Export Control Procedures
This procedure was developed to comply with PASSHE Procedures and Standards for University Operations Procedure/Standard Number 2012-14 dated October 12, 2012. The paragraph below describes Procurement Services responsibilities under that procedure.
Procurement Officers: When purchasing items, University procurement officers shall request that vendors provide technical specification sheets and the Department of Commerce's assigned ECCN or the Department of State's USML classification number. Purchased commodities that are on an export control list shall be tagged. Computers on which controlled software is installed shall also be tagged. Both technology and information about technology that is controlled, such as operating manuals, technical specifications, etc., shall be tagged and stored securely. Before awarding bids and again at the time of signing contracts or placing orders, the purchasing officer shall confirm the vendor is not on the Specially Designated Nationals List by checking the federal consolidated list, available at http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default
Procurement Officer is the Procurement Agent responsible for the purchase of the item procured.
Tagged is the attachment of a tag that depicts the ECCN or USML number for an item. Note to computer technicians and Budget Holders, tags will be forwarded by Central Stores to the Budget Holder.
New Vendors – Prior to adding a new vendor to the SAP system the Procurement Officer is responsible to check the vendor against the U.S. Department of the Treasury Specially Designated Nationals List (SDN). As part of its enforcement efforts, Office of Foreign Assets Control (OFAC) publishes a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country-specific. Collectively, such individuals and companies are called Specially Designated Nationals. Their assets are blocked and U.S. persons are generally prohibited from dealing with them. Should the new vendor's name appear on the SDN list, LHU Procurement Services will not process a purchase order to the vendor. If the transaction resulted from the bid process, the next lowest bid will be awarded the business. If the transaction resulted from a requisition the budget holder will be advised that the requisition cannot be processed because the vendor appears on the SDN list. The federal consolidated SDN list is available at http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default
Bid Process – The Procurement Officer will ensure that when bids are posted or when received through a requisition from the budget holder for electronic devices, software, scientific devices, weapons and munitions that a copy of the technical specification sheets and the ECCN or USML number is provided with the vendor's bid. The following statement will be used for soliciting all bids for electronic devices, software, scientific devices, weapons and munitions:
Items listed on this bid request may be governed by Federal Export Control Laws and Regulations that restrict the transfer of certain materials, technology, related technical data and certain services outside the United States. For the items governed by Federal Export Control Laws and Regulations you are required to provide the technical specification sheets and the ECCN or USML number for each line item with your quote or bid proposal. For each line item not governed by the Federal Export Control Laws and regulations, you are required to enter on your quote of bid proposal "NOT Governed by Law". Failure to follow this procedure may disqualify your quote or bid proposal from the procurement process.
Create the Purchase Order – The following three steps are to be followed when creating purchase orders that include ECCN or USML number items.
1. Attach a copy of the bid and technical specification sheets to the purchase order.
2. Insert the following "S" statement that has been created for use when creating purchase orders that have ECCN or USML number items included.
S10 Export Control
This purchase order contains items governed by Federal Export Control Laws and Regulations that restrict the transfer of certain materials, technology, related technical data and certain services outside the United States in the interest of protecting the national security and domestic economy. The vendor must provide technical specification sheets and the Department of Commerce's assigned Export Control Classification Number (ECCN) or the Department of State's United States Munitions List (USML) classification number for each line item of this purchase order.
LHU International Travel Officer and Department Budget Holder reference the Pennsylvania State System of Higher Education Procedures and Standards for University Operations, Procedure/Standard Number 2012-14 dated October 12, 2012.
cc: Director of Instructional Technology
Budget Holder's Name
For purchase orders covered by this procedure, a copy of the purchase order is to be forwarded to the requisitioner and the Budget Holder and if applicable Director of Instructional Technology. This acts as an alert to those parties that licenses may be required for travel abroad by faculty, students or staff with the items on the purchase order and/or control measures must be taken to protect these line items.
Note: When the line item is for the purchase of software an e-mail will be sent to the Budget Holder by the Procurement Officer advising that once the software is loaded onto a computer either remotely or on site by a computer technician that the computer must be tagged by the Budget Holder with the tag provided by Central Stores for the ECCN software that was loaded.
3. Enter the ECCN or USML number into the Item Detail "Texts" ECCN/Green Report field on the purchase order. Data captured in this field can be retrieved by running the ZM12 – Green Purchasing Report. This report will be run on an as needed basis as requested by Donald Woodhouse or Budget Holders. This information will be especially beneficial as a data base going forward for items governed by Federal Laws and Regulations.
Central Stores – Depending on the situation Central Stores will follow the following procedures for items with ECCN or USML number.
Upon delivery and receipt of an ECCN or USML number item those items will be tagged in Central Stores prior to delivery to the budget holder.
Upon notification of a software purchase via a copy of the purchase order from the Procurement Officer a tag will be prepared with the ECCN and delivered to the budget holder with a note that the tag is to be attached to the computer when the software is installed. In cases where the software is to be installed on more than one computer, tags are to be prepared and delivered to the budget holder for all computers licensed to run the software.