Federal Register #DFARS Case 2021-D011

DoD Proposed Rule on Foreign Ownership, Control, or Influence (FOCI) Risk Mitigation

The Department of Defense (DoD) is seeking public input on a proposed rule to strengthen supply chain security by addressing foreign ownership, control, or influence (FOCI) risks among contractors and subcontractors. - Government Buyer: - Department of Defense (DoD) - Defense Acquisition Regulations System - Defense Counterintelligence and Security Agency (DCSA) - Scope and Requirements: - Amends the Defense Federal Acquisition Regulation Supplement (DFARS) to require disclosure of beneficial ownership and FOCI status by contractors and subcontractors - Applies to contracts for commercial products and services when a senior DoD official identifies a national security risk - Mandates ongoing disclosure of changes in beneficial ownership or FOCI status to DCSA - Requires contractors/subcontractors under FOCI to provide contact information for each foreign beneficial owner - Incorporates procedures from DoD Instruction 5205.87 for FOCI risk mitigation - Enforces contract clauses for continuous risk mitigation throughout contract performance - No specific OEMs, vendors, products, or quantities are identified in this notice - Notable Requirement: - Focus on national security risk mitigation through transparency and ongoing reporting of ownership/control changes

Description

The Department of Defense (DoD) is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement sections of the National Defense Authorization Act for Fiscal Years 2020 and 2021. The amendment aims to mitigate risks related to beneficial ownership or foreign ownership, control, or influence (FOCI) of contractors and subcontractors. The proposed rule requires disclosure of beneficial ownership and FOCI status to the Defense Counterintelligence and Security Agency (DCSA), and mandates contract clauses for ongoing disclosure and risk mitigation throughout contract performance. It also implements elements of DoD Instruction 5205.87, establishing procedures for disclosure and mitigation of FOCI risks.

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