Understanding Foreign Ownership, Control, or Influence (FOCI) in Government Contracting:

Foreign Ownership, Control, or Influence (FOCI) is a critical aspect for any company seeking to engage in government contracting. FOCI refers to the degree to which a foreign entity has the power to direct or influence the management or policies of a company that holds a security clearance or performs classified work for the U.S. government. Understanding and managing FOCI is essential for both government contractors and the government itself to ensure national security interests are safeguarded.

Here are some key points highlighting the importance of FOCI for government contractors:

1. National Security Concerns:

FOCI is primarily a national security concern. The U.S. government needs to ensure that companies handling sensitive information or working on classified projects are not unduly influenced by foreign entities that may not have aligned interests with the United States. Failure to address FOCI adequately can pose risks to national security.

2. Regulatory Compliance:

Government contractors are subject to stringent regulations and guidelines regarding FOCI. These regulations are enforced by agencies such as the Defense Security Service (DSS) and the Committee on Foreign Investment in the United States (CFIUS). Non-compliance with FOCI regulations can result in the loss of contracts, fines, or other legal repercussions.

3. Impact on Contract Eligibility:

Companies operating under FOCI may face limitations on their eligibility to bid on certain government contracts, especially those involving classified information or sensitive projects. It's crucial for contractors to mitigate FOCI to maintain their competitiveness in the government contracting space.

4. Mitigation Measures:

There are several strategies available to mitigate FOCI and address concerns related to foreign influence. These may include implementing corporate governance measures, establishing proxy agreements, or creating voting trusts to ensure that ultimate control resides with U.S. citizens or entities.

5. Continuous Monitoring:

Managing FOCI is an ongoing process. Contractors must continuously monitor their ownership structure, business relationships, and any changes that may impact their FOCI status. Regular assessments and reporting are necessary to remain compliant with FOCI regulations.

Resources for Government Contractors:

Government contractors can access various resources to help navigate FOCI requirements and ensure compliance. Here are some helpful websites:

·        Defense Counterintelligence and Security Agency (DCSA)

(https://www.dcsa.mil/)

 - DCSA provides information and guidance on security clearances, including FOCI mitigation.

·        Committee on Foreign Investment in the United States (CFIUS)

(https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius)

CFIUS oversees the national security implications of foreign investments in U.S. companies.

·        National Industrial Security Program (NISP)

(https://www.dcsa.mil/isp/)

NISP provides regulations and procedures for safeguarding classified information.

·        Defense Acquisition University (DAU)

(https://www.dau.edu/)

DAU offers training and resources related to government contracting, including FOCI mitigation.

Defense Production Act Title III Presidential Determination for Airbreathing Engines:

In a recent development, President Joe Biden signed a presidential determination (PD), granting authorization under the Defense Production Act (DPA) Title III to enhance the nation's domestic hypersonics industrial base. This authority is specifically focused on air-breathing engines, advanced avionics, guidance systems, and materials for hypersonic systems. This aligns with President Biden's broader strategy outlined in Executive Order 14017, "America's Supply Chains." The goal is to ensure the United States remains at the forefront of these transformative technologies and collaborates with allied nations pursuing similar capabilities.

The Office of Defense Production Act Investments, part of the Manufacturing Capability Expansion and Investment Prioritization (MCEIP) office, will leverage DPA Title III for purchases and commitments to support the modernization and expansion of the hypersonics industrial base.

Interested parties can submit funding applications through the DPA Title III Open Funding Opportunity Announcement.

Connect with your assigned CT APEX Counselor for more information on this topic.

Reference:

Defense Production Act Title III Presidential Determination for Airbreathing Engines, Advanced Avionics Position Navigation and Guidance Systems, and Constituent Materials for Hypersonic Systems > U.S. Department of Defense > Release

Getting Started on CMMC Compliance:

As you are beginning your cybersecurity journey, it may feel overwhelming to know where to start. Here are some next steps that every defense contractor should go through:

1. Select the appropriate CMMC level - if you don't know or haven't been directed via a contract, you can take a free self-check quiz here
2. Conduct scoping assessment - for guides, definitions, or hands-on assistance with your assessment, please reach out to your CT APEX counselor
3. Conduct self-assessment - test your own network's cyber readiness and record the results
4. Perform gap analysis - where is your security lacking according to your assessment?
5. Develop remediation plan - also known as the Plan of Actions/Milestones or POAMs. (Please note that the POAMs do not apply to Level 1.)
6. Implement security controls - take action to implement recommended security controls depending on your gap analysis
7. Prepare documentation and evidence - by this point, you should have started working on a System Security Plan and POAMs (if applicable)
8. Upload self-assessment in SPRS - you will take the score you recorded earlier and certify this to the Supplier Performance Risk System

If you determine that you fall into CMMC Level 2 you will need to conduct a self-assessment, but for "prioritized" CUI acquisitions, you will also need to be assessed and certified through a Certified Third-Party Assessor Organization (C3PAO). These assessments will be reported through the new Enterprise Mission Assurance Support Services (eMASS) system.

More details regarding CMMC from Project Spectrum can viewed in our past webinar recording, here: https://ctptap.ecenterdirect.com/events/43910

Federal Contracting Assistance Programs for Veteran Owned Small Business (VOSB):

Each year the Federal government sets a goal of at least 3% of contracts be awarded to either Veteran Owned or Service-Disabled Veteran Owned Small Business. Since 2017, that goal has been exceeded and reached at least 4.1%. That means that since 2017, over $110 billion dollars has been awarded to Veteran Owned/ Service-disabled Veteran owned businesses. This is a great accomplishment and something that every veteran should be proud of. We will discuss briefly how to become part of this group of business owners and start earning.

To begin, you will have to set up a SAM.gov account as well as an SBA account. The SAM.gov account is the basis for all government contracts. Without an account with them, all those opportunities set aside for veterans are unavailable for you. To apply for certification with SBA as a VOSB or SDVOSB, your firm must meet these two main requirements:

·        Be considered a small business corresponding to your company’s NAICS code.

·        Have no less than 51% of the business owned & controlled by one or more veterans.

The rest of the requirements are listed on the SBA's website. The link is listed below.

Not only does this certification allow to the opportunity to compete for sole-source and set-aside contracts across the federal government, but it also gives you the opportunity to be apart of the Surplus Personal Property for Veteran-Owned Small Business Programs. This program provides VOSB/ SDVOSB access to federal property that many other Small Business Owners don’t have priority to.

Helpful Links:

https://www.sba.gov/federal-contracting/contracting-assistance-programs/veteran-contracting-assistance-programs

Preparing for SBA Veteran Small Business Certification

Federal Register :: Veteran-Owned Small Business and Service-Disabled Veteran-Owned Small Business-Certification

Capability Statements - Do's and Don'ts:

When it comes to government contracting, standing out among numerous vendors is crucial for success. This is where capability statements come into play, as they serve as a powerful tool for vendors to showcase their expertise, experience, and strengths to government agencies.

The capability statement should begin with a clear presentation of the company's name, logo, contact details, and a brief overview of its mission and values. Following this, a concise yet comprehensive list of the services and products offered should be provided, emphasizing those most relevant to the target audience or industry.

Diverse suppliers must avoid rushing into the creation of capability statements without thorough preparation, as it can lead to a less effective document and potential loss of clients. They should invest the time and effort into researching and understanding the target audience’s requirements and preferences to create a compelling capability statement. Inconsistent use of metrics and key performance indicators, poor design and presentation, and lack of customization are common mistakes that diverse suppliers should avoid when creating capability statements. By focusing on these areas, diverse suppliers can create powerful capability statements that can improve their chances of winning contracts.



Additionally, the statement should showcase the company's past performance by including specific examples of successful projects, satisfied clients, or case studies that demonstrate its expertise in the industry. Finally, it should highlight any diversity certifications, such as Minority Business Enterprise (MBE) or Women’s Business Enterprise (WBE), to align with potential client companies' supplier diversity goals. Following these key points can ultimately setup your business to be more competitive within the government contracting market.

These are just a few critical takeaways I gleamed from the Hire Ground article that can be found here: https://hireground.io/developing-a-capability-statement-a-must-have-tool-for-diverse-suppliers/