Foreign Ownership, Control or Influence (FOCI) Mitigation Specifically for Unclassified Contracts

Source:NATLAWREVIEW

In May 2024, the US Department of Defense (DoD) published the long-awaited DoD Instruction [1] (FOCI Instruction) expanding the FOCI review process from solely US government contractors that access classified information to all US government contractors performing on certain unclassified contracts with a value exceeding US$5 million. For the uninitiated, the US government mitigates FOCI at US companies that require security clearances through the implementation of FOCI mitigation plans. These plans vary based on the nature of the FOCI (and other risks), and can include security controls at the cleared US companies, such as requirements for independent directors, visitation and access controls, restrictions on communications with the foreign owner, and limitations on shared services and operations, among other requirements. Typically, parties that work with the DoD to implement and comply with these mitigation plans do so in order to obtain or maintain facility security clearances (FCLs) required for performance on classified contracts.

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