Supply Chain Transparency

California Transparency in Supply Chains Act of 2010

As a subsidiary of Huntington Ingalls Industries, AMSEC abides by the policies of Huntington Ingalls Industries to maintain the highest standards of honesty, integrity and trust in all aspects of its business and to meet all of its responsibilities to its customers, employees, shareholders, and to the nation. Consistent with this policy, AMSEC and Huntington Ingalls Industries supports unequivocally the elimination of human trafficking and slavery.

AMSEC’s primary business is to provide Maintenance, Modernization, Logistics, Engineering, IT, and Training solutions for the U.S. Navy and evolving government and maritime markets. In recent years, nearly all of our revenues were generated through contracts with the Government entities.

As a U.S. Government contractor, AMSEC and its suppliers must comply with 48 CFR § 52.222-50, “Combating Trafficking in Persons.” 48 CFR § 52.222-50 implements the U.S. Government’s “zero tolerance policy on human trafficking” by prohibiting AMSEC and its subcontractors at any tier from utilizing “forced labor” or engaging in “severe forms of trafficking in persons” during the performance of our contracts and the subcontracts awarded there under. AMSEC is required to and does include 48 CFR § 52.222-50 in all subcontracts placed in support of our Government business. Violations of 48 CFR § 52.222-50 can result in substantial financial and other penalties to include contract and subcontract termination and debarment from U.S. Government work. Any AMSEC employee who violates 48 CFR § 52.222-50 is subject to discipline, up to and including termination.

Direct suppliers of AMSEC are required not only to comply with applicable laws and regulations in providing us goods and services, but also to adhere to the company’s values and standards of business conduct. AMSEC does not, however, view human trafficking and slavery solely as a legal issue. Instead, we see it as a broader ethical obligation for everyone who represents AMSEC, whether it is one of our employees or a supplier. Suppliers who fail to adhere to our standards are subject to termination. AMSEC suppliers and employees have access to a toll free open-line that enables them to raise questions and concerns and report violations of laws, regulations and our standards of conduct.

AMSEC believes that the highly regulated nature of our Government business minimizes the risk of human trafficking and slavery within our direct supplier base. In keeping with our commitment to ethics, integrity and corporate governance, AMSEC maintains broad-based supply chain programs, practices and procedures. Our goal is to ensure that our suppliers meet our strong ethical standards and comply with applicable laws and regulations and our contractual commitments to the U.S. Government, which include those governing human trafficking and forced labor. Our supply chain processes often involve inspections at our direct supplier’s facilities by either our supplier quality organizations or the U.S. Government.

In addition to the items described above, many of which are focused specifically on human trafficking and forced labor, AMSEC maintains a robust, broad-based ethics and compliance program that stresses values, leadership, training, audits, inspections, certifications and accountability. This broad-based program is intended to ensure that AMSEC complies with all applicable laws and maintains a culture committed to ethics and integrity.