FOREIGN OWNERSHIP, CONTROL, & INFLUENCE (FOCI)

To address FOCI concerns, the U.S. government has established the Committee on Foreign Investment in the United States (CFIUS). CFIUS is responsible for reviewing transactions that could result in foreign control over U.S. businesses and determining whether they pose a threat to national security. If CFIUS identifies such a threat, it can recommend mitigation measures or even block the transaction.

Mitigating FOCI Concerns

For government contractors, mitigating FOCI concerns is essential to maintaining eligibility for government contracts. Some common strategies to address FOCI include:

1. Security Agreements: Contractors may enter into security agreements with the government, outlining specific security measures to protect classified information.

2. Board Composition: Contractors may limit the participation of foreign nationals on their board of directors or in executive positions.

3. Voting Trusts: The use of voting trusts can help ensure that foreign shareholders do not exercise control over the company's decisions.

4. Divestment: In some cases, contractors may need to divest themselves of foreign-owned assets or interests.

5. Proxy Agreements: These agreements can restrict the exercise of voting rights by foreign shareholders.

CONCLUSION:

In the world of government contracting, FOCI is a critical concept that cannot be ignored. Understanding FOCI and taking appropriate steps to mitigate its risks is not only a legal requirement but also a matter of national security. Government contractors must stay informed about FOCI regulations, work closely with government agencies, and take proactive measures to ensure their operations remain in compliance. By doing so, they can continue to contribute to vital government projects while safeguarding sensitive information and national interests.

Read more about the FOCI Code of Regulations:

https://www.ecfr.gov/current/title-32/subtitle-A/chapter-I/subchapter-D/part-117/section-117.11

What are DPA Title III FOAs?

DPA Title III FOAs (Funding Opportunity Announcements) are solicitations issued by the U.S. government to invite businesses, organizations, and entities to submit proposals for funding under the Defense Production Act (DPA) Title III Program.

Key Aspect of DPA Title III FOAs:

Purpose: The primary purpose of DPA Title III FOAs is to attract proposals that align with the national defense priorities outlined in DPA Presidential Determinations.

Scope of Funding: DPA Title III FOAs cover a broad range of areas, including research and development, production, and the sustainment of critical defense-related items. Funding may be allocated to support projects that enhance the production capacity, resilience, and innovation within specific sectors.

Project Types: FOAs may target specific types of projects, such as those related to the production of critical materials, components, technologies, or capabilities that are deemed essential for national security.

Competitive Process: FOAs typically involve a competitive process where interested parties submit detailed proposals in response to the announcement. Proposals are evaluated based on factors such as technical merit, cost, feasibility, and alignment with national defense priorities.

Strategic Objectives: FOAs are designed to address strategic objectives outlined in DPA Presidential Determinations. These objectives may include reducing reliance on foreign sources for critical materials, advancing specific technologies, or bolstering the resilience of the defense supply chain.

DPA Title III FOAs provide a structured and competitive process for businesses and organizations to contribute to the enhancement of critical capabilities within the U.S. defense industrial base. Staying informed about upcoming FOAs and strategically aligning proposals with national defense priorities are key steps for businesses seeking DPA funding.

Contact your Connecticut APEX Accelerator Counselor to find FOAs related to DPA Title III on SAM.gov.

Propel your businesses to new heights with Connex Connecticut and BidMatch!

In our commitment to support and elevate CT’s manufacturing sector, CT APEX is thrilled to introduce two powerful tools designed to boost your businesses growth: CONNEX Connecticut and Bidmatch Services.

CONNEX Connecticut

CONNEX Connecticut stands as your dedicated platform for navigating the vast lands manufacturing opportunities. Designed exclusively for Connecticut manufacturers, CONNEX serves as a centralized hub, streamlining process of finding contracts, collaborations, and resources crucial for your business growth.

Collaboration with the Office of Manufacturing: Developed in partnership with the Office of Manufacturing in Connecticut, CONNEX integrates insights and resources to specifically address the challenges faced by manufacturers in the state. Enjoy a seamless process for finding manufacturing opportunities, connect with prime contractors, enhancing your business growth prospects.

BidMatch – A NO COST service provided by CT APEX

On the other side of the spectrum, BidMatch Services, a NO COST offering from Connecticut APEX Accelerator, is a powerful tool available to manufacturers and businesses across all industries. This service extends beyond manufacturing-specific opportunities, catering to a broader range of commodities and sectors.

Utilize robust search capabilities to pinpoint opportunities across diverse federal platforms using specific keywords and NAICS codes.

How BidMatch Works for You: CT APEX counselors can create your profile, ensuring you receive auto-generated emails with opportunities matching your products and services based on the keywords you provide.

Choosing the Right Tool for Your Business: While both CONNEX Connecticut and BidMatch Services share the goal of connecting businesses with opportunities, the choice between the two depends on your specific needs. CONNEX offers a sector-focused approach, closely aligned with the manufacturing industry, while BidMatch provides a broader scope across commodities and sectors.

Contact your CT APEX Counselor for more information!

Take this quick Cybersecurity Self-Check Quiz to see if CMMC applies to you:

1. Do you wish to or are you doing business with the Department of Defense?
2. Do you subcontract with a business that is a prime contractor for DoD?
3. Do you work with prime contractors that require cybersecurity certification compliance?
4. Do you work with Controlled Unclassified Information (CUI) on current or pending contracts?
5. Do you need access to technical documents, including blueprints, related to defense supplies?
6. Do you need to store and/or transmit government property (all property owned or leased by the government)?

If you answered "Yes" to any of the above questions, you will need to be at least CMMC Level 1 compliant by 2025! 

Additional questions for CMMC/NIST users:

1. Do you have a System Security Plan in place currently?
2. Do you have a risk assessment procedure for each contract (current or pending)?
3. Do you train your team on basic safeguarding practices in cybersecurity regularly?

If you answered "No" to any of the above questions, you will need to implement these plans & procedures to ensure compliance!

Learn more through free quizzes and trainings on the DOD's official Cybersecurity website, Project Spectrum: https://www.projectspectrum.io/#/cyber-readiness-check-training

How can you receive funding for your Innovative Technology?

If you have highly innovative technology that has potential commercial applications, there are government programs available to assist in the research & development stages of your project. These programs are known as Small Business Innovative Research (SBIR) & Small Business Technology Transfer (STTR). The key difference between the two is that STTR requires the business to collaborate with a non-profit research facility, while the SBIR does not.

Eligibility Rules:



1. Your business must be for-profit
2. Ownership must be at least 50% US citizens/permanent residents
3. Less than 500 employees total (includes parent companies)
4. Principal place of business in the US
5. Research & Development must be performed in US
6. Must have company-controlled research space
7. Up to date registrations (Secretary of the State, SAM.gov, SBIR/STTR portals,...)

If you are eligible, here are the top 5 departments providing innovative funding opportunities:

National Institutes of Health

National Science Foundation

NASA

Department of Energy

Department of Defense

For assistance with preparing and proposing for one of these opportunities, reach out to your local APEX counselor!