Defense Consulting Agreements

Do I need a security clearance?

Yes, if your consulting work involves access to classified information or restricted facilities, obtaining a security clearance for both the company and specific employees is mandatory.

Can foreign companies bid for defense contracts?

Yes, but they are subject to strict vetting. Georgia often recognizes security clearances from NATO and partner countries, but local verification is still required.

What are the penalties for breaching confidentiality?

Disclosure of state secrets is a criminal offense in Georgia. Additionally, defense contracts invariably include severe financial penalties and immediate termination clauses for any breach.

How are disputes resolved in defense contracts?

Disputes are typically resolved in Georgian courts, often in closed sessions if classified information is involved. International arbitration clauses may be negotiated for large foreign contracts.

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Defense consulting agreements represent a specific legal instrument regulating relationships between the Ministry of Defense, state military agencies, and private consultants (or consulting firms). This field covers strategic consulting, military procurement planning, cybersecurity auditing, and modernization of defense infrastructure. Such agreements differ radically from standard commercial contracts as they are subject to strict state secret protection regimes and special state procurement rules. Legal.ge offers access to lawyers experienced in defense sector regulations who can ensure full contract compliance with national security legislation.

What does this service cover?

Our service covers the legal aspects of consulting activities in the defense sector:

  • Contract Drafting and Analysis: Preparing contracts containing specific Non-Disclosure Agreement (NDA) clauses, intellectual property rights, and special rules for service delivery and acceptance.
  • State Secret Clearance: Consulting on requirements of the Law on State Secrets, personnel security vetting, and determining clearance levels.
  • Procurement Procedures: Participating in simplified or closed tenders in defense and security; ensuring compliance with procurement legislation.
  • Export Control: If consulting involves military technologies, ensuring compliance with export-import control legislation for dual-use items.
  • Anti-Corruption Policy: Integrating anti-corruption clauses (aligned with FCPA, UK Bribery Act standards) into agreements, which is critical for international contractors.

Common Scenarios and Needs

This service is relevant for the following entities:

  • International Defense Contractors: Companies providing technological solutions to the Georgian Defense Forces needing local legal support.
  • Security Experts: Individual consultants working in strategic analysis or training planning.
  • Cybersecurity Firms: Companies protecting the IT infrastructure of state agencies and conducting penetration testing.
  • Logistics Companies: Entities planning the transport of military or special cargo.

Georgian Legal Framework

The field is regulated by the Law of Georgia on Defense and the Law on State Procurement (specifically regarding defense and security procurement). Critically important is the Law of Georgia on State Secrets, which defines rules for classifying information and liability for its disclosure. Also applicable is the Law on Control of Military and Dual-Use Products, which covers technical consulting as well.

Step-by-Step Process

The process begins with a security requirements audit: does the contractor have the appropriate clearance? Then, a draft contract is prepared and coordinated with the legal department of the Ministry of Defense. Special attention is paid to force majeure and confidentiality clauses. After signing, services are delivered under strict monitoring.

Why Legal.ge?

The cost of errors in the defense sector is high — financially, reputationally, and criminally. Legal.ge offers lawyers who understand the sensitivity of the national security sector and possess experience working with contracts involving state secrets. With our help, you can protect your business interests without conflicting with state interests.

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