Skip Navigation

Federal Communications Commission

English Display Options

Commission Document

DRS Technologies, Inc. Consent Decree Released

Download Options

Released: July 22, 2011

Federal Communications Commission

DA 11-109

Before the

Federal Communications Commission

Washington, D.C. 20554

)
In the Matter of
)
)

DRS TECHNOLOGIES, INC.

)
File No.: EB-10-IH-1291
)
Licensee of Authorization in the Wireless Radio
)
Account No.: 201132080019
Services, Subsidiary of Finmeccanica - Societ per
)
azioni, and Parent Company of Various Subsidiary )
FRN: 0011475324
Companies Holding Various Authorizations in the
)
Wireless, Satellite, and Experimental Radio
Services

ORDER

Adopted: July 22, 2011

Released: July 22, 2011

By the Chief, Enforcement Bureau:
1.
In this Order, we adopt the attached Consent Decree entered into between the
Enforcement Bureau of the Federal Communications Commission ("Bureau") and DRS Technologies,
Inc. ("DRS Technologies"). The Consent Decree terminates an investigation by the Bureau into whether
DRS Technologies complied with sections 301 and 310(d) of the Communications Act of 1934, as
amended,1 and with sections 1.948, 5.53(a), 5.59(d), and 25.119 of the Commission's rules ("Rules"),2
relating to several transactions completed by DRS Technologies and its wholly-owned subsidiary
companies between April 1, 2008 and January 1, 2010, and to DRS Technologies' operation of certain
experimental radio facilities.
2.
The Bureau and DRS Technologies have negotiated the terms of a Consent Decree that
resolves this matter. A copy of the Consent Decree is attached hereto and incorporated by reference.
3.
After reviewing the terms of the Consent Decree and evaluating the facts before us, we
find that the public interest would be served by adopting the Consent Decree and terminating the
investigation.
4.
In the absence of material new evidence relating to this matter, we conclude that our
investigation raises no substantial or material questions of fact as to whether DRS Technologies possesses
the basic qualifications, including those related to character, to hold or obtain a Commission license or
authorization.
5.
Accordingly,

IT IS ORDERED

that, pursuant to section 4(i) of the Act,3 and sections
0.111 and 0.311 of the Rules,4 the Consent Decree attached to this Order

IS ADOPTED

.


1 47 U.S.C. 301, 310(d).
2 47 C.F.R. 1.948, 5.53(a), 5.59(d), 25.119.
3 47 U.S.C. 154(i).
4 47 C.F.R. 0.111, 0.311.

Federal Communications Commission

DA 11-109

6.

IT IS FURTHER ORDERED

that the above-captioned investigation

IS

TERMINATED

.
7.

IT IS FURTHER ORDERED

that a copy of this Order and Consent Decree shall be
sent both by Certified Mail Return Receipt Requested and by regular mail to Audrey S. Stern, Vice
President and Senior Corporate Counsel, DRS Technologies, Inc., 5 Sylvan Way, Parsippany, NJ 07054.
FEDERAL COMMUNICATIONS COMMISSION
P. Michele Ellison
Chief, Enforcement Bureau
2

Federal Communications Commission

DA 11-109

Before the

Federal Communications Commission

Washington, D.C. 20554

In the Matter of
)
)

DRS TECHNOLOGIES, INC.

)
File No.: EB-10-IH-1291
)
Licensee of Authorization in the Wireless Radio
)
Account No.: 201132080019
Services, Subsidiary of Finmeccanica - Societ per
)
azioni, and Parent Company of Various Subsidiary )
FRN: 0011475324
Companies Holding Various Authorizations in the
)
Wireless, Satellite, and Experimental Radio
)
Services
)
)

CONSENT DECREE

I.

INTRODUCTION

1.
The Enforcement Bureau of the Federal Communications Commission and DRS
Technologies, Inc., hereby enter into this Consent Decree for the purpose of terminating the Enforcement
Bureau's investigation of DRS Technologies' compliance with sections 301 and 310(d) of the
Communications Act of 1934, as amended, 47 U.S.C. 301 and 310(d), and sections 1.948, 5.53(a),
5.59(d), and 25.119 of the Commission's rules, 47 C.F.R. 1.948, 5.53(a), 5.59(d) and 25.119, relating
to several transactions completed by DRS Technologies and its Commission-licensed affiliates between
April 1, 2008 and January 1, 2010, and DRS Technologies' operation of experimental radio facilities.

II.

DEFINITIONS

2.
For the purposes of this Consent Decree, the following definitions shall apply:
(a)
"Act" means the Communications Act of 1934, as amended, 47 U.S.C. 151 et seq.
(b)
"Adopting Order" or "Order" means an Order of the Commission adopting the terms of
this Consent Decree without change, addition, deletion, or modification.
(c)
"Bureau" means the Enforcement Bureau of the Federal Communications Commission.
(d)
"Commission" and "FCC" mean the Federal Communications Commission and all of
its bureaus and offices.
(e)
"Compliance Plan" means the program described in this Consent Decree at paragraph
11.
(f)
"DRS Technologies" means DRS Technologies, Inc., and its wholly-owned subsidiary
companies, predecessors-in-interest, and successors-in-interest.
(g)
"Effective Date" means the date on which the Bureau releases the Adopting Order.
(h)
"Finmeccanica" means Finmeccanica - Societ per azioni and its predecessors-in-
interest and successors-in-interest.
(i)
"Investigation" means the Bureau's investigation of compliance by DRS Technologies
and Finmeccanica with provisions of the Act and of the Rules relating to certain

Federal Communications Commission

DA 11-109

transfers of control and assignments of licenses involving DRS Technologies and
certain of its subsidiary companies and Finmeccanica between April 1, 2008 and
January 1, 2010, and of certain provisions of the Act and of the Rules relating to
unauthorized operation of radio facilities by DRS ICAS, LLC on or about May 11-14,
2010.
(j)
"Parties" means DRS Technologies, Inc. and the Enforcement Bureau of the Federal
Communications Commission, each of which is a "Party."
(k)
"Rules" means the Commission's regulations found in Title 47 of the Code of Federal
Regulations.

III.

BACKGROUND

3.
Finmeccanica is a holding company based in Italy. Various subsidiaries of the company
design, develop, and produce commercial and military aircraft, space systems, air defense systems, and
air traffic control equipment. Subsidiaries also design and manufacture generation and transmission
components, boilers, turbines, cogeneration plants, desalination plants, nuclear power plants, rail
transportation systems, and microprocessors. DRS Technologies, a U.S. based supplier of integrated
defense electronics products and services, is a Commission licensee and the parent company of various
subsidiaries in the United States, certain of which hold Commission licenses. DRS Technologies also is a
wholly owned subsidiary of Finmeccanica.
4.
Section 310(d) of the Act states:
No construction permit or station license, or any rights there under, shall be transferred,
assigned, or disposed of in any manner, voluntarily or involuntarily, directly or indirectly,
or by transfer of control of any corporation holding such permit or license, to any person
except upon application to the Commission and upon finding by the Commission that the
public interest, convenience, and necessity will be served thereby.
Sections 1.948, 5.59(d), and 25.119 of the Rules similarly require prior Commission consent to a transfer
of control or assignment of license.
5.
Section 301 of the Act states that "No person shall use or operate any apparatus for
transmission of energy or communications or signal by radio . . . except under and in accordance with the
Act and with a license in the behalf granted under the provision of this Act." Section 5.53(a) of the
Commission's rules similarly requires Commission authorization of all radio transmitters operated in the
Experimental Radio Service.
6.
DRS Technologies states that, between April 1, 2008 and January 1, 2010, DRS
Technologies consummated a series of corporate transactions which effectuated several substantial
transfers and pro forma assignments of its licenses without prior Commission consent. In addition, DRS
Technologies also states that over a period of less than 24 hours from May 11-14, 2010, DRS ICAS, LLC,
operated experimental radio facilities without Commission authority. DRS Technologies attributes the
failure to obtain timely Commission consent to inadvertence.

IV.

TERMS OF AGREEMENT

7.

Adopting Order.

The Parties agree that the provisions of this Consent Decree shall be
subject to final approval by the Bureau by incorporation of such provisions by reference in the Adopting
Order without change, addition, modification, or deletion.
8.

Jurisdiction.

DRS Technologies agrees that the Bureau has jurisdiction over it and the
matters contained in this Consent Decree, and has the authority to enter into and adopt this Consent
Decree.
2

Federal Communications Commission

DA 11-109

9.

Effective Date; Violations.

The Parties agree that this Consent Decree shall become
effective on the Effective Date. Upon release, the Adopting Order and this Consent Decree shall have the
same force and effect as any other order of the Bureau. Any violation of the Adopting Order or of the
terms of this Consent Decree shall constitute a separate violation of a Bureau order, entitling the Bureau
to exercise any rights and remedies attendant to the enforcement of a Bureau order.
10.

Termination of Investigation.

In express reliance on the covenants and representations
in this Consent Decree and to avoid further expenditure of public resources, the Bureau agrees to
terminate its Investigation on the Effective Date. In consideration for the termination of the Investigation,
DRS Technologies agrees to the terms, conditions, and procedures contained herein. The Bureau further
agrees that in the absence of new material evidence, the Bureau will not use the facts developed in the
Investigation through the Effective Date of the Consent Decree, or the existence of this Consent Decree,
to institute, on its own motion, or refer to the Commission any new proceeding, formal or informal, or
take on its own motion or refer to the Commission, any action against DRS Technologies or
Finmeccanica concerning the matters that were the subject of the Investigation. The Bureau also agrees
that in the absence of new material evidence it will not use the facts developed in the Investigation
through the Effective Date of this Consent Decree, or the existence of this Consent Decree, to institute on
its own motion any proceeding, formal or informal, or to take on its own motion or refer to the
Commission, any action against DRS Technologies or Finmeccanica with respect to their basic
qualifications, including their character qualifications to be a Commission licensee or to hold or control
Commission authorizations.
11.

Compliance Plan.

DRS Technologies agrees to maintain a Compliance Plan intended to
ensure future compliance with the Act, the Rules, and the Commission's Orders. The Compliance Plan
shall include, at a minimum, the following components:
a.

Compliance Officer.

Within 60 calendar days of the Effective Date, DRS Technologies
will designate a Compliance Officer who will administer the Compliance Plan, supervise
DRS Technologies' compliance with the Act and the Rules, and serve as the point of
contact on behalf of DRS Technologies for all FCC-related compliance matters.
b.

Compliance Manual.

Within 60 calendar days of the Effective Date, the Compliance
Officer will develop and distribute a Compliance Manual to employees and others who
perform duties at DRS Technologies that relate to or may relate to FCC compliance-
related responsibilities, as well as to any of such employees' immediate managers. The
Compliance Manual will include (i) an overview of the Commission's licensing
requirements, including the need for prior approval for license assignments and transfers
of control and prior authorization to operate experimental licenses; (ii) a description of
the regulatory requirements applicable to the accurate reporting of information in FCC
applications; and (iii) instructions regarding due diligence for filing FCC license and
transfer of control applications. DRS shall update the Compliance Manual from time to
time to reflect changes to relevant sections of the Act, Rules, and Commission orders,
and as otherwise needed.
c.

Compliance Training Program.

Within 90 calendar days of the Effective Date, DRS
Technologies shall provide training and compliance materials to those employees and
others who perform duties at DRS Technologies that relate to or may relate to FCC
compliance-related responsibilities, as well such employees' immediate managers. DRS
will also provide training and compliance materials to new and reassigned employees
engaged in these activities, within 60 calendar days after assuming these responsibilities.
The Compliance Training Program shall be provided on an annual basis. Additionally,
DRS Technologies shall update the Compliance Training Program as necessary and
appropriate to reflect changes to relevant sections of the Act, Rules, and Commission
orders, and as otherwise needed.
3

Federal Communications Commission

DA 11-109

d.

Compliance Reports.

DRS Technologies will submit a Compliance Report to the
Commission 90 calendar days after the Effective Date and annually thereafter on the
anniversary of the Effective Date until the Termination Date. Each Compliance Report
will include a certification by the Compliance Officer, as an agent of and on behalf of
DRS Technologies, stating that he/she has personal knowledge that: (i) DRS
Technologies has established operating procedures intended to ensure compliance with
the terms and conditions of this Consent Decree and with sections 301 and 310(d) of the
Act and sections 1.948, 5.53(a), 5.59(d), and 25.119 of the Rules, together with an
accompanying statement explaining the basis for the certification; (ii) DRS Technologies
has been utilizing those procedures since the previous Compliance Report was
submitted; and (iii) the Compliance Officer is not aware of any instances of non-
compliance with the Consent Decree or those specified sections of the Act or the Rules.
The certification must comply with section 1.16 of the Rules and be subscribed to as true
under penalty of perjury in substantially the form set forth therein. If the Compliance
Officer cannot provide the requisite certification, he/she shall provide the Commission
with a detailed explanation of: (i) any instances of non-compliance with this Consent
Decree and those specified sections of the Act and the Rules, and (ii) the steps that DRS
Technologies has taken or will take to remedy each instance of non-compliance and to
ensure future compliance, and (iii) the schedule on which proposed remedial actions will
be taken. All Compliance Reports shall be directed to the Chief, Investigations and
Hearings Division, Enforcement Bureau, Federal Communications Commission, 445
12th Street, S.W., Washington, D.C. 20554.
e.

Termination.

The requirements relating to the Compliance Plan shall expire 36 months
after the Effective Date.
12.

Voluntary Contribution.

DRS Technologies agrees that it will make a voluntary
contribution to the United States Treasury in the total amount of $30,000. The payment shall be made
within 30 business days after the Effective Date of the Adopting Order. The payment shall be made by
check or similar instrument, payable to the Order of the Federal Communications Commission. The
payment must include the Account Number and FRN referenced in the caption to the Adopting Order.
Payment by check or money Order may be mailed to Federal Communications Commission, P.O. Box
979088, St. Louis, MO 63197-9000. Payment by overnight mail may be sent to U.S. Bank Government
Lockbox #979088, SL-MO-C2-GL, 1005 Convention Plaza, St. Louis, MO 63101. Payments by wire
transfer may be made to ABA Number 021030004, receiving bank TREAS/NYC, and account number
27000001. For payment by credit card, an FCC Form 159 (Remittance Advice) must be submitted.
When completing the FCC Form 159, enter the NAL/Account number in block number 23A (call
sign/other ID), and enter the letters "FORF" in block number 24A (payment type code). DRS
Technologies will also send electronic notification within 48 hours of the date payment is made to Gary
Schonman at Gary.Schonman@fcc.gov and to Pam Slipakoff at Pam.Slipakoff@fcc.gov.
13.

Waivers.

DRS Technologies agrees to waive any and all rights it may have to seek
administrative or judicial reconsideration, review, appeal or stay, or to otherwise challenge or contest the
validity of this Consent Decree or the Adopting Order, provided the Consent Decree is adopted without
change, addition, modification, or deletion. DRS Technologies shall retain the right to challenge
Commission interpretation of the Consent Decree or any terms contained herein. If either Party, or the
United States on behalf of the Commission, brings a judicial action to enforce the terms of the Adopting
Order, neither DRS Technologies nor the Commission shall contest the validity of the Consent Decree or
the Adopting Order, and DRS Technologies shall waive any statutory right to a trial de novo. DRS
Technologies hereby agrees to waive any claims it may otherwise have under the Equal Access to Justice
Act, 5 U.S.C. 504 and 47 C.F.R. 1.1501 et seq., relating to the matters addressed in this Consent
Decree.
4

Federal Communications Commission

DA 11-109

14.

Invalidity

. In the event that this Consent Decree in its entirety is rendered invalid by any
court of competent jurisdiction, it shall become null and void and may not be used in any manner in any
legal proceeding.
15.

Subsequent Rule or Order.

The Parties agree that if any provision of the Consent
Decree conflicts with any subsequent rule or order adopted by the Commission (except an order
specifically intended to revise the terms of this Consent Decree to which DRS Technologies does not
expressly consent) that provision will be superseded by such Commission rule or order.
16.

Successors and Assigns.

DRS Technologies agrees that the terms and conditions of this
Consent Decree shall be binding on its successors, assigns, and transferees.
17.

Final Settlement.

The Parties agree and acknowledge that this Consent Decree shall
constitute a final settlement between the Parties. The Parties further agree that this Consent Decree does
not constitute either an adjudication on the merits or a factual or legal finding or determination regarding
any compliance or noncompliance with the requirements of the Act or the Commission's Rules and
Orders.
18.

Modifications.

This Consent Decree cannot be modified without the written consent of
both Parties.
19.

Paragraph Headings.

The headings of the paragraphs in this Consent Decree are
inserted for convenience only and are not intended to affect the meaning or interpretation of this Consent
Decree.
20.

Authorized Representative.

Each Party represents and warrants to the other that it has
full power and authority to enter into this Consent Decree.
21.

Counterparts

. This Consent Decree may be signed in counterparts (including by
facsimile), each of which, when executed and delivered, shall be an original, and all of which counterparts
together shall constitute one and the same fully executed instrument.
By: _________________________________
By: ____________________________
P. Michele Ellison
Mark A. Dorfman
Chief, Enforcement Bureau
Executive Vice President,
Federal Communications Commission
General Counsel and Secretary
DRS Technologies, Inc.
Date: ______________________________
Date: ___________________________
5

Note: We are currently transitioning our documents into web compatible formats for easier reading. We have done our best to supply this content to you in a presentable form, but there may be some formatting issues while we improve the technology. The original version of the document is available as a PDF, Word Document, or as plain text.

close
FCC

You are leaving the FCC website

You are about to leave the FCC website and visit a third-party, non-governmental website that the FCC does not maintain or control. The FCC does not endorse any product or service, and is not responsible for, nor can it guarantee the validity or timeliness of the content on the page you are about to visit. Additionally, the privacy policies of this third-party page may differ from those of the FCC.