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>From http://www.worldtribune.com/worldtribune/breaking_3.html

}}}>Begin
Israelis may be excluded from Pentagon contracts

SPECIAL TO WORLD TRIBUNE.COM
Monday, March 11, 2002

WASHINGTON — Israeli nationals could be banned from participating in U.S.
defense contracts under new regulations that seek to keep foreigners out of sensitive
projects.

U.S. officials said the Defense Department plans to reduce access by foreign
nationals to military programs. They said this would include the use of foreign
nationals in contracts relating to unclassified information used by the Pentagon.

Israeli nationals are said to be included in information technology-related contracts
with the Pentagon, according to Middle East Newsline. This includes the sale of
encryption technology and software required to protect the department's huge data
base.

Pete Nelson, the Pentagon's deputy director for personnel security, did not refer to
Israelis in an announcement of plans to limit foreign nationals from computer-related
contracts. But he said the department is studying proposals to reduce participation of
foreign nationals in contracts that deal with what he termed sensitive, albeit
unclassfied, material.

"Some foreign nationals — those in the most sensitive positions — may not be
permitted to remain in those positions," Nelson said. "As we review our security
requirements as a nation, we need to ensure all people with access to sensitive IT
[information technology] systems are cleared and properly vetted for the material to
which they have access."

The plan focuses on projects for the U.S. Navy, Nelson said. In a statement, the
official said everybody dealing in information technology projects for the navy would
be vetted even when dealing with unclassified material.

Foreign nationals are already restricted from dealing with classified defense projects.
The new regulations would be implemented between 60 and 90 days.

The Pentagon has expanded the outsourcing of computer contracts as a means to
reduce costs and streamline personnel. Israeli companies and their affiliates in the
United States — which have developed security data systems — are involved in a
range of contracts for the Pentagon and the U.S. government.

"The IT business has become largely contractual, with programming and data work
being farmed out to areas where there is cheap labor," Nelson said. "If this trend
does not simultaneously take into consideration security requirements, there would
be reason for concern."

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