The United States government takes safeguarding its secrets seriously and recognizes federal contractors (may) expose a potential weakness.
A U.S. company is considered under federal ownership, control, or influence (FOCI) when a foreign interest has the power, direct or indirect, whether or not exercised, to direct or decide matters affecting the management or operations of the company. This arrangement may result in unauthorized access to classified information or adversely affect the performance of classified contracts.
FOCI regulations identify situations where mitigation measures may be necessary to protect sensitive information adequately. Mitigation strategies authorized by the regulation include agreements that limit access of foreign interests to classified information.
A government contractor cannot perform a contract requiring access to classified information unless the contractor is free of Foreign Ownership, Control, or Influence (FOCI) or implements appropriate safeguards to protect national security. Additionally, contractors may be subject to a FOCI review for certain contracts without security clearance requirements as part of the Contracting Officer’s responsibility assessment.
Foreign investment can play an important role in maintaining the vitality of the U.S. industrial base. Therefore, it’s the policy of the U.S. Government to allow foreign investment consistent with the national security interest of the United States.
The following factors relating to a company, the foreign interest, and the government of the foreign interest are reviewed in the aggregate in determining whether a company is under FOCI:
- Record of economic and government espionage against U.S. targets
- Record of enforcement and/or engagement in unauthorized technology transfer
- The type and sensitivity of the information that shall be accessed
- The source, nature and extent of FOCI
- Record of compliance with pertinent U.S. laws, regulations and contracts
- The nature of any bilateral and multilateral security and information exchange agreements that may pertain
- Ownership or control, in whole or in part, by a foreign government
NH APEX obtained this information from
Defense Counterintelligence and Security Agency website.
FOCI Tools & Resources
Please contact your NH APEX Counselor with your questions regarding FOCI at
govcontracting@livefree.nh.gov we look forward to assisting you!
This APEX Accelerator is funded in part through a cooperative agreement with the Department of Defense.