BLUE LANTERN: BROKER BARRY J. BARNES: BROKER INQUIRY

UNCLAS SYDNEY 000246 SENSITIVE SIPDIS STATE FOR PM/DTCC JOUBERT-LINEEB AND EAP/ANP E.O. 12958: N/A TAGS: ETTC KOMC AS SUBJECT: BLUE LANTERN: BROKER BARRY J. BARNES: BROKER INQUIRY K-1632 REF: STATE 93583 ¶1. (SBU) U.S. Consulate Sydney conducted a site visit of BDBC PTY LTD, located at 168 Warrimoo Avenue, St.Ives, NSW (a suburb of Sydney) on November 2. The following information was gathered during an on-site interview and inspection of the business premises: -- BDBC was founded in 2006 by Barry Barnes, who is the sole owner of the company. Barnes does business from a home office which is also listed as BDBC's registered address. He served in the defense attache's office in the Australian embassy in Washington during the mid-80s. --BDBC is deemed to be a broker for DRS Technologies (Parsippany, NJ),a defense systems integrator providing integrated products and services in electronic sensor, power, and military support systems on a wide range of land, sea, and air weapons systems. Barnes noted that he discussed with the Department of State whether BDBC would fall under ITAR regulations since Barnes believes he essentially provides strategic advice to DRS regarding the Australian market, rather than acting as their agent or representative. State told him that he would fall under the ITAR definition of a broker, so he registered and paid the required fee. According to Barnes, DRS has not yet sold any products or services into the Australian market, but is intent on doing so. --Barnes, through BDBC, is advising DRS on various Australian Defense Materiel Organization (DMO) proposals to procure systems and services. DRS pays him a retainer fee and would also pay a 'success fee' if they win an opportunity identified by BDBC. Barnes is currently targeting a DMO proposal for ship control systems which could lead to a DMO request for proposal. Barnes believes the timeline for any such procurement would be about 2 years. --Barnes' home office has an alarm system as well as a class-B safe. He states that he does not possess ITAR-covered data and products. If DRS is successful in the Australian market, it is possible some ITAR-related data would pass through BDBC. Barnes is very well-versed in ITAR / USML regulations on sensitive technologies and prohibitions against unauthorized re-transfers and re-exports. ¶2. Comment: Post is satisfied that BDBC is a reliable broker/recipient of USML items. End Comment. FERGIN