REGULATIONS FOR INDUSTRIAL CO-OPERATION RELATED TO DEFENCE 1

ACQUISITION FROM ABROAD

Part 1 General Principles ..................................................................................................................3

1.1 LEGAL BASIS ...................................................................................................................................3
1.2 OBJECTIVE ......................................................................................................................................3
1.3 SCOPE AND APPLICABILITY ...............................................................................................................3
1.4 RESPONSIBLE AUTHORITY ................................................................................................................3
1.5 LEGAL STATUS ................................................................................................................................3
1.6 EXEMPTIONS ...................................................................................................................................3
Part 2 Key Aspects Related to Implementation ..............................................................................3
2.1 SCOPE OF APPLICATION ...................................................................................................................3
2.1.1 Acquisitions Subject to the Provisions of these Regulations ...............................................3
2.1.2 Threshold Value ...................................................................................................................4
2.1.3 Conditional Framework Agreements for Industrial Co-operation.........................................4
2.1.4 Conditional Industrial Co-operation Agreements, Additional Acquisitions...........................4
2.1.5 Acquisitions from Norwegian Principal Suppliers ................................................................5
2.2 PROCEDURAL REQUIREMENTS FOR ENTERING INTO INDUSTRIAL CO-OPERATION
AGREEMENTS ........................................................................................................................................5
2.2.1 Requirements for the Suppliers Offer ..................................................................................5
2.2.2 Plan for Industrial Co-operation ...........................................................................................5
2.2.3 Industrial Co-operation as an Evaluation Criteria ................................................................5
2.2.4 The Negotiation Procedure ..................................................................................................5
2.3 GENERAL REQUIREMENTS CONCERNING INDUSTRIAL CO-OPERATION AGREEMENTS ...........................5
2.3.1 Use of Standard Agreements...............................................................................................5
2.3.2 Language Requirements......................................................................................................6
2.3.3 Governing Law .....................................................................................................................6
2.3.4 Public Disclosure..................................................................................................................6
2.3.5 Implementation Costs Carried by the Supplier ....................................................................6
Part 3 Requirement for Industrial Co-operation .............................................................................6
3.1 THE INDUSTRIAL CO-OPERATION COMMITMENT .................................................................................6
3.1.1 Scope ...................................................................................................................................6
3.1.2 Category Allocation ..............................................................................................................6
3.2 PERFORMANCE OF THE COMMITMENT ...............................................................................................6
3.3 LIFE-CYCLE CLAUSE ........................................................................................................................6
3.4 INDUSTRIAL PROJECTS ....................................................................................................................7
3.4.1 Approval ...............................................................................................................................7
3.4.2 Requirement of Technological Content, Areas of Priority....................................................7
3.4.3 Categories............................................................................................................................7
3.4.4 Norwegian Partners in Industrial Projects............................................................................8
3.4.5 Direct Industrial Co-operation ..............................................................................................8
3.4.6 Project Types .......................................................................................................................8
3.4.7 Requirement of Causality.....................................................................................................9
3.5 VALUATION ......................................................................................................................................9
3.5.1 General Criteria....................................................................................................................9
3.5.2 Requirement for Value Added in Norway ..........................................................................10
3.5.3 Use of Multipliers................................................................................................................10
3.6 EARLY INDUSTRIAL CO-OPERATION.................................................................................................10
3.7 CREDIT APPROVAL ........................................................................................................................10
3.7.1 Time of Crediting................................................................................................................10
3.7.2 Credit in Advance...............................................................................................................10
3.7.3 Approval of Credit in Category II and III.............................................................................11
3.8 AGREEMENT PERIOD, MILESTONES ................................................................................................11
3.9 PENALTY CLAUSES ........................................................................................................................11
Part 4 Transfer of Credit..................................................................................................................11
4.1 BANKING AGREEMENT....................................................................................................................11
4.2 SURPLUS CREDIT ..........................................................................................................................12
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4.3 TRANSFER OF CREDIT IN BANKING AGREEMENTS ............................................................................12

4.4 SWAPPING ARRANGEMENTS ...........................................................................................................12
Part 5 Reporting and Follow up......................................................................................................12
5.1 ANNUAL REPORTING FROM THE SUPPLIER ......................................................................................12
5.2 ACCESS TO INFORMATION ..............................................................................................................12
5.3 REQUIREMENT OF OBJECTIVITY ......................................................................................................12
5.4 OBLIGATIONS OF NORWEGIAN PARTNERS .......................................................................................12
Part 6 Breach of Contract................................................................................................................13
6.1 SUPPLIER’S BREACH OF CONTRACT................................................................................................13
 REGULATIONS ON INDUSTRIAL CO-OPERATION RELATED TO DEFENCE 3
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PART 1 GENERAL PRINCIPLES

1.1 Legal Basis
The Regulations on Industrial Co-operation Related to Defence Acquisition from Abroad (RIC),
are pursuant to the Norwegian Acquisition Regulations for the Defence Sector1 (ARF), section
1.10, and are an attachment to the ARF.

1.2 Objective
Industrial Co-operation related to defence acquisition shall contribute to the development of a
competitive industry in Norway within areas of importance to the further development of the
Norwegian Armed Forces, provided that this is considered to meet the Norwegian Armed
Forces’ demands.
Industrial Co-operation is an important tool in the implementation of the strategy of industrial
policy related to the Norwegian Armed Forces’ acquisitions.

1.3 Scope and Applicability

RIC is established by the Royal Norwegian Ministry of Defence (MoD) and applies to MoD and
all its subordinate entities when entering into agreements on industrial co-operation.

1.4 Responsible Authority

MoD has the overall responsibility for the establishment and supervision of Industrial Co-
operation related to acquisitions from abroad. MoD may delegate its powers in accordance with
the provisions of these Regulations to subordinate entities.
MoD may establish reference groups comprising representatives from the Armed Forces, the
industry and other relevant stakeholders, either to discuss general aspects of industrial co-
operation, or particular aspects related to specific acquisitions.

1.5 Legal Status

RIC have legal status as internal instructions.
RIC do not itself confer any legal rights on current or potential suppliers. If any of the provisions
of RIC are to be included in a contract or an order as part of its terms, this must explicitly follow
from the Industrial Co-operation Agreement and the contract.

1.6 Exemptions
MoD may adopt exemptions from the provisions set forth in these Regulations.

PART 2 KEY ASPECTS RELATED TO IMPLEMENTATION

2.1 Scope of Application
2.1.1 Acquisitions Subject to the Provisions of these Regulations
RIC apply to acquisitions of goods, services and materiel from foreign suppliers, subject to the
exceptions set forth in the following paragraphs. RIC further apply to transactions where the
supplier is registered in Norway, whereas significant parts of the delivery are produced abroad.

1
In these regulations, «Defence Sector» denotes MoD and its subordinate entities.
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RIC also apply when the acquisition is conducted in accordance with Lov om offentlige
anskaffelser (The Public Procurement Act) of 16 July1999 nr. 69 (LOA), and Forskrift om
offentlige anskaffelser (Regulation on Public Procurement) (FOA), provided that the acquisition
may benefit from the exemption in LOA § 3.
RIC also apply to acquisitions conducted in accordance with the ARF, section 1.5.1, c.
As a rule, an exemption to RIC will be given in multinational co-operation projects where the
value of the contribution from the Norwegian industry 2 is equal to the Norwegian financial
investments.
2.1.2 Threshold Value
Industrial Co-operation Agreements are mandatory in all foreign acquisitions that involve
contract values of NOK 50 million or more, excluding VAT (hereafter the «threshold value»). A
binding Industrial Co-operation Agreement must be entered into before the acquisition contract
is concluded.
Administrative fees incurred when acquisitions are made under international (armaments) co-
operation arrangements or other nations’ public supply schemes etc. shall not be included in the
basis for calculation. Administrative fees that are to be excluded from the basis of calculation
must be fully documented by the supplier.
VAT, customs and other charges imposed by Norwegian authorities are not to be included in the
basis for calculation.
2.1.3 Conditional Framework Agreements for Industrial Co-operation
Suppliers to the Norwegian Armed Forces, which during a five year period may be awarded
multiple contracts separately not exceeding the threshold value, must sign a conditional
framework Industrial Co-operation Agreement if the aggregate contract value might exceed the
threshold value. The conditional framework agreement becomes effective as soon as the
accumulated contract value during the revolving five year period exceeds the threshold value.
Whenever a framework agreement becomes effective, all subsequent contracts concerning the
same supplier are subject to the framework agreement, regardless of the contract value.
2.1.4 Conditional Industrial Co-operation Agreements, Additional Acquisitions
When contracts are entered into with foreign suppliers, of which the aggregate contract value, if
option(s) are exercised, will exceed the threshold value, a conditional Industrial Co-operation
Agreement must be entered into. The same applies when it is likely that potential future
additional acquisitions of the same or similar type of materiel from the same supplier within a
subsequent five year period will exceed the threshold value. Such a conditional Industrial Co-
operation Agreement becomes effective when the aggregate contract value exceeds the threshold
value.
If an Industrial Co-operation Agreement is already entered into with a supplier, and an additional
acquisition consists of the same or similar type of materiel (from the same supplier), the
previously entered into Industrial Co-operation Agreement shall be increased with a value equal
to the additional acquisition.

2
In these regulations, «Norwegian industry» means businesses with development and/or production activities in
Norway and registered in the Brønnøysund Register Centre. «Foreign supplier» denotes a supplier which is not
registered in the Brønnøysund Register Centre.
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2.1.5 Acquisitions from Norwegian Principal Suppliers

For acquisitions where the main supplier is located in Norway, but where significant parts of the
delivery is produced abroad, and such an individual part on its own exceeds the threshold value,
an Industrial Co-operation Agreement with the foreign subcontractor is normally required.

2.2 Procedural Requirements for Entering into Industrial Co-operation

Agreements
2.2.1 Requirements for the Suppliers Offer
In its offer, the supplier is not permitted to require an exemption from an Industrial Co-operation
Agreement, submit an alternative offer without an Industrial Co-operation Agreement, or make
reservations from parts of the provisions of these Regulations or from articles in the relevant
standard agreements. Such offers will be rejected.
2.2.2 Plan for Industrial Co-operation
In relation to acquisitions of which the contract value is NOK 500 million or more, MoD will, in
co-operation with the Armed Forces, the industry and other affected parties, develop a plan for
industrial co-operation. Such plan should be developed at an early stage, and may be included in
the invitation to offer.
In relation to acquisitions of which the contract value is less than NOK 500 million, an industrial
co-operation plan could be developed if the acquisition is of such nature that it seems likely that
the Norwegian industry will be able to provide substantial parts of the delivery in co-operation
with foreign suppliers. In addition, it should be possible to establish a strategic co-operation
between the Norwegian industry and the foreign supplier, so that the acquisition provides an
important contribution to maintenance or development of the competences of the Norwegian
industry in areas of importance to the Armed Forces.
In relation to other acquisitions, MoD may decide to develop a plan for industrial co-operation.
2.2.3 Industrial Co-operation as an Evaluation Criteria
Although cost and performance, as well as time of delivery, are the essential criteria in the
evaluation of offers, MoD will put considerable emphasis on the contractor’s proposed industrial
co-operation plan in the overall evaluation. See also Section 2.2.1.
MoD’s evaluation will also include an assessment of a potential supplier's past performance
under both completed and ongoing Industrial Co-operation Agreements. This assessment also
includes other entities or departments within the same corporation/industrial group, even when
these are located in other countries than the potential supplier.
2.2.4 The Negotiation Procedure
The acquisition authority must not sign a contract with a supplier until an Industrial Co-operation
Agreement between MoD and the supplier has been finally negotiated.

2.3 General Requirements Concerning Industrial Co-operation Agreements

2.3.1 Use of Standard Agreements
Standard agreements prepared by MoD in accordance with the provisions set forth in these
Regulations, are the basis for the negotiations with the supplier. Exemptions from the provisions
or the standard agreements are only granted in accordance with Section 1.6.
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2.3.2 Language Requirements

Industrial Co-operation Agreements shall be in the English language (United Kingdom).
2.3.3 Governing Law
The Industrial Co-operation Agreements are governed by Norwegian law.
Norwegian courts of general justice or courts of arbitration established according to the
Norwegian Arbitration Act have exclusive jurisdiction to hear any legal disputes arising from the
Industrial Co-operation Agreements.
2.3.4 Public Disclosure
As a rule, the Industrial Co-operation Agreements are exempted form public disclosure in
accordance with Offentlighetslovens (the Public Information Act) section 5.1, cf. Forvaltnings-
lovens (the Public Administration Act) section 13.2. However, the value of the agreement, the
remaining obligations, and supplier’s name are normally regarded as information subject to
public disclosure.
2.3.5 Implementation Costs Carried by the Supplier
The supplier must carry all its own costs related to the practical management and implementation
of the agreements, such as, but not limited to, administration and travel expenses. Such expenses
are not to be deducted from the suppliers commitments under the agreement.

PART 3 REQUIREMENT FOR INDUSTRIAL CO-OPERATION

3.1 The Industrial Co-operation Commitment
3.1.1 Scope
The supplier must undertake to carry out industrial co-operation equal to a minimum of 100 % of
the value of the basis of calculation, as described in Section 2.1.2 (hereafter «the Commitment»).
For all acquisitions, a substantial part of the Commitment must be covered by binding contracts
with the Norwegian industry prior to the Armed Forces entering into an agreement with the
supplier.
3.1.2 Category Allocation
At least 50 % of the Commitment must be fulfilled within Category I, and a maximum of 25 %
of the Commitment may be fulfilled by use of Category III, as defined in Section 3.4.3.

3.2 Performance of the Commitment

The responsibility for performance of the Commitment rests with the supplier. The supplier may
involve his parent company, associated companies, subsidiaries or subcontractors, provided that
these are located outside Norway.

3.3 Life-Cycle Clause

In relation to acquisitions where upgrades, updates and maintenance of the equipment are
expected, the supplier must commit to implement industrial co-operation in relation to all
potential future contracts related to the equipment when entering into the main contract. This is
done by establishing a long term Industrial Co-operation Agreement when entering into the main
contract.
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3.4 Industrial Projects

3.4.1 Approval
All industrial projects are subject to MoD approval before execution. Category, type of project,
estimated values and multipliers are established at the time of approval. MoD determines
standard procedures for such approvals.
3.4.2 Requirement of Technological Content, Areas of Priority
The projects should employ an equal or higher technological level than the products procured by
the Armed Forces. Acquisition of Norwegian raw materials or low-tech products will not be
approved.
Based on the demands of the Armed Forces, and in consultation with the Norwegian industry,
MoD has identified eight areas of technological competence that shall give guidance to the
industrial co-operation. These are:
1. Information and communication technology
2. System integration and architecture
3. Missile technology and autonomous weapon and sensor systems
4. Underwater technology and sensors
5. Simulation technology
6. Weapon and missile propulsion technology, ammunition and military explosives
7. Material technology
8. Maritime technology
A significant part of the projects should be within the currently applicable technology
competence areas.
Projects that contribute to the maintenance, development or creation of system competences of
importance to the Norwegian Armed Forces, are given priority.
3.4.3 Categories
Industrial projects must be within one of the three following categories:
Category I: Strategic projects
Category II: Non-strategic, defence related projects
Category III: Security related projects and dual use projects
Strategic projects are those that are considered to be of strategic importance to both the Armed
Forces/the national security and the Norwegian industry. These are projects that contribute to the
development and enhancement of national competence within one or more of the technology
competence areas.
Defence related projects are projects that comprise military materiel and services, as well as
related technology, and which are mainly used by a nation’s armed forces.
Security related projects are projects that comprise materiel, services and related technology,
which are made use of in the protection against non-military threats to the security of the society,
and other vital security interests.
Dual use projects are projects which are relevant to both the civilian and military sectors,
including technology not specially constructed or modified for military use. Projects which
comprise development of expertise and technology in the civilian sector, in areas that may
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become of great importance to the Armed Forces in the future, may also be approved in this
category.
3.4.4 Norwegian Partners in Industrial Projects
The Norwegian partner in industrial projects must be from industry or research and development
communities located in Norway. In cases where it is important to maintain or create systems or
maintain competences within the Norwegian Armed Forces, entities within the Norwegian
Defence Sector may be approved as a Norwegian partner.
In the event that a Norwegian partner is not acting in accordance with, or previously has not
acted in accordance with, the Norwegian Defence Acquisition Regulations (ARF), section 1.8.7
with attachments, and/or ARF, section 2.10, MoD may reject to approve proposed industry
projects where such a Norwegian partner is involved.
3.4.5 Direct Industrial Co-operation
As a main rule, there is no general requirement of direct industrial co-operation, i.e. projects that
include sub-contracts to the acquisition in question. However in particular cases, direct industrial
co-operation may be required if considered to be of great importance to the Armed Forces.
Approval of direct industrial co-operation projects proposed by the supplier is only given when
the following conditions are met:
• The projects must not in a life-cycle perspective entail increased costs in relation to the
delivery to the Armed Forces, e.g. they must not result in the creation of unnecessary
duplication of production lines.
• The Norwegian company must be competitive.
• The projects must normally constitute a significantly larger part of the production series than
the Armed Forces’ acquisition.
3.4.6 Project Types
The following types of industry projects may be approved:
a) Technology co-operation
b) Assistance related to market development and market access
c) Research and development co-operation
d) Acquisition of defence materiel, defence and security related products or dual use
products from Norwegian industry. Acquisition of defence materiel developed and
produced in Norway, by the authorities of the supplier’s home country or other countries
will normally be accepted as industrial co-operation if the acquisition contributes to
market access for the Norwegian industry
e) Technology and know-how transfer to Norwegian partners
f) Investments that contribute to strengthening of the competitiveness of the Norwegian
industry
Technology co-operation denotes projects where the Norwegian and foreign partner participate
on an equal basis and contribute fairly equal towards producing the next generation of products,
preferably on a system level.
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3.4.7 Requirement of Causality

In general, industrial projects must be based on the fact that an Industrial Co-operation Agree-
ment has been entered into.
The continuance of an existing business relationship will normally not be approved. An increase
in size of the business or changes in the product portfolio may however be accepted, provided
that this results in increased business activity or development of technology and/or production
capacity.

3.5 Valuation
3.5.1 General Criteria
When valuating industrial projects, the following elements must be assessed:
a) Technology co-operation
• The value of the Norwegian partner’s export of products resulting from the technology
co-operation
• The value of the foreign partner’s contribution to the technology co-operation
• The Norwegian partner’s proprietary rights to technology and know-how
b) Assistance related to market development and market access
• The value of turnover resulting from the assistance
c) Research and Development co-operation
• The value of contracts the foreign partner places with Norwegian partner
• The value of the foreign partner’s partial financing of other contracts with the
Norwegian partner
The Norwegian partner’s self financed contribution or the foreign partner’s contribution
outside Norway are not credited.
d) Acquisition of defence and security related products or dual use products from the
Norwegian industry
• Sales value of the product(s) in question
e) Transfer of technology or know how to a Norwegian partner
• The value of the Norwegian partner’s export of product(s), resulting from the techno-
logy transfer
• The value of the foreign partner’s concrete and measurable contribution to the techno-
logy transfer
• Potential market value of the technology or know how in question
• The Norwegian partner’s rights to technology and know how
The foreign partner must establish that the Norwegian partner’s export exceeds ten times
the credited value.
f) Investments that contribute to the strengthening of the Norwegian industry’s
competitiveness
• Amount of funds invested
Purchases of shares and the creation of/payments to investment funds are not credited.
Projects that qualify as several project types are valuated separately under each type for the
qualifying part.
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3.5.2 Requirement for Value Added in Norway

Only the part of valued added in Norway by an industrial co-operation project is credited
according to Section 3.5.1. When the project valuation is based on production, and the Nor-
wegian share of the added value exceeds 80 per cent, the project will receive 100 % credit. The
Norwegian part of the added value will not be credited if this constitute less that 20 % of the total
project value.
3.5.3 Use of Multipliers
The value of an industrial co-operation project calculated in accordance with sections 3.5.1 and
3.5.2 may be adjusted through use of multiplication factors.
The following factor scale may be applied for the various types of industrial projects:
Technology co-operation 1,0 – 5,0
Assistance for market development and market access 0,1 – 2,0
Research and development co-operation 1,0 – 5,0
Acquisition of products 1,0
Technology and know-how transfer to the Norwegian partner 1,0 – 2,5
Investments 1,0 – 5,0
If the Norwegian partner is classified as a medium sized or small business 3 (SME), a multiplier
of 1.3 or 1.5 is applied in addition to the foregoing.
In cases where a Norwegian SME is subcontractor to deliveries from larger Norwegian
companies, where the deliveries have been accepted as an industrial co-operation project, the
additional multipliers applies to the value of the SME part of the delivery.
In determining multipliers, the project content will be evaluated against the objective of these
Regulations, in addition to its categorization in accordance with Section 3.4.3.

3.6 Early Industrial Co-operation

Potential suppliers may apply for industrial project approval prior to signing the acquisition
contract. Possible conditions may be specified in separate agreements between MoD and the
potential supplier.
Potential contractors that fail to win contracts are not entitled to make any claims against
Norwegian authorities for financial compensation of expenses incurred in early industrial co-
operation proceedings.

3.7 Credit Approval

3.7.1 Time of Crediting
Apart from the exemption in Section 3.7.2, all completed project activities are credited in arrears.
If an approved project has been duly implemented in accordance with the documentation which
formed basis for the approval of the project, and progress can be satisfactorily documented, the
credit may not be rejected unless any of the parties are in breach of the contract.
3.7.2 Credit in Advance
If the turnover in a type (a) or (e) (as indicated in Section 3.5.1) project is realized only
considerably into the future, a minor part of the expected project value may be credited in

3
According to EEA definition.
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advance. Such a part must not exceed 10 % of expected project value. Credit given in advance
are deducted from the credit approved in arrears in accordance with Section 3.7.1.
3.7.3 Approval of Credit in Category II and III
When aggregate approved credit within category II or III, either separately or combined, reaches
the stipulated ceiling within the category (as stated in Section 3.1.2), no more credit will be
approved in that category(ies). Surplus credit will be recorded, however, in case of an increase of
the commitment. Such records do not confer any rights on the supplier for the conclusion of
future banking agreements as described in Section 4.2.

3.8 Agreement Period, Milestones

The Industrial Co-operation Agreement must state when the commitment shall be fulfilled in its
entirety. The agreement period is normally limited to ten years. If the period of delivery extends
beyond ten years, the agreement period must, as a minimum, have the same duration as the
delivery period.
If the agreement period is from three to five years, a minimum of one milestone is mandatory.
For five to eight year agreement periods, minimum two milestones are mandatory. For eight to
ten year agreement periods, minimum four milestones are mandatory.
The agreement terminates when the commitment is completely performed.

3.9 Penalty Clauses

If at the expiration of the Industrial Co-operation Agreement, the supplier has failed to meet the
commitments, including strategic content requirements, he is obliged to pay final compensation.
The amount of the final compensation must be stated in the Industrial Co-operation Agreement,
but shall not be less than 10 % of the outstanding value.
Suppliers that fail to meet the milestones, are obliged to pay milestone compensation as stated in
the agreement. This shall not be less than 10 % of the outstanding value, as according to the
milestone schedule. If stated in the agreement, the milestone compensation may be postponed,
provided that a bank guarantee of an equivalent amount is issued. This bank guarantee will be
cancelled upon fulfilment of the milestone requirement. If at the expiration of the agreement, the
supplier still has not fulfilled the requirement in question, the milestone compensation may be
deducted from the bank guarantee.
Payment of milestone or final compensation does not exempt the supplier from the commitment,
and the agreement will remain in force until the commitment is fulfilled.

PART 4 TRANSFER OF CREDIT

4.1 Banking Agreement
A banking agreement is an agreement between MoD and a foreign supplier that provides for an
opportunity to accumulate credit which again may be credited (applied to) future Industrial Co-
operation Agreements. Banked credit must not be used to fulfil more than 40 % of the Industrial
Co-operation Agreement that it is transferred to (applied to).
If otherwise not stated, accumulated credit is valid for a period of five years.
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4.2 Surplus Credit

If the supplier has earned surplus credit at the expiration of the agreement, it may apply to have
excess credit in Category I and II transferred to a banking agreement.
For particularly important strategic projects, the supplier may request MoD for continued
crediting after the commitment has been fulfilled. Such credit are transferred to a banking agree-
ment.

4.3 Transfer of Credit in Banking Agreements

Suppliers that have entered into banking agreements may transfer banked credit to other
departments/business units within the group or other undertakings where the supplier holds a
minimum 50 % ownership interest, to fulfil other industrial co-operation agreements. In special
cases, MoD may approve third party transfers.

4.4 Swapping Arrangements

MoD may in special circumstances approve an application for swapping of industrial co-
operation commitments, i.e. an exchange of industrial co-operation commitments between
several parties.

PART 5 REPORTING AND FOLLOW UP

5.1 Annual Reporting from the Supplier
By 31 March each calendar year, the supplier must submit a report comprising a request for
activities carried out the previous calendar to be approved and credited. The supplier may not
request approval and credit for activities carried out more that two years before. The report must
be submitted in accordance with the format prescribed by MoD. MoD will provide feedback to
the supplier within 30 September the same year.

5.2 Access to Information

The Supplier, other foreign partners and Norwegian partners are obliged to grant MoD access to
all project documentation and other information related to individual projects, whenever MoD so
requires and to the extent that MoD deems necessary. The parties can not conclude any agree-
ments with each other, or with third parties, that restrict MoD’s rights under this provision.

5.3 Requirement of Objectivity

The supplier or other foreign partners must not enter into agreements with a Norwegian partner
which restricts the Norwegian partner’s opportunity to convey his independent and objective
evaluation of a proposed project, or other necessary information, to MoD. The supplier or other
partners are not allowed to enter into agreements with a Norwegian partner that obligates the
Norwegian partner to seek to influence MoD or other Norwegian authorities, for instance by
supporting the supplier’s demands concerning valuation, categorization, factor use, etc.

5.4 Obligations of Norwegian Partners

Without undue delay, the Norwegian partner in industrial projects is obliged to answer all MoD
requests related to annual supplier reporting or other demands for information. Upon completion
of the Industrial Co-operation Agreement, MoD may request that the Norwegian partner submits
a report which describes the benefits and value of the project.
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PART 6 BREACH OF CONTRACT

6.1 Supplier’s Breach of Contract
Breach of commitments under an Industrial Co-operation Agreement are included in evaluation
of future offers submitted by the supplier in competition for new contracts with the Armed
Forces. Failure to fulfil the obligations of an Industrial Co-operation Agreement at the expiration
of the agreement will be considered as breach of commitment and lead to exclusion of the
supplier from competition for future deliveries to the Armed Forces, until the commitment has
been fulfilled.
In the event of breach of commitment related to a specific industrial project, MoD may re-
evaluate the approval of the project as well as consider revocation of already approved credit.