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July 2017 • The PCB Magazine 19 Figure 2: By asking what, how, where and to whom, one can ensure that the right regulations are followed. DoD regulations. A strategy of an- alysing internal and external fac- tors in relation to procurement and compliance, can ensure that one is compliant. We shall exam- ine this further in this article. Risk Analysis for Procurement and Sale Opportunities (Internal Factors) When procurement issues a request for quotation (RFQ) for an article to the defence indus- try, there is a minimum of inter- nal factors one should consider. These internal factors shall regu- late and assist the purchaser, to determine the correct supplier of an article in relation to aspects such as compliance, reliability, future possibilities and costs. Here are some examples of questions one could/should ad- dress when examining these factors in relation to your pro- curement and supply chain. The questions will differentiate depending on your supply chain, but the factors you should analyse are mini- mum the ones listed above: Who is the product owner? • If it is DoD and you are a foreign company, then you can be subject to ITAR or DFARS – Consequently, where are you allowed to purchase? • If it is a company from a sanctioned country, then you need approval from the proper authorities before commencing Who is the end customer? • If it is DoD and you are a foreign company, then you can be subject to ITAR or DFARS – Consequently, where are you allowed to purchase? • Where are you purchasing and what end user license does your foreign supplier request and is this a challenge? • If it is a company from a sanctioned country, then you need approval from the proper authorities before commencing Capabilities/Certifications Technology? • How advanced is the article you wish to procure? • How many suppliers can facilitate this technology? • If few can and it is very advanced one should qualify several suppliers in prototype stage to minimize the risk of disruption to the supply chain, obsolete parts and potential future requalification costs Regulations • Is your supplier based in a country where one can expect a change or new regulations in the near future? • How can this affect your supply chain and should you approve suppliers from different countries to minimize the risk? Requalification Costs • What is the general likelihood that one due to internal or external reasons will need to requalify? • Has your development department already STRATEGIES FOR COMPLIANCE WITH DOD REGULATIONS INCLUDING ITAR AND DFARS