DOES YOUR COMPANY EMPLOY OR WORK WITH NON-US CITIZENS?

If so, you need to be aware of FOCI’s regulations in regards to government contracting.

** What is FOCI? **

FOCI stands for Foreign Ownership, Control, or Influence. It is a term used to describe situations where a U.S. company, particularly one involved in government contracting or with access to classified information, is vulnerable to foreign influence or control. Essentially, FOCI is a legal and security concept that addresses the potential risks associated with foreign entities having a significant stake or involvement in U.S. businesses that have government contracts.

** Why Does FOCI Matter? **

FOCI matters because it directly relates to national security and the safeguarding of sensitive information. When a company works with the U.S. government, especially in defense, intelligence, or other sensitive areas, there is a critical need to ensure that foreign interests do not compromise the contractor’s operations. If a contractor is susceptible to foreign influence or control, it poses a threat to the security of classified information and other critical assets.

Key Aspects of FOCI:

1. Ownership: Ownership refers to the percentage of a company's shares or equity held by foreign individuals, entities, or governments. In many cases, exceeding a certain threshold of foreign ownership can trigger FOCI concerns.

2. Control: Control involves the power to make decisions that affect a company's operations, policies, or management. Even if a company has a low level of foreign ownership, foreign control could still trigger FOCI concerns.

3. Influence: Influence encompasses any situation in which foreign entities can exert significant influence over a company's business decisions or operations, even without ownership or control.

Learn more:

https://www.dcsa.mil/

or

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

What is DPA Title III?

Defense Production Act (DPA) Title III program is managed by the office of Industrial Base Policy.

The DPA Program focuses on investment that creates, maintains, protects, expends, or restores domestic industrial base for National Defense. 

The objectives of DPA Title III Program are to ensure robust and resilient domestic supply chains, while reducing reliance on foreign manufacturing for the defense industrial base. And secure long-term Sustainability for defense Supply Chain.

** How does the DPA Title III program support US government Supply Chain? **

The program issues Presidential Determinations (PDs) to enable Partnering with U.S Private Industry by:

1) Mitigating gaps.

2) Provide Incentives such as Grants, Purchase Commitments, Loans, etc.

3) Identifying Supply Chain Capacity Insufficiency to meet US Defense needs.

Here are some recent DPA Title III Presidential Determinations (DPs):

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

-      Material Critical to Support the Defense Against Adversarial Aggression (Oct 2022)

-      Airbreathing Engines, Advanced Avionics Position Navigation and Guidance Systems, and Constituent Materials for Hypersonic Systems (March 2023)

-      Printed Circuit Boards and Advanced Packaging (March 2023)

-      Supply Chain Resiliency (February 2023)

** How can CT APEX support Connecticut Businesses with DPA Title III opportunities? **

CT APEX Counselors can identify DPA Presidential Determinations (DPs) for critical industries, identify products and services that are critical to meet defense industrial base needs, identify DPA Title III Open Funding Opportunities Announcement FOA, identify SBIR/STTR grants that are applicable under DPA Title III program, provide resources and guidance with the process and procedures of submitting Proposals.

Contact your local APEX counselor to learn about DPA Title III funding opportunities.

Learn more:

https://www.businessdefense.gov/ibr/mceip/dpai/dpat3/docs/DPA-TitleIII-Recent-Presidential-Determinations.pdf

or

https://www.businessdefense.gov/ibr/mceip/dpai/dpat3/docs/DPA-TitleIII-Overview.pdf

Government-Led Innovation Programs: Fostering Progress through Public-Private Collaboration

In the rapidly evolving landscape of the 21st century, innovation is the cornerstone of economic growth and national competitiveness. The Federal Government recognizes the need to foster innovation and support emerging technologies. Government-Let Innovation Programs aim to drive innovation, boost economic growth, and most importantly strengthen Government and Defense Industrial Base.

** What Is a Government-Led Innovation Program or GIP? **

A government-led innovation program is an initiative that seeks to promote and facilitate innovation within the country’s public and private sectors. These programs are typically driven by federal government agencies.

** What is the need for Federal Government Agencies to Support Innovation? **

Economic Growth: Federal agencies play an important role in supporting public and private sectors innovation as it leads to the creation of new products and services resulting in creation new Jobs and market.

National Security: By innovation in emerging technologies, the Federal Government can ensure preparedness for national threats and challenges.

Global Competitiveness: To remain competitive on the global market, the Government must stay at the forefront of emerging technological advancements.

** How Government Agencies Buy New Innovations? **

Requests for Proposals (RFPs): Government agencies issue RFPs to solicit innovative.

Grants and Funding: Government agencies participate in the SBIR/STTR program to provide grants and funding for innovation.

Innovation Challenges and Competitions: Government agencies organize innovation challenges to develop solutions to specific problems.

Government-led innovation programs are essential for strengthening Defense Industrial Base. By supporting innovation, the Federal Government enhances national security, and global competitiveness.

** How can CT APEX support Businesses with Innovation? **

a.   Identify Technology Readiness Level based.

b.  Identify if technology/innovation is a good fit for SBIR/STTR.

a.   Identify which Phase of the SBIR/STTR program client’s project will apply.

a.   Identify if client needs assistance with proposal preparation for SBIR/STTR. 

Article courtesy of Ishrat Nazmi.

HOW SECURE IS YOUR BUSINESS NETWORK?

Regardless of what industry you are in or who you are working with, you should be practicing safe cyber hygiene as part of your daily business operations, but especially if you are a government contractor!

 ** How does this relate to working with the government? **

If you have ever accessed a solicitation document through SAM.gov, you are working with FCI (Federal Contract Information). If you are working with the Department of Defense, some of those contract documents are designated as CUI (Controlled Unclassified Information). It is critical to protect the contents of these documents for national security.

** How can I keep my network secure? **

The first step to securing your network is to implement basic cyber security safeguards. Here is a list of some government-recommended safeguards that you can consider putting in place:

·      Limit information system access to authorized users

·      Limit connections to and use of external information systems

·      Control information posted on publicly accessible information systems

·      Sanitize or destroy information system media containing FCI or CUI before disposal or release for reuse

·      Limit physical access to organizational information systems, equipment, and the respective operating environments to authorized individuals

·      Identify, report, and correct information and information system flaws in a timely manner

·      Provide protection from malicious code within organizational information systems and update malicious code protection mechanisms when new releases are available

·      Perform periodic scans of the information system and real-time scans of files from external sources as files are downloaded, opened, or executed

If you are already doing any of the above safeguards, congratulations! You are well on your way to becoming a responsible government contractor! If you need help implementing these safeguards or would like to explore higher levels of security, please reach out to your local APEX Accelerator for more information.

Learn more: https://business.defense.gov/Resources/Be-Cyber-Smart/