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US Compliance; FFL & ITAR December 12, 2011

Posted by Chris Mark in Uncategorized.
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The United States allows both individuals and companies to purchase firearms for personal as well as business use.  Much to the surprise of many (even other Americans), it is a right to own automatic weapons and silenced weapons assuming the proper checks have been passed and taxes paid.  The US also allows companies to export US firearms with the appropriate licenses.  The ability to obtain firearms at a low cost and export those firearms gives US companies some advantages in armed security.  That being said, there are some very strict laws with which companies and individuals must comply.  Understand that these are Federal US laws and state laws may vary.

If your company is thinking about doing business with a US company, it is imperative that you know the rules and ensure that your vendor is in compliance.  If they are not in compliance, both the vendor and your own company may come under scrutiny and, at worst, may have legal implications.

Federal Firearms License (FFL)– This license allows individuals and companies to ‘own’ ‘manufacture’, and ‘sell’ firearms including pistols, rifles, shotguns, and the like.  A ‘class 3’ license also allows for the ownership, manufacturing, and sale of prohibited firearms such as automatic weapons, suppressors, and short barreled weapons.  In short, if a US company is claiming to have access to firearms they must possess an FFL and (this is important) all firearms must be owned under the company’s name and company’s FFL.  Remember, in the US individuals can own firearms.  It is easy for someone to purchase firearms under their personal name and claim that they are owned under the FFL.  The Bureau of Alcohol Tobacco and Firearms (ATF) requires very strict documentation for all firearms bought, sold, manufactured, modified, or disposed of under and FFL.

International Arms Traffic in Arms Regulation (ITAR) controls the importation and exportation of ‘defense articles’.  This includes firearms, night vision equipment, and other items that are controlled by the US Government.   The ITAR is a component of the US’ Arms Export Control Act of 1976.  The US Government strictly prohibits and controls the export of certain firearms and other technology.  The act does allow, however, individuals to travel with up to 3 firearms for ‘personal use’ (Such as hunting) provided the individual returns with the firearms.  Disposing of the firearms is a felony.

When evaluating a US company with which to do business it is not enough to know that they have an FFL and ITAR.  You want to ensure that the company is in compliance with the regulations.  I have a drivers’ license but if I consistently drive while intoxicated, I am not in compliance with the license.  Here are some questions that you can ask your vendor.  Always get evidence of the answers and documented proof for your records.

1) Are all firearms used in conjunction with the contract purchased and owned under the company’s FFL?

2) Are only firearms registered under the FFL exported under the ITAR license?  (for each transit ensure that a list of firearms and serial numbers are listed for your records)

3) Are all firearms returned to the United States in accordance with the ITAR license?

The last point is particularly relevant and includes components of the first two.  Since many merchant vessels are operating close to areas that are on the US” prohibited list (Sri Lanka, for example), US companies are under particular scrutiny in these areas.  If the firearms are exported to the US and into the theater and then simply ‘disappear’ or are not returned to the US it could raise serious issues for the vendor and their clients.  Obviously, the US government is concerned about firearms being put in potentially the wrong hands.

**As another important point, the ITAR only allows for the exportation of firearms from the US, the vendors are responsible for obtaining all relevant licenses in countries in which the firearms will be transferred through or used.  Failure to do so can result in arrest and/or prosecution in the country in which the firearms are transferred.

In addition to obtaining all ITAR and FFL information, ask for evidence of appropriate licenses in foreign countries, as well.

By following these simply rules, and asking a few questions you can have confidence that your security vendors are operating in a manner consistent with the US Government regulations.

COTS Technology & Security December 1, 2011

Posted by Chris Mark in Uncategorized.
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Back in the1990’s I was a qualified Marine Sniper.  In the good ‘ole days of the USMC, we fired the M40a1 (don’t laugh jerks 😉 .  It was basically a Remington 700 action chambered for 7.62 x 51mm NATO (.308) with a Win M70 (pre64) trigger, a Unertl fixed 10 power scope with a MilDot reticle and a McMillan monte-carlo stock (I sound like a computer geek…it hash 500 gigibits of RAM..;).  The A1 was introduced in the 1970’s and we had to learn the rifle inside and out for Sniper School.  The rifle was guaranteed to shoot 1 MOA (or roughly 1 inch groups per every hundred yards for the non shooters).  1″ at 100 yds, 2″ at 200 yds, and so on.  I though the 14 lb rifle was the apex of engineering and was proud to carry that heavy bastard.  Back in the 1990’s there were a number of companies that could make an M40 replica for around $3,000US or about $4,500 today, when adjusted for inflation.  Back in the day as a young Marine, I could never afford a precision rifle as they all ran upwards of $3,000 in 1993 dollars.

Last year I purchased a Remington M700 SPS Tactical .308 for $599US. I figured that for $600 even if it shot only 1.5 MOA it would be fun to shoot.  I put a $350US Nikon tactical scope on top and took it to the range to break it in.  This rifle has a Remington XMark pro adjustable trigger, a 20″ barrel and Hoag over-molded stock.  I had read good reviews about the rifle but imagine my surprise when, after breaking it in,  it was shooting 3/8 inch 3 shot groups at 100 yds from a bipod! (see the pic at top..that is 3 shots)  This is only a 7.5 lb rifle.  I could NEVER get my M40 to shoot better than about 3/4 inches off a sand bag.

The moral of the story is that while warfare is not good for much, manufacturers really begin to focus on improving technology that can be used on the battlefield.  A person today can purchase a rifle for less than $1,000 that shoots better than my M40 did “back in the day”.  We see these improvements not only in rifles but in body armor, camoflage, communications equipment, optics, and other areas. The military is increasingly looking at Commercial Off the Shelf Technology or COTS. Looking at what the modern soldier, sailor, and Marine carries today really puts into perspective how much has changed.

So what does this have to do with Maritime security?  Security often requires firearms, optics and other technology.Today, it is possible to outfit guards with very reliable, very accurate firearms at reasonable prices.  The same can be said for optics.  It is possible to purchase good Gen 2 night vision in the US for about $2,000US and Gen 4 for less than $4,000 US.  Night vision technology even in the 1990’s was prohibitively expensive.  Even thermal imaging technology can be had for less than $8,000.

On the flip side, it should be noted that the “bad guys” can also get their hands on better gear today then they could even 5 years ago.  It is important to stay ahead of the curve and ensure that if you hire guards they have appropriate kit and are adequately trained to use the equipment.

Analysis of “Are Weapons the Answer to Counter Ship Piracy?” Part 1 of 2 June 14, 2011

Posted by Chris Mark in Piracy & Maritime Security, Risk & Risk Management, weapons and tactics.
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Recently I was reading an article on Maritime Executive and a few of the comments gave me pause which, I believe, requires a response.  This post will attempt to objectively analyze the underlying issues outlined in the article.  Brevity precludes a comprehensive critique of the article so only the major identified issues will be addressed in this post

Notice that the term objectively is italicized in the first paragraph.  The first aspect of the article that raises issues is the assertion that it is ‘objective’.  As defined by Webster’s dictionary:

“a : expressing or dealing with facts or conditions as perceived without distortion by personal feelings, prejudices, or interpretations “ 

Simply saying that an article is ‘objective’ does not make it so.  It is impossible for any position paper to be ‘objective’ in that the author is attempting to make an argument to support their conclusion.

In reading the article, the author clearly has an agenda as articulated in the final sentence of the conclusion where he definitively states:

The potential means of reducing the commercial return for pirates and of imposing considerable financial pressures on them currently exists within the power of the industry, without resort to arms.”

Furthermore, in an attempt to assuage the readers’ fears that the author is not being objective, a disclaimer is provided in which the author acknowledges “…his interest through its support to GAC Solutions in the provision of maritime security services and support to maritime clients.”

With the conclusion clearly articulated and the author’s position within the industry identified for the readers,  it is now possible to review some of the premises, which ostensibly support the conclusion.

In the background section of the article, the author editorializes while making several strong claims.  Namely he asserts that:

“..the debate (about arming ships) currently seems to be driven more by the following: fear induced pressure on the stakeholders; the questionable authority of some proponents of arming ships; frustration throughout the industry at the apparent ease with which pirates can gain access and control of ships.”

This author would suggest that “the apparent ease” of gaining access and control of ships is a legitimate concern for ship owners and does not suggest an environment of pressure born out of fear.  A disturbing aspect of the article is the imperious attitude of the author when he suggests that some proponents of arming ships are of ‘questionable authority’.   Many proponents of arming ships (this author included) have experience and education that would likely merit some level of respect of their positions.

He further states that:

“The effect of an over-dramatic media creates a perception of the frequency and impact of piracy attacks that is not borne out by statistics. Also, the argument for arming ships increasingly relies on the use of the strap line “No ship with armed escorts has been taken.” There are many equally true statements such as, “ships with particular funnel markings have not been taken””.

While this blog post is not intended to dissect the statistical aspects of the argument, when discussing risk there are two primary components; probability and impact.  While the probability of a ship being taken is, in fact small, it is suggested that the impact is anything but trivial.  In fact, yesterday it was acknowledged that pirates received a ‘double-figure million US dollar” ransom.  When evaluating the risk from an annualized loss expectancy perspective, it is suggested that arming ships does in fact, make financial sense.  The last statement related to ships being taken merits no further response as any college freshman statistics student would rightly identify that the funnel markings would be considered a spurious relationship while the armed escorts would be considered statistically relevant. To read more about risk and risk analysis please read this post.

The last section that stands out is the one titled Weapons and effects.  I was apoplectic when I read the author’s assertion that:

“Hollywood and the media have greatly exaggerated the destructive power of such weapons as the RPG7, while the AK47 has an iconic status. The RPG7 is a rocket propelled grenade, with very limited capability and effect. The AK47 is a superb close quarter battle weapon, ideal for insurgents, pirates and many others, because of its simplicity and functionality. However, it is a very inaccurate weapon, with little penetration capability. Both can, and do, create a situation of panic and fear in those with no understanding because of the noise effect and peoples unrealistic image of their capabilities”

Once again the author attempts to assert authority on the subject by demeaning readers who lack the same experience as the author.  He clearly intimates that the reason people are afraid of the RPG 7 and AK 47 is because they lack understanding of the weapons, the weapons are loud, and people have unrealistic images of their capabilities.  While certainly shows like Rambo and the A-Team portrait unrealistic capabilities of weapons, this author also has experience with such weapons and can state definitively that RPG 7’s and AK 47’s deserve respect.  To suggest otherwise is irresponsible to those who may not have the requisite experience to understand the destructive capabilities of such weapons.  More information can be found in the post titled: “Whitpaper on Weapons and Tactics”

Part 2 will continue the analysis.