State of Israel regulations and subsequently Israel Aerospace Industries procedures mandate to require obligation of a foreign supplier (vendor or subcontractor) to enter upon business cooperation in accordance with these regulations. Business cooperation shall be by way of a local subcontract, investment, know-how transfer or acquisition of goods made in Israel or of work or services in Israel in a minimal defined values (based on the value of the contract), as detailed in the abstract of the regulations (“Mandatory Tenders Regulations“). The supplier shall be required to accept and sign the “Foreign Supplier’s Undertaking” forms.
In many cases, IAI undertakes to accomplish a foreign offset program with respect to works covered by IAI contracts to certain countries/customers. In those cases, the suppliers shall be required to cooperate with IAI in the fulfillment of any foreign offset program obligation that IAI may have accepted as a condition of any sale. The supplier shall be required to accept and sign the “Special Offset Provisions“.
