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Protecting you, Protecting U. S. SAFETY Act The Support Anti-terrorism by Fostering Effective Technologies Protecting you, Protecting U. S. SAFETY Act The Support Anti-terrorism by Fostering Effective Technologies Act of 2002 Bruce Davidson Deputy Director Office of SAFETY Act Implementation (OSAI) Science and Technology Directorate Department of Homeland Security From Science and Technology… Security and Trust 1 1

The SAFETY Act in the News… Rapiscanis proud to have effectively of Security “ADT The SAFETY Act in the News… Rapiscanis proud to have effectively of Security “ADT helps ADT Security proud to 90 percent Quatrotec, Inc. : secure be one of the demonstrated to DHS that “Brijot key is Brijot Imaging was that Rapid Responder is "Quatrotecfactor "Another Inc. : Prepared Inc. : Products, Response, Services, management system cargo by Quatrotec. Inc. : BIS- ® companies, significant impact in the fight the integrated 500 half Systems, Responder our technology stands and 'Certified' the only crisis few Fortune Conventional X-ray baggage to make Inc. : Rapidand Selects Rapiscan for Carry-On Screening Electroniccountry’sof Homeland Security Baggage service providers tonational the U. S. and WDS™ 500 TSA 600 threats, ” said Mitchel J. Laskey, president of the terrorist against. Department systems Prime handling fire, and other first top 50 receive • “Allows police, The SAFETY Act. The certification through. Services Security instantly Transportation at Brijot. “Successfully meeting the Cargo. SAFETYwave more officer Security Administration (TSA) Handling modeland regionalapproval, " said “A passive millimeter Act bank holding full lines validates Rapid Responder as an responders to and chiefthe accesscontract to Rapiscan Systems, the security executive process detection awarded a Integration are any than 300 data points for nonconcealed threat are • “These systems • “The services associated with the SAFETY Act review procedure Dominic Della response standards tactical Maggiora, President structure, The Technology, and safe anti-terrorism of companies, and more than Inc. , effective, system. including reliable, OSI Systems half based in Hawthorne, intrusive X-ray devicessatellite intended to division of Systems help Prime plans, evacuationthe ofgeospatial (GIS)busiest airports in our Quatrotec. "Particularly given the which confirms places Rapid Responder on the includes routes, technology and the quality of our technology and reflects the utilizing ionizingand for the company's new 620 AT X-ray screening secure public radiation, and the. Calif. , 30 imagery, 1603 andand hardware the GEN 2 models, These systems include to softwarefacilities photos, Product List for Homeland DHS exterior and on our extremely competitive focus interior and private Approved floor uses millimeter professional proficiency of the Brijot team. ”new installation shut-off. United deal valued at up to $97 million. The and integration create a displaywave in a States. ” an plans, utilitydevices Finnell, president and CEO of locations, Security. “ – Jim infrastructure. ”forandsensitive market of and image suspicious detectorsto liability of airport baggageinventories, hazardous chemical densityoperator toview a devices will screen the carry-on luggage of Approval of Brijot's BIS-WDS® under the SAFETY Act objectspicture of metal, cargo handling. Prepared and more. ” Act systems, Response, Inc. based made • SAFETY in which airport security, we are proud to offer Rapiscan provides Brijot, its customers, distributors and subcontractors protection from and reduced liability for lawsuits and claims arising out of animmediately from where Brijot's technology is to be dismissed act of terrorism Responder system in 1, 000 • SAFETY Act Designated utilized. Importantly, these benefits are only available to schools…” alleging terror-related liability claims and Certified customers and others utilizing arising out of the use of Quatrotec's SAFETY Act approved products, 2 2 services. " like Brijot's BIS-WDS®. ” plastic, ceramic, composite, security and material types passengers under the contract, which shapes Act Designated • SAFETYsystems, and Designated and significant liability liquid, and in baggage, related components. Certified contained other materials protections to our Certified a subject person announced Tuesday. present on other parcels, or. Act Designated SAFETY • customers, including the opportunity “…has been awarded $7 million to from a stand-off distance. ” containers are outlined. ” install the company’s Rapid and Certified ®

A Summary of the SAFETY Act • The Support Anti-terrorism by Fostering Effective Technologies A Summary of the SAFETY Act • The Support Anti-terrorism by Fostering Effective Technologies Act of 2002 (SAFETY Act) was enacted as part of the Homeland Security Act of 2002 (Title VIII, Subtitle G) • Intended to facilitate the development and deployment of anti-terrorism technologies by creating systems of “risk management” and “litigation management” • Protections apply only to claims arising out of, relating to, or resulting from an Act of Terrorism 3 3

What is considered an “Anti-Terrorism Technology? ” • Any technology that is designed, developed, What is considered an “Anti-Terrorism Technology? ” • Any technology that is designed, developed, modified or procured for preventing, detecting, identifying, or deterring acts of terrorism or limiting the harm such acts might otherwise cause 4 4

What is Eligible for SAFETY Act Protections? Examples of eligible technologies: The SAFETY Act What is Eligible for SAFETY Act Protections? Examples of eligible technologies: The SAFETY Act liability protections apply to a vast range of technologies, including: • Threat and vulnerability assessment services • Detection Systems • Blast Mitigation Materials • Products • Screening Services • Sensors and Sensor Integration • Software and other forms of intellectual property • Threatening Object Detectors • Decision Support Software • Security Services • Crisis Management Systems 5 5

Difficulties in Civil Cases Involving Terrorism Obtaining a recovery Did the ATT fail? • Difficulties in Civil Cases Involving Terrorism Obtaining a recovery Did the ATT fail? • Intentional attack • Not 100% • Security architecture • Gaps • Availability of evidence 6 6

Snapshot of the Distinction Certification: High confidence it will continue to be effective. Designation: Snapshot of the Distinction Certification: High confidence it will continue to be effective. Designation: Proven effectiveness. DTED: Additional evidence of effectiveness needed. Shows potential. 7 7

Benefits of SAFETY Act Designation • Liability = Insurance required by DHS • Exclusive Benefits of SAFETY Act Designation • Liability = Insurance required by DHS • Exclusive action in Federal court • No joint and several liability for non-economic damages • No punitive damages or prejudgment interest • Plaintiff's recovery reduced by amounts from collateral sources 8 8

Importance of SAFETY Act’s Liability Protections Preserve Seller’s essential assets Greater chance the enterprise Importance of SAFETY Act’s Liability Protections Preserve Seller’s essential assets Greater chance the enterprise will survive ($$$, executive focus, reputation) Incentive for early settlement of claims • Designation (cap, no punitives, no prejudgment interest, limits on JSL) • Certification (GCD, Motion to Dismiss) Consolidate litigation • Federal Court: National procedure (FRCP); predictability, capacity • Reduce forum shopping 9 9

SAFETY Act Protections Extend to Users “Such cause of action may be brought only SAFETY Act Protections Extend to Users “Such cause of action may be brought only against the Seller of the QATT and may not be brought against the buyers, the buyers’ contractors, downstream users of the QATT, the Seller’s suppliers or contractors, or any other person or entity…” Preamble to Final Rule, 6 CFR Part 25, at 33150. 10 10

The SAFETY Act as a Requirement 11 11 The SAFETY Act as a Requirement 11 11

The SAFETY Act as a Requirement 12 12 The SAFETY Act as a Requirement 12 12

Criteria for SAFETY Act Designation • Prior United States Government use or demonstrated substantial Criteria for SAFETY Act Designation • Prior United States Government use or demonstrated substantial utility and effectiveness • Availability of the Technology for immediate deployment in public and private settings • Existence of extraordinarily large or unquantifiable potential third party liability risk exposure to the Seller or other provider of the technology • Substantial likelihood that the Technology will not be deployed unless SAFETY Act risk management protections are extended • Magnitude of risk exposure to the public if the Technology is not deployed • Evaluation of scientific studies that can be feasibly conducted in order to assess the capability of the Technology to substantially reduce risks of harm • Whether the Technology is effective in facilitating the defense against Acts of Terrorism • ATT determination made by Federal, State, or Local officials Red=Technical criterion Blue=Economic criterion 13 13

What Do We Look for in Terms of Effectiveness in a SAFETY Act Application? What Do We Look for in Terms of Effectiveness in a SAFETY Act Application? • Successful testing in operational environment Ø Operational testing ü Evidence of performance metrics, including: o Probability of Detection o False Positive and False Negative Rates o Limits of Detection (and why that limit is relevant) o Interferrents o Maintenance and Training • • • Suitable performance of past deployments documented Domain expertise appropriate and available In/external audits favorable Customer feedback favorable QA plans documented Repeatability proven 14 14

What Are the Benefits of SAFETY Act Certification? In addition to the benefits provided What Are the Benefits of SAFETY Act Certification? In addition to the benefits provided under Designation, Certification allows a Seller to: • Assert the Government Contractor Defense for claims arising from acts of terrorism • Be placed on DHS’s Approved Products List for Homeland Security • Certificate of Conformance issued to the Seller 15 15

Additional Criteria for Certification • Designation is a prerequisite for granting Certification • To Additional Criteria for Certification • Designation is a prerequisite for granting Certification • To receive Certification, a Qualified Antiterrorism Technology must also be shown to: Ø Perform as intended Ø Conform to the Seller’s specifications Ø Be safe for use as intended ü Seller is required to provide safety and hazard analyses 16 16

Certification Performs as intended: High confidence it will continue to be effective • Consistent Certification Performs as intended: High confidence it will continue to be effective • Consistent positive results (e. g. , long-term low failure rates and false alarms) • Reliability/Availability is high (e. g. , MTBF) • Performs in accordance with performance specifications • Installation, use, maintenance procedures proven • Documented processes (e. g. , training, hiring, technology refresh) are being followed • Standards are identified and met • QA/QC processes are effective Note: Designation is a prerequisite 17 17

Developmental Testing and Evaluation Designation (DT&E Designation) • Certain Anti-Terrorism Technologies being developed could Developmental Testing and Evaluation Designation (DT&E Designation) • Certain Anti-Terrorism Technologies being developed could serve as homeland security resources, but require additional testing and evaluation • Provides SAFETY Act liability protection (Designation) for a limited term (presumptively not longer than 36 months), usually limited to certain deployment sites. 18 18

Details of Developmental Testing and Evaluation Designation May be appropriate if your Technology • Details of Developmental Testing and Evaluation Designation May be appropriate if your Technology • Is in a prototype stage • Has lab tests that are not operational in nature (too controlled) • Indicates potential effectiveness • Has a testing scenario identified and “customers” to prove relevant metrics *Needs protections nevertheless due to liability during testing scenario or deployment during “heightened risk” 19 19

SAFETY Act Award Summary DTED Effectiveness Evaluation Protection Designation Needs more Proven proof, but SAFETY Act Award Summary DTED Effectiveness Evaluation Protection Designation Needs more Proven proof, but effectiveness (with potential exists confidence of repeatability) Liability cap Certification Consistently proven effectiveness (with high confidence of enduring effectiveness) Government Contractor of Defense (GCD) only for any and all identified test deployments made within event(s) and within 5 -8 year term for limited term duration (≤ 3 yrs) 20 20

Timeline of Review Process Pre-Application Scoring Response letter to applicant 21 Days Full Application Timeline of Review Process Pre-Application Scoring Response letter to applicant 21 Days Full Application Receiving & Completeness 30 Days Technical Review Economic Review Consolidation 50 Days Presentation of Findings DHS Decision 15 Days 25 Days 120 Days 21 21

How is Your Proprietary Data Protected? • Strong data protection measures that conform to How is Your Proprietary Data Protected? • Strong data protection measures that conform to DHS information security standards • All application reviewers are screened for conflicts of interests, sign conflict of interest statements for each application they review, and sign general nondisclosure agreements 22 22

Who are the SAFETY Act Reviewers? • Approximately 420 experts available to review applications. Who are the SAFETY Act Reviewers? • Approximately 420 experts available to review applications. • Conflict of Interest & Non-Disclosure Agreement signed by each reviewer per application. • Three Technical Reviewers and two Economic Reviewers per application. • Reviewers from the FFRDCs, non-profits, Federal Government, Federal & National Labs, and Academia. • 100+ already trained reviewers (SMEs) in: ØCyber ØEconomic ØChemical ØRad/Nuc ØBiological ØHuman ØExplosive ØServices 23 23

Pre-Application Consultation • Provided at no cost (as is the rest of the program) Pre-Application Consultation • Provided at no cost (as is the rest of the program) • Offer the opportunity to have a teleconference with the Office of SAFETY Act Implementation staff • Receive a preliminary assessment of your product or service and its potential eligibility for SAFETY Act liability protections • Obtain guidance for completing the applications for Designation and Certification • Ask us questions! 24 24

Where are SAFETY Act Products Used? 25 25 Where are SAFETY Act Products Used? 25 25

Representative FY 2007 SAFETY Act Approved Technologies: Incident Management Previstar, Inc. : RAMSAFE™/PREVISTAR CPS™ Representative FY 2007 SAFETY Act Approved Technologies: Incident Management Previstar, Inc. : RAMSAFE™/PREVISTAR CPS™ Previstar, Inc. , provides RAMSAFE™/PREVISTAR CPS™, an incident command system software solution for disaster management designed for the public safety community. The Technology is compliant with the concepts of the Department of Homeland Security’s National Incident Management System (NIMS) and Incident Command System (ICS). Weston Solutions, Inc. : Respond. Fast. SM Weston Solutions, Inc. , provides Respond. Fast. Sm, a real-time monitoring system that provides data collection and management support for command control, emergency management, plume modeling, and other applications that support incident management and recovery efforts. 26 26

Representative FY 2007 SAFETY Act Approved Technologies: Incident Management Madah. Com, Inc. : Wireless Representative FY 2007 SAFETY Act Approved Technologies: Incident Management Madah. Com, Inc. : Wireless Audio Visual Emergency System (WAVES) Madah. Com, Inc. , provides a fixed Wireless Audio Visual Emergency System (WAVES) and a portable Tactical WAVES (TACWAVES) (collectively, WAVES). WAVES provides mass notification to alert, warn and inform people of actions to take in the event of a terrorist attack. Defense Group Inc. : Co. BRA© Software Defense Group Inc. , provides Co. BRA© Software, a crisis management and emergency response decision support and incident reporting system for chemical, biological, radiological, nuclear, and explosive (CBRNE) incidents. 27 27

Representative FY 2007 SAFETY Act Approved Technologies: Incident Management High Rise Escape Systems, Inc. Representative FY 2007 SAFETY Act Approved Technologies: Incident Management High Rise Escape Systems, Inc. : Guardian and Responder High Rise Escape Systems, Inc. , provides the Guardian and Responder. These emergency evacuation systems serve as an alternate and emergency means of egress for buildings and structures up to 999 feet tall when traditional means of escape are unavailable due to fire, smoke, or other damage, including that caused by a terrorist attack. 28 28

Representative FY 2007 SAFETY Act Approved Technologies: Information Sharing/Management BAE Systems Information and Electronic Representative FY 2007 SAFETY Act Approved Technologies: Information Sharing/Management BAE Systems Information and Electronic Systems Integration, Inc. : First Inter. Comm™ (First Responder Interoperable Communications) System BAE Systems Information and Electronic Systems Integration, Inc. , provides the First Inter. Comm™ (First Responder Interoperable Communications) System. First Inter. Comm™ is a system of devices that enables communications between disparate radios and other communication devices employed by Federal, state and local public safety agencies. Raytheon Company: Device Relationship Management Solution Raytheon Company provides a Device Relationship Management Solution that assists customers in establishing a centralized enterprise data management system that facilitates information exchange between security equipment and those who operate the security equipment. 29 29

Representative FY 2007 SAFETY Act Approved Technologies: Information Sharing/Management Gold Type Business Machines, Inc. Representative FY 2007 SAFETY Act Approved Technologies: Information Sharing/Management Gold Type Business Machines, Inc. : Info-Force™ Gold Type Business Machines, Inc. , provides Info-Force™ a software suite and associated services that provide access to multiple databases maintained by Federal, state, and local governments. L-3 Communication Corporation: Praetorian Surveillance Software L-3 Communications Corporation, through its wholly-owned subsidiaries SY Coleman Corporation and L-3 Communications Government Services, Inc. , provides the Praetorian Surveillance Software, an open-architecture, fully-integrated, extensible software that integrates video and sensor data streams into a single-screen, real-time immersive 3 -D display. This Developmental Test and Evaluation Designation will expire on July 31, 2010. 30 30

Representative FY 2007 SAFETY Act Approved Technologies: Chem/Bio Defense Clean Earth Technologies, L. L. Representative FY 2007 SAFETY Act Approved Technologies: Chem/Bio Defense Clean Earth Technologies, L. L. C. : Electrostatic Decontamination System Clean Earth Technologies, L. L. C. , provides the Electrostatic Decontamination System, a rapid portable surface decontamination technology capable of destruction of chemical and biological warfare agents. OWR/U. S. A. Inc. : OWR Decontamination System OWR/U. S. A. Inc. provides the OWR Decontamination System. The Technology is used to decontaminate personal equipment, heavy equipment, the interior or exterior of vehicles, aircraft, vessels, and other areas affected by chemical or biological warfare agents. The Technology uses GD-5, a non-aqueous, alkaline monoethanolamine formulation chemical compound to decontaminate surfaces. 31 31

Representative FY 2007 SAFETY Act Approved Technologies: Chem/Bio Defense Isonics Corporation: Enviro. Secure© Detection Representative FY 2007 SAFETY Act Approved Technologies: Chem/Bio Defense Isonics Corporation: Enviro. Secure© Detection System models 5100 and 5700 The Isonics Corporation provides the Enviro. Secure© Detection System for the detection of toxic industrial chemicals and chemical warfare agents. The Technology which includes the 5100 and 5700 models, can be used as part of an existing building’s heating, ventilation, and air conditioning (HVAC) system to continually monitor the air for these substances. Lockheed Martin Corporation: Metro. Guard™ Lockheed Martin Corporation's Metro. Guard™, for public facility protection applications, provides an early warning of chemical, biological or radiological agent release through the use of a network of single-point Remote Detector Units (RDU). The release event is communicated by the RDU to one or more base station control computers which receive and process sensor data for system operators and first responders, thus enabling implementation of response protocols. 32 32

Representative FY 2007 SAFETY Act Approved Technologies: Explosive Prevention Brijot Imaging Systems, Inc. : Representative FY 2007 SAFETY Act Approved Technologies: Explosive Prevention Brijot Imaging Systems, Inc. : BIS-WDS™ Prime Brijot Imaging Systems, Inc. , provides BIS-WDS™ Prime, a passive millimeter wave concealed threat detection system. The Technology, which includes the Prime 1603 and the GEN 2 models, uses millimeter wave detectors to image suspicious objects made of metal, plastic, ceramic, composite, liquid, and other materials present on a subject person from a stand-off distance. Nomadics, Inc. : Fido® Nomadics, Inc. , provides the Fido® line of portable trace explosives detectors. The product line includes the Fido X, Fido XT, and robot-mounted variants, which are trace detection systems that detect vapors and particles from explosive compounds. 33 33

Representative FY 2007 SAFETY Act Approved Technologies: Explosive Prevention Raytheon Company: Security Equipment Integration Representative FY 2007 SAFETY Act Approved Technologies: Explosive Prevention Raytheon Company: Security Equipment Integration Raytheon Company provides Security Equipment Integration, a set of services which can be used by airports and other transportation facilities for the integration and installation of security equipment for the detection of explosives and other hazards. Rapiscan Systems, Inc. : Secure 1000® Rapiscan Systems, Inc. , provides the Secure 1000®, a non-intrusive personnel screening system designed to detect both metallic and nonmetallic objects (such as ceramic, plastic, metallic, and organic matter, including liquid and solid explosives) concealed under a person's clothing. 34 34

Representative FY 2007 SAFETY Act Approved Technologies: Infrastructure Protection Securitas Holdings, Inc. : Security Representative FY 2007 SAFETY Act Approved Technologies: Infrastructure Protection Securitas Holdings, Inc. : Security Assessments and Consulting Services Securitas Holdings, Inc. , provides the Securitas Security Assessments and Consulting Services, a suite of security assessment, consulting, and human resources investigations and assessment services designed to enhance protection, deterrence, response and recovery from terrorist acts against private and public facilities. P&L E-Communications, LLC: AVT 234 P&L E-Communications, LLC, provides the AVT 234, a video content analysis software program that utilizes a patented Target Motion Cueing (TMC) detection algorithm to monitor many existing video streams to detect objects or personnel entering an area. The Technology can automatically detect and cue operators to possible security threats while reducing false alarms from noise sources. Developmental Testing & Evaluation Designation 35 35

Representative FY 2007 SAFETY Act Approved Technologies: Infrastructure Protection Quality Plus Engineering, LLC: Critical Representative FY 2007 SAFETY Act Approved Technologies: Infrastructure Protection Quality Plus Engineering, LLC: Critical Infrastructure Protection Forensics/Assurance/Analytics (CIP/FAA) Quality Plus Engineering, LLC, provides the Critical Infrastructure Protection Forensics/Assurance/Analytics (CIP/FAA) service. The CIP/ FAA service is intended to aid in the protection of critical infrastructure and resources by providing risk auditing and assurance services to evaluate vulnerabilities of critical targets. Northrop Grumman Space & Mission Systems Corporation: Tactical Automated Security System Northrop Grumman Space & Mission Systems Corporation provides its Tactical Automated Security System (TASS). The TASS provides planning services for the development and integration of perimeter access security measures and responses. 36 36

Additional SAFETY Act Information • Online: www. safetyact. gov Ø FAQs Ø Help Topics Additional SAFETY Act Information • Online: www. safetyact. gov Ø FAQs Ø Help Topics Ø Help Desk: Online form for questions requiring an individual response • Email: helpdesk@safetyact. gov • Toll-Free: 1 -866 -788 -9318 37 37

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