The United States signed trade and investment framework agreements in 2004 with Kuwait and the Gulf Cooperation Council, of which Kuwait is a member, in 2012, which provides a forum for resolving reciprocal trade problems and economic reforms. The United States is a leading supplier of goods and services to Kuwait, and Kuwait is one of the largest U.S. markets in the Middle East. While price competition can be a challenge, U.S. companies have a competitive advantage in providing advanced technologies, including petroleum equipment and services, electricity generation and distribution, telecommunications systems, automotive, some other consumer goods and military equipment. The United States does not provide development assistance to Kuwait. The United States provides Kuwaiti military and defence support through foreign military sales as well as commercial sales. U.S. personnel help the Kuwaiti army train, train and be prepared. The U.S. Embassy in Kuwait also supports English-language education and exchange programs for professional development.
Some of the U.S. government`s largest defense contracts must be executed for ocONUS work; i.e. outside the continental United States. The U.S. Department of Defense (DOD) spends billions of dollars annually on basic operations and services in Djibouti, Iraq, Afghanistan and a number of European countries, to name a few. Millions are spent on training, accommodation, troop feeding and equipment maintenance. To get a piece of the pie, U.S. contractors must have a thorough knowledge of the laws and regulations relevant to the performance of the work of the OCONUS. Indeed, U.S. treaties generally entrust the responsibility of complying with all relevant laws of the United States and the host country. In order to submit a specific and compliant proposal, U.S.
contracting parties must adapt their proposals to relevant and applicable laws and regulations. Of these, The Force Status Agreements (SOFAs) and Defence Agreements (DAs) probably have the most influence on a contractor`s ability to provide, win and perform the work. As a result, contractors must fully understand the parameters of these agreements. Contractors must understand the exceptions, rights and privileges granted by these agreements. This document provides an overview of these agreements. First, it will briefly discuss the terms of the Federal Acquisition Regulation (FAR) that require consideration of such agreements. It will then look at the various war agreements and how they have resulted in subsequent agreements. This document then reviews some of the standard provisions of the agreements and presents certain agreements for discussion and comparison. Finally, the document will examine the options available in the event that a government does not implement or violate an agreement or provision. With this information, U.S. contracting parties will be better able to understand these agreements and how the agreements affect their victorious OCONUS contracts implemented by the U.S. government.
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