current Policy Debate in Congress Hot Topics • State and Local Grants: Allocation and Targeting • SAFETY Act Liability Protections • Port Security • Airline Screening • Intelligence Activities Additional Future Topics • Container Security Initiative • Water Security • International Nuclear Stockpiles • Immigration Reform • Infrastructure: Nuclear and Chemical Facilities • Rails and Mass Transit

SELLING TO THE U.S. GOVERNMENT AND THE DEPARTMENT OF HOMELAND SECURITY

U.S. GOVERNMENT MARKET • Largest Consumer Of Goods And Services In The World • Steady Growth Market – Total U.S. Government Expenditures Will Exceed $2.23 Trillion In 2004 – DHS FY04 Budget = $38 Billion – DHS 2005 Budget = $40.2 Billion

– Overall Homeland Security Activities Across All Federal Agencies Will Grow To $47.4 Billion In 2005 • 83 Independent Agencies • 27 Vertical Markets – Healthcare, Law Enforcement, Logistics, Etc. • Thousands Of State, Local Municipal Governments Plus Public Universities

U.S. GOVERNMENT MARKET INDICATORS • You Will Always Get Paid • Private Markets Are Slumping – Dot.Com Crash • Steady And Consistent Growth • Preference For Commercial Items • New Players Entering The Market • Requirement For Competition • Incentives For Small/Disadvantaged Companies

• Different Culture And Business Drivers • R & D Programs For New Technology – DHS = $800 M • Modernization – Cross Agency Initiatives • Procurement Reform – Streamlined Acquisition – Commercial Practices • Difficult To Penetrate – Risk Adverse • Homeland Security – War On Terrorism – Iraq Reconstruction

GOVERNMENT SALES MODELS • Direct Sales – Respond To Government Bid Opportunity – Contract Between Government And Company For Discrete Order Or Term Contract – Government Terms And Conditions Apply • Channel Sales – Sales Through Distributor And/Or Reseller – Certain Terms And Conditions Flowed Down – Reseller/Distributor Terms And Conditions

– Small Disadvantaged Business Program – 75% Of All Sales – Teaming/Subcontracting • Government Drives Requirements • Primes Hold Contract Vehicles • Procurement Vehicles – Contracts – Fixed Price, Cost, Incentives – GSA Schedule – Government-Wide Acquisition Contracts – Open Market

THE DHS LEGAL FRAMEWORK • Competition In Contracting Act (CICA) – Requires “Full And Open Competition” – Expenditure Of Public Tax Dollars – Publicizing Contract Actions – 7 Exceptions Including: • Only One Source Or A Limited Number Of Sources Will Satisfy Government Requirements • Unusual And Compelling Urgency • Industrial Mobilization • National Security • Public Interest

– Agency Must Provide Justification For “Other Than Full And Open Competition” – CICA Implemented Through The FAR – DHS FAR Supplement • Iraq Reconstruction Contracts – Example Of Sole Source Or Restricted Competition – USAID Has Awarded Several Contracts Using Restricted Competition Based On Urgency

• Improper Business Practices – Gratuities – Bribes – Kickbacks – Improper Influence – Procurement Integrity – Antitrust Violations – Conflicts Of Interest – Revolving Door Restrictions • Socio-Economic Programs – Small Business Set-Asides – Disadvantaged Companies

TERMS AND CONDITIONS • Numerous Clauses Incorporated By Reference Into Government Contracts • Clauses Allocate Risks, Protect Taxpayer, And Implement Socio-Economic Policies • Many Clauses Differ From Commercial World And Are Unique To Government • Flow Down Clauses To Subcontractors And Suppliers

KEY TERMS AND CONDITIONS • Payment • Warranty • Patent Indemnity • Rights In Data • Inspection And Acceptance • Most Favored Customer • Price Reduction • Audit • Cost Accounting Standards

• Liquidated Damages • Labor Clauses • Buy American Act • Insurance • Assignment/Contract Financing • Disputes • Changes • Termination For Convenience • Termination For Default • Commercial Items • Representations And Certifications

DHS SPECIAL CONTRACTING RULES • Existing Contracts With Consolidated Agencies Transferred To DHS • Act Includes Special Contracting Procedures For DHS • Special Contracting Procedures For Other Executive Agencies Acquiring Goods And Services Needed To Fight Terrorism

• DHS Acquisitions – Subject To Procurement Statutes And The FAR – Sole Source And Restricted Competition – DHS May Use Special Contracting Authority When Its Mission Otherwise Would Be “Seriously Impaired” • Determination Must Be Made By Secretary Of DHS Or His Designee • Must Inform Congress Of Determination And Its Basis

• Special Contracting Authority For DHS – Increase Micro-Purchase Threshold From $2,500 To $7,500 – Increase Simplified Acquisition Threshold From $100K To $200K For Domestic Contracts And $300K For Foreign Contracts • Reduces Advertising, Competition, And Evaluation Requirements And Specifies Less Burdensome Contract Clauses – Expand The Use Of Commercial Item Acquisitions • DHS May Purchase Items That Are Not Commercial Items As If They Were Commercial Items

• “Deemed” Commercial Items – Agencies Can Generally Purchase Commercial Items Consistent With Standard Commercial Practice – Items Have Been “Tested” By The Marketplace – Deemed Commercial Items May Not Have Established Commercial Or Catalog Pricing So Government May Pay Excessive Prices – Warranty, QA, Technical Data Rights Issues

• Government-Wide Emergency Contracting Procedures – Special Contracting Authority To All Executive Agencies For Acquisition Of Goods And Services To Fight Terrorism • 1 Year Provision – Agency Must Determine That Goods Or Services Relate To Defense Against Or Recovery From Terror Or WMD Attack – Same DHS Special Contracting Procedures Would Be Available To Other Agencies

• “Other Transactions” – Transactions Other Than Contracts, Cooperative Agreements, Or Grants – Very Flexible Arrangements Typically For R&D Programs (i.e. CRADAs) – Exempt From Virtually All Procurement Statutes – Allows DHS To Acquire Cutting Edge Technology And Research Capabilities Without Requiring Extensive Government Data Rights

SAFETY ACT • Support Anti-Terrorism By Fostering Effective Technologies Act Of 2002 • Limits Third Party Liability For Contractors Providing “Qualified Anti-Terrorism Goods Or Services” To The Government • DHS Must Qualify Technology Under Specific Factors For Liability Protection To Apply

• Presumption That Government Contractor Defense Applies – Shields Contractors From Liability To Third Party For Harm Caused By Product • Caps Contractor’s Liability To Amount Of Liability Insurance • Allows Company To Move Action To Federal Court And Limits Types Of Damages That Can Be Imposed

TECHNOLOGIES IN DEMAND • Bio-Hazard Detection • Decontamination Equipment • Vaccines And Antidotes For NBCR Threats • IT – Data Mining, Information Sharing, Etc. • Cyber-security • Biometrics • Equipment/Techniques To Secure Shipping, Transportation Water Systems, And Energy Plants

CONTACT INFORMATION: Robert Mangas (202) 828-2241 MangasR@dsmo.com David Nadler (202) 828-2281 NadlerD@dsmo.com

U.S. MARI TI ME SECURI TY U.S. MARI TI ME SECURI TY I MPLI CATI ONS FOR I MPLI CATI ONS FOR CANADI AN I NDUSTRY CANADI AN I NDUSTRY Jon Bonsall Bonsall and Harlan Doliner and Harlan Doliner Jon Keegan, Werlin & Pabian, LLP Keegan, Werlin & Pabian, LLP Boston, Massachusetts Boston, Massachusetts

CANADA’S RESPONSE CANADA’S RESPONSE Transport Canada’s Requirements and Transport Canada’s Requirements and Procedures Parallel Those in the U.S. Procedures Parallel Those in the U.S. July 1, 2004: I mplement New Security July 1, 2004: I mplement New Security Requirements for Port Facilities and Requirements for Port Facilities and Certain Vessels Certain Vessels Working with the U.S. Coast Guard to Working with the U.S. Coast Guard to Harmonize the Marine Security Regimes Harmonize the Marine Security Regimes

U.S. MARI TI ME SECURI TY U.S. MARI TI ME SECURI TY RESPONSES RESPONSES Post 9-11 Thrust – Strategic Planning • Vulnerability Assessment for Critical Assets − Identify Specific Threat − Analyze Nature of the Threat • Prioritize Risks and Response Measures