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Breakout Session #4: Homeland Security and the SAFETY Act

SAFETY Act: Assuring Access to Homeland Security Technology. Breakout Session #4: Homeland Security and the SAFETY Act Elaine David Senior Director, Liability and Governance Lockheed Martin Corporation July 27, 2006

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Breakout Session #4: Homeland Security and the SAFETY Act

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  1. SAFETY Act: Assuring Access to Homeland Security Technology Breakout Session #4: Homeland Security and the SAFETY Act Elaine David Senior Director, Liability and Governance Lockheed Martin Corporation July 27, 2006 11:15AM

  2. Impetus for HLS Liability Legislation ISSUE: Access to HLS Technology Barred by Supplier Liability Concerns • Environment • 2002 Post-9/11 Shockwaves • President’s National Strategy on Homeland Security (7/16/02) • Unique Liability Risks • HLS Technology Not Hazardous Per Se • Technology Use for Anti-Terrorism Purpose Raises Potential for Catastrophic Losses • Different Business Activity • Systems/Solutions-Oriented • On-going Operations

  3. Impetus for HLS Liability Legislation (cont’d) • Diverse User Base • Federal Agencies / Entities • State / Local / Regional Authorities • Private Sector • International • Limitations on Existing Sources of Liability Protection • Insurance • P.L. 85-804 • Policy / Political Drivers • Need to Access / Deploy HLS Technology • Budgetary Considerations • Tort Reform Agenda SAFETY Act Included in Homeland Security Act of 2002

  4. Implementation Issues Objective: Regulatory Approach to Fulfill Legislative Intent: Rapid Deployment of HLS Technology • Critical Shortfalls • Linkage to / Integration with Procurement Process • Expedited Treatment for “Priority Procurements” • Inflexible Application of Criteria • Coverage for International Deployments • Process Deficiencies • Onerous Information Requirements • “One Size Fits All” Approach • Setting Insurance Requirements • Inadequate Protection of Confidential Information

  5. Final Regulations Overall Assessment: Significant Positive Step in Addressing Implementation Issues • Risk Allocation / Litigation Management Scheme • Affirmed Importance of SAFETY Act • Established Official Agency Views on Benefits, Procedural Rules • Eligibility for Coverage • ATT Definition Clearly to Cover Services, Systems/Solutions • Interpretation to Allow for Extra-Territorial Deployments

  6. Final Regulations (cont’d) • Application Process • New Mechanisms for Aligning SAFETY Act and Procurement Processes • Procedures for Prioritizing, Streamlining and Expediting SAFETY Act Reviews • More Rational / Flexible Application of Criteria • Promise of Revised Application Kit • Approach to Setting Insurance Requirements Work in Progress – Opportunity for DHS/Industry Collaboration Towards Realizing Full Potential of SAFETY Act

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