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Section 5103.390: Interagency coordination concerning business mergers and acquisitions.

(a) The DoD position concerning the impact of a business merger or acquisition on national security (including the impact on the Department and on the defense industrial base) will be determined at the level of the Under Secretary of Defense (Acquisition, Technology, & Logistics) or higher. Only the Secretary of Defense, the Deputy Secretary of Defense, and the Under Secretary of Defense (Acquisition, Technology & Logistics) (USD(AT&L)), or the DoD General Counsel, are authorized to communicate the DoD position to the media or to the two federal agencies responsible for enforcement of the antitrust laws, i.e., the Department of Justice and the Federal Trade Commission (the “antitrust agencies”).

(b) No member of the Department of the Army may communicate, either to the antitrust agencies or to the media, any official position concerning the impact that a particular merger or acquisition will have or may have on national security, unless delegated specific authority for such purpose.

(c) In connection with litigation, only the DoD General Counsel or his designee will communicate the DoD position concerning the impact that a particular merger or acquisition will or may have on national security.

(d) It is Army policy to cooperate with the antitrust agencies as they review a merger or acquisition involving an Army supplier. Department of the Army personnel may provide factual information (such as past and anticipated future sources and quantities of supply for particular products) to the antitrust agencies, provided that such communication is coordinated in advance with the USD(AT&L) and the DoD General Counsel.

(e) Army personnel are authorized to respond directly to requests for information received from the office of the USD(AT&L) or from the DoD General Counsel’s office. The Office of the Army General Counsel (Army OGC), telephone (703) 697-5120, will provide liaison with DoD on mergers and acquisitions when requested.

(f) Army support for, or opposition to, a proposed merger or acquisition will be determined at HQDA, after appropriate coordination and approval in the Office of the Secretary of Defense. Army personnel who have information or opinions relevant to development of the Army position should forward their input, in coordination with local counsel, to the Assistant Secretary of the Army (Acquisition, Logistics and Technology) (ASA(ALT)) or to the Army OGC.

[AFARS Revision #21, dated May 22, 2007]




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