Pratt and Whitney Consent Agreement

Pratt & Whitney (P&W) is a leading aircraft engine manufacturer in the United States that serves both commercial and military aviation needs. In 2020, the company settled with the U.S. State Department after violating the International Traffic in Arms Regulations (ITAR) rules. The settlement, which was a consent agreement, was reached to resolve issues related to unauthorized exports and incidents of inaccurate record-keeping.

The consent agreement between Pratt & Whitney and the State Department was announced in August 2020. The company agreed to pay a $75 million fine, which is one of the largest ever imposed by the State Department for ITAR violations. The agreement relates to P&W’s activities over several years, including 2012 to 2015. During this time, P&W failed to properly manage and account for defense articles and technical data that were provided to foreign persons in the Netherlands, Japan, and other countries.

ITAR regulations are in place to ensure that U.S. defense technologies are not made available to individuals or entities that may pose a risk to national security. Companies that manufacture, export, or transfer defense articles are required to comply with the regulations. The violations committed by P&W were serious, and included the unauthorized sharing of technology with foreign nationals who were not approved to receive it.

The consent agreement required Pratt & Whitney to undertake remedial measures, such as adding additional compliance measures and controls to their internal processes. This means that the company will have to invest in new systems and procedures to better manage their ITAR-related activities and ensure compliance with the State Department’s regulations.

Pratt & Whitney is not the first aircraft engine manufacturer to have faced such regulatory issues. In 2019, General Electric and Honeywell also settled with the State Department for similar violations of ITAR. These consent agreements demonstrate the United States government’s commitment to enforcing regulations that protect national security interests.

In conclusion, the Pratt & Whitney consent agreement serves as a reminder to all companies that operate in the defense industry to take compliance with ITAR seriously. The stakes are high, and companies must be aware of the potential consequences of non-compliance. By understanding and adhering to ITAR regulations, companies can ensure that they operate in a way that protects national security interests while simultaneously remaining competitive in the global defense market.