Foreign Ownership, Control, or Influence (FOCI):

“A company is considered to be operating under FOCI whenever a foreign interest has the power, direct or indirect, whether or not exercised, and whether or not exercisable, to direct or decide matters affecting the management or operations of that company in a manner which may result in unauthorized access to classified information or may adversely affect the performance of classified contracts.”

It's imperative that you understand FOCI & how it may affect your government contracting goals!

How does the government evaluate FOCI concerns?

The government evaluates FOCI concerns through a comprehensive review process conducted by the Defense Counterintelligence and Security Agency (DCSA). This evaluation includes an examination of a business’s ownership and control structures, financial arrangements, and relationships with foreign entities. The objective is to assess whether a contractor’s operations could be compromised by foreign influence.

The DCSA’s Facility Security Clearance (FCL) FOCI review is based on contractor’s responses to Standard Form 328 (which is required for any contract requiring FCLs), plus any supporting documentation. This form contains 10 questions, including:

•        “Does your organization directly, or indirectly through your subsidiaries and/or affiliates, own 10 percent or more of any foreign interest?”

•        “Does your organization have any contracts, agreements, understandings or arrangements with a foreign person(s)?”

•        “During your last fiscal year, did your organization derive 5 percent or more of its total revenues or net income from any single foreign person?”

The Contractor must provide additional information & documentation about any “Yes” answers to the questions on Standard Form 328.

For more FOCI Tools & Resources: https://www.dcsa.mil/Industrial-Security/Entity-Vetting-Facility-Clearances-FOCI/Foreign-Ownership-Control-or-Influence/FOCI-Tools-Resources/

Strengthening National Defense Through DPA Title III Initiatives:

The United States has taken significant strides to strengthen its critical industry supply chains, addressing gaps and bolstering capacities vital for national defense. These advancements have been made possible through strategic Presidential Determinations (DPs) under the Defense Production Act (DPA) Title III, providing crucial support to various sectors. Let's explore some noteworthy DPs and their impact on fortifying our nation's defense capabilities.

Critical Materials in Large-Capacity Batteries (March 2022):

Addressing the increasing demand for large-capacity batteries, this determination focuses on securing the supply chain of critical materials. Grants, purchase commitments, and loans incentivize industry players, ensuring a robust battery supply to meet defense requirements.

 Airbreathing Engines, Advanced Avionics, and Hypersonic Systems (March 2023):

Recognizing the evolving landscape of aerial defense, this DP focuses on airbreathing engines, avionics, and constituent materials for hypersonic systems. Purchase commitments and grants play a pivotal role in ensuring a resilient supply chain for these cutting-edge technologies.

Printed Circuit Boards and Advanced Packaging (March 2023):

The determination for Printed Circuit Boards (PCBs) and Advanced Packaging underscores the importance of electronics in modern defense systems. Through grants and other incentives, this DP supports the development and production of these critical components.

These DPA Title III Presidential Determinations signify a proactive approach to national security by mitigating vulnerabilities and ensuring the availability of critical materials and technologies. By leveraging grants, purchase commitments, and loans, these initiatives stimulate innovation, enhance production capabilities, and reinforce the United States' ability to meet defense needs.



Contact your CT APEX Counselor to learn about DPA Title III opportunities. 

A Look Back at the Evolution of CMMC:

"The theft of intellectual property and sensitive information from all U.S. industrial sectors due to malicious cyber activity threatens economic security and national security." So…what is happening on the federal level to address this ongoing issue?

In September of 2020, the Department of Defense issued a new rule (DFARS Case 2019-D041), which implemented the DOD’s initial vision for the CMMC program (now known as CMMC 1.0) and outlined the basic features of the framework. This rule established a five-year phase-in period, set to replace the National Institute of Standards and Technology (NIST) cybersecurity model.

In March of 2021, DOD initiated an internal review of CMMC 1.0, informed by 850+ public comments in response to the DFARS rule. This assessment involved cybersecurity and acquisition leaders within DOD to refine policy and program implementation.

In November of 2021, the Department announced CMMC 2.0, which updated the program structure in the following areas:

• Streamlined Model - Decreased the Levels from 5 to 3 to focus on the most critical requirements, and incorporates previously accepted NIST cybersecurity standards
• Reduced Assessment Costs - Allows all companies at Level 1, and some companies at Level 2, to demonstrate compliance through self-assessments instead of requiring Certified Third Party Assessment Organizations (C3PAOs)
• Flexible Implementation - Allows companies, under certain limited circumstances, to make Plans of Action & Milestones (POA&Ms) to achieve certification

We are expecting further changes to the new Cybersecurity Maturity Model Certification over the next year, so stay tuned for updates!

Check out the CMMC - "Frequently Asked Questions" page to learn more: https://dodcio.defense.gov/CMMC/FAQ/