16:32 Tue 20 Jul 2004					REF: 611AADN1 
					Y/R: Aus-USA Free Trade Agreement 

TO:	The Hon Senator Robert HILL 	cc	The Prime Minister
	Minister for Defence			The Leader of the Opposition
	AUSTRALIAN GOVERNMENT 			Shadow Minister of defence
						Senate FTA Inquiry
Dear Minister 

		AUS-USA-FTA AND AUSTRALIAN DEFENCE

Further to recent letters to the Minister for Trade on concerns with the implications for 
Australia of a number of chapters of the Aus-USA-Free Trade Agreement including Chapter 15: 
Government Procurement and Chapter 16: Electronic Commerce, the recent arrest of Mossad Agents
in New Zealand for forging passports has also raised awareness of Security concerns for 
Australia that require further investigation.

These concerns are based on an Expression of Interest published in July 2003 for Garrison Support
Services by a US company called DynCorp International [DynCorp]

Dyncorp was acquired by Computer Science Corporation [CSC] in March 2003.  

CSC have a long history with Australian Government Contracts whereas DynCorp have not had an 
Australian presence before this tender.  

The concerns are:

A	Security

B	Legal implications if DynCorp not awarded the contract

C	Electronic Standards for 660 Australian SMEs

A	SECURITY

The Expressions of Interest published by DynCorp in July 2003 was for Australian Department of 
Defence contracts anticipated in FY/2004.

These contracts for Garrison Support Services are for 22 different Garrison Support Services for 
10 different regions http://www.oic.org/cpt/A/dyn/

The EOI was seeking at least 3 local Small or Medium size companies hence this would involve 
at least 660 Australian SMEs

However these Contracts would provide that company access to the whole Australian Defence force 
layout for cleaners and maintenance people.

It would be very simple for other Government Agents to come into Australia using New Zealand
passports and be recruited as cleaners or maintenance people.

B	AUS-USA FTA LEGAL IMPLICATIONS

From our understanding of the terms of Aus-USA-FTA as they currently stand, DynCorp could sue 
the Australian Government if it did not win or were not included for the Garrison Support
Contract.

The Australian Government would have no option but to acquiesce and (in the words of Minister 
for Foreign Affairs Alexander DOWNER) be pragmatic and give the Contract to DynCorp as there
appears to be few other organisations that could provide the services required

C	ELECTRONIC INVOICING FOR SUPPLY CHAIN MANAGEMENT

In addition the Australian SMEs who are the subcontractors will have to invoice and provide reports 
electronically.

This is because a number of previous contracts won by DynCorp have been conducted electronically.  

However the electronic management of these contracts are outsourced to other 
companies like IBM GSA http://www.csc.com/industries/government/mds/mds1/279.shtml

This aspect is our concern that those 660 Australian SMEs will be tied to the US ANSI-X12 
standard rather than ISO EDIFACT standard with which Australia already has a Treaty Obligation. 

Please review Australia's Treaty Obligation to ISO on these Treaty examples

DynCorp provide a range of services including Security and People Protection:

"Please pass on to anyone in SFA who is interested that DynCorp International Worldwide 
Personal Protection Services (WPPS) is now recruiting for protection and security positions
on existing contracts in Afghanistan, Bosnia, and Israel. 

Recruiting has also begun for a pending contract in Iraq".
http://www.dyncorprecruiting.com/

Minister also please be aware that there is an International Labour Rights Fund Lawsuit against 
DynCorp International that may also challenge the new terms of the Aus-USA-FTA if the contracts
are awarded  
http://www.ciponline.org/colombia/irlfdyncorp.htm

NEXT STEPS

Minster we have reviewed Report 61 by the Senate Joint Committee on Treaties [JSCOT] Report 
to the Government and it has not evaluated Chapter 16: Electronic Commerce and whether the Aus-USA-FTA 
has clearly defined that Australia can still comply with its Treaty obligation to use ISO Standards.

We would suggest that the Aus-USA-FTA Treaty is placed on hold for 3 months while the Senate Inquiry
and JSCOT reviews the implications of Chapter 16: Electronic Commerce as an integral part of 
Chapter 15: Government Procurement in relation to tenders like the Department of Defence Garrison
Support Services. 

Yours faithfully


Stevan GILLMORE
Chair Events Committee
OPEN INTERCHANGE CONSORTIUM

E:	sdgillmore@oic.org
T:	{61}(2) 9953-7412
W:	http://www.oic.org
























Revised: F: 09:03 Sat 2004/07/17 Lon TW12 3HD
F: 09:32 Sat 2004/07/17 Lon TW12 3HD
Who: sdg
Authorised: sdg
Created: 09:00 Sat 2004/07/17 Lon TW12 3HD
By: rs
Revision: 3a4h1.002
Original Page: 3a4h
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