In This Issue

North America

Doing Business in Canada: A Cautionary Tale for American Suppliers

Canada is a fertile—and profitable—ground for U.S. contractors who regularly compete for, and win, major federal government contract awards. No surprise really. Canada’s federal government spends almost CDN $22 billion annually for goods and services,1 while in 2019, another CDN $22 billion was dedicated to defense spending.2 Familiar U.S. companies like Lockheed Martin, General Dynamics, Raytheon, and IBM feature prominently in federal government contract awards in Canada.

National Security

Navigating the Kuwaiti Sponsorship System: A How-to Guide for US Government Contractors

On November 19, 2018, an article with the headline “Kuwaiti, 4 Expats from U.S. Base in Camp Arifjan Accused of Human Trafficking” appeared on the Arab Times Online website.1 According to the article, the Office of Public Prosecution was investigating the five people for receiving “about $10,000 from” each of some 1,500 Asian workers “for facilitating the issuance of their residency visas, and 1,000 Kuwaiti Dinar (approximately $3,000) for facilitating the issuance of each of their driving licenses.”2 The reported scam involved exaggerating the number of workers needed under U.S. contracts for projects on the base, without the knowledge of the contractors involved.3 An example identified in the article involved hiring workers for the “[Central] Texas College Technology Building.” While the building does not exceed the size of two rooms, and reportedly needs 13 or fewer workers, the suspects estimated that about 1,250 workers were required.4

Taxation

Offset Programs in the Gulf Cooperation Council for the Arab States of the Gulf: Licensing and Taxation Issues

The Gulf Cooperation Council (GCC) countries are traditionally vastly investing in the defense sector. It is expected that annual investments will reach approximately $100 billion by 2019. According to the Stockholm International Peace Research Institute (SIPRI), the Kingdom of Saudi Arabia (KSA) budgets $67.6 billion, and the United Arab Emirates (UAE) budgets $16.4 billion for defense investments according to a government announcement.1

Public Contract

News from the Chair

We have a call to action. With the global pandemic, the government asked us to respond to stay-at-home, social distancing, and other guidance or requirements issued to mitigate the impacts of the novel coronavirus. These challenging times have starkly highlighted just how interdependent we as global citizens truly are. From the various chartsand graphs of COVID-19 trajectories and, most vividly, from scenes of stricken individuals viewed in media reports or directly, we have seen how individual actions can have immense, far-reaching consequences. And we have altered our daily lives in response.