I don't typically cover exports here, although it is part of my practice. I am making an exception because this issue has now come up from a number of sources. So, I want to do what I can to clear the air. But, I do not have a conclusion for all involved.
The fact is that six prominent freight forwarders have been debarred from government contracting by the Air Force. This action follows guilty pleas by the companies in a federal criminal price fixing case. The companies involved are:
- EGL Inc.
- Kühne + Nagel International AG
- Geologistics International Management (Bermuda) Limited
- Panalpina World Transport (Holding) Ltd
- Schenker AG,
- BAX Global Inc.
Foreign persons (as defined in § 120.16) other than governments are not eligible. U.S. persons who have been convicted of violating the criminal statutes enumerated in § 120.27, who have been debarred pursuant to part 127 or 128 of this subchapter, who are the subject of an indictment involving the criminal statutes enumerated in § 120.27, who are ineligible to contract with, or to receive a license or other form of authorization to import defense articles or defense services from any agency of the U.S. Government, who are ineligible to receive export licenses (or other forms of authorization to export) from any agency of the U.S. Government, who are subject to Department of State Suspension/Revocation under § 126.7(a)(1) through (a)(7) of this subchapter, or who are ineligible under § 127.7(c) of this subchapter are generally ineligible.
Contractors are excluded from receiving contracts and from directly or indirectly receiving benefits under Federal nonprocurement programs, and agencies shall not solicit offers from, award contract to renew or otherwise extend the duration of current contracts, or consent to subcontracts with these contractors, unless the acquiring agency's head or a designee determines that there is a compelling reason for such action. Government prime contractors, when required by the terms of their contract, shall not enter into any subcontract equal to or in excess of $30,000 with a contractor that is debarred, suspended, or proposed for debarment, unless there is a compelling reason to do so. Debarments are for a specified term as determined by the debarring agency and as indicated in the listing.
Listed persons are prohibited from participating directly or indirectly in the export of defense articles or United States origin related technical data or in the furnishing of defense services for which a Department of State license or approval is required.